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The Securities and Exchange Board of India Act, 1992
https://www.indiacode.nic.in/bitstream/123456789/1890/1/AA1992__15secu.pdf
central
# THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 _____________ ARRANGEMENT OF SECTIONS Last updated: 20-9-2021 _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II ESTABLISHMENT OF THE SECURITIES AND EXCHANGE BOARD OF INDIA 3. Establishment and incorporation of Board. 4. Management of the Board. 5. Term of office and conditions of service of Chairman and members of the Board. 6. Removal of member from office. 7. Meetings. 7A. Member not to participate in meetings in certain cases. 8. Vacancies, etc., not to invalidate proceedings of Board. 9. Officers and employees of the Board. CHAPTER III TRANSFER OF ASSETS, LIABILITIES, ETC., OF THE EXISTING SECURITIES AND EXCHANGE BOARD TO THE BOARD 10. Transfer of assets, liabilities, etc., of existing Securities and Exchange Board to the Board. CHAPTER IV POWERS AND FUNCTIONS OF THE BOARD 11. Functions of Board. 11A. Board to regulate or prohibit issue of prospectus, offer document or advertisement soliciting money for issue of securities. 11AA. Collective investment scheme. 11B. Power to issue directions and levy penalty. 11C. Investigation. 11D. Cease and desist proceedings. CHAPTER V REGISTRATION CERTIFICATE 12. Registration of stock-brokers, sub-brokers, share transfer agents, etc. CHAPTER VA PROHIBITION OF MANIPULATIVE AND DECEPTIVE DEVICES, INSIDER TRADING AND SUBSTANTIAL ACQUISITION OF SECURITIES OR CONTROL 12A. Prohibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control. ----- CHAPTER VI FINANCE, ACCOUNTS AND AUDIT SECTIONS 13. Grants by the Central Government. 14. Fund. 15. Accounts and audit. CHAPTER VIA PENALTIES AND ADJUDICATION 15A. Penalty for failure to furnish information, return, etc. 15B. Penalty for failure by any person to enter into agreement with clients. 15C. Penalty for failure to redress investors’ grievances. 15D. Penalty for certain defaults in case of mutual funds. 15E. Penalty for failure to observe rules and regulations by an asset management company. 15EA. Penalty for default in case of alternative investment funds, infrastructure investment trusts and real estate investment trusts. 15EB. Penalty for default in case of investment adviser and research analyst. 15F. Penalty for default in case of stock brokers. 15G. Penalty for insider trading. 15H. Penalty for non-disclosure of acquisition of shares and takeovers. 15HA. Penalty for fraudulent and unfair trade practices. 15HAA. Penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board. 15HB. Penalty for contravention where no separate penalty has been provided. 15-I. Power to adjudicate. 15J. Factors to be taken into account while adjudging quantum of penalty. 15JA. Crediting sums realised by way of penalties to Consolidated Fund of India. 15JB. Settlement of administrative and civil proceedings. CHAPTER VIB ESTABLISHMENT, JURISDICTION, AUTHORITY AND PROCEDURE OF APPELLATE TRIBUNAL 15K. Establishment of Securities Appellate Tribunals. 15L. Composition of Securities Appellate Tribunal. 15M. Qualification for appointment as Presiding Officer or Member of Securities Appellate Tribunal. 15MA. Amendment of Presiding Officer and Judicial Member. 15MB. Search-cum-Selection Committee for appointment of Technical Members. 15MC. Vacancy not to invalidate selection proceeding. 15N. Tenure of office of Presiding Officer and other Members of Securities Appellate Tribunal. 15-O. Salary and allowances and other terms and conditions of service of Presiding Officers. 15P. Filling up of vacancies. 15PA. Member to act as Presiding Officer in certain circumstances. 15Q. Resignation and removal. 15QA. Qualifications, terms and conditions of service of Presiding Officer and Member. 15R. Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings. 15S. Staff of the Securities Appellate Tribunal. 15T. Appeal to the Securities Appellate Tribunal. 15U. Procedure and powers of the Securities Appellate Tribunal. 15V. Right to legal representation. 15W. Limitation. ----- SECTIONS 15X. Presiding Officer, Members and staff of Securities Appellate Tribunals to be public servants. 15Y. Civil Court not to have jurisdiction. 15Z. Appeal to Supreme Court. CHAPTER VII MISCELLANEOUS 16. Power of Central Government to issue directions. 17. Power of Central Government to supersede the Board. 18. Returns and reports. 19. Delegation. 20. Appeals. 20A. Bar of jurisdiction 21. Savings. 22. Members, officers and employees of the Board to be public servants. 23. Protection of action taken in good faith. 24. Offences. 24A. Composition of certain offences. 24B. Power to grant immunity. 25. Exemption from tax on wealth and income. 26. Cognizance of offences by courts. 26A. Establishment of Special Courts. 26B. Offences triable by Special Courts. 26C. Appeal and revision. 26D. Application of Code to proceedings before Special Court. 26E. Transitional provisions. 27. Contravention by companies. 28. [Omitted.]. 28A. Recovery of amounts. 28B. Continuance of proceedings. 28C. Powers of Board not to apply to International Financial Services Centre. 29. Power to make rules. 30. Power to make regulations. 31. Rules and regulations to be laid before Parliament. 32. Application of other laws not barred. 33. [Repealed.]. 34. Power to remove difficulties. 34A. Validation of certain acts. 35. Repeal and saving. _THE SCHEDULE. [Repealed.]_ ----- # THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 ACT NO. 15 OF 1992 [4th _April, 1992.]_ # An Act to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Securities and Exchange** Board of India Act, 1992. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 30th day of January, 1992. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “Board” means the Securities and Exchange Board of India established under section 3; (b) “Chairman” means the Chairman of the Board; 1[(ba) “collective investment scheme” means any scheme or arrangement which satisfies the conditions specified in section 11AA;] (c) “existing Securities and Exchange Board” means the Securities and Exchange Board of India constituted under the Resolution of the Government of India in the Department of Economic Affairs No. 1(44)SE/86, dated the 12th day of April, 1988; (d) “Fund” means the Fund constituted under section 14; 2[(da) “Insurance Regulatory and Development Authority” means the Insurance Regulatory and Development Authority of India established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999); (db) “Judicial Member” means a Member of the Securities Appellate Tribunal appointed under sub-section (1) of section 15MA and includes the Presiding Officer;] (f) “notification” means a notification published in the Official Gazette; 2[(fa) “Pension Fund Regulatory and Development Authority” means the Pension Fund Regulatory and Development Authority established under sub-section (1) of section 3 of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013);] (g) “prescribed” means prescribed by rules made under this Act; (h) “regulations” means the regulations made by the Board under this Act; 3[(ha) “Reserve Bank” means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934);] (i) “securities” has the meaning assigned to it in section 2 of the Securities Contracts (Regulation) Act, 1956 (41 of 1956). 2[(j) “Technical Member” means a Technical Member appointed under sub-section (1) of section 15MB.] 1. Ins. by Act 31 of 1999, s. 11 (w.e.f. 22-2-2000). 2. Ins. by Act 7 of 2017, s. 146 (w.e.f. 26-4-2017). 3. Ins. by Act 59 of 2002, s. 2 (w.e.f. 29-10-2002). ----- 1[(2) Words and expressions used and not defined in this Act but defined in 2[the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the Depositories Act, 1996 (22 of 1996)] shall have the meanings respectively assigned to them in that Act.] CHAPTER II ESTABLISHMENT OF THE SECURITIES AND EXCHANGE BOARD OF INDIA **3. Establishment and incorporation of Board.—(1) With effect from such date as the Central** Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Board by the name of the Securities and Exchange Board of India. (2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. (3) The head office of the Board shall be at Bombay. (4) The Board may establish offices at other places in India. **4. Management of the Board.—(1) The Board shall consist of the following members, namely:—** (a) a Chairman; (b) two members from amongst the officials of the [3][Ministry] of the Central Government dealing with Finance [4][and administration of the Companies Act, 1956 (1 of 1956)]; (c) one member from amongst the officials of [5][the Reserve Bank]; 6[(d) five other members of whom at least three shall be the whole-time members,] to be appointed by the Central Government. (2) The general superintendence, direction and management of the affairs of the Board shall vest in a Board of members, which may exercise all powers and do all acts and things which may be exercised or done by the Board. (3) Save as otherwise determined by regulations, the Chairmen shall also have powers of general superintendence and direction of the affairs of the Board and may also exercise all powers and do all acts and things which may be exercised or done by that Board. (4) The Chairman and members referred to in clauses (a) and (d) of sub-section (1) shall be appointed by the Central Government and the members referred to in clauses (b) and (c) of that sub-section shall be nominated by the Central Government and the [7][Reserve Bank] respectively. (5) The Chairman and the other members referred to in clauses (a) and (d) of sub-section (1) shall be persons of ability, integrity and standing who have shown capacity in dealing with problems relating to securities market or have special knowledge or experience of law, finance, economics, accountancy, administration or in any other discipline which, in the opinion of the Central Government, shall be useful to the Board. **5. Term of office and conditions of service of Chairman and members of the Board.—(1) The** term of office and other conditions of service of the Chairman and the members referred to in clause (d) of sub-section (1) of section 4 shall be such as may be prescribed. (2) Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the services of the Chairman or a member appointed under clause (d) of sub-section (1) 1. Subs. by Act 9 of 1995, s. 2, for sub-section (2) (w.e.f. 25-1-1995). 2. Subs. by Act 22 of 1996, s. 30 and the Schedule, for “the Securities Contracts (Regulation) Act, 1956 (42 of 1956)” (w.e.f. 20-9-1995). 3. Subs. by Act 59 of 2002, s. 3, for “Ministries” (w.e.f. 29-10-2002). 4. Subs. by s. 3, ibid., for “and Law” (w.e.f. 29-10-2002). 5. Subs. by s. 3, _ibid., for “the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934_ (2 of 1934)” (w.e.f. 29-10-2002). 6. Subs. by s. 3, ibid., for clause (d) (w.e.f. 29-10-2002). 7. Subs. by s. 3, ibid., for “Reserve Bank of India” (w.e.f. 29-10-2002). ----- of section 4, at any time before the expiry of the period prescribed under sub-section (1), by giving him notice of not less than three months in writing or three months’ salary and allowances in lieu thereof, and the Chairman or a member, as the case may be, shall also have the right to relinquish his office, at any time before the expiry of the period prescribed under sub-section (1), by giving to the Central Government notice of not less than three months in writing. **6. Removal of member from office.—[1]*** The Central Government shall remove a member from** office if he— (a) is, or at any time has been, adjudicated as insolvent; (b) is of unsound mind and stands so declared by a competent court; (c) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude; 2* - - - (e) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest: Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter. **7. Meetings.—(1) The Board shall meet at such times and places, and shall observe such rules of** procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be provided by regulation. (2) The Chairman or, if for any reason, he is unable to attend a meeting of the Board, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting. (3) All questions which come up before any meeting of the Board shall be decided by a majority votes of the members present and voting, and, in the event of an equality of votes, the Chairman, or in his absence, the person presiding, shall have a second or casting vote. **3[7A. Member not to participate in meetings in certain cases.—Any member, who is a director of** a company and who as such director has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Board, shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and such disclosure shall be recorded in the proceedings of the Board, and the member shall not take any part in any deliberation or decision of the Board with respect to that matter.] **8. Vacancies, etc., not to invalidate proceedings of Board.—No act or proceeding of the Board** shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Board; or (b) any defect in the appointment of a person acting as a member of the Board; or (c) any irregularity in the procedure of the Board not affecting the merits of the case. **9. Officers and employees of the Board.—(1) The Board may appoint such other officers and** employees as it considers necessary for the efficient discharge of its functions under this Act. (2) The term and other conditions of service of officers and employees of the Board appointed under sub-section (1) shall be such as may be determined by regulations. 1. The brackets and figure “(1)” omitted by Act 9 of 1995, s. 3 (w.e.f. 25-1-1995). 2. Clause (d) omitted by Act 9 of 1995, s. 3 (w.e.f. 25-1-1995). 3. Ins. by s. 4, ibid. (w.e.f. 25-1-1995). ----- CHAPTER III TRANSFER OF ASSETS, LIABILITIES, ETC., OF THE EXISTING SECURITIES AND EXCHANGE BOARD TO THE BOARD **10. Transfer of assets, liabilities, etc., of existing Securities and Exchange Board to the Board.—** (1) On and from the date of establishment of the Board,— (a) any reference to the existing Securities and Exchange Board in any law other than this Act or in any contract or other instrument shall be deemed as a reference to the Board; (b) all properties and assets, movable and immovable, of, or belonging to, the existing Securities and Exchange Board, shall vest in the Board; (c) all rights and liabilities of the existing Securities and Exchange Board shall be transferred to, and be the rights and liabilities of, the Board; (d) without prejudice to the provisions of clause (c), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the existing Securities and Exchange Board immediately before that date, for or in connection with the purpose of the said existing Board shall be deemed to have been incurred, entered into or engaged to be done by, with or for, the Board; (e) all sums of money due to the existing Securities and Exchange Board immediately before that date shall be deemed to be due to the Board; (f) all suits and other legal proceedings instituted or which could have been instituted by or against the existing Securities and Exchange Board immediately before that date may be continued or may be instituted by or against the Board; and (g) every employee holding any office under the existing Securities and Exchange Board immediately before that date shall hold his office in the Board by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, retirement and other terminal benefits as he would have held such office if the Board had not been established and shall continue to do so as an employee of the Board or until the expiry of the period of six months from that date if such employee opts not to be the employee of the Board within such period. (2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, absorption of any employee by the Board in its regular service under this section shall not entitle such employee to any compensation under that Act or other law and no such claim shall be entertained by any court, tribunal or other authority. CHAPTER IV POWERS AND FUNCTIONS OF THE BOARD **11. Functions of Board.—(1) Subject to the provisions of this Act, it shall be the duty of the Board** to protect the interests of investors in securities and to promote the development of, and to regulate the securities market, by such measures as it thinks fit. (2) Without prejudice to the generality of the foregoing provisions, the measures referred to therein may provide for— (a) regulating the business in stock exchanges and any other securities markets; (b) registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner; 1[(ba) registering and regulating the working of the 2[depositories, participants, custodians] of securities, foreign institutional investors, credit rating agencies and such other intermediaries as the Board may, by notification, specify in this behalf;] 1. Ins. by Act 9 of 1995, s. 5 (w.e.f. 25-1-1995). 2. Subs. by Act 22 of 1996, s. 30 and the Schedule, for “depositories, custodians” (w.e.f. 20-9-1995). ----- (c) registering and regulating the working of [1][venture capital funds and collective investment schemes], including mutual funds; (d) promoting and regulating self-regulatory organisations; (e) prohibiting fraudulent and unfair trade practices relating to securities markets; (f) promoting investors' education and training of intermediaries of securities markets; (g) prohibiting insider trading in securities; (h) regulating substantial acquisition of shares and take-over of companies; (i) calling for information from, undertaking inspection, conducting inquiries and audits of the 2[stock exchanges, mutual funds, other persons associated with the securities market] intermediaries and self-regulatory organisations in the securities market; 3[(ia) calling for information and records from any person including any bank or any other authority or board or corporation established or constituted by or under any Central or State Act which, in the opinion of the Board, shall be relevant to any investigation or inquiry by the Board in respect of any transaction in securities;] 4[(ib) calling for information from, or furnishing information to, other authorities, whether in India or outside India, having functions similar to those of the Board, in the matters relating to the prevention or detection of violations in respect of securities laws, subject to the provisions of other laws for the time being in force in this regard: Provided that the Board, for the purpose of furnishing any information to any authority outside India, may enter into an arrangement or agreement or understanding with such authority with the prior approval of the Central Government;] (j) performing such functions and exercising such powers under the provisions of [5]*** the Securities Contracts (Regulation) Act, 1956 (42 of 1956), as may be delegated to it by the Central Government; (k) levying fees or other charges for carrying out the purposes of this section; (l) conducting research for the above purposes; 6[(la) calling from or furnishing to any such agencies, as may be specified by the Board, such information as may be considered necessary by it for the efficient discharge of its functions;] (m) performing such other functions as may be prescribed. 7[(2A) Without prejudice to the provisions contained in sub-section (2), the Board may take measures to undertake inspection of any book, or register, or other document or record of any listed public company or a public company (not being intermediaries referred to in section 12) which intends to get its securities listed on any recognised stock exchange where the Board has reasonable grounds to believe that such company has been indulging in insider trading or fraudulent and unfair trade practices relating to securities market.] 8[(3) Notwithstanding anything contained in any other law for the time being in force while exercising the powers under [9][clause (i) or clause (ia) of sub-section (2) or sub-section (2A)], the Board shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in respect of the following matters, namely:— (i) the discovery and production of books of account and other documents, at such place and such time as may be specified by the Board; 1. Subs. by Act 9 of 1995, s. 5, for “collective investment schemes” (w.e.f. 25-1-1995). 2. Subs. by s. 5, ibid., for “stock exchanges and” (w.e.f. 25-1-1995). 3. Subs. by Act 27 of 2014, s. 2, for clause (ia) (w.e.f. 18-7-2013). 4. Ins. by s. 2, ibid. (w.e.f. 6-3-1998). 5. The words, brackets and figures “the Capital Issues (Control) Act, 1947 (29 of 1947) and” omitted by Act 9 of 1995, s. 5 (w.e.f. 25-1-1995). 6. Ins. by s. 5, ibid. (w.e.f. 25-1-1995). 7. Ins. by Act 59 of 2002, s. 4 (w.e.f. 29-10-2002). 8. Ins. by Act 9 of 1995, s. 5 (w.e.f. 25-1-1995). 9. Subs. by Act 59 of 2002, s. 4, for “clause (i) of sub-section (2)” (w.e.f. 29-10-2002). ----- (ii) summoning and enforcing the attendance of persons and examining them on oath; (iii) inspection of any books, registers and other documents of any person referred to in section 12, at any place;] 1[(iv) inspection of any book, or register, or other document or record of the company referred to in sub-section (2A); (v) issuing commissions for the examination of witnesses or documents.] 1[(4) Without prejudice to the provisions contained in sub-sections (1), (2), (2A) and (3) and section 11B, the Board may, by an order, for reasons to be recorded in writing, in the interests of investors or securities market, take any of the following measures, either pending investigation or inquiry or on completion of such investigation or inquiry, namely:— (a) suspend the trading of any security in a recognised stock exchange; (b) restrain persons from accessing the securities market and prohibit any person associated with securities market to buy, sell or deal in securities; (c) suspend any office-bearer of any stock exchange or self-regulatory organisation from holding such position; (d) impound and retain the proceeds or securities in respect of any transaction which is under investigation; 2[(e) attach, for a period not exceeding ninety days, bank accounts or other property of any intermediary or any person associated with the securities market in any manner involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder: Provided that the Board shall, within ninety days of the said attachment, obtain confirmation of the said attachment from the Special Court, established under section 26A, having jurisdiction and on such confirmation, such attachment shall continue during the pendency of the aforesaid proceedings and on conclusion of the said proceedings, the provisions of section 28A shall apply: Provided further that only property, bank account or accounts or any transaction entered therein, so far as if related to the proceeds actually involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder shall be allowed to be attached.] (f) direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of any transaction which is under investigation: Provided that the Board may, without prejudice to the provisions contained in sub-section (2) or sub-section (2A), take any of the measures specified in clause (d) or clause (e) or clause (f), in respect of any listed public company or a public company (not being intermediaries referred to in section (2) which intends to get its securities listed on any recognised stock exchange where the Board has reasonable grounds to believe that such company has been indulging in insider trading or fraudulent and unfair trade practices relating to securities market: Provided further that the Board shall, either before or after passing such orders, give an opportunity of hearing to such intermediaries or persons concerned.] 3[(4A) Without prejudice to the provisions contained in sub-sections (1), (2), (2A), (3) and (4), section 11B and section 15-I, the Board may, by an order, for reasons to be recorded in writing, levy penalty under sections 15A, 15B, 15C, 15D, 15E, 15EA, 15EB, 15F, 15G, 15H, 15HA and 15HB after holding an inquiry in the prescribed manner.] 4[(5) The amount disgorged, pursuant to a direction issued, under section 11B of this Act or section 12A of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or section 19 of the Depositories Act, 1996 (22 of 1996), [2][or under a settlement made under section 15JB or section 23JA of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or section 19-IA of the Depositories Act, 1996 (22 of 1996)] as the case may be, shall be credited to the Investor Protection and Education Fund established by the Board and such amount shall be utilised by the Board in accordance with the regulations made under this Act.] **[5][** **[6][11A. Board to regulate or prohibit issue of prospectus, offer document or advertisement** **soliciting money for issue of securities.—(1) Without prejudice to the provisions of the Companies Act,** 1956 (1 of 1956), the Board may, for the protection of investors,— (a) specify, by regulations— 1. Ins. by Act 59 of 2002, s. 4 (w.e.f. 29-10-2002). 2. Subs. by Act 21 of 2019, s. 42 and the Second Schedule, for clause (e) (w.e.f. 21-2-2019). 3. Ins. by Act 13 of 2018, s. 179 (w.e.f. 8-3-2019). 4. Ins. by Act 27 of 2014, s. 2 (w.e.f. 18-7-2013). 5. Ins. by Act 9 of 1995, s. 6 (w.e.f. 25-1-1995). 6. Subs. by Act 59 of 2002, s. 5, for section 11A (w.e.f. 29-10-2002). ----- (i) the matters relating to issue of capital, transfer of securities and other matters incidental thereto; and (ii) the manner in which such matters shall be disclosed by the companies; (b) by general or special orders— (i) prohibit any company from issuing prospectus, any offer document, or advertisement soliciting money from the public for the issue of securities; (ii) specify the conditions subject to which the prospectus, such offer document or advertisement, if not prohibited, may be issued. (2) Without prejudice to the provisions of section 21 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Board may specify the requirements for listing and transfer of securities and other matters incidental thereto.] 1[11AA. Collective investment scheme.—(1) Any scheme or arrangement which satisfies the conditions referred to in sub-section (2) [2][or sub-section (2A)] shall be a collective investment scheme: 2[Provided that any pooling of funds under any scheme or arrangement, which is not registered with the Board or is not covered under sub-section (3), involving a corpus amount of one hundred crore rupees or more shall be deemed to be a collective investment scheme.] (2) Any scheme or arrangement made or offered by any [3][person] under which,— (i) the contributions, or payments made by the investors, by whatever name called, are pooled and utilized for the purposes of the scheme or arrangement; (ii) the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable, from such scheme or arrangement; (iii) the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors; (iv) the investors do not have day-to-day control over the management and operation of the scheme or arrangement. 2[(2A) Any scheme or arrangement made or offered by any person satisfying the conditions as may be specified in accordance with the regulations made under this Act.] (3) Notwithstanding anything contained in sub-section (2) [2][or sub-section (2A)], any scheme or arrangement— (i) made or offered by a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912) or a society being a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State; (ii) under which deposits are accepted by non-banking financial companies as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934); (iii) being a contract of insurance to which the Insurance Act, 1938 (4 of 1938), applies; (iv) providing for any scheme, pension scheme or the insurance scheme framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); (v) under which deposits are accepted under section 58A of the Companies Act, 1956 (1 of 1956); (vi) under which deposits are accepted by a company declared as a Nidhi or a Mutual Benefit Society under section 620A of the Companies Act, 1956 (1 of 1956); (vii) falling within the meaning of chit business as defined in clause (e) of section 2 of the Chit Funds Act, 1982 (40 of 1982); 1. Ins. by Act 31 of 1999, s. 11 (w.e.f. 22-2-2000). 2. Ins. by Act 27 of 2014, s. 3 (w.e.f. 18-7-2013). 3. Subs. by s. 3, ibid., for “company” (w.e.f. 18-7-2013). ----- (viii) under which contributions made are in the nature of subscription to a mutual fund; 1[(ix) such other scheme or arrangement which the Central Government may, in consultation with the Board, notify,] shall not be a collective investment scheme.] **11B. Power to issue directions [2][and a levy penalty].—[3][(1)] Save as otherwise provided in section** 11, if after making or causing to be made an enquiry, the Board is satisfied that it is necessary— (i) in the interest of investors, or orderly development of securities market; or (ii) to prevent the affairs of any intermediary or other persons referred to in section 12 being conducted in a manner detrimental to the interests of investors or securities market; or (iii) to secure the proper management of any such intermediary or person, it may issue such directions,— (a) to any person or class of persons referred to in section 12, or associated with the securities market; or (b) to any company in respect of matters specified in section 11A, as may be appropriate in the interests of investors in securities and the securities market.] 4[Explanation.—For the removal of doubts, it is hereby declared that the power to issue directions under this section shall include and always be deemed to have been included the power to direct any person, who made profit or averted loss by indulging in any transaction or activity in contravention of the provisions of this Act or regulations made thereunder, to disgorge an amount equivalent to the wrongful gain made or loss averted by such contravention.] 5[(2) Without prejudice to the provisions contained in sub-section (1), sub-section (4A) of section 11 and section 15-I, the Board may, by an order, for reasons to be recorded in writing, levy penalty under sections 15A, 15B, 15C, 15D, 15E, 15EA, 15EB, 15F, 15G, 15H, 15HA and 15HB after holding an inquiry in the prescribed manner. ] 6[11C. Investigation.—(1) Where the Board has reasonable ground to believe that— (a) the transactions in securities are being dealt with in a manner detrimental to the investors or the securities market; or (b) any intermediary or any person associated with the securities market has violated any of the provisions of this Act or the rules or the regulations made or directions issued by the Board thereunder, it may, at any time by order in writing, direct any person (hereafter in this section referred to as the Investigating Authority) specified in the order to investigate the affairs of such intermediary or persons associated with the securities market and to report thereon to the Board. (2) Without prejudice to the provisions of sections 235 to 241 of the Companies Act, 1956 (1 of 1956), it shall be the duty of every manager, managing director, officer and other employee of the company and every intermediary referred to in section 12 or every person associated with the securities market to preserve and to produce to the Investigating Authority or any person authorised by it in this behalf, all the books, registers, other documents and record of, or relating to, the company or, as the case may be, of or relating to, the intermediary or such person, which are in their custody or power. (3) The Investigating Authority may require any intermediary or any person associated with securities market in any manner to furnish such information to, or produce such books, or registers, or other documents, or record before it or any person authorised by it in this behalf as it may consider necessary if the furnishing of such information or the production of such books, or registers, or other documents, or record is relevant or necessary for the purposes of its investigation. (4) The Investigating Authority may keep in its custody any books, registers, other documents and record produced under sub-section (2) or sub-section (3) for six months and thereafter shall return the same to any intermediary or any person associated with securities market by whom or on whose behalf the books, registers, other documents and record are produced: 1. Ins. by Act 27 of 2014, s. 3 (w.e.f. 18-7-2013). 2. Ins. by Act 13 of 2018, s. 180 (w.e.f. 8-3-2019). 3. Section 11B renumbered as sub-section (1) thereof by s. 180, ibid. (w.e.f. 8-3-2019). 4. Ins. by Act 27 of 2014, s. 4 (w.e.f. 18-7-2013). 5. Ins. by Act 13 of 2018, s. 180 (w.e.f. 8-3-2019). 6. Ins. by Act 59 of 2002, s. 6 (w.e.f. 29-10-2002). ----- Provided that the Investigating Authority may call for any book, register, other document and record if they are needed again: Provided further that if the person on whose behalf the books, registers, other documents and record are produced requires certified copies of the books, registers, other documents and record produced before the Investigating Authority, it shall give certified copies of such books, registers, other documents and record to such person or on whose behalf the books, registers, other documents and record were produced. (5) Any person, directed to make an investigation under sub-section (1), may examine on oath, any manager, managing director, officer and other employee of any intermediary or any person associated with securities market in any manner, in relation to the affairs of his business and may administer an oath accordingly and for that purpose may require any of those persons to appear before it personally. (6) If any person fails without reasonable cause or refuses— (a) to produce to the Investigating Authority or any person authorised by it in this behalf any book, register, other document and record which is his duty under sub-section (2) or sub-section (3) to produce; or (b) to furnish any information which is his duty under sub-section (3) to furnish; or (c) to appear before the Investigating Authority personally when required to do so under sub-section (5) or to answer any question which is put to him by the Investigating Authority in pursuance of that sub-section; or (d) to sign the notes of any examination referred to in sub-section (7), he shall be punishable with imprisonment for a term which may extend to one year, or with fine, which may extend to one crore rupees, or with both, and also with a further fine which may extend to five lakh rupees for every day after the first during which the failure or refusal continues. (7) Notes of any examination under sub-section (5) shall be taken down in writing and shall be read over to, or by, and signed by, the person examined, and may thereafter be used in evidence against him. (8) Where in the course of investigation, the Investigating Authority has reasonable ground to believe that the books, registers, other documents and record of, or relating to, any intermediary or any person associated with securities market in any manner, may be destroyed, mutilated, altered, falsified or secreted, the Investigating Authority may make an application to [1][the Magistrate or Judge of such designated court in Mumbai, as may be notified by the Central Government] for an order for the seizure of such books, registers, other documents and record. 2[(8A) The authorised officer may requisition the services of any police officer or any officer of the Central Government, or of both, to assist him for all or any of the purposes specified in sub-section (8) and it shall be the duty of every such officer to comply with such requisition.] (9) After considering the application and hearing the Investigating Authority, if necessary, [3][the Magistrate or Judge of the Designated Court] may, by order, authorise the Investigating Authority— (a) to enter, with such assistance, as may be required, the place or places where such books, registers, other documents and record are kept; (b) to search that place or those places in the manner specified in the order; and (c) to seize books, registers, other documents and record, it considers necessary for the purposes of the investigation: Provided that [3][the Magistrate or Judge of the Designated Court] shall not authorise seizure of books, registers, other documents and record, of any listed public company or a public company (not being the intermediaries specified under section 12) which intends to get its securities listed on any recognised stock exchange unless such company indulges in insider trading or market manipulation. (10) The Investigating Authority shall keep in its custody the books, registers, other documents and record seized under this section for such period not later than the conclusion of the investigation as it 1. Subs. by Act 27 of 2014, s. 5, for “the Judicial Magistrate of the first class having jurisdiction” (w.e.f. 18-7-2013). 2. Ins. by s. 5, ibid. (w.e.f. 28-3-2014). 3. Subs. by s. 5, ibid., for “the Magistrate” (w.e.f. 18-7-2013). ----- considers necessary and thereafter shall return the same to the company or the other body corporate, or, as the case may be, to the managing director or the manager or any other person, from whose custody or power they were seized and inform [1][the Magistrate or Judge of the Designated Court] of such return: Provided that the Investigating Authority may, before returning such books, registers, other documents and record as aforesaid, place identification marks on them or any part thereof. (11) Save as otherwise provided in this section, every search or seizure made under this section shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches or seizures made under that Code. **11D. Cease and desist proceedings.—If the Board finds, after causing an inquiry to be made, that** any person has violated, or is likely to violate, any provisions of this Act, or any rules or regulations made thereunder, it may pass an order requiring such person to cease and desist from committing or causing such violation: Provided that the Board shall not pass such order in respect of any listed public company or a public company (other than the intermediaries specified under section 12) which intends to get its securities listed on any recognised stock exchange unless the Board has reasonable grounds to believe that such company has indulged in insider trading or market manipulation.] CHAPTER V REGISTRATION CERTIFICATE **12. Registration of stock-brokers, sub-brokers, share transfer agents, etc.—(1) No stock-broker,** sub-broker, share transfer agent, banker to an issue, trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediary who may be associated with securities market shall buy, sell or deal in securities except under, and in accordance with, the conditions of a certificate of registration obtained from the Board in accordance with the 2[regulations] made under this Act: Provided that a person buying or selling securities or otherwise dealing with the securities market as a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediary who may be associated with securities market immediately before the establishment of the Board for which no registration certificate was necessary prior to such establishment, may continue to do so for a period of three months from such establishment or, if he has made an application for such registration within the said period of three months, till the disposal of such application: 3[Provided further that any certificate of registration, obtained immediately before the commencement of the Securities Laws (Amendment) Act, 1995 (9 of 1995), shall be deemed to have been obtained from the Board in accordance with the regulations providing for such registration.] 3[(1A) No 4[depository, participant, custodian] of securities, foreign institutional investor, credit rating agency or any other intermediary associated with the securities market as the Board may by notification in this behalf specify, shall buy or sell or deal in securities except under and in accordance with the conditions of a certificate of registration obtained from the Board in accordance with the regulations made under this Act: Provided that a person buying or selling securities or otherwise dealing with the securities market as a 4[depository, participant, custodian] of securities, foreign institutional investor or credit rating agency immediately before the commencement of the Securities Laws (Amendment) Act, 1995 (9 of 1995), for which no certificate of registration was required prior to such commencement, may continue to buy or sell securities or otherwise deal with the securities market until such time regulations are made under clause (d) of sub-section (2) of section 30. (1B) No person shall sponsor or cause to be sponsored or carry on or cause to be carried on any venture capital funds or collective investment scheme including mutual funds, unless he obtains a certificate of registration from the Board in accordance with the regulations: Provided that any person sponsoring or causing to be sponsored, carrying or causing to be carried on any venture capital funds or collective investment scheme operating in the securities market immediately 1. Subs. by Act 27 of 2014, s. 5, for “the Judicial Magistrate of the first class having jurisdiction” (w.e.f. 18-7-2013). 2. Subs. by Act 9 of 1995, s. 7, for “rules” (w.e.f. 25-1-1995). 3. Ins. by s. 7, ibid. (w.e.f. 25-1-1995). 4. Subs. by Act 22 of 1996, s. 30 and the Schedule, for “depository, custodian” (w.e.f. 20-9-1995). ----- before the commencement of the Securities Laws (Amendment) Act, 1995 (9 of 1995) for which no certificate of registration was required prior to such commencement, may continue to operate till such time regulations are made under clause (d) of sub-section (2) of section 30.] 1[(IC) No person shall sponsor or cause to be sponsored or carry on or cause to be carried on the activity of an alternative investment fund or a business trust as defined in clause (13A) of section 2 of the Income-tax Act, 1961 (43 of 1961), unless a certificate or registration is granted by the Board in accordance with the regulations made under this Act.] 2[Explanation.—For the removal of doubts, it is hereby declared that, for the purposes of this section, a collective investment scheme or mutual fund shall not include any unit linked insurance policy or scrips or any such instrument or unit, by whatever name called, which provides a component of investment besides the component of insurance issued by an insurer.] (2) Every application for registration shall be in such manner and on payment of such fees as may be determined by regulations. (3) The Board may, by order, suspend or cancel a certificate of registration in such manner as may be determined by regulations: Provided that no order under this sub-section shall be made unless the person concerned has been given a reasonable opportunity of being heard. 3[CHAPTER VA PROHIBITION OF MANIPULATIVE AND DECEPTIVE DEVICES, INSIDER TRADING AND SUBSTANTIAL ACQUISITION OF SECURITIES OR CONTROL **12A. Prohibition of manipulative and deceptive devices, insider trading and substantial** **acquisition of securities or control.—No person shall directly or indirectly—** (a) use or employ, in connection with the issue, purchase or sale of any securities listed or proposed to be listed on a recognised stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of this Act or the rules or the regulations made thereunder; (b) employ any device, scheme or artifice to defraud in connection with issue or dealing in securities which are listed or proposed to be listed on a recognised stock exchange; (c) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person, in connection with the issue, dealing in securities which are listed or proposed to be listed on a recognised stock exchange, in contravention of the provisions of this Act or the rules or the regulations made thereunder; (d) engage in insider trading; (e) deal in securities while in possession of material or non-public information or communicate such material or non-public information to any other person, in a manner which is in contravention of the provisions of this Act or the rules or the regulations made thereunder; (f) acquire control of any company or securities more than the percentage of equity share capital of a company whose securities are listed or proposed to be listed on a recognised stock exchange in contravention of the regulations made under this Act.] CHAPTER VI FINANCE, ACCOUNTS AND AUDIT **13. Grants by the Central Government.—The Central Government may, after due appropriation** made by Parliament by law in this behalf, make to the Board grants of such sums of money as that Government may think fit for being utilised for the purposes of this Act. **14. Fund.—(1) There shall be constituted a Fund to be called the Securities and Exchange Board of** India General Fund and there shall be credited thereto— (a) all grants, fees and charges received by the Board under this Act; [4]*** 5* - - - 1. Ins. by Act 13 of 2021, s. 159 (w.e.f. 1-4-2021). 2. Ins. by Act 26 of 2010, s. 4 (w.e.f. 9-4-2010). 3. Ins. by Act 59 of 2002, s. 7 (w.e.f. 29-10-2002). 4. The word “and” omitted by Act 9 of 1995, s. 8 (w.e.f. 25-1-1995). 5. Clause (aa) omitted by Act 59 of 2002, s. 8 (w.e.f. 29-10-2002). ----- (b) all sums received by the Board from such other sources as may be decided upon by the Central Government. (2) The Fund shall be applied for meeting— (a) the salaries, allowances and other remuneration of the members, officers and other employees of the Board; (b) the expenses of the Board in the discharge of its functions under section 11; (c) the expenses on objects and for purposes authorised by this Act. **15. Accounts and audit.—(1) The Board shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Board. (4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. 1[CHAPTER VIA PENALTIES AND ADJUDICATION **15A. Penalty for failure to furnish information, return, etc.—If any person, who is required under** this Act or any rules or regulations made thereunder,— (a) to furnish any document, return or report to the Board, fails to furnish the same, [2][or who furnishes or files false, incorrect or incomplete information, return, report, books or other documents] he shall be liable to [3][a penalty [4][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]; (b) to file any return or furnish any information, books or other documents within the time specified therefor in the regulations, fails to file return or furnish the same within the time specified therefor in the regulations [2][or who furnishes or files false, incorrect or incomplete information, return, report, books or other documents], he shall be liable to [5][a penalty [3][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]; (c) to maintain books of account or records, fails to maintain the same, he shall be liable to [6][a penalty [3][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]. **15B. Penalty for failure by any person to enter into agreement with clients.—If any person, who** is registered as an intermediary and is required under this Act or any rules or regulations made thereunder to enter into an agreement with his client, fails to enter into such agreement, he shall be liable to [7][a 1. Ins. by Act 9 of 1995, s. 9 (w.e.f. 25-1-1995). 2. Ins. by Act 13 of 2018, s. 181 (w.e.f. 8-3-2019). 3. Subs. by Act 59 of 2002, s. 9, for “a penalty not exceeding one lakh and fifty thousand rupees for each such failure” (w.e.f. 29-10-2002). 4. Subs. by Act 27 of 2014, s. 6, for certain words (w.e.f. 8-9-2014). 5. Subs. by Act 59 of 2002, s. 9, for “a penalty not exceeding five thousand rupees for every day during which such failure continues” (w.e.f. 29-10-2002). 6. Subs. by s. 9, _ibid.,_ for “a penalty not exceeding ten thousand rupees for every day during which such failure continues” (w.e.f. 29-10-2002). 7. Subs. by s. 10, ibid., for “a penalty not exceeding five lakh rupees for every such failure” (w.e.f. 29-10-2002). ----- penalty [1][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]. 2[15C. Penalty for failure to redress investors’ grievances.—If any listed company or any person who is registered as an intermediary, after having been called upon by the Board in writing 3[including by any means of electronic communication], to redress the grievances of investors, fails to redress such grievances within the time specified by the Board, such company or intermediary shall be liable to a penalty [4][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees].] **15D. Penalty for certain defaults in case of mutual funds.—If any person, who is—** (a) required under this Act or any rules or regulations made thereunder to obtain a certificate of registration from the Board for sponsoring or carrying on any collective investment scheme, including mutual funds, sponsors or carries on any collective investment scheme, including mutual funds, without obtaining such certificate of registration, he shall be liable to 5[a penalty 6[which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which he sponsors or carries on any such collective investment scheme including mutual funds subject to a maximum of one crore rupees]]; (b) registered with the Board as a collective investment scheme, including mutual funds, for sponsoring or carrying on any investment scheme, fails to comply with the terms and conditions of certificate of registration, he shall be liable to [7][a penalty [8][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]; (c) registered with the Board as a collective investment scheme including mutual funds, fails to make an application for listing of its schemes as provided for in the regulations governing such listing, he shall be liable to [9][a penalty [7][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]; (d) registered as a collective investment scheme, including mutual funds, fails to despatch unit certificates of any scheme in the manner provided in the regulation governing such despatch, he shall be liable to [10][a penalty [7][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]; (e) registered as collective investment scheme, including mutual funds, fails to refund the application monies paid by the investors within the period specified in the regulations, he shall be liable to [11][a penalty [7][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]; (f) registered as a collective investment scheme, including mutual funds, fails to invest money collected by such collective investment schemes in the manner or within the period specified in the regulations, he shall be liable to [12][a penalty [7][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]. 1. Subs. by Act 27 of 2014, s. 7, for certain words (w.e.f.8-9-2014). 2. Subs. by Act 59 of 2002, s. 11, for section 15C (w.e.f. 29-10-2002). 3. Ins. by Act 23 of 2019, s. 183 (w.e.f. 20-1-2020). 4. Subs. by Act 27 of 2014, s. 8, for certain words (w.e.f. 8-9-2014). 5. Subs. by Act 59 of 2002, s. 12, for “a penalty not exceeding ten thousand rupees for each day during which he carries on any such collective investment scheme including mutual funds, or ten lakh rupees, whichever is higher” (w.e.f. 29-10-2002). 6. Subs. by Act 27 of 2014, s. 9, for certain words (w.e.f. 8-9-2014). 7. Subs. by Act 59 of 2002, s. 12, for “a penalty not exceeding ten thousand rupees for each day during which such failure continues or ten lakh rupees, whichever is higher” (w.e.f. 29-10-2002). 8. Subs. by Act 27 of 2014, s. 9, for certain words (w.e.f.8-9-2014). 9. Subs. by Act 59 of 2002, s. 12, for “a penalty not exceeding five thousand rupees for each day during which such failure continues or five lakh rupees, whichever is higher” (w.e.f. 29-10-2002). 10. Subs. by s. 12, ibid., for “a penalty not exceeding five thousand rupees for each day during which such failure continues” (w.e.f. 29-10-2002). 11. Subs. by s. 12, _ibid.,_ for “a penalty not exceeding one thousand rupees for each day during which such failure continue” (w.e.f. 29-10-2002). 12. Subs. by s. 12, ibid., for “a penalty not exceeding five lakh rupees for each such failure” (w.e.f. 29-10-2002). ----- **15E. Penalty for failure to observe rules and regulations by an asset management company.—** Where any asset management company of a mutual fund registered under this Act fails to comply with any of the regulations providing for restrictions on the activities of the asset management companies, such asset management company shall be liable to [1][a penalty [2][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]]. 3[15EA. **Penalty for default in case of alternative investment funds, infrastructure investment** **trusts and real estate investment trusts.—Where any person fails to comply with the regulations made** by the Board in respect of alternative investment funds, infrastructure investment trusts and real estate investment trusts or fails to comply with the directions issued by the Board, such person shall be liable to penalty which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees or three times the amount of gains made out of such failure, whichever is higher. **15EB.** **Penalty for default in case of investment adviser and research analyst.—Where an** investment adviser or a research analyst fails to comply with the regulations made by the Board or directions issued by the Board, such investment adviser or research analyst shall be liable to penalty which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees.] **15F. Penalty for default in case of stock brokers.—If any person, who is registered as a stock** broker under this Act,— (a) fails to issue contract notes in the form and manner specified by the stock exchange of which such broker is a member, he shall be liable to [4][a penalty which shall not be less than one lakh rupees but which may extend to [5][one crore rupees]] for which the contract note was required to be issued by that broker; (b) fails to deliver any security or fails to make payment of the amount due to the investor in the manner within the period specified in the regulations, he shall be liable to [6][a penalty 7[which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which [8][such failure continues] subject to a maximum of one crore rupees]]; (c) charges an amount of brokerage which is in excess of the brokerage specified in the regulations, he shall be liable to [9][a penalty [10][[which shall not be less than one lakh rupees but which may extend to five times the amount of brokerage]] charged in excess of the specified brokerage, whichever is higher. **15G. Penalty for insider trading.—If any insider who,—** (i) either on his own behalf or on behalf of any other person, deals in securities of a body corporate listed on any stock exchange on the basis of any unpublished price sensitive information; or (ii) communicates any unpublished price sensitive information to any person, with or without his request for such information except as required in the ordinary course of business or under any law; or (iii) counsels, or procures for any other person to deal in any securities of any body corporate on the basis of unpublished price sensitive information, shall be liable to a penalty [11][which shall not be less than ten lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of insider trading, whichever is higher]. 1. Subs. by Act 59 of 2002, s. 13, for “a penalty not exceeding five lakh rupees for each such failure” (w.e.f. 29-10-2002). 2. Subs. by Act 27 of 2014, s. 10, for certain words (w.e.f.8-9-2014). 3. Ins. by Act 13 of 2018, s. 182 (w.e.f. 8-3-2019). 4. Subs. by Act 27 of 2014, s. 11, for “a penalty not exceeding five times the amount” (w.e.f. 8-9-2014). 5. Ins. by Act 23 of 2019, s. 184 (w.e.f. 20-1-2020). 6. Subs. by Act 59 of 2002, s. 14, for “a penalty not exceeding five thousand rupees for each day during which such failure continues” (w.e.f. 29-10-2002). 7. Subs. by Act 27 of 2014, s. 11, for certain words (w.e.f.8-9-2014). 8. Subs. by Act 13 of 2018, s. 183, for” he sponsors or carries on any such collective investment scheme including mutual funds” (w.e.f. 8-3-2019). 9. Subs. by Act 59 of 2002, s. 14, for “a penalty not exceeding five thousand rupees” (w.e.f. 29-10-2002). 10. Subs. by Act 27 of 2014, s. 11, for “of one lakh rupees or five times the amount of brokerage” (w.e.f.8-9-2014). 11. Subs. by s. 12, ibid., for certain words (w.e.f.8-2-2014). ----- **15H. Penalty for non-disclosure of acquisition of shares and takeovers.—If any person, who is** required under this Act or any rules or regulations made thereunder, fails to— (i) disclose the aggregate of his share holding in the body corporate before he acquires any shares of that body corporate; or (ii) make a public announcement to acquire shares at a minimum price; 1[(iii) make a public offer by sending letter of offer to the shareholders of the concerned company; or (iv) make payment of consideration to the shareholders who sold their shares pursuant to letter of offer,] he shall be liable to a penalty [2][which shall not be less than ten lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of such failure, whichever is higher]. 3[15HA. Penalty for fraudulent and unfair trade practices.—If any person indulges in fraudulent and unfair trade practices relating to securities, he shall be liable to a penalty [4][which shall not be less than five lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of such practices, whichever is higher]. 5[15HAA. Penalty for alteration, destruction, etc., of records and failure to protect the **electronic database of Board.—Any person, who—** (a) knowingly alters, destroys, mutilates, conceals, falsifies, or makes a false entry in any information, record, document (including electronic records), which is required under this Act or any rules or regulations made there under, so as to impede, obstruct, or influence the investigation, inquiry, audit, inspection or proper administration of any matter within the jurisdiction of the Board. _Explanation.—For the purposes of this clause, a person shall be deemed to have altered,_ concealed or destroyed such information, record or document, in case he knowingly fails to immediately report the matter to the Board or fails to preserve the same till such information continues to be relevant to any investigation, inquiry, audit, inspection or proceeding, which may be initiated by the Board and conclusion thereof; (b) without being authorised to do so, access or tries to access, or denies of access or modifies access parameters, to the regulatory data in the database; (c) without being authorised to do so, downloads, extracts, copies, or reproduces in any form the regulatory data maintained in the system database; (d) knowingly introduces any computer virus or other computer contaminant into the system database and brings out a trading halt; (e) without authorisation disrupts the functioning of system database; (f) knowingly damages, destroys, deletes, alters, diminishes in value or utility, or affects by any means, the regulatory data in the system database; or (g) knowingly provides any assistance to or causes any other person to do any of the acts specified in clauses (a) to (f), shall be liable to a penalty which shall not be less than one lakh rupees but which may extend to ten crore rupees or three times the amount of profits made out of such act, whichever is higher. _Explanation.—In this section, the expressions “computer contaminant”, “computer virus” and_ “damage” shall have the meanings respectively assigned to them under section 43 of the Information Technology Act, 2000 (21 of 2000).] 1. Ins. by Act 59 of 2002, s. 16 (w.e.f. 29-10-2002). 2. Subs. by Act 27 of 2014, s.13, for certain words (w.e.f.8-2-2014). 3. Ins. by Act 59 of 2002, s. 17 (w.e.f. 29-10-2002). 4. Subs. by Act 27 of 2014, s. 14, for certain words (w.e.f. 8-2-2014). 5. Ins. by Act 23 of 2019, s. 185 (w.e.f. 20-1-2020). ----- **15HB. Penalty for contravention where no separate penalty has been provided.—Whoever fails** to comply with any provision of this Act, the rules or the regulations made or directions issued by the Board thereunder for which no separate penalty has been provided, shall be [1][liable to a penalty which shall not be less one lakh rupees but which may extend to one crore rupees].] **15-I. Power to adjudicate.—(1) For the purpose of adjudging under sections 15A, 15B, 15C, 15D,** 15E, [2][15EA, 15EB,] 15F, 15G, [3][15H, 15HA and 15HB] the Board [4][may] appoint any officer not below the rank of a Division Chief to be an adjudicating officer for holding an inquiry in the prescribed manner after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty. (2) While holding an inquiry the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of any of the sections specified in sub-section (1), he may impose such penalty as he thinks fit in accordance with the provisions of any of those sections. 5[(3) The Board may call for and examine the record of any proceedings under this section and if it considers that the order passed by the adjudicating officer is erroneous to the extent it is not in the interests of the securities market, it may, after making or causing to be made such inquiry as it deems necessary, pass an order enhancing the quantum of penalty, if the circumstances of the case so justify: Provided that no such order shall be passed unless the person concerned has been given an opportunity of being heard in the matter: Provided further that nothing contained in this sub-section shall be applicable after an expiry of a period of three months from the date of the order passed by the adjudicating officer or disposal of the appeal under section 15T, whichever is earlier.] **15J.** **[6][Factors to be taken into account while adjudging quantum of penalty].—While adjudging** the quantum of penalty under [7][15-I or section 11 or section 11B, the Board or the adjudicating officer] officer shall have due regard to the following factors, namely:— (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the amount of loss caused to an investor or group of investors as a result of the default; (c) the repetitive nature of the default. 8[Explanation.—For the removal of doubts, it is clarified that the power of 9*** to adjudge the quantum of penalty under sections 15A to 15E, clauses (b) and (c) of section 15F, 15G, 15H and 15HA shall be and shall always be deemed to have been exercised under the provisions of this section.] 10[15JA. Crediting sums realised by way of penalties to Consolidated Fund of India.—All sums realised by way of penalties under this Act shall be credited to the Consolidated Fund of India.] 1. Subs. by Act 27 of 2014, s. 15, for “liable to a penalty which may extend to one crore rupees” (w.e.f. 8-2-2014). 2. Ins. by Act 13 of 2018, s. 184 (w.e.f. 8-3-2019). 3. Subs. by Act 59 of 2002, s. 18, for “and 15H” (w.e.f. 29-10-2002). 4. Subs. by Act 13 of 2018, s. 184, for “shall” (w.e.f. 8-3-2019). 5. Ins. by Act 27 of 2014, s. 16 (w.e.f. 28-3-2014). 6. Subs. by Act 13 of 2018, s. 185, for marginal heading (w.e.f. 8-3-2019). 7. Subs. by s. 185, ibid., for “section 15-I, the adjudicating officer” (w.e.f. 8-3-2019). 8. Ins. by Act 7 of 2017, s.147 (w.e.f. 1-3-2017). 9. The words “of an adjudicating officer” omitted by Act 13 of 2018, s. 185 (w.e.f. 8-3-2018). 10. Ins. by Act 59 of 2002, s. 19 (w.e.f. 29-10-2002). ----- 1[15JB. Settlement of administrative and civil proceedings.—(1) Notwithstanding anything contained in any other law for the time being in force, any person, against whom any proceedings have been initiated or may be initiated under section 11, section 11B, section 11D, sub-section (3) of section 12 or section 15-I, may file an application in writing to the Board proposing for settlement of the proceedings initiated or to be initiated for the alleged defaults. (2) The Board may, after taking into consideration the nature, gravity and impact of defaults, agree to the proposal for settlement, on payment of such sum by the defaulter or on such other terms as may be determined by the Board in accordance with the regulations made under this Act. (3) The settlement proceedings under this section shall be conducted in accordance with the procedure specified in the regulations made under this Act. (4) No appeal shall lie under section 15T against any order passed by the Board or adjudicating officer, as the case may be, under this section.] 2[(5) All settlement amounts, excluding the disgorgement amount and legal costs, realised under this Act shall be credited to the Consolidated Fund of India.] CHAPTER VIB ESTABLISHMENT, JURISDICTION, AUTHORITY AND PROCEDURE OF [3][SECURITIES APPELLATE TRIBUNAL] [4][15K. **Establishment of Securities Appellate Tribunal.—(1) The Central Government shall, by** notification, establish a Tribunal to be known as the Securities Appellate Tribunal to exercise the jurisdiction, powers and authority conferred on it by or under this Act or any other law for the time being in force. (2) The Central Government shall also specify in the notification referred to in sub-section (1), the matters and places in relation to which the Securities Appellate Tribunal may exercise jurisdiction.] 5[15L. Composition of Securities Appellate.—(1) The Securities Appellate Tribunal shall consist of a Presiding Officer and such number of Judicial Members and Technical Members as the Central Government may determine, by notification, to exercise the powers and discharge the functions conferred on the Securities Appellate Tribunal under this Act or any other law for the time being in force. (2) Subject to the provisions of this Act,— (a) the jurisdiction of the Securities Appellate Tribunal may be exercised by Benches thereof; (b) a Bench may be constituted by the Presiding Officer of the Securities Appellate Tribunal with two or more Judicial or Technical Members as he may deem fit: Provided that every Bench constituted shall include at least one Judicial Member and one Technical Member; (c) the Benches of the Securities Appellate Tribunal shall ordinarily sit at Mumbai and may also sit at such other places as the Central Government may, in consultation with the Presiding Officer, notify. (3) Notwithstanding anything contained in sub-section (2), the Presiding Officer may transfer a Judicial Member or a Technical Member of the Securities Appellate Tribunal from one Bench to another Bench.] 1. Ins. by Act 27 of 2014, s. 17 (w.e.f. 20-4-2007). 2. Ins. by Act 13 of 2018, s. 186 (w.e.f. 8-3-2019). 3. Subs. by Act 7 of 2017, s. 148, for “APPELLATE TRIBUNAL” (w.e.f. 1-3-2017). 4. Subs. by s. 148, ibid., for section 15K (w.e.f. 1-3-2017). 5. Subs. by s.148, ibid., for section 15L (w.e.f.1-3-2017) ----- 1[15M. Qualification for appointment as Presiding Officer, Judicial Member and Technical **Member.—A person shall not be qualified for appointment as the Presiding Officer or a Judicial Member** or a Technical Member of the Securities Appellate Tribunal, unless he— (a) is, or has been, a Judge of the Supreme Court or a Chief Justice of a High Court or a Judge of High Court for at least seven years, in the case of the Presiding Officer; and (b) is, or has been, a Judge of High Court for at least five years, in the case of a Judicial Member; or (c) in the case of a Technical Member–– (i) is, or has been, a Secretary or an Additional Secretary in the Ministry or Department of the Central Government or any equivalent post in the Central Government or a State Government; or (ii) is a person of proven ability, integrity and standing having special knowledge and professional experience, of not less than fifteen years, in financial sector including securities market or pension funds or commodity derivatives or insurance. **15MA. Appointment of Presiding Officer and Judicial Member.—The Presiding Officer and** Judicial Members of the Securities Appellate Tribunal shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee. **15MB. Search-cum-Selection Committee for appointment of Technical Members.—(1) The** Technical Members of the Securities Appellate Tribunal shall be appointed by the Central Government on the recommendation of a Search-cum-Selection Committee consisting of the following, namely:–– (a) Presiding Officer, Securities Appellate Tribunal—Chairperson; (b) Secretary, Department of Economic Affairs—Member; (c) Secretary, Department of Financial Services—Member; and (d) Secretary, Legislative Department or Secretary, Department of Legal Affairs—Member. (2) The Secretary, Department of Economic Affairs shall be the Convener of the Search-cum Selection Committee. (3) The Search-cum-Selection Committee shall determine its procedure for recommending the names of persons to be appointed under sub-section (1). **15MC. Vacancy not to invalidate selection proceeding.—(1) No appointment of the Presiding** Officer, a Judicial Member or a Technical Member of the Securities Appellate Tribunal shall be invalid merely by reason of any vacancy or any defect in the constitution of the Search-cum-Selection Committee. (2) A member or part time member of the Board or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority, or any person at senior management level equivalent to the Executive Director in the Board or in such Authorities, shall not be appointed as Presiding Officer or Member of the Securities Appellate Tribunal, during his service or tenure as such with the Board or with such Authorities, as the case may be, or within two years from the date on which he ceases to hold office as such in the Board or in such Authorities. (3) The Presiding Officer or such other member of the Securities Appellate Tribunal, holding office on the date of commencement of Part VIII of Chapter VI of the Finance Act, 2017 (7 of 2017) shall continue to hold office for such term as he was appointed and the other provisions of this Act shall apply to such Presiding Officer or such other member, as if Part VIII of Chapter VI of the Finance Act, 2017 had not been enacted.] 1. Subs. by Act 7 of 2017, s. 148, for section 15M (w.e.f. 1-3-2017). ----- 1[15N. Tenure of office of Presiding Office, Judicial or Technical Members of Securities **Appellate Tribunal.—The Presiding Officer or every Judicial or Technical Member of the Securities** Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his office, and shall be eligible for reappointment for another term of maximum five years: Provided that no Presiding Officer or the Judicial or Technical Member shall hold office after he has attained the age of seventy years.] **15-O. Salary and allowances and other terms and conditions of service of Presiding Officers.—** The salary and allowances payable to, and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of, the [2][Presiding Officer and other Members of a Securities Appellate Tribunal] shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of services of the 3[Presiding Officer and other Members of a Securities Appellate Tribunal] shall be varied to their disadvantage after appointment. **15P. Filling up of vacancies.—If, for reason other than temporary absence, any vacancy occurs in** 4[the office of the Presiding Officer or any other Member,] of a Securities Appellate Tribunal, then the Central Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Securities Appellate Tribunal from the stage at which the vacancy is filled. 5[15PA. Member to act as Presiding Officer in certain circumstances.—In the event of occurrence of any vacancy in the office of the Presiding Officer of the Securities Appellate Tribunal by reason of his death, resignation or otherwise, the senior-most Judicial Member of the Securities Appellate Tribunal shall act as the Presiding Officer until the date on which a new Presiding Officer is appointed in accordance with the provisions of this Act.] **15Q. Resignation and removal.—(1)** [6][The Presiding Officer or any other Member of a Securities Appellate Tribunal] may, by notice in writing under his hand addressed to the Central Government, resign his office: Provided that [7][the Presiding Officer or any other Member] shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor inters upon his office or until the expiry of his term of office, whichever is the earliest. 8[(2) The Central Government may, after an inquiry made by the Judge of the Supreme Court, remove the Presiding Officer or Judicial Member or Technical Member of the Securities Appellate Tribunal, if he— (a) is, or at any time has been adjudged as an insolvent; (b) has become physically or mentally incapable of acting as the Presiding Officer, Judicial or Technical Member; (c) has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude; (d) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest; or 1. Subs. by Act 7 of 2017, s.148, for section 15N (w.e.f. 26-5-2017). 2. Subs. by Act 59 of 2002, s. 22, for “Presiding Officer of a Securities Appellate Tribunal” (w.e.f. 29-10-2002). 3. Subs. by s. 22, ibid., for “said Presiding Officers” (w.e.f. 29-10-2002). 4. Subs. by s. 23, ibid., for “office of the Presiding Officer” (w.e.f. 29-10-2002). 5. Ins. by Act 7 of 2017, s. 148 (w.e.f. 26-5-2017). 6. Subs. by Act 59 of 2002, s. 24, for “Presiding Officer of a Securities Appellate Tribunal” (w.e.f. 29-10-2002). 7. Subs. by s. 24, ibid., for “the said Presiding Officer” (w.e.f. 29-10-2002). 8. Subs. by Act 7 of 2017, s.148, for sub-section (2) (w.e.f. 26-5-2017) ----- (e) has acquired such financial interest or other interest as is likely to affect prejudicially his functions as the Presiding Officer or Judicial or Technical Member: Provided that he shall not be removed from office under clauses (d) and (e), unless he has been given a reasonable opportunity of being heard in the matter.] (3) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the [1][the Presiding Officer or any other Member]. 2[15QA.Qualifications, **terms** **and conditions of** **service** **of Presiding** **Officer** **and** **Member.— Notwithstanding anything contained in this Act, the qualifications, appointment, term of** office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Presiding Officer and other Members of the Appellate Tribunal appointed after the commencement of 3[the Tribunals Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]: Provided that the Presiding Officer and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.] **15R. Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings.—** No order of the Central Government appointing any person as the [4][Presiding Officer or a Member] of a Securities Appellate Tribunal shall be called in question in any manner, and no act or proceeding before a Securities Appellate Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of a Securities Appellate Tribunal. **15S. Staff of the Securities Appellate Tribunal.—(1) The Central Government shall provide the** Securities Appellate Tribunal with such officers and employees as that Government may think fit. (2) The officers and employees of the Securities Appellate Tribunal shall discharge their functions under general superintendence of the Presiding Officer. (3) The salaries and allowances and other conditions of service of the officers and employees of the Securities Appellate Tribunal shall be such as may be prescribed. **15T. Appeal to the Securities Appellate Tribunal.—[5][(1) Save as provided in sub-section (2),** any person aggrieved,— (a) by an order of the Board made, on and after the commencement of the Securities Laws (Second Amendment) Act, 1999 (32 of 1999), under this Act, or the rules or regulations made thereunder; or (b) by an order made by an adjudicating officer [6][under this Act; or] 7[(c) by an order of the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority,] may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in the matter.] 8* - - (3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which [9][a copy of the order made by the Board or the adjudicating officer [10][or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority] as 1. Subs. by Act 59 of 2002, s. 24, for “aforesaid Presiding Officer” (w.e.f. 29-10-2002). 2. Ins. by Act 7 of 2017, s.178 (w.e.f. 26-5-2017) 3. Subs. by Act 33 of 2021, s. 17, for “Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act” (w.e.f. 4-4-2021). 4. Subs. by Act 59 of 2002, s. 25, for “Presiding Officer” (w.e.f. 29-10-2002). 5. Subs. by Act 32 of 1999, s. 9, for sub-section (1) (w.e.f. 16-12-1999). 6. Subs. by Act 7 of 2017, s. 148, “under this Act,” (w.e.f. 26-5-2017) 7. Ins. by s.148, ibid. (w.e.f. 26-5-2017) 8. Sub-section (2) omitted by Act 27 of 2014, s. 18 (w.e.f. 18-7-2013). 9. Subs. by Act 32 of 1999, s. 9, for “a copy of the order made, by the adjudicating officer” (w.e.f. 16-12-1999). 10. Ins. by Act 7 of 2017, s.148 (w.e.f. 26-5-2017). ----- the case may be,] is received by him and it shall be in such form and be accompanied by such fee as may be prescribed: Provided that the Securities Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (4) On receipt of an appeal under sub-section (1), the Securities Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (5) The Securities Appellate Tribunal shall send a copy of every order made by it to the 1[Board, [2][or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority, as the case may be] the parties to the appeal and to the concerned adjudicating officer. (6) The appeal filed before the Securities Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal. **15U. Procedure and powers of the Securities Appellate Tribunal.—(1) The Securities Appellate** Tribunal shall not be bound by the procedure laid down by the code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules, the Securities Appellate Tribunal shall have powers to regulate their own procedure including the places at which they shall have their sittings. (2) The Securities Appellate Tribunal shall have, for the purposes of discharging their functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) reviewing its decisions; (f) dismissing an application for default or deciding it ex-parte; (g) setting aside any order of dismissal of any application for default or any order passed by it _ex-parte;_ (h) any other matter which may be prescribed. (3) Every proceeding before the Securities Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860) and the Securities Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 2[(4) Where Benches are constituted, the Presiding Officer of the Securities Appellate Tribunal may, from time to time make provisions as to the distribution of the business of the Securities Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with, by each Bench. (5) On the application of any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Presiding Officer of the Securities Appellate Tribunal may transfer any case pending before one Bench, for disposal, to any other Bench. (6) If a Bench of the Securities Appellate Tribunal consisting of two members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Presiding 1. Subs. by Act 32 of 1999, s. 9, for “parties” (w.e.f. 16-12-1999). 2. Ins. by Act 7 of 2017, s.148 (w.e.f. 26-5-2017). ----- Officer of the Securities Appellate Tribunal who shall either hear the point or points himself or refer the case for hearing only on such point or points by one or more of the other members of the Securities Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of the members of the Securities Appellate Tribunal who have heard the case, including those who first heard it.] 1[15V. Right to legal representation.—The appellant may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Securities Appellate Tribunal. _Explanation.—For the purposes of this section,—_ (a) ”chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (b) ”company secretary” means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (c) ”cost accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (d) ”legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice.] **15W. Limitation.—The provisions of the Limited Act, 1963 (36 of 1963), shall, as far as may be,** apply to an appeal made to a Securities Appellate Tribunal. 2[15X. Presiding Officer, Members and staff of Securities Appellate tribunal to be public **servants.—The Presiding Officer, Members and other officers and employees of a Securities Appellate** Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).] **15Y. Civil Court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any** suit or proceeding in respect of any matter which an adjudication officer appointed under this Act or a Securities Appellate Tribunal constituted under this Act is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. 3[15Z. Appeal to Supreme Court.—Any person aggrieved by any decision or order of the Securities Appellate Tribunal may file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Securities Appellate Tribunal to him on any question of law arising out of such order: Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.]] CHAPTER VII MISCELLANEOUS **16. Power to Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Board shall, in exercise of its powers or the performance of its functions under 4[this Act or the Depositories Act, 1996 (22 of 1996)], be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: 1. Subs. by Act 32 of 1999, s. 10, for section 15V (w.e.f. 16-12-1999). 2. Subs. by Act 59 of 2002, s. 26, for section 15X (w.e.f. 29-10-2002). 3. Subs. by s. 27, ibid., for section 15Z (w.e.f. 29-10-2002). 4. Subs. by Act 22 of 1996, s. 30 and the Schedule, for “this Act” (w.e.f. 20-9-1995). ----- Provided that the Board shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government whether a question is one of policy or not shall be final. **17. Power of Central Government to supersede the Board.—(1) If at any time the Central** Government is of opinion— (a) that on account of grave emergency, the Board is unable to discharge the functions and duties imposed on it by or under the provisions of this Act; or (b) that the Board has persistently made default in complying with any direction issued by the Central Government under this Act or in the discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Board or the administration of the Board has deteriorated; or (c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification, supersede the Board for such period, not exceeding six months, as may be specified in the notification. (2) Upon the publication of a notification under sub-section (1) superseding the Board,— (a) all the members shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Board, shall until the Board is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; and (c) all property owned or controlled by the Board shall, until the Board is reconstituted under sub-section (3), vest in the Central Government. (3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may reconstitute the Board by a fresh appointment and in such case any person or persons who vacated their offices under clause (a) of sub-section (2), shall not be deemed disqualified for appointment: Provided that the Central Government may, at any time, before the expiration of the period of supersession, take action under this sub-section. (4) The Central Government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament at the earliest. **18. Returns and reports.—(1) The Board shall furnish to the Central Government at such time and** in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of the securities market, as the Central Government may, from time to time, require. (2) Without prejudice to the provisions of sub-section (1), the Board shall, within [1][ninety days] after the end of each financial year, submit to the Central Government a report in such form, as may be prescribed, giving a true and full account of its activities, policy and programmes during the previous financial year. (3) A copy of the report received under sub-section (2) shall be laid, as soon as may be after it is received, before each House of Parliament. **19. Delegation.—The Board may, by general or special order in writing delegate to any member,** officer of the Board or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers under section 29) as it may deem necessary. **20. Appeals.—(1) Any person aggrieved by [2][an order of the Board made, before the commencement** of the Securities Laws (Second Amendment) Act, 1999 (32 of 1999),] under this Act, or the rules or 1. Subs. by Act 9 of 1995, s. 10, for “sixty days” (w.e.f. 25-1-1995). 2. Subs. by Act 32 of 1999, s. 11, for “an order of the Board made” (w.e.f. 16-12-1999). ----- regulations made thereunder may prefer an appeal to the Central Government within such time as may be prescribed. (2) No appeal shall be admitted if it is preferred after the expiry of the period prescribed therefor: Provided that an appeal may be admitted after the expiry of the period prescribed therefor if the appellant satisfies the Central Government that he had sufficient cause for not preferring the appeal within the prescribed period. (3) Every appeal made under this section shall be made in such form and shall be accompanied by a copy of the order appealed against and by such fees as may be prescribed. (4) The procedure for disposing of an appeal shall be such as may be prescribed: Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of being heard. **1[20A. Bar of jurisdiction.—No order passed by the** 2[Board or the adjudicating officer] under this Act shall be appealable except as provided in [3][section 15T or section 20] and no civil court shall have jurisdiction in respect of any matter which the [4][Board or the adjudicating officer] is empowered by, or under, this Act to pass any order and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any order passed by the [4][Board or the adjudicating officer] by, or under, this Act.] **21. Savings.—Nothing in this Act shall exempt any person from any suit or other proceedings which** might, apart from this Act, be brought against him. **22. Members, officers and employees of the Board to be public servants.—All members, officers** and other employees of the Board shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **23. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government [4][or Board] or any officer of the Central Government or any member, officer or other employee of the Board for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. **5[24. Offences.—(1) Without prejudice to any award of penalty by the adjudicating officer** 6[or the Board] under this Act, if any person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules or regulations made thereunder, he shall be punishable with imprisonment for a term which may extend to [7][ten years, or with fine, which may extend to twenty-five crore rupees or with both]. (2) If any person fails to pay the penalty imposed by the adjudicating officer [8][or the Board] or fails to comply with any [9]*** directions or orders, he shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to [10][ten years, or with fine, which may extend to twenty-five crore rupees or with both.] **11[24A.** **Composition of certain offences.—Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act, not being an offence punishable with imprisonment only, or with imprisonment and also with fine, may either before or after the institution of any proceeding, be compounded by a Securities Appellate Tribunal or a court before which such proceedings are pending. 1. Ins. by Act 9 of 1995, s. 11 (w.e.f. 25-1-1995). 2. Subs. by Act 32 of 1999, s. 12, for “Board” (w.e.f. 16-12-1999). 3. Subs. by s. 12, ibid., for “section 20” (w.e.f. 16-12-1999). 4. Ins. by Act 9 of 1995, s. 12 (w.e.f. 25-1-1995). 5. Subs. by s. 13, ibid., for section 24 (w.e.f. 25-1-1995). 6. Ins. by Act 13 of 2018, s. 187 (w.e.f. 8-3-2019). 7. Subs. by Act 59 of 2002, s. 28, for “one year, or with fine, or with both” (w.e.f. 29-10-2002). 8. Ins. by Act 13 of 2018, s. 187 (w.e.f. 8-3-2019). 9. The words “of his” omitted by s. 187, ibid. (w.e.f. 8-3-2019). 10. Subs. by Act 59 of 2002, s. 28, for certain words (w.e.f. 29-10-2002). 11. Ins. by s. 29, ibid. (w.e.f. 29-10-2002). ----- **24B. Power to grant immunity.—(1) The Central Government may, on recommendation by the** Board, if the Central Government is satisfied, that any person, who is alleged to have violated any of the provisions of this Act or the rules or the regulations made thereunder, has made a full and true disclosure in respect of the alleged violation, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act, or the rules or the regulations made thereunder or also from the imposition of any penalty under this Act with respect to the alleged violation: Provided that no such immunity shall be granted by the Central Government in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of application for grant of such immunity: Provided further that recommendation of the Board under this sub-section shall not be binding upon the Central Government. (2) An immunity granted to a person under sub-section (1) may, at any time, be withdrawn by the Central Government, if it is satisfied that such person had, in the course of the proceedings, not complied with the condition on which the immunity was granted or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the contravention and shall also become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted.] **25. Exemption from tax on wealth and income.—Notwithstanding anything contained in the** Wealth-tax Act, 1957 (27 of 1957), the Income-tax Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to tax on wealth, income, profits or gains— (a) the Board; (b) the existing Securities and Exchange Board from the date of its constitution to the date of establishment of the Board, shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived. **26. Cognizance of offences by courts.—(1) No court shall take cognizance of any offence** punishable under this Act or any rules or regulations made thereunder, save on a complaint made by the Board [1]***. 2* - - - **3[26A. Establishment of Special Courts.—(1) The Central Government may, for the purpose of** providing speedy trial of offences under this Act, by notification, establish or designate as many Special Courts as may be necessary. (2) A Special Court shall consist of a single judge who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working. (3) A person shall not be qualified for appointment as a judge of a Special Court unless he is, immediately before such appointment, holding the office of a Sessions Judge or an Additional Sessions Judge, as the case may be. **26B. Offences triable by Special Courts.—Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), all offences under this Act committed prior to the date of commencement of the Securities Laws (Amendment) Act, 2014 (27 of 2014) or on or after the date of such commencement, shall be taken cognizance of and tried by the Special Court established for the area in which the offence is committed or where there are more Special Courts than one for such area, by such one of them as may be specified in this behalf by the High Court concerned. 1. The words “with the previous sanction of the Central Government” omitted by Act 9 of 1995, s. 14 (w.e.f. 25-1-1995). 2. Sub-section (2) omitted by Act 27 of 2014, s. 19 (w.e.f. 18-7-2013). 3. Ins. by s. 20, ibid. (w.e.f. 18-7-2013). ----- **26C. Appeal and revision.—The High Court may exercise, so far as may be applicable, all the** powers conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974) on a High Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court. **26D. Application of Code to proceedings before Special Court.—(1) Save as otherwise provided** in this Act, the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply to the proceedings before a Special Court and for the purposes of the said provisions, the Special Court shall be deemed to be a Court of Session and the person conducting prosecution before a Special Court shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal Procedure, 1973 (2 of 1974). (2) The person conducting prosecution referred to in sub-section (1) should have been in practice as an advocate for not less than seven years or should have held a post, for a period of not less than seven years, under the Union or a State, requiring special knowledge of law. **26E. Transitional provisions.—Any offence committed under this Act, which is triable by a Special** Court shall, until a Special Court is established, be taken cognizance of and tried by a Court of Session exercising jurisdiction over the area, notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974): Provided that nothing contained in this section shall affect the powers of the High Court under section 407 of the Code of Criminal Procedure, 1973 (2 of 1974) to transfer any case or class of cases taken cognizance by a Court of Session under this section.] **27.** **[1][Contravention by companies].—(1) Where** [2][a contravention of any of the provisions of this Act or any rule, regulation, direction or order made thereunder] has been committed by a company, every person who at the time the [3][contravention] was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the [4][contravention] was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an [4][contravention] under this Act has been committed by a company and it is proved that the [4][contravention] has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the [4][contravention] and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **28.** [Power to exempt.] _Omitted by the Securities Laws_ (Amendment) _Act,_ 1995 (9 _of_ 1995), _s. 15_ (w.e.f. 25-1-1995). 4[28A. Recovery of amounts.—(1) If a person fails to pay the penalty imposed 5[under this Act] or fails to comply with any direction of the Board for refund of monies or fails to comply with a direction of disgorgement order issued under section 11B or fails to pay any fees due to the Board, the Recovery Officer may draw up under his signature a statement in the specified form specifying the amount due from the person (such statement being hereafter in this Chapter referred to as certificate) and shall proceed to recover from such person the amount specified in the certificate by one or more of the following modes, namely:— (a) attachment and sale of the person’s movable property; 1. Subs. by Act 13 of 2018, s. 188, for marginal heading (w.e.f. 8-3-2019). 2. Subs. by s. 188, ibid., for “an offence under this Act” (w.e.f. 8-3-2019). 3. Subs. by s. 188, ibid., for “offence” (w.e.f. 8-3-2019). 4. Ins. by Act 27 of 2014, s. 21 (w.e.f. 18-7-2013). 5. Subs. by Act 13 of 2018, s. 189, for “by the adjudicating officer” (w.e.f. 8-3-2019). ----- (b) attachment of the person’s bank accounts; (c) attachment and sale of the person’s immovable property; (d) arrest of the person and his detention in prison; (e) appointing a receiver for the management of the person's movable and immovable properties, and for this purpose, the provisions of sections 220 to 227, 228A, 229, 232, the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, in so far as may be, apply with necessary modifications as if the said provisions and the rules made thereunder were the provisions of this Act and referred to the amount due under this Act instead of to income-tax under the Income-tax Act, 1961. _Explanation 1.— For the purposes of this sub-section, the person's movable or immovable property or_ monies held in bank accounts shall include any property or monies held in bank accounts which has been transferred directly or indirectly on or after the date when the amount specified in certificate had become due, by the person to his spouse or minor child or son's wife or son's minor child, otherwise than for adequate consideration, and which is held by, or stands in the name of, any of the persons aforesaid; and so far as the movable or immovable property or monies held in bank accounts so transferred to his minor child or his son's minor child is concerned, it shall, even after the date of attainment of majority by such minor child or son's minor child, as the case may be, continue to be included in the person's movable or immovable property or monies held in bank accounts for recovering any amount due from the person under this Act. _Explanation 2.—Any reference under the provisions of the Second and Third Schedules to the_ Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 1962 to the assessee shall be construed as a reference to the person specified in the certificate. _Explanation 3.—Any reference to appeal in Chapter XVIID and the Second Schedule to the_ Income-tax Act, 1961 (43 of 1961), shall be construed as a reference to appeal before the Securities Appellate Tribunal under section 15T of this Act. 1[Explanation 4. —The interest referred to in section 220 of the Income-tax Act, 1961 shall commence from the date the amount became payable by the person.] (2) The Recovery Officer shall be empowered to seek the assistance of the local district administration while exercising the powers under sub-section (1). (3) Notwithstanding anything contained in any other law for the time being in force, the recovery of amounts by a Recovery Officer under sub-section (1), pursuant to non-compliance with any direction issued by the Board under section 11B, shall have precedence over any other claim against such person. (4) For the purposes of sub-sections (1), (2) and (3), the expression ‘‘Recovery Officer’’ means any officer of the Board who may be authorised, by general or special order in writing, to exercise the powers of a Recovery Officer.] 2[28B. Continuance of proceedings.—(1) Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay, if he had not died, in the like manner and to the same extent as the deceased: Provided that, in case of any penalty payable under this Act, a legal representative shall be liable only in case the penalty has been imposed before the death of the deceased person. (2) For the purposes of sub-section (1),— (a) any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this Act, except a proceeding for levy of penalty, initiated against the deceased before his death, shall be deemed to have been initiated against the legal representative, and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased and all the provisions of this Act shall apply accordingly; (b) any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this Act, except a proceeding for levy of penalty, which could have been initiated 1. The Explanation ins. by Act 21 of 2019, s. 42 and the Second Schedule (w.e.f. 21-2-2019). 2. Ins. by Act 13 of 2018, s. 190 (w.e.f. 8-3-2019). ----- against the deceased if he had survived, may be initiated against the legal representative and all the provisions of this Act shall apply accordingly. (3) Every legal representative shall be personally liable for any sum payable by him in his capacity as legal representative if, while his liability for such sum remains undischarged, he creates a charge on or disposes of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession, but such liability shall be limited to the value of the asset so charged, disposed of or parted with. (4) The liability of a legal representative under this section shall be limited to the extent to which the estate of the deceased is capable of meeting the liability. _Explanation.—For the purposes of this section “legal representative” means a person who in law_ represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased and where a party sues or is sued in a representative character, the person on whom the estate devolves on the death of the party so suing or sued.] **1[28C. Powers of Board not to apply to International Financial Services Centre.—** Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Board under this Act,— (a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 of 2005); (b) shall be exercisable by the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, in so far as regulation of financial products, financial services and financial institutions that are permitted in the International Financial Services Centres are concerned.] **29. Power to make rules.—(1) The Central Government may, by notification, make rules for** carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the term of office and other conditions of service of the Chairman and the members under sub-section (1) of section 5; (b) the additional functions that may be performed by the Board under section 11; 2* - - - *; (d) the manner in which the accounts of the Board shall be maintained under section 15; 3[(da) the manner of inquiry under sub-section (1) of section 15-I; (db) the salaries and allowances and other terms and conditions of service of the [4][Presiding Officers, Members] and other officers and employees of the Securities Appellate Tribunal under section 15-O and sub-section (3) of section 15S; (dc) the procedure for the investigation of misbehaviour or incapacity of the [5][Presiding Officers, or other Members] of the Securities Appellate Tribunal under sub-section (3) of section 15Q; (dd) the form in which an appeal may be filed before the Securities Appellate Tribunal under section 15T and the fees payable in respect of such appeal;] (e) the form and the manner in which returns and report to be made to the Central Government under section 18; (f) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be, or may be, made by rules. **30. Power to make regulations.—(1) The Board may,** [6]*** by notification, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— 1. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). 2. Clause (c) omitted by Act 9 of 1995, s. 16 (w.e.f. 25-1-1995). 3. Ins. by s. 16, ibid. (w.e.f. 25-1-1995). 4. Subs. by Act 59 of 2002, s. 31, for “Presiding Officers” (w.e.f. 29-10-2002). 5. Subs. by s. 31, ibid., for “Presiding Officers” (w.e.f. 29-10-2002). 6. The words “with the previous approval of the Central Government” omitted by Act 9 of 1995, s. 17 (w.e.f. 25-1-1995). ----- (a) the times and places of meetings of the Board and the procedure to be followed at such meetings under sub-section (1) of section 7 including quorum necessary for the transaction of business; (b) the term and other conditions of service of officers and employees of the Board under sub-section (2) of section 9; 1[(c) the matters relating to issue of capital, transfer of securities and other matters incidental thereto and the manner in which such matters shall be disclosed by the companies under section 11A; 2[(ca) the utilisation of the amount credited under sub-section (5) of section 11; (cb) the fulfilment of other conditions relating to collective investment scheme under sub-section (2A) of section 11AA;] (d) the conditions subject to which certificate of registration is to be issued, the amount of fee to be paid for certificate of registration and the manner of suspension or cancellation of certificate of registration under section 12;] 3[(da) the terms determined by the Board for settlement of proceedings under sub-section (2) and the procedure for conducting of settlement proceedings under sub-section (3) of section 15JB; (db) any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be made by regulations.] **31. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **32. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the provisions of any other law for the time being in force. **[33.** **_Amendment of certain enactments.]_** _Rep. by the Repealing and Amending Act,_ 2001 (30 of 2001), s. 2 and the First Schedule (w.e.f. 3-9-2001). **34. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of five years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **4[34A. Validation of certain acts.—Any act or thing done or purporting to have been done under the** principal Act, in respect of calling for information from, or furnishing information to, other authorities, whether in India or outside India, having functions similar to those of the Board and in respect of settlement of administrative and civil proceedings, shall, for all purposes, be deemed to be valid and effective as if the amendments made to the principal Act had been in force at all material times.] **35. Repeal and saving.—(1) The Securities and Exchange Board of India Ordinance, 1992** (Ord. 5 of 1992), is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. 1. Subs. by Act 9 of 1995, s. 17, for clause (c) (w.e.f. 25-1-1995). 2. Ins. by Act 27 of 2014, s. 22 (w.e.f. 18-7-2013). 3. Ins. by s. 22, ibid. (w.e.f. 18-7-2013). 4. Ins. by s. 23, ibid. (w.e.f. 18-7-2013). ----- [THE SCHEDULE.] Rep. by the Repealing and Amending Act, 2001 (30 of 2001), s. 2 and the First _Schedule (w.e.f. 3-9-2001)._ -----
4-Apr-1992
16
The Cess and Other Taxes on Minerals (Validation) Act, 1992
https://www.indiacode.nic.in/bitstream/123456789/1910/1/A1992-16.pdf
central
# THE CESS AND OTHER TAXES ON MINERALS (VALIDATION) ACT, 1992 __________ ARRANGEMENT OF SECTIONS ___________ SECTIONS 1. Short title, extent and commencement. 2. Validation of certain State laws and actions taken and things done thereunder. 3. Repeal and savings. THE SCHEDULE. 1 ----- # THE CESS AND OTHER TAXES ON MINERALS (VALIDATION) ACT, 1992 ACT NO. 16 OF 1992 [4thApril, 1992.] # An Act to validate the imposition and collection of cesses and certain other taxes on minerals under certain State laws. BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— **[1. Short title, extent and commencement.—(1) This Act may be called the Cess and Other Taxes on](http://indiankanoon.org/doc/153578/)** Minerals (Validation) Act, 1992. [(2) It extends to the whole of India.](http://indiankanoon.org/doc/780760/) [(3) It shall be deemed to have come into force on the 15th day of February, 1992.](http://indiankanoon.org/doc/613586/) **[2. Validation of certain State laws and actions taken and things done thereunder.—(1) The laws](http://indiankanoon.org/doc/1520747/)** specified in the Schedule to this Act shall be, and shall be deemed always to have been, as valid as if the provisions contained therein relating to cesses or other taxes on minerals had been enacted by Parliament and such provisions shall be deemed to have remained in force up to the 4th day of April, 1991. [(2) Notwithstanding any judgment, decree or order of any court, all actions taken, things done, rules](http://indiankanoon.org/doc/856166/) made, notifications issued or purported to have been taken, done, made or issued and cesses or other taxes on minerals realised under any such laws shall be deemed to have been validly taken, done, made, issued or realised, as the case may be, as if this section had been in force at all material times when such actions were taken, things were done, rules were made, notifications were issued, or cesses or other taxes were realised, and no suit or other proceeding shall be maintained or continued in any court for the refund of the cesses or other taxes realised under any such laws. [(3) For the removal of doubts, it is hereby declared that nothing in sub-section (2) shall be construed](http://indiankanoon.org/doc/1769213/) as preventing any person from claiming refund of any cess or tax paid by him in excess of the amount due from him under any such laws. **[3. Repeal and savings.—(1) The Cess and Other Taxes on Minerals (Validation) Ordinance, 1992](http://indiankanoon.org/doc/1331379/)** (Ord. 7 of 1992) is hereby repealed. [(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be](http://indiankanoon.org/doc/382357/) deemed to have been done or taken under the corresponding provisions of this Act. 2 ----- THE SCHEDULE (See section 2) 1. The Andhra Pradesh (Mineral Rights) Tax Act, 1975 (A.P. Act 14 of 1975). 2. The Andhra Pradesh (Andhra Area) District Boards Act, 1920. 3. The Andhra Pradesh (Telengana Area) District Boards Act, 1955. 4. The Cess Act, 1880 (Bengal Act 9 of 1880) as applicable in the State of Bihar. 5. The Karnataka Zilla Parishads, Taluk Panchayat Samitis, Mandal Panchayats and Nyaya Panchayats Act, 1983 (Karnataka Act 20 of 1985). 6. The Karnataka (Mineral Rights) Tax Act, 1984 (Karnataka Act 32 of 1984). 7. The Madhya Pradesh Karadhan Adhiniyam, 1982 (M.P. Act 15 of 1982). 8. The Madhya Pradesh Upkar Adhiniyam, 1981 (M.P. Act 1 of 1982). 9. The Maharashtra Zilla Parishads and Panchayat Samitis (Amendment and Validation) Act, 1981 (Maharashtra Act 46 of 1981). 10. The Orissa Cess Act, 1962 (Orissa Act II of 1962). 11. The Tamil Nadu Panchayat Act, 1958 (Tamil Nadu Act XXXV of 1958). 3 -----
17-May-1992
19
The National Commission for Minorities Act, 1992
https://www.indiacode.nic.in/bitstream/123456789/1927/1/199219.pdf
central
# THE NATIONAL COMMISSION FOR MINORITIES ACT, 1992 __________ ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II THE NATIONAL COMMISSIONFOR MINORITIES 3. Constitution of the National Commission for Minorities. 4. Term of office and conditions of service of Chairperson and Members. 5. Officers and other employees of the Commission. 6. Salaries and allowances to be paid out of grants. 7. Vacancies, etc., not to invalidate proceedings of the Commission. 8. Procedure to be regulated by the Commission. CHAPTER III FUNCTIONS OF THE COMMISSION 9. Functions of the Commission CHAPTER IV FINANCE, ACCOUNTS AND AUDIT 10. Grants by the Central Government. 11. Accounts and audit. 12. Annual report. 13. Annual report and audit report to be laid before Parliament. CHAPTER V MISCELLANEOUS 14. Chairperson, Members and staff of the Commission to be public servants. 15. Power to make rules. 16. Power to remove difficulties. 1 ----- # THE NATIONAL COMMISSION FOR MINORITIES ACT, 1992 ACT NO. 19 OF 1992 [17th May, 1992.] # An Act to constitute a National Commission for Minorities and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the National Commission** for Minorities Act, 1992. (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Commission” means the National Commission for Minorities constituted under section 3; (b) “Member” means a Member of the Commission [3][and includes the Vice-Chairperson]; (c) “minority”, for the purposes of this Act, means a community notified as such by the Central Government; (d) “prescribed” means prescribed by rules made under this Act. CHAPTER II THE NATIONAL COMMISSIONFOR MINORITIES **3. Constitution of the National Commission for Minorities.—(1)** The Central Government shall constitute a body to be known as the National Commission for Minorities to exercise the powers conferred on, and to perform the functions assigned to, it under this Act. (2) The Commission shall consist of a [4][Chairperson, a Vice-Chairperson and five Members] to be nominated by the Central Government from amongst persons of eminence, ability and integrity: Provided that five Members including the Chairperson shall be from amongst the minority communities. **4. Term of office and conditions of service of Chairperson and Members.—(1) The Chairperson** and every Member shall hold office for a term of three years from the date he assumes office. (2) The Chairperson or a Member may, by writing under his hand addressed to the Central Government, resign from the office of Chairperson or, as the case may be, of the Member at any time. (3) The Central Government shall remove a person from the office of Chairperson or a Member referred to in sub-section (2) if that person— (a) becomes an undischarged insolvent; (b) is convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; (c) becomes of unsound mind and stands so declared by a competent court; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-102019). 2. 17th May, 1993, _vide notification No. S.O. 317(E), dated 17th May, 1993,_ _see Gazette of India, Extraordinary, Part II,_ sec. 3(ii). 3. Added by Act 41 of 1995, s. 2 (w.e.f. 18-9-1995). 4. Subs. by s. 3, ibid., for “Chairperson and six Members” (w.e.f. 18-9-1995). 2 ----- (d) refuses to act or becomes incapable of acting; (e) is, without obtaining leave of absence from the Commission, absent from three consecutive meetings of the Commission; or (f) has, in the opinion of the Central Government, so abused the position of Chairperson or Member as to render that person’s continuance in office detrimental to the interests of minorities or the public interest: Provided that no person shall be removed under this clause until that person has been given a reasonable opportunity of being heard in the matter. (4) A vacancy caused under sub-section (2) or otherwise shall be filled by fresh nomination. (5) The salaries and allowances payable to, and the other terms and conditions of service of, the Chairperson and Members shall be such as may be prescribed. **5. Officers and other employees of the Commission.—(1) The Central Government shall provide** the Commission with a Secretary and such other officers and employees as may be necessary for the efficient performance of the functions of the Commission under this Act. (2) The salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees appointed for the purpose of the Commission shall be such as may be prescribed. **6. Salaries and allowances to be paid out of grants.—The salaries and allowances payable to the** Chairperson and Members and the administrative expenses, including salaries, allowances and pensions payable to the officers and other employees referred to in section 5, shall be paid out of the grants referred to in sub-section (1) of section 10. **7. Vacancies, etc., not to invalidate proceedings of the Commission.—No act or proceeding of the** Commission shall be questioned or shall be invalid merely on the ground of the existence of any vacancy or defect in the constitution of the Commission. **8. Procedure to be regulated by the Commission.—(1) The Commission shall meet as and when** necessary at such time and place as the Chairperson may think fit. (2) The Commission shall regulate its own procedure. (3) All orders and decisions of the Commission shall be authenticated by the Secretary or any other officer of the Commission duly authorised by the Secretary on this behalf. CHAPTER III FUNCTIONS OF THE COMMISSION **9. Functions of the Commission.—(1)The Commission shall perform all or any of the following** functions, namely:— (a) evaluate the progress of the development of minorities under the Union and States; (b) monitor the working of the safeguards provided in the Constitution and in laws enacted by Parliament and the State Legislatures; (c) make recommendations for the effective implementation of safeguards for the protection of the interests of minorities by the Central Government or the State Governments; (d) look into specific complaints regarding deprivation of rights and safeguards of the minorities and take up such matters with the appropriate authorities; (e) cause studies to be undertaken into problems arising out of any discrimination against minorities and recommend measures for their removal; (f) conduct studies, research and analysis on the issues relating to socio-economic and educational development of minorities; 3 ----- (g) suggest appropriate measures in respect of any minority to be undertaken by the Central Government or the State Governments; (h) make periodical or special reports to the Central Government on any matter pertaining to minorities and in particular difficulties confronted by them; and (i) any other matter which may be referred to it by the Central Government. (2) The Central Government shall cause the recommendations referred to in clause (c) of sub-section (1) to be laid before each House of Parliament along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the Union and the reasons for the non-acceptance, if any, of any of such recommendations. (3) Where any recommendation referred to in clause (c) of sub-section (1) or any part thereof with which any State Government is concerned, the Commission shall forward a copy of such recommendation or part to such State Government who shall cause it to be laid before the Legislature of the State along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the State and the reasons for the non-acceptance, if any, of any of such recommendation or part. (4) The Commission shall, while performing any of the functions mentioned in sub-clauses (a), (b) and (d) of sub-section (1), have all the powers of a civil court trying a suit and in particular, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person from any part of India and examining him on oath; (b) requiring the discovery and production of any document; (c) receiving evidence on affidavits; (d) requisitioning any public record or copy thereof from any court or office; (e) issuing commissions for the examination of witnesses and documents; and (f) any other matter which may be prescribed. CHAPTER IV FINANCE, ACCOUNTS AND AUDIT **10. Grants by the Central Government.—(1)** The Central Government shall, after due appropriation made by Parliament by law in this behalf, pay to the Commission by way of grants such sums of money as the Central Government may think fit for being utilised for the purposes of this Act. (2) The Commission may spend such sums as it thinks fit for performing the functions under this Act, and such sums shall be treated as expenditure payable out of the grants referred to in sub-section (1). **11. Accounts and audit.—(1)** The Commission shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Commission shall be audited by the Comptroller and Auditor-General at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Commission to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the Commission under this Act shall have the same rights and privileges and the authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Commission. 4 ----- **12. Annual report.—The Commission shall prepare, in such form and at such time, for each** financial year, as may be prescribed, its annual report, giving a full account of its activities during the previous financial year and forward a copy thereof to the Central Government. **13. Annual report and audit report to be laid before Parliament.—The Central Government shall** cause the annual report together with a memorandum of action taken on the recommendations contained therein, in so far as they relate to the Central Government, and the reasons for the non-acceptance, if any, of any of such recommendations and the audit report to be laid as soon as may be after the reports are received, before each House of Parliament. CHAPTER V MISCELLANEOUS **14. Chairperson, Members and staff of the Commission to be public servants.—The Chairperson,** Members and employees of the Commission shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **15. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (a) salaries and allowances payable to, and the other terms and conditions of service of, the Chairperson and Members under sub-section (5) of section 4 and of officers and other employees under sub-section (2) of section5; (b) any other matter under clause (f) of sub-section (4) of section 9; (c) the form in which the annual statement of accounts shall be maintained under sub-section (1) of section 11; (d) the form in, and the time at, which the annual report shall be prepared under section 12; (e) any other matter which is required to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **16. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. 5 -----
7-Aug-1992
22
The Foreign Trade (Development and Regulation) Act, 1992
https://www.indiacode.nic.in/bitstream/123456789/1947/3/A1992-22.pdf
central
# THE FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992 _________ ARRANGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II POWER OF CENTRAL GOVERNMENT TO MAKE ORDER AND ANNOUNCE FOREIGN TRADE POLICY 3. Powers to make provisions relating to imports and exports. 4. Continuance of existing orders. 5. Foreign Trade Policy. 6. Appointment of Director General and his functions. CHAPTER III IMPORTER-EXPORTER CODE NUMBER AND LICENCE 7. Importer-exporter Code Number. 8. Suspension and cancellation of Importer-exporter Code Number. 9. Issue, suspension and cancellation of licence. CHAPTER IIIA QUANTITATIVE RESTRICTIONS 9A. Power of Central Government to impose quantitative restrictions. CHAPTER IV SEARCH, SEIZURE, PENALTY AND CONFISCATION 10. Power relating to search and seizure. 11. Contravention of provisions of this Act, rules, orders and foreign trade policy. 11A. Crediting sums realised by way of penalties in Consolidated Fund of India. 11B. Empowering Settlement Commission for regularisation of export obligation default. 12. Penalty or confiscation not to interfere with other punishment. 13. Adjudicating Authority. 14. Giving of opportunity to the owner of the goods (including the goods connected with services or technology), etc. CHAPTER IVA CONTROLS ON EXPORT OF SPECIFIED GOODS, SERVICES AND TECHNOLOGY 14A. Controls on export of specified goods, services and technology. 14B. Transfer controls. 14C. Catch-all controls. 14D. Suspension or cancellation of a licence. 14E. Offences and penalties. 1 ----- CHAPTER V APPEAL AND REVIEW SECTIONS 15. Appeal. 16. Review. 17. Powers of Adjudicating and other Authorities. CHAPTER VI MISCELLANEOUS 18. Protection of action taken in good faith. 18A.Application of other laws not barred. 19. Power to make rules. 20. Repeal and savings. 2 ----- # THE FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992 ACT NO. 22 OF 1992 [7th August, 1992.] # An Act to provide for the development and regulation of foreign trade by facilitating imports into, and augmenting exports from, India and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Foreign Trade (Development** and Regulation) Act, 1992. (2) Sections 11 to 14 shall come into force at once and the remaining provisions of this Act shall be deemed to have come into force on the 19th day of June, 1992. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Adjudicating Authority” means the authority specified in, or under, section 13; (b) “Appellate Authority” means the authority specified in, or under, sub-section (1) of section 15; (c) “conveyance” means any vehicle, vessel, aircraft or any other means of transport including any animal; (d) “Director General” means the Director General of Foreign Trade appointed under section 6; 1[(e) “import” and “export” means,— (I) in relation to goods, bringing into, or taking out of, India any goods by land, sea or air; (II) in relation to services or technology,— (i) supplying, services or technology— (A) from the territory of another country into the territory of India; (B) in the territory of another country to an Indian service consumer; (C) by a service supplier of another country, through commercial presence in India; (D) by a service supplier of another country, through presence of their natural persons in India; (ii) supplying, services or technology— (A) from India into the territory of any other country; (B) in India to the service consumer of any other country; (C) by a service supplier of India, through commercial presence in the territory of any other country; 1. Subs. by Act 25 of 2010, s. 2, for clause (e) (w.e.f.27-8-2010). 3 ----- (D) by a service supplier of India, through presence of Indian natural persons in the territory of any other country: Provided that “import” and “export” in relation to the goods, services and technology regarding Special Economic Zone or between two Special Economic Zones shall be governed in accordance with the provisions contained in the Special Economic Zones Act, 2005 (28 of 2005).] (f) “Importer-exporter Code Number” means the Code Number granted under section 7; (g) “licence” means a licence to import or export and includes a customs clearance permit and any other permission issued or granted under this Act; (h) “Order” means any Order made by the Central Government under section 3; and (i) “prescribed” means prescribed by rules made under this Act. 1[(j) “services” means service of any description which is made available to potential users and includes all the tradable services specified under the General Agreement on Trade in Services entered into amongst India and other countries who are party to the said Agreement: Provided that, this definition shall not apply to the domain of taxation; (k) “service supplier” means any person who supplies a service and who intends to take benefit under the foreign trade policy; (l) “specified goods or services or technology” means the goods or services or technology, the export, import, transfer, re-transfer, transit and transshipment of which is prohibited or restricted because of imposition of conditions on the grounds of their being pertinent or relevant to India as a Nuclear Weapon State, or to the national security of India, or to the furtherance of its foreign policy or its international obligations under any bilateral, multilateral or international treaty, covenant, convention or arrangement relating to weapons of mass destruction or their means of delivery to which India is a party or its agreement with a foreign country under the foreign trade policy formulated and notified under section 5 of the Act; (m) “technology” means any information (including information embodied in software), other than information in the public domain, that is capable of being used in— (i) the development, production or use of any goods or software; (ii) the development of, or the carrying out of, an industrial or commercial activity or the provision of service of any kind. _Explanation.—For the purpose of this clause—_ # (a) when technology is described wholly or partly by reference to the uses to which it (or the goods to which it relates) may be put, it shall include services which are provided or used, or which are capable of being used in the development, production or use of such technology or goods; (b) “public domain” shall have the same meaning as assigned to it in clause (i) of section 4 of the Weapons of Mass Destruction and their Delivery System (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005).] CHAPTER II POWER OF CENTRAL GOVERNMENT TO MAKE ORDER AND ANNOUNCE [2][FOREIGN TRADE POLICY] **3. Powers to make provisions relating to imports and exports.—(1) The Central Government** may, by Order published in the Official Gazette, make provision for the development and regulation of foreign trade by facilitating imports and increasing exports. 1. Ins. by Act 25 of 2010, s. 2 (w.e.f.27-8-2010). 2. Subs. by s.3, ibid., for “EXPORT AND IMPORT POLICY” (w.e.f.27-8-2010). 4 ----- (2) The Central Government may also, by Order published in the Official Gazette, make provision for prohibiting, restricting or otherwise regulating, in all cases or in specified classes of cases and subject to such exceptions, if any, as may be made by or under the Order, the [1][import or export of goods or services or technology]: 2[Provided that the provisions of this sub-section shall be applicable, in case of import or export of services or technology, only when the service or technology provider is availing benefits under the foreign trade policy or is dealing with specified services or specified technologies.] (3) All goods to which any Order under sub-section (2) applies shall be deemed to be goods the import or export of which has been prohibited under section 11 of the Customs Act, 1962 (52 of 1962) and all the provisions of that Act shall have effect accordingly. 2[(4) Without prejudice to anything contained in any other law, rule, regulation, notification or order, no permit or licence shall be necessary for import or export of any goods, nor any goods shall be prohibited for import or export except, as may be required under this Act, or rules or orders made thereunder.] **4. Continuance of existing orders.—All Orders made under the Imports and Exports (Control) Act,** 1947 (18 of 1947), and in force immediately before the commencement of this Act shall, so far as they are not inconsistent with the provisions of this Act, continue to be in force and shall be deemed to have been made under this Act. **3[5. Foreign Trade Policy.—The Central Government may, from time to time, formulate and** announce, by notification in the Official Gazette, the foreign trade policy and may also, inlike manner, amend that policy: Provided that the Central Government may direct that, in respect of the Special Economic Zones, the foreign trade policy shall apply to the goods, services and technology with such exceptions, modifications and adaptations, as may be specified by it by notification in the Official Gazette.] **6. Appointment of Director General and his functions.—(1) The Central Government may appoint** any person to be the Director General of Foreign Trade for the purposes of this Act. (2) The Director General shall advise the Central Government in the formulation of the [4][foreign trade policy] and shall be responsible for carrying out that policy. (3) The Central Government may, by Order published in the Official Gazette, direct that any power exercisable by it under this Act (other than the powers under sections 3, 5, 15,16 and 19) may also be exercised, in such cases and subject to such conditions, by the Director General or such other officer subordinate to the Director General, as may be specified in the Order. CHAPTER III IMPORTER-EXPORTER CODE NUMBER AND LICENCE **7. Importer-exporter Code Number.—No person shall make any import or export except under an** Importer-exporter Code Number granted by the Director General or the officer authorised by the Director General in this behalf, in accordance with the procedure specified in this behalf by the Director General: 5[Provided that in case of import or export of services or technology, the Importer-exporter Code Number shall be necessary only when the service or technology provider is taking benefits under the foreign trade policy or is dealing with specified services or specified technologies.] 1. Subs. by Act 25 of 2010, s. 4, for “import or export of goods” (w.e.f.27-8-2010). 2. Ins. by s. 4, ibid.(w.e.f.27-8-2010). 3. Subs. by s. 5,ibid., for section 5 (w.e.f.27-8-2010). 4. Subs. by s. 6, ibid., for “export and import policy” (w.e.f.27-8-2010). 5. Ins. by s. 7, ibid. (w.e.f.27-8-2010). 5 ----- **8. Suspension and cancellation of Importer-exporter Code Number.—[1][(1) Where—** (a) any person has contravened any of the provisions of this Act or any rules or orders made thereunder or the foreign trade policy or any other law for the time being in force relating to Central excise or customs or foreign exchange or has committed any other economic offence under any other law for the time being in force as may be specified by the Central Government by notification in the Official Gazette; or (b) the Director General or any other officer authorised by him has reason to believe that any person has made an export or import in a manner prejudicial to the trade relations of India with any foreign country or to the interests of other persons engaged in imports or exports or has brought disrepute to the credit or the goods of, or services or technology provided from, the country; or (c) any person who imports or exports specified goods or services or technology, in contravention of any provision of this Act or any rules or orders made thereunder or the foreign trade policy, the Director General or any other officer authorised by him may call for the record or any other information from that person and may, after giving to that person a notice in writing informing him of the grounds on which it is proposed to suspend or cancel the Importer-exporter Code Number and after giving him a reasonable opportunity of making a representation in writing within such reasonable time as may be specified in the notice and, if that person so desires, of being heard, suspend for a period, as may be specified in the order, or cancel the Importer-exporter Code Number granted to that person.] (2) Where any Importer-exporter Code Number granted to a person has been suspended or cancelled under sub-section (1), that person shall not be entitled to [2][import or export any goods or services or technology] except under a special licence, granted, in such manner and subject to such conditions as may be prescribed, by the Director General to that person. **9. Issue, suspension and cancellation of licence.—(1) The Central Government may levy fees,** subject to such exceptions, in respect of such person or class of persons making an application for 3[licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] of in respect of any 3[licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] granted or renewed in such manner as may be prescribed. 4[(2) The Director General or an officer authorised by him may, on an application and after making such inquiry as he may think fit, grant or renew or refuse to grant or renew a licence to import or export such class or classes of goods or services or technology as may be prescribed and, grant or renew or refuse to grant or renew a certificate, scrip or any instrument bestowing financial or fiscal benefit, after recording in writing his reasons for such refusal.] (3) A [3][licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] granted or renewed under this section shall— (a) be in such form as may be prescribed; (b) be valid for such period as may be specified therein; and (c) be subject to such terms, conditions and restrictions as may be prescribed or as specified in the 3[licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] with reference to the terms, conditions and restrictions so prescribed. (4) The Director General or the officer authorised under sub-section (2) may, subject to such conditions as may be prescribed, for good and sufficient reasons, to be recorded in writing, suspend or cancel any [3][licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] granted under this Act: 1. Subs. by Act 25 of 2010, s. 8, for sub-section (1) (w.e.f.27-8-2010). 2. Subs. by s. 8, ibid., for “import or export any goods” (w.e.f.27-8-2010). 3. Subs. by s. 9, ibid., for “licence” (w.e.f.27-8-2010). 4. Subs. by s. 9, ibid., for sub-section (2) (w.e.f.27-8-2010). 6 ----- Provided that no such suspension or cancellation shall be made except after giving the holder of the 1[licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] a reasonable opportunity of being heard. (5) An appeal against an order refusing to grant, or renew or suspending or cancelling, a [1][licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] shall lie in like manner as an appeal against an order would lie under section 15. 2[CHAPTER IIIA QUANTITATIVE RESTRICTIONS **9A. Power of Central Government to impose quantitative restrictions.—(1) If the Central** Government, after conducting such enquiry as it deems fit, is satisfied that any goods are imported into India in such increased quantities and under such conditions as to cause or threaten to cause serious injury to domestic industry, it may, by notification in the Official Gazette, impose such quantitative restrictions on the import of such goods as it may deem fit: Provided that no such quantitative restrictions shall be imposed on any goods originating from a developing country so long as the share of imports of such goods from that country does not exceed three per cent. or where such goods originate from more than one developing country, then, so long as the aggregate of the imports from all such countries taken together does not exceed nine per cent. of the total imports of such goods into India. (2) The quantitative restrictions imposed under this section shall, unless revoked earlier, cease to have effect on the expiry of four years from the date of such imposition: Provided that if the Central Government is of the opinion that the domestic industry has taken measures to adjust to such injury or threat thereof and it is necessary that the quantitative restrictions should continue to be imposed to prevent such injury or threat and to facilitate the adjustments, it may extend the said period beyond four years: Provided further that in no case the quantitative restrictions shall continue to be imposed beyond a period of ten years from the date on which such restrictions were first imposed. (3) The Central Government may, by rules provide for the manner in which goods, the import of which shall be subject to quantitative restrictions under this section, may be identified and the manner in which the causes of serious injury or causes of threat of serious injury in relation to such goods may be determined. (4) For the purposes of this section— (a) “developing country” means a country notified by the Central Government in the Official Gazette, in this regard; (b) “domestic industry” means the producers of goods (including producers of agricultural goods)— # (i) as a whole of the like goods or directly competitive goods in India; or (ii) whose collective output of the like goods or directly competitive goods in India constitutes a major share of the total production of the said goods in India; (c) “serious injury” means an injury causing significant overall impairment in the position of a domestic industry; (d) “threat of serious injury” means a clear and imminent danger of serious injury.] 1. Subs. by Act 25 of 2010, s. 9, for “licence” (w.e.f.27-8-2010). 2. Ins. by s. 10, ibid. (w.e.f.27-8-2010). 7 ----- CHAPTER IV SEARCH, SEIZURE, PENALTY AND CONFISCATION **10. Power relating to search and seizure.—[1][(1) The Central Government may, by notification in** the Official Gazette, authorise any person for the purposes of exercising such powers with respect to,— (a) entering such premises where the goods are kept, stored or processed, manufactured, traded or supplied or received for the purposes of import or export and searching, inspecting and seizing of such goods, documents, things and conveyances connected with such import and export of goods; (b) entering such premises from which the services or technology are being provided, supplied, received, consumed or utilised and searching, inspecting and seizing of such goods, documents, things and conveyances connected with such import and export of services and technology, subject to such requirements and conditions and with the approval of such officer, as may be prescribed: Provided that the provisions of clause (b) shall be applicable, in case of import or export of services or technology, only when the service or technology provider is availing benefit under the foreign trade policy or is dealing with specified services or specified technologies.] (2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches and seizures shall, so far as may be, apply to every search and seizure made under this section. **2[11. Contravention of provisions of this Act, rules, orders and foreign trade policy.—(1)** No export or import shall be made by any person except in accordance with the provisions of this Act, the rules and orders made thereunder and the foreign trade policy for the time being in force. (2) Where any person makes or abets or attempts to make any export or import in contravention of any provision of this Act or any rules or orders made thereunder or the foreign trade policy, he shall be liable to a penalty of not less than ten thousand rupees and not more than five times the value of the goods or services or technology in respect of which any contravention is made or attempted to be made, whichever is more. (3) Where any person signs or uses, or causes to be made, signed or used, any declaration, statement or document submitted to the Director General or any officer authorised by him under this Act, knowing or having reason to believe that such declaration, statement or document is forged or tampered with or false in any material particular, he shall be liable to a penalty of not less than ten thousand rupees or more than five times the value of the goods or services or technology in respect of which such declaration, statement or document had been submitted, whichever is more. (4) Where any person, on a notice to him by the Adjudicating Authority, admits any contravention, the Adjudicating Authority may, in such class or classes or cases and in such manner as may be prescribed, determine, by way of settlement, an amount to be paid by that person. (5) A penalty imposed under this Act may, if it is not paid by any person, be recovered by any one or more of the following modes, namely:— (a) the Director General may deduct or require any officer subordinate to him to deduct the amount payable under this Act from any money owing to such person which may be under the control of such officer; or (b) the Director General may require any officer of customs to deduct the amount payable under this Act from any money owing to such person which may be under the control of such officer of customs, as if the said amount is payable under the Customs Act, 1962 (52 of 1962); or (c) the Director General may require the Assistant Commissioner of Customs or Deputy Commissioner of Customs or any other officer of Customs to recover the amount so payable by detaining or selling any goods (including the goods connected with services or technology) belonging to such person which are under the control of the Assistant Commissioner of Customs or Deputy 1. Subs. by Act 25 of 2010, s. 11, for sub-section (1) (w.e.f.27-8-2010). 2. Subs. by s. 12, ibid., for section 11(w.e.f.27-8-2010). 8 ----- Commissioner or Customs or any other officer of Customs, as if the said amount is payable under the Customs Act, 1962 (52 of 1962); or (d) if the amount cannot be recovered from such person in the manner provided in clauses (a), (b) and (c),— (i) the Director General or any officer authorised by him may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the District in which such person owns any property or resides or carries on business and the said Collector on receipt of such certificate shall proceed to recover from such person the amount specified thereunder as if it were an arrear of land revenue; or (ii) the Director General or any officer authorised by him (including an officer of Customs who shall then exercise his powers under the Customs Act, 1962 (52 of 1962) ) and in accordance with the rules made in this behalf, detain any movable or immovable property belonging to or under the control of such person, and detain the same until the amount payable is paid, as if the said amount is payable under the Customs Act, 1962; and in case, any part of the said amount payable or of the cost of the distress or keeping of the property, remains unpaid for a period of thirty days next after any such distress, may cause the said property to be sold and with the proceeds of such sale, may satisfy the amount payable and costs including cost of sale remaining unpaid and shall render the surplus, if any to such person. (6) Where the terms of any bond or other instrument executed under this Act or any rules made thereunder provide that any amount due under such instrument may be recovered in the manner laid down in sub-section (5), the amount may, without prejudice to any other mode of recovery, be recovered in accordance with the provisions of that sub-section. (7) Without prejudice to the provisions contained in this section, the Importer-Exporter Code Number of any person who fails to pay any penalty imposed under this Act, may be suspended by the Adjudicating Authority till the penalty is paid or recovered, as the case may be. (8) Where any contravention of any provision of this Act or any rules or orders made thereunder or the foreign trade policy has been, is being, or is attempted to be, made, the goods (including the goods connected with services or technology) together with any package, covering or receptacle and any conveyances shall, subject to such conditions and requirement as may be prescribed, be liable to confiscation by the Adjudicating Authority. (9) The goods (including the goods connected with services or technology) or the conveyance confiscated under sub-section (8) may be released by the Adjudicating Authority, in such manner and subject to such conditions as may be prescribed, on payment by the person concerned of the redemption charges equivalent to the market value of the goods or conveyance, as the case may be.] **1[11A. Crediting sums realised by way of penalties in Consolidated Fund of India.—All sums** realised by way of penalties under this Act shall be credited to the Consolidated Fund of India. **11B. Empowering Settlement Commission for regularisation of export obligation default.—** Settlement of customs duty and interest thereon as ordered by the Settlement Commission as constituted under section 32 of the Central Excise Act, 1944 (1 of 1944), shall be deemed to be a settlement under this Act.] **12. Penalty or confiscation not to interfere with other punishments.—No penalty imposed or** confiscation made under this Act shall prevent the imposition of any other punishment to which the person affected thereby is liable under any other law for the time being in force. **13. Adjudicating Authority.—Any penalty may be imposed or any confiscation may be adjudged** under this Act by the Director General or, subject to such limits as may be specified, by such other officer as the Central Government may, by notification in the Official Gazette, authorise in this behalf. 1. Ins. by Act 25 of 2010, s. 13 (w.e.f.27-8-2010). 9 ----- **14. Giving of opportunity to the owner of the** **[1][goods (including the goods connected with** **services or technology)], etc.—No order imposing a penalty or of adjudication of confiscation shall be** made unless the owner of the [1][goods (including the goods connected with services or technology)] or conveyance, or other person concerned, has been given a notice in writing— (a) informing him of the grounds on which it is proposed to impose a penalty or to confiscate such [1][goods (including the goods connected with services or technology)] or conveyance; and (b) to make a representation in writing within such reasonable time as may be specified in the notice against the imposition of penalty or confiscation mentioned therein, and, if he so desires, of being heard in the matter. 2[CHAPTER IVA CONTROLS ON EXPORT OF SPECIFIED GOODS, SERVICES AND TECHNOLOGY **14A. Controls on export of specified goods, services and technology.—(1) In regard to controls on** export of specified goods, services and technology referred to in this Chapter, the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005) shall apply to exports, transfers, re-transfers, brought in transit, trans-shipment of, and brokering in specified goods, technology or services. (2) All terms, expressions or provisions of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005) shall apply to the specified goods, services or technology with such exceptions, modifications and adaptations as may be specified by the Central Government by notification in the Official Gazette. (3) The Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Chapter— (a) shall not apply to any goods, services or technologies, or (b) shall apply to any goods, services or technologies with such exceptions, modifications and adaptations as may be specified in the notification. **14B. Transfer controls.—(1) The Central Government may, by notification in the Official Gazette,** make rules in conformity with the provisions of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005) for, or, in connection with, the imposition of controls in relation to transfer of specified goods, services or technology. (2) No goods, services or technology notified under this Chapter shall be exported, transferred, re-transferred, brought in transit or transshipped except in accordance with the provisions of this Act, the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005) or any other relevant Act. **14C. Catch-all controls.—No person shall export any material, equipment or technology knowing** that such material, equipment or technology is intended to be used in the design or manufacture of a biological weapon, chemical weapon, nuclear weapon or other nuclear explosive device, or in their missile delivery systems. **14D. Suspension or cancellation of a licence.—The Director General or an officer authorised by** him may, by order, suspend or cancel a licence to import or export of specified goods or services or technology without giving the holder of the licence a reasonable opportunity of being heard but such person shall be given a reasonable opportunity of being heard within six months of such order and thereupon the Director General or the officer so authorised may, if necessary, by order in writing, confirm, modify or revoke such order. 1. Subs. by Act 25 of 2010, s. 14, for “goods” (w.e.f. 27-8-2010). 2. Ins. by s. 15, ibid. (w.e.f.27-8-2010). 10 ----- **14E. Offences and penalties.—(1) In case of a contravention relating to specified goods, services or** technologies, the penalty shall be in accordance with the provisions of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005). (2) Where any person contravenes or attempts to contravene or abets, any of the provision(s) of this Chapter in relation to import or export of any specified goods or services or technology, he shall, without prejudice to any penalty which may be imposed on him, be punishable with imprisonment for a term stipulated in the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005). (3) No court shall take cognizance of any offence punishable under this Chapter without the previous sanction of the Central Government or any officer authorised in this behalf by the Central Government by general or special order.] CHAPTER V APPEAL AND [1][REVIEW] **15. Appeal.—(1) Any person aggrieved by any decision or order made by the Adjudicating Authority** under this Act may prefer an appeal,— (a) where the decision or order has been made by the Director General, to the Central Government; (b) where the decision or order has been made by an officer subordinate to the Director General, to the Director General or to any officer superior to the Adjudicating Authority authorised by the Director General to hear the appeal, within a period of forty-five days from the date on which the decision or order is served on such person: Provided that the Appellate Authority may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the aforesaid period, allow such appeal to be preferred within a further period of thirty days: Provided further that in the case of an appeal against a decision or order imposing a penalty or redemption charges, no such appeal shall be entertained unless the amount of penalty or redemption charges has been deposited by the appellant: Provided also that, where the Appellate Authority is of opinion that the deposit to be made will cause undue hardship to the appellant, it may, at its discretion, dispense with such deposit either unconditionally or subject to such conditions as it may impose. (2) The Appellate Authority may, after giving to the appellant a reasonable opportunity of being heard, if he so desires, and after making such further inquiries, if any, as it may consider necessary, make such orders as it thinks fit, confirming, modifying or reversing the decision or order appealed against, or may send back the case with such directions, as it may think fit, for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary: Provided that an order enhancing or imposing a penalty or redemption charges or confiscating [2][the goods (including the goods connected with services or technology)] of a greater value shall not be made under this section unless the appellant has been given an opportunity of making a representation, and, if he so desires, of being heard in his defence. (3) The order made in appeal by the Appellate Authority shall be final. 3[16. Review.—The Central Government, in the case of any decision or order made by the Director General, or the Director General in the case of any decision or order made by any officer subordinate to him, may on its or his own motion or otherwise, call for and examine the records of any proceeding, for 1. Subs. by Act 25 of 2010, s. 16, for “REVISION” (w.e.f.27-8-2010). 2. Subs. by s. 17, ibid., for “goods” (w.e.f.27-8-2010). 3. Subs. by s. 18, ibid., for section 16 (w.e.f.27-8-2010). 11 ----- the purpose of satisfying itself or himself, as the case may be, as to the correctness, legality or propriety of such decision or order and make such orders thereon as may be deemed fit: Provided that no decision or order shall be varied under this section so as to prejudicially affect any person unless such person— (a) has, within a period of two years from the date of such decision or order, received a notice to showcause why such decision or order shall not be varied; and (b) has been given a reasonable opportunity of making representation and, if he so desires, of being heard in his defence.] **17. Powers of Adjudicating and other Authorities.—(1) Every authority making any adjudication** or hearing any appeal or exercising any powers of [1][review] under this Act shall have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of witnesses; (b) requiring the discovery and production of any document; (c) requisitioning any public record or copy thereof from any court or office; (d) receiving evidence on affidavits; and (e) issuing commissions for the examination of witnesses or documents. (2) Every authority making any adjudication or hearing any appeal or exercising any powers of 1[review] under this Act shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). (3) Every authority making any adjudication or hearing any appeal or exercising any powers of 1[review] under this Act shall have the power to make such orders of an interim nature as it may think fit and may also, for sufficient cause, order the stay of operation of any decision or order. (4) Clerical or arithmetical mistakes in any decision or order or errors arising therein from any accidental slip or omission may at any time be corrected by the authority by which the decision or order was made, either on its own motion or on the application of any of the parties: Provided that where any correction proposed to be made under this sub-section will have the effect of prejudicially affecting any person, no such correction shall be made except after giving to that person a reasonable opportunity of making a representation in the matter and no such correction shall be made after the expiry of two years from the date on which such decision or order was made. CHAPTER VI MISCELLANEOUS **18. Protection of action taken in good faith.—No order made or deemed to have been made under** this Act shall be called in question in any court, and no suit, prosecution or other legal proceeding shall lie against any person for anything in good faith done or intended to be done under this Act or any order made or deemed to have been made thereunder. **2[18A. Application of other laws not barred.—The provisions of this Act shall be in addition to,** and not in derogation of, the provisions of any other law for the time being in force.] **19. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. 1. Subs. by Act 25 of 2010, s. 19, for “Revision” (w.e.f.27-8-2010). 2. Ins. by s. 20, ibid. (w.e.f.27-8-2010). 12 ----- (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner in which and the conditions subject to which a special licence may be issued under sub-section (2) of section 8; (b) the exceptions subject to which and the person or class of persons in respect of whom fees may belevied and the manner in which a [1][licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] may be granted or renewed under sub-section (1) of section 9; 2[(c) the class or classes of goods (including the goods connected with service or technology) for which a licence, certificate, scrip or any instrument bestowing financial or fiscal benefits may be granted under sub-section (2) of section 9;] (d) the form in which and the terms, conditions and restrictions subject to which [1][licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] may be granted under sub-section (3) of section 9; (e) the conditions subject to which a [1][licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] may be suspended or cancelled under sub-section (4) of section 9; 3[(ea) the matter in which goods the import of which shall be subject to quantitative restrictions, may be identified and the manner in which the causes of serious injury or causes of threat of serious injury in relation to such goods may be determined under sub-section (3) of section 9A;] (f) the premises, [4][goods (including the goods connected with the service or technology)], documents, things and conveyances in respect of which and the requirements and conditions subject to which power of entry, search, inspection and seizure may be exercised under sub-section (1) of section10; (g) the class or classes of cases for which and the manner in which an amount, by way of settlement, may be determined under [5][sub-section (4) of section 11]; 6[(h) the requirements and conditions subject to which goods (including the goods connected with the service or technology) and conveyances shall be liable to confiscation under sub-section (8) of section 11;] 7[(i) the manner in which and the conditions subject to which goods (including the goods connected with the service or technology) and conveyances may be released on payment of redemption charges under sub-section (9) of section 11;] (j) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be, or may be, made by rules. (3) Every rule and every Order made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or the Order or both Houses agree that the rule or the Order should not be made, the rule or the Order, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or the Order. 1. Subs. by Act 25 of 2010, s. 21, for “licence” (w.e.f.27-8-2010). 2. Subs. by s. 21, ibid., for clause (c) (w.e.f.27-8-2010). 3. Ins. by s.21, ibid. (w.e.f.27-8-2010). 4. Subs. by s. 21, ibid., for “goods” (w.e.f.27-8-2010). 5. Subs. by s. 21, ibid., for “sub-section (3) of section 11” (w.e.f.27-8-2010). 6. Subs. by s. 21, ibid., for clause (h) (w.e.f.27-8-2010). 7. Subs. by s. 21, ibid., for clause (i) (w.e.f.27-8-2010). 13 ----- **20. Repeal and savings.—(1) The Imports and Exports (Control) Act, 1947 (18 of 1947) and the** Foreign Trade (Development and Regulation) Ordinance, 1992 (Ord. 11 of 1992) are hereby repealed. (2) The repeal of the Imports and Exports (Control) Act, 1947 (18 of 1947) shall, however, not affect,— (a) the previous operation of the Act so repealed or anything duly done or suffered thereunder; or (b) any right, privilege, obligation or liability acquired, accrued or incurred under the Act so repealed; or (c) any penalty, confiscation or punishment incurred in respect of any contravention under the Act so repealed; or (d) any proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, confiscation or punishment as aforesaid, and any such proceeding or remedy may be instituted, continued or enforced, and any such penalty, confiscation or punishment may be imposed or made as if that Act had not been repealed. (3) Notwithstanding the repeal of the Foreign Trade (Development and Regulation) Ordinance, 1992 (Ord. 11 of 1992), anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 14 -----
18-Aug-1992
27
The Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992
https://www.indiacode.nic.in/bitstream/123456789/1966/1/A1992-27.pdf
central
# THE SPECIAL COURT (TRIAL OF OFFENCES RELATING TO TRANSACTIONS IN SECURITIES) ACT, 1992 __________ ARRANGEMENT OF SECTIONS ___________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Appointment and functions of Custodian. 4. Contracts entered into fraudulently may be cancelled. 5. Establishment of Special Court. 5A. Distribution of cases amongst Judges of Special Court. 6. Cognizance of cases by Special Court. 7. Jurisdiction of Special Court. 8. Jurisdiction of Special Court as to joint trials. 9. Procedure and powers of Special Court. 9A. Jurisdiction, powers, authority and procedure of Special Court in civil matters. 9B. Powers of the Special Court in arbitration matters. 10. Appeal. 11. Discharge of liabilities. 11A. Power to punish for contempt. 12. Protection of action taken in good faith. 13. Act to have overriding effect. 14. Power to make rules. 15. Repeal and savings. 1 ----- # THE SPECIAL COURT (TRIAL OF OFFENCES RELATING TO TRANSACTIONS IN SECURITIES) ACT, 1992 ACT NO. 27 OF 1992 [18th August, 1992.] # An Act to provide for the establishment of a Special Court for the trial of offences relating to transactions in securities and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Special Court (Trial of Offences** Relating to Transactions in Securities) Act, 1992. (2) It shall be deemed to have come into force on the 6th day of June, 1992. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Code” means the Code of Criminal Procedure, 1973 (2 of1974); (b) “Custodian” means the Custodian appointed under sub-section(1) of section 3; (c) “securities” includes— (i) shares, scrips, stocks, bonds, debentures, debenture stock, units of the Unit Trust of India or any other mutual fund or other marketable securities of a like nature in or of any incorporated company or other body corporate; (ii) Government securities; and (iii) rights or interests in securities; (d) “Special Court” means the Special Court established under sub-section (1) of section 5. **3. Appointment and functions of Custodian.—(1) The Central Government may appoint one or** more Custodians as it may deem fit for the purposes of this Act. (2) The Custodian may, on being satisfied on information received that any person has been involved in any offence relating to transactions insecurities after the 1st day of April, 1991 and on and before the 6th June, 1992, notify the name of such person in the Official Gazette. (3) Notwithstanding anything contained in the Code and any other law for the time being in force, on and from the date of notification under sub-section (2), any property, movable or immovable, or both, belonging to any person notified under that sub-section shall stand attached simultaneously with the issue of the notification. (4) The property attached under sub-section (3) shall be dealt with by the Custodian in such manner as the Special Court may direct. (5) The Custodian may take assistance of any person while exercising his powers or for discharging his duties under this section and section 4. **4. Contracts entered into fraudulently may be cancelled.—(1) If the Custodian is satisfied, after** such inquiry as he may think fit, that any contract or agreement entered into at any time after the 1st day of April, 1991 and on and before the 6th June, 1992 in relation to any property of the person notified under sub-section (2) of section 3 has been entered into fraudulently or to defeat the provisions of this Act, he may cancel such contract or agreement and on such cancellation such property shall stand attached under this Act: Provided that no contract or agreement shall be cancelled except after giving to the parties to the contract or agreement a reasonable opportunity of being heard. (2) Any person aggrieved by a notification issued under sub-section (2) of section 3 or any cancellation made under sub-section (1) of section 4 or any other order made by the Custodian in exercise of the powers conferred on him under section 3 or 4 may file a petition objecting to the same within thirty days of the assent to the Special Court (Trial of Offences Relating to Transactions in Securities) Bill, 1992 by the President before the Special Court where such notification, cancellation or order has been 2 ----- issued before the date of assent to the Special Court (Trial of Offences Relating to Transactions in Securities)Bill, 1992 by the President and where such notification, cancellation or order has been issued on or after that date, within thirty days of the issuance of such notification, cancellation or order, as the case may be; and the Special Court after hearing the parties, may make such order as it deems fit. **5. Establishment of Special Court.—(1) The Central Government shall, by notification in the** Official Gazette, establish a Court to be called the Special Court. (2) The Special Court shall consist of [1][one or more sitting Judges] of the High Court nominated by the Chief Justice of the High Court within the local limits of whose jurisdiction the Special Court is situated, with the concurrence of the Chief Justice of India. 2[(3) When the office of 3[a Judge of the Special Court] is vacant by reason of absence or leave, the duties of the office shall be performed by such Judge of the High Court within the local limits of whose jurisdiction the Special Court is situated as the Chief Justice of that High Court may, with the concurrence of the Chief Justice of India, nominate for the purpose and the Judge so appointed shall have all the jurisdiction and powers of [3][a Judge of the Special Court] including the powers to pass final orders.] 4[5A.Distribution of cases amongst Judges of Special Court.—Where the Special Court consists of two or more Judges, the Chief Justice of the High Court within the local limits of whose jurisdiction the Special Court is situated may, from time to time, by general or special order, make provisions as to the distribution of cases amongst the Judges and specify the matters which may be dealt with by each of such Judge.] **6. Cognizance of cases by Special Court.—The Special Court shall take cognizance of or try such** cases as are instituted before it or transferred to it as hereinafter provided. **7. Jurisdiction of Special Court.—Notwithstanding anything contained in any other law, any** prosecution in respect of any offence referred to in sub-section (2) of section 3 shall be instituted only in the Special Court and any prosecution in respect of such offence pending in any court shall stand transferred to the Special Court. **8. Jurisdiction of Special Court as to joint trials.—The Special Court shall have jurisdiction to try** any person concerned in the offence referred to in sub-section (2) of section 3 either as a principal, conspirator or abettor and all other offences and accused persons as can be jointly tried therewith at one trial in accordance with the Code. **9. Procedure and powers of Special Court.—(1) The Special Court shall, in the trial of such cases,** follow the procedure prescribed by the Code for the trial of warrant cases before a magistrate. (2) Save as expressly provided in this Act, the provisions of the Code shall, in so far as they are not inconsistent with the provisions of this Act, apply to the proceedings before the Special Court and for the purposes of the said provisions of the Code, the Special Court shall be deemed to be a Court of Session and shall have all the powers of a Court of Session, and the person conducting a prosecution before the Special Court shall be deemed to be a Public Prosecutor. (3) The Special Court may pass upon any person convicted by it any sentence authorised by law for the punishment of the offence of which such person is convicted. (4) While dealing with any other matter brought before it, the Special Court may adopt such procedure as it may deem fit consistent with the principles of natural justice. 5[9A. Jurisdiction, powers, authority and procedure of Special Court in civil matters.—(1) On and from the commencement of the Special Court (Trial of Offences Relating to Transactions in Securities) Amendment Act, 1994 (24 of 1994) the Special Court shall exercise all such jurisdiction, powers and authority as were exercisable, immediately before such commencement, by any civil court in relation to any matter or claim— (a) relating to any property standing attached under sub-section(3) of section 3; 1. Subs. by Act 6 of 1997, s. 2 for “a sitting Judge”(w. e. f. 16-1-1997). 2. Ins. by Act 24 of 1994, s. 2(w. e. f. 25-1-1994). 3. Subs. by Act 6 of 1997, s. 2, for “the Judge of the Special Court” (w. e. f. 16-1-1997). 4. Ins. by s. 3, ibid. (w. e. f. 16-1-1997). 5. Ins. by Act 24 of 1994, s. 3 (w. e. f. 25-1-1994). 3 ----- (b)arising out of transactions in securities entered into after the1st day of April, 1991, and on or before the 6th day of June, 1992, in which a person notified under sub-section (2) of section 3 is involved as a party, broker, intermediary or in any other manner. (2) Every suit, claim or other legal proceeding (other than an appeal) pending before any court immediately before the commencement of the Special Court (Trial of Offences Relating to Transactions in Securities)Amendment Act, 1994 (24 of 1994), being a suit, claim or proceeding, the cause of action whereon it is based is such that it would have been, if it had arisen after such commencement, within the jurisdiction of the Special Court under sub-section (1), shall stand transferred on such commencement to the Special Court and the Special Court may, on receipt of the records of such suit, claim or other legal proceeding, proceed to deal with it, so far as may be, in the same manner as a suit, claim or legal proceeding from the stage which was reached before such transfer or from any earlier stage or de novo as the Special Court may deem fit. (3) On and from the commencement of the Special Court (Trial of Offences Relating to Transactions in Securities) Amendment Act, 1994 (24 of 1994), no court other than the Special Court shall have, or be entitled to exercise, any jurisdiction, power or authority in relation to any matter or claim referred to in sub-section (1). (4) While dealing with cases relating to any matter or claim under this section, the Special Court shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice, and subject to the other provisions of this Act and of any rules, the Special Court shall have power to regulate its own procedure. (5) Without prejudice to the other powers conferred under this Act, the Special Court shall have, for the purposes of discharging its functions under this section, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing a case for default or deciding it ex parte; (h) setting aside any order of dismissal of any case for default or any order passed by it ex parte; and (i) any other matter which may be prescribed by the Central Government under sub-section (1) of section 14. **9B. Powers of the Special Court in arbitration matters.—(1) The Special Court shall have the** jurisdiction and powers of a Court conferred under the Arbitration Act, 1940 (10 of 1940) to decide any question forming subject matter of a reference relating to any matter or claim mentioned in sub-section (1) of section 9A. (2) Every suit or other proceeding (other than an appeal) in relation to any matter or claim referred to in sub-section (1) of section 9A pending before any Court and governed by the Arbitration Act, 1940 (10 of 1940), immediately before the date of commencement of the Special Court (Trial of Offences Relating to Transactions in Securities) Amendment Act, 1994 (24 of 1994) shall stand transferred on that date to the Special Court. 4 ----- _Explanation.—For the purposes of this section, the expressions “Court” and “reference” shall have_ respectively the same meanings as defined under clauses (c)and (e)of section 2 of the Arbitration Act, 1940 (10 of 1940).] **10. Appeal.—(1) Notwithstanding anything in the Code** [1][or the Code of Civil Procedure,1908 (5 of 1908) or the Arbitration Act, 1940 (19 of1940)], an appeal shall lie from any judgment [1][,decree] sentence or order, not being interlocutory order, of the Special Court to the Supreme Court both on facts and on law. (2) Except as aforesaid, no appeal or revision shall lie to any Court from any judgment [1][,decree] sentence or order of the Special Court. (3) Every appeal under this section shall be preferred within a period of thirty days from the date of any judgment, sentence or order of the Special Court: Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the period of thirty days. **11. Discharge of liabilities.—(1) Notwithstanding anything contained in the Code and any other law** for the time being in force, the Special Court may make such order as it may deem fit directing the Custodian for the disposal of the property under attachment. (2) The following liabilities shall be paid or discharged in full, as far as may be, in the order as under:— (a) all revenues, taxes, cesses and rates due from the persons notified by the Custodian under sub-section (2) of section 3 to the Central Government or any State Government or any local authority; (b) all amounts due from the person so notified by the Custodian to any bank or financial institution or mutual fund; (c) any other liability as may be specified by the Special Court from time to time. 2[11A. Power to punish for contempt.—The Special Court shall have, and exercise, the same jurisdiction, powers and authority in respect of contempt of itself as a High Court has and may exercise and, for this purpose, the provisions of the Contempt of Courts Act, 1971 (70 of 1971), shall have effect subject to the modifications that— (a) the references therein to a High Court shall be construed as including a reference to such Special Court; (b) the references to the Advocate-General in section 15 of the said Act, shall be construed, in relation to the Special Court, as a reference to the Attorney-General or the Solicitor-General or the Additional Solicitor-General.] **12. Protection of action taken in good faith.—(1) No suit, prosecution or other legal proceeding** shall lie against the Central Government or the Custodian for anything which is in good faith done or intended to be done under this Act. (2) No suit or other legal proceeding shall lie against the Central Government or any of its officers or other employees for any damage caused or likely to be caused by anything which is in good faith done or intended to be done under this Act. **13. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law, other than this Act, or in any decree or order of any court, tribunal or other authority. 1. Ins. by Act 24 of 1994, s. 4 (w. e. f. 25-1-1994). 2. Ins. by s. 5, ibid. (w. e. f. 25-1-1994). 5 ----- **14. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **15. Repeal and savings.—(1) The Special Court (Trial of Offences Relating to Transactions in** Securities) Ordinance, 1992 (Ord. 10 of 1992) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. 6 -----
1-Sep-1992
35
The Indo-Tibetan Border Police Force Act, 1992
https://www.indiacode.nic.in/bitstream/123456789/1935/1/a1992-35.pdf
central
# THE INDO-TIBETAN BORDER POLICE FORCE ACT, 1992 _______ ARRANGENMENT OF SECTIONS _______ CHAPTER I # PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. 3. Persons subject to this Act. CHAPTER II CONSTITUTION OF THE FORCE AND CONDITIONS OR SERVICE OF THE MEMBERS OF THE FORCE 4. Constitution of the Force. 5. Control, direction, etc. 6. Enrolment. 7. Liability for service outside India. 8. Resignation and withdrawal from the post. 9. Tenure of service under the Act. 10. Termination of service by Central Government. 11. Dismissal, removal or reduction by the Director-General and by other officers. 12. Certificate of termination of service. 13. Restrictions respecting right to form association, freedom of speech, etc. 14. Remedy of aggrieved persons other than officers. 15. Remedy of aggrieved officers. CHAPTER III OFFENCES 16. Offences in relation to the enemy or terrorist and punishable with death. 17. Offences in relation to the enemy and not punishable with death. 18. Offences punishable more severely on active duty than at other times. 19. Mutiny. 20. Desertion and aiding desertion. 21. Absence without leave. 22. Striking or threatening superior officers. 23. Disobedience to superior officer. 24. Insubordination and obstruction. 25. False answers on enrolment. 26. Unbecoming conduct. 27. Certain forms of disgraceful conduct. 28. Ill-treating a subordinate. 29. Intoxication. 30. Permitting escape of person in custody. 31. Irregularity in connection with arrest or confinement. 32. Escape from custody. 33. Offences in respect of property. 34. Extortion and exaction. 35. Making away with equipment. 36. Injury to property. 1 ----- SECTIONS 37. False accusations. 38. Falsifying official documents and false declarations. 39. Signing in blank and failure to report. 40. Offences relating to Force Court. 41. False evidence. 42. Unlawful detention of pay. 43. Violation of good order and discipline. 44. Miscellaneous offences. 45. Attempt. 46. Abetment of offences that have been committed. 47. Abetment of offences punishable with death and not Committee. 48. Abetment of offences punishable with imprisonment and not committed. 49. Civil offences. 50. Civil offences not triable by a Force Court. CHAPTER IV PUNISHMENTS 51. Punishment awardable by Force Courts. 52. Alternative punishments awardable by Force Courts. 53. Combination of punishments. 54. Retention in the force of a person convicted on active duty. 55. Punishments otherwise than by Force Courts. 56. Minor punishments. 57. Limit of punishments under section 56. 58. Punishment of persons of or below the rank of Commandant by Inspectors-General and others. 59. Review of proceedings. 60. Collective fines. CHAPTER V DEDUCTIONS FROM PAY AND ALLOWANCES 61. Deductions from pay and allowances of persons subject to this Act. 62. Pay and allowances during trial. 63. Limit of certain deductions. 64. Deduction from public money due to a person. 65. Pay and allowances of prisoner of war during inquiry into his conduct. 66. Remission of deductions. 67. Provision for dependants of prisoner of war from his remitted deductions and pay and allowances. 68. Period during which a person is dedmed to be a prisoner of war. CHAPTER VI ARREST AND PROCEEDINGS BEFORE TRIAL 69. Custody of offenders. 70. Duty of commanding officer in regard to detention. 71. Interval between committal and trial. 72. Arrest by civil authorities. 73. Capture of deserters. 74. Inquiry into absence without leave. 75. Force Police Officers. 2 ----- CHAPTER VII FORCE COURTS SECTIONS 76. Kinds of Force Courts. 77. Power to convene a General Force Court. 78. Power to convene a Petty Force Court. 79. Contents of warrants issued under sections 77 and 78. 80. Composition of a General Force Court. 81. Composition of a Petty Force Court. 82. Summary Force Court. 83. Dissolution of a Force Court. 84. Power of a General Force Court. 85. Power of a Petty Force Court. 86. Power of a Summary Force Court. 87. Prohibition of second trial. 88. Period of limitation for trial. 89. Trial, etc., of offender who ceases to be subject to this Act. 90. Application of Act during term of sentence. 91. Place of trial. 92. Choice between criminal court and Force Court. 93. Power of criminal court to require delivery of offender. CHAPTER VIII PROCEDURE OF FORCE COURTS 94. Presiding officer. 95. Judge Attorneys. 96. Challenge. 97. Oaths of member, Judge Attorney and witness. 98. Voting by members. 99. General rule as to evidence. 100. Judicial notice. 101. Summoning witnesses. 102. Documents exempted from production. 103. Commissions for examination of witnesses. 104. Examination of a witness on commission. 105. Conviction for offences not charged. 106. Presumption as to signatures. 107. Enrolment paper. 108. Presumption as to certain documents. 109. Reference by accused to Government officer. 110. Evidence of previous convictions and general character. 111. Lunacy of accused. 112. Subsequent fitness of lunatic accused for trial. # 113. Transmission to Central Government of orders under section 112. 114. Release of lunatic accused. 115. Delivery of lunatic accused to relatives. 116. Order for custody and disposal of property pending trial. 117. Order for disposal of property regarding which offence is committed. 118. Powers of Force Court in relation to proceedings under this Act. 119. Tender of pardon to accomplies. 120. Trial of person not complying with conditions of pardon. 3 ----- CHAPTER IX # CONFIRMATION AND REVISION SECTIONS 121. Finding and sentence not valid unless confirmed. 122. Power to confirm finding and sentence of General Force Court. 123. Power to confirm finding and sentence of Petty Force Court. 124. Limitation of powers of confirming authority. 125. Power of confirming authority to mitigate, remit or commute sentences. 126. Confirming of findings and sentences on board a ship. 127. Revision of finding or sentence. 128. Finding and sentence of a Summary Force Court. 129. Transmission of proceedings of Summary Force Court. 130. Alteration of finding or sentence in certain cases. 131. Remedy against order, finding or sentence of Force Court. # 132. Annulment of proceedings. CHAPTER X # EXECUTION OF SENTENCES, PARDONS, REMISSIONS, ETC. 133. Form of sentence of death. 134. Commencement of sentence of imprisonment. 135. Execution of sentence of imprisonment. 136. Temporary custody of offender. 137. Execution of sentence of imprisonment in special cases. 138. Conveyance of prisoner from place to place. 139. Communication of certain orders to prison officers. 140. Execution of sentence of fine. 141. Informality or error in the order or warrant. 142. Pardon and remission. 143. Cancellation of conditional pardon, release on parole or remission. 144. Suspension of sentence of imprisonment. 145. Orders pending suspension. 146. Release on suspension. 147. Computation of period of suspension. 148. Order after suspension. 149. Reconsideration of case after suspension. 150. Fresh sentence after suspension. 151. Scope of power of suspension. 152. Effect of suspension and remission on dismissal. CHAPTER XI MISCELLANEOUS 153. Rank structure. 154. Powers and duties conferable and imposable on members of the Force. 155. Protection for acts of members of the Force. 156. Power to make rules. 157. Provisions as to existing Indo-Tibetan Border Police Force. 4 ----- # THE INDO-TIBETAN BORDER POLICE FORCE ACT, 1992 ACTNO. 35 OF 1992 [1st September, 1992.] # An Act to provide for the constitution and regulation of an armed force of the Union for ensuring the security of the borders of India and for matters connected therewith. BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Indo-Tibetan Border Police** Force Act, 1992. (2) It shall come into force on such date[1] as the Central Government may, by notification, appoint. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “active duty”, in relation to a person subject to this Act, means any duty as a member of the Force during the period in which such person is attached to, or forms part of, a unit of the Force— (i) which is engaged in operations against an enemy, or (ii) which is operating at a picket or engaged on patrol or other guard duty along the borders of India, and includes duty by such person during any period declared by the Central Government by order as a period of active duty with reference to any area in which any person or class of persons subject to this Act may be serving; (b) “battalion” means a unit of the Force constituted as a battalion by the Central Government; (c) “civil offence” means an offence which is triable by a criminal court; (d) “civil prison” means any jail or place used for the detention of any criminal prisoner under the Prisons Act, 1894 (9 of 1894), or under any other law for the time being in force; (e) “commanding officer”, used in relation to a person subject to this Act, means an officer for the time being in command ofthe unit or any separate portion of the Force to which such person belongs or is attached; (f) “criminal court” means a court of ordinary criminal justice in any part of India and includes a Court of a special Judge appointed under the Criminal Law Amendment Act, 1952 (46 of 1952); (g) “Deputy Inspector-General” and “Additional Deputy Inspector-General” mean respectively a Deputy Inspector-General and an Additional Deputy Inspector-General of the Force appointed under section 5; (h) “Director-General” and “Additional Director-General” mean respectively the DirectorGeneral and an Additional Director-General of the Force appointed under section 5; (i) “enemy” includes all armed mutineers, armed rebels, armed rioters, pirates and any person in arms against whom it is the duty of any person subject to this Act to take action; (j) “enrolled person” means an under-officer or other person enrolled under this Act; (k) “Force” means the Indo-Tibetan Border Police Force; (l) “Force Court” means a Court referred to in section 76; (m) “Force custody” means the arrest or confinement of a member of the Force according to rules; (n) “Inspector-General” means the Inspector-General of the Force appointed under section 5; 1. 30th May, 1994, vide notification No. S.O. 414(E), dated 28th May, 1994, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 5 ----- (o) “Judge Attorney-General”, “Additional Judge Attorney-General”, “Deputy Judge Attorney-General” and “Judge Attorney” mean respectively the Judge Attorney-General, an Additional Judge Attorney-General, a Deputy Judge Attorney-General and a Judge Attorney of the Force appointed in the appropriate rank by the Central Government; (p) “member of the Force” means an officer, a subordinate officer, an under-officer or other enrolled person; (q) “notification” means a notification published in the Official Gazette; (r) “offence” means any act or omission punishable under this Act and includes a civil offence; (s) “officer” means a person appointed or in pay as an officer of the Force, but does not include a subordinate officer or an under-officer; (t) “prescribed” means prescribed by rules made under this Act; (u) “rule” means a rule made under this Act; (v) “subordinate officer” means a person appointed or in pay as a Subedar Major, a Subedar or a Sub-Inspector of the Force; (w) “superior officer”, when used in relation to a person subject to this Act, means— (i) any member of the Force to whose command such person is for the time being subject in accordance with the rules; (ii) any officer of a higher rank or class or of a higher grade in the same class, and includes, when such person is not an officer, a subordinate officer or an under-officer of a higher rank, class or grade; (x) “under-officer” means a Head Constable, a Naik or a Lance Naik of the Force; (y) “unit” includes— (a) any body of officers and other members of the Force for which a separate authorised establishment exists; (b) any separate body of persons subject to this Act employed on any service and not attached to a unit as aforesaid; (c) any other separate body of persons composed wholly or partly of persons subject to this Act and specified as a unit by the Central Government; (z) all words and expressions used and not defined in this Act but defined in the Indian Penal Code (45 of 1860), the Army Act, 1950 (45 of 1950) or the National Security Guard Act, 1986 (47 of 1986), shall have the meanings respectively assigned to them in that Code or those Acts. (2) In this Act, references to any law not in force in the State of Jammu and Kashmir* shall be construed as references to the corresponding law in force in that State. **3. Persons subject to this Act.—(1) The following persons appointed (whether on deputation or in** any other manner) in the Force shall be subject to this Act, wherever they may be, namely:— (a) officers and subordinate officers; and (b) under-officers and other persons enrolled under this Act. (2) Every person subject to this Act shall remain so subject until repatriated, retired, released, discharged, removed or dismissed from the Force in accordance with the provisions of this Act and the rules. *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 6 ----- CHAPTER II CONSTITUTION OF THE FORCE AND CONDITIONS OF SERVICE OF THE MEMBERS OFTHE FORCE **4. Constitution of the Force.—(1) There shall be an armed force of the Union called the Indo-** Tibetan Border Police Force for ensuring the security of the borders of India and performing such other duties as may be entrusted to it by the Central Government. (2) Subject to the provisions of this Act, the Force shall be constituted in such manner as may be prescribed and the conditions of service of the members of the Force shall be such as may be prescribed. **5. Control, direction, etc.—(1) The general superintendence, direction and control of the Force shall** vest in, and be exercised by, the Central Government and subject thereto, and to the provisions of this Act and the rules, the command and supervision of the Force shall vest in an officer to be appointed by the Central Government as the Director-General of the Force. (2) The Director-General shall, in the discharge of his duties under this Act, be assisted by such number of Additional Directors-General, Inspectors-General, Deputy Inspectors-General, Additional Deputy Inspectors-General, Commandants and other officers as may be appointed by the Central Government. **6. Enrolment.—The persons to be enrolled to the Force, the mode of enrolment, and the procedure** for enrolment shall be such as may be prescribed. **7. Liability for service outside India.—Every member of the Force shall be liable to serve in any** part of India as well as outside India. **8. Resignation and withdrawal from the post.—No member of the Force shall be at liberty,—** (a) to resign his appointment during the term of his engagement; or (b) to withdraw himself from all or any of the duties of his appointment, except with the previous permission in writing of the prescribed authority. **9. Tenure of service under the Act.—Every person subject to this Act shall hold office during the** pleasure of the President. **10. Termination of service by Central Government.—Subject to the provisions of this Act and the** rules, the Central Government may dismiss or remove from the service any person subject to this Act. **11. Dismissal, removal or reduction by the Director-General and by other officers.—(1) The** Director-General, any Additional Director-General or Inspector-General may dismiss or remove from the service or reduce to a lower grade or rank or ranks any person subject to this Act other than an officer. (2) An officer not below the rank of Additional Deputy Inspector-General or any prescribed officer may dismiss or remove from the service any person under his command other than an officer or a subordinate officer of such rank or ranks as may be prescribed. (3) Any such officer as is mentioned in sub-section (2) may reduce to a lower grade or rank or ranks any person under his command except an officer or a subordinate officer. (4) The exercise of any power under this section shall be subject to the provisions of this Act and the rules. **12. Certificate of termination of service.—A subordinate officer, or an under-officer or other** enrolled person who is retired, discharged, released, removed or dismissed from the service shall be furnished by the officer, to whose command he is subject, with a certificate in Hindi or English language setting forth— (a) the authority terminating his service; (b) thecause for such termination; and (c) the full period of his service in the Force. 7 ----- **13. Restrictions respecting right to form association, freedom of speech, etc.—(1) No person** subject to this Act shall, without the previous sanction in writing of the Central Government or of the prescribed authority,— (a) be a member of, or be associated in any way with, any trade union, labour union, political association or with any class of trade unions, labour unions or political associations; or (b) be a member of, or be associated in any way with, any society, institution, association or organisation that is not recognised as part of the Force or is not of a purely social, recreational or religious nature; or (c) communicate with the press or publish or cause to be published any book, letter or other document except where such communication or publication is in the bona fide discharge of his duties or is of a purely literary, artistic or scientific character or is of a prescribed nature. _Explanation.—If any question arises as to whether any society, institution, association or organisation_ is of a purely social, recreational or religious nature under clause (b) of this sub-section, the decision of the Central Government thereon shall be final. (2) No person subject to this Act shall participate in, or address, any meeting or take part in any demonstration organised by anybody of persons for any political purposes or for such other purposes as may be prescribed. **14. Remedy of aggrieved persons other than officers.—(1) Any person subject to this Act other** than an officer who deems himself wronged by any superior or other officer may complain to the officer under whose command he is serving. (2) When the officer complained against is the officer to whom any complaint should, under subsection (1), be preferred, the aggrieved person may complain to such officer’s next superior officer. (3) Every officer receiving any such complaint shall make as complete an investigation into it as may be possible for giving full redress to the complainant, or when necessary, refer the complaint to a superior authority. (4) The Director-General may revise any decision made under any of the foregoing sub-sections, but, subject thereto, such decision shall be final. **15. Remedy of aggrieved officers.—Any officer who deems himself wronged by his commanding** officer or any other superior officer and who, on due application made to his commanding officer or such other superior officer, does not receive the redress to which he considers himself entitled, may complain to the Director-General or the Central Government through proper channel. CHAPTER III OFFENCES **16. Offences in relation to the enemy or terrorist and punishable with death.—Any person** subject to this Act who commits any of the following offences, that is to say,— (a) shamefully abandons or delivers up any post, place or guard, committed to his charge or which it is his duty to defend; or (b) intentionally uses any means to compel or induce any person subject to this Act or to any other law relating to military, naval, air force or any other armed force of the Union to abstain from acting against the enemy or to discourage such person from acting against the enemy; or (c) in the presence of the enemy or terrorist, shamefully casts away his arms, ammunition, tools or equipment or misbehaves in such manner as to show cowardice; or (d) treacherously holds correspondence with, or communicates intelligence to, the enemy, terrorist or any person in arms against the Union; or (e) directly or indirectly assists the enemy or terrorist with money, arms ammunition, stores or supplies or in any other manner whatsoever; or 8 ----- (f) in time of active operation against the enemy or terrorist, intentionally occasions a false alarm in action, camp, quarters or spreads or causes to be spread reports calculated to create alarm or despondency; or (g) in time of action leaves his commanding officer or other superior officer or his post, guard, picket, patrol or party without being regularly relieved or without leave; or (h) having been captured by the enemy or made a prisoner of war, voluntarily serves with or aids the enemy; or (i) knowingly harbours or protects an enemy, not being a prisoner; or (j) being a sentry in time of active operation against the enemy or alarm, sleeps upon his post or is intoxicated; or (k) knowingly does any act calculated to imperil the success of the Force or the military, naval or air force of India or any forces co-operating therewith or any part of such forces, shall, on conviction by a Force Court, be liable to suffer death or such less punishment as is in this Act mentioned. **17. Offences in relation to the enemy and not punishable with death.—Any person subject to this** Act who commits any of the following offences, that is to say,— (a) is taken prisoner or captured by the enemy, by want of due precaution or through disobedience of orders, or wilful neglect of duty, or having been taken prisoner or so captured fails to rejoin his service when able to do so; or (b) without due authority holds correspondence with, or communicates intelligence to, the enemy or any person in league with the enemy or having come by the knowledge of any such correspondence or communication, wilfully omits to discover it immediately to his commanding officer or other superior officer, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned. **18. Offences punishable more severely on active duty than at other times.—Any person subject to** this Act who commits any of the following offences, that is to say,— (a) forces a safeguard, or forces or uses criminal force to a sentry; or (b) breaks into any house or other place in search of plunder; or (c) being a sentry sleeps upon his post, or is intoxicated; or (d) without orders from his superior officer leaves his guard, picket, patrol or post; or (e) intentionally or through neglect occasions a false alarm in camp or quarters, or spreads or causes to be spread reports calculated to create unnecessary alarm or despondency; or (f) makes known the parole, watchward or countersign to any person not entitled to receive it; or knowingly gives a parole, watchward or a countersign different from what he received, shall, on conviction by a Force Court,— (i) if he commits any such offence when on active duty, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (ii) if he commits any such offence when not on active duty, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **19. Mutiny.—Any person subject to this Act who commits any of the following offences, that is to** say,— (a) begins, incites, causes or conspires with any other person to cause any mutiny in the Force or in the military, naval or airforce of India or any forces co-operating therewith; or (b) joins in any such mutiny; or 9 ----- (c) being present at any such mutiny, does not use his utmost endeavours to suppress the same; or (d) knowing or having reason to believe in the existence of any such mutiny, or of any intention to mutiny or of any such conspiracy, does not, without delay, give information thereof to his commanding officer or other superior officer; or (e) endeavours to seduce any person in the Force or in the military, naval or air force of India or any forces co-operating therewith from his duty or allegiance to the Union, shall, on conviction by a Force Court, be liable to suffer death or suchless punishment as is in this Act mentioned. **20. Desertion and aiding desertion.—(1) Any person subject to this Act who deserts or attempts to** desert the service shall, on conviction by a Force Court,— (a) if he commits the offence when on active duty or when under orders for active duty, be liable to suffer death or such less punishment as is in this Act mentioned; and (b) if he commits the offence under any other circumstances, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. (2) Any person subject to this Act who knowingly harbours any such deserter shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. (3) Any person subject to this Act who, being cognizant of any desertion or attempt at desertion of a person subject to this Act, does not forthwith give notice to his own or some other superior officer, or take any steps in his power to cause such person to be apprehended, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to two years or such less punishment as is in this Act mentioned. (4) For the purposes of this Act, a person deserts,— (a) if he absents from his unit or the place of duty at any time with the intention of not reporting back to such unit or place, or who, at any time and under any circumstances when absent from his unit or place of duty, does any act which shows that he has an intention of not reporting to such unit or place of duty; (b) if he absents himself without leave with intent to avoid any active duty. **21. Absence without leave.—Any person subject to this Act who commits any of the following** offences, that is to say,— (a) absents himself without leave; or (b) without sufficient cause overstays leave granted to him; or (c) being on leave of absence and having received information from the appropriate authority that any battalion or part thereof or any other unit of the Force, to which he belongs, has been ordered on active duty, fails, without sufficient cause, to rejoin without delay; or (d) without sufficient cause fails to appear at the time fixed at the parade or place appointed for exercise or duty; or (e) when on parade, or on the line of march, without sufficient cause or without leave from his superior officer, quits the parade or line of march; or (f) when in camp or elsewhere, is found beyond any limits fixed, or in any place prohibited, by any general, local or other order, without a pass or written leave from his superior officer; or (g) without leave from his superior officer or without due cause, absents himself from any school or training institution when duly ordered to attend there, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. 10 ----- **22. Striking or threatening superior officers.—Any person subject to this Act who commits any of** the following offences, that is to say,— (a) uses criminal force to or assaults his superior officer; or (b) uses threatening language to such officer; or (c) uses insubordinate language to such officer, shall, on conviction by a Force Court,— (i) if such officer is at the time in the execution of his office or, if the offence is committed on active duty, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (ii) in other cases, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned: Provided that in the case of an offence specified in clause (c) the imprisonment shall not exceed five years. **23. Disobedience to superior officer.—(1) Any person subject to this Act who disobeys in such** manner as to show a wilful defiance of authority any lawful command given personally by his superior officer in the execution of his office whether the same is given orally, or in writing or by signal or otherwise, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned. (2) Any person subject to this Act who disobeys any lawful command given by his superior officer shall, on conviction by a Force Court,— (a) if he commits such offence when on active duty, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (b) if he commits such offence when not on active duty, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **24. Insubordination and obstruction.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) being concerned in any quarrel, affray or disorder, refuses to obey any officer, though of inferior rank, who orders him into arrest, or uses criminal force to, or assaults, any such officer; or (b) uses criminal force to, or assaults, any person, whether subject to this Act or not, in whose custody he is lawfully placed, and whether he is or is not his superior officer; or (c) resists an escort whose duty it is to apprehend him or to have him in charge; or (d) breaks out of barracks, camp or quarters; or (e) neglects to obey any general, local or other order; or (f) impedes the Force Police referred to in section 75 or any person lawfully acting on his behalf, or when called upon, refuses to assist in the execution of his duty a Force Police or any person lawfully acting on his behalf, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend, in the case of the offences specified in clauses (d) and (e), to two years, and in the case of the offences specified in the other clauses, to ten years, or in either case such less punishment as is in this Act mentioned. **25. False answers on enrolment.—Any person having become subject to this Act who is discovered** to have made at the time of enrolment a wilfully false answer to any question set forth in the prescribed form of enrolment which has been put to him by the enrolling officer before whom he appears for the purpose of being enrolled, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. 11 ----- **26. Unbecoming conduct.—Any officer or subordinate officer who behaves in a manner** unbecoming of his position and the character expected of him shall, on conviction by a Force Court, be liable to be dismissed or to suffer such less punishment as is in this Act mentioned. **27. Certain forms of disgraceful conduct.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) is guilty of any disgraceful conduct of a cruel, indecent or unnatural kind; or (b) malingers or feigns or produces disease or infirmity in himself or intentionally delays his cure or aggravates his disease or infirmity; or (c) with intent to render himself or any other person unfit for service, voluntarily causes hurt to himself or that person, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **28. Ill-treating a subordinate.—Any officer, subordinate officer or under-officer, who uses criminal** force to, or otherwise ill-treats, any person subject to this Act, being his subordinate in rank or position, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **29. Intoxication.—(1) Any person subject to this Act who is found in a state of intoxication, whether** on duty or not, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to six months or such less punishment as is in this Act mentioned. (2) For the purposes of sub-section (1), a person shall be deemed to be in a state of intoxication if, owing to the influence of alcohol or any drug whether alone, or any combination with any other substance, he is unfit to be entrusted with his duty or with any duty which he may be called upon to perform or, behaves in a disorderly manner or in a manner likely to bring discredit to the Force. **30. Permitting escape of person in custody.—Any person subject to this Act who commits any of** the following offences, that is to say,— (a) when in command of a guard, picket, patrol, detachment or post, releases without proper authority, whether wilfully or without reasonable excuse, any person committed to his charge, or refuses to receive any prisoner or person so committed; or (b) wilfully or without reasonable excuse allows to escape any person who is committed to his charge, or whom it is his duty to keep or guard, shall, on conviction by a Force Court, be liable, if he has acted wilfully, to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned; and if he has not acted wilfully, to suffer imprisonment for a term which may extend to two years or such less punishment as is in this Act mentioned. **31. Irregularity in connection with arrest or confinement.—Any person subject to this Act who** commits any of the following offences, that is to say,— (a) unnecessarily detains a person in arrest or confinement without bringing him to trial, or fails to bring his case before the proper authority for investigation; or (b) having committed a person to Force custody fails without reasonable cause to deliver at the time of such committal, or as soon as practicable, and in any case within forty-eight hours thereafter, to the officer or other person into whose custody the person arrested is committed, an account in writing signed by himself of the offence with which the person so committed is charged, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to one year or such less punishment as is in this Act mentioned. **32. Escape from custody.—Any person subject to this Act who, being in lawful custody, escapes or** attempts to escape, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. 12 ----- **33. Offences in respect of property.—Any person subject to this Act who commits any of the following** offences, that is to say,— (a) commits theft of any property belonging to the Government, or to any Force mess, band or institution, or to any person subject to this Act; or (b) dishonestly misappropriates or converts to his own use any such property; or (c) commits criminal breach of trust in respect of any such property; or (d) dishonestly receives or retains any such property in respect of which any of the offences under clauses (a), (b) and (c) has been committed, knowing or having reason to believe the commission of such offence; or (e) wilfully destroys or injures any property of the Government entrusted to him; or (f) does any other thing with intent to defraud, or to cause wrongful gain to one person or wrongful loss to another person, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned. **34. Extortion and exaction.—Any person subject to this Act who commits any of the following** offences, that is to say,— (a) commits extortion; or (b) without proper authority exacts from any person money, provisions or service, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extent to ten years or such less punishment as in this Act mentioned. **35. Making away with equipment.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) makes away with, or is concerned in making away with, any arms, ammunition, equipment, instruments, tools, clothing or any other thing being the property of the Government issued to him for his use or entrusted to him; or (b) loses by neglect anything mentioned in clause (a); or (c) sells, pawns, destroys or defaces any medal or decoration granted to him, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend, in the case of the offences specified in clause (a), to ten years, and in the case of the offences specified in the other clauses, to five years, or in either case such less punishment as is in this Act mentioned. **36. Injury to property.—Any person subject to this Act who commits any of the following offences,** that is to say,— (a) destroys or injures any property mentioned in clause (a) of section 35, or any property belonging to any Force mess, band or institution, or to any person subject to this Act; or (b) commits any act which causes damage to, or destruction of, any property of the Government by fire; or (c) kills, injures, makes away with, ill-teats or loses any, animal entrusted to him, shall, on conviction by a Force Court, be liable, if he has acted wilfully, to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned; and if he has acted without reasonable excuse, to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. 13 ----- **37. False accusations.—Any person subject to this Act who commits any of the following offences,** that is to say,— (a) makes a false accusation against any person subject to this Act, knowing or having reason to believe such accusation to be false; or (b) in making a complaint against any person subject to this Act makes any statement affecting the character of such person, knowing or having reason to believe such statement to be false, or knowingly and wilfully suppresses any material facts, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **38. Falsifying official documents and false declarations.—Any person subject to this Act who** commits any of the following offences, that is to say,— (a) in any report, return, list, certificate, book or other document made or signed by him, or of the contents of which it is his duty to ascertain the accuracy, knowingly makes, or is privy to the making of, any false or fraudulent statement; or (b) in any document of the description mentioned in clause (a) knowingly makes, or is privy to the making of, any omission, with intent to defraud; or (c) knowingly and with intent to injure any person, or knowingly and with intent to defraud, suppresses, defaces, alters or makes away with any document which it is his duty to preserve or produce; or (d) where it is his official duty to make a declaration respecting any matter, knowingly makes a false declaration; or (e) obtains for himself, or for any other person, any pension, allowance or other advantage or privilege by a statement which is false, and which he either knows or believes to be false or does not believe to be true, or by making or using a false entry in any book or record, or by making any document containing a false statement, or by omitting to make a true entry or document containing a true statement, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned. **39. Signing in blank and failure to report.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) when signing any document relating to pay, arms, ammunition, equipment, clothing, supplies or stores, or any property of the Government fraudulently leaves in blank any material part for which his signature is a voucher; or (b) refuses or by culpable neglect omits to make or send a report or return which it is his duty to make or send, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **40. Offences relating to Force Court.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) being duly summoned or ordered to attend as a witness before a Force Court, wilfully or without reasonable excuse, makes default in attending; or (b) refuses to take an oath or make an affirmation legally required by a Force Court to be taken or made; or (c) refuses to produce or deliver any document in his power or control legally required by a Force Court to be produced or delivered by him; or (d) refuses, when a witness, to answer any question which he is by law bound to answer; or 14 ----- (e) is guilty of contempt of the Force Court by using insulting or threatening language, or by causing any interruption or disturbance in the proceedings of such Court, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **41. False evidence.—Any person subject to this Act who, having been duly sworn or affirmed before** any Force Court or other court competent under this Act to administer an oath or affirmation, makes any statement which is false, and which he either knows or believes to be false or does not believe to be true, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **42. Unlawful detention of pay.—Any officer, subordinate officer or under-officer who, having** received the pay of a person subject to this Act unlawfully detains or refuses to pay the same when due, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **43. Violation of good order and discipline.—Any person subject to this Act who is guilty of any act** or omission which, though not specified in this Act, is prejudicial to good order and discipline of the Force shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **44. Miscellaneous offences.—Any person subject to this Act who commits any of the following** offences, that is to say,— (a) being in command at any post or on the march, and receiving a complaint that any one under his command has beaten or otherwise maltreated or oppressed any person, or has disturbed any fair or market, or committed any riot or trespass, fails to have due reparation made to the injured person or to report the case to the proper authority; or (b) by defiling any place of worship, or otherwise, intentionally insults the religion, or wounds the religious feelings of any person; or (c) attempts to commit suicide, and in such attempt does any act towards the commission of such offence; or (d) being below the rank of subordinate officer, when off duty, appears without proper authority, in or about camp, or in or about, or when going to, or returning from, any town or bazar, carrying a rifle, sword or other offensive weapon; or (e) directly or indirectly accepts or obtains, or agrees to accept, or attempts to obtain, for himself or for any other person, any gratification as a motive or reward for procuring the enrolment of any person, or leave of absence, promotion or any other advantage or indulgence for any person in the service; or (f) commits any offence against the property or person of any inhabitant of, or resident in, the country in which he is serving, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **45. Attempt.—Any person subject to this Act who attempts to commit any of the offences specified** in sections 16 to 44 (both inclusive) and in such attempt does any act towards the commission of the offence shall, on conviction by a Force Court, where no express provision is made by this Act for the punishment of such attempt, be liable,— (a) if the offence attempted to be committed is punishable with death, to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (b) if the offence attempted to be committed is punishable with imprisonment, to suffer imprisonment for a term which may extend to one-half of the longest term provided for that offence or such less punishment as is in this Act mentioned. 15 ----- **46. Abetment of offences that have been committed.—Any person subject to this Act who abets the** commission of any of the offences specified in sections 16 to 44 (both inclusive) shall, on conviction by a Force Court, if the act abetted is committed in consequence of the abetment and no express provision is made by this Act for the punishment of such abetment, be liable to suffer the punishment provided for that offence or such less punishment as is in this Act mentioned. **47. Abetment of offences punishable with death and not Committee.—Any person subject to this** Act who abets the commission of any of the offences punishable with death under sections 16, 19 and sub-section (1) of section 20 shall, on conviction by a Force Court, if that offence be not committed in consequence of the abetment, and no express provision is made by this Act for the punishment of such abetment, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned. **48. Abetment of offences punishable with imprisonment and not committed.—Any person** subject to this Act who abets the commission of any of the offences specified in sections 16 to 44 (both inclusive) and punishable with imprisonment shall, on conviction by a Force Court, if that offence be not committed in consequence of the abetment, and no express provision is made by this Act for the punishment of such abetment, be liable to suffer imprisonment for a term which may extend to onehalf of the longest term provided for that offence or such less punishment as is in this Act mentioned. **49. Civil offences.—Subject to the provisions of section 50, any person subject to this Act who at any** place in, or beyond, India commits any civil offence shall be deemed to be guilty of an offence against this Act and, if charged therewith under this section shall be liable to be tried by a Force Court and, on conviction, be punishable as follows, that is to say,— (a) if the offence is one which would be punishable under any law in force in India with death, he shall be liable to suffer any punishment, assigned for the offence, by the aforesaid law and such less punishment as is in this Act mentioned; and (b) in any other case, he shall be liable to suffer any punishment, assigned for the offence by the law in force in India, or imprisonment for a term which may extend to seven years, or such less punishment as is in this Act mentioned. **50. Civil offences not triable by a Force Court.—A person subject to this Act who commits an** offence of murder or culpable homicide not amounting to murder against, or of rape in relation to, a person not subject to this Act shall not be deemed to be guilty of an offence against this Act and shall not be tried by a Force Court, unless he commits any of the said offences— (a) while on active duty; or (b)at any place outside India; or (c) at any place specified by the Central Government by notification, in this behalf. CHAPTER IV PUNISHMENTS **51. Punishment awardable by Force Courts.—(1) Punishments may be inflicted in respect of** offences committed by persons subject to this Act and convicted by Force Courts according to the scale following, that is to say,— (a) death; (b) imprisonment which may be for the term of life or any other lesser term but excluding imprisonment for a term not exceeding three months in Force custody; (c) dismissal or removal from the service; (d) compulsory retirement from the service; (e) imprisonment for a term not exceeding three months in Force custody; 16 ----- (f) reduction to the ranks or to a lower rank or grade or a place in the list of their rank in the case of an under-officer; (g) reduction to next lower rank in case of an officer or subordinate officer: Provided that no officer shall be reduced to a rank lower than the one to which he was initially appointed; (h) forfeiture of seniority of rank and forfeiture of all or any part of the service for the purpose of promotion; (i) forfeiture of service for the purpose of increased pay or pension; (j) fine, in respect of civil offences; (k) severe reprimand or reprimand except in the case of persons below the rank of an under-officer; (l) forfeiture of pay and allowances for a period not exceeding three months for an offence committed on active duty; (m) forfeiture in the case of person sentenced to dismissal from the service of all arrears of pay and allowances and other public money due to him at the time of such dismissal; (n) stoppage of pay and allowances until any proved loss or damage occasioned by the offence for which he is convicted is made good. (2) Each of the punishments specified in sub-section (1) shall be deemed to be inferior in degree to every punishment preceding it in the above scale. **52. Alternative punishments awardable by Force Courts.—Subject to the provisions of this Act, a** Force Court may, on convicting a person subject to this Act of any of the offences specified in sections 16 to 48 (both inclusive) award either the particular punishment with which the offence is stated in the said sections to be punishable or, in lieu thereof, any one of the punishments lower in the scale set out in section 51 regard being had to the nature and degree of the offence. **53. Combination of punishments.—A Force Court may award in addition to, or without, any other** punishment, the punishment specified in clause (c) of sub-section (1) of section 51, or any one or more of the punishments specified in clauses (f) to (n) (both inclusive) of that sub-section. **54. Retention in the force of a person convicted on active duty.—When on active duty an enrolled** person has been sentenced by a Force Court to imprisonment whether combined with dismissal or not, the prescribed officer may direct that such person may be retained to serve in the ranks, and such service shall be reckoned as part of his term of imprisonment. **55. Punishments otherwise than by Force Courts.—Punishments may also be inflicted in respect** of offences committed by persons subject to this Act without the intervention of a Force Court in the manner stated in sections 56, 58 and 59. **56. Minor punishments.—(1) Subject to the provisions of section 57, a commanding officer of and** above the rank of Commandant may, in the prescribed manner, proceed against a person subject to this Act, other than an officer or a subordinate officer, who is charged with an offence under this Act and award such person, to the extent prescribed, one or more of the following punishments, that is to say,— (a) imprisonment in Force custody up to twenty-eight days; (b) detention up to twenty-eight days; (c) confinement to the lines up to twenty-eight days; (d) extra guards or duties; (e) deprivation of any special position or special emoluments or any acting rank; (f)severe reprimand or reprimand; 17 ----- (g) fine up to fourteen days’ pay in any one month; (h) deductions from his pay and allowances of any sum required to make good any loss or damage occasioned by the offence for which he is punished. (2) If any unit, training centre or other establishment of the Force is being temporarily commanded by an officer of the rank of Second-in-Command or Deputy Commandant, such officer shall have full powers of a commanding officer specified in sub-section (1). (3) Subject to the provisions of section 57, a Deputy Commandant or an Assistant Commandant, commanding a company or a detachment or an outpost, shall have the power to proceed against a person subject to this Act, other than an officer or a subordinate officer, who is charged with an offence under this Act and award such person to the extent prescribed, one or more of the punishments specified in clauses (a) to (d) and (h) of sub-section (1) provided that the maximum limit of punishment awarded under each of the clauses (a), (b) and (c) shall not exceed fourteen days. (4) A subordinate officer not below the rank of Sub-Inspector who is commanding a detachment or an outpost shall have the powers to proceed against a person subject to this Act, other than a subordinate officer or an under-officer, who is charged with an offence under this Act and award such person to the extent prescribed, one or more of the punishments specified under clauses (c) and (d) of sub-section (1) provided that the maximum limit of punishment awarded under clause (c) shall not exceed fourteen days. **57. Limit of punishments under section 56.—(1) In the case of an award of two or more of the** punishments specified in clauses (a), (b), (c) and (d) of sub-section (1) of section 56, the punishments specified in clause (c) or clause (d) shall take effect only at the end of the punishment specified in clause (a) or clause (b). (2) When two or more of the punishments specified in clauses (a), (b) and (c) of sub-section (1) of section 56 are awarded to a person conjointly, or when already undergoing one or more of the said punishments, the whole extent of the punishments shall not exceed in the aggregate forty-two days. (3) The punishments specified in clauses (a), (b) and (c) of sub-section (1) of section 56 shall not be awarded to any person who is of the rank of an under-officer or was, at the time of committing the offence for which he is punished, of such rank. (4) The punishment specified in clause (f) of sub-section (1) of section 56 shall not be awarded to any person below the rank of an under-officer. **58. Punishment of persons of or below the rank of Commandant by Inspectors-General and** **others.—(1) An officer not below the rank of Inspector-General may, in the prescribed manner, proceed** against an officer of or below the rank of Commandant who is charged with an offence under this Act and award one or more of the following punishments, that is to say,— (a) forfeiture of seniority, or in the case of any of them whose promotion depends upon length of service, forfeiture of service for the purpose of promotion for a period not exceeding one year, but subject to the right of the accused previous to the award to elect to be tried by a Force Court; (b)severe reprimand or reprimand; (c) deduction from pay and allowances of any sum required to make good any proved loss or damage occasioned by the offence of which he is convicted. (2) An officer not below the rank of Additional Deputy Inspector-General may, in the prescribed manner, proceed against a person of or below the rank of Subedar-Major who is charged with an offence under this Act and award one or more of the following punishments, that is to say,— (a) forfeiture of seniority, or in the case of any of them whose promotion depends upon the length of service, forfeiture of service for the purpose of promotion for a period not exceeding one year, but subject to the right of the accused previous to the award to elect to be tried by a Force Court; (b)severe reprimand or reprimand; 18 ----- (c) deduction from pay and allowances of any sum required to make good any proved loss or damage occasioned by the offence of which he is convicted. (3) An officer not below the rank of Commandant may, in the prescribed manner, proceed against a person of or below the rank of Subedar-Major who is charged with an offence under this Act and award any one or both of the following punishments, that is to say,— (a)severe reprimand or reprimand; (b) deduction from pay and allowances of any sum required to make good any proved loss or damage occasioned by the offence of which he is convicted. **59. Review of proceedings.—(1) In every case in which punishment has been awarded under section** 58, certified true copies of the proceedings shall be forwarded, in the prescribed manner, by the officer awarding the punishment to the prescribed superior authority who may, if the punishment awarded appears to him to be illegal, unjust or excessive, cancel, vary or remit the punishment and make such other direction as may be appropriate in the circumstances of the case. (2) For the purpose of sub-section (1), a “superior authority” means,— (a) any officer superior in command to such officer who has awarded the punishment; (b) in the case of punishment awarded by Director-General, the Central Government. **60. Collective fines.—(1) Whenever any weapon or part of a weapon, or ammunition, forming part of** the equipment of a unit, is lost or stolen, a commanding officer not below the rank of the Commandant of that unit may, after making such enquiry as he thinks fit and subject to the rules, impose a collective fine upon the subordinate officers, under-officers and men of such unit, or upon so many of them as, in his judgment, should be held responsible for such loss or theft. (2) Such fine shall be assessed as a percentage of the pay of the individuals on whom it falls. CHAPTER V DEDUCTIONS FROM PAY AND ALLOWANCES **61. Deductions from pay and allowances of persons subject to this Act.—(1) The following** deductions may be made from the pay and allowances of an officer, that is to say,— (a) all pay and allowances due to an officer for every day he absents himself without leave, unless a satisfactory explanation has been given to, and accepted by, the Inspector-General under whom he is for the time being serving; (b) all pay and allowances for every day while he is in custody on a charge for an offence for which he is afterwards convicted by a criminal court or Force Court or by an officer exercising authority under section 58; (c) any sum required to make good the pay of any person subject to this Act which he has unlawfully retained or unlawfully refused to pay; (d) any sum required to make good such compensation for any expenses, loss, damage or destruction occasioned by the commission of an offence as may be determined by the Force Court by which he is convicted of such offence or by an officer exercising authority under section 58; (e) all pay and allowances ordered by Force Court; (f) any sum required to be paid as fine awarded by a criminal court or a Force Court; (g) any sum required to make good any loss, damage or destruction of public or Force property which, after due investigation, appears to the Inspector-General under whom the officer is for the time being serving, to have been occasioned by the wrongful act or negligence on the part of the officer; (h) all pay and allowances forfeited by order of the Central Government if the officer is found by a court of inquiry constituted by the Director-General in this behalf, to have deserted to the enemy, or while in enemy hands, to have served with, or under the orders of, the enemy, or in any manner to 19 ----- have aided the enemy, or to have allowed himself to be taken prisoner by the enemy through want of due precaution or through disobedience of orders or wilful neglect of duty, or having been taken prisoner by the enemy, to have failed to rejoin his service when it was possible to do so; (i) any sum required by order of the Central Government to be paid for the maintenance of his wife or his legitimate or illegitimate child or step child towards the cost of any relief given by the said Government to the said wife or child. (2) Subject to the provisions of section 63, the following deductions may be made from the pay and allowances of a person subject to this Act, other than an officer, that is to say,— (a) all pay and allowances for every day of absence either on desertion or without leave, or as a prisoner of war unless a satisfactory explanation has been given and accepted by his commanding officer and for every day of imprisonment awarded by a criminal court, Force Court or an officer exercising authority under section 56; (b) all pay and allowances for every day while he is in custody on a charge for an offence of which he is afterwards convicted by a criminal court or Force Court or on a charge of absence without leave for which he is afterwards awarded imprisonment by an officer exercising authority under section 56; (c) all pay and allowances for every day on which he is in hospital on account of sickness certified by the medical officer attending on him to have been caused by an offence under this Act committed by him; (d) for every day on which he is in hospital on account of sickness certified by the medical officer attending on him to have been caused by his own misconduct or imprudence, such sum as may be specified by the order of the Director-General; (e) all pay and allowances ordered by Force Court or by an officer exercising authority under any of the sections 56 and 58 to be forfeited or stopped; (f) all pay and allowances for every day between his being recovered from the enemy and his dismissal from the service in consequence of his conduct when being taken prisoner by, or while in the hands of the enemy; (g) any sum required to make good such compensation for any expenses, loss, damage or destruction caused by him to the Central Government or to any building or property or any private fund of the Force as may be awarded by his commanding officer; (h) any sum required to pay a fine awarded by a criminal court, Force Court exercising jurisdiction under section 49 or an officer exercising authority under any of the sections 56 and 60; (i) any sum required by order of the Central Government or any prescribed officer to be paid for the maintenance of his wife, or his legitimate child or illegitimate child or step child or towards the cost of any relief given by the said Government to the said wife or child. (3) For computation of time of absence or custody under this section,— (a) no person shall be treated as absent or in custody for a day unless the absence or custody has lasted, whether wholly in one day, or partly in one day and partly in another for six consecutive hours or upwards; (b) any absence or custody for less than a day may be reckoned as absence or custody for a day if such absence or custody prevented the absentee from fulfilling any duty as member of the Force which was thereby thrown upon some other person; (c) absence or custody for twelve consecutive hours or upwards may be reckoned as absence or custody for the whole of each day during any portion of which the person was absent or in custody; (d) a period of absence, or imprisonment, which commences before, and ends after, midnight may be reckoned as a day. 20 ----- **62. Pay and allowances during trial.—In the case of any person subject to this Act who is in** custody or under suspension from duty on a charge for an offence, the prescribed officer may direct that the whole or any part of the pay and allowances of such person shall be withheld, pending the result of his trial on the charge against him, in order to give effect to the provisions of clause (b) of sub-sections (1) and (2) of section 61. **63. Limit of certain deductions.—The total deductions from the pay and allowances of a person** made under clauses (e) and (g) to (i) of sub-section (2) of section 61 shall not, except where he is sentenced to dismissal or removal, exceed in any one month one-half of his pay and allowances for that month. **64. Deduction from public money due to a person.—Any sum authorised by this Act to be** deducted from the pay and allowances of any person may, without prejudice to any other mode of recovering the same, be deducted from any public money due to him other than a pension. **65. Pay and allowances of prisoner of war during inquiry into his conduct.—Where the conduct** of any person subject to this Act when being taken prisoner by, or while in the hands of, the enemy, is to be inquired into under this Act or any other law, the Director-General or any officer authorised by him may order that the whole or any part of the pay and allowances of such person shall be withheld pending the result of such enquiry. **66. Remission of deductions.—Any deduction from pay and allowances authorised by this Act may** be remitted in such manner and to such extent, and by such authority, as may from time to time be prescribed. **67. Provision for dependents of prisoner of war from his remitted deductions and pay and** **allowances.—(1) In the case of all persons subject to this Act, being prisoners of war, whose pay and** allowances have been forfeited under clause (h) of sub-section (1) or clause (a) of sub-section (2) of section 61 but in respect of whom a remission has been made under section 66, it shall be lawful for proper provisions to be made by the Central Government or by the Director-General when so authorised by the Central Government out of such pay and allowances for any dependants of such persons and any such remission shall in that case be deemed to apply only to the balance thereafter remaining of such pay and allowances. (2) It shall be lawful for proper provision to be made by the Central Government or by the DirectorGeneral when so authorised by the Central Government for any dependants of any person subject to this Act who is a prisoner of war, or is missing, out of his pay and allowances. **68. Period during which a person is deemed to be a prisoner of war.—For the purposes of section** 67, a person shall be deemed to continue to be a prisoner of war until the conclusion of any inquiry into his conduct such as is referred to in section 65 and if he is dismissed from the service in consequence of such conduct, until the date of such dismissal. CHAPTER VI ARREST AND PROCEEDINGS BEFORE TRIAL **69. Custody of offenders.—(1) Any person subject to this Act who is charged with an offence may** be taken into Force custody under the order of any superior officer. (2) Notwithstanding anything contained in sub-section (1), an officer may order into Force custody any other officer, though such other officer may be of a higher rank, engaged in a quarrel, affray or disorder. **70. Duty of commanding officer in regard to detention.—(1) It shall be the duty of every** commanding officer to take care that a person under his command when charged with an offence is not detained in custody for more than forty-eight hours after the committal of such person into custody is reported to him, without the charge being investigated, unless investigation within that period seems to him to be impracticable having regard to the public service. 21 ----- (2) The case of every person being detained in custody beyond a period of forty-eight hours, and the reasons therefor, shall be reported by the commanding officer to the next higher officer or such other officer to whom an application may be made to convene a Force Court for the trial of the person charged. (3) In reckoning the period of forty-eight hours specified in sub-section (1), Sundays and other public holidays shall be excluded. (4) Subject to the provisions of this Act, the Central Government may make rules providing for the manner in which and the period for which any person subject to this Act may be taken into and detained in Force custody, pending the trial by any competent authority for any offence committed by him. **71. Interval between committal and trial.—In every case where any such person as is mentioned in** section 69 and as is not on active duty, remains in such custody for a longer period than eight days without a Force Court for his trial being convened, a special report giving reasons for the delay shall be made by his commanding officer in the manner prescribed, and a similar report shall be forwarded at intervals of every eight days until a Force Court is convened or such person is released from custody. **72. Arrest by civil authorities.—Whenever any person subject to this Act, who is accused of an** offence under this Act, is within the jurisdiction of any magistrate or police officer, such magistrate or police officer shall aid in the apprehension and delivery to Force custody of such person upon receipt of a written application to that effect signed by his commanding officer or an officer authorised by the commanding officer in that behalf. **73. Capture of deserters.—(1) Whenever any person subject to this Act deserts, the commanding** officer of the unit to which he belongs or is attached, shall give information of the desertion to such civil authorities as, in his opinion, may be able to afford assistance towards the capture of the deserter; and such authorities shall thereupon take steps for the apprehension of the said deserter in like manner as if he were a person for whose apprehension a warrant had been issued by a magistrate, and shall deliver the deserter, when apprehended, into Force custody. (2) Any police officer may arrest without warrant any person reasonably believed to be subject to this Act, and to be a deserter or to be travelling without authority, and shall bring him without delay before the nearest magistrate, to be dealt with according to law. **74. Inquiry into absence without leave.—(1) When any person subject to this Act has been absent** from duty without due authority for a period of thirty days, a court of inquiry shall, as soon as practicable, be appointed by such authority and in such manner as may be prescribed; and such court shall, on oath or affirmation administered in the prescribed manner, inquire respecting the absence of the person, and the deficiency, if any, in the property of the Government entrusted to his care, or in any arms, ammunition, equipment, instruments, clothing or necessaries; and if satisfied of the fact of such absence without due authority or other sufficient cause, the court shall declare such absence and the period thereof and the said deficiency, if any, and the commanding officer of the unit to which the person belongs or is attached, shall make a record thereof in the prescribed manner. (2) If the person declared absent does not afterwards surrender or is not apprehended, he shall, for the purposes of this Act, be deemed to be a deserter. **75. Force Police Officers.—(1) The Director-General or any prescribed officer may appoint persons** (in this Act referred to as Force Police) for discharging the functions specified in sub-sections (2) and (3). (2) The duties of a person appointed under sub-section (1) are to take charge of persons confined for any offence, to preserve good order and discipline and to prevent breaches of the same by persons serving in, or attached to the Force. (3) Notwithstanding anything contained in section 69, a person appointed under sub-section (1) may, at any time, arrest and detain for trial any person subject to this Act who commits, or is charged with, an offence, and may also carry into effect any punishment to be inflicted in pursuance of a sentence awarded by a Force Court or by an officer exercising authority under section 56 but shall not inflict any punishment on his own authority: Provided that no officer shall be so arrested or detained otherwise than on the order of another officer. 22 ----- CHAPTER VII FORCE COURTS **76. Kinds of Force Courts.—For the purposes of this Act there shall be three kinds of Force Courts,** that is to say,— (a) General Force Courts; (b) Petty Force Courts; and (c) Summary Force Courts. **77. Power to convene a General Force Court.—A General Force Court may be convened by the** Central Government or the Director-General or by any officer empowered in this behalf by warrant of the Director-General. **78. Power to Convene a Petty Force Court.—A Petty Force Court may be convened by an officer** having power to convene a General Force Court or by an officer empowered in this behalf by warrant of any such officer. **79. Contents of warrants issued under sections 77 and 78.—A warrant issued under section 77 or** section 78 may contain such restrictions, reservations or conditions as the officer issuing it may think fit. **80. Composition of a General Force Court.—A General Force Court shall consist of not less than** five officers. **81. Composition of a Petty Force Court.—A Petty Force Court shall consist of not less than three** officers. **82. Summary Force Court.—(1) A Summary Force Court may be held by the commanding officer** of any unit and he alone shall constitute the Court. (2) The proceedings shall be attended throughout by two other persons who shall be officers or subordinate officers or one of either, and who shall not as such, be sworn or affirmed. **83. Dissolution of a Force Court.—(1) If a Force Court after the commencement of a trial is reduced** below the minimum number of officers required by this Act, it shall be dissolved. (2) If, on account of the illness of the concerned Judge Attorney or, as the case may be, Deputy Judge Attorney-General or Additional Judge Attorney-General or of the accused before the finding, it is impossible to continue the trial, the Force Court shall be dissolved. (3) The authority or officer who convened a Force Court may dissolve the same if it appears to him that the exigencies of the service or necessities of discipline render it impossible or inexpedient to continue the said Force Court. (4) Where a Force Court is dissolved under this section, the accused may be tried again. **84. Power of a General Force Court.—A General Force Court shall have the power to try any** person subject to this Act for any offence punishable thereunder and to pass any sentence authorised thereby. **85. Power of a Petty Force Court.—A Petty Force Court shall have the power to try any person** subject to this Act other than an officer or a subordinate officer for any offence made punishable thereunder and to pass any sentence authorised by this Act other than a sentence of death or imprisonment for a term exceeding two years. **86. Power of a Summary Force Court.—(1) Subject to the provisions of sub-section (2), a** Summary Force Court may try any offence punishable under this Act. (2) When there is no grave reason for immediate action and reference can without detriment to discipline be made to the officer empowered to convene a Petty Force Court for the trial of the alleged offender, an officer holding a Summary Force Court shall not try without such reference any offence punishable under any of the sections 16, 19 and 49, or any offence against the officer holding the Court. 23 ----- (3) A Summary Force Court may try any person subject to this Act and under the command of the officer holding the Court, except an officer or a subordinate officer. (4) A Summary Force Court may pass any sentence which may be passed under this Act, except the sentence of death or of imprisonment for a term exceeding the limit specified in sub-section (5). (5) The limit referred to in sub-section (4) shall be,— (a) one year, if the officer holding the Force Court holds the rank not below that of a Commandant; (b) three months, in any other case. **87. Prohibition of second trial.—(1) When any person, subject to this Act has been acquitted or** convicted of an offence by a Force Court or by a criminal court or has been dealt with under section 56 or section 58, he shall not be liable to be tried again for the same offence by a Force Court or dealt with under the said sections. (2) When any person subject to this Act, has been acquitted or convicted of an offence by a Force Court or has been dealt with under section 56 or section 58, he shall not be liable to be tried again by a criminal court for the same offence or on the same facts. **88. Period of limitation for trial.—(1) Except as provided by sub-section (2), no trial by a Force** Court of any person subject to this Act for any offence shall be commenced after the expiration of a period of three years from the date of such offence. (2) The provisions of sub-section (1) shall not apply to a trial for an offence of desertion or for any of the offences mentioned in section 19. (3) In the computation of the period of time mentioned in sub-section (1), any time spent by such person in evading arrest after the commission of the offence, shall be excluded. **89. Trial, etc., of offender who ceases to be subject to this Act.—(1) Where an offence under this** Act had been committed by any person while subject to this Act, and he has ceased to be so subject, he may be taken into and kept in Force custody and tried and punished for such offence as if he continued to be so subject. (2) No such person shall be tried for an offence, unless his trial commences within six months after he had ceased to be subject to this Act: Provided that nothing contained in this sub-section shall apply to the trial of any such person for an offence of desertion or for any of the offences mentioned in section 19 or shall affect the jurisdiction of a criminal court to try any offence triable by such court as well as by a Force Court. **90. Application of Act during term of sentence.—(1) When a person subject to this Act is** sentenced by a Force Court to imprisonment, this Act shall apply to him during the term of his sentence, though he is dismissed from the Force, or has otherwise ceased to be subject to this Act, and he may be kept, removed, imprisoned and punished as if he continued to be subject to this Act. (2) When a person subject to this Act is sentenced by a Force Court to death, this Act shall apply to him till the sentence is carried out. **91. Place of trial.—Any person subject to this Act who commits any offence against it may be tried** and punished for such offence in any place whatever. **92. Choice between criminal court and Force Court.—When a criminal court and a Force Court** have each jurisdiction in respect of an offence, it shall be in the discretion of the Director-General or the Additional Director-General or the Inspector-General or the Deputy Inspector-General or the Additional Deputy Inspector-General within whose command the accused person is serving or such other officer as may be prescribed, to decide before which court the proceedings shall be instituted, and if that officer decides that they shall be instituted before a Force Court, to direct that the accused person shall be detained in Force custody. 24 ----- **93. Power of criminal court to require delivery of offender.—(1) When a criminal court having** jurisdiction is of opinion that proceedings shall be instituted before itself in respect of any alleged offence, it may, by written notice, require the officer referred to in section 92 at his option, either to deliver over the offender to the nearest magistrate to be proceeded against according to law, or to postpone proceedings, pending a reference to the Central Government. (2) In every such case the said officer shall either deliver over the offender in compliance with the requisition, or shall forthwith refer the question as to the court before which the proceedings are to be instituted, for the determination of the Central Government whose order upon such reference shall be final. CHAPTER VIII PROCEDURE OF FORCE COURTS **94. Presiding officer.—At every General Force Court or Petty Force Court, the senior member shall** be the presiding officer. **95. Judge Attorneys.—Every General Force Court shall, and every Petty Force Court may, be** attended by a Judge Attorney or a Deputy Judge Attorney-General or an Additional Judge AttorneyGeneral, or, if no such officer is available, an officer approved by the Judge Attorney-General or by any officer authorised in this behalf by the Judge Attorney-General. **96. Challenge.—(1) At all trials by a General Force Court or by a Petty Force Court, as soon as the** Court is assembled, the names of the presiding officer and members shall be read over to the accused, who shall thereupon be asked whether he objects to being tried by any officer sitting on the Court. (2) If the accused objects to such officer, his objection and also the reply thereto of the officer objected to shall be heard and recorded, and the remaining officers of the Court shall, in the absence of the challenged officer decide on the objection. (3) If the objection is allowed by one-half or more of the votes of the officers entitled to vote, the objection shall be allowed, and the member objected to shall retire, and his vacancy may be filled in the prescribed manner, by another officer subject to the same right of the accused to object. (4) When no challenge is made, or when a challenge has been made and disallowed, or the place of every officer successfully challenged has been filled by another officer to whom no objection is made or allowed, the Court shall proceed with the trial. **97. Oaths of member, Judge Attorney and witness.—(1) An oath or affirmation in the prescribed** manner shall be administered to every member of the Force Court and to the Judge Attorney, or, as the case may be, the Deputy Judge Attorney-General or the Additional Judge Attorney-General or the officer approved under section 95, before the commencement of the trial. (2) Every person giving evidence before a Force Court shall be examined after being duly sworn or affirmed in the prescribed form. (3) The provisions of sub-section (2) shall not apply where the witness is a child under twelve years of age and the Force Court is of opinion that though the witness understands the duty of speaking the truth, he does not understand the nature of an oath or affirmation. **98. Voting by members.—(1) Subject to the provisions of sub-sections (2) and (3), every decision of** a Force Court shall be passed by an absolute majority of votes; and where there is an equality of votes on either the finding or the sentence, the decision shall be in favour of the accused. (2) No sentence of death shall be passed by a General Force Court without the concurrence of at least two-thirds of the members of the Court. (3) In matters other than a challenge or the finding or sentence, the presiding officer shall have a casting vote. **99. General rule as to evidence.—The Indian Evidence Act, 1872 (1 of 1872), shall, subject to the** provisions of this Act, apply to all proceedings before a Force Court. 25 ----- **100. Judicial notice.—A Force Court may take judicial notice of any matter within the general** knowledge of the members as officers of the Force. **101. Summoning witnesses.—(1) The convening officer, the presiding officer of a Force Court, the** Judge Attorney or, as the case may be, the Deputy Judge Attorney-General or the Additional Judge Attorney-General or the officer approved under section 95 or the Commanding Officer of the accused person may, by summons under his hand, require the attendance, at a time and place to be mentioned in the summons, of any person either to give evidence or to produce any document or other thing. (2) In the case of a witness who is subject to this Act or any other Act relating to the armed forces of the Union, the summons shall be sent to his Commanding Officer and such officer shall serve it upon him accordingly. (3) In the case of any other witness, the summons shall be sent to the magistrate within whose jurisdiction he may be, or resides, and such magistrate shall give effect to the summons as if the witness were required in the court of such a magistrate. (4) When a witness is required to produce any particular document or other thing in his possession or power, the summons shall describe it with reasonable precision. **102. Documents exempted from production.—(1) Nothing in section 101 shall be deemed to affect** the operation of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872) or to apply to any letter, postcard, telegram or other document in the custody of the postal or telegraph authorities. (2) If any document in such custody is, in the opinion of any District Magistrate, Chief Metropolitan Magistrate, Chief Judicial Magistrate, Court of Sessions or High Court wanted for the purpose of any Force Court, such Magistrate or Court may require the postal or telegraph authorities, as the case may be, to deliver such document to such person as such Magistrate or Court may direct. (3) If any such document is, in the opinion of any other magistrate or of any Commissioner of Police or District Superintendent of Police, wanted for any such purpose, he may require the postal or telegraph authorities, as the case may be, to cause such search to be made for, and to detain such document pending the orders of any such District Magistrate, Chief Metropolitan Magistrate, Chief Judicial Magistrate, Court of Sessions or High Court. **103. Commissions for examination of witnesses.—(1) Whenever, in the course of a trial by a Force** Court, it appears to the Court that the examination of a witness is necessary for the ends of justice, and that the attendance of such witness cannot be procured without an amount of delay, expense or inconvenience which, in the circumstances of the case, would be unreasonable, such Court may address the Judge Attorney-General in order that a commission to take the evidence of such witness may be issued. (2) The Judge Attorney-General may then, if he thinks necessary, issue a commission to any Metropolitan Magistrate or Judicial Magistrate of the first class, within the local limits of whose jurisdiction such witness resides, to take the evidence of such witness. (3) The Magistrate to whom the commission is issued, or, if he is the Chief Metropolitan Magistrate, or Chief Judicial Magistrate, or such Metropolitan Magistrate, or Judicial Magistrate, as he appoints in this behalf, shall summon the witness before him or proceed to the place where the witness is, and shall take down his evidence in the same manner, and may for this purpose exercise the same powers, as in the trials of warrant-cases under the Code of Criminal Procedure, 1973 (2 of 1974). (4) When the witness resides in a tribal area or in any place outside India, the commission may be issued in the manner specified in Chapter XXIII of the Code of Criminal Procedure, 1973 (2 of 1974). **104. Examination of a witness on commission.—(1) The prosecutor and the accused person in any** case in which a commission is issued under section 103 may respectively forward any interrogatories in writing which the court may think relevant to the issue, and the Magistrate executing the commission shall examine the witness upon such interrogatories. 26 ----- (2) The prosecutor and the accused person may appear before such Magistrate by counsel, or, except in the case of an accused person in custody, in person, and may examine, cross-examine, and re-examine, as the case may be, the said witness. (3) After a commission issued under section 103 has been duly executed, it shall be returned together with the deposition of the witness examined thereunder to the Judge Attorney-General. (4) On receipt of a commission and deposition returned under sub-section (3), the Judge AttorneyGeneral shall forward the same to the Court at whose instance the commission was issued or, if such Court has been dissolved, to any other Court convened for the trial of the accused person; and the commission, the return thereto and the deposition shall be open to inspection by the prosecutor and the accused person, and may, subject to all just exceptions, be read in evidence in the case by either the prosecutor or the accused, and shall form part of the proceedings of the Court. (5) In every case in which a commission is issued under section 103, the trial may be adjourned for specified time reasonably sufficient for the execution and return of the commission. **105. Conviction for offences not charged.—A person charged before a Force Court—** (a) with desertion may be found guilty of attempting to desert or of being absent without leave; (b) with attempting to desert may be found guilty of being absent without leave; (c) with using criminal force may be found guilty of assault; (d) with using threatening language may be found guilty of using insubordinate language; (e) with any one of the offences specified in clauses (a), (b), (c) and (d) of section 33 may be found guilty of any other of these offences with which he might have been charged; (f) with an offence punishable under section 49 may be found guilty of any other offence of which he might have been found guilty, if the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), were applicable; (g) with any offence under this Act may, on failure of proof of an offence having been committed in circumstances involving a more severe punishment, be found guilty of the same offence as having been committed in circumstances involving a less severe punishment; (h) with any offence under this Act may be found guilty of having attempted or abetted the commission of that offence, although the attempt or abetment is not separately charged. **106. Presumption as to signatures.—In any proceeding under this Act, any application, certificate,** warrant, reply or other document purporting to be signed by an officer in the service of the Government shall, on production, be presumed to have been duly signed by the person by whom and in the character in which it purports to have been signed, until the contrary is shown. **107. Enrolment paper.—(1) Any enrolment paper purporting to be signed by an enrolling officer** shall, in proceedings under this Act, be evidence of the person enrolled having given the answers to questions which he is therein represented as having given. (2) The enrolment of such person may be proved by the production of the original or a copy of his enrolment paper purporting to be certified to be a true copy by the officer having the custody of the enrolment paper or service record. **108. Presumption as to certain documents.—(1) A letter, return or other document respecting the** service of any person in, or the dismissal, removal or discharge of any person from, any unit of the Force, or respecting the circumstances of any person not having served in, or belonged to, any unit of the Force, if purporting to be signed by or on behalf of the Central Government or the Director-General, or by any prescribed officer, shall be evidence of the facts stated in such letter, return or other document. (2) A Force List or Gazette purporting to be published by authority shall be evidence of the status and rank of the officers, subordinate officers therein mentioned, and of any appointment held by them and of the battalion, unit, or branch of the Force to which they belong. 27 ----- (3) Where a record is made in any battalion book in pursuance of this Act or of any rules made thereunder or otherwise in the discharge of official duties, and purports to be signed by the commanding officer or by the officer whose duty it is to make such record, such record shall be evidence of the facts therein stated. (4) A copy of any record in any office of the Force purporting to be certified to be a true copy by the officer having custody of such book shall be evidence of such record. (5) Where any person subject to this Act is being tried on a charge of desertion or of absence without leave, and such person has surrendered himself into the custody of any officer or other person subject to this Act, or any unit of the Force, or has been apprehended by such officer or person, a certificate purporting to be signed by such officer, or by the commanding officer of the unit to which such person belongs or is attached, as the case may be, and stating the fact, date and place of such surrender or apprehension, and the manner in which he was dressed, shall be evidence of the matters so stated. (6) Where any person subject to this Act is being tried on a charge of desertion or of absence without leave and such person has surrendered himself into the custody of, or has been apprehended by, a police officer not below the rank of an officer in charge of a police station, a certificate purporting to be signed by such police officer and stating the fact, date and place of such surrender or apprehension and the manner in which he was dressed shall be evidence of the matters so stated. (7) (a) Any document purporting to be a report under the hand of a Government scientific expert to whom this sub-section applies, upon any matter or thing duly submitted to him for examination or analysis and report in the course of any proceeding under this Act, may be used as evidence in any inquiry, trial or other proceeding under this Act. (b) The Force Court may, if it thinks fit, summon and examine any such expert as to the subject matter of his report. (c) Where any such expert is summoned by a Force Court and he is unable to attend personally, he may, unless the Court has expressly directed him to appear personally, depute an officer who is conversant with the facts of the case to depose in the Court on his behalf. (d) This sub-section applies to the Government scientific experts, for the time being specified in subsection (4) of section 293 of the Code of Criminal Procedure, 1973 (2 of 1974). **109. Reference by accused to Government officer.—(1) If at any trial for desertion or absence** without leave, over-staying leave or not rejoining when warned for service, the accused person states in his defence any sufficient or reasonable excuse for his unauthorised absence, and refers in support thereof to any officer in the service of the Government, or if it appears that any such officer is likely to prove or disprove the said statement in the defence, the Court shall address such officer and adjourn the proceedings until his reply is received. (2) The written reply of any officer so referred to shall, if signed by him, be received in evidence and have the same effect as if made on oath before the Court. (3) If the court is dissolved before the receipt of such reply or if the Court omits to comply with the provisions of this section, the convening officer may, at his discretion, annul the proceedings and order a fresh trial. **110. Evidence of previous convictions and general character.—(1) When any person subject to** this Act has been convicted by a Force Court of any offence, such Force Court may inquire into, and receive, and record evidence of any previous convictions of such person, either by a Force Court or by a criminal court, or any previous award of punishment under section 56 or section 58, and may further inquire into and record the general character of such person and such other matters as may be prescribed. (2) Evidence received under this section may be either oral, or in the shape of entries in, or certified extracts from, books of Force Courts or other official records; and it shall not be necessary to give notice before trial to the person tried that evidence as to his previous convictions or character will be received. 28 ----- (3) At a summary Force Court, the officer holding the trial may, if he thinks fit, record any previous convictions against the offender, his general character, and such other matters as may be prescribed, as of his own knowledge, instead of requiring them to be proved under the foregoing provisions of this section. **111. Lunacy of accused.—(1) Whenever, in the course of a trial by a Force Court, it appears to the** Court that the person charged is by reason of unsoundness of mind incapable of making his defence, or that he committed the act alleged but was by reason of unsoundness of mind incapable of knowing the nature of the act or knowing that it was wrong or contrary to law, the Court shall record a finding accordingly. (2) The presiding officer of the Court, or, in the case of a Summary Force Court, the officer holding the trial, shall forthwith report the case to the confirming officer, or to the authority empowered to deal with its finding under section 129, as the case may be. (3) The confirming officer to whom the case is reported under sub-section (2) may, if he does not confirm the finding, take steps to have the accused person tried by the same or another Force Court for the offence with which he was charged. (4) The authority to whom the finding of a Summary Force Court is reported under sub-section (2) and a confirming officer confirming the finding in any case so reported to him shall order the accused person to be kept in custody in the prescribed manner and shall report the case for the orders of the Central Government. (5) On receipt of a report under sub-section (4), the Central Government may order the accused person to be detained in a lunatic asylum or other suitable place of safe custody. **112. Subsequent fitness of lunatic accused for trial.—Where any accused person, having been** found by reason of unsoundness of mind to be incapable of making his defence, is in custody or under detention under section 111, any officer prescribed in this behalf, may— (a) if such person is in custody under sub-section (4) of section 111, on the report of a medical officer that he is capable of making his defence, or (b) if such person is detained in a jail under sub-section (5) of section 111, on a certificate of the Inspector-General of Prisons, and if such person is detained in a lunatic asylum under the said subsection, on a certificate of any two or more of the visitors of such asylum and if he is detained in any other place under that sub-section, on a certificate of the prescribed authority, that he is capable of making his defence, take steps to have such person tried by the same or another Force Court for the offence with which he was originally charged or, if the offence is a civil offence, by a criminal court. **113. Transmission to Central Government of orders under section 112.—A copy of every order** made by an officer under section 112 for the trial of the accused shall forthwith be sent to the Central Government. **114. Release of lunatic accused.—Where any person is in custody under sub-section (4) of section** 111 or under detention under sub-section (5) of that section,— (a) if such person is in custody under the said sub-section (4), on the report of a medical officer, or (b) if such person is detained under the said sub-section (5), on a certificate from any of the authorities mentioned in clause (b) of section 112 that in the judgment of such officer or authority such person may be released without danger of his doing injury to himself or to any other person, the Central Government may order that such person be released or detained in custody or transferred to a public lunatic asylum if he has not already been sent to such an asylum. **115. Delivery of lunatic accused to relatives.—Where any relative or friend of any person who is in** custody under sub-section (4) of section 111 or under detention under sub-section (5) of that section desires that he should be delivered to his care and custody, the Central Government may, upon application by such relative or friend and, on his giving security to the satisfaction of that Government that the person 29 ----- delivered shall be properly taken care of, and, prevented from doing injury to himself or to any other person, and be produced for the inspection of such officer, and at such times and places, as the Central Government may direct, order such person to be delivered to such relative or friend. **116. Order for custody and disposal of property pending trial.—When any property regarding** which any offence appears to have been committed, or which appears to have been used for the commission of any offence, is produced before a Force Court during a trial, the Court may make such order as it thinks fit for the proper custody of such property pending the conclusion of the trial, and if the property is subject to speedy or natural decay may, after recording such evidence as it thinks necessary, order it to be sold or otherwise disposed of. **117. Order for disposal of property regarding which offence is committed.—(1) After the** conclusion of a trial before any Force Court, the Court or the officer confirming the finding or sentence of such Force Court, or any authority superior to such officer, or, in the case of a Summary Force Court whose finding or sentence does not require confirmation, an officer not below the rank of Additional Deputy Inspector-General within whose command the trial was held, may make such order as it or he thinks fit for the disposal by destruction, confiscation, delivery to any person claiming to be entitled to possession thereof, or otherwise, of any property or document produced before the Court or in its custody, or regarding which any offence appears to have been committed or which has been used for the commission of any offence. (2) Where any order has been made under sub-section (1) in respect of property regarding which an offence appears to have been committed, a copy of such order signed and certified by the authority making the same may, whether the trial was held within India or not, be sent to a magistrate within whose jurisdiction such property for the time being is situated, and such magistrate shall thereupon cause the order to be carried into effect as if it were an order passed by him under the provisions of the Code of Criminal Procedure, 1973 (2 of 1974). (3) In this section, the term “property” includes, in the case of property regarding which an offence appears to have been committed, not only such property as has been originally in the possession or under the control of any person, but also any property into or for which the same may have been converted or exchanged, and anything acquired by such conversion or exchange whether immediately or otherwise. **118. Powers of Force Court in relation to proceedings under this Act.—Any trial by a Force** Court under the provisions of this Act shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Force Court shall be deemed to be a court within the meaning of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). **119. Tender of pardon to accomplies.—(1) With a view to obtaining the evidence of any person** supposed to have been directly or indirectly concerned in or privy to an offence triable by a Force Court other than a Summary Force Court under this Act, the commanding officer, the convening officer or the Force Court, at any stage of the investigation or inquiry into or the trial of, the offence, may tender a pardon to such person on condition of his making a full and true disclosure of the whole of the circumstances within his knowledge relating to the offence and to every other person concerned, whether as principal or abettor, in the commission thereof. (2) The commanding officer or the convening officer who tenders a pardon under sub-section (1) shall record— (a) his reasons for so doing; (b) whether the tender was or was not accepted by the person to whom it was made, and shall, on application made by the accused, furnish him with a copy of such record free of cost. (3) Every person accepting a tender of pardon made under sub-section (1)— (a) shall be examined as a witness by the commanding officer of the accused and in the subsequent trial, if any; (b) may be detained in Force custody until the termination of the trial. 30 ----- **120. Trial of person not complying with conditions of pardon.—(1) Where, in regard to a person** who has accepted a tender of pardon made under section 119, the Judge Attorney, or as the case may be, the Deputy Judge Attorney-General or the Additional Judge Attorney-General or the officer approved under section 95, certifies that in his opinion such person has, either by wilfully concealing anything essential or by giving false evidence, not complied with the conditions on which the tender was made, such person may be tried for the offence in respect of which the pardon was so tendered or for any other offence of which he appears to have been guilty in connection with the same matter, and also for the offence of giving false evidence: Provided that such person shall not be tried jointly with any of the other accused. (2) Any statement made by such person accepting the tender of pardon and recorded by his commanding officer or Force Court may be given in evidence against him at such trial. (3) At such trial, the accused shall be entitled to plead that he has complied with the condition upon which such tender was made; in which case it shall be for the prosecution to prove that the condition has not been complied with. (4) At such trial, the Force Court shall, before arraignment, ask the accused whether he pleads that he has complied with the conditions on which the tender of pardon was made. (5) If the accused does so plead, the Court shall record the plea and proceed with the trial and it shall, before giving its finding on the charge, find whether or not the accused has complied with the conditions of the pardon, and, if it finds that he has so complied, it shall give a verdict of not guilty. CHAPTER IX CONFIRMATION AND REVISION **121. Finding and sentence not valid unless confirmed.—No finding or sentence of a General Force** Court or a Petty Force Court shall be valid except so far as it may be confirmed as provided by this Act. **122. Power to confirm finding and sentence of General Force Court.—The findings and sentences** of General Force Courts may be confirmed by the Central Government or by any officer empowered in this behalf by warrant of the Central Government. **123. Power to confirm finding and sentence of Petty Force Court.—The findings and sentences of** a Petty Force Court may be confirmed by an officer having power to convene a General Force Court or by any officer empowered in this behalf by warrant of such officer. **124. Limitation of powers of confirming authority.—A warrant issued under section 122 or section** 123 may contain such restrictions, reservations or conditions as the authority issuing it may think fit. **125. Power of confirming authority to mitigate, remit or commute sentences.—Subject to such** restrictions, reservations or conditions, as may be contained in any warrant issued under section 122 or section 123, a confirming authority may, when confirming the sentence of a Force Court, mitigate or remit the punishment thereby awarded or commute that punishment for any punishment or punishments lower in the scale laid down in section 51. **126. Confirming of findings and sentences on board a ship.—When any person subject to this Act** is tried and sentenced by a Force Court while on board a ship, the finding and sentence so far as not confirmed and executed on board the ship, may be confirmed and executed in like manner as if such person had been tried at the port of disembarkation. **127. Revision of finding or sentence.—(1) Any finding or sentence of a Force Court which requires** confirmation may be once revised by order of the confirming authority and on such revision, the Court, if so directed by the confirming authority, may take additional evidence. (2) The Court, on revision, shall consist of the same officers as were present when the original decision was passed unless any of those officers are unavoidably absent. 31 ----- (3) In case of such unavoidable absence the cause thereof shall be duly certified in the proceedings, and the Court shall proceed with the revision, provided that, if a General Force Court, it still consists of five officers, or, if a Petty Force Court, of three officers. **128. Finding and sentence of a Summary Force Court.—The finding and sentence of a Summary** Force Court shall not require to be confirmed, but may be carried out forthwith. **129. Transmission of proceedings of Summary Force Court.—The proceedings of every Summary** Force Court shall, without delay be forwarded to the officer not below the rank of Additional Deputy Inspector-General within whose command the trial was held, or to the prescribed officer, and such officer, or the Director-General or any officer empowered by him in this behalf may, for reasons based on the merits of the case, but not on merely technical grounds, set aside the proceedings, or reduce the sentence to any other sentence which the Court might have passed. **130. Alteration of finding or sentence in certain cases.—(1) Where a finding of guilty by a Force** Court, which has been confirmed or which does not require confirmation, is found for any reason to be invalid or cannot be supported by the evidence, the authority which would have had power under section 142 to commute the punishment awarded by the sentence, if the finding had been valid may substitute a new finding and pass a sentence for the offence specified or involved in such finding: Provided that no such substitution shall be made unless such finding could have been validly made by the Force Court on the charge and unless it appears that the Force Court must have been satisfied of the facts establishing the said offence. (2) Where a sentence passed by a Force Court which has been confirmed, or which does not require confirmation, not being a sentence passed in pursuance of a new finding substituted under sub-section (1), is found for any reason to be invalid, the authority referred to in sub-section (1) may pass a valid sentence. (3) The punishment awarded by a sentence passed under sub-section (1) or sub-section (2) shall not be higher in the scale of punishments than, or in excess of, the punishment awarded by, the sentence for which a new sentence is substituted under this section. (4) Any finding substituted, or any sentence passed, under this section shall, for the purposes of this Act and the rules, have effect as if it were a finding or sentence, as the case may be, of a Force Court. **131. Remedy against order, finding or sentence of Force Court.—(1) Any person subject to this** Act who considers himself aggrieved by any order passed by any Force Court may present a petition to the officer or authority empowered to confirm any finding or sentence of such Force Court, and the confirming authority may take such steps as may be considered necessary to satisfy itself as to the correctness, legality or propriety of the order passed or as to the regularity of any proceeding to which the order relates. (2) Any person subject to this Act who considers himself aggrieved by a finding or sentence of any Force Court which has been confirmed, may present a petition to the Central Government, the DirectorGeneral or any prescribed officer superior in command to the one who confirmed such finding or sentence,and the Central Government, the Director-General, or the prescribed officer, as the case may be, may pass such order thereon as it or he thinks fit. **132. Annulment of proceedings.—The Central Government, the Director-General or any prescribed** officer may annul the proceedings of any Force Court on the ground that they are illegal or unjust. CHAPTER X EXECUTION OF SENTENCES, PARDONS, REMISSIONS, ETC. **133. Form of sentence of death.—In awarding a sentence of death, a Force Court shall, in its** discretion direct that the offender shall suffer death by being hanged by the neck until he be dead, or shall suffer death by being shot to death. 32 ----- **134. Commencement of sentence of imprisonment.—Whenever any person is sentenced by a Force** Court under this Act to imprisonment, the term of his sentence shall, whether it has been revised or not, be reckoned to commence on the day on which the original proceedings were signed by the presiding officer, or in the case of a Summary Force Court, by the Court: Provided that— (i) if for any reason, beyond the control of the commanding officer or superior officer, the sentence of imprisonment cannot be executed in full or in part, the convict shall be liable to undergo the whole or unexpired portion of sentence, as the case may be, when it becomes possible to carry out the same; (ii) the period of detention or confinement, if any, undergone by an accused person, during the investigation, inquiry or trial of the case in which he is sentenced and before the date on which the original proceedings were signed shall be set off against the term of his sentence and the liability of such person to undergo imprisonment shall be restricted to the remainder, if any of the term of his sentence. **135. Execution of sentence of imprisonment.—(1) Whenever any sentence of imprisonment is** passed under this Act by a Force Court or whenever any sentence of death is commuted to imprisonment, the confirming officer or in case of a Summary Force Court the officer holding the Court or such other officer as may be prescribed shall, save as otherwise provided in sub-sections (3) and (4), direct that the sentence shall be carried out by confinement in a civil prison. (2) When a direction has been made under sub-section (1), the commanding officer of the person under sentence or such other officer as may be prescribed shall forward a warrant in the prescribed form to the officer in charge of the prison in which such person is to be confined and shall arrange for his dispatch to such prison with the warrant. (3) In the case of a sentence of imprisonment for a period not exceeding three months and passed under this Act by a Force Court, the appropriate officer under sub-section (1) may direct that the sentence shall be carried out by confinement in Force custody instead of in a civil prison. (4) On active duty, a sentence of imprisonment may be carried out by confinement in such place as the officer not below the rank of Additional Deputy Inspector-General within whose command the person sentenced is serving or any prescribed officer may from time to time appoint. **136. Temporary custody of offender.—Where a sentence of imprisonment is directed to be** undergone in a civil prison, the offender may be kept in Force custody or in any other fit place till such time as it is possible to send him to a civil prison. **137. Execution of sentence of imprisonment in special cases.—Whenever, in the opinion of an** officer not below the rank of Additional Deputy Inspector-General within whose command the trial is held, any sentence or portion of a sentence of imprisonment cannot for special reasons conveniently be carried out in Force custody in accordance with the provisions of section 135, such officer may direct that such sentence or portion of sentence shall be carried out by confinement in any civil prison or other fit place. **138. Conveyance of prisoner from place to place.—A person under sentence of imprisonment may** during his conveyance from place to place, or when on board a ship, aircraft, or otherwise, be subjected to such restraint as is necessary for his safe conduct and removal. **139. Communication of certain orders to prison officers.—Whenever an order is duly made under** this Act setting aside or varying any sentence, order or warrant under which any person is confined in a civil prison, a warrant in accordance with such order shall be forwarded by the officer making the order or his staff officer or such other person as may be prescribed, to the officer in charge of the prison in which such person is confined. 33 ----- **140. Execution of sentence of fine.—When a sentence of fine is imposed by a Force Court under** section 49, a copy of such sentence signed and certified by the confirming officer, or where no confirmation is required, by the officer holding the trial may be sent to any magistrate in India, and such magistrate shall thereupon cause the fine to be recovered in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), as if it were a sentence of fine imposed by such magistrate. **141. Informality or error in the order or warrant.—Whenever any person is sentenced to** imprisonment under this Act, and is undergoing the sentence in any place or manner in which he might be confined under a lawful order or warrant in pursuance of this Act, the confinement of such person shall not be deemed to be illegal only by reason of informality or error in, or as respects, the order, warrant or other document, or the authority by which, or in pursuance whereof such person was brought into, or, is confined in any such place, and any such order, warrant or document may be amended accordingly. **142. Pardon and remission.—When any person subject to this Act has been convicted by a Force** Court of any offence, the Central Government or the Director-General or, in the case of a sentence, which he could have confirmed or which did not require confirmation, an officer not below the rank of Additional Deputy Inspector-General within whose command such person at the time of conviction was serving, or the prescribed officer may,— (a) either with or without conditions which the person sentenced accepts, pardon the person or remit the whole or any part of the punishments awarded; or (b) mitigate the punishment awarded; or (c) commute such punishment for any less punishment or punishments mentioned in this Act; or (d) either with or without conditions which the person sentenced accepts, release the person on parole. **143. Cancellation of conditional pardon, release on parole or remission.—(1) If any condition on** which a person has been pardoned or released on parole or a punishment has been remitted is, in the opinion of the authority which granted the pardon, release or remission, not fulfilled, such authority may cancel the pardon, release or remission, and thereupon the sentence of the Court shall be carried into effect as if such pardon, release or remission had not been granted. (2) A person whose sentence of imprisonment is carried into effect under the provisions of subsection (1) shall undergo only the unexpired portion of his sentence. **144. Suspension of sentence of imprisonment.—(1) Where a person subject to this Act is sentenced** by a Force Court to imprisonment, the Central Government, the Director-General or any officer empowered to convene a General Force Court may suspend the sentence whether or not the offender has already been committed to prison or to Force custody. (2) The authority or officer specified in sub-section (1) may, in the case of an offender so sentenced direct that until the orders of such authority or officer have been obtained, the offender shall not be committed to prison or to Force custody. (3) The powers conferred by sub-sections (1) and (2) may be exercised in the case of any such sentence which has been confirmed, reduced or commuted. **145. Orders pending suspension.—(1) Where the sentence referred to in section 144 is imposed by** a Force Court other than a summary Force Court, the confirming officer may, when confirming the sentence, direct that the offender be not committed to prison or to Force custody until the orders of the authority or officer specified in section 144 have been obtained. (2) Where a sentence of imprisonment is imposed by a Summary Force Court, the officer holding the trial may make the direction referred to in sub-section (1). **146. Release on suspension.—Where a sentence is suspended under section 144, the offender shall** forthwith be released from custody. 34 ----- **147. Computation of period of suspension.—Any period during which the sentence is under** suspension shall be reckoned as part of the term of such sentence. **148. Order after suspension.—The authority or officer specified in section 144 may, at any time** while a sentence is suspended, order— (a) that the offender be committed to undergo the unexpired portion of the sentence; or (b)that the sentence be remitted. **149. Reconsideration of case after suspension.—(1) Where a sentence has been suspended, the case** may at any time, and shall at intervals of not more than four months, be reconsidered by the authority or officer not below the rank of an Additional Deputy Inspector-General duly authorised by the authority or officer specified in section 144. (2) Where on such reconsideration by the officer so authorised it appears to him that the conduct of offender since his conviction has been such as to justify a remission of the sentence, he shall refer the matter to the authority or officer specified in section 144. **150. Fresh sentence after suspension.—Where an offender, while a sentence on him is suspended** under this Act, is sentenced for any other offence, then— (a) if the further sentence is also suspended under this Act, the two sentences shall run concurrently; (b) if the further sentence is for a period of three months or for and is not suspended under this Act, the offender shall also be committed to prison or Force custody for the unexpired portion of the previous sentence, but both sentences shall run concurrently; and (c) if the further sentence is for a period of less than three months and is not suspended under this Act, the offender shall be so committed on that sentence only, and the previous sentence shall, subject to any order which may be passed under section 148 or section 149, continue to be suspended. **151. Scope of power of suspension.—The powers conferred by sections 144 and 148 shall be in** addition to, and not in derogation of, the power of mitigation, remission and commutation. **152. Effect of suspension and remission on dismissal.—(1) Where in addition to any other sentence** the punishment of dismissal has been awarded by a Force Court, and such other sentence is suspended under section 144, then, such dismissal shall not take effect until so ordered by the authority or officer specified in section 144. (2) If such other sentence is remitted under section 148, the punishment of dismissal shall also be remitted. CHAPTER XI MISCELLANEOUS **153. Rank structure.—(1) The officers and other members of the Force shall be classified in** accordance with their ranks in the following categories, namely:— (a) officers— (i) Director-General. (ii) Additional Director-General. (iii) Inspector-General. (iv) Deputy Inspector-General. (v) Additional Deputy Inspector-General. (vi) Commandant. (vii) Second-in-Command. 35 ----- (viii) Deputy Commandant. (ix) Assistant Commandant. (b) subordinate officers— (i) Subedar-Major. (ii) Subedar/Inspector. (iii) Sub-Inspector. (c) under officers— (i) Head Constable. (ii) Naik. (iii) Lance naik. (d)enrolled persons other than under officers—constable. (2) The matters relating to _inter se_ seniority of persons belonging to the same rank shall be determined in accordance with such rules as may be prescribed. (3) Notwithstanding anything contained in this Act, the Director-General may, subject to confirmation of the Central Government as provided hereinafter, grant to an officer or a Subedar-Major of the Force a rank, mentioned in clause (a) of sub-section (1) as a local rank, whenever considered necessary by him in the interest of better functioning of the Force. (4) An officer of the Force holding a local rank,— (a) shall exercise the command and be vested with the powers of an officer holding that rank; (b) shall cease to hold that rank if the grant of such rank is not confirmed within one month by the Central Government or when so ordered by the Director-General or when he ceases to hold the appointment for which the rank was granted; (c) shall not be entitled to claim any seniority over other officers of the Force by virtue of having held such rank; and (d) shall not be entitled to any extra pay and allowances for holding such rank. _Explanation I.—Assistant Commandant shall also include a Joint Assistant Commandant in case of_ personnel belonging to cadres of Motor Mechanic, Combatant Ministerial and Combatant Stenographer of the Force. _Explanation II.—Sub-Inspector shall include an Assistant Sub-Inspector in case of personnel_ belonging to Combatant Ministerial cadre of the Force. **154. Powers and duties conferrable and imposable on members of the Force.—(1) The Central** Government may, by general or special order published in the Official Gazette, direct that, subject to such conditions and limitations as may be specified in the order, any member of the Force may exercise or discharge such of the powers or duties under any Central Act as may be specified in the said order, being the powers and duties which, in the opinion of the Central Government, an officer of the corresponding or lower rank is by such Central Act empowered to exercise or discharge for the said purposes. (2) The Central Government may, by general or special order published in the Official Gazette, confer or impose, with the concurrence of the State Government concerned, any of the powers or duties which may be exercised or discharged under a State Act by a police officer upon a member of the Force who, in the opinion of the Central Government, holds a corresponding or higher rank. (3) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification 36 ----- in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **155. Protection for acts of members of the Force.—(1) In any suit or proceeding against any** member of the Force for any act done by him in pursuance of a warrant or order of a competent authority, it shall be lawful for him to plead that such act was done by him under the authority of such warrant or order. (2) Any such plea may be proved by the production of the warrant or order directing the act, and if it is so proved the member of the Force shall thereupon be discharged from liability in respect of the act so done by him, notwithstanding any defect in the jurisdiction of the authority which issued such warrant or order. (3) Notwithstanding anything contained in any other law for the time being in force, any legal proceeding (whether civil or criminal) which may lawfully be brought against any member of the Force for anything done or intended to be done under the powers conferred by, or in pursuance of any provision of this Act or the rules, shall be commenced within three months after the act complained of was committed and not otherwise, and notice in writing of such proceeding and of the cause thereof shall be given to the defendant or his superior officer at least one month before the commencement of such proceeding. **156. Power to make rules.—(1) The Central Government may, by notification, make rules for the** purpose of carrying into effect the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for— (a) the constitution, governance, command and discipline of the force; (b) the enrolment of persons to the Force and the recruitment of other members of the Force; (c) the conditions of service (including deductions from pay and allowances) of members of the Force; (d) the precedence, powers of command and authority of the officers, subordinate officers, underofficers and other persons subject to this Act; (e) the dismissal, removal, retirement, release or discharge from the service of persons subject to this Act; (f) the purposes and other matters required to be prescribed under section 13; (g) the amount and incidence of fine to be imposed under section 60; (h) the convening, constitution, adjournment, dissolution and sittings of Force Courts, the procedure to be observed in trials by such Courts, the persons by whom an accused may be defended in such trials and the appearance of such persons thereat; (i) the confirmation, revision and annulment of, and petitions against, the findings and sentences of Force Courts; (j) the forms of orders to be made under the provisions of this Act relating to Force Courts and the awards and infliction of death, imprisonment and detention; (k) the constitution of authorities to decide for what persons, to what amounts and in what manner, provisions should be made for dependants under section 67 and the due carrying out of such decisions; (l) the carrying into effect of sentences of Force Courts; (m) any matter necessary for the purpose of carrying this Act into execution, as far as it relates to the investigation, arrest, custody, trial and punishment of offences triable or punishable under this Act; 37 ----- (n) the ceremonials to be observed and marks of respect to be paid in the Force; (o) the convening of, the constitution, procedure and practice of, courts of inquiry, the summoning of witnesses before them and the administration of oaths by such courts; (p) the recruitment and conditions of service of Judge Attorney-General, Additional Judge Attorney-General, Deputy Judge Attorney-General and Judge Attorney; (q) the disposal of the private or regimental property, or any other dues including provident fund of persons subject to this Act who die or desert or are ascertained to be of unsound mind or while on active duty are officially reported as missing; (r) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be, or may be, made by rules. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **157. Provisions as to existing Indo-Tibetan Border Police Force.—(1) The Indo-Tibetan Border** Police Force in existence at the commencement of this Act shall be deemed to be the Force constituted under this Act. (2) The members of the Indo-Tibetan Border Police Force in existence at the commencement of this Act shall be deemed to have been appointed or, as the case may be, enrolled as such under this Act. (3) Anything done or any action taken before the commencement of this Act in relation to the constitution of the Indo-Tibetan Border Police Force referred to in sub-section (1), in relation to any person appointed or enrolled, as the case may be, thereto, shall be as valid and as effective in law as if such thing or action was done or taken under this Act: Provided that nothing in this sub-section shall render any person guilty of any offence in respect of anything done or omitted to be done by him before the commencement of this Act. 38 -----
1-Sep-1992
34
The Rehabilitation Council of India Act, 1992
https://www.indiacode.nic.in/bitstream/123456789/1977/1/199234.pdf
central
# THE REHABILITATION COUNCIL OF INDIA ACT, 1992 _____________ ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II THE REHABILITATION COUNCIL OF INDIA 3. Constitution and incorporation of Rehabilitation Council of India. 4. Term of office of Chairperson and members. 5. Disqualifications. 6. Vacation of office by members. 7. Executive Committee and other committees. 8. Member-Secretary and employees of Council. 9. Vacancies in the Council not to invalidate acts, etc. 10. Dissolution of Rehabilitation Council and transfer of rights, liabilities and employees of Rehabilitation Council to Council. CHAPTER III FUNCTIONS OF THE COUNCIL 11. Recognition of qualifications granted by University, etc., in India for rehabilitation professionals. 12. Recognition of qualifications granted by institutions outside India. 13. Rights of persons possessing qualifications included in the Schedule to be enrolled. 14. Power to require information as to courses of study and examinations. 15. Inspectors as examinations. 16. Visitors at examinations. 17. Withdrawal of recognition. 18. Minimum standards of education. 19. Registration in Register. 20. Privileges of persons who are registered on Register. 21. Professional conduct and removal of names from Register. 22. Appeal against order of removal from Register. 23. Register. 24. Information to be furnished by Council and publication thereof. 25. Cognizance of offences. 26. Protection of action taken in good faith. 27. Employees of Council to be public servants. 28. Power to make rules. 29. Power to make regulations. 30. Laying of rules and regulations before Parliament. THE SCHEDULE. ----- # THE REHABILITATION COUNCIL OF INDIA ACT, 1992 # ACT NO. 34 OF 1992 [1st September, 1992.] # An Act to provide for the constitution of the Rehabilitation Council of India for regulating [1][and monitoring the training of rehabilitation professionals and personnel, promoting research in rehabilitation and special education,] the maintenance of a Central Rehabilitation Register and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Rehabilitation Council of India** Act, 1992. (2) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “Chairperson” means the Chairperson of the Council appointed under sub-section (3) of section 3; (b) “Council” means the Rehabilitation Council of India constituted under section 3; 3[(c) “handicapped” means a person suffering from any disability referred to in clause (i) of section 2 of the Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996);] 4* - - - (f) “member” means a member appointed under sub-section (3) of section 3 and includes the Chairperson; (g) “Member-Secretary” means the Member-Secretary appointed under sub-section (1) of section 8; (h) “mental retardation” means a condition of arrested or incomplete development of mind of a person which is specially characterised by sub-normality of intelligence; (i) “notification” means a notification published in the Official Gazette; (j) “prescribed” means prescribed by regulations; (k) “recognised rehabilitation qualifications” means any of the qualifications included in the Schedule; (l) “Register” means the Central Rehabilitation Register maintained under sub-section (1) of section 23; (m) “regulations” means regulations made under this Act; 5[(ma) “rehabilitation” refers to a process aimed at enabling persons with disabilities to reach and maintain their optimal physical, sensory, intellectual, psychiatric or social functional levels;] (n) “rehabilitation professionals” means— (i) audiologists and speech therapists; (ii) clinical psychologists; (iii) hearing aid and ear mould technicians; 1. Subs. by Act 38 of 2000, s. 2, for “the training of rehabilitation professionals and” (w.e.f. 4-9-2000). 2. 31st July, 1993, _vide notification No. S.O. 288(E), dated 28th April, 1993,_ _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). 3. Subs. by Act 38 of 2000, s. 3, for clause (c) (w.e.f. 4-9-2000). 4 Cl (d) d ( ) i d b 3 b d ( f 4 9 2000) ----- (iv) rehabilitation engineers and technicians; (v) special teachers for educating and training the handicapped; (vi) vocational counsellors, employment officers and placement officers dealing with handicapped; (vii) multi-purpose rehabilitation therapists, technicians; or (viii) such other category of professionals as the Central Government may, in consultation with the Council, notify from time to time; 1* - - - 2[(1A) Words and expressions used and not defined in this Act but defined in the Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) shall have the meanings respectively assigned to them in that Act.] (2) Any reference in this Act to any enactment or any provision thereof shall, in relation to an area in which such enactment or such provision is not in force, be construed as a reference to the corresponding law or the relevant provision of the corresponding law, if any, in force in that area. CHAPTER II THE REHABILITATION COUNCIL OF INDIA **3. Constitution and incorporation of Rehabilitation Council of India.—(1) With effect from such** date as the Central Government may, by notification, appoint in this behalf, there shall be constituted for the purposes of this Act a Council to be called the Rehabilitation Council of India. (2) The Council shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall by the said name sue and be sued. (3) The Council shall consist of the following members, namely:— 3[(a) a Chairperson, from amongst the persons having experience in administration with professional qualification in the field of rehabilitation, disabilities, and special education, to be appointed by the Central Government; (b) such number of members not exceeding seven, as may be nominated by the Central Government, to represent the Ministries of the Central Government dealing with matters relating to persons with disabilities;] (c) one member to be appointed by the Central Government to represent the University Grants Commission; (d) one member to be appointed by the Central Government to represent the Directorate General of Indian Council of Medical Research; (e) two members to be appointed by the Central Government to represent the Ministry or department of the States or the Union territories dealing with Social Welfare by rotation in alphabetical order; (f) such number of members not exceeding six as may be appointed by the Central Government from amongst the rehabilitation professionals working in voluntary organisations; (g) such number of members not exceeding four as may be appointed by the Central Government from amongst the medical practitioners enrolled under the Indian Medical Council Act, 1956 (102 of 1956) and engaged in rehabilitation of the handicapped; (h) three Members of Parliament of whom two shall be elected by the House of the People and one by the Council of States; 1. Clause (o) omitted by Act 38 of 2000, s. 3 (w.e.f. 4-9-2000). 2 b 3 b d ( f 4 9 2000) ----- (i) such number of members not exceeding three as may be nominated by the Central Government from amongst the social workers who are actively engaged in assisting the disabled; (j) the Member-Secretary, ex officio. (4) The office of member of the Board shall not disqualify its holder for being chosen as, or for being, a Member of either House of Parliament. **4. Term of office of Chairperson and members.—(1) The Chairperson or a member shall hold** office for a term of two years from the date of his appointment or until his successor shall have been duly appointed, whichever is longer. (2) A casual vacancy in the Council shall be filled in accordance with the provisions of section 3 and the person so appointed shall hold office only for the remainder of the term for which the member in whose place he was appointed would have held that office. (3) The Council shall meet at least once in each year at such time and place as may be appointed by the Council and shall observe such rules of procedure in the transaction of business at a meeting as may be prescribed. (4) The Chairperson or, if for any reason, he is unable to attend the meeting of the Council, any member elected by the members present from amongst themselves at the meeting, shall preside at the meeting. (5) All questions which come up before any meeting of the Council shall be decided by a majority of votes of the members present and voting, and in the event of an equality of votes, the Chairperson, or in his absence, the person presiding shall have a second or casting vote. **5. Disqualifications.—No person shall be a member if he—** (a) is, or becomes, of unsound mind or is so declared by a competent court; or (b) is, or has been, convicted of any offence which, in the opinion of the Central Government, involves moral turpitude; or (c) is, or at any time has been, adjudicated as insolvent. **6. Vacation of office by members.—If a member—** (a) becomes subject to any of the disqualifications mentioned in section 5; or (b) is absent without excuse, sufficient in the opinion of the Council, from three consecutive meetings of the Council; or (c) ceases to be enrolled on the Indian Medical Register in the case of a member referred to in clause (g) of sub-section (3) of section 3, his seat shall thereupon become vacant. **7. Executive Committee and other committees.—(1) The Council shall constitute from amongst its** members an Executive Committee and such other committees for general or special purposes as the Council deems necessary to carry out the purposes of this Act. (2) The Executive Committee shall consist of the Chairperson who shall be member ex officio and not less then seven and not more than ten members who shall be nominated by the Council from amongst its members. (3) The Chairperson shall be the Chairperson of the Executive Committee. (4) In addition to the powers and duties conferred and imposed upon it by this Act, the Executive Committee or any other committee shall exercise and discharge such powers and duties as the Council may confer or impose upon it by any regulations which may be made in this behalf. **8. Member-Secretary and employees of Council.—(1) The Central Government shall appoint the** Member-Secretary of the Council to exercise such powers and perform such duties under the direction of the Council as may be prescribed or as may be delegated to him by the Chairperson. (2) The Council shall, with the previous sanction of the Central Government, employ such officers and other employees as it deems necessary to carry out the purpose of this Act ----- (3) The Council shall, with the previous sanction of the Central Government, fix the allowances to be paid to the Chairperson and other members and determine the conditions of service of the Member-Secretary, officers and other employees of the Council. **9. Vacancies in the Council not to invalidate acts, etc.—No act or proceeding of the Council or any** committee thereof shall be called in question on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Council or a committee thereof, as the case may be. **10. Dissolution of Rehabilitation Council and transfer of rights, liabilities and employees of** **Rehabilitation Council to Council.—(1) On and from the date of the constitution of the Council, the** Rehabilitation Council shall stand dissolved and on such dissolution,— (a) all properties and assets, movable and immovable, of, or belonging to, the Rehabilitation Council shall vest in the Council; (b) all the rights and liabilities of the Rehabilitation Council shall be transferred to, and be the rights and liabilities of, the Council; (c) without prejudice to the provisions of clause (b), all liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Rehabilitation Council immediately before that date, for or in connection with the purposes of the said Rehabilitation Council shall be deemed to have been incurred, entered into, or engaged to be done by, with or for, the Council; (d) all sums of money due to the Rehabilitation Council immediately before that date shall be deemed to be due to the Council; (e) all suits and other legal proceedings instituted or which could have been instituted by or against the Rehabilitation Council immediately before that date may be continued or may be instituted by or against the Council; and (f) every employee holding any office under the Rehabilitation Council immediately before that date shall hold his office in the Council by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, retirement and other terminal benefits as he would have held such office as if the Council had not been constituted and shall continue to do so as an employee of the Council or until the expiry of a period of six months from that date if such employee opts not to be the employee of the Council within such period. (2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or any other law for the time being in force, absorption of any employee by the Council in its regular service under this section shall not entitle such employee to any compensation under that Act or other law and no such claim shall be entertained by any court, tribunal or other authority. _Explanation.—In this section, “Rehabilitation Council” means the Rehabilitation Council, a society_ formed and registered under the Societies Registration Act, 1860 (21 of 1860) and functioning as such immediately before the constitution of the Council. CHAPTER III FUNCTIONS OF THE COUNCIL **11. Recognition of qualifications granted by University, etc., in India for rehabilitation** **professionals.—(1) The qualifications granted by any University or other institution in India which are** included in the Schedule shall be recognised qualifications for rehabilitation professionals. (2) Any University or other institution which grants qualification for the rehabilitation professionals not included in the Schedule may apply to the Central Government to have any such qualification recognised, and the Central Government, after consulting the Council may, by notification, amend the Schedule so as to include such qualification therein and any such notification may also direct that an entry shall be made in the last column of the Schedule against such qualification only when granted after a specified date. **12. Recognition of qualifications granted by institutions outside India.—The Council may enter** into negotiations with the authority in any country outside India for settling of a scheme of reciprocity for the recognition of qualifications, and in pursuance of any such scheme, the Central Government may, by ----- should be recognised, and by such notification may also direct that an entry shall be made in the last column of the Schedule declaring that it shall be the recognised qualification only when granted after a specified date. **13. Rights of persons possessing qualifications included in the Schedule to be enrolled.—** (1) Subject to the other provisions contained in this Act, any qualification included in the Schedule shall be sufficient qualification for enrolment on the Register. (2) No person, other than the rehabilitation professional who possesses a recognised rehabilitation qualification and is enrolled on the Register,— (a) shall hold office as rehabilitation professional or any such office (by whatever designation called) in Government or in any institution maintained by a local or other authority; (b) shall practice as rehabilitation professional anywhere in India; (c) shall be entitled to sign or authenticate any certificate required by any law to be signed or authenticated by a rehabilitation professional; (d) shall be entitled to give any evidence in any court as an expert under section 45 of the Indian Evidence Act, 1872 (1 of 1872) on any matter relating to the handicapped: Provided that if a person possesses the recognised rehabilitation professional qualifications on the date of commencement of this Act, he shall be deemed to be an enrolled rehabilitation professional for a period of six months from such commencement, and if he has made an application for enrolment on the Register within said period of six months, till such application is disposed of. 1[(2A) Notwithstanding anything contained in sub-section (2), any person being a doctor or a paramedic in the field of physical medicine and rehabilitation, orthopaedics, ear, nose or throat (ENT), ophthalmology or psychiatry, employed or working in any hospital or establishment owned or controlled by the Central Government or a State Government or any other body funded by the Central or a State Government and notified by the Central Government, may discharge the functions referred to in clauses (a) to (d) of that sub-section.] (3) Any person who acts in contravention of any provision of sub-section (2) shall be punished with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both. **14. Power to require information as to courses of study and examinations.—Every University or** institution in India which grants a recognised qualification shall furnish such information as the Council may, from time to time, require as to the courses of study and examinations to be undergone in order to obtain such qualification, as to the ages at which such courses of study and examinations are required to be undergone and such qualification is conferred and generally as to the requisites for obtaining such qualification. **15. Inspectors as examinations.—(1) The Council shall appoint such number of Inspectors as it may** deem requisite to inspect any University or institution where education for practising as rehabilitation professionals is given or to attend any examination held by any University or institution for the purpose of recommending to the Central Government recognition of qualifications granted by that University or institution as recognised rehabilitation qualifications. (2) The Inspectors appointed under sub-section (1) shall not interfere with the conduct of any training or examination but shall report to the Council on the adequacy of the standards of education including staff, equipment, accommodation, training and other facilities prescribed for giving such education or of the sufficiency of every examination which they attend. (3) The Council shall forward a copy of the report of the Inspector under sub-section (2) to the University or institution concerned and shall also forward a copy, with the remarks of the University or the institution thereon, to the Central Government. **16. Visitors at examinations.—(1) The Council may appoint such number of Visitors as it may deem** requisite to inspect any University or institution wherein education for rehabilitation professionals is given or attend any examination for the purpose of granting recognised rehabilitation qualifications. ----- (2) Any person, whether he is a member of the Council or not, may be appointed as a Visitor under sub-section (1) but a person who is appointed as an Inspector under sub-section (1) of section 15 for any inspection or examination shall not be appointed as a Visitor for the same inspection or examination. (3) The Visitor shall not interfere with the conduct of any training or examination but shall report to the Chairperson on the adequacy of the standards of education including staff, equipment, accommodation, training and other facilities prescribed for giving education to the rehabilitation professionals or on sufficiency of every examination which they attend. (4) The report of a Visitor shall be treated as confidential unless in any particular case the Chairperson otherwise, directs: Provided that if the Central Government requires a copy of the report of a Visitor, the Council shall furnish the same. **17. Withdrawal of recognition.—(1) When upon report by the Inspector or the Visitor it appears to** the Council— (a) that the courses of study and examination to be undergone in or the proficiency required from candidates at any examination held by any University or institution, or (b) that the staff, equipment, accommodation, training and other facilities for instruction and training provided in such University or institution, do not conform to the standard prescribed by the Council, the Council shall make a representation to that effect to the Central Government. (2) After considering such representation, the Central Government may send it to the University or institution with an intimation of the period within which the University or institution may submit its explanation to that Government. (3) On the receipt of the explanation or where no explanation is submitted within the period fixed then, on the expiry of that period, the Central Government after making such further inquiry, if any, as it may think fit, may, by notification, direct that an entry shall be made in the Schedule against the said recognised rehabilitation qualification declaring that it shall be the recognised rehabilitation qualification only when granted before a specified date or that the said recognised rehabilitation qualification if granted to students of a specified University or institution shall be recognised rehabilitation qualification only when granted before a specified date, or as the case may be, that the said recognised rehabilitation qualification shall be recognised rehabilitation qualification in relation to a specified University or institution only when granted after a specified date. **18. Minimum standards of education.—The Council may prescribe the minimum standards of** education required for granting recognised rehabilitation qualification by Universities or institutions in India. **19. Registration in Register.—The Member-Secretary of the Council may, on receipt of an** application made by any person in the prescribed manner enter his name in the Register provided that the Member-Secretary is satisfied that such person possesses the recognised rehabilitation qualification: 1[Provided that the Council shall register vocational instructors and other personnel working in the vocational rehabilitation centres under the Ministry of Labour on recommendation of that Ministry and recognise the vocational rehabilitation centres as manpower development centres: Provided further that the Council shall register personnel working in national institutes and apex institutions on disability under the Ministry of Social Justice and Empowerment on recommendation of that Ministry and recognise the national institutes and apex institutions on disability as manpower development centres.] **20. Privileges of persons who are registered on Register.—Subject to the conditions and** restrictions laid down in this Act regarding engagement in the area of rehabilitation of the handicapped by persons possessing the recognised rehabilitation qualifications, every person whose name is for the time being borne on the Register shall be entitled to practise as a rehabilitation professional in any part of India and to recover in due course of law in respect of such practice any expenses, charges in respect of medicaments or other appliances or any fees to which he may be entitled. ----- **21. Professional conduct and removal of names from Register.—(1) The Council may prescribe** standards of professional conduct and etiquette and a code of ethics for rehabilitation professionals. (2) Regulations made by the Council under sub-section (1) may specify which violations thereof shall constitute infamous conduct in any professional respect, that is to say, professional misconduct, and such provision shall have effect notwithstanding anything contained in any other law for the time being in force. (3) The Council may order that the name of any person shall be removed from the Register where it is satisfied, after giving that person a reasonable opportunity of being heard, and after such further inquiry, if any, as it may deem fit to make,— (i) that his name has been entered in the Register by error or on account of misrepresentation or suppression of a material fact; (ii) that he has been convicted of any offence or has been guilty of any infamous conduct in any professional respect, or has violated the standards of professional conduct and etiquette or the code of ethics prescribed under sub-section (1) which, in the opinion of the Council, renders him unfit to be kept in the Register. (4) An order under sub-section (3) may direct that any person whose name is ordered to be removed from the Register shall be ineligible for registration under this Act either permanently or for such period of years as may be specified. **22. Appeal against order of removal from Register.—(1) Where the name of any person has been** removed from the Register on any ground other than that he is not possessed of the requisite rehabilitation qualifications, he may appeal, in the prescribed manner and subject to such conditions, including conditions as to the payment of a fee, as may be prescribed to the Central Government whose decision thereon shall be final. (2) No appeal under sub-section (1) shall be admitted if it is preferred after the expiry of a [1][period of sixty days] from the date of the order under sub-section (3) of section 21: Provided that an appeal may be admitted after the expiry of the said [1][period of sixty days] if the appellant satisfies the Central Government that he had sufficient cause for not preferring the appeal within the said period. **23. Register.—(1) It shall be the duty of the Member-Secretary to keep and maintain the Register in** accordance with the provisions of this Act and any order made by the Council and from time to time to revise the Register and publish it in the Official Gazette. (2) The Register shall be deemed to be a public document within the meaning of the Indian Evidence Act, 1872 (1 of 1872) and may be proved by a copy thereof. **24. Information to be furnished by Council and publication thereof.—(1) The Council shall** furnish such reports, copies of its minutes, abstracts of its accounts, and other information to the Central Government as that Government may require. (2) The Central Government may publish in such manner as it may think fit, any report, copy, abstract or other information furnished to it by the Council under this section or under section 16. **25. Cognizance of offences.—Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), no court shall take cognizance of an offence punishable under this Act except upon a complaint, in writing, made by any person authorised in this behalf by the Council. **26. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government, Council, Chairperson, members, Member-Secretary or any officer or other employee of the Council for anything which is in good faith done or intended to be done under this Act. **27. Employees of Council to be public servants.—The Chairperson, members, Member-Secretary,** officers and other employees of the Council shall, while acting or purporting to act in pursuance of the provisions of this Act or of any rule and regulation made thereunder, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). ----- **28. Power to make rules.—The Central Government may, by notification, make rules to carry out** the purposes of this Act. **29. Power to make regulations.—The Council may, with the previous sanction of the Central** Government, make, by notification, regulations generally to carry out the purposes of this Act, and without prejudice to the generality of the foregoing power, such regulations may provide for— (a) the management of the property of the Council; (b) the maintenance and audit of the accounts of the Council; (c) the resignation of members of the Council; (d) the powers and duties of the Chairperson; (e) the rules of procedure in the transaction of business under sub-section (3) of section 4; (f) the function of the Executive Committee and other committees, constituted under section 7; (g) the powers and duties of the Member-Secretary under sub-section (1) of section 8; (h) the qualifications, appointment, powers and duties of, and procedure to be followed by, Inspectors and Visitors; (i) the courses and period of study or of training, to be undertaken, the subjects of examination and standards of proficiency therein to be obtained in any University or any institution for grant of recognised rehabilitation qualification; (j) the standards of staff, equipment, accommodation, training and other facilities for study or training of the rehabilitation professionals; (k) the conduct of examinations, qualifications of examiners, and the condition of the admission to such examinations; (l) the standards of professional conduct and etiquette and code of ethics to be observed by rehabilitation professionals under sub-section (1) of section 21; (m) the particulars to be stated, and proof of qualifications to be given, in application for registration under this Act; (n) the manner in which and the conditions subject to which an appeal may be preferred under sub-section (1) of section 22; (o) the fees to be paid on applications and appeals under this Act; (p) any other matter which is to be, or may be, prescribed. **30. Laying of rules and regulations before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. ----- THE SCHEDULE (See section 11) RECOGNISED REHABILITATION QUALIFICATIONS GRANTED BY UNIVERSITIES OR INSTITUTIONS IN INDIA University/Institution Name of Course Qualification Remarks 1 2 3 4 I.—Rehabilitation engineers/technicians National Institute for the Diploma in Prosthetic & Diploma Orthopaedically Handicapped, Orthotic Engineering B.T. Road, Bonhooghly, (2 Years) Calcutta-700 090 Department of Rehabilitation, Course in Prosthetics & Diploma Safdarjang Hospital, New Delhi Orthotics (3 years) Govt. Institute of Rehabilitation of Diploma in Orthotics & Diploma Medicine, K. K. Nagar, Prosthetics Madras-600 083 National Institute of Rehabilitation Diploma in Prosthetic & Diploma Training and Research, Olatpur, Orthotic Engineering P.O. : Bairoi Distt. Cuttack (2 years) (Orissa) All India Institute of Physical B. Sc. (P&O) Degree Medicine & Rehabilitation, Haji Ali, Khadye Marg, Mahalaxmi, Bombay-400 034 School of Prosthetics & Orthotics, Diploma in Prosthetic & Diploma K. K. Nagar, Madras-600 083 Orthotics Engineering (2 Years duration) Schieffelin Leprosy Research and Prosthetic Technician Course Diploma Training Centre, Karigiri, SLR (18 months) Sanatorium, P.O. North Arcot Distt. (S. India) II.—Audiologists and speech therapists All India Institute of Speech and B.Sc. (Speech & Hearing) Degree Hearing, Manasa Gangothri, (3 Years duration) Mysore-576 006 Ali Yavar Jung National Institute B.Sc. (A. & S.T.) Degree for the Hearing Handicapped, (3 Years duration) Bandra (W.), Bombay-400 050 Post-Graduate Institute of Medical B.Sc. (Speech & Hearing) Degree Education and Research, (3 Years duration) Chandigarh-160 012 Topiwala National Medical College Diploma in Audiology & Diploma and BYL Nair Charitable Speech Therapy (B.Sc.) Hospital, Dr. A. L. Nair Road, Bombay-400 008 All India Institute of Medical B.Sc. (Hons.) in Speech & Degree Sciences, Ansari Nagar, Hearing ----- 1 2 3 4 III.—Teachers of special schools and integrated schools for the disabled Shri K. L. Institute for the Deaf, 51, Teachers Training for the Diploma Vidyanagar, Bhavnagar-364 002 Deaf (Gujarat) (1 Year duration) The Educational Audiology and Certificate Course for Certificate Research Centre School for the Teachers of the Deaf Deaf “PONAM”, 67, Napean Sea (10 months duration) Road, Bombay-400 006 V. R. Ruia Mook-Badhir Vidyalaya, Teachers Training Diploma Diploma Pune-30 Course for Deaf Students (1 Year duration) Little Flower Convent Higher Sec. (i) Junior Diploma in Diploma School for the Deaf, 127, G.N. Teaching the Deaf Road, Cathedral P.O., (ii) Senior Diploma in Diploma Madras-600 006 Teaching the Deaf (10 months duration) The Blind Relief Association One Year Diploma Course for Diploma Lal Bahadur Shastri Marg, Training of Teachers of the New Delhi-110003 Blind The Clarke School for the Deaf, (i) Teachers Training for the Diploma “SADHANA”, No. 3, Third Deaf Street, Dr. Radhakrishnan Road, (ii) Teachers Training for the Diploma Mylapore, Madras-600 004 Mentally Retarded Ramakrishna Mission, Blind Boy’s (i) In-Service Primary Level Diploma Academy, Harendrapur-743 508, Teachers of the Visually West Bengal Handicapped (18 months duration) (ii) Secondary Level Teachers Diploma of the Visually Handicapped (10 months duration) Govt. Higher Secondary School for (i) Diploma in Teaching the Diploma the Blind, Poonamallee, Blind Madras-600 056 (6 months at School + 12 months by Correspondence) (ii) Special Examination in Certificate Teaching the Blind (10 months course) Ali Yavar Jung National Institute (i) B.Ed. (Deaf) P.G. Diploma for the Hearing Handicapped, (ii) D.Ed. (Deaf) in Regional Diploma Bandra (W.), Bombay-400 050 Languages IV.—Multipurpose rehabilitation therapists technicians/assistant/worker Department of Rehabilitation, One Year Certificate Course Safdarjang Hospital, for Multi-Rehabilitation New Delhi- 110 029 Worker Certificate ----- 1 2 3 4 V.—Vocational counsellors National Council of Education Diploma Course in Education Diploma Research and Training, and Vocational Guidance Sri Aurobindo Marg, (9 months duration) New Delhi-110 016 All India Institute of Physical PGDR (Vocational Guidance) Diploma Medicine & Rehabilitation, Haji Ali, Khadye Marg, Mahalaxmi, Bombay-400 034 VI.—Diploma in communication disorders Ali Yavar Jung National Institute for the Hearing Handicapped, Bandra (W.), Bombay-400 050 Diploma in Communication Disorders (1 Year) Diploma -----
26-Dec-1992
40
The Central Agricultural University Act, 1992
https://www.indiacode.nic.in/bitstream/123456789/1898/1/199240.pdf
central
# THE CENTRAL AGRICULTURAL UNIVERSITY ACT, 1992 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. The University. 4. Objects of the University. 5. Powers of the University. 6. Jurisdiction. 7. University open to all classes, castes and creed. 8. The Visitor. 9. Officers of the University. 10. The Chancellor. 11. The Vice-Chancellor. 12. Deans and Directors. 13. The Registrar. 14. The Comptroller. 15. Other officers. 16. Authorities of the University. 17. The Board. 18. The Academic Council. 19. The Finance Committee. 20. The Research Programme Committee. 21. The Extension Education Advisory Committee. 22. The Board of Studies. 23. Faculties. 24. Other authorities. 25. Power to make Statutes. 26. Statutes how to be made. 27. Power to make Ordinances. 28. Regulations. 29. Annual report. 30. Annual accounts. 31. Conditions of service of employees. 32. Procedure of appeal and arbitration in disciplinary cases against students. 33. Right to appeal. 34. Provident and pension funds. 35. Disputes as to constitution of University authorities. 36. Constitution of Committees. 37. Filling of casual vacancies. 38. Proceedings of University authorities not invalidated by vacancy. 39. Protection of action taken in good faith. 40. Mode of proof of University records. 1 ----- SECTIONS 41. Power to remove difficulties. 42. Transitional provisions. 43. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. THE SCHEDULE. 2 ----- # THE CENTRAL AGRICULTURAL UNIVERSITY ACT, 1992 ACT NO. 40 OF 1992 [26th December, 1992.] # An Act to provide for the establishment and incorporation of a University for the North-Eastern region for the development of agriculture and for the furtherance of the advancement of learning and prosecution of research in agriculture and allied sciences in that region. BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Central Agricultural University** Act, 1992. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “agriculture” means the basic and applied sciences of the soil and water management, crop production including production of all garden crops, control of plants, pests and diseases, horticulture including floriculture, animal husbandry including veterinary and dairy science, fisheries, forestry including farm forestry, home-science, agricultural engineering and technology, marketing and processing of agricultural and animal husbandry products, land use and management; (d) “Board” means the Board of Management of the University; (e) “Board of Studies” means the Board of Studies of the University; (f) “Chancellor” means the Chancellor of the University; (g) “college” means a constituent college of the University whether located at the headquarters, campus or elsewhere; (h) “Department” means a Department of Studies of the University; (i) “employee” means any person appointed by the University and includes teachers and other staff of the University; (j) “extension education” means the educational activities concerned with the training of orchardists, farmers and other groups serving agriculture, horticulture, fisheries and improved practices related thereto and the various phases of scientific technology related to agriculture and agricultural production including post harvest technology and marketing; (k) “Faculty” means Faculty of the University; (l) “North-Eastern region” means the North-Eastern region of India comprising the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, [2][Nagaland,] Sikkim and Tripura; (m) “Ordinances” means the Ordinances of the University; (n) “Regulations” means the Regulations made by any authority of the University; (o) “Research Advisory Committee” means the Research Advisory Committee of the University; (p) “Statutes” means the Statutes of the University; 1. 26th January, 1993, vide notification No. S.O. 72(E), dated 25th January, 1993, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2. Ins. by Act 45 of 2016, s. 2 (w.e.f. 19-8-2016). 3 ----- (q) “student” means a person enrolled in the University for undergoing a course of studies for obtaining a degree, diploma or other academic distinction duly instituted; (r) “teachers” means Professors, Associate Professors, Assistant Professors, Teaching Faculty Members and their equivalent appointed for imparting instruction or conducting research or extension education programmes or combination of these in the University, college or any institute maintained by the University and designated as teachers by the Ordinances; (s) “University” means the Central Agricultural University established under this Act; (t) “Vice-Chancellor” means the Vice-Chancellor of the University; (u) “Visitor” means the Visitor of the University. **3. The University.—(1) There shall be established a University by the name of the “Central** Agricultural University”. (2) The headquarters of the University shall be at Imphal in the State of Manipur and it may also establish campuses at such other places within its jurisdiction as it may deem fit. (3) The first Chancellor and the first Vice-Chancellor and the first members of the Board, the Academic Council and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership are hereby constituted a body corporate by the name of the Central Agricultural University. (4) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. **4. Objects of the University.—The objects of the University shall be—** (a) to impart education in different branches of agricultural and allied sciences as it may deem fit; (b) to further the advancement of learning and prosecution of research in agriculture and allied sciences; (c) to undertake programmes of extension education in the States under its jurisdiction; and (d) to undertake such other activities as it may, from time to time, determine. **5. Powers of the University.—The University shall have the following powers, namely:—** (i) to make provision for instructions in agricultural and allied sciences; (ii) to make provision for conduct of research in agricultural and allied branches of learning; (iii) to make provision for dissemination of the findings of research and technical information through extension programmes; (iv) to grant, subject to such conditions as it may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examination, evaluation or any other method of testing, on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinction for good and sufficient cause; (v) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (vi) to provide lectures and instructions for field workers, village leaders and other persons not enrolled as regular students of the University and to grant certificates to them as may be prescribed by the Statutes; (vii) to co-operate or collaborate or associate with any other University or authority or institution of higher learning in such manner and for such purposes as the University may determine; (viii) to establish and maintain colleges relating to agriculture, fisheries, dairying, veterinary medicine and animal science, home-science, agricultural engineering, forestry and allied sciences; 4 ----- (ix) to establish and maintain such campuses, special centres, specialised laboratories, libraries, museums or other units for research and instruction as are, in its opinion, necessary for the furtherance of its objects; (x) to create teaching, research and extension education posts and to make appointments thereto; (xi) to create administrative, ministerial and other posts and to make appointments thereto; (xii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiii) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xiv) to provide and maintain residential accommodation for students and employees; (xv) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xvi) to lay down conditions of service of all categories of employees, including their code of conduct; (xvii) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as it may deem necessary; (xviii) to fix, demand and receive such fees and other charges as may be prescribed by the Statutes; (xix) to borrow, with the approval of the Central Government on the security of its property, money for the purpose of the University; (xx) to receive benefactions, donations and gifts and to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties for its purposes; (xxi) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **6. Jurisdiction.—(1) The jurisdiction and responsibility of the University with respect to teaching,** research and programmes of extension education at the University level, in the field of agricultural shall extend to the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, [1][Nagaland,] Sikkim and Tripura. (2) All colleges, research and experimental stations or other institutions coming under the jurisdiction and authority of the University shall be its constituent units under the full management and control of its officers and authorities and no such units shall be recognised as affiliated units. (3) The University may assume responsibility for the training of field extension workers and others and may develop such training centres as may be required in various parts of the States under its jurisdiction. **7. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, handicapped or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **8. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) Subject to the provisions of sub-sections (3) and (4), the Visitor shall have the right to cause an inspection to be made, by such person or persons as he may direct, of the University, its buildings, laboratories, libraries, museums, workshops and equipments, and of any institution or college and also of the examination, instruction and other work conducted or done by the University, and to cause an inquiry 1. Ins. by Act 45 of 2016, s. 3 (w.e.f. 19-8-2016). 5 ----- to be made in like manner in respect of any matter connected with the administration and finances of the University. (3) The Visitor shall, in every case, give notice to the University of his intention to cause an inspection or inquiry to be made and the University shall, on receipt of such notice, have the right to make, within thirty days from the date of receipt of the notice or such other period as the Visitor may determine, such representations to him as it may consider necessary. (4) After considering the representations, if any, made by the University, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (2). (5) Where an inspection or inquiry has been caused to be made by the Visitor, the University shall be entitled to appoint a representative who shall have the right to appear in person and to be heard on such inspection or inquiry. (6) The Visitor may address the Vice-Chancellor with reference to the results of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon as the Visitor may be pleased to offer and on receipt of the address made by the Visitor, the Vice-Chancellor shall communicate forthwith to the Board the results of the inspection or inquiry and the views of the Visitor and the advice tendered by him upon the action to be taken thereon. (7) The Board shall communicate through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken by it upon the results of such inspection or inquiry. (8) Where the Board does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Board, issue such directions as he may think fit and the Board shall be bound to comply with such directions. (9) Without prejudice to the foregoing provisions of this section, the Visitor may, by an order in writing, annul any proceeding of the University which is not in conformity with this Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the University to show cause why such an order should not be made and, if any cause is shown within a reasonable time, he shall consider the same. (10) The Visitor shall have such other powers as may be specified by the Statutes. **9. Officers of the University.—The following shall be the officers of the University, namely:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) Deans; (4) Directors; (5) the Registrar; (6) the Comptroller; and (7) such other officers as may be prescribed by the Statutes. **10. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the Head of the University. (3) The Chancellor shall, if present, preside at the convocations of the University held for conferring degrees. **11. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner as may be prescribed by the Statutes. 6 ----- (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matter: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the Board within three months from the date on which decision on such action is communicated to him and thereupon the Board may confirm, modify or reverse the action taken by the Vice-Chancellor. (4) The Vice-Chancellor, if he is of opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **12. Deans and Directors.—Every Dean and every Director shall be appointed in such manner and** shall exercise such powers and perform such duties as may be prescribed by the Statutes. **13. The Registrar.—(1) The Registrar shall be appointed in such manner as may be prescribed by the** Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **14. The Comptroller.—The Comptroller shall be appointed in such manner and shall exercise such** powers and perform such duties as may be prescribed by the Statutes. **15. Other officers.—The manner of appointment and powers and duties of the other officers of the** University shall be prescribed by the Statutes. **16. Authorities of the University.—The following shall be the authorities of the University,** namely:— (1) the Board; (2) the Academic Council; (3) the Finance Committee; (4) the Research Programme Committee; (5) the Extension Education Advisory Committee; (6) the Board of Studies; and (7) such other authorities as may be prescribed by the Statutes. **17. The Board.—(1) The Board shall be the principal executive body of the University.** (2) The constitution of the Board, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **18. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and Ordinances, have the control 7 ----- and general regulation of, and be responsible for, the maintenance of standards of learning, education, instruction, evaluation and examination within the University and shall exercise such other powers and perform such other functions as may be conferred or imposed upon it by the Statutes. (2) The constitution of the Academic Council and the term of office of its members shall be prescribed by the Statutes. **19. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **20. The Research Programme Committee.—The constitution, powers and functions of the** Research Programme Committee shall be prescribed by the Statutes. **21. The Extension Education Advisory Committee.—The constitution, powers and functions of the** Extension Education Advisory Committee shall be prescribed by the Statutes. **22. The Board of Studies.—The constitution, powers and functions of the Board of Studies shall be** prescribed by the Statutes. **23. Faculties.—The University shall have such Faculties as may be prescribed by the Statutes.** **24. Other authorities.—The constitution, powers and functions of other authorities of the University** referred to in clause (7) of section 16 shall be such as may be prescribed by the Statutes. **25. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of the authorities of the University, as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities, the filling up of vacancies of members, and all other matters relating to those authorities for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University and their emoluments; (e) the appointment of teachers and academic staff working in any other University or organisation for a specific period for undertaking a joint project; (f) the conditions of service of employees including provision for pension, insurance and provident fund, the manner of termination of service and disciplinary action; (g) the principles governing the seniority of service of the employees of the University; (h) the procedure for arbitration in cases of dispute between employees or students and the University; (i) the procedure for appeal to the Board by any employee or student against the action of any officer or authority of the University; (j) the establishment and abolition of Departments, Centres, colleges and institutions; (k) the conferment of honorary degrees; (l) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (m) the institution of fellowships, scholarships, studentships, medals and prizes; (n) the delegation of powers vested in the authorities or officers of the University; (o) the maintenance of discipline among the employees and students; (p) all other matters which by this Act are to be, or may be, prescribed by the Statutes. **26. Statutes how to be made.—(1) The first Statutes are those set out in the Schedule.** 8 ----- (2) The Board may from time to time make Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Board shall not make, amend or repeal any Statute affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Board. (3) Every Statute or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent therefrom or remit it to the Board for consideration. (4) A Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Board is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Board for its inability to comply with such direction, make or amend the Statutes suitably. **27. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees, diplomas and certificates of the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students; (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and the prescribing of special courses of studies for them; (j) the appointment and emoluments of employees other than those for whom provision has been made in the Statutes; (k) the establishment of special centres, specialized laboratories and other committees; (l) the manner of co-operation and collaboration with other Universities and authorities including learned bodies or associations; (m) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (n) such other terms and conditions of service of teachers and other academic staff as are not prescribed by the Statutes; (o) the management of colleges and institutions established by the University; 9 ----- (p) the setting up of a machinery for redressal of grievances of employees; and (q) all other matters which by this Act or the Statutes may be provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended or repealed at any time by the Board in the manner prescribed by the Statutes. **28. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the committees appointed by them and not provided for by this Act, the Statutes or the Ordinances in the manner prescribed by the Statutes. **29. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Board, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Board on or after such date as may be prescribed by the Statutes and the Board shall consider the report in its annual meeting. (2) The Board shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **30. Annual accounts.—(1) The annual accounts of the University shall be prepared under the** directions of the Board and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Board and the Visitor along with the observations of the Board. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Board and the observations of the Board, if any, shall be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Official Gazette. **31. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Board, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal. (4) Every request made by the employee under sub-section (2) shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration Act, 1940 (2 of 1940). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **32. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, 10 ----- appeal to the Board and the Board may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 31 shall, as far as may be, apply to a reference made under this sub-section. **33. Right to appeal.—Every employee or student of the University or of a college or institution** maintained by the University shall, notwithstanding anything contained in this Act, have a right to appeal, within such time as may be prescribed by the Statutes, to the Board against the decision of any officer or authority of the University or any college or an institution, as the case may be, and thereupon the Board may confirm, modify or reverse the decision appealed against. **34. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provision of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **35. Disputes as to constitution of University authorities.—If any question arises as to whether any** person has been duly appointed as, or is entitled to be, a member of any authority of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **36. Constitution of Committees.—Where any authority of the University is given power by this Act** or the Statutes to appoint Committees, such Committees shall, save as otherwise provided, consist of the members of the authority concerned and of such other person, if any, as the authority in each case may think fit. **37. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority of the University shall be filled, as soon as may be, by the person who appointed or co-opted the member whose place has become vacant and person appointed or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **38. Proceedings of University authorities not invalidated by vacancy.—No act or proceedings of** any authority of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **39. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Board, any authority or officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **40. Mode of proof of University records.—A copy of any receipt, application, notice, order,** proceeding, resolution of any authority or Committee of the University, or other documents in possession of the University, or any entry in any register duly maintained by the University, if verified by the Registrar, shall be received as prima facie evidence of such receipt, application, notice, order, proceeding, resolution or documents or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence, notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force. **41. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. 11 ----- (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **42. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and the first Vice-Chancellor shall be appointed by the Visitor and shall hold office for a term of five years; (b) the first Registrar and the first Comptroller shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; (c) the first members of the Board shall be nominated by the Visitor and shall hold office for a term of three years; (d) the first members of the Academic Council shall be nominated by the Visitor and shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. **43. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statutes, Ordinances or Regulations may be applicable. 12 ----- THE SCHEDULE (See section 26) THE STATUTES OF THE UNIVERSITY _The Chancellor_ 1. (1) The Chancellor shall be appointed by the Visitor from a panel of not less than three persons recommended by the Board from amongst persons of eminence in education in general and agricultural sciences in particular: Provided that if the Visitor does not approve of any of the persons so recommended he may call for fresh recommendations from the Board. (2) The Chancellor shall hold office for a term of five years and shall not be eligible for reappointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. _The Vice-Chancellor_ 2. (1) The Vice-Chancellor shall be appointed by the Visitor from a panel of not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for a fresh panel. (2) The Committee referred to in clause (1), shall consist of a nominee of the Visitor, the Director-General of the Indian Council of Agricultural Research and the Secretary to the North-Eastern Council, set-up under section 3 of the North-Eastern Council Act, 1971 (84 of 1971) and the nominee of the Visitor shall be the convener of the Committee. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for reappointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances other than the house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence. (ii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Board with the approval of the Visitor from time to time: Provided that where an employee of the University or a college or an institution maintained by it, or of any other University or any Institution maintained by or affiliated to such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme. 13 ----- (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Board. (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the 1st day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice-Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half pay leave at the rate of twenty days for each completed year of service. This half pay leave may also be availed of as commuted leave on full pay on medical certificate. When commuted leave is availed, twice the amount of half pay leave shall be debited against half pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill-health or any other cause, the senior-most Dean or Director, as the case may be, shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the Vice-Chancellor attends to the duties of his office, as the case may be. _Powers and duties of the Vice-Chancellor_ 3. (1) The Vice-Chancellor shall be ex officio Chairman of the Board, the Academic Council and the Finance Committee and shall, in the absence of the Chancellor, preside at the convocations held for conferring degrees. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority of the University, but shall not be entitled to vote there at unless he is a member of such authority. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed, and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall exercise control over the affairs of the University and shall give effect to the decisions of all the authorities of the University. (5) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he may deem fit. (6) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Board, the Academic Council and the Finance Committee. _Deans of colleges_ 4. (1) Every Dean of a college shall be appointed by the Vice-Chancellor from among the Professors in the college for a period of five years and he shall be eligible for reappointment: Provided that a Dean on attaining the age of sixty years shall cease to hold office as such: Provided further that if at any time there is no Professor in a college, the Vice-Chancellor, or a Dean authorised by the Vice-Chancellor in this behalf, shall exercise the powers of the Dean of the college. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (3) The Dean shall be the Head of the college and shall be responsible for the conduct and maintenance of the standards of teaching and research in the college and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Board of Studies or Committees of the college, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. 14 ----- _Director Instruction_ 5. (1) The Director Instruction shall be appointed by the Board on the recommendation of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Director Instruction shall hold office for a term of five years and shall be eligible for reappointment: Provided that the Director Instruction on attaining the age of sixty years shall cease to hold office as such. (3) The Director Instruction shall be responsible for planning, coordination and supervision for all educational programmes in the various faculties of the University. _The Director of Research_ 6. (1) The Director of Research shall be appointed by the Board on the recommendation of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Director of Research shall hold office for a term of five years and shall be eligible for reappointment: Provided that the Director of Research on attaining the age of sixty years shall cease to hold office as such. (3) The Director of Research shall be responsible for the supervision and coordination of research programmes in the University. _The Director of Extension Education_ 7. (1) The Director of Extension Education shall be appointed by the Board on the recommendation of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Director of Extension Education shall hold office for a term of five years and shall be eligible for reappointment: Provided that the Director of Extension Education on attaining the age of sixty years shall cease to hold office as such. (3) The Director of Extension Education shall be responsible for the supervision and coordination of all Extension Education Programmes of the University. _Registrar_ 8. (1) The Registrar shall be appointed by the Board on the recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Ordinances: Provided that the Registrar shall retire on attaining the age of sixty years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence, or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers, as may be specified in the order of the Board and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: 15 ----- Provided that no such penalty shall be imposed unless the person concerned has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Board against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Board and the Academic Council, but shall not be deemed to be a member of any of these authorities. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Board shall commit to his charge; (b) to issue all notices convening meetings of the Board, the Academic Council and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Board, the Academic Council and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Board and the Academic Council; (e) to arrange for and superintend the examinations of the University in accordance with the manner prescribed by the Ordinances; (f) to supply to the Visitor, copies of the agenda of the meetings of the authorities of the University as soon as they are issued; and the minutes of such meetings; (g) to represent the University in suits or proceedings by or against the University, sign powers-of-attorney and verify pleadings or depute his representatives for the purpose; and (h) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required, from time to time, by the Board or the Vice-Chancellor. _The Comptroller_ 9. (1) The Comptroller shall be appointed by the Board on the recommendation of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Comptroller shall be such as may be prescribed by the Ordinances: Provided that a Comptroller shall retire on attaining the age of sixty years: Provided further that the Comptroller shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Comptroller is vacant or when the Comptroller is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Comptroller shall be ex officio Secretary of the Finance Committee, but shall not be deemed to be a member of such Committee. 16 ----- (6) The Comptroller shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Board or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Board, the Comptroller shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Board for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Board; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Specialised Laboratories, Colleges and Institutions maintained by the University; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Laboratory, College or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Comptroller or the person or persons duly authorised in this behalf by the Board for any money payable to the University shall be sufficient discharge for payment of such money. _Heads of Departments_ 10. (1) Each Department shall have a Head who shall be not below the rank of an Associate Professor and whose duties and functions and terms and conditions of appointment shall be prescribed by the Ordinances: Provided that if there is more than one Professor in any Department, the Head of the Department shall be appointed by the Board on the recommendation of the Vice-Chancellor from among the Professors: Provided further that in the case of Departments where there is only one Professor, the Board shall have the option to appoint, on the recommendation of the Vice-Chancellor, either the Professor or an Associate Professor as the Head of the Department: Provided also that in a Department where there is no Professor, an Associate Professor may be appointed as the Head of the Department by the Board on the recommendation of the Vice-Chancellor: Provided also that if there is no Professor or Reader, in a Department, the Dean of College concerned shall act as the Head of the Department. (2) It shall be open to a Professor or an Associate Professor to decline the offer of appointment as the Head of the Department. (3) A Professor or an Associate Professor appointed as the Head of the Department shall hold office as such for a period of three years and shall be eligible for reappointment. 17 ----- (4) A Head of a Department may resign his office at any time during his tenure of office. (5) A Head of a Department shall perform such functions as may be prescribed by the Ordinances. _Librarians_ 11. (1) Every Librarian shall be appointed by the Board on the recommendation of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) Every Librarian shall exercise such powers and perform such duties as may be assigned to him by the Board. _Constitution, powers and functions of the Board._ 12. (1) The Board shall consist of the following members, namely:— (i) the Vice-Chancellor, ex officio Chairman; (ii) two secretaries from amongst the secretaries in charge of the Departments of Agriculture and Forests of a State in the North-Eastern region to be nominated by the Visitor by rotation in the alphabetical order to represent that State; (iii) two eminent scientists to be nominated by the Visitor; (iv) two distinguished persons representing Agro-based industries to be nominated by the Visitor; (v) the Deputy Director-General (Education) representing the Indian Council of Agricultural Research; (vi) the Secretary to the North-Eastern Council set up under section 3 of the North-Eastern Council Act, 1971 (84 of 1971); (vii) one Dean of college and one Director to be nominated by the Vice-Chancellor on rotational basis; (viii) two persons representing farmers in the States of the North-Eastern region to be nominated by the Vice-Chancellor by rotation in the alphabetical order of those States; (ix) an industrialist or a manufacturer having special knowledge in agricultural development to be nominated by the Visitor; (x) one woman social worker representing women social organisation in the North-Eastern region; (xi) an Advisor (Agriculture), Planning Commission; (xii) a distinguished authority on forestry, social forestry or environment management to be nominated by the Visitor; (xiii) three persons not below the rank of Joint Secretary representing respectively the Departments of the Central Government dealing with Agriculture, Animal Husbandry and Forestry; and (xiv) the Registrar of the University, Secretary. (2) The term of office of the members of the Board, other than ex officio members, shall be two years. (3) The Board shall have the power of management and administration of the revenue and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (4) Subject to the provisions of this Act, the Statutes and the Ordinances, the Board shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of teachers and other academic staff and Deans of colleges, Directors and heads of other institutions maintained by the University; 18 ----- (ii) to appoint such teachers and other academic staff, as may be necessary, and Deans of colleges, Directors and heads of other institutions maintained by the University on the recommendation of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to create administrative, ministerial and other necessary posts and to make appointments thereto in the manner prescribed by the Ordinances; (iv) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (v) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vi) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University, and for that purpose to appoint such agents as it may think fit; (vii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendations of the Finance Committee; (viii) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, shares or securities, from time to time, as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (ix) to transfer or accept transfers of any movable or immovable property on behalf of the University; (x) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xi) to enter into, vary, carry out and cancel contracts on behalf of the University; (xii) to entertain, adjudicate upon, and, if thought fit, to redress any grievances of the employees and students of the University; (xiii) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xiv) to select a common seal for the University and provide for the custody and use of such seal; (xv) to make such special arrangements as may be necessary for the residence and discipline of women students; (xvi) to delegate any of its powers to the Vice-Chancellor, the Deans, Directors, the Registrar or the Comptroller or such other employee or authority of the University or to a committee appointed by it as it may deem fit; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointment; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act, or the Statutes. _Quorum for meetings of the Board_ 13. Seven members of the Board shall form a quorum for a meeting of the Board. _Constitution and powers of the Academic Council_ 14. (1) The Academic Council shall consist of the following members, namely:— (i) the Vice-Chancellor, ex officio member; 19 ----- (ii) all the Deans of the Colleges of the University; (iii) the Director of Research of the University; (iv) the Director of Extension Education of the University; (v) the Director Instruction; (vi) a Librarian to be nominated by the Vice-Chancellor on rotational basis; (vii) five outstanding teachers to be co-opted from outside the University representing different Faculties; (viii) seven heads of the Department to be nominated by the Vice-Chancellor; (ix) the Education Officer or his representative to be nominated by the North-Eastern Council set up under section 3 of the North-Eastern Council Act, 1971 (84 of 1971); (x) the Registrar of the University, ex officio Member-Secretary. (2) The term of office of the members of the Academic Council other than _ex officio members shall_ be two years. (3) Subject to the Act, the Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instructions, co-operative teaching among colleges and institutions, evaluation of research or improvements in academic standards; (b) to bring about inter-college co-ordination to establish or appoint committees or boards, for taking up projects on an inter-college basis; (c) to consider matters of general academic interest either on its own initiative or on a reference by a college or the Board and to take appropriate action thereon; and (d) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residences, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. _Quorum for meetings of the Academic Council_ 15. Nine members of the Academic Council shall form a quorum for a meeting of the Academic Council. _Board of Studies_ 16. (1) Each Department shall have a Board of Studies. (2) The constitution of a Board of Studies and the term of office of its members shall be provided by the Ordinances. (3) The functions of a Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors of research; and (c) measures for the improvement of the standard of teaching and research: Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. 20 ----- _Finance Committee_ 17. (1) The Finance Committee shall consist of the following members, namely:— (i) the Vice-Chancellor; (ii) the Financial Adviser, Indian Council of Agricultural Research; (iii) three persons to be nominated by the Board, out of whom at least one shall be a member of the Board; (iv) three persons to be nominated by the Visitor; and (v) the Comptroller of the University, Member-Secretary. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) The members of the Finance Committee, other than _ex officio members, shall hold office for a_ term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least twice a year to examine the accounts and to scrutinise proposals for expenditure. (6) Every proposal relating to creation of posts, and those items which have not been included in the Budget, should be examined by the Finance Committee before they are considered by the Board. (7) The annual accounts and the financial estimates of the University prepared by the Comptroller shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Board for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). _Selection Committees_ 18. (1) There shall be a Selection Committee for making recommendations to the Board for appointment to the posts of teachers, Comptroller, Registrar, Librarian, Deans of colleges, Directors and heads of other institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in column 1 of the Table below shall consist of the Vice-Chancellor, Director Instruction, Director of Research, Director of Extension Education, a nominee of the Visitor and the persons specified in the corresponding entry in column 2 of the said Table: TABLE 1 2 Professor (i) The Head of the Department concerned if he is a Professor. (ii) One Professor to be nominated by the Vice-Chancellor. (iii) Three persons not in the service of the University, nominated by the Board, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Associate Professor/ Assistant Professor (i) The Head of the Department concerned. (ii) One Professor to be nominated by the Vice-Chancellor. 21 ----- 1 2 (iii) Two persons not in the service of the University nominated by the Board, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Associate Professor/Assistant Professor will be concerned. Registrar, Comptroller (i) Two members of the Board nominated by it; and (ii) One person not in the service of the University, nominated by the Board. Librarian Two persons not in the service of the University, who have special knowledge of the subject of the Library Science/Library Administration to be nominated by the Board. Dean of college, Directors or head of other institution maintained by the University Three persons not in the service of the University of whom two shall be nominated by the Board and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the college or institution. NOTES: 1. Where the appointment is being made for an inter-disciplinary project the head of the project shall be deemed to be the Head of the Department concerned. 2. The Professor to be nominated shall be Professor concerned with the speciality for which the selection is being made and that the Vice-Chancellor shall consult the Head of the Department and the Dean of college before nominating the Professor. (3) The Vice-Chancellor, or in his absence, his nominee shall preside at the meetings of a Selection Committee: Provided that the meetings of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor’s nominee and the persons nominated by the Board under clause (2): Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor’s nominee and the persons nominated by the Board is four in all, at least three of them attend the meeting; and (b) where the number of Visitor’s nominee and the persons nominated by the Board is three in all, at least two of them attend the meeting. (4) The meeting of a Selection Committee shall be convened by the Vice-Chancellor or in his absence by his nominee. (5) The procedure to be followed by a Selection Committee in making recommendations shall be laid down in the Ordinances. (6) If the Board is unable to accept the recommendations made by a Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (7) Appointments to temporary posts shall be made in the manner indicated below:— (i) If the temporary vacancy is for a duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: 22 ----- Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis by a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the college concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in case sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. _Special mode of appointment_ 19. (1) Notwithstanding anything contained in Statute 18, the Board may invite a person of high academic distinction and professional attainments to accept a post of Professor or Associate Professor or any other academic post in the University, as the case may be, on such terms and conditions as it deems fit, and on the person agreeing to do so appoint him to the post. (2) The Board may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. _Appointment for a fixed tenure_ 20. The Board may appoint a person selected in accordance with the procedure laid down in Statute 18 for a fixed tenure on such terms and conditions as it deems fit. _Recognised teachers_ 21. (1) The qualifications of recognised teachers shall be such as may be prescribed by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down in the Ordinances. (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. (6) Any person aggrieved by an order of withdrawal under clause (5) may, within three months from the date of communication to him of such order, appeal to the Board which may pass such orders thereon as it thinks fit. 23 ----- _Committees_ 22. (1) The authorities of the University specified in section 16 may appoint as many standing or special committees as it may deem fit, and may appoint to such committees persons who are not members of such authority. (2) Any such committee appointed under clause (1) may deal with any subject delegated to it subject to confirmation by the authority appointing it. _Terms and conditions of service and code of conduct of the teachers, etc._ 23. (1) All the teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (3) A copy of every contract referred to in clause (2) shall be deposited with the Registrar. _Terms and conditions of service and code of conduct of other employees_ 24. All the employees of the University, other than the teachers and other academic staff of the University, shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. _Seniority list_ 25. (1) Whenever, in accordance with the Statutes, any person is to hold an office or be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and, in accordance with such other principles as the Board may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain, in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Board whose decision thereon shall be final. _Removal of employees of the University_ 26. (1) Where there is an allegation of misconduct against a teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee, may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Board the circumstances in which the order was made: Provided that the Board may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Board in respect of teachers and other academic staff, and the appointing authority, in respect of other employees, shall have the power to remove a teacher or a member of the academic staff, or as the case may be, other employees on grounds of misconduct. (3) Save as aforesaid, the Board, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months’ notice or on payment of three months’ salary in lieu thereof. 24 ----- (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months’ notice in writing to the Board or the appointing authority, as the case may be, or by paying three months’ salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month’s notice in writing to the Board or, as the case may be, the appointing authority or by paying one month’s salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Board or the appointing authority, as the case may be. _Honorary degrees_ 27. (1) The Board may, on the recommendation of the Academic Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Board may, on its own motion, make such proposals. (2) The Board may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. _Withdrawal of degrees, etc._ 28. The Board may, by a special resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Board. _Maintenance of discipline among students of the University_ 29. (1) All powers relating to discipline and disciplinary action in relation to students of the University shall vest in the Vice-Chancellor. (2) The Vice-Chancellor may delegate all or any of his powers as he deems proper to such officers as he may specify in this behalf. (3) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of his powers, by order, direct that any student or students be expelled, or rusticated, for a specified period, or be not admitted to a course or courses of study in a college, institution or Department of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, college, institution or Department for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. 25 ----- (4) The Deans of colleges, institutions and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective colleges, institutions and teaching Departments in the University as may be necessary for the proper conduct of such colleges, institutions and teaching in the Departments. (5) Without prejudice to the powers of the Vice-Chancellor, the Deans and other persons specified in clause (4), detailed rules of discipline and proper conduct shall be made by the University. The Deans of colleges, institutions and Heads of teaching Departments in the University may also make the supplementary rules as they deem necessary for the aforesaid purposes. (6) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. _Maintenance of discipline among students of colleges, etc._ 30. All powers relating to discipline and disciplinary action in relation to students of a college or an institution maintained by the University, shall vest in the Dean of the college or institution, as the case may be, in accordance with the procedure prescribed by the Ordinances. _Advisory Committee_ 31. Every college or institution maintained by the University shall have an Advisory Committee consisting of not more than fifteen persons which shall consist of, among others, three teachers including the Dean of the college or institution, and two teachers of the University nominated by the Board. _Convocations_ 32. Convocations of the University for the conferring of degrees or for other purposes shall be held in such manner as may be prescribed by the Ordinances. _Acting Chairman_ 33. When no provision is made for a Chairman to preside over a meeting of any authority of the University or any committee of such authority or when the Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. _Resignation_ 34. Any member, other than an _ex officio member of the Board, Academic Council or any other_ authority of the University or any committees of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. _Disqualifications_ 35. (1) A person shall be disqualified for being chosen as, and for being, a member of any of the authorities of the University,— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for a period of not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision thereon shall be final and no suit or other proceeding shall lie in any civil court against such decision. _Residence condition for membership and office_ 36. Notwithstanding anything contained in the Statutes, a person who is not ordinarily resident in India shall be eligible to be an officer of the University or a member of any authority of the University. 26 ----- _Membership of authorities by virtue of membership of other bodies_ 37. Notwithstanding anything contained in the Statutes, a person who holds any post in the University or is a member of any authority of the University in his capacity as a member of a particular authority or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or the holder of that particular appointment, as the case may be. _Alumni Association_ 38. (1) There shall be an Alumni Association for the University. (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumini Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of the election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year’s membership shall not apply in the case of the first election. _Students’ Council_ 39. (1) There shall be constituted in the University, a Students’ Council for every academic year, consisting of— (i) the Director Instruction who shall be the Chairman of the Students’ Council; (ii) all students who have won prizes in the previous academic year in the fields of studies, fine arts, sports and extension work; (iii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports, activities and all-round development of personality: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students’ Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students’ Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students’ welfare and other matters of importance in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion (3) The Students’ Council shall meet at least once in an academic year preferably in the beginning of that year. _Ordinances how made_ 40. (1) The first Ordinances made under sub-section (2) of section 27 may be amended or repealed at any time by the Board in the manner specified below. (2) No Ordinance in respect of the matters enumerated in section 27, other than those enumerated in clause (n) of sub-section (1) thereof, shall be made by the Board unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Board shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for reconsideration, either in whole or in part, together with any amendment which the Board may suggest. (4) Where the Board has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Board which shall either adopt it or refer it to the Visitor whose decision shall be final. 27 ----- (5) Every Ordinance made by the Board shall come into effect immediately. (6) Every Ordinance made by the Board shall be submitted to the Visitor within two weeks from the date of its adoption. The Visitor shall have the power to direct the University within four weeks of the receipt of the Ordinance to suspend the operation of any such Ordinance and he shall, as soon as possible, inform the Board about his objection to the proposed Ordinance. The Visitor may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. _Regulations_ 41. (1) The authorities of the University may make Regulations consistent with the Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Board may direct the amendment in such manner as it may specify, of any Regulation made under the Statutes or the annulment of any such Regulation. _Delegation of powers_ 42. Subject to the provisions of the Act and the Statutes, any officer or authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 28 -----
29-Dec-1992
41
The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992
https://www.indiacode.nic.in/bitstream/123456789/1958/3/A1992-41.pdf
central
# THE INFANT MILK SUBSTITUTES, FEEDING BOTTLES AND INFANT FOODS (REGULATION OF PRODUCTION, SUPPLY AND DISTRIBUTION) ACT, 1992 _____________ ARRANGEMENT OF SECTIONS _____________ SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Certain prohibitions in relation to infant milk substitutes, feeding bottles and infant foods. 4. Prohibition of incentives for the use or sale of infant milk substitutes or feeding bottles. 5. Donations of infant milk substitutes or feeding bottles or equipment of materials relating thereto. 6. Information on containers and labels of infant milk substitutes of infant foods. 7. Educational and other materials relating to feeding of infants to contain certain particulars. 8. Health care system. 9. Inducement to health worker for promoting use of infant milk substitutes, etc. 10. Special provision relating to employees of person who produces, supplies, distributes or sells infant milk substitutes, etc. 11. Standards of infant milk substitutes, feeding bottles or infant foods. 12. Powers of entry and search. 13. Power to seize infant milk substitutes, etc., or containers thereof. 14. Confiscation. 15. Power to give option to pay cost in lieu of confiscation. 16. Confiscation not to interfere with other punishments. 17. Adjudication. 18. Giving of opportunity to the owner of the seized infant milk substitute or feeding bottle or infant food or container thereof. 19. Appeal. 20. Penalty. 21. Cognizance of offences. 22. Offences by companies. 23. Offences to be cognizable and bailable. 24. Protection of action taken in good faith. 25. Application of Act 37 of 1954 not barred. 26. Power to make rules. ----- # THE INFANT MILK SUBSTITUTES, FEEDING BOTTLES AND INFANT FOODS (REGULATION OF PRODUCTION, SUPPLY AND DISTRIBUTION) ACT, 1992 ACT NO. 41 OF 1992 [29th December, 1992.] # An Act to provide for the regulation of production, supply and distribution of infant milk substitutes, feeding bottles and infant foods with a view to the protection and promotion of breast-feeding and ensuring the proper use of infant foods and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the Infant Milk Substitutes,** Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** 2[(a) “advertisement” includes any notice, circular, label, wrapper or any other document or visible representation or announcement made by means of any light, sound, smoke or gas or by means of electronic transmission or by audio or visual transmission;] (b) “container” means a box, bottle, casket, tin, can, barrel, case, tube, receptacle, sack, wrapper or other thing in which any infant milk substitute, feeding bottle or infant food is placed or packed for sale or distribution; (c) “feeding bottle” means any bottle or receptacle used for the purpose of feeding infant milk substitutes, and includes a teat and a valve attached or capable of being attached to such bottle or receptacle; (d) “health care system” means an institution or organisation engaged, either directly or indirectly, in health care for mothers, infants or pregnant women, and includes a health worker in private practice, [3][a pharmacy, drug store and any association of health workers]; (e) “health worker” means a person engaged in health care for mothers, infants or pregnant women; (f) “infant food” means any food (by whatever name called) being marketed or otherwise represented as a complement to mother’s milk to meet the growing nutritional needs of the infant 4[after the age of six months and up to the age of two years]; (g) “infant milk substitute” means any food being marketed or otherwise represented as a partial or total replacement for mother’s milk [5][for infant up to the age of two years]; (h) “label” means a display of written, marked, stamped, printed or graphic matter affixed to, or appearing upon, any container; (i) “prescribed” means prescribed by rules made under this Act; 6[(j) “promotion” means to employ directly or indirectly any method of encouraging any person to purchase or use infant milk substitute, feeding bottle or infant food.] 1. 1st August 1993, _vide notification No. G.S.R. 527(E), dated 31st July, 1993,_ _see_ Gazette of India, Extraordinary, Part I, sec. 3(i). 2. Subs. by Act 38 of 2003, s. 2, for clause (a) (w.e.f. 1-11-2003). 3. Subs. by s. 2, ibid., for “but does not include a pharmacy or drug store” (w.e.f. 1-11-2003). 4. Subs. by s. 2, ibid., for “after the age of four months” (w.e.f. 1-11-2003). ----- (2) Any reference in this Act to any other enactment or any provision thereof, shall, in relation to an area in which such enactment or such provision is not in force, be construed as a reference to the corresponding law or the relevant provision of the corresponding law, if any, in force in that area. **3. Certain prohibitions in relation to infant milk substitutes, feeding bottles and infant foods.—** No person shall— (a) advertise, or take part in the publication of any advertisement, for the distribution, sale or supply of infant milk substitutes [1][, feeding bottles or infant foods]; or (b) give an impression or create a belief in any manner that feeding of [2][infant milk substitutes and infant foods are] equivalent to, or better than, mother's milk; or 3[(c) take part in the promotion of infant milk substitutes, feeding bottles or infant foods.] **4. Prohibition of incentives for use or sale of infant milk substitutes or [4][feeding bottles or infant** **foods].—No person shall—** (a) supply or distribute samples of infant milk substitutes or [4][feeding bottles or infant foods] or gifts of utensils or other articles; or (b) contact any pregnant woman or the mother of an infant; or (c) offer inducement of any other kind, for the purpose of promoting the use or sale of infant milk substitutes or [4][feeding bottles or infant foods]. **5. Donations of infant milk substitutes or feeding or equipment or materials relating** **thereto.—Subject to the provisions of sub-section (4) of section 8, no person shall donate or distribute—** (a) infant milk substitutes or [5][feeding bottles or infant foods] to any other person except to an orphanage; (b) any informational or educational equipment or material relating to infant milk substitutes or 5[feeding bottles or infant foods]: Provided that nothing in this clause shall apply to the donation or distribution, subject to such conditions and restrictions as may be prescribed, of such equipment or material through the health care system. **6. Information on containers and labels of infant milk substitutes or infant foods.—(1) Without** prejudice to the provisions of [6][the Food Safety and Standards Act, 2006] and the rules made thereunder, no person shall produce, supply or distribute any infant milk substitute or infant food unless every container thereof or any label affixed thereto indicates in a clear, conspicuous and in an easily readable and understandable manner, the words “important notice” in capital letters in such language as may be prescribed and indicating thereunder the following particulars in the same language, namely:— (a) a statement “mother’s milk is best for your baby” in capital letters; (b) a statement that infant milk substitute or infant food should be used only on the advice of a health worker as to the need for its use and the proper method of its use; (c) a warning that infant milk substitute or infant food is not the sole source of nourishment of an infant; (d) the instructions for its appropriate preparation and a warning against the health hazards of its inappropriate preparation; (e) the ingredients used; (f) the composition or analysis; (g) the storage conditions required; 1. Subs. by Act 38 of 2003, s. 3, for “or feeding bottles” (w.e.f. 1-11-2003). 2. Subs. by s. 3, ibid., for “infant milk substitutes is” (w.e.f. 1-11-2003). 3. Subs. by s. 3, ibid., for clause (c) (w.e.f. 1-11-2003). 4. Subs. by s. 4, ibid., for “feeding bottles” (w.e.f. 1-11-2003). ----- (h) the batch number, date of its manufacture and the date before which it is to be consumed, taking into account the climatic and storage conditions of the country; (i) such other particulars as may be prescribed. (2) No container or label referred to in sub-section (1) relating to [1][infant milk substitute or infant food] shall— (a) have pictures of an infant or a woman or both; or (b) have pictures or other graphic material or phrases designed to increase the saleability of 1[infant milk substitute or infant food]; or (c) use on it the word “humanised” or “maternalised” or any other similar word; or (d) bear on it such other particulars as may be prescribed. **7. Educational and other materials relating to feeding of infants to contain certain** **particulars.—(1)** [2][Every educational or other material including advertisements or material relating to promotion of infant milk substitutes, feeding bottles and infant foods], whether audio or visual, dealing with pre-natal or post-natal care or with the feeding of an infant and intended to reach pregnant women or mothers of infants shall include clear information relating to— (a) the benefits and superiority of breast-feeding; (b) the preparation for, and the continuance of, breast-feeding; (c) the harmful effects on breast-feeding due to the partial adoption of bottle feeding; (d) the difficulties in reverting to breast-feeding of infants after a period of feeding by infant milk substitute; (e) the financial and social implications in making use of infant milk substitutes and feeding bottles; (f) the health hazards of improper use of infant milk substitutes and feeding bottles; 3[(fa) the date of printing and publication of such material and the name of the printer and publisher;] (g) such other matters as may be prescribed. (2) No material referred to in sub-section (1) shall be utilised to promote the use or sale of infant milk substitutes or [4][feeding bottles or infant foods]. **8. Health care system.—(1) No person shall use any health care system for the display of placards or** posters relating to, or for the distribution of, materials for the purpose of promoting the use or sale of infant milk substitutes or feeding bottles or infant foods: Provided that the provisions of this sub-section shall not apply to— (a) the donation or distribution of informational or educational equipment or material made in accordance with the proviso to clause (b) of section 5; and (b) the dissemination of information to a health worker about the scientific and factual matters relating to the use of infant milk substitutes or feeding bottles or infant foods along with the information specified in sub-section (1) of section 7. (2) No person who produces, supplies, distributes or sells infant milk substitutes or feeding bottles or infant foods shall make any payment to any person who works in the health care system for the purpose of promoting the use or sale of such substitutes or bottles or foods. (3) No person, other than a health worker, shall demonstrate feeding with infant milk substitutes or infant foods to a mother of an infant or to any member of her family and such health worker shall also 1. Subs. by Act 38 of 2003, s. 6, for “infant milk substitute” (w.e.f. 1-11-2003). 2. Subs. by s. 7, ibid., for “Every educational or other material” (w.e.f. 1-11-2003). ----- clearly explain to such mother or such other member the hazards of improper use of infant milk substitutes or feeding bottles or infant foods. (4) No person, other than an institution or organisation, engaged in health care for mothers, infants or pregnant women, shall distribute infant milk substitutes or feeding bottles to a mother who cannot resort to breast-feeding and who cannot afford to purchase infant milk substitutes or feeding bottles. (5) An orphanage may purchase infant milk substitutes or feeding bottles at a price lower than their sale price for the purpose of utilising them in the said orphanage. _Explanation.—For the purposes of this sub-section, such purchases shall not amount to an_ inducement for promoting the use or sale of infant milk substitutes or feeding bottles. **9. Inducement to health worker for promoting use of infant milk substitutes, etc.—(1) No person** who produces, supplies, distributes or sells infant milk substitutes or feeding bottles or infant foods shall offer or give, directly or indirectly, any financial inducements or gifts to a health worker or to any member of his family for the purpose of promoting the use of such substitutes or bottles or foods. 1[(2) No producer, supplier or distributor referred to in sub-section (1), shall offer or give any contribution or pecuniary benefit to a health worker or any association of health workers, including funding of seminar, meeting, conference, educational course, contest, fellowship, research work or sponsorship.] **10. Special provision relating to employees of person who produces, supplies distributes or sells** **infant milk substitutes, etc.—(1) No person who produces, supplies, distributes or sells infant milk** substitutes or feeding bottles or infant foods shall fix the remuneration of any of his employees or give any commission to such employees on the basis of the volume of sale of such substitutes or bottles or foods made by such employees. (2) The employees of such person shall not perform any function which relates to educating a pregnant woman or mother of an infant on pre-natal or post-natal care of the infant. **11. Standards of infant milk substitutes, feeding bottles or infant foods.—(1) No person shall sell** or otherwise distribute any infant milk substitute or infant food unless it conforms to the standards, specified for such substitute or food under [2][the Food Safety and Standards Act, 2006], and the rules made thereunder and the container thereof has the relevant Standard Mark specified by the Bureau of Indian Standards established under section 3 of the Bureau of Indian Standards Act, 1986 (63 of 1986) to indicate that the infant milk substitute or infant food conforms to such standards: Provided that where no standards have been specified for any infant milk substitute or infant food under [2][the Food Safety and Standards Act, 2006], no person shall sell or otherwise distribute such substitute or food unless he has obtained the approval of the Central Government in relation to such substitute or food and the label affixed to the container thereof under the rules made under that Act. (2) No person shall sell or otherwise distribute any feeding bottle unless it conforms to the Standard Mark specified by the Bureau of Indian Standards referred to in sub-section (1) for feeding bottles and such mark is affixed on its container. **12. Powers of entry and search.—(1)** [3][Any Food Safety Officer appointed under the Food Safety and Standards Act, 2006] (hereinafter referred to as the [4][the Food Safety Officer]) or any officer not below the rank of a Class I officer authorised in this behalf by the State Government (hereinafter referred to as the authorised officer) may, if he has any reason to believe that any provision of section 6 or section 11 has been or is being contravened, enter and search at any reasonable time any factory, building, business premises or any other place where any trade or commerce in infant milk substitutes or feeding bottles or infant foods is carried on or such substitutes or bottles or foods are produced, supplied or distributed. (2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches and seizures shall, so far as may be, apply to every search or seizure made under this Act. 1. Subs. by Act 38 of 2003, s. 8, for sub-section (2) (w.e.f. 1-11-2003). 2. Subs. by Act 34 of 2006, s. 100, for “the Prevention of Food Adulteration Act, 1954 (37 of 1954)” (w.e.f. 29-7-2010). 3. Subs. by s. 100, ibid., for “Any food inspector appointed under section 9 of the Prevention of Food Adulteration Act, 1954 (37 ----- **13. Power to seize infant milk substitutes, etc., or containers thereof.—(1) If any** [1][the Food Safety Officer] or authorised officer has reason to believe that in respect of any infant milk substitute or feeding bottle or infant food or container thereof, the provisions of this Act have been or are being contravened, he may seize such substitute or bottle or food or container. (2) No such substitute or food or bottle or container shall be retained by any [1][the Food Safety Officer] or authorised officer for a period exceeding ninety days from the date of its seizure unless the approval of the District Judge, within the local limits of whose jurisdiction such seizure has been made, has been obtained for such retention. **14. Confiscation.—Any infant milk substitute or feeding bottle or infant food or container thereof, in** respect of which any provision of this Act has been or is being contravened, shall be liable to confiscation: Provided that where it is established to the satisfaction of the court adjudging the confiscation that the person in whose possession, power or control any such substitute or bottle or food or container is found is not responsible for the contravention of the provisions of this Act, the court may, instead of making an order for the confiscation of such substitute or bottle or food or container, make such other order authorised by this Act against the person guilty of the breach of the provisions of this Act as it may think fit. **15. Power to give option to pay cost in lieu of confiscation.—(1) Whenever any confiscation is** authorised by this Act, the court adjudging it may, subject to such conditions as may be specified in the order adjudging the confiscation, give to the owner thereof an option to pay in lieu of confiscation such cost not exceeding the value of the infant milk substitute or feeding bottle or infant food or container thereof in respect of which the confiscation is authorised as the court thinks fit. (2) On payment of the cost ordered by the court the seized infant milk substitute or feeding bottle or infant food or container shall be returned to the person from whom it was seized on the condition that such person shall, before making any distribution, sale or supply of such substitute or bottle or food or container, give effect to the provisions of this Act. **16. Confiscation not to interfere with other punishments.—No confiscation made or cost ordered** to be paid under this Act shall prevent the infliction of any punishment to which the person affected thereby is liable under the provisions of this Act or under any other law. **17. Adjudication.—Any confiscation may be adjudged or costs may be ordered to be paid,—** (a) without any limit, by the principal civil court of original jurisdiction within the local limits of whose jurisdiction such confiscation has been made or costs have been ordered to be paid, as the case may be; (b) subject to such limits as may be specified by the Central Government in this behalf, by such other court, not below a civil court having pecuniary jurisdiction exceeding five thousand rupees, as the Central Government may, by notification in the Official Gazette, authorise in this behalf. **18. Giving of opportunity to the owner of the seized infant milk substitute or feeding bottle or** **infant food or container thereof.—(1) No order adjudicating confiscation or directing payment of costs** shall be made unless the owner of the infant milk substitute or feeding bottle or infant food or container thereof has been given a notice in writing informing him of the grounds on which it is proposed to confiscate such substitute or bottle or food or container and giving him a reasonable opportunity of making a representation in writing, within such reasonable time as may be specified in the notice, against the confiscation and if he so desires, of being heard in the matter: Provided that where no such notice is given within a period of ninety days from the date of the seizure of the infant milk substitute or feeding bottle or infant food or container thereof, such substitute or bottle or food or container shall be returned after the expiry of that period to the person from whose possession it was seized. (2) Save as otherwise provided in sub-section (1), the provisions of the Code of Civil Procedure, 1908 (5 of 1908), shall, so far as may be, apply to every proceeding referred to in sub-section (1). ----- **19. Appeal.—(1) Any person aggrieved by any decision of the court adjudicating a confiscation or** ordering the payment of costs may prefer an appeal to the court to which an appeal lies from the decision of such court. (2) The appellate court may, after giving the appellant an opportunity of being heard, pass such order as it thinks fit confirming, modifying or revising the decision or order appealed against or may send back the case with such directions as it may think fit for a fresh decision or adjudication, as the case may be, after taking additional evidence if necessary: Provided that an order enhancing any fine in lieu of confiscation or for confiscating goods of greater value shall not be made under this section unless the appellant has had an opportunity of making a representation and if he so desires of being heard in his defence. (3) No further appeal shall lie against the order of the court made under sub-section (2). **20. Penalty.—(1) Any person who contravenes the provisions of section 3, 4, 5, 7, 8, 9, 10 or** sub-section (2) of [1][section 11 and the rules made under section 26 of the Act] shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to five thousand rupees, or with both. (2) Any person who contravenes the provisions of section 6 or sub-section (1) of [1][section 11 and the rules made under section 26 of the Act] shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than two thousand rupees: Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term which shall not be less than three months but which may extend to two years and with fine which shall not be less than one thousand rupees. **21. Cognizance of offences.—(1) Save as otherwise provided in section 173 of the Code of Criminal** Procedure, 1973 (2 of 1974), no court shall take cognizance of any offence punishable under this Act except upon a complaint in writing made by— 2[(a) the Designated Officer or the Food Safety Officer directed under sub-section (5) of section 42 of the Food Safety and Standards Act, 2006 (34 of 2006); or] (b) an officer not below the rank of a Class I officer authorised in this behalf, by general or special order, by the Government; or (c) a representative of such voluntary organisation engaged in the field of child welfare and development and child nutrition as the Government may, by notification in the Official Gazette, authorise in this behalf. (2) Where a complaint has been made by a representative of the voluntary organisation authorised under clause (c) of sub-section (1) and the court has issued a summons or, as the case may be, a warrant under sub-section (1) of section 204 of the Code of Criminal Procedure, 1973 (2 of 1974), the Assistant Public Prosecutor for that court shall take charge of the case and conduct the prosecution. **22. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. ----- _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm of other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **23. Offences to be cognizable and bailable.—Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), an offence punishable under this Act shall be— (a) bailable; (b) cognizable. **24. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or any State Government or any officer of the Central Government 1[or a representative of such voluntary organisation which is notified under clause (c) of sub-section (1) of section 21] for anything which is in good faith done or intended to be done under this Act. **25. Application of Act 37 of 1954 not barred.—The provisions of this Act, or the rules made** thereunder shall be in addition to, and not in derogation of, [2][the Food Safety and Standards Act, 2006], or the rules made thereunder. **26. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the conditions and restrictions subject to which educational equipment and other material may be donated or distributed under the proviso to clause (b) of section 5; (b) the language in which the notice and other particulars shall be indicated under sub-section (1) of section 6; (c) the particulars which are to be indicated under clause (i) of sub-section (1) of section 6; (d) the particulars which a container or label shall not bear under clause (d) of sub-section (2) of section 6; (e) the matters to be included in the information which reaches pregnant women or mothers of infants under clause (g) of sub-section (1) of section 7; (f) any other matter which is required to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. -----
2-Apr-1993
25
The Gold Bonds (Immunities and Exemptions) Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1924/1/A1993-25.pdf
central
# THE GOLD BONDS (IMMUNITIES AND EXEMPTIONS) ACT, 1993 ________ ARRANGEMENT OF SECTIONS ______ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Gold Bonds Scheme. 4. Immunities. 5. Gold Bonds not to be taken into account in certain cases. 6. Repeal and savings. ----- # THE GOLD BONDS (IMMUNITIES AND EXEMPTIONS) ACT, 1993 ACT NO. 25 OF 1993 [2nd April, 1993.] # An Act to provide for certain immunities to the subscribers of the Gold Bonds and for certain exemptions from direct taxes in relation to such Bonds and for matters connected therewith or incidental thereto. WHEREAS with a view to mobilising the idle gold resources of residents in India, it is expedient to provide for certain immunities and exemptions to render it possible for such residents to subscribe to Gold Bonds; BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Gold Bonds (Immunities and** Exemptions) Act, 1993. (2) It shall be deemed to have come into force on the 31st day of January, 1993. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Gold Bonds” means the Gold Bonds, 1998, issued by the Central Government in accordance with the scheme framed by that Government under section 3; (b) “subscriber” means an individual, a Hindu undivided family, trustees of a trust, a firm or a company, being a resident or residents in India, who has or have initially subscribed to the Gold Bonds. _Explanation.—For the purposes of this clause, the expression “individual” shall also include,—_ (i) his legal heirs; or (ii) where a partition has taken place among the members of the Hindu undivided family, every member of such family having a share in the Gold Bonds; (c) all other words and expressions used in this Act but not defined and defined in the Income-tax Act, 1961 (43 of 1961) shall have the meanings respectively assigned to them in that Act. **3. Gold Bonds Scheme.—(1) The Central Government may, by notification in the Official Gazette,** frame a scheme for subscription to the Gold Bonds, 1998, on or after the date of commencement of this Act, but before the specified date. _Explanation.—For the purposes of this sub-section, “specified date” means the 31st day of March,_ 1993 or such other later date as the Central Government may, by notification in the Official Gazette, specify in this behalf. (2) The scheme framed under sub-section (1) shall be laid, as soon as may be after it is framed, before each House of Parliament. **4. Immunities.—(1) Notwithstanding anything contained in the Wealth-tax Act, 1957 (27 of 1957),** the Gift-tax Act, 1958 (18 of 1958), the Income-tax Act, 1961 (43 of 1961), the Customs Act, 1962 (52 of 1962), the Foreign Exchange Regulation Act, 1973 (46 of 1973) and the Foreign Contribution (Regulation) Act, 1976 (49 of 1976),— (a) no subscriber shall be required to disclose, for any purpose whatsoever, the nature and source of acquisition of the gold subscribed for the Gold Bonds, including the source of money with which the gold was acquired; (b) no inquiry or investigation shall be commenced against any subscriber under any of the said Acts on the ground that such subscriber owns the Gold Bonds; and ----- (c) the fact that any subscriber owns the Gold Bonds shall not be taken into account for the purposes of, and shall be inadmissible as evidence in, any proceedings under any of the said Acts: Provided that nothing contained in this sub-section shall apply where any proceedings in respect of the gold subscribed by the subscriber have already been initiated before the commencement of this Act in accordance with the provisions of any of the aforesaid Acts. (2) Nothing in sub-section (1) shall apply in relation to prosecution for any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code (45 of 1860), the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985), the Terrorist and Disruptive Activities (Prevention) Act, 1987 (28 of 1987), the Prevention of Corruption Act, 1988 (49 of 1988) or for the purposes of enforcement of any civil liability. **5. Gold Bonds not to be taken into account in certain cases.—Without prejudice to the generality** of the provisions of section 4,— (a) the provisions of the Income-tax Act, 1961 (43 of 1961) shall not apply to— (i) any interest accruing to the subscriber from the Gold Bonds; (ii) any long-term capital gains arising to the subscriber; (b) the provisions of the Gift-tax Act, 1958 (18 of 1958) shall not apply where the gift of the Gold Bonds is made by a subscriber, being an individual, to his spouse, child or parent. **6. Repeal and savings.—(1) The Gold Bonds (Immunities and Exemptions) Ordinance, 1993 (Ord.** 22 of 1993) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. -----
2-Apr-1993
28
The Multimodal Transportation of Goods Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1946/1/a1993-28.pdf
central
# THE MULTIMODAL TRANSPORTATION OF GOODS ACT, 1993 __________ ARRANGEMENT OF SECTIONS ________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGULATION OF MULTIMODAL TRANSPORTATION 3. No person to carry on business without registration. 4. Registration for multimodal transportation. 5. Cancellation of registration. 6. Appeal. CHAPTER III MULTIMODAL TRANSPORT DOCUMENT 7. Issue of multimodal transport document. 8. Multimodal transport document to be regarded as document of title. 9. Contents of multimodal transport document. 10. Reservation in the multimodal transport document. 11. Evidentiary effect of the multimodal transport document. 12. Responsibility of the consignor. CHAPTER IV RESPONSIBILITIES AND LIABILITIES OF THE MULTIMODAL TRANSPORT OPERATOR 13. Basis of liability of multimodal transport operator. 14. Limits of liability when the nature and value of the consignment have not been declared and stage of transport where loss or damage occurred is not known. 15. Limits of liability when the nature and value of the consignment have not been declared and stage of transport where loss or damage occurred is known. 16. Liability of the multimodal transport operator in case of delay in delivery of goods under certain circumstances. 17. Assessment of compensation. 18. Loss of right of multimodal transport operator to limit liability. 19. Limit of liability of multimodal transport operator for total loss of goods. 20. Notice of loss of or damage to goods. 20A. Period of responsibility. CHAPTER V MISCELLANEOUS 21. Special provision for dangerous goods. 22. Right of multimodal transport operator to have lien on goods and documents. 23. General average. 24. Limitation on action. 25. Jurisdiction for instituting action. 1 ----- SECTIONS 26. Arbitration. 27. Delegation of power. 28. Multimodal transport contract to be made in accordance with this Act. 29. Act of override other enactments. 30. Power to make rules. 31. [Repealed.] 32. Repeal and savings. THE SCHEDULE [Repealed]. 2 ----- THE MULTIMODAL TRANSPORTATION OF GOODSACT, 1993 ACT NO. 28 OF 1993 [2nd April, 1993.] An Act to provide for the regulation of the multimodal transportation of goods, from any place in India to a place outside India, on the basis of a multimodal transport contract and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Multimodal** Transportation of Goods Act, 1993. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall be deemed to have come into force on the 16th day of October, 1992. **2. Definitions.—In this Act, unless the context otherwise requires,—** 1[(a) “carrier” means a person who performs or undertakes to perform for hire, the carriage or part thereof, of goods by road, rail, inland waterways, sea or air;] (b) “competent authority” means any person or authority authorised by the Central Government, by notification in the Official Gazette, to perform the functions of the competent authority under this Act; (c) “consignee” means the person named as consignee in the multimodal transport contract; (d) “consignment” means the goods entrusted to a multimodal transport operator for multimodal transportation; (e) “consignor” means the person, named in the multimodal transport contract as consignor, by whom or on whose behalf the goods covered by such contract are entrusted to a multimodal transport operator for multimodal transportation; (f) “delivery” means,— (i) in the case of a negotiable multimodal transport document, delivering of the consignment to, or placing the consignment at the disposal of, the consignee or any other person entitled to receive it; (ii) in the case of a non-negotiable multimodal transport document, delivering of the consignment to, or placing the consignment at the disposal of, the consignee or any person authorised by the consignee to accept delivery of the consignment on his behalf; (g) “endorsee” means the person in whose favour an endorsement is made, and in the case of successive endorsements, the person in whose favour the last endorsement is made; (h) “endorsement” means the signing by the consignee or the endorsee after adding a direction on a negotiable multimodal transport document to pass the property in the goods mentioned in such document to a specified person; 2[(i) “goods” means any property including live animals, containers, pallets or such other articles of transport or packaging supplied by the consignor, irrespective of whether such property is to be or is carried on or under the deck;] (j) “mode of transport” means carriage of goods by [3][road, air, rail] inland waterways or sea; 1. Subs. by Act 44 of 2000, s.2, for clause (a) (w.e.f 5-12-2000). 2. Subs. by s.2, ibid., for clause (i) (w.e.f 5-12-2000). 3. Subs. by s. 2, ibid., for “road, rail” (w.e.f. 5-12-2000). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 3 ----- 1[(k) “multimodal transportation” means carriage of goods, by at least two different modes of transport under a multimodal transport contract, from the place of acceptance of the goods in India to a place of delivery of the goods outside India; (l) “multimodal transport contract” means a contract under which a multimodal transport operator undertakes to perform or procure the performance of multimodal transportation against payment of freight; (la) “multimodal transport document” means a negotiable or non-negotiable document evidencing a multimodal transport contract and which can be replaced by electronic data interchange messages permitted by applicable law;] (m) “multimodal transport operator” means any person who— (i) concludes a multimodal transport contract on his own behalf or through another person acting on his behalf; (ii) acts as principal, and [2][not as an agent either of the consignor, or consignee or of the carrier] participating in the multimodal transportation, and who assumes responsibility for the performance of the said contract; and (iii) is registered under sub-section (3) of section 4; (n) “negotiable multimodal transport document” means a multimodal transport document which is— (i) made out to order or to bearer; or (ii) made out to order and is transferable by endorsement; or (iii) made out to bearer and is transferable without endorsement; (o) “non-negotiable multimodal transport document” means a multimodal transport document which indicates only one named consignee; (p) “prescribed” means prescribed by rules made under this Act; (q) “registration” means registration of multimodal transport operator under sub-section (3) of section 4; 3[(r) “special drawing rights” means such units of accounts as are determined by the International Monetary Fund; (s) “taking charge” means that the goods have been handed over to and accepted for carriage by the multimodal transport operator.] CHAPTER II REGULATION OF MULTIMODAL TRANSPORTATION **3. No person to carry on business without registration.—No person shall carry on or commence** the business of multimodal transportation unless he is registered under this Act: Provided that a person carrying on the business of multimodal transportation immediately before the commencement of this Act, may continue to do so for a period of three months from such commencement; and if he has made an application for registration within the said period, till the disposal of such application. **4. Registration for multimodal transportation.—(1) Any person may apply for registration to the** competent authority to carry on or commence the business of multimodal transportation. (2) An application under sub-section (1) shall be made in such form as may be prescribed and shall be accompanied by a fee of ten thousand rupees. 1. Subs. by Act 44 of 2000, s. 2, for clauses (k) and (l) (w.e.f. 5-12-2000). 2. Subs. by s. 2, ibid., for “not as an agent either of the consignor or of the carrier”(w.e.f. 5-12-2000). 3. Ins. by s. 2, ibid. (w.e.f. 5-12-2000). 4 ----- (3) On receipt of the application, the competent authority shall satisfy that the applicant fulfils the following conditions, namely:— 1[(a) (i) that the applicant is a company, firm or proprietary concern, engaged either in the business of shipping, or freight forwarding in India or abroad with a minimum annual turnover of fifty lakh rupees during the immediately preceding financial year or an average annual turnover of fifty lakh rupees during the preceding three financial years as certified by a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949 ); (ii) that if the applicant is a company, firm or proprietary concern other than a company, firm or proprietary concern, specified in sub-clause (i), the subscribed share capital of such company or the aggregate balance in the capital account of partners of the firm, or the capital of the proprietor is not less than fifty lakh rupees;] (b) that the applicant has offices or agents or representatives in not less than two other countries, and on being so satisfied, register the applicant as a multimodal transport operator and grant a certificate to it to carry on or commence the business of multimodal transportation: Provided that the competent authority may, for reasons to be recorded in writing, refuse to grant registration if it is satisfied that the applicant does not fulfil the said conditions: 2[Provided further that any applicant who is not a resident of India and who is not engaged in the business of shipping shall not be granted registration unless he has established a place of business in India: Provided also that in respect of any applicant who is not a resident of India, the turnover may be certified by any authority competent to certify the accounts of a company in that country.] 3[(4) A certificate granted under sub-section (3) shall be valid for a period of three years and may be renewed from time to time for a further period of three years at a time. (5) An application for renewal shall be made in such form as may be prescribed and shall be accompanied by such amount of fees as may be notified by the Central Government: Provided that such fees shall not be less than rupees ten thousand and shall not exceed rupees twenty thousand. (6) The competent authority shall renew the registration certificate granted under sub-section (3) if the applicant continues to fulfil the conditions as laid down at the time of registration.] **5. Cancellation of registration.—The competent authority may, if it is satisfied at any time after** registration that— (a) any statement in, or in relation to, any application under sub-section (2) of section 4 or its renewal under sub-section (5) of that section, is incorrect or false in any material particular; or (b) any of the provisions of this Act or the rules made thereunder has been contravened by the multimodal transport operator; or (c) the multimodal transport operator has not entered into any multimodal transport contract during the preceding two years after his registration, cancel by order the certificate of registration: Provided that no such registration shall be cancelled unless the multimodal transport operator has been given a reasonable opportunity of showing cause against the proposed action. 1. Subs. by Act 44 of 2000, s. 3, for clause (a) (w.e.f. 5-12-2000). 2. Ins. by s. 3, ibid. (w.e.f. 5-12-2000). 3. Subs. by s. 3, ibid., for sub-sections (4) and (5) (w.e.f. 5-12-2000). 5 ----- **6. Appeal.—[1][(1) Any person aggrieved by, refusal of the competent authority to grant or renew** registration under section 4 or by cancellation of registration under section 5, may prefer an appeal to the Central Government within such period as may be prescribed.] (2) No appeal shall be admitted if it is preferred after the expiry of the prescribed period: Provided that an appeal may be admitted after the expiry of the prescribed period if the appellant satisfies the Central Government that he had sufficient cause for not preferring the appeal within the prescribed period. (3) Every appeal made under this section shall be made in such form and on payment of such fees as may be prescribed and shall be accompanied by a copy of the order appealed against. (4) On receipt of any such appeal, the Central Government shall, after giving the parties a reasonable opportunity of being heard and after making such inquiry as it deems proper, make such order as it thinks fit. CHAPTER III MULTIMODAL TRANSPORT DOCUMENT **7. Issue of multimodal transport document.—(1) Where the consignor and the multimodal** transport operator have entered into a contract for the multimodal transportation and the multimodal transport operator has taken charge of the goods, he shall, at the option of the consignor, issue a negotiable or non-negotiable multimodal transport document: 2[Provided that the multimodal transport operator shall issue the multimodal transport document only after obtaining, and during the subsistence of a valid insurance cover.] (2) The multimodal transport document shall be signed by the multimodal transport operator or by a person duly authorised by him. **8. Multimodal transport document to be regarded as document of title.—(1) Every consignee** named in the negotiable or non-negotiable multimodal transport document and every endorsee of such document, as the case may be, to whom the property in the goods mentioned therein shall pass, upon or by reason of such consignment or endorsement, shall have all the rights and liabilities of the consignor. (2) Nothing contained in sub-section (1) shall prejudice or affect the right of the multimodal transport operator to claim freight from the consignor or enforce any liability of the consignee or endorsee by reason of his being such consignee or endorsee. **9. Contents of multimodal transport document.—The multimodal transport document shall contain** the following particulars, namely:— 3[(a) the general nature of the goods, the leading marks necessary for identification of the goods, the character of the goods (including dangerous goods), the number of packages or units and the gross weight and quantity of the goods as declared by the consignor;] (b) apparent condition of the goods; (c) the name and principal place of business of the multimodal transport operator; (d) the name of the consignor; (e) the name of the consignee, if specified by the consignor; (f) the place and date of taking charge of the goods by the multimodal transport operator; (g) theplace of delivery of the goods; 1. Subs. by Act 44 of 2000, s. 4, for sub-section (1) (w.e.f 5-12-2000). 2. Ins. by s. 5, ibid. (w.e.f. 5-12-2000). 3. Subs. by s. 6, ibid., for clause (a) (w.e.f. 5-12-2000). 6 ----- 1[(h) the date or the period of delivery of the goods by the multimodal transport operator as expressly agreed upon between the consignor and the multimodal transport operator;] (i) whether it is negotiable or non-negotiable; (j) the place and date of its issue; 2[(k) freight payable by the consignor or the consignee, as the case may be, to be mentioned only if expressly agreed by both the consignor and the consignee;] (l) the signature of the multimodal transport operator or of a person duly authorised by him; (m) the intended journey route, modes of transport and places of transhipment, if known at the time of its issue; (n) terms of shipment and a statement that the document has been issued subject to and in accordance with this Act; and (o) any other particular which the parties may agree to insert in the document, if any such particular is not inconsistent with any law for the time being in force: 3[Provided that the absence of any of the particulars listed above shall not affect the legal character of the multimodal transport document.] **10. Reservation in the multimodal transport document.—(1) Where the multimodal transport** operator or a person acting on his behalf knows, or has reasonable grounds to suspect, that the particulars furnished by the consignor in the multimodal transport document do not accurately represent the goods actually taken in charge, or if he has no reasonable means of checking such particulars, the multimodal transport operator or a person acting on his behalf shall insert in the multimodal transport document a reservation specifying the inaccuracies, if any, the grounds of suspicion or the absence of reasonable means of checking the particulars. (2) Where the multimodal transport operator or a person acting on his behalf fails to insert the reservation in the multimodal transport document relating to the apparent condition of the goods, he shall be deemed to have accepted the goods in apparent good condition. **11. Evidentiary effect of the multimodal transport document.—Save as provided in section 10,—** (a) the multimodal transport document shall be _prima facie evidence of the fact that the_ multimodal transport operator has taken charge of the goods as described in the document;and (b) no proof to the contrary by the multimodal transport operator shall be admissible if the multimodal transport document is issued in negotiable form and has been transmitted to the consignee or transferred by the consignee to a third party, if the consignee or the third party has acted in good faith relying on the description of the goods in the document. **12. Responsibility of the consignor.—(1) The consignor shall be deemed to have guaranteed to the** multimodal transport operator the adequacy and accuracy, at the time the multimodal transport operator takes charge of the goods, of the particulars referred to in clauses (a) and (b) of section 9 as furnished by the consignor for insertion in the multimodal transport document. (2) The consignor shall indemnify the multimodal transport operator against loss resulting from inadequacy or inaccuracy of the particulars referred to in sub-section (1). (3) The right of the multimodal transport operator under sub-section (2) shall in no way limit his liability under the multimodal transport contract to any person other than the consignor. CHAPTER IV RESPONSIBILITIES AND LIABILITIES OF THE MULTIMODAL TRANSPORT OPERATOR **13. Basis of liability of multimodal transport operator.—(1) The multimodal transport operator** shall be liable for loss resulting from— (a) any loss of, or damage to, the consignment; 1. Subs. by Act 44 of 2000, s. 6, for clause (h) (w.e.f. 5-12-2000). 2. Subs. by s. 6, ibid., for clause (k) (w.e.f. 5-12-2000). 3. Ins. by s. 6, ibid. (w.e.f5-12-2000). 7 ----- (b) delay in delivery of the consignment and any consequential loss or damage arising from such delay, where such loss, damage or delay in delivery took place while the consignment was in his charge: Provided that the multimodal transport operator shall not be liable if he proves that no fault or neglect on his part or that of his servants or agents had caused or contributed to such loss, damage or delay in delivery: 1[Provided further that the multimodal transport operator shall not be liable for loss or damage arising out of delay in delivery including any consequential loss or damage arising from such delay unless the consignor had made a declaration of interest in timely delivery which has been accepted by the multimodal transport operator.] _Explanation.—For the purposes of this sub-section, “delay in delivery” shall be deemed to occur_ when the consignment has not been delivered within the time expressly agreed upon or, in the absence of such agreement, within a reasonable time required by a diligent multimodal transport operator, having regard to the circumstances of the case, to effect the delivery of the consignment. (2) If the consignment has not been delivered within ninety consecutive days following the date of delivery expressly agreed upon or the reasonable time referred to in the Explanation to sub-section (1), the claimant may treat the consignment as lost. **14. Limits of liability when the nature and value of the consignment have not been declared and** **stage of transport where loss or damage occurred is not known.—(1) Where a multimodal transport** operator becomes liable for any loss of, or damage to, any consignment, the nature and value whereof have not been declared by the consignor before such consignment has been taken in charge by the multimodal transport operator and the stage of transport at which such loss or damage occurred is not known, then the liability of the multimodal transport operator to pay compensation shall not exceed two Special Drawing Rights per kilogram of the gross weight of the consignment lost or damaged or 666.67 Special Drawing Rights per package or unit lost or damaged, whichever is higher. 2[Explanation.—For the purpose of this sub-section, where a container, pallet or similar article is stuffed with more than one package or units, the packages or units enumerated in the multimodal transport document, as packed in such container, pallet or similar article of transport shall be deemed as packages or units.] (2) Notwithstanding anything contained in sub-section (1), if the multimodal transportation does not, according to the multimodal transport contract, include carriage of goods by sea or by inland waterways, the liability of the multimodal transport operator shall be limited to an amount not exceeding 8.33 Special Drawing Rights per kilogram of the gross weight of the goods lost or damaged. **15. Limits of liability when the nature and value of the consignment have not been declared and** **stage of transport where loss or damage occurred is known.—Where a multimodal transport operator** becomes liable for any loss of, or damage to, any consignment, the nature and value whereof have not been declared by the consignor before such consignment has been taken in charge by the multimodal transport operator and the stage of transport at which such loss or damage occurred is known, then the limit of the liability of the multimodal transport operator for such loss or damage shall be determined in accordance with the provisions of the relevant law applicable in relation to the mode of transport during the course of which the loss or damage occurred and any stipulation in the multimodal transport contract to the contrary shall be void and unenforceable: 3[Provided that the multimodal transport operator shall not be liable for any loss, damage or delay in delivery due to a cause for which the carrier is exempted from liability in accordance with the applicable law.] 1. Subs. by Act 44 of 2000, s. 7, for the second proviso (w.e.f. 5-12-2000). 2. Subs. by s. 8, ibid.,forthe Explanation(w.e.f. 5-12-2000). 3. Ins. by s. 9, ibid. (w.e.f. 5-12-2000). 8 ----- **16. Liability of the multimodal transport operator in case of delay in delivery of goods under** **certain circumstances.—Where delay in delivery of the consignment occurs under any of the** circumstances mentioned in the Explanation to sub-section (1) of section 13, or any consequential loss or damage arises from such delay, then the liability of the multimodal transport operator shall be limited to the freight payable for the consignment so delayed. **17. Assessment of compensation.—(1) Assessment of compensation for loss of, or damage to, the** consignment shall be made with reference to the value of such consignment at the place where, and the time at which, such consignment is delivered to the consignee or at the place and time when, in accordance with the multimodal transport contract, it should have been delivered. (2) The value of the consignment shall be determined according to the current commodity exchange price, or, if there is no such price, according to the current market price, or, if the current market price is not ascertainable, with reference to the normal value of a consignment of the same kind and quantity. **18. Loss of right of multimodal transport operator to limit liability.—The multimodal transport** operator shall not be entitled to the benefit of limitation of liability under any of the provisions of this Chapter if it is proved that the loss, damage or delay in delivery of consignment resulted from an act or omission of the multimodal transport operator with intent to cause such loss, damage or delay or recklessly and with knowledge that such loss, damage or delay would probably result. **19. Limit of liability of multimodal transport operator for total loss of goods.—The multimodal** transport operator shall not, in any case, be liable for an amount greater than the liability for total loss of goods for which a person will be entitled to make a claim against him under the provisions of this Act. **20. Notice of loss of or damage to goods.—(1) The delivery of the consignment to the consignee by** the multimodal transport operator shall be treated as _prima facie evidence of delivery of the goods as_ described in the multimodal transport document unless notice of the general nature of loss of, or damage to, the goods is given, in writing, by the consignee to the multimodal transport operator at the time of handing over of the goods to the consignee. (2) Where the loss or damage is not apparent, the provisions of sub-section (1) shall apply unless notice in writing is given by the consignee of the loss of, or damage to, the goods within six consecutive days after the day when the goods were handed over to the consignee. 1[20A. Period of responsibility.—The responsibility of the multimodal transport operator for the goods under this Act shall cover the period from the time he has taken the goods in his charge to the time of their delivery.] CHAPTER V MISCELLANEOUS **21. Special provision for dangerous goods.—(1) Where the consignor hands over the prescribed** dangerous goods to a multimodal transport operator or any person acting on behalf of such operator, the consignor shall inform him of the nature of the dangerous goods and, if necessary, the precautions to be taken while transporting such goods. (2) Where the consignor fails to inform the multimodal transport operator or the other person acting on behalf of such operator of the nature of the dangerous goods and such operator or person does not otherwise have knowledge of the dangerous goods— (a) the consignor shall be liable to the multimodal transport operator or the other person acting on behalf of such operator for all loss resulting from the multimodal transportation of such goods; and 1. Ins. by Act 44 of 2000,s. 10(w.e.f. 5-12-2000). 9 ----- (b) the goods may at any time be unloaded, destroyed or rendered innocuous, as the circumstances may require, without payment of compensation. **22. Right of multimodal transport operator to have lien on goods and documents.—(1) The** multimodal transport operator who has not been paid the amount of consideration stipulated in the multimodal transport contract shall have a lien on the consignment and on the documents in his possession. (2) Notwithstanding anything contained in sections 13, 16 and 18, the period during which the goods are in possession of the multimodal transport operator in exercise of his right of lien referred to in subsection (1) shall not be included for the purposes of calculating the time of delay under any of those sections. **23. General average.—Notwithstanding anything contained in any other provision of this Act, it** shall be lawful for the parties to the multimodal transport contract to include in the multimodal transport document any provision relating to general average. _Explanation.—For the purposes of this section, “general average” means loss, damage or expense_ reasonably incurred in order to avert danger to property in common peril and in the common interest involved in the multimodal transportation. **24. Limitation on action.—The multimodal transport operator shall not be liable under any of the** provisions of this Act unless action against him is brought within nine months of— (a) the date of delivery of the goods, or (b) the date when the goods should have been delivered, or (c) the date on and from which the party entitled to receive delivery of the goods has the right to treat the goods as lost under sub-section (2) of section 13. **25. Jurisdiction for instituting action.—Any party to the multimodal transport contract may institute** an action in a court which is competent and within the jurisdiction of which is situated one of the following places, namely:— (a) the principal place of business, or, in the absence thereof, the habitual residence, of the defendant; or (b) the place where the multimodal transport contract was made, provided that the defendant has a place of business, branch or agency at such place; or (c) the place of taking charge of the goods for multimodal transportation or the place of delivery thereof; or (d) any other place specified in the multimodal transport contract and evidenced in the multimodal transport document. **26. Arbitration.—(1) The parties to a multimodal transport contract may provide therein that any** dispute which may arise in relation to multimodal transportation under the provisions of this Act shall be referred to arbitration. (2) The arbitration proceeding may be instituted at such place or in accordance with such procedure as may be specified in the multimodal transport document. **27. Delegation of power.—The Central Government may, by notification in the Official Gazette,** direct that any power exercisable by it under this Act, except the power under section 30, shall, in such circumstances and subject to such conditions, if any, as may be specified therein, be exercisable also by such officer or authority as may be specified in the notification. **28. Multimodal transport contract to be made in accordance with this Act.—No person** registered as a multimodal transport operator shall enter into any contract for multimodal transportation except in accordance with the provisions of this Act and any contract, to the extent it is inconsistent with the said provisions, shall be void and unenforceable. 10 ----- **29. Act to override other enactments.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **30. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing provisions, such rules may provide for all or any of the following matters, namely:— (a) the forms in which applications shall be made under section 4; (b) the period within which appeal shall be preferred under sub-section (1) of section 6; (c) the form in which an appeal shall be preferred under section 6 and the amount of fee payable in respect of such appeal; (d) dangerous goods for the purpose of section 21; (e) any other matter which is to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **31. [Amendment of certain enactments].—Rep. by the Repealing and Amending Act, 2001** (30 of 2001), s. 2 and the First Schedule (w.e.f. 3-9-2001). **32.** **Repeal** **and** **savings.—(1)** The Multimodal Transportation of Goods Ordinance, 1993 (Ord. 6 of1993) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. [THE SCHEDULE] Rep. by the Repealing and Amending Act, 2001 (30 of 2001), s. 2 and the First _Schedule (w.e.f. 3-9-2001)._ 11 -----
2-Apr-1993
23
The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1390/1/AAA1993_____25.pdf
central
# THE INDUSTRIAL FINANCE CORPORATION (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 1993 ___________ ARRANGEMENT OF SECTIONS ___________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Undertaking of the Corporation to vest in the company. 4. General effect of vesting of undertaking in the Company. 5. Concession, etc., to be deemed to have been granted to the Company. 6. Tax exemption or benefit to continue to have effect. 7. Guarantee to be operative. 8. Provisions in respect of officers and other employees of Corporation. 9. Act 18 of 1891 to apply to the books of the Company. 10. Shares, bonds and debentures to be deemed to be approved securities. 11. Repeal and saving of Act 15 of 1948. 12. Repeal and saving. ----- # THE INDUSTRIAL FINANCE CORPORATION (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 1993 ACT NO. 23 OF 1993 [2nd April, 1993.] # An Act to provide for the transfer and vesting of the undertaking of the Industrial Finance Corporation of India to and in the Company to be formed and registered as a Company under the Companies Act, 1956, and for matters connected therewith or incidental thereto and also to repeal the Industrial Finance Corporation Act, 1948. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Industrial Finance Corporation** (Transfer of Undertaking and Repeal) Act, 1993. (2) It shall be deemed to have come into force on the 1st day of October, 1992. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means such date as the Central Government may, by notification in the Official Gazette, appoint under section 3; (b) “Company” means the Industrial Finance Corporation of India Limited to be formed and registered under the Companies Act, 1956 (1 of 1956); (c) “Corporation” means the Industrial Finance Corporation of India established under sub-section (1) of section 3 of the Industrial Finance Corporation Act, 1948 (15 of 1948). **3. Undertaking of the Corporation to vest in the company.—On such date as the Central** Government may, by notification in the Official Gazette, appoint, there shall be transferred to, and vest in, the Company, the undertaking of the Corporation. **4. General effect of vesting of undertaking in the Company.—(1) Every shareholder of the** Corporation immediately before the appointed day shall be deemed to be registered on and from the appointed day as a shareholder of the Company to the extent of the face value of the shares held by such shareholder. (2) The undertaking of the Corporation which is transferred to and which vests in the Company under section 3 shall be deemed to include all business, assets, rights, powers, authorities and privileges and all properties, movable and immovable, real and personal, corporeal and incorporeal, in possession or reservation, present or contingent of whatever nature and wheresoever situate including lands, buildings, vehicles, cash balances, deposits, foreign currencies, disclosed and undisclosed reserves, reserve fund, special reserve fund, benevolent reserve fund, any other fund, stocks, investments, shares, bonds, debentures, security, management of any industrial concern, loans, advances and guarantees given to industrial concerns, tenancies, leases and book debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership, possession or power of the Corporation in relation to its undertaking, within or without India, all books of accounts, registers, records and documents relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind within or without India then subsisting of the Corporation in relation to its undertaking. (3) All contracts, deeds, bonds, guarantees, powers of attorney, other instruments and working arrangements subsisting immediately before the appointed day and affecting the Corporation shall cease to have effect or to be enforceable against the Corporation and shall be of as full force and effect against or in favour of the Company in which the undertaking of the Corporation has vested by virtue of this Act and enforceable as fully and effectually as if instead of the Corporation, the Company had been named therein or had been a party thereto. (4) Any proceeding or cause of action pending or existing immediately before the appointed day by or against the Corporation in relation to its undertaking may, as from the appointed day, be continued and enforced by or against the Company in which the undertaking of the Corporation has vested by virtue of ----- this Act as it might have been enforced by or against the Corporation if this Act had not been enacted and shall cease to be enforceable by or against the Corporation. **5. Concession, etc., to be deemed to have been granted to the Company.—With effect from the** appointed day, all fiscal and other concessions, licences, benefits, privileges and exemptions granted to the Corporation in connection with the affairs and business of the Corporation under any law for the time being in force shall be deemed to have been granted to the Company. **6. Tax exemption or benefit to continue to have effect.—(1) Where any exemption from, or any** assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry forward of any unabsorbed depreciation or investment allowance or other allowance or loss has been extended or is available to the Corporation under the Income-tax Act, 1961 (43 of 1961), such exemption, assessment or benefit shall continue to have effect in relation to the Company. (2) Where any payment made by the Corporation is exempt from deduction of tax at source under any provision of the Income-tax Act, 1961 (43 of 1961), such exemption will continue to be available as if the provisions of the said Act made applicable to the Corporation were operative in relation to the Company. (3) The transfer and vesting of the undertaking or any part thereof in terms of section 3 shall not be construed as a transfer within the meaning of the Income-tax Act, 1961 (43 of 1961) for the purposes of capital gains. **7. Guarantee to be operative.—Any guarantee given for or in favour of the Corporation with respect** to any loan, lease finance or other assistance shall continue to be operative in relation to the Company. **8. Provisions in respect of officers and other employees of Corporation.—(1) Every officer or** other employee of the Corporation (except a Director of the Board, Chairman or Managing Director) serving in the employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the undertaking which has vested in the Company by virtue of this Act, become, as from the appointed day, an officer or, as the case may be, other employee of the Company and shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same obligations and with the same rights and privileges as to leave, leave fare concession, welfare scheme, medical benefit scheme, insurance, provident fund, other funds, retirement, voluntary retirement, gratuity and other benefits as he would have held under the Corporation if its undertaking had not vested in the Company and shall continue to do so as an officer or, as the case may be, other employee of the Company or until the expiry of a period of six months from the appointed day if such officer or other employee opts not to continue to be the officer or other employee of the Company within such period. (2) Where an officer or other employee of the Corporation opts under sub-section (1) not to be in employment or service of the Company, such officer or other employee shall be deemed to have resigned. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, the transfer of the services of any officer or other employee of the Corporation to the Company shall not entitle such officer or other employee to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. (4) The officers and other employees who have retired before the appointed day from the service of the Corporation and are entitled to any benefits, rights or privileges shall be entitled to receive the same benefits, rights or privileges from the Company. (5) The trusts of the provident fund or the gratuity fund of the Corporation and any other bodies created for the welfare of officers or employees would continue to discharge their functions in the Company as was being done hitherto in the Corporation and any tax exemption granted to the provident fund or the gratuity fund would continue to be applied to the Company. (6) Notwithstanding anything contained in this Act or in the Companies Act, 1956 (1 of 1956) or in any other law for the time being in force or in the regulations of the Corporation, no Director of the Board, Chairman, Managing Director or any other person entitled to manage the whole or substantial part of the business and affairs of the Corporation shall be entitled to any compensation against the ----- Corporation or the Company for the loss of office or for the premature termination of any contract of management entered into by him with the Corporation. **9. Act 18 of 1891 to apply to the books of the Company.—The Company shall be deemed to be a** bank for the purposes of the Bankers’ Books Evidence Act, 1891. **10. Shares, bonds and debentures to be deemed to be approved securities.—Notwithstanding** anything contained in any other law for the time being in force, the shares, bonds and debentures of the Company shall be deemed to be approved securities for the purposes of the Indian Trusts Act, 1882 (2 of 1982), the Insurance Act, 1938 (4 of 1938) [1]***. **11. Repeal and saving of Act 15 of 1948.—(1) On the appointed day, the Industrial Finance** Corporation Act, 1948 shall stand repealed. (2) Notwithstanding the repeal of the Industrial Finance Corporation Act, 1948 (15 of 1948), the Company shall, so far as may be, comply with the provisions of sections 33, 34, 34A, 35 and 43 of the Act so repealed for any of the purposes related to the annual accounts of the Corporation. **12. Repeal and saving.—(1) The Industrial Finance Corporation (Transfer of Undertaking and** Repeal) Ordinance, 1993 (Ord. 5 of 1993) is hereby repealed. (2) Notwithstanding the repeal of the Industrial Finance Corporation (Transfer of Undertaking and Repeal) Ordinance, 1993 (Ord. 5 of 1993), anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. 1. The words and figures “and the Banking Regulation Act, 1949 (10 of 1949) omitted by Act 4 of 2013, s. 17 and The Schedule (w.e.f. 17-1-2013). -----
3-Apr-1993
33
The Acquisition of Certain Area at Ayodhya Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1915/3/A1993-33.pdf
central
# THE ACQUISITION OF CERTAIN AREA AT AYODHYA ACT, 1993 _____________ ARRANGEMENT OF SECTIONS ___________ CHAPTER I # PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II ACQUISITION OF THE AREA IN AYODHYA 3. Acquisition of rights in respect of certain area. 4. General effect of vesting. 5. Duty of person or State Government in charge of the management of the area to deliver all assets, etc. 6. Power of Central Government to direct vesting of the area in another authority or body or trust. CHAPTER III MANAGEMENT AND ADMINISTRATION OF PROPERTY # 7. Management of property by Government. CHAPTER IV # MISCELLANEOUS 8. Payment of amount. 9. Act to override all other enactments. 10. Penalties. 11. Protection of action taken in good faith. 12. Power to make rules. 13. Repeal and saving. THE SCHEDULE. 1 ----- # THE ACQUISITION OF CERTAIN AREA AT AYODHYA ACT, 1993 ACT NO. 33 OF 1993 [3rd April, 1993.] # An Act to provide for the acquisition of certain area at Ayodhya and for matters connected therewith or incidental thereto. WHEREAS there has been a long-standing dispute relating to the structure (including the premises of the inner and outer courtyards of such structure), commonly known as the Ram Janma Bhumi-Babri Masjid, situated in village Kot Ramchandra in Ayodhya, in Pargana Haveli Avadh, in tehsil Faizabad Sadar, in the district of Faizabad of the State of Uttar Pradesh; AND WHEREAS the said dispute has affected the maintenance of public order and harmony between different communities in the country; AND WHEREAS it is necessary to maintain public order and to promote communal harmony and the spirit of common brotherhood amongst the people of India; AND WHEREAS with a view to achieving the aforesaid objectives, it is necessary to acquire certain areas in Ayodhya; BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Acquisition of Certain Area at** Ayodhya Act, 1993. (2) It shall be deemed to have come into force on the 7th day of January, 1993. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “area” means the area (including all the buildings, structures or other properties comprised therein) specified in the Schedule; (b) “authorised person” means a person or body of persons or trustees of any trust authorised by the Central Government under section 7; (c) “Claims Commissioner” means the Claims Commissioner appointed under sub-section (2) of section 8; (d) “prescribed” means prescribed by rules made under this Act. CHAPTER II ACQUISITION OF THE AREA IN AYODHYA **3. Acquisition of rights in respect of certain area.—On and from the commencement of this Act,** the right, title and interest in relation to the area shall, by virtue of this Act, stand transferred to, and vest in, the Central Government. **4. General effect of vesting.—(1) The area shall be deemed to include all assets, rights, leaseholds,** powers, authority and privileges and all property, movable and immovable, including lands, buildings, structures, shops of whatever nature or other properties and all other rights and interests in, or arising out of, such properties as were immediately before the commencement of this Act in the ownership, possession, power or control of any person or the State Government of Uttar Pradesh, as the case may be, and all registers, maps, plans, drawings and other documents of whatever nature relating thereto. (2) All properties aforesaid which have vested in the Central Government under section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting them and any attachment, injunction, decree or order of any court or 2 ----- tribunal or other authority restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such properties shall cease to have any effect. (3) If, on the commencement of this Act, any suit, appeal or other proceeding in respect of the right, title and interest relating to any property which has vested in the Central Government under section 3, is pending before any court, tribunal or other authority, the same shall abate. **5. Duty of person or State Government in charge of the management of the area to deliver all** **assets, etc.—(1) The Central Government may take all necessary steps to secure possession of the area** which is vested in that Government under section 3. (2) On the vesting of the area in the Central Government under section 3, the person or State Government of Uttar Pradesh, as the case may be, in charge of the management of the area immediately before such vesting shall be bound to deliver to the Central Government or the authorised person, all assets, registers and other documents in their custody relating to such vesting or where it is not practicable to deliver such registers or documents, the copies of such registers or documents authenticated in the prescribed manner. **6. Power of Central Government to direct vesting of the area in another authority or body or** **trust.—(1) Notwithstanding anything contained in sections 3, 4, 5 and 7, the Central Government may, if** it is satisfied that any authority or other body, or trustees of any trust, set up on or after the commencement of this Act is or are willing to comply with such terms and conditions as that Government may think fit to impose, direct by notification in the Official Gazette, that the right, title and interest or any of them in relation to the area or any part thereof, instead of continuing to vest in the Central Government, vest in that authority or body or trustees of that trust either on the date of the notification or on such later date as may be specified in the notification. (2) When any right, title and interest in relation to the area or part thereof vest in the authority or body or trustees referred to in sub-section (1), such rights of the Central Government in relation to such area or part thereof, shall, on and from the date of such vesting, be deemed to have become the rights of that authority or body or trustees of that trust. (3) The provisions of sections 4, 5, 7 and 11 shall, so far as may be, apply in relation to such authority or body or trustees as they apply in relation to the Central Government and for this purpose references therein to the Central Government shall be construed as references to such authority or body or trustees. CHAPTER III MANAGEMENT AND ADMINISTRATION OF PROPERTY **7. Management of property by Government.—(1) Notwithstanding anything contained in any** contract or instrument or order of any court, tribunal or other authority to the contrary, on and from the commencement of this Act, the property vested in the Central Government under section 3 shall be managed by the Central Government or by a person or body of persons or trustees of any trust authorised by that Government in this behalf. (2) In managing the property vested in the Central Government under section 3, the Central Government or the authorised person shall ensure that the position existing before the commencement of this Act in the area on which the structure (including the premises of the inner and outer courtyards of such structure), commonly known as the Ram Janma Bhumi-Babri Masjid, stood in village Kot Ramchandra in Ayodhya, in Pargana Haveli Avadh, in tehsil Faizabad Sadar, in the district of Faizabad of the State of Uttar Pradesh is maintained. CHAPTER IV MISCELLANEOUS **8. Payment of amount.—(1) The owner of any land, building, structure or other property comprised** in the area shall be given by the Central Government, for the transfer to and vesting in that Government under section 3 of that land, building, structure or other property, in cash an amount equivalent to the market value of the land, building, structure or other property. 3 ----- (2) The Central Government shall, for the purpose of deciding the claim of the owner or any person having a claim against the owner under sub-section (1), by notification in the Official Gazette, appoint a Claims Commissioner. (3) The Claims Commissioner shall regulate his own procedure for receiving and deciding the claims. (4) The owner or any person having a claim against the owner may make a claim to the Claims Commissioner within a period of ninety days from the date of commencement of this Act: Provided that if the Claims Commissioner is satisfied that the claimant was prevented by sufficient cause from preferring the claim within the said period of ninety days, the Claims Commissioner may entertain the claim within a further period of ninety days and not thereafter. **9. Act to override all other enactments.—The provisions of this Act shall have effect** notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any law other than this Act or any decree or order of any court, tribunal or other authority. **10. Penalties.—Any person who is in charge of the management of the area and fails to deliver to the** Central Government or the authorised person any asset, register or other document in his custody relating to such area or, as the case may be, authenticated copies of such register or document, shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to ten thousand rupees or with both. **11. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or the authorised person or any of the officers or other employees of that Government or the authorised person for anything which is in good faith done or intended to be done under this Act. **12. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the provisions of this Act. (2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **13. Repeal and saving.—(1) Subject to the provisions of sub-section (2), the Acquisition of Certain** Area at Ayodhya Ordinance, 1993 ( Ord. 8 of 1993), is hereby repealed. (2) Notwithstanding anything contained in the said Ordinance,— (a) the right, title and interest in relation to plot No. 242 situated in village Kot Ramchandra specified against Sl. No. 1 of the Schedule to the said Ordinance shall be deemed never to have been transferred to, and vested in, the Central Government; (b) any suit, appeal or other proceeding in respect of the right, title and interest relating to the said plot No. 242, pending before any court, tribunal or other authority, shall be deemed never to have abated and such suit, appeal or other proceeding (including the orders or interim orders of any court thereon) shall be deemed to have been restored to the position existing immediately before the commencement of the said Ordinance; (c) any other action taken or thing done under that Ordinance in relation to the said plot No. 242 shall be deemed never to have been taken or done. (3) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 4 ----- Sl. No. Name of Village/ Pargana/Tehsil/ District/State THE SCHEDULE [See section 2(a) ] DESCRIPTION OF THE AREA Revenue (Khasra) Area to be acquired Plot Nos. Bigha Biswa Biswansi (1) (2) (3) (4) (5) (6) Village Kot Ram1. chandra, Pargana Haveli Avadh, tehsil Faizabad Sadar, District Faizabad, Uttar Pradesh. 143 144 145 0 0 0 9 7 8 0 0 0 146 1 6 7 147 5 8 0 158 0 4 0 159 0 13 8 160 5 13 0 161 0 18 0 162 1 8 7 168 1 2 0 169 1 7 0 170 0 8 0 171 1 7 0 172 2 7 0 173 0 18 0 174 0 3 0 175 0 6 0 176 1 2 0 177 0 16 0 178 0 10 0 179 0 14 0 180 0 14 5 181 0 13 10 182 0 7 5 183 184 5 0 0 7 6 5 9 ----- (1) (2) (3) (4) (5) (6) 185 0 7 5 186 0 6 10 187 0 7 0 188 0 18 15 189 0 14 0 190 0 4 0 191 4 6 14 192 0 7 0 193 0 12 0 194 4 19 0 195 0 5 0 196 0 5 0 197 0 5 0 198 0 3 0 199 0 12 0 200 2 0 0 204 0 3 0 (part) Bounded by plot No. 222 on South, Plot No. 205 on West and plot No. 231 on East. 205 0 10 0 206 0 5 0 207 0 19 0 208 0 5 0 209 1 11 0 210 0 8 0 211 0 13 0 212 0 4 14 213 1 19 15 214 0 6 0 215 0 2 5 216 0 6 0 217 0 11 0 6 ----- (1) (2) (3) (4) (5) (6) 218 0 3 0 219 1 6 5 220 0 12 0 221 1 2 15 222 0 5 7 223 5 6 0 224 1 0 0 225 0 11 15 226 0 10 5 227 0 7 5 228 0 5 0 229 0 11 10 230 0 2 10 231 1 1 10 232 0 2 0 233 0 2 0 234 1 12 0 235 0 10 0 236 0 4 0 237 0 1 0 238 1 6 0 239 2 1 0 244 0 14 10 (part) Bounded on the North partly by plot No. 240 and partly by plot No. 243, on the West partly by plot No. 239 and partly by plot No. 240 and on the South by Plot No. 246. 246 0 18 0 (part) Bounded by plot No. 238 on the South, plot No. 239 on the West and plot No. 244 on the North. 75 14 7 7 ----- (1) (2) (3) (4) (5) (6) 2. Village Avadhkhas, Pargana Haveli Avadh, tehsil Faizabad Sadar, District Faizabad, Uttar Pradesh. 1104 1105 1106 1107 0 0 0 0 11 7 6 14 17 14 2 14 1108 0 4 3 1109 0 3 0 1110 0 4 5 1111 0 12 15 1112 0 5 8 1113 0 5 10 1114 0 0 10 1115 0 1 10 1116 0 3 10 1117 0 9 12 1118 1 1 17 1119 0 7 14 1120 0 13 15 1121 0 3 0 1122 0 8 0 1123 0 8 0 1124 0 9 10 1125 0 6 6 1126 0 4 15 1127 0 11 4 1128 1 12 6 1129 0 5 9 1130 0 5 0 1132 1 3 5 1133 0 4 15 1134 0 4 0 1135 0 1 0 1136 0 9 0 1143 0 4 5 1144 0 5 15 1145 0 0 15 1146 0 3 0 1147 0 5 0 1148 1149 1166 8 0 0 0 7 6 6 15 10 0 ----- (1) (2) (3) (4) (5) (6) (part) Bounded by plot No. 1203 on East, plot No. 1151 on West and plot No. 1167 on South. 1206 0 7 0 1210 0 1 5 1211 0 2 5 1212 0 11 5 1213 0 2 10 1214 0 7 0 1215 0 0 15 1216 0 0 15 1217 0 3 5 1218 0 4 10 1219 0 5 0 1220 0 7 5 1221 0 11 10 1222 0 4 0 1223 0 1 15 1225 0 12 15 1226 0 8 10 1227 0 7 15 1228 0 4 15 1229 0 1 0 1230 0 13 5 1231 0 7 5 1232 0 1 6 1233 0 4 15 1234 0 7 5 1235 0 1 6 1236 0 2 5 1237 0 9 10 1238 0 1 18 1239 0 1 10 1240 0 8 15 1241 0 1 10 1242 0 1 15 1243 0 2 0 1247 0 5 0 9 ----- (1) (2) (3) (4) (5) (6) (part) Bounded by plot No. 1248 on North, Plot No. 1246 on South and Plot No. 1291 on East/Road. 1248 1 7 10 1249 0 0 13 1250 0 7 7 1251 0 8 0 1252 0 9 0 1253 0 12 10 1254 0 4 0 1255 0 2 0 1256 0 2 0 1257 0 2 10 1258 0 2 5 1259 0 1 10 27 00 11 Village Jalwanpur, 3. Pargana Haveli Avadh, tehsil Faizabad Sadar, District Faizabad, Uttar Pradesh. 1 0 3 5 2 1 1 0 3 0 0 5 4 1 9 15 5 0 0 10 6 0 19 0 7 0 2 15 8 0 4 15 9 0 10 10 10 0 0 10 11 0 3 0 12 0 14 5 13 0 10 0 14 0 0 10 10 ----- (1) (2) (3) (4) (5) (6) 15 0 15 15 16 0 8 15 17 0 3 15 18 0 6 5 19 0 7 5 27 1 6 0 9 7 15 11 -----
26-Apr-1993
36
The SAARC Convention (Suppression of Terrorism) Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1940/3/A1993-36.pdf
central
# THE SAARC CONVENTION (SUPPRESSION OF TERRORISM) ACT, 1993 __________ # ARRANGEMENT OF SECTIONS __________ SECTIONS 1. Short title, extent and application. 2. Definitions. 3. Application of the Convention. 4. Hostage-taking. 5. Provisions as to Extradition Act. 6. Offences committed outside India. 7. Previous sanction necessary for prosecution. 8. Protection of action taken in good faith. THE SCHEDULE. 1 ----- # THE SAARC CONVENTION (SUPPRESSION OF TERRORISM) ACT, 1993 ACT NO. 36 OF 1993 [26th April, 1993.] # An Act to give effect to the South Asian Association for Regional Cooperation Convention on Suppression of Terrorism and for matters connected therewith or incidental thereto. WHEREAS a Convention on the Suppression of Terrorism was signed on behalf of the Government of India at Kathmandu on the 4th day of November, 1987; AND WHEREAS India, having ratified the said Convention, should make provisions for giving effect thereto and for matters connected therewith or incidental thereto; BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— **1. Short title, extent and application.—(1) This Act may be called the SAARC Convention** (Suppression of Terrorism) Act, 1993. (2) It extends to the whole of India and, subject to the provisions of section 6, it applies also to any offence under this Act committed outside India by any person. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Convention” means the South Asian Association for Regional Cooperation Convention on Suppression of Terrorism signed at Kathmandu on the 4th day of November, 1987 as set out in the Schedule; (b) “Convention country” means a country in which the Convention is for the time being in force. **3. Application of the Convention.—Notwithstanding anything to the contrary contained in any other** law, the provisions of Articles I to VIII of the Convention shall have the force of law in India. **4. Hostage-taking.—(1) Whoever, by force or threat of force or by any other form of intimation,** seizes or detains any person and threatens to kill or injure that person with intent to cause a Convention country to do or abstain from doing any act as the means of avoiding the execution of such threat, commits the offence of hostage-taking. (2) Whoever commits the offence of hostage-taking shall be punished with imprisonment for a term which may extend to ten years, and shall also be liable to fine. **5. Provisions as to Extradition Act.—For the purposes of the Extradition Act, 1962 (34 of 1962), in** relation to a Convention country, an offence under sub-section (1) of section 4 or any other offence specified in Article I of the Convention, shall not be considered to be an offence of a political character. **6. Offences committed outside India.—(1) When an offence under sub-section (1) of section 4 or** any other offence specified in Article I of the Convention is committed outside India,— (a) by a citizen of India, whether on the high seas or elsewhere; (b) by a person, not being such citizen, on any ship or aircraft, registered in India; or (c) by a person, not being such citizen, in a Convention country, he may be dealt with in respect of such offence as if it had been committed at any place within India at which he may be found. (2) Notwithstanding anything contained in sub-section (1), the Central Government may, by general or special order published in the Official Gazette, direct that the offence under sub-section (1) of section 4 or any other offence specified in Article I of the Convention may be inquired into or tried at any place within India. **7. Previous sanction necessary for prosecution.—No prosecution for an offence under this Act** shall be instituted except with the previous sanction of the Central Government and the sanction granted 2 ----- under this section shall be deemed to be a sanction granted under section 188 of the Code of Criminal Procedure, 1973 ( 2 of 1974). **8. Protection of action taken in good faith.—(1) No suit, prosecution or other legal proceeding** shall lie against any person for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act. (2) No suit or other legal proceeding shall lie against the Central Government for any damage caused or likely to be caused for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act. 3 ----- THE SCHEDULE [See section 2(a)] SAARC REGIONAL CONVENTION ON SUPPRESSION OF TERRORISM THE MEMBER STATES OF THE SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC) MINDFUL of the principles of cooperation enshrined in the SAARC Charter; RECALLING that at the Dhaka Summit on December 7-8, 1985, the Heads of State or Government of the member States of the SAARC recognised the seriousness of the problem of terrorism as it affects the security and stability of the region; ALSO RECALLING the Bangalore Summit Declaration of 17th November, 1986, in which the Heads of State or Government of SAARC agreed that cooperation among SAARC States was vital if terrorism was to be prevented and eliminated from the region; unequivocally condemned all acts, methods and practices of terrorism as criminal and deplored their impact on life and property, socio-economic development, political stability, regional and international peace and cooperation; and recognised the importance of the principles laid down in UN Resolution 262 (XXV) which among others required that each State should refrain from organising, instigating, assisting or participating in acts of civil strife or terrorist acts in another State or acquiescing in organised activities within its territory directed towards the commission of such acts; AWARE of the danger posed by the spread of terrorism and its harmful effect on peace, cooperation, friendship and good neighbourly relations and which could also jeopardise the sovereignty and territorial integrity of States; HAVE RESOLVED to take effective measures to ensure that perpetrators of terroristic acts do not escape prosecution and punishment by providing for their extradition or prosecution, and to this end; HAVE AGREED as follows:— ARTICLE I Subject to the overall requirements of the law of extradition, conduct constituting any of the following offences, according to the law of the Contracting State, shall be regarded as terroristic and for the purpose of extradition shall not be regarded as a political offence or as an offence connected with a political offence or as an offence inspired by political motives:— (a) an offence within the scope of the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at the Hauge, on December 16, 1970; (b) an offence within the scope of the Convention for the Suppression of Unlawful Act, against the Safety of Civil Aviations signed at Montreal, on September 23, 1971; (c) an offence within the scope of the Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons, including Diplomatic Agents, signed at New York, on December 14, 1973; (d) an offence within the scope of any Convention to which the SAARC member States concerned are parties and which obliges the parties to prosecute or grant extradition; (e) murder, manslaughter, assault causing bodily harm, kidnapping hostage-taking and offences relating to firearms, weapons, explosives and dangerous substances when used as a means to perpetrate indiscriminate violence involving death or serious bodily injury to persons or serious damage to property; (f) an attempt or conspiracy to commit an offence described in sub-paragraphs (a) to (e), aiding, abetting or counselling the commission of such an offence or participating as an accomplice in the offences so described. 4 ----- ARTICLE II For the purpose of extradition between SAARC member States, any two or more Contracting States may, by agreement, decide to include any other serious offence involving violence, which shall not be regarded as a political offence or an offence connected with a political offence or an offence inspired by political motives. ARTICLE III 1. The provisions of all extradition treaties and arrangements applicable between Contracting States are hereby amended as between Contracting States to the extent that they are incompatible with this Convention. 2. For the purpose of this Convention and to the extent that any offence referred to in Article I or agreed to in terms of Article II in not listed as an extraditable offence in any extradition treaty existing between Contracting States, it shall be deemed to be included as such therein. 3. Contracting States undertake to include these offences as extraditable offences in any future extradition treaty to be concluded between them. 4. If a Contracting State which makes extradition conditional on the existence of a treaty receives a request for extradition from another Contracting State with which it has no extradition treaty, the requested State may, at its option, consider this Convention as the basis for extradition in respect of the offences set forth in Article I or agreed to in terms of Article II. Extradition shall be subject to the law of the requested State. 5. Contracting States which do not make extradition conditional on the existence of a treaty, shall recognise the offences set forth in Article I or agreed to in terms of Article II as extraditable offences between themselves, subject to the law of the requested State. ARTICLE IV A Contracting State in whose territory a person suspected of having committed an offence referred to in Article I or agreed to in terms of Article II is found and which has received a request for extradition from another Contracting State, shall, if it does not extradite that person, submit the case without exception and without delay, to its competent authorities, so that prosecution may be considered. These authorities shall take their decisions in the same manner as in the case of any offence of a serious nature under the law of that State. ARTICLE V For the purpose of Article IV, each Contracting State may take such measures as it deems appropriate, consistent with its national laws, subject to reciprocity, to exercise its jurisdiction in the case of an offence under Article I or agreed to in terms of Article II. ARTICLE VI A Contracting State in whose territory an alleged offender is found, shall, upon receiving a request for extradition from another Contracting State, take appropriate measures, subject to its national laws, so as to ensure his presence for purposes of extradition or prosecution. Such measures shall immediately be notified to the requesting State. ARTICLE VII Contracting States shall not be obliged to extradite, if it appears to the requested State that by reason of the trivial nature of the case or by reason of the request for the surrender or return of a fugitive offender not being made in good faith or in the interests of justice or for any other reason it is unjust or inexpedient to surrender or return the fugitive offender. ARTICLE VIII 1. Contracting States shall, subject to their national laws, afford one another the greatest measure of mutual assistance in connection with proceedings brought in respect of the offences referred to in Article I 5 ----- or agreed to in terms of Article II, including the supply of all evidence at their disposal necessary for the proceedings. 2. Contracting States shall cooperate among themselves, to the extent permitted by their national laws, through consultations between appropriate agencies, exchange of information, intelligence and expertise and such other cooperative measures as may be appropriate, with a view to preventing terroristic activities through precautionary measures. ARTICLE IX 1. The Convention shall be open for signature by the member States of SAARC at the SAARC Secretariat in Kathmandu. 2. It shall be subject to ratification. Instruments of ratification shall be deposited with the Secretary-General of SAARC. ARTICLE X This Convention shall enter into force on the fifteenth day following the date of the deposit of the seventh Instrument of Ratification with the Secretary-General of SAARC. ARTICLE XI The Secretary-General of SAARC shall be the depository of this Convention and shall notify member States of signatures to this Convention and all deposits of Instruments of Ratification. The Secretary General, shall transmit certified copies of such Instruments to each member State. The Secretary-General shall also inform member States of the date on which this Convention will have entered into force in accordance with Article X. IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention. DONE at Kathmandu on this fourth day of November one thousand nine hundred and eighty-seven, in eight originals, in the English language, all texts being equally authentic. 6 -----
27-May-1993
44
The Central Laws (Extension to Arunachal Pradesh) Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1956/1/A1993-44.pdf
central
# THE CENTRAL LAWS (EXTENSION TO ARUNACHAL PRADESH) ACT, 1993 __________ ARRANGEMENT OF SECTIONS ____________ SECTIONS 1. Short title and commencement. 2. Extension of certain laws. 3. Construction of references to laws not in force in Arunachal Pradesh. 4. Construction of references to authorities where new authorities have been constituted. 5. Power to remove difficulties. THE SCHEDULE. 1 ----- # THE CENTRAL LAWS (EXTENSION TO ARUNACHAL PRADESH) ACT, 1993 ACT NO. 44 OF 1993 [27th May, 1993.] # An Act to provide for the extension of certain Central laws to the State of Arunachal Pradesh. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Central Laws (Extension to** Arunachal Pradesh) Act, 1993. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Extension of certain laws.—The Acts mentioned in the Schedule and all rules, orders, regulations** and schemes made thereunder are hereby extended to, and shall be in force in, the State of Arunachal Pradesh. **3. Construction of references to laws not in force in Arunachal Pradesh.—Any reference in any** Act, mentioned in the Schedule, to a law which is not in force in the State of Arunachal Pradesh shall, in relation to that State, be construed as a reference to the corresponding law, if any, in force in that state. **4. Construction of references to authorities where new authorities have been constituted.—Any** reference by whatever form of words in any law for the time being in force in the State of Arunachal Pradesh to any authority competent at the date of the passing of that law to exercise any powers or discharge any functions in that State shall, where a corresponding new authority has been constituted by or under any law now extended to that State, have effect as if it were a reference to the new authority. **5. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of any** Act now extended to the State of Arunachal Pradesh, the Central Government may, by order notified in the Official Gazette, make such provisions or give such directions as appear to it necessary for the removal of the difficulty. (2) In particular, and without prejudice to the generality of the foregoing power, any such notified order may,— # (a) specify the corresponding authorities within the meaning of section 4; (b) provide for the transfer of any matter pending immediately before the commencement of this Act before any court, tribunal or other authority, to any corresponding court, tribunal or other authority for disposal: Provided that no such order shall be made after the expiry of two years from the date of commencement of this Act. (3) Every order made under this section shall be laid before each House of Parliament. 1. 1st July, 1994, vide notification No. S.O. 491(E), dated1st July, 1994, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- THE SCHEDULE (See section 2) Year No. Short title 1 2 3 1862 3 The Government Seal Act, 1862 1873 5 The Government Savings Banks Act, 1873 1874 4 The Foreign Recruiting Act, 1874 1881 26 The Negotiable Instruments Act, 1881 1884 4 The Explosives Act, 1884 1885 13 The Indian Telegraph Act, 1885 1888 4 The Indian Reserve Forces Act, 1888 1905 4 The Indian Railway Board Act, 1905 1908 6 The Explosive Substances Act, 1908 1938 5 The Manoeuvres, Field Firing and Artillery Practice Act, 1938 1941 25 The Railways (Local Authorities’ Taxation) Act, 1941 1948 31 The National Cadet Corps Act, 1948 1948 37 The Census Act, 1948 1948 46 The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 3 -----
1-Jun-1993
45
The Tezpur University Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1968/1/199345.pdf
central
# THE TEZPUR UNIVERSITY ACT, 1993 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. The University. 4. Objects of the University. 5. Powers of the University. 6. Jurisdiction. 7. University open to all classes, castes and creed. 8. Residence of students. 9. The Visitor. 10. Officers of the University. 11. The Chancellor. 12. The Vice-Chancellor. 13. The Pro-Vice-Chancellor. 14. Deans of Schools. 15. The Registrar. 16. The Finance Officer. 17. Other officers. 18. Authorities of the University. 19. The Board of Management. 20. The Planning and Academic Committee. 21. The Academic Council. 22. The Planning Board. 23. The Boards of Schools. 24. The Finance Committee. 25. Other authorities of the University. 26. Power to make Statutes. 27. Statutes how to be made. 28. Power to make Ordinances. 29. Regulations. 30. Annual report. 31. Annual accounts. 32. Conditions of service of employees. 33. Procedure of appeal and arbitration in disciplinary cases against students. 34. Right to appeal. 35. Provident and pension funds. 36. Disputes as to constitution of University authorities and bodies. 37. Constitution of Committees. 38. Filling of casual vacancies. 39. Proceedings of University authorities or bodies not invalidated by vacancies. 40. Protection of action taken in good faith. 41. Mode of proof of University record. 42. Power to remove difficulties. 43. Transitional provisions. 44. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. THE FIRST SCHEDULE. THE SECOND SCHEDULE. 1 ----- # THE TEZPUR UNIVERSITY ACT, 1993 ACT NO. 45 OF 1993 [1st June, 1993.] # An Act to establish and incorporate a teaching and residential University in the State of Assam at Tezpur and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Tezpur University Act, 1993.** (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “Board of Management” means the Board of Management of the University; (d) “Board of Studies” means the Board of Studies of the University; (e) “Chancellor”, “Vice-Chancellor” and “Pro-Vice-Chancellor” mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (f) “College” means a College maintained by the University; (g) “Department” means a Department of Studies, and includes Centre of Studies; (h) “distance education system” means the system of imparting education through any means of communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more such means; (i) “employee” means any person appointed by the University, and includes teachers and other staff of the University; (j) “Finance Committee” means the Finance Committee of the University; (k) “Hall” means a unit of residence or of corporate life for the students of the University, or of a College or of an Institution, maintained by the University; (l) “Institution” means an academic institution, not being a College, maintained by the University; (m) “Planning and Academic Committee” means the Planning and Academic Committee of the University; (n) “Planning Board” means the Planning Board of the University; (o) “Principal” means the Head of a College or an Institution maintained by the University, and includes, where there is no Principal, the person for the time being duly appointed to act as Principal, and, in the absence of the Principal or the acting Principal, a Vice-Principal duly appointed as such; (p) “recognised institution” means an institution of higher learning recognised by the University; (q) “recognised teachers” means such persons as may be recognised by the University for the purpose of imparting instructions in a College or an Institution maintained by the University; (r) “Regulations” means the Regulations made by any authority of the University under this Act for the time being in force; (s) “School” means a School of Studies of the University; 1. 15th January, 1994, vide notification No. G.S.R 22(E), dated 15th January, 1994, see Gazette of India, Extraordinary, Part II, sec. 3(i) 2 ----- (t) “Statutes” and “Ordinances” mean, respectively, the Statutes and Ordinances of the University for the time being in force; (u) “teachers of the University” means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any College or Institution maintained by the University and are designated as teachers by the Ordinances; (v) “University” means the Tezpur University established under this Act. **3. The University.—(1) There shall be established a University by the name of “Tezpur University”.** (2) The headquarters of the University shall be at Tezpur and it may also establish campuses at such other places within its jurisdiction as it may deem fit. (3) The first Vice-Chancellor and the first members of the Board of Management, the Planning and Academic Committee or the Academic Council or the Planning Board and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, are hereby constituted a body corporate by the name of “Tezpur University”. (4) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. **4. Objects of the University.—The objects of the University shall be to disseminate and advance** knowledge by providing instructional and research facilities in such branches of learning as it may deem fit; to make provisions for integrated courses in humanities, natural and physical sciences, social sciences, agricultural science and forestry and other allied disciplines in the educational programmes of the University; to take appropriate measures for promoting innovations in teaching-learning processes, inter-disciplinary studies and research; to educate and train manpower for the development of the State of Assam; and to pay special attention to the improvement of the social and economic conditions and welfare of the people of that State, their intellectual, academic and cultural development; and the University shall, in organising its activities, have due regard to the objects specified in the First Schedule. **5. Powers of the University.—The University shall have the following powers, namely:—** (i) to provide for instruction in such branches of learning as the University may, from time to time, determine and to make provision for research and for the advancement and dissemination of knowledge; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing on, persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extra-mural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to provide facilities through the distance education system to such persons as it may determine; (vi) to institute Principalships, Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Readerships, Lecturerships or other teaching on academic positions; (vii) to recognise an institution of higher learning for such purposes as the University may determine and to withdraw such recognition; (viii) to recognise persons for imparting instructions in any College or Institution maintained by the University; (ix) to appoint persons working in any other University or organisation as teacher of the University for a specified period; 3 ----- (x) to create administrative, ministerial and other posts and to make appointments thereto; (xi) to co-operate or collaborate or associate with any other University or authority or institution of higher learning in such manner and for such purposes as the University may determine; (xii) to establish such campuses, special centres, specialised laboratories or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objects; (xiii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiv) to establish and maintain Colleges, Institutions and Halls; (xv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; (xvi) to organise and conduct refresher courses, workshops seminars and other programmes for teachers, evaluators and other academic staff; (xvii) to make special arrangements in respect of the residence, discipline and teaching of women students as the University may consider desirable; (xviii) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xix) to confer autonomous status on a College or an Institution or a Department, as the case may be, in accordance with the Statutes; (xx) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xxi) to demand and receive payment of fees and other charges; (xxii) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxiii) to lay down conditions of service of all categories of employees, including their code of conduct; (xxiv) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxv) to make arrangements for promoting the health and general welfare of the employees; (xxvi) to receive benefactions, donations and gifts and to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxvii) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxviii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **6. Jurisdiction.—The jurisdiction of the University shall extend to the whole of the State of Assam.** 7. University open to all classes, castes and creed.—The University shall be open to persons of either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: 4 ----- Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, physically handicapped or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **8. Residence of students.—Every student of the University (other than a student who pursues a** course of study by distance education system) shall reside in a Hall or hostel or under such conditions as may be prescribed by the Ordinances. **9. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including Colleges and Institutions managed by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Board of Management thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct of the University, its buildings, laboratories and equipment, and of any College or Institution maintained by the University and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, Colleges or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (2), give notice of his intention to cause an inspection or inquiry to be made to the University and the University shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any College or Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate to the Board of Management the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Board of Management shall communicate, through the Vice-Chancellor, to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (9) Where the Board of Management does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Board of Management, issue such directions as he may think fit and the Board of Management shall comply with such directions. (10) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and if any cause is shown within a reasonable time, he shall consider the same. (11) The Visitor shall have such other powers as may be prescribed by the Statutes. 5 ----- **10. Officers of the University.—The following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Schools; (5) the Registrar; (6) the Finance Officer; and (7) such other officers as may be declared by the Statutes to be officers of the University. **11. The Chancellor.—(1) The Governor of the State of Assam shall be the Chancellor of the** University. (2) The Chancellor shall, by virtue of his office, be the Head of the University. (3) The Chancellor shall, if present, preside at the convocation of the University held for conferring degrees. **12. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matter: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the Board of Management within three months from the date on which decision on such action is communicated to him and thereupon the Board of Management may confirm, modify or reverse the action taken by the Vice-Chancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **13. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and** shall exercise such powers and perform such duties as may be prescribed by the Statutes. **14. Deans of Schools.—Every Dean of School shall be appointed in such manner and shall exercise** such powers and perform such duties as may be prescribed by the Statutes. **15. The Registrar.—(1) The Registrar shall be appointed in such manner as may be prescribed by the** Statutes. (2) The Registrar shall have the power to enter into agreement, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. 6 ----- **16. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties as may be prescribed by the Statutes. **17. Other officers.—The manner of appointment and powers and duties of the other officers of the** University shall be prescribed by the Statutes. **18. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Board of Management; (2) the Planning and Academic Committee; (3) the Academic Council; (4) the Planning Board; (5) the Boards of Studies; (6) the Finance Committee; and (7) such other authorities as may be declared by the Statutes to be the authorities of the University. **19. The Board of Management.—(1) The Board of Management shall be the principal executive** body of the University. (2) The constitution of the Board of Management, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **20. The Planning and Academic Committee.—(1) There shall be constituted a Planning and** Academic Committee of the University which shall advise the Board of Management on matters relating to the University academic and development activities and oversee, review, monitor the development of the University and keep under review the standard of education and research in the University. (2) The constitution of the Planning and Academic Committee, the term of office of its members and its powers and duties shall be prescribed by the Statutes. (3) The Visitor may determine a date with effect from which the Planning and Academic Committee shall stand dissolved. **21. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **22. The Planning Board.—(1) The Planning Board, as and when constituted, shall be the principal** planning body of the University. (2) The constitution of the Planning Board, term of office of its members and its powers and functions shall be prescribed by the Statutes. **23. The Boards of Schools.—The constitution, powers and functions of the Boards of Schools shall** be prescribed by the Statutes. **24. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **25. Other authorities of the University.—The constitution, powers and functions of other** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. 7 ----- **26. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of the authorities and other bodies of the University, as may be constituted from time to time; (b) the election and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and other conditions of service; (e) the appointment of teachers, academic staff working in any other University or organisation for a specific period for undertaking a joint project; (f) the conditions of service of employees including provision for pension, insurance and provident fund, the manner of termination of service and disciplinary action; (g) the principles governing the seniority of service of the employees of the University; (h) the procedure for arbitration in cases of dispute between employees or students and the University; (i) the procedure for appeal to the Board of Management by any employee or student against the action of any officer or authority of the University; (j) the conferment of autonomous status on a College or an Institution or a Department; (k) the establishment and abolition of Schools, Departments, Centres, Halls, Colleges and Institutions; (l) the conferment of honorary degrees; (m) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (n) the institution of fellowships, scholarships, studentships, medals and prizes; (o) the delegation of powers vested in the authorities or officers of the University; (p) the maintenance of the discipline among the employees and students; (q) all other matters which by this Act are to be or may be provided for by the Statutes. **27. Statutes how to be made.—(1) The first Statutes are those set out in the Second Schedule.** (2) The Board of Management may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Board of Management shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Board of Management. (3) Every new Statute or addition to the Statute or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Board of Management for consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: 8 ----- Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-section, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Board of Management is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Board of Management for its inability to comply with such direction, make or amend the Statutes suitably. **28. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence discipline and teaching of women students and the prescribing of special courses of studies for them; (j) the appointments and emoluments of employees other than those for whom provision has been made in the Statutes; (k) the establishment of Centres of Studies, Boards of Studies, Special Centres, Specialised Laboratories and other Committees; (l) the manner of co-operation and collaboration with other Universities and authorities including learned bodies or associations; (m) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (n) such other terms and conditions of service of teachers and other academic staff as are not prescribed by the Statutes; (o) the management of Colleges and Institutions established by the University; (p) the setting up of a machinery for redressal of grievances of employees; and (q) all other matters which by this Act or the Statutes may be provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Board of Management in the manner prescribed by the Statutes. **29. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. 9 ----- **30. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Board of Management, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects. (2) The annual report so prepared shall be submitted to the Visitor on or before such date as may be prescribed by the Statutes. (3) A copy of the annual report as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **31. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be** prepared under the directions of the Board of Management and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Visitor. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Board of Management and the observations of the Board of Management, if any, shall be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. **32. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Board of Management, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final and no suit shall lie in any civil court in respect of the matters decided by the Tribunal. (4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration Act, 1940 (2 of 1940). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **33. Procedure of appeal and arbitration in disciplinary cases against students.— (1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution, of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Board of Management and the Board of Management may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 32 shall, as far as may be, apply to a reference made under this sub-section. **34. Right to appeal.—Every employee or student of the University or of a College or Institution** maintained by the University shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Board of Management against the decision 10 ----- of any officer or authority of the University or of the Principal of any College or Institution, as the case may be, and thereupon the Board of Management may confirm, modify or reverse the decision appealed against. **35. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provision of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **36. Disputes as to constitution of University authorities and bodies.—If any question arises as to** whether any person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **37. Constitution of Committees.—Where any authority of the University is given power by this Act** or the Statutes to appoint Committees, such Committees shall, save as otherwise provided, consist of the members of the authority concerned and of such other person, if any, as the authority in each case may think fit. **38. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appointed, elected or co-opted the member whose place has become vacant and person appointed, elected of co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **39. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or** proceedings of any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **40. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **41. Mode of proof of University record.—A copy of any receipt, application, notice, order,** proceeding, resolution of any authority or Committee of the University, or other documents in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as prima facie evidence of such receipt, application, notice, order, proceeding, resolution or documents or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence, notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force. **42. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **43. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Vice-Chancellor shall be appointed by the Visitor and the said officer shall hold office for a term of five years; (b) the first Registrar and the first Finance Officer shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; 11 ----- (c) the first Board of Management shall consist of not more than eleven members who shall be nominated by the Visitor and they shall hold office for a term of three years; (d) the first Academic Council and the first Planning Board shall be constituted on the expiry of a period of ten years from the commencement of this Act and during the said period of ten years, the powers and functions of these two authorities shall be exercised and performed by the Planning and Academic Committee constituted under section 20: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the persons so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held that office, if such vacancy had not occurred. **44. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. 12 ----- THE FIRST SCHEDULE (See section 4) THE OBJECTS OF THE UNIVERSITY 1. The University shall endeavour through education, research, training and extension to play a positive role in the development of the North-Eastern Region, and, based on the rich heritage of the region, to promote and advance the culture of the people of the State of Assam and its human resources. Towards this end, it shall— (a) strive to offer employment oriented and inter-disciplinary courses, mostly at post-graduate level, to meet the local and regional aspirations and the development needs of the State of Assam; (b) offer courses and promote research in areas which are of special and direct relevance to the region and in emerging areas in Science and Technology; (c) promote national integration and the study of the rich cultural heritage of the region and, in particular, the diverse ethnic, linguistic and tribal cultures of the State; (d) utilise distance education techniques and modern communication technologies to provide access to higher education for large segments of the population, and in particular, the disadvantaged groups such as those living in remote and rural areas; to upgrade the professional knowledge and skills of in-service personnel, in particular, school teachers, medical personnel and extension staff; and to provide opportunities for life-long learning for adults; and (e) provide an innovative system of university level education, flexible in regard to methods and pace of learning, combination of courses, eligibility for enrolment, age of entry, conduct of examination and operation of the programmes with a view to promote learning and encourage excellence in new fields of knowledge. 13 ----- THE SECOND SCHEDULE (See section 27) THE STATUTES OF THE UNIVERSITY _The Chancellor_ 1. The Governor of the State of Assam shall be the Chancellor of the University. _The Vice-Chancellor_ 2. (1) The Vice-Chancellor shall be appointed by the Visitor from a panel of not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for a fresh panel. (2) The Committee referred to in clause (1), shall consist of three persons, none of whom shall be an employee of the University or a member of the Board of Management, Academic Council or Planning and Academic Committee, member of any authority of the University or connected with an institution associated with the University and out of the three persons, two shall be nominated by the Board of Management and one by the Visitor and the nominee of the Visitor shall be the convenor of the Committee. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances other than the house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence. (ii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Board of Management with the approval of the Visitor from time to time: Provided that where an employee of the University or a College or an Institution maintained by it, or of any other University or any Institution maintained by or affiliated to such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme. (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Board of Management. (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the 1st day of January and July every year: 14 ----- Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice-Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of services. (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half pay leave at the rate of twenty days for each completed year of service. This half pay leave may also be availed of as commuted leave on full pay on medical certificate. When commuted leave is availed, twice the amount of half pay leave shall be debited against half pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the existing Vice-Chancellor attends to the duties of his office, as the case may be. _Powers and duties of the Vice-Chancellor_ 3. (1) The Vice-Chancellor shall be ex officio Chairman of the Board of Management, the Academic Council, the Planning Board and the Finance Committee and shall, in the absence of the Chancellor, preside at the convocations held for conferring degrees. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the university, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed, and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall exercise control over the affairs of the University and shall give effect to the decisions of all the authorities of the University. (5) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he may deem fit. (6) The Vice-Chancellor shall have the power to convene or cause to be convened the meeting of the Board of Management, the Academic Council, the Planning Board and the Finance Committee. _Pro-Vice-Chancellor_ 4. (1) Every Pro-Vice-Chancellor shall be appointed by the Board of Management on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Board of Management, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Board of Management: Provided further that the Board of Management may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Board of Management but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for reappointment: Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: 15 ----- Provided also that the Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until a new Vice-Chancellor or the existing Vice-Chancellor, as the case may be, assumes office: Provided also that when the office of the Vice-Chancellor becomes vacant and there is no Pro-Vice-Chancellor to perform the functions of the Vice-Chancellor, the Board of Management may appoint a Pro-Vice-Chancellor and the Pro-Vice-Chancellor so appointed shall cease to hold office as such as soon as a Vice-Chancellor is appointed and enters upon his office. (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) A Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. _Registrar_ 5. (1) The Registrar shall be appointed by the Board of Management on the recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Ordinances: Provided that the Registrar shall retire on attaining the age of sixty years; Provided further that a Registrar shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and academic staff, as may be specified in the order of the Board of Management and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person concerned has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Board of Management against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Board of Management, Planning and Academic Committee, the Academic Council and the Planning Board, but shall not be deemed to be a member of any of these authorities. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Board of Management shall commit to his charges; 16 ----- (b) to issue all notices convening meetings of the Board of Management, the Academic Council, the Planning and Academic Committee, the Planning Board and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Board of Management, the Academic Council, the Planning Board and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Board of Management, the Academic Council, the Planning and Academic Committee and the Planning Board; (e) to arrange for and superintend the examinations of the University in accordance with the manner prescribed by the Ordinances; (f) to supply to the Visitor copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (g) to represent the University in suits or proceedings by or against the University, sign powers-of-attorney and verify pleadings or depute his representative for the purpose; and (h) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required, from time to time, by the Board of Management or the Vice-Chancellor. _The Finance Officer_ 6. (1) The Finance Officer shall be appointed by the Board of Management on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Ordinances: Provided that a Finance Officer shall retire on attaining the age of sixty years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee, but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Board of Management or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Board of Management, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Board of Management for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Board of Management; 17 ----- (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Special Centres, Specialised Laboratories, Colleges and Institutions maintained by the University; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Centre, Laboratory, College or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Board of Management for any money payable to the University shall be sufficient discharge for payment of such money. _Deans of Schools of Studies_ 7. (1) Every Dean of a School of Studies shall be appointed by the Vice-Chancellor from among the Professors in the School for a period of three years and he shall be eligible for reappointment: Provided that a Dean on attaining the age of sixty years shall cease to hold office as such: Provided further that if at any time there is no Professor in a School, the Vice-Chancellor, or a Dean authorised by the Vice-Chancellor in this behalf, shall exercise the powers of the Dean of the School. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in that School and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the School, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. _Heads of Departments_ 8. (1) In the case of Departments which have more than one Professor, the Head of the Department shall be appointed by the Board of Management on the recommendation of the Vice-Chancellor from among the Professors. (2) In the case of Departments where there is only one Professor, the Board of Management shall have the option to appoint, on the recommendation of the Vice-Chancellor, either the Professor or a Reader as the Head of the Department: Provided that it shall be open to a Professor or Reader to decline the offer of appointment as the Head of the Department. (3) A person appointed as the Head of the Department shall hold office as such for a period of three years and shall be eligible for reappointment. (4) A Head of a Department may resign his office at any time during his tenure of office. (5) A Head of a Department shall perform such duties as may be prescribed by the Ordinances. 18 ----- _Proctors_ 9. (1) Every Proctor shall be appointed by the Board of Management on the recommendations of the Vice-Chancellor and shall exercise such powers and perform such duties as may be assigned to him by the Vice-Chancellor. (2) Every Proctor shall hold office for a term of two years and shall be eligible for reappointment. _Librarian_ 10. (1) The Librarian shall be appointed by the Board of Management on the recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Board of Management. _Quorum for meetings of the Board of Management_ 11. Five members of the Board of Management shall form a quorum for a meeting of the Board of Management. _Powers and functions of the Board of Management_ 12. (1) The Board of Management shall have the power of management and administration of the revenue and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Board of Management shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff and Principals of Colleges and Institutions maintained by the University: Provided that no action shall be taken by the Board of Management in respect of the number, qualifications and the emoluments of teachers and academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, and Principals of Colleges and Institutions maintained by the University on the recommendation of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to create administrative, ministerial and other necessary posts and to make appointments thereto in the manner prescribed by the Ordinances; (iv) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (v) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vi) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University, and for that purpose to appoint such agents as it may think fit; (vii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendations of the Finance Committee; (viii) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time, as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (ix) to transfer or accept transfers of any movable or immovable property on behalf of the University; 19 ----- (x) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xi) to enter into, vary, carry out and cancel contracts on behalf of the University; (xii) to entertain, adjudicate upon, and, if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiii) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xiv) to select a common seal for the University and provide for the custody and use of such seal; (xv) to make such special arrangements as may be necessary for the residence and discipline of women students; (xvi) to delegate any of its powers to the Vice-Chancellor, the Pro-Vice-Chancellor, the Deans, the Registrar or the Finance Officer or such other employee or authority of the University or to a committee appointed by it as it may deem fit; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act, or the Statutes. _Constitution, powers and functions of the Planning and Academic Committee_ 13. (1) The Planning and Academic Committee shall consist of the following members, namely:— (i) the Vice-Chairman of the University Grants Commission appointed under sub-section (1) of section 5 of the University Grants Commission Act, 1956 (3 of 1956), ex officio Chairman; (ii) the Vice-Chancellor; (iii) the Pro-Vice-Chancellor; (iv) all Deans of Schools; (v) three teachers of the University to be nominated by the Board of Management; (vi) one representative each of the— (a) North-Eastern Regional Institute of Science and Technology; (b) North-Eastern Council set up under section 3 of the North-Eastern Council Act, 1971 (84 of 1971); (c) Ministry of Human Resource Development, Government of India; and (d) the State Government of Assam; (vii) three distinguished academics to be nominated by the Visitor; (viii) three persons of eminence in public life to be nominated by the Visitor; (ix) the Registrar who shall be ex officio Secretary of the Committee. (2) All members, of the Committee, other than ex officio members shall hold office for a term of five years. (3) Subject to the provisions of this Act, the Statutes and Ordinances, the Committee shall in addition to the powers vested in it, have the following powers, namely:— (a) to advise the Board of Management on matters relating to the university academic and development activities, that is to say, identification and introduction of courses, development of campus infrastructure, framing of admission and recruitment policies; 20 ----- (b) to exercise the powers and discharge the functions of the Academic Council and the Planning Board; (c) to exercise such other powers and to perform such other functions as may be conferred upon or entrusted to it by these Statutes. (4) The Planning and Academic Committee shall meet at such intervals as it shall deem expedient, but it shall meet at least twice in a year. (5) On the date determined by the Visitor under sub-section (3) of section 20, this Statute shall cease to have effect. _Quorum for meetings of the Academic Council_ 14. Nine Members of the Academic Council shall form a quorum for a meeting of the Academic Council. _Powers of the Academic Council_ 15. Subject to the Act, the Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instructions, co-operative teaching among Colleges and Institutions, evaluation of research or improvements in academic standards; (b) to bring about inter-School co-ordination, to establish or appoint committees or boards, for taking up projects on an inter-School basis; (c) to consider matters of general academic interest either on its own initiative or on a reference by a School or the Board of Management and to take appropriate action thereon; and (d) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residences, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. _The Planning Board_ 16. (1) The Planning Board shall be the principal planning body of the University and shall be responsible for— (a) reviewing the educational programmes offered by the University; (b) organising the structure of education in the University so as to provide opportunities to students to offer different combinations of subjects appropriate for the development of personality and skills for useful work in society; (c) creating an atmosphere and environment conducive to value-oriented education; and (d) developing new teaching-learning processes which will combine the lectures, tutorials, seminars, demonstrations, self-studies and collective practical projects. (2) The Planning Board shall have the power to advise on the development of the University and review the progress implementation of programmes so as to ascertain whether they are on the lines recommended by it and shall also have the power to advise the Board of Management and the Academic Council on any matter in connection therewith. (3) The Academic Council and the Board of Management shall be bound to consider the recommendations of the Planning Board and shall implement such of the recommendations as are accepted by it. (4) Such of those recommendations of the Planning Board as have not been accepted by the Board of Management or the Academic Council under clause (3) shall be submitted by the Vice-Chancellor along with the recommendations of the Board of Management or the Academic Council, to the Visitor for 21 ----- advice and the advice of the Visitor shall be implemented by the Board of Management or the Academic Council, as the case may be. (5) The Planning Board may constitute such committees as may be necessary for planning and monitoring the programmes of the University. _Schools of Studies and Departments_ 17. (1) The University shall have such Schools of Studies as may be specified by the Ordinances. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Board of Management and shall hold office for a period of three years. (3) The powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Each School shall consist of such Departments as may be assigned to it by the Ordinances. (b) No Department shall be established or abolished except by the Statutes: Provided that the Board of Management may, on the recommendation of the Planning and Academic Committee or the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Board of Management may consider necessary. (c) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) Persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) such other persons as may be members of the Department in accordance with the provisions of the Ordinances. _Board of Studies_ 18. (1) Each Department shall have a Board of Post-graduate Studies and a Board of Under-graduate Studies. (2) The constitution of a Board of Post-graduate Studies and the term of office of its members shall be prescribed by the Ordinances. (3) The functions of a Board of Post-graduate Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for Post-graduate courses, but excluding research degrees; (b) appointment of supervisors of research; and (c) measures for the improvement of the standard of post-graduate teaching and research: Provided that the above functions of a Board of Post-graduate Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. (4) The constitution and functions of a Board of Under-graduate Studies and the term of its members shall be prescribed by the Ordinances. 22 ----- _Finance Committee_ 19. (1) The Finance Committee shall consist of the following members, namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) three persons nominated by the Board of Management, out of whom at least one shall be a member of the Board of Management; and (iv) three persons nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, should be examined by the Finance Committee before they are considered by the Board of Management. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Board of Management for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). _Selection Committees_ 20. (1) There shall be Selection Committees for making recommendations to the Board of Management for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Colleges and Institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in column 1 of the Table below shall consist of the Vice-Chancellor, Pro-Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in column 2 of the said Table: TABLE 1 2 Professor (i) The Head of the Department concerned if he is a Professor. (ii) One Professor to be nominated by the Vice-Chancellor. (iii) Three persons not in the service of the University, nominated by the Board of Management, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Head of the Department concerned. (ii) One Professor to be nominated by the Vice-Chancellor. 23 ----- 1 2 (iii) Two persons not in the service of the University, nominated by the Board of Management, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader or a Lecturer will be concerned. Registrar, (i) Two members of the Board of Management nominated by it. Finance Officer (ii) One person not in the service of the University nominated by the Board of Management. Librarian (i) Two persons not in the service of the University, who have special knowledge of the subject of the Library Science/Library Administration to be nominated by the Board of Management. (ii) One person not in the service of the University, nominated by the Board of Management. Principal of College or Institution Three persons not in the service of the University of whom maintained by the University. two shall be nominated by the Board of Management and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. NOTE: 1. Where the appointment is being made for an inter-disciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. 2. The Professor to be nominated shall be Professor concerned with the speciality for which the selection is being made and that the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. (3) The Vice-Chancellor, or in his absence, the Pro-Vice-Chancellor shall preside at the meetings of a Selection Committee: Provided that the meetings of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor’s nominee and the persons nominated by the Board of Management under clause (2): Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor’s nominee and the persons nominated by the Board of Management is four in all, at least three of them attend the meeting; and (b) where the number of Visitor’s nominee and the persons nominated by the Board of Management is three in all, at least two of them attend the meeting. (4) The meeting of a Selection Committee shall be convened by the Vice-Chancellor or in his absence by the Pro-Vice-Chancellor. (5) The procedure to be followed by a Selection Committee in making recommendations shall be laid down in the Ordinances. (6) If the Board of Management is unable to accept the recommendations made by a Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (7) Appointments to temporary posts shall be made in the manner indicated below:— (i) If the temporary vacancy is for a duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: 24 ----- Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis by a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in case sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. _Special mode of appointment_ 21. (1) Notwithstanding anything contained in Statute 20, the Board of Management may invite a person of high academic distinction and professional attainments to accept a post of Professor or Reader or any other academic post in the University, as the case may be, on such terms and conditions as it deems fit, and on the person agreeing to do so appoint him to the post. (2) The Board of Management may appoint a teacher or any other academic staff working in any other University or Organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. _Appointment for a fixed tenure_ 22. The Board of Management may appoint a person selected in accordance with the procedure laid down in Statute 20 for a fixed tenure on such terms and conditions as it deem fit. _Recognised teachers_ 23. (1) The qualifications of recognised teachers shall be such as may be prescribed by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down in the Ordinances. (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. (6) Any person aggrieved by an order of withdrawal under clause (5) may, within three months from the date of communication to him of such order, appeal to the Board of Management which may pass such orders thereon as it thinks fit. 25 ----- _Committees_ 24. (1) Any authority of the University may appoint as many standing or special Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) Any such Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing. _Terms and conditions of service and code of conduct of the teachers, etc._ 25. (1) All the teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (3) A copy of every contract referred to in clause (2) shall be deposited with the Registrar. _Terms and conditions of service and code of conduct of other employees_ 26. All the employees of the University other than the teachers and other academic staff of the University, shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. _Seniority list_ 27. (1) Whenever, in accordance with the Statutes, any person is to hold an office or be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Board of Management may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain, in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Board of Management whose decision thereon shall be final. _Removal of employees of the University_ 28. (1) Where there is an allegation of misconduct against a teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee, may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Board of Management the circumstances in which the order was made: Provided that the Board of Management may, if it is of the opinion, that the circumstances, of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Board of Management in respect of teachers and other academic staff, and the appointing authority, in respect of other employees, shall have the power to remove a teacher or a member of the academic staff, or as the case may be, other employee on grounds of misconduct. (3) Save as aforesaid, the Board of Management or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months’ notice or on payment of three months’ salary in lieu thereof. 26 ----- (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months’ notice in writing to the Board of Management or the appointing authority, as the case may be, or by paying three month’s salary in lieu thereof: (b) if he is not a permanent employee, only after giving one month’s notice in writing to the Board of Management or, as the case may be, the appointing authority or by paying one month’s salary in lieu thereof; Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Board of Management or the appointing authority, as the case may be. _Honorary degrees_ 29. (1) The Board of Management may, on the recommendation of the Academic Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Board of Management may, on its own motion, make such proposals. (2) The Board of Management may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. _Withdrawal of degrees, etc._ 30. The Board of Management may, by a special resolution passed by a majority of not less than two-thirds of the members present and voting withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Board of Management. _Maintenance of discipline among students of the University_ 31. (1) All powers relating to discipline and disciplinary action in relation to students of the University shall vest in the Vice-Chancellor. (2) The Vice-Chancellor may delegate all or any of his powers as he deems proper to a Proctor and to such other officers as he may specify in this behalf. (3) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of his powers, by order, direct that any student or students be expelled, or rusticated, for a specified period, or be not admitted to a course or courses of study in a College, Institution or Department of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a School for one or more years, or that the results of the 27 ----- student or students concerned in the examination or examinations which he or they have appeared be cancelled. (4) The Principals of Colleges, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Schools and teaching Departments in the University as may be necessary for the proper conduct of such Colleges, Institutions, Schools and teaching in the Departments. (5) Without prejudice to the powers of the Vice-Chancellor, the principals and other persons specified in clause (4), detailed rules of discipline and proper conduct shall be made by the University. The Principals of Colleges, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make the supplementary rules as they deem necessary for the aforesaid purposes. (6) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. _Convocations_ 32. Convocations of the University for the conferring of degrees or for other purposes shall be held in such manner as may be prescribed by the Ordinances. _Acting Chairman of Meetings_ 33. Where no provision is made for a President or Chairman to preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present elect one from among themselves to preside at such meeting. _Resignation_ 34. Any member, other than an _ex officio member, of the Board of Management, the Academic_ Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. _Disqualifications_ 35. (1) A person shall be disqualified for being chosen as, and for being, a member of any of the authorities of the University,— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1) the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. _Residence condition for membership and office_ 36. Notwithstanding anything contained in the Statutes, a person, who is not ordinarily resident in India shall be eligible to be an officer of the University or a member of any authority of the University. _Membership of authorities by virtue of membership of other bodies_ 37. Notwithstanding anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. 28 ----- _Alumni Association_ 38. (1) There shall be an Alumni Association for the University. (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of the election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year’s membership shall not apply in the case of the first election. _Students’ Council_ 39. (1) There shall be constituted in the University, a Students’ Council for every academic year, consisting of— (i) the Dean of Students’ Welfare who shall be the Chairman of the Students’ Council; (ii) all students who have won prizes in the previous academic year in the fields of studies, fine arts, sports and extension work; (iii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sport, activities and all-round development of personality: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students’ Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students’ Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students’ welfare and other matters of importance in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. (3) The Students’ Council shall meet at least once in an academic year preferably in the beginning of that year. _Ordinances how made_ 40. (1) The first Ordinances made under sub-section (2) of section 28 may be amended, repealed or added to at any time by the Board of Management in the manner specified below. (2) No Ordinance in respect of the matters enumerated in section 28, other than those enumerated in clause (n) of sub-section (1) thereof, shall be made by the Board of Management unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Board of Management shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for reconsideration, either in whole or in part, together with any amendment which the Board of Management may suggest. (4) Where the Board of Management has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Board of Management which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Board of Management shall come into effect immediately. (6) Every Ordinance made by the Board of Management shall be submitted to the Visitor within two weeks from the date of its adoption. The Visitor shall have the power to direct the University within four weeks of the receipt of the Ordinance to suspend the operation of any such Ordinance and he shall, as soon as possible, inform the Board of Management about his objection to the proposed Ordinance. The 29 ----- Visitor may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. _Regulations_ 41. (1) The authorities of the University may make Regulation consistent with the Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Board of Management may direct the amendment in such manner as it may specify, of any Regulation made under the Statutes or the annulment of any such Regulation. _Delegation of powers_ 42. Subject to the provisions of the Act and the Statutes, any officer or authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 30 -----
5-Jun-1993
46
The Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1581/1/199346.pdf
central
# THE EMPLOYMENT OF MANUAL SCAVENGERS AND CONSTRUCTION OF DRY LATRINES (PROHIBITION) ACT, 1993 _________ ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINAR SECTIONS 1. Short title, application and commencement. 2. Definitions. CHAPTER II PROHIBITION OF EMPLOYMENT OF MANUAL SCAVENGERS, ETC. 3. Prohibition of employment of manual scavengers, etc. 4. Power to exempt. CHAPTER III IMPLEMENTING AUTHORITIES AND SCHEMES 5. Appointment of Executive Authorities and their powers and functions. 6. Power of State Government to make schemes. 7. Power of State Government to issue directions. 8. Executive Authorities, inspectors, officers and other employees of such authorities to be public servants. 9. Appointment of inspectors and their powers of entry and inspection. 10. Power of Executive Authority to prevent environmental pollution in certain cases. 11. Duty of HUDCO to extend financial assistance in certain cases. 12. Power to levy fee. 13. Constitution of committees. CHAPTER IV PENALTIES AND PROCEDURE 14. Penalty for contravention of the provisions of the Act and rules, orders, directions and schemes. 15. Offences by companies. 16. Offences to be cognizable. 17. Provision in relation to jurisdiction. 18. Limitation of prosecution. CHAPTER V MISCELLANEOUS 19. Information, reports or returns. 20. Protection of action taken in good faith. 21. Effect of other laws and agreements inconsistent with the Act. 22. Power of Central Government to make rules. 23. Power of State Government to make rules. 24. Power to remove difficulties. ----- # THE EMPLOYMENT OF MANUAL SCAVENGERS AND CONSTRUCTION OF DRY LATRINES (PROHIBITION) ACT, 1993 ACT NO. 46 OF 1993 [5th June, 1993.] # An Act to provide for the prohibition of employment of manual scavengers as well as construction or continuance of dry latrines and for the regulation of construction and maintenance of water-seal latrines and for matters connected therewith or incidental thereto. WHEREAS fraternity assuring the dignity of the individual has been enshrined in the Preamble to the Constitution; AND WHEREAS article 47 of the Constitution, inter alia, provides that the State shall regard raising the standard of living of its people and the improvement of public health as among its primary duties; AND WHEREAS the dehumanizing practice of manual scavenging of human excreta still continues in many parts of the country; AND WHEREAS the municipal laws by themselves as a measure for conversion of dry latrines into water-seal latrines and prevention of construction of dry latrines are not stringent enough to eliminate this practice; AND WHEREAS it is necessary to enact a uniform legislation for the whole of India for abolishing manual scavenging by declaring employment of manual scavengers for removal of human excreta an offence and thereby ban the further proliferation of dry latrines in the country; AND WHEREAS it is desirable for eliminating the dehumanising practice of employment of manual scavengers and for protecting and improving the human environment to make it obligatory to convert dry latrines into water-seal latrines or to construct water-seal latrines in new construction; AND WHEREAS Parliament has no power to make laws for the States with respect to the matters aforesaid, except as provided in articles 249 and 250 of the Constitution; AND WHEREAS in pursuance of clause (1) of article 252 of the Constitution, resolutions have been passed by all the Houses of the Legislatures of the States of Andhra Pradesh, Goa, Karnataka, Maharashtra, Tripura and West Bengal that the matters aforesaid should be regulated in those States by Parliament by law; BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, application and commencement.—(1) This Act may be called the Employment of** Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993. (2) It applies in the first instance to the whole of the States of Andhra Pradesh, Goa, Karnataka, Maharashtra, Tripura and West Bengal and to all the Union territories and it shall also apply to such other State which adopts this Act by resolution passed in that behalf under clause (1) of article 252 of the Constitution. (3) It shall come into force in the States of Andhra Pradesh, Goa, Karnataka, Maharashtra, Tripura and West Bengal and in the Union territories on such date[1] as the Central Government may, by notification, appoint and in any other State which adopts this Act under clause (1) of article 252 of the Constitution, on the date of such adoption. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “area”, in relation to any provision of this Act, means such area as the State Government may, having regard to the requirements of that provision, specify by notification; 1. 26th January, 1997, vide notification No. S.O. 58(E), dated 24th January, 1997, see Gazette of India, Extraordinary, Part II, sec. 3(ii). Extended to the Union territory of Jammu and Kashmir and Union territory of Ladakh by Act 34 of 2019, s. 95 and the fifth Schedule (w.e.f. 31-10-2019). ----- (b) “building” means a house, out-house, stable, latrine, urinal, sheet house, hut, wall (other than a boundary wall) or any other structure whether made of masonry, bricks, wood, mud, metal or other material; (c) “dry latrine” means a latrine other than a water-seal latrine; (d) “environment” includes water, air and land and the inter-relationship which exists among and between water, air and land and human beings, other living creatures, plants, micro-organism and property; (e) “environmental pollutant” means any solid, liquid or gaseous substance present in such concentration as may be, or tend to be, injurious to environment; (f) “environmental pollution” means the presence in the environment of any environmental pollutant; (g) “Executive Authority” means an Executive Authority appointed under sub-section (1) of section 5; (h) “HUDCO” means the Housing and Urban Development Corporation Limited, a Government company registered by that name under the Companies Act, 1956 (1 of 1956); (i) “latrine” means a place set apart for defecation together with the structure comprising such place, the receptacle therein for collection of human excreta and the fittings and apparatus, if any, connected therewith; (j) “manual scavenger” means a person engaged in or employed for manually carrying human excreta and the expression “manual scavenging” shall be construed accordingly; (k) “notification” means a notification published in the Official Gazette; (l) “prescribed” means prescribed by rules made under this Act; (m) “State Government”, in relation to a Union territory, means the Administrator thereof appointed under article 239 of the Constitution; (n) “water-seal latrine” means a pour-flush latrine, water flush latrine or a sanitary latrine with a minimum water-seal of 20 millimetres diameter in which human excreta is pushed in or flushed by water. CHAPTER II PROHIBITION OF EMPLOYMENT OF MANUAL SCAVENGERS, ETC. **3. Prohibition of employment of manual scavengers, etc.—(1) Subject to sub-section (2) and the** other provisions of this Act, with effect from such date and in such area as the State Government may, by notification, specify in this behalf, no person shall— (a) engage in or employ for or permit to be engaged in or employed for any other person for manually carrying human excreta; or (b) construct or maintain a dry latrine. (2) The State Government shall not issue a notification under sub-section (1) unless— (i) it has, by notification, given not less than ninety days’ notice of its intention to do so; (ii) adequate facilities for the use of water-seal latrines in that area exist; and (iii) it is necessary or expedient to do so for the protection and improvement of the environment or public health in that area. **4. Power to exempt.—The State Government may, by a general or special order published in the** Official Gazette, and upon such conditions, if any, as it may think fit to impose, exempt any area, category of buildings or class of persons from any provisions of this Act or from any specified requirement contained in this Act or any rule, order, notification or scheme made thereunder or dispense with the observance of any such requirement in a class or classes of cases, if it is satisfied that compliance ----- with such provisions or such requirement is or ought to be exempted or dispensed with in the circumstances of the case. CHAPTER III IMPLEMENTING AUTHORITIES AND SCHEMES **5. Appointment of Executive Authorities and their powers and functions.—(1) The State** Government may, by order published in the Official Gazette, appoint a District Magistrate or a Sub-Divisional Magistrate, as an Executive Authority to exercise jurisdiction within such area as may be specified in the order and confer such powers and impose such duties on him, as may be necessary to ensure that the provisions of this Act are properly carried out and the Executive Authority may specify the officer or officers, subordinate to him, who shall exercise all or any of the powers, and perform all or any of the duties, so conferred or imposed and the local limits within which such powers or duties shall be carried out by the officer or officers so specified. (2) The Executive Authority appointed under sub-section (1) and the officer or officers specified under that sub-section shall, as far as practicable, try to rehabilitate and promote the welfare of the persons who were engaged in or employed for as manual scavengers in any area in respect of which a notification under sub-section (1) of section 3 has been issued by securing and protecting their economic interests. **6. Power of State Government to make schemes.—(1) The State Government may, by notification,** make one or more schemes for regulating conversion of dry latrines into, or construction and maintenance of, water-seal latrines, rehabilitation of the persons who were engaged in or employed for as manual scavengers in any area in respect of which a notification under sub-section (1) of section 3 has been issued in gainful employment and administration of such schemes and different schemes may be made in relation to different areas and for different purposes of this Act: Provided that no such scheme as involving financial assistance from the HUDCO shall be made without consulting it. (2) In particular, and without prejudice to the generality of the foregoing power, such schemes may provide for all or any of the following matters, namely:— (a) time-bound phased programme for the conversion of dry latrines into water-seal latrines; (b) provision of technical or financial assistance for new or alternate low cost sanitation to local bodies or other agencies; (c) construction and maintenance of community latrines and regulation of their use on pay and use basis; (d) construction and maintenance of shared latrines in slum areas or for the benefit of socially and economically backward classes of citizens; (e) registration of manual scavengers and their rehabilitation; (f) specification and standards of water-seal latrines; (g) procedure for conversion of dry latrines into water-seal latrines; (h) licensing for collection of fees in respect of community latrines or shared latrines. **7. Power of State Government to issue directions.—Notwithstanding anything contained in any** other law but subject to the other provisions of this Act, the State Government may, in the exercise of its powers and performance of its functions under this Act, issue directions in writing to any person, officer or local or other authority and such person, officer or a local or other authority shall be bound to comply with such directions. **8. Executive Authorities, inspectors, officers and other employees of such authorities to be** **public servants.—All Executive Authorities, all officers and other employees of such authorities** including the officers authorised under sub-section (1) of section 5, all inspectors appointed under sub-section (1) of section 9 and all officers and other employees authorised to execute a scheme or order made under this Act, when acting or purporting to act in pursuance of any provisions of this Act or the ----- rules or schemes made or orders or directions issued thereunder, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **9. Appointment of inspectors and their powers of entry and inspection.—(1) The State** Government may, by notification, appoint such persons as it may think fit to be inspectors for the purposes of this Act, and define the local limits within which they shall exercise their powers under this Act. (2) Every inspector within the local limits of jurisdiction of an Executive Authority shall be subordinate to such authority. (3) Subject to any rules made in this behalf by the State Government, an inspector may, within the local limits of his jurisdiction, enter, at all reasonable times, with such assistance as he considers necessary, any place for the purpose of— (a) performing any of the functions of the Executive Authority entrusted to him; (b) determining whether and if so in what manner, any such functions are to be performed or whether any provisions of this Act or the rules, orders or schemes made thereunder or any notice, order, direction or authorisation served, made, given or granted under this Act is being or has been complied with; (c) examining and testing any latrine or for conducting an inspection of any building in which he has reason to believe that an offence under this Act or the rules, orders or schemes made thereunder has been or is being or is about to be committed and to prevent or mitigate environmental pollution. **10. Power of Executive Authority to prevent environmental pollution in certain cases.—(1) On** receipt of information with respect to the fact or apprehension of any occurrence of contravention of the provisions of section 3, whether through intimation by some person or on a report of the inspector or otherwise, the Executive Authority shall, as early as practicable, besides taking any other action under this Act, direct the owner or occupier of the premises to take such remedial measures, as may be necessary, within such reasonable time as may be specified therein and in case the owner or occupier, as the case may be, fails to comply with such directions, cause such remedial measures to be taken as are necessary to prevent or mitigate the environmental pollution at the cost of such owner or occupier of the premises. (2) The expenses, if any, incurred by the Executive Authority with respect to the remedial measures referred to in sub-section (1), together with interest at such rate as the State Government may specify from the date when a demand for the expenses is made until it is paid, may be recovered by such authority or agency from the person concerned as arrears of land revenue or of public demand. **11. Duty of HUDCO to extend financial assistance in certain cases.—(1) Notwithstanding** anything contained in its Memorandum of Association or Articles of Association or schemes for the grant of loans for housing and urban development, it shall be the duty of HUDCO to extend, in suitable cases, financial assistance for the implementation of such schemes for the construction of water-seal latrines as may be made under section 6. (2) The financial assistance referred to in sub-section (1) may be extended by HUDCO on such terms and conditions (including on easy and concessional rates of interest) and in such manner as it may think fit in each case or class of cases. **12. Power to levy fee.—Any order or scheme which the State Government is empowered to make** under this Act may, notwithstanding the absence of any express provision to that effect, provide for levy of fees in respect of— (a) community latrines constructed under a scheme on pay and use basis; or (b) shared latrines constructed under a scheme; or (c) supply of copies of documents or orders or extracts thereof; or (d) licensing of contractors for construction of water-seal latrines; or (e) any other purpose or matter involving rendering of service by any officer, committee or authority under this Act or any rule, direction, order or scheme made thereunder: ----- Provided that the State Government may, if it considers necessary so to do, in the public interest, by general or special order published in the Official Gazette, grant exemption on such grounds as it deems fit from the payment of any such fee either in part or in full. **13. Constitution of committees.—(1) The Central Government may, by notification, constitute—** (a) one or more Project Committees for appraising of the schemes for the construction of water seal latrines in the country; (b) one or more Monitoring Committees to monitor the progress of such schemes; (c) such other committees for such purposes of the Act and with such names as the Central Government may deem fit. (2) The composition of the committees constituted by the Central Government, the powers and functions thereof, the terms and conditions of appointment of the members of such committees and other matters connected therewith shall be such as the Central Government may prescribe. (3) The members of the committees under sub-section (1) shall be paid such fees and allowances for attending the meetings as may be prescribed. (4) The State Government may, by notification, constitute— (a) one or more State Co-ordination Committees for coordinating and monitoring of the programmes for the construction of water-seal latrines in the State and rehabilitation of the persons who were engaged in or employed for as manual scavengers in any area in respect of which a notification under sub-section (1) of section 3 has been issued; (b) such other committees for such purpose of the Act and with such names as the State Government may deem fit. (5) The composition of the committees constituted by the State Government the powers and functions thereof, the terms and conditions of the members of such committees and other matters connected therewith shall be such as the State Government may prescribe. (6) The members of the committees under sub-section (4) shall be paid such fees and allowances for attending the meetings as may be prescribed. CHAPTER IV PENALTIES AND PROCEDURE **14. Penalty for contravention of the provisions of the Act and rules, orders, directions and** **schemes.—Whoever fails to comply with or contravenes any of the provisions of this Act, or the rules or** schemes made or orders or directions issued thereunder, shall, in respect of each such failure or contravention be punishable with imprisonment for a term which may extend to one year or with fine, which may extend to two thousand rupees, or with both, and in case the failure or contravention continues, with additional fine which may extend to one hundred rupees for every day during which such failure or contravention continues after the conviction for the first such failure or contravention. **15. Offences by companies.—(1) If the person committing an offence under this Act is a company,** the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of any director, manager, managing agent or such other officer of the company, such director, manager, managing agent or such other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. ----- _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **16. Offences to be cognizable.—Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), every offence under this Act shall be cognizable. **17. Provision in relation to jurisdiction.—(1) No court inferior to that of a Metropolitan Magistrate** or a Judicial Magistrate of the first class shall try any offence under this Act. (2) No prosecution for any offence under this Act shall be instituted except by or with the previous sanction of the Executive Authority. (3) No court shall take cognizance of any offence under this Act except upon a complaint made by a person generally or specially authorised in this behalf by the Executive Authority. **18. Limitation of prosecution.—No court shall take cognizance of an offence punishable under this** Act unless the complaint thereof is made within three months from the date on which the alleged commission of the offence came to the knowledge of the complainant. CHAPTER V MISCELLANEOUS **19. Information, reports or returns.—The Central Government may, in relation to its functions** under this Act, from time to time, require any person, officer, State Government or other authority to furnish to it, any prescribed authority or officer any reports, returns, statistics, accounts and other information as may be deemed necessary and such person, officer, State Government or other authority, as the case may be, shall be bound to do so. **20. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Government or any officer or other employee of the Government or any authority constituted under this Act or executing any scheme made under this Act or any member, officer or other employee of such authority or authorities in respect of anything which is done or intended to be done in good faith in pursuance of this Act or the rules or schemes made, or the orders or directions issued, thereunder. **21. Effect of other laws and agreements inconsistent with the Act.—(1) Subject to the provisions** of sub-section (2), the provisions of this Act, the rules, schemes or orders made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act, custom, tradition, contract, agreement or other instrument. (2) If any act or omission constitutes an offence punishable under this Act and also under any other Act, then, the offender found guilty of such offence shall be liable to be punished under the other Act, and not under this Act. **22. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules to carry out the provisions of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (i) the composition of the Project Committees, Monitoring Committees and other committees constituted by the Central Government under sub-section (1) of section 13, the powers and functions thereof, the number of members and their terms and conditions of appointment and other matters connected therewith; (ii) the fees and allowances to be paid to the members of the committees constituted under sub section (1) of section 13. (3) Every rule made by the Central Government under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the ----- session immediately following the session or the successive sessions aforesaid, both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **23. Power of State Government to make rules.—(1) The State Government may, by notification,** make rules, not being a matter for which the rules are or required to be made by the Central Government, for carrying out the provisions of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (i) the composition of the State Co-ordination Committees and other committees constituted by the State Government under sub-section (4) of section 13, the powers and functions thereof, the number of members and their terms and conditions of appointment and other matters connected therewith; (ii) the fees and allowances to be paid to the members of the committees constituted under sub section (4) of section 13; (iii) any other matter which is required to be, or may be, prescribed. (3) Every rule and every scheme made by the State Government under this Act shall be laid, as soon as may be after it is made, before the State Legislature. **24. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for the removal of the difficulty: Provided that no such order shall be made in relation to a State after the expiration of three years from the commencement of this Act in that State. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. -----
27-Aug-1993
51
The Recovery Of Debts And Bankruptcy Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1775/1/AArecovery1993__51.pdf
central
# THE RECOVERY OF DEBTS AND BANKRUPTCY ACT, 1993 ________________ # ARRANGEMENT OF SECTIONS Last Updated: 9-9-2021 ________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, commencement and application. 2. Definitions. CHAPTER II ESTABLISHMENT OF TRIBUNAL AND APPELLATE TRIBUNAL 3. Establishment of Tribunal. 4. Composition of Tribunal. 5. Qualifications for appointment as Presiding Officer. 6. Term of office of Presiding Officer. 6A. Qualifications, terms and conditions of service of Presiding Officer. 7. Staff of Tribunal. 8. Establishment of Appellate Tribunal. 9. Composition of Appellate Tribunal. 10. Qualifications for appointment as Chairperson of the Appellate Tribunal. 11. Term of office of Chairperson of Appellate Tribunal. 12. Staff of the Appellate Tribunal. 13. Salary and allowances and other terms and conditions of service of Presiding Officers. 14. Filling up of vacancies. 15. Resignation and removal. 15A. Qualifications, terms and conditions of service of Chairperson. 16. Orders constituting Tribunal or an Appellate Tribunal to be final and not to invalidate its proceedings. CHAPTER III JURISDICTION, POWERS AND AUTHORITY OF TRIBUNALS 17. Jurisdiction, powers and authority of Tribunals. 17A. Power of Chairperson of Appellate Tribunal. 18. Bar of jurisdiction. CHAPTER IV PROCEDURE OF TRIBUNALS 19. Application to the Tribunal. 19A. Filing of recovery applications, documents and written statements in electronic form. 20. Appeal to the Appellate Tribunal. 21. Deposit of amount of debt due, on filing appeal. 22. Procedure and powers of the Tribunal and the Appellate Tribunal. 22A. Uniform procedure for conduct of proceedings. 23. Right to legal representation and Presenting Officers. 24. Limitation. ----- CHAPTER V RECOVERY OF DEBT DETERMINED BY TRIBUNAL SECTIONS 25. Modes of recovery of debts. 26. Validity of certificate and amendment thereof. 27. Stay of proceedings under certificate and amendment or withdrawal thereof. 28. Other modes of recovery. 29. Application of certain provisions of Income-tax Act. 30. Appeal against the order of Recovery Officer. 30A. Deposit of amount of debt due for filing appeal against orders of the Recovery Officer. CHAPTER VI MISCELLANEOUS 31. Transfer of pending cases. 31A. Power of Tribunal to issue certificate of recovery in case of decree or order. 31B. Priority to secured creditors. 32. Chairperson, Presiding Officer and staff of Appellate Tribunal and Tribunal to be public servants. 33. Protection of action taken in good faith. 34. Act to have overriding effect. 35. Power to remove difficulties. 36. Power to make rules. 37. Repeal and saving. ----- # THE RECOVERY OF DEBTS AND BANKRUPTCY ACT, 1993 ACT NO. 51 OF 1993 [27th August, 1993.] # An Act to provide for the establishment of Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions [1][,insolvency resolution and bankruptcy of individuals and partnership firms] and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, commencement and application.—(1) This Act may be called the Recovery** of Debts [2][and Bankruptcy] Act, 1993. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall be deemed to have come into force on the 24th day of June, 1993. (4) [3][Save as otherwise provided, the provisions of this Code] Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Appellate Tribunal” means an Appellate Tribunal established under sub-section (1) of section 8; (b) “application” means an application made to a Tribunal under section 19; (c) “appointed day”, in relation to a Tribunal or an Appellate Tribunal, means the date on which such Tribunal is established under sub-section (1) of section 3 or, as the case may be, sub-section (1) of section 8; (d) “bank” means— (i) banking company; (ii) a corresponding new bank; (iii) State Bank of India; (iv) a subsidiary bank; or (v) a Regional Rural Bank; 4[(vi) a multi-State co-operative bank;] (e) “banking company” shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); 5[(ea) “Chairperson” means a Chairperson of an Appellate Tribunal appointed under section 9;] (f) “corresponding new bank” shall have the meaning assigned to it in clause (da) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); 6[(g) “debt” means any liability (inclusive of interest) which is claimed as due from any person 7[or a pooled investment vehicle as defined in clause (da) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956)] by a bank or a financial institution or by a consortium of banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or assigned, or whether payable under a decree or order of any civil court or any arbitration award or otherwise or under a mortgage and subsisting on, and legally 1. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019 ). 2. Subs. by s. 249 and the Fifth Schedule, ibid for “Due to Banks and Financial Institutions” (w.e.f. 1-12-2019). 3. Subs, by s. 249 and the Fifth Schedule, ibid for “The provision of this Code” (w.e.f. 1-12-2019). 4. Ins. by Act 1 of 2013, s. 12 (w.e.f. 15-1-2013). 5. Ins. by Act 1 of 2000, s. 3 (w.e.f. 17-1-2000). 6. Subs. by s. 3, ibid., for clause (g) (w.e.f 17-1-2000). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 7 I b A 13 f 2021 160 ( f 1 4 2021) ----- recoverable on, the date of the application [1][and includes any liability towards debt securities which remains unpaid in full or part after notice of ninety days served upon the borrower by the debenture trustee or any other authority in whose favour security interest is created for the benefit of holders of debt securities or;]] 1[(ga) “debt securities” means debt securities listed in accordance with regulations made by the Securities Exchange Board of India under the Securities and Exchange Board of India Act, 1992 (15 of 1992);] (h) “financial institution” means— (i) a public financial institution within the meaning of section 4A of the Companies Act, 1956 (1 of 1956); 2[(ia) the securitisation company or reconstruction company which has obtained a certificate of registration under sub-section (4) of section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);] 1[(ib) a debenture trustee registered with the Board and appointed for secured debt securities;] (ii) such other institution as the Central Government may, having regard to its business activity and the area of its operation in India, by notification, specify; 1[(ha) “financial lease” means a lease under a lease agreement of tangible asset, other than negotiable instrument or negotiable document, for transfer of lessor's right therein to the lessee for a certain time in consideration of payment of agreed amount periodically and where lessee becomes the owner of the such assets at the expiry of the term of lease or on payment of the agreed residual amount, as the case may be;] (i) “notification” means a notification published in the Official Gazette; (j) “prescribed” means prescribed by rules made under this Act; 3[(ja) “Presiding Officer” means the Presiding Officer of the Debts Recovery Tribunal appointed under sub-section (1) of section 4;] 1[(jb) “property” means— (a) immovable property; (b) movable property; (c) any debt or any right to receive payment of money, whether secured or unsecured; (d) receivables, whether existing or future; (e) intangible assets, being know-how, patent, copyright, trade mark, licence, franchise or any other business or commercial right of similar nature, as may be prescribed by the Central Government in consultation with Reserve Bank;] (k) “Recovery Officer” means a Recovery Officer appointed by the Central Government for each Tribunal under sub-section (1) of section 7; (l) “Regional Rural Bank” means a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976); 1[(la) “secured creditor” shall have the meaning as assigned to it in clause (zd) of sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); 1. Ins. by Act 44 of 2016, s. 26 (w.e.f. 1-9-2016). 2. Ins. by Act 30 of 2004, s. 19 (w.e.f. 11-11-2004). 3 I b A 1 f 2000 3 ( f 17 1 2000) ----- (lb) “security interest” means mortgage, charge, hypothecation, assignment or any other right, title or interest of any kind whatsoever upon property, created in favour of any bank or financial institution and includes— (a) such right, title or interest upon tangible asset, retained by the bank or financial institution as owner of the property, given on hire or financial lease or conditional sale which secures the obligation to pay any unpaid portion of the purchase price of the asset or an obligation incurred or any credit provided to enable the borrower to acquire the tangible asset; or (b) such right, title or interest in any intangible asset or licence of any intangible asset, which secures the obligation to pay any unpaid portion of the purchase price of the intangible asset or the obligation incurred or any credit extended to enable the borrower to acquire the intangible asset or licence of intangible asset;] (m) “State Bank of India” means the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 (23 of 1955); (n) “subsidiary bank” shall have the meaning assigned to it in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (o) “Tribunal” means the Tribunal established under sub-section (1) of section 3. CHAPTER II ESTABLISHMENT OF TRIBUNAL AND APPELLATE TRIBUNAL **3. Establishment of Tribunal.—(1) The Central Government shall, by notification, establish one or** more Tribunals, to be known as the Debts Recovery Tribunal, to exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act. 1[(1A) The Central Government shall by notification establish such number of Debts Recovery Tribunals and its benches as it may consider necessary, to exercise the jurisdiction, powers and authority of the Adjudicating Authority conferred on such Tribunal by or under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).] (2) The Central Government shall also specify, in the notification referred to in sub-section (1), the areas within which the Tribunal may exercise jurisdiction for entertaining and deciding the applications filed before it. **4. Composition of Tribunal.—(1) A Tribunal shall consist of one person only (hereinafter referred** to as the Presiding Officer) to be appointed, by notification, by the Central Government. 2[(2) Notwithstanding anything contained in sub-section (1), the Central Government may— (a) authorise the Presiding Officer of any other Tribunal established under any other law for the time being in force to discharge the function of the Presiding Officer of a Debt Recovery Tribunal under this Act in addition to his being the Presiding Officer of that Tribunal; or (b) authorise the judicial Member holding post as such in any other Tribunal, established under any other law for the time being in force, to discharge the functions of the Presiding Officer of Debts Recovery Tribunal under this Act, in addition to his being the judicial Member of that Tribunal.] **5. Qualifications for appointment as Presiding Officer.—A person shall not be qualified for** appointment as the Presiding Officer of a Tribunal unless he is, or has been, or is qualified to be, a District Judge. 3[6. Term of office of Presiding Officer.— The Presiding Officer of a Tribunal shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment: Provided that no person shall hold office as the Presiding Officer of a Tribunal after he has attained the age of sixty-five years.] 1. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019). 2. Subs. by Act 44 of 2016, s. 27, for sub-section (2) (w.e.f. 1-9-2016). 3 S b b 28 ibid f i 6 ( f 1 9 2016) ----- 1[6A. Qualifications, terms and conditions of service of Presiding Officer.—Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Presiding Officer of the Tribunal appointed after the commencement of [2][the Tribunal Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]: Provided that the Presiding Officer appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.] **7. Staff of Tribunal.—(1) The Central Government shall provide the Tribunal** [3][with one or more Recovery Officers] and such other officers and employees as that Government may think fit. (2) [4][The Recovery Officers] and other officers and employees of a Tribunal shall discharge their functions under the general superintendence of the Presiding Officer. (3) The salaries and allowances and other conditions of service of the [5][Recovery Officers] and other officers and employees of a Tribunal shall be such as may be prescribed. **8. Establishment of Appellate Tribunal.—(1) The Central Government shall, by notification,** establish one or more Appellate Tribunals, to be known as the Debts Recovery Appellate Tribunal, to exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act: 6[Provided that the Central Government may authorise the Chairperson of any other Appellate Tribunal, established under any other law for the time being in force, to discharge the functions of the Chairperson of the Debts Recovery Appellate Tribunal under this Act in addition to his being the Chairperson of that Appellate Tribunal.] 7[(1A) The Central Government shall, by notification, establish such number of Debt Recovery Appellate Tribunals to exercise jurisdiction, powers and authority to entertain appeal against the order made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).] (2) The Central Government shall also specify in the notification, referred to in sub-section (1) the Tribunals in relation to which the Appellate Tribunal may exercise jurisdiction. 8[(3) Notwithstanding anything contained in sub-sections (1) and (2), the Central Government may authorise the Chairperson of one Appellate Tribunal to discharge also the functions of the Chairperson of other Appellate Tribunal.] **9. Composition of Appellate Tribunal.—An Appellate Tribunal shall consist of one person only** (hereinafter referred to as [9][the Chairperson of the Appellate Tribunal]) to be appointed, by notification, by the Central Government. **10. Qualifications for appointment as** **[9][the Chairperson of the Appellate Tribunal].—A person** shall not be qualified for appointment as [10][the Chairperson of an Appellate Tribunal] unless he— (a) is, or has been, or is qualified to be, a Judge of a High Court; or (b) has been a member of the Indian Legal Service and has held a post in Grade I of that service for at least three years; or (c) has held office as the Presiding Officer of a Tribunal for at least three years. 11[11. Term of office of Chairperson of Appellate Tribunal.—The Chairperson of an Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment: 1. Ins. by Act 7 of 2017, s. 179 (w.e.f. 26-5-2017). 2. Subs. by Act 33 of 2021, s. 18, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of section 184 of that Act” (w.e.f. 4-4-2021). 3. Subs. by Act 1 of 2000, s. 4, for “with a Recovery Officer” (w.e.f. 17-1-2000). 4. Subs. by s. 4, ibid., for “The Recovery Officer” (w.e.f. 17-1-2000). 5. Subs. by s. 4, ibid., for “Recovery Officer” (w.e.f. 17-1-2000). 6. Ins. by Act 44 of 2016, s. 29 (w.e.f. 1-9-2016). 7. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019). 8. Ins. by Act 1 of 2000, s. 5 (w.e.f. 17-1-2000). 9. Subs. by s. 2, ibid., for “the Presiding Officer of the Appellate Tribunal” (w.e.f. 17-1-2000). 10. Subs. by s. 2, ibid., for “the Presiding Officer of an Appellate Tribunal” (w.e.f. 17-1-2000). 11 S b b A 44 f 2016 30 f i 11 ( f 1 9 2016) ----- Provided that no person shall hold office as the Chairperson of a Appellate Tribunal after he has attained the age of seventy years.] **12. Staff of the Appellate Tribunal.—The provisions of section 7 (except those relating to Recovery** Officer) shall, so far as may be, apply to an Appellate Tribunal as they apply to a Tribunal and accordingly references in that section to “Tribunal” shall be construed as references to “Appellate Tribunal” and references to “Recovery Officer” shall be deemed to have been omitted. **13. Salary and allowances and other terms and conditions of service of Presiding Officers.—The** salary and allowances payable to, and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of, [1][the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of [2][the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal shall be varied to his] disadvantage after appointment. **14. Filling up of vacancies.—If, for any reason other than temporary absence, any vacancy occurs in** the office of [3][the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal], then the Central Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Tribunal or the Appellate Tribunal from the stage at which the vacancy is filled. **15. Resignation and removal.—(1)** [1][The Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] may, by notice in writing under his hand addressed to the Central Government, resign his office: Provided that [4][the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. (2) [1][The Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after inquiry,— (a) in the case of the Presiding Officer of a Tribunal, made by a Judge of a High Court; (b) in the case of [5][the Chairperson of an Appellate Tribunal], made by a Judge of the Supreme Court, in which [6][the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] has been informed of the charges against him and given a reasonable opportunity of being heard in respect of these charges: 7[Provided that the Central Government, during the pendency of the inquiry against the Presiding Officer or a Chairperson, as the case may be, may, after consulting the Chairperson of the Selection Committee constituted for selection of Presiding Officer or Chairperson, pass an order suspending the Presiding Officer or the Chairperson, if it is satisfied that he should cease to discharge his functions as a Presiding Officer or Chairperson, as the case may be.] (3) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of [8][the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal]. 1. Subs. by Act 1 of 2000, s. 2, for “the Presiding Officer of a Tribunal or an Appellate Tribunal” (w.e.f. 17-1-2000). 2. Subs. by s. 6, ibid., for “the said Presiding Officers shall be varied to their” (w.e.f. 17-1-2000). 3. Subs. by s. 2, ibid., for “the Presiding Officer of a Tribunal or an Appellate Tribunal” (w.e.f. 17-1-2000). 4 Subs. by s. 7, ibid., for “the said Presiding Officer” (w.e.f. 17-1-2000). 5. Subs. by s. 2, ibid., for “the Presiding Officer of an Appellate Tribunal” (w.e.f. 17-1-2000). 6. Subs. by s. 7, ibid., for “the Presiding Officer concerned” (w.e.f. 17-1-2000). 7. Ins. by Act 1 of 2013, s. 13 (w.e.f. 15-1-2013). 8 S b b A 1 f 2000 7 f “ h f id P idi Offi ” ( f 17 1 2000) ----- 1[15A. **Qualifications, terms and conditions of service of Chairperson.—Notwithstanding anything contained** in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the terms and conditions of service of the Chairperson of the Appellate Tribunal appointed after the commencement of 2[the Tribunal Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]: Provided that the Chairperson appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.] **16. Orders constituting Tribunal or an Appellate Tribunal to be final and not to invalidate its** **proceedings.—No order of the Central Government appointing any person as** [3][the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall be called in question in any manner, and no act or proceeding before a Tribunal or an Appellate Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of a Tribunal or an Appellate Tribunal. CHAPTER III JURISDICTION, POWERS AND AUTHORITY OF TRIBUNALS **17. Jurisdiction, powers and authority of Tribunals.—(1) A Tribunal shall exercise, on and from the** appointed day, the jurisdiction, powers and authority to entertain and decide applications from the banks and financial institutions for recovery of debts due to such banks and financial institutions. 4[(1A) Without prejudice to sub-section (1),— (a) the Tribunal shall exercise, on and from the date to be appointed by the Central Government, the jurisdiction, powers and authority to entertain and decide applications under Part III of Insolvency and Bankruptcy Code, 2016 (31 of 2016). (b) the Tribunal shall have circuit sittings in all district headquarters.] (2) An Appellate Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain appeals against any order made, or deemed to have been made, by a Tribunal under this Act. [4][(2A) Without prejudice to sub-section (2), the Appellate Tribunal shall exercise, on and from the date to be appointed by the Central Government, the jurisdiction, powers and authority to entertain appeals against the order made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).] 5[17A. Power of Chairperson of Appellate Tribunal.—(1) The Chairperson of an Appellate Tribunal shall exercise general power of superintendence and control over the Tribunals under his jurisdiction including the power of appraising the work and recording the annual confidential reports of Presiding Officers. 6[(1A) For the purpose of exercise of general powers of superintendence and control over Tribunals under sub-section (1), the Chairperson may— (i) direct the Tribunals to furnish, in such form, at such intervals and within such time, information relating to pending cases both under this Act and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), or under any other law for the time being in force, number of cases disposed of, number of new cases filed and such other information as may be considered necessary by the Chairperson; (ii) convene meetings of the Presiding Officers of Tribunals periodically to review their performance. (1B) Where on assessment of the performance of any Presiding Officer of the Tribunal or otherwise, the Chairperson is of the opinion that an inquiry is required to be initiated against such Presiding Officer for misbehaviour or incapacity, he shall submit a report to the Central Government recommending action against such Presiding Officer, if any, under section 15, and for reasons to be recorded in writing for the same.] 1. Ins. by Act 7 of 2017, s. 179 (w.e.f. 26-5-2017). 2. Subs. by Act 33 of 2021, s. 18, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of section 184 of that Act” (w.e.f. 4-4-2021). 3. Subs. by Act 1 of 2000, s. 2, for “the Presiding Officer of a Tribunal or an Appellate Tribunal” (w.e.f. 17-1-2000). 4. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019). 5. Ins. by Act 1 of 2000, s. 8 (w.e.f. 17-1-2000). 6 b A 44 f 2016 31 ( f 1 9 2016) ----- (2) The Chairperson of an Appellate Tribunal having jurisdiction over the Tribunals may, on the application of any of the parties or on his own motion after notice to the parties and after hearing them, transfer any case from one Tribunal for disposal to any other Tribunal.] **18. Bar of jurisdiction.—On and from the appointed day, no court or other authority shall have, or** be entitled to exercise, any jurisdiction, powers or authority (except the Supreme Court, and a High Court exercising jurisdiction under articles 226 and 227 of the Constitution) in relation to the matters specified in section 17: 1[Provided that any proceedings in relation to the recovery of debts due to any multi-State co-operative bank pending before the date of commencement of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2012 (1 of 2013) under the Multi-State Co-operative Societies Act, 2002 (39 of 2002) shall be continued and nothing contained in this section shall, after such commencement, apply to such proceedings.] CHAPTER IV PROCEDURE OF TRIBUNALS **2[19. Application to the Tribunal.—(1) Where a bank or a financial institution has to recover any** debt from any person, it may make an application to the Tribunal within the local limits of whose jurisdiction— 3[(a) the branch or any other office of the bank or financial institution is maintaining an account in which debt claimed is outstanding, for the time being; or] 4[(aa)] the defendant, or each of the defendants where there are more than one, at the time of making the application, actually and voluntarily resides, or carries on business, or personally works for gain; or (b) any of the defendants, where there are more than one, at the time of making the application, actually and voluntarily resides, or carries on business, or personally works for gain; or (c) the cause of action, wholly or in part, arises: 5[Provided that the bank or financial institution may, with the permission of the Debts Recovery Tribunal, on an application made by it, withdraw the application, whether made before or after the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2004 (30 of 2004) for the purpose of taking action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), if no such action had been taken earlier under that Act: Provided further that any application made under the first proviso for seeking permission from the Debts Recovery Tribunal to withdraw the application made under sub-section (1) shall be dealt with by it as expeditiously as possible and disposed of within thirty days from the date of such application: Provided also that in case the Debts Recovery Tribunal refuses to grant permission for withdrawal of the application filed under this sub-section, it shall pass such orders after recording the reasons therefor.] 6[(1A) Every bank being, multi-State co-operative bank referred to in sub-clause (vi) of clause (d) of section 2, may, at its option, opt to initiate proceedings under the Multi-State Co-operative Societies Act, 2002 (39 of 2002) to recover debts, whether due before or after the date of commencement of the Enforcement of the Security Interest and Recovery of Debts Laws (Amendment) Act, 2012 (1 of 2013) from any person instead of making an application under this Chapter. (1B) In case, a bank being, multi-State co-operative bank referred to in sub-clause (vi) of clause (d) of section 2 has filed an application under this Chapter and subsequently opts to withdraw the application for the purpose of initiating proceeding under the Multi-State Co-operative Societies Act, 2002 (39 of 2002) to recover debts, it may do so with the permission of the Tribunal and every such application seeking permission from the Tribunal to withdraw the application made under sub-section (1A) shall be dealt with by it as expeditiously as possible and disposed of within thirty days from the date of such application: Provided that in case the Tribunal refuses to grant permission for withdrawal of the application filed under this sub-section, it shall pass such orders after recording the reasons therefor.] 1. Ins. by Act 1 of 2013, s. 14 (w.e.f. 15-1-2013). 2. Subs. by Act 1 of 2000, s. 9, for section 19 (w.e.f. 17-1-2000). 3. Ins. by Act 44 of 2016, s. 32 (w.e.f. 1-9-2016). 4. Clause (a) renumbered as clause (aa) thereof by s. 32, ibid. (w.e.f. 1-9-2016). 5. Ins. by Act 30 of 2004, s. 20 (w.e.f. 11-11-2004). 6 I b A 1 f 2013 15 ( f 15 1 2013) ----- (2) Where a bank or a financial institution, which has to recover its debt from any person, has filed an application to the Tribunal under sub-section (1) and against the same person another bank or financial institution also has claim to recover its debt, then, the later bank or financial institution may join the applicant bank or financial institution at any stage of the proceedings, before the final order is passed, by making an application to that Tribunal. 1[(3) Every application under sub-section (1) or sub-section (2) shall be in such form, and shall be accompanied with true copies of all documents relied on in support of the claim along with such fee, as may be prescribed:] Provided that the fee may be prescribed having regard to the amount of debt to be recovered: Provided further that nothing contained in this sub-section relating to fee shall apply to cases transferred to the Tribunal under sub-section (1) of section 31. 2[Explanation.—For the purposes of this section, documents includes statement of account or any entry in banker’s book duly certified under the Bankers’ Books Evidence Act, 1891 (18 of 1891).] 2[(3A) Every applicant in the application filed under sub-section (1) or sub-section (2) for recovery of debt, shall— (a) state particulars of the debt secured by security interest over properties or assets belonging to any of the defendants and the estimated value of such securities; (b) if the estimated value of securities is not sufficient to satisfy the debt claimed, state particulars of any other properties or assets owned by any of the defendants, if any; and (c) if the estimated value of such other assets is not sufficient to recover the debt, seek an order directing the defendant to disclose to the Tribunal particulars of other properties or assets owned by the defendants.] 3[ 4[(3B)] If any application filed before the Tribunal for recovery of any debt is settled prior to the commencement of the hearing before that Tribunal or at any stage of the proceedings before the final order is passed, the applicant may be granted refund to the fees paid by him at such rates as may be prescribed.] 5[(4) On receipt of application under sub-section (1) or sub-section (2), the Tribunal shall issue summons with following directions to the defendant— (i) to show cause within thirty days of the service of summons as to why relief prayed for should not be granted; (ii) direct the defendant to disclose particulars of properties or assets other than properties and assets specified by the applicant under clauses (a) and (b) of sub-section (3A); and (iii) to restrain the defendant from dealing with or disposing of such assets and properties disclosed under clause (c) of sub-section (3A) pending the hearing and disposal of the application for attachment of properties.] 6[(4A) Notwithstanding anything contained in section 65A of the Transfer of Property Act, 1882 (4 of 1882), the defendant, on service of summons, shall not transfer by way of sale, lease or otherwise except in the ordinary course of his business any of the assets over which security interest is created and other properties and assets specified or disclosed under sub-section (3A), without the prior approval of the Tribunal: Provided that the Tribunal shall not grant such approval without giving notice to the applicant bank or financial institution to show cause as to why approval prayed for should not be granted: Provided further that defendant shall be liable to account for the sale proceeds realised by sale of secured assets in the ordinary course of business and deposit such sale proceeds in the account maintained with the bank or financial institution holding security interest over such assets.] 7[(5) (i) the defendant shall within a period of thirty days from the date of service of summons, present a written statement of his defence including claim for set-off under sub-section (6) or a 1. Subs. by Act 44 of 2016, s. 32, for sub-section (3) (w.e.f. 1-9-2016). 2. Ins. by s. 32, ibid. (w.e.f. 1-9-2016). 3. Ins. by Act 1 of 2013, s. 15 (w.e.f. 15-5-2013). 4. Sub-section (3A) renumbered as sub-section (3B) thereof by Act 44 of 2016, s. 32 (w.e.f. 1-9-2016). 5. Subs. by Act 44 of 2016, s. 32, for sub-section (4) (w.e.f. 1-9-2016). 6. Ins. by s. 32, ibid. (w.e.f. 1-9-2016). 7 S b b 32 ibid f b i (5) ( f 1 9 2016) ----- counter-claim under sub-section (8), if any, and such written statement shall be accompanied with original documents or true copies thereof with the leave of the Tribunal, relied on by the defendant in his defence: Provided that where the defendant fails to file the written statement within the said period of thirty days, the Presiding Officer may, in exceptional cases and in special circumstances to be recorded in writing, extend the said period by such further period not exceeding fifteen days to file the written statement of his defence; (ii) where the defendant makes a disclosure of any property or asset pursuant to orders passed by the Tribunal, the provisions of sub-section (4A) of this section shall apply to such property or asset; (iii) in case of non-compliance of any order made under clause (ii) of sub-section (4), the Presiding Officer may, by an order, direct that the person or officer who is in default, be detained in civil prison for a term not exceeding three months unless in the meantime the Presiding Officer directs his release: Provided that the Presiding Officer shall not pass an order under this clause without giving an opportunity of being heard to such person or officer. _Explanation.—For the purpose of this section, the expression ‘officer who is in default’ shall mean_ such officer as defined in clause (60) of section 2 of the Companies Act, 2013 (18 of 2013).] 1[(5A) On receipt of the written statement of defendant or on expiry of time granted by the Tribunal to file the written statement, the Tribunal shall fix a date of hearing for admission or denial of documents produced by the parties to the proceedings and also for continuation or vacation of the interim order passed under sub-section (4). (5B) Where a defendant makes an admission of the full or part of the amount of debt due to a bank or financial institution, the Tribunal shall order such defendant to pay the amount, to the extent of the admission within a period of thirty days from the date of such order failing which the Tribunal may issue a certificate in accordance with the provisions of sub-section (22) to the extent of the amount of debt due admitted by the defendant.] (6) Where the defendant claims to set-off against the applicant’s demand any ascertained sum of money legally recoverable by him from such applicant, the defendant may, at the first hearing of the application, but not afterwards unless permitted by the Tribunal, present a written statement containing the particulars of the debt [2][the debt sought to be set-off along with original documents and other evidence relied on in support of claim of set-off in relation to any ascertained sum of money, against the applicant]. (7) The written statement shall have the same effect as a plaint in a cross-suit so as to enable the Tribunal to pass a final order in respect both of the original claim and of the set-off. (8) A defendant in an application may, in addition to his right of pleading a set-off under sub-section (6), set up, by way of counter-claim against the claim of the applicant, any right or claim in respect of a cause of action accruing to the defendant against the applicant either before or after the filing of the application but before the defendant has delivered his defence or before the time limited for delivering his defence has expired, whether such counter-claim is in the nature of a claim for damages or not. (9) A counter-claim under sub-section (8) shall have the same effect as a cross-suit so as to enable the Tribunal to pass a final order on the same application, both on the original claim and on the counter-claim. (10) The applicant shall be at liberty to file a written statement in answer to the counter-claim of the defendant within such period [3][as may be prescribed]. 4[(10A) Every application under sub-section (3) or written statement of defendant under sub-section (5) or claim of set-off under sub-section (6) or a counter-claim under sub-section (8) by the defendant, or written statement by the applicant in reply to the counter-claim, under sub-section (10) or any other pleading whatsoever, shall be supported by an affidavit sworn in by the applicant or defendant 1. Subs. by Act 44 of 2016, s. 32, for sub-section (5A) (w.e.f. 1-9-2016). 2. Subs. by s. 32, ibid., for “the dept sought to be set-off” (w.e.f. 1-9-2016). 3. Subs. by s. 32, ibid., for “as may be fixed by the Tribunal” (w.e.f. 1-9-2016). 4 I b 32 ibid ( f 1 9 2016) ----- verifying all the facts and pleadings, the statements pleading documents and other documentary evidence annexed to the application or written statement or reply to set-off or counter-claim, as the case may be: Provided that if there is any evidence of witnesses to be led by any party, the affidavits of such witnesses shall be filed simultaneously by the party with the application or written statement or replies filed under sub-section (10A). (10B) If any of the facts or pleadings in the application or written statement are not verified in the manner provided under sub-section (10A), a party to the proceedings shall not be allowed to rely on such facts or pleadings as evidence or any of the matters set out therein.] 1[(11) Where a defendant sets up a counter-claim in the written statement and in reply to such claim the applicant contends that the claim thereby raised ought not to be disposed of by way of counter-claim but in an independent action, the Tribunal shall decide such issue along with the claim of the applicant for recovery of the debt.] 2* - - - (13)(A) Where, at any stage of the proceedings, [3][the Tribunal on an application made by the applicant along with particulars of property to be attached and estimated value thereof, or otherwise is satisfied], that the defendant, with intent to obstruct or delay or frustrate the execution of any order for the recovery of debt that may be passed against him,— (i) is about to dispose of the whole or any part of his property; or (ii) is about to remove the whole or any part of his property from the local limits of the jurisdiction of the Tribunal; or (iii) is likely to cause any damage or mischief to the property or affect its value by misuse or creating third party interest, the Tribunal may direct the defendant, within a time to be fixed by it, either to furnish security, in such sum as may be specified in the order, to produce and place at the disposal of the Tribunal, when required, the said property or the value of the same, or such portion thereof as may be sufficient to satisfy the certificate for the recovery of the debt, or to appear and show cause why he should not furnish security. (B) Where the defendant fails to show cause why he should not furnish security, or fails to furnish the security required, within the time fixed by the Tribunal, the Tribunal may order the attachment of the whole or such portion of the properties claimed by the applicant as the properties secured in his favour or otherwise owned by the defendant as appears sufficient to satisfy any certificate for the recovery of debt. 4* - - - (15) The Tribunal may also in the order direct the conditional attachment of the whole or any portion of the property specified under [5][sub-section (13)]. (16) If an order of attachment is made without complying with the provisions of sub-section (13), such attachment shall be void. (17) In the case of disobedience of an order made by the Tribunal under sub-sections (12), (13) and (18) or breach of any of the terms on which the order was made, the Tribunal may order the properties of the person guilty of such disobedience or breach to be attached and may also order such person to be detained in the civil prison for a term not exceeding three months, unless in the meantime the Tribunal directs his release. (18) Where it appears to the Tribunal to be just and convenient, the Tribunal may, by order— (a) appoint a receiver of any property, whether before or after grant of certificate for recovery of debt; (b) remove any person from the possession or custody of the property; 1. Subs. by Act 44 of 2016, s. 32, for sub-section (11) (w.e.f. 1-9-2016). 2. Omitted by s. 32, ibid. (w.e.f. 1-9-2016). 3. Subs. by s. 32, ibid., for “the Tribunal is satisfied, by affidavit or otherwise” (w.e.f. 1-9-2016). 4. Omitted by s. 32, ibid. (w.e.f. 1-9-2016). 5 S b b 32 ibid f “ b i (14)” ( f 1 9 2016) ----- (c) commit the same to the possession, custody or management of the receiver; (d) confer upon the receiver all such powers, as to bringing and defending suits in the courts or filing and defending applications before the Tribunal and for the realisation, management, protection, preservation and improvement of the property, the collection of the rents and profits thereof, the application and disposal of such rents and profits, and the execution of documents as the owner himself has, or such of those powers as the Tribunal thinks fit; and (e) appoint a Commissioner for preparation of an inventory of the properties of the defendant or for the sale thereof. 1[(19) Where a certificate of recovery is issued against a company as defined under the Companies Act, 2013 (18 of 2013) and such company is under liquidation, the Tribunal may by an order direct that the sale proceeds of secured assets of such company be distributed in the same manner as provided in section 326 of the Companies Act, 2013 or under any other law for the time being in force.] 2[(20) The Tribunal may, after giving the applicant and the defendant, an opportunity of being heard, in respect of all claims, set-off or counter-claim, if any, and interest on such claims, within thirty days from the date of conclusion of the hearings, pass interim or final order as it deems fit which may include order for payment of interest from the date on which payment of the amount is found due up to the date of realisation or actual payment.] 3[(20A) Where it is proved to the satisfaction of the Tribunal that the claim of the applicant has been adjusted wholly or in part by any lawful agreement or compromise in writing and signed by the parties or where the defendant has repaid or agreed to repay the claim of the applicant, the Tribunal shall pass orders recording such agreement, compromise or satisfaction of the claim.] 4[(20AA) While passing the final order under sub-section (20), the Tribunal shall clearly specify the assets of the borrower which security interest is created in favour of any bank or financial institution and direct the Recovery Officers to distribute the sale proceeds of such assets as provided in sub-section (20AB). (20AB) Notwithstanding anything to the contrary contained in any law for the time being in force, the proceeds from sale of secured assets shall be distributed in the following orders of priority, namely:— (i) the costs incurred for preservation and protection of secured assets, the costs of valuation, public notice for possession and auction and other expenses for sale of assets shall be paid in full; (ii) debts owed to the bank or financial institution. _Explanation.—For the purposes of this sub-section, it is hereby clarified that on or after the_ commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in cases where insolvency and bankruptcy proceedings are pending in respect of secured assets of the borrower, the distribution of proceeds from the sale of secured assets shall be subject to the order of priority as provided in that Code.] 5[(21) (i) The Tribunal shall send a copy of its final order and the recovery certificate, to the applicant and defendant. (ii) The applicant and the defendant may obtain copy of any order passed by the Tribunal on payment on such fee as may be prescribed.] 6[(22) The Presiding Officer shall issue a certificate of recovery along with the final order, under sub-section (20), for payment of debt with interest under his signature to the Recovery Officer for recovery of the amount of debt specified in the certificate.] 7[(22A) Any recovery certificate issued by the Presiding Officer under sub-section (22) shall be deemed to be decree or order of the Court for the purposes of initiation of winding up proceedings against a company registered under the Companies Act, 2013 (18 of 2013) or Limited Liability Partnership registered under the Limited Liability Partnership Act, 2008 (6 of 2009) or insolvency proceedings against any individual or partnership firm under any law for the time being in force, as the case may be.] 1. Subs. by Act 44 of 2016, s. 32, for sub-section (19) (w.e.f. 1-9-2016). 2. Subs. by s. 32, ibid., for sub-section (20) (w.e.f. 1-9-2016). 3. Ins. by Act 1 of 2013, s. 15 (w.e.f. 15-1-2013). 4. Ins. by Act 44 of 2016, s. 32 (w.e.f. 1-9-2016). 5. Subs. by s. 32, ibid., for sub-section (21) (w.e.f. 1-9-2016). 6. Subs. by s. 32, ibid., for sub-section (22) (w.e.f. 1-9-2016). 7 I b 32 ibid ( f 1 9 2016) ----- (23) Where the Tribunal, which has issued a certificate of recovery, is satisfied that the property is situated within the local limits of the jurisdiction of two or more Tribunals, it may send the copies of the certificate of recovery for execution to such other Tribunals where the property is situated: Provided that in a case where the Tribunal to which the certificate of recovery is sent for execution finds that it has no jurisdiction to comply with the certificate of recovery, it shall return the same to the Tribunal which has issued it. (24) The application made to the Tribunal under sub-section (1) or sub-section (2) shall be dealt with by it as expeditiously as possible and [1][every effort shall be made by it to complete the proceedings in two hearings, and] to dispose of the application finally within one hundred and eighty days from the date of receipt of the application. (25) The Tribunal may made such orders and give such directions as may be necessary or expedient to give effect to its orders or to prevent abuse of its process or to secure the ends of justice.] 2[19A. Filing of recovery applications, documents and written statements in electronic **form.—(1) Notwithstanding anything to the contrary contained in this Act, and without prejudice to the** provisions contained in section 6 of the Information Technology Act, 2000 (21 of 2000), the Central Government may by rules provide that from such date and before such Tribunal and Appellate Tribunal, as may be notified,— (a) application or written statement or any other pleadings and the documents to be annexed thereto required to be filed shall be submitted in the electronic form and authenticated with digital signature of the applicant, defendant or any other petitioner in such form and manner as may be prescribed; (b) any summons, notice or communication or intimation as may be required to be served or delivered under this Act, may be served or delivered by transmission of pleadings and documents by electronic form and authenticated in such manner as may be prescribed. (2) Any interim or final order passed by the Tribunal or Appellate Tribunal displayed on the website of such Tribunal or Appellate Tribunal shall be deemed to be a public notice of such order and transmission of such order by electronic mail to the registered address of the parties to the proceeding shall be deemed to be served on such party. (3) The Central Government may by rules provide that the electronic form for the purpose specified in this section shall be exclusive, or in the alternative or in addition to the physical form, therefor. (4) The Tribunal or the Appellate Tribunal notified under sub-section (1), for the purpose of adopting electronic filing, shall maintain its own website or common website with other Tribunals and Appellate Tribunal or such other universally accessible repositories of electronic information and ensure that all orders or directions issued by the Tribunal or Appellate Tribunal are displayed on the website of the Tribunal or Appellate Tribunal, in such manner as may be prescribed. _Explanation.—For the purpose of this section,—_ (a) ‘digital signature’ means the digital signature as defined under clause (p) of section 2 of the Information Technology Act, 2000 (21 of 2000); (b) ‘electronic form’ with reference to an information or a document means the electronic form as defined under clause (r) of section 2 of the Information Technology Act, 2000 (21 of 2000).] ***[19A. —The application made to Tribunal for exercising the powers of the Adjudicating Authority** under the Insolvency and Bankruptcy Code, 2016 shall be dealt with in the manner as provided under that Code.] 1. Subs. by Act 44 of 2016, s. 32, for “endeavour shall be made by it” (w.e.f. 1-9-2016). 2. Ins. by s. 33, ibid. (w.e.f. 1-9-2016). ***. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019 in so far as it relates to personal guarantors to corporate** d b ) ----- **20. Appeal to the Appellate Tribunal.—(1) Save as provided in sub-section (2), any person** aggrieved by an order made, or deemed to have been made, by a Tribunal under this Act, may prefer an appeal to an Appellate Tribunal having jurisdiction in the matter. (2) No appeal shall lie to the Appellate Tribunal from an order made by a Tribunal with the consent of the parties. (3) Every appeal under sub-section (1) shall be filed within a period of [1][thirty days] from the date on which a copy of the order made, or deemed to have been made, by the Tribunal is received by him and it shall be in such form and be accompanied by such fee as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of 1[thirty days] if it is satisfied that there was sufficient cause for not filing it within that period. (4) On receipt of an appeal under sub-section (1), [2][or under sub-section (1) of section 181 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)] the Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (5) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned Tribunal. (6) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal. **21. Deposit of amount of debt due, on filing appeal.—Where an appeal is preferred by any person** from whom the amount of debt is due to a bank or a financial institution or a consortium of banks or financial institutions, such appeal shall not be entertained by the Appellate Tribunal unless such person has deposited with the Appellate Tribunal [3][fifty per cent.] of the amount of debt so due from him as determined by the Tribunal under section 19: Provided that the Appellate Tribunal may, for reasons to be recorded in writing, [4][reduce the amount to be deposited by such amount which shall not be less than twenty-five per cent. of the amount of such debt so due] to be deposited under this section. **22. Procedure and powers of the Tribunal and the Appellate Tribunal.—(1) The Tribunal and the** Appellate Tribunal shall not be bound the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules, the Tribunal and the Appellate Tribunal shall have powers to regulate their own procedure including the places at which they shall have their sittings. (2) The Tribunal and the Appellate Tribunal shall have, for the purposes of discharging their functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) reviewing its decisions; (f) dismissing an application for default or deciding it ex parte; (g) setting aside any order of dismissal of any application for default or any order passed by it _ex parte;_ (h) any other matter which may be prescribed. 1. Subs. by Act 44 of 2016, s. 34, for “forty-five days” (w.e.f. 1-9-2016). 2. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019). 3. Subs. by Act 44 of 2016, s. 35, for “seventy-five per cent.” (w.e.f. 1-9-2016). 4 S b b 35 ibid f “ i d h ” ( f 1 9 2016) ----- (3) Any proceeding before the Tribunal or the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860) and the Tribunal or the Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 1[(4) For the purpose of proof of any entry in the ‘bankers books’, the provisions of the Bankers’ Books Evidence Act, 1891 (18 of 1891) shall apply to all the proceedings before the Tribunal or Appellate Tribunal.] 2[22A. Uniform procedure **for conduct of proceedings.—The Central Government may, for the** purpose of this Act, by rules, lay down uniform procedure consistent with the provisions of this Act for conducting the proceedings before the Tribunals and Appellate Tribunals.] **23. Right to legal representation and Presenting Officers.—(1) A bank or a financial institution** making an application to a Tribunal or an appeal to an Appellate Tribunal may authorise one or more legal practitioners or any of its officers to act as Presenting Officers and every person so authorised by it may present its case before the Tribunal or the Appellate Tribunal. (2) The defendant may either appear in person or authorise one or more legal practitioners or any of his or its officers to present his or its case before the Tribunal or the Appellate Tribunal. **24. Limitation.—The provisions of the Limitation Act, 1963 (36 of 1963), shall, as far as may be,** apply to an application made to a Tribunal. CHAPTER V RECOVERY OF DEBT DETERMINED BY TRIBUNAL **25. Modes of recovery of debts.—The Recovery Officer shall, on receipt of the copy of the** certificate under sub-section (7) of section 19, proceed to recover the amount of debt specified in the certificate by one or more of the following modes, namely:— (a) attachment and sale of the movable or immovable property of the defendant; 3[(aa) taking possession of property over which security interest is created or any other property of the defendant and appointing receiver for such property and to sell the same;] (b) arrest of the defendant and his detention in prison; (c) appointing a receiver for the management of the movable or immovable properties of the defendant; 3[(d) any other mode of recovery as may be prescribed by the Central Government.] **26. Validity of certificate and amendment thereof.—(1) It shall not be open to the defendant to** dispute before the Recovery Officer the correctness of the amount specified in the certificate, and no objection to the certificate on any other ground shall also be entertained by the Recovery Officer. (2) Notwithstanding the issue of a certificate to a Recovery Officer, the Presiding Officer shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending intimation to the Recovery Officer. (3) The Presiding Officer shall intimate to the Recovery Officer any order withdrawing or cancelling a certificate or any correction made by him under sub-section (2). **27.** **Stay** **of** **proceedings** **under** **certificate** **and** **amendment** **or** **withdrawal** **thereof.—[4][(1) Notwithstanding that a certificate has been issued to the Recovery Officer for the** recovery of any amount, the Presiding Officer, may by an order, grant time for payment of the amount, provided the defendant makes a down payment of not less than twenty-five per cent. of the amount specified in the recovery certificate and gives an unconditional undertaking to pay the balance within a reasonable time, which is acceptable to the applicant bank or financial institution holding recovery certificate. (1A) The Recovery Officer shall, after receipt of the order passed under sub-section (1), stay the proceedings until the expiry of the time so granted. 1. Ins. by Act 44 of 2016, s. 36 (w.e.f. 1-9-2016). 2. Ins. by s. 37, ibid. (w.e.f. 1-9-2016). 3. Ins. by s. 38, ibid. (w.e.f. 1-9-2016). 4 S b b 39 ibid f b i (1) ( f 1 9 2016) ----- (1B) Where defendant agrees to pay the amount specified in the Recovery Certificate and proceeding are stayed by the Recovery Officer, the defendant shall forfeit right to file appeal against the orders of the Tribunal. (1C) Where the defendant commits any default in payment of the amount under sub-section (1), the stay of recovery proceedings shall stand withdrawn and the Recovery Officer shall take steps for recovery of remaining amount of debt due and payable.] (2) Where a certificate for the recovery of amount has been issued, the Presiding Officer shall keep the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue of such certificate to the Recovery Officer. (3) Where the order giving rise to a demand of amount for recovery of debt has been modified in appeal, and, as a consequence thereof the demand is reduced, the Presiding Officer shall stay the recovery of such part of the amount of the certificate as pertains to the said reduction for the period for which the appeal remains pending. (4) Where a certificate for the recovery of debt has been received by the Recovery Officer and subsequently the amount of the outstanding demands is reduced [1][or enhanced] as a result of an appeal, the Presiding Officer shall, when the order which was the subject matter of such appeal has become final and conclusive, amend the certificate or withdraw it, as the case may be. **28. Other modes of recovery.—(1) Where a certificate has been issued to the Recovery Officer** under sub-section (7) of section 19, the Recovery Officer may, without prejudice to the modes of recovery specified in section 25, recover the amount of debt by any one or more of the modes provided under this section. (2) If any amount is due from any person to the defendant, the Recovery Officer may require such person to deduct from the said amount, the amount of debt due from the defendant under this Act and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Recovery Officer: Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5 of 1908). (3) (i) The Recovery Officer may, at any time or from time to time, by notice in writing, require any person from whom money is due or may become due to the defendant or to any person who holds or may subsequently hold money for or on account of the defendant, to pay to the Recovery Officer either forthwith upon the money becoming due or being held or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount of debt due from the defendant or the whole of the money when it is equal to or less than that amount. (ii) A notice under this sub-section may be issued to any person who holds or may subsequently hold any money for or on account of the defendant jointly with any other person and for the purposes of this sub-section, the shares of the joint holders in such amount shall be presumed, until the contrary is proved, to be equal. (iii) A copy of the notice shall be forwarded to the defendant at his last address known to the Recovery Officer and in the case of a joint account to all the joint holders at their last addresses known to the Recovery Officer. (iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, bank, financial institution, or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like to be made before the payment is made notwithstanding any rule, practice or requirement to the contrary. (v) Any claim respecting any property in relation to which a notice under this sub-section has been issued arising after the date of the notice shall be void as against any demand contained in the notice. 1 I b A 1 f 2000 10 ( f 17 1 2000) ----- (vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement on oath that the sum demanded or the part thereof is not due to the defendant or that he does not hold any money for or on account of the defendant, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the Recovery Officer to the extent of his own liability to the defendant on the date of the notice, or to the extent of the defendant’s liability for any sum due under this Act, whichever is less. (vii) The Recovery Officer may, at any time or from time to time, amend or revoke any notice under this sub-section or extend the time for making any payment in pursuance of such notice. (viii) The Recovery Officer shall grant a receipt for any amount paid in compliance with a notice issued under this sub-section, and the person so paying shall be fully discharged from his liability to the defendant to the extent of the amount so paid. (ix) Any person discharging any liability to the defendant after the receipt of a notice under this sub-section shall be personally liable to the Recovery Officer to the extent of his own liability to the defendant so discharged or to the extent of the defendant’s liability for any debt due under this Act, whichever is less. (x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance thereof to the Recovery Officer, he shall be deemed to be a defendant in default in respect of the amount specified in the notice and further proceedings may be taken against him for the realisation of the amount as if it were a debt due from him, in the manner provided in sections 25, 26 and 27 and the notice shall have the same effect as an attachment of a debt by the Recovery Officer in exercise of his powers under section 25. (4) The Recovery Officer may apply to the court in whose custody there is money belonging to the defendant for payment to him of the entire amount of such money, or if it is more than the amount of debt due, an amount sufficient to discharge the amount of debt so due. 1[(4A) The Recovery Officer may, by order, at any stage of the execution of the certificate of recovery, require any person, and in case of a company, any of its officers against whom or which the certificate of recovery is issued, to declare on affidavit the particulars of his or its assets.] (5) The Recovery Officer may recover any amount of debt due from the defendant by distraint and sale of his movable property in the manner laid down in the Third Schedule to the Income-tax Act, 1961 (43 of 1961). **29. Application of certain provisions of Income-tax Act.—The provisions of the Second and Third** Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time shall, as far as possible, apply with necessary modifications as if the said provisions and the rules referred to the amount of debt due under this Act instead of to the Income-tax: Provided that any reference under the said provisions and the rules to the “assessee” shall be construed as a reference to the defendant under this Act. **2[30. Appeal against the order of Recovery Officer.—(1) Notwithstanding anything contained in** section 29, any person aggrieved by an order of the Recovery Officer made under this Act may, within thirty days from the date on which a copy of the order is issued to him, prefer an appeal to the Tribunal. (2) On receipt of an appeal under sub-section (1), the Tribunal may, after giving an opportunity to the appellant to be heard, and after making such inquiry as it deems fit, confirm, modify or set aside the order made by the Recovery Officer in exercise of his powers under sections 25 to 28 (both inclusive).] 3[30A. Deposit of amount of debt due for filing appeal against orders of the Recovery **Officer.—Where an appeal is preferred against any order of the Recovery Officer, under section 30, by** any person from whom the amount of debt is due to a bank or financial institution or consortium of banks or financial institutions, such appeal shall not be entertained by the Tribunal unless such person has deposited with the Tribunal fifty per cent. of the amount of debt due as determined by the Tribunal.] 1. Ins. by Act 1 of 2000, s. 11 (w.e.f. 17-1-2000). 2. Subs. by s. 12, ibid., for section 30 (w.e.f. 17-1-2000). 3 I b A 44 f 2016 40 ( f 1 9 2016) ----- CHAPTER VI MISCELLANEOUS **31. Transfer of pending cases.—(1) Every suit or other proceeding pending before any court** immediately before the date of establishment of a Tribunal under this Act, being a suit or proceeding the cause of action whereon it is based is such that it would have been, if it had arisen after such establishment, within the jurisdiction of such Tribunal, shall stand transferred on that date to such Tribunal: Provided that nothing in this sub-section shall apply to any appeal pending as aforesaid before any court: 1[Provided further that any recovery proceedings in relation to the recovery of debts due to any multi-State co-operative bank pending before the date of commencement of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2012 (1 of 2013) under the Multi-State Co-operative Societies Act, 2002 (39 of 2002), shall be continued and nothing contained in this section shall apply to such proceedings.] (2) Where any suit or other proceeding stands transferred from any court to a Tribunal under sub-section (1),— (a) the court shall, as soon as may be after such transfer, forward the records of such suit or other proceeding to the Tribunal; and (b) the Tribunal may, on receipt of such records, proceed to deal with such suit or other proceeding, so far as may be, in the same manner as in the case of an application made under section 19 from the stage which was reached before such transfer or from any earlier stage [2]*** as the Tribunal may deed fit. **3[31A. Power of Tribunal to issue certificate of recovery in case of decree or order.—(1) Where a** decree or order was passed by any court before the commencement of the Recovery of Debts Due to Banks and Financial Institutions (Amendment) Act, 2000 (1 of 2000) and has not yet been executed, then, the decree-holder may apply to the Tribunal to pass an order for recovery of the amount. (2) On receipt of an application under sub-section (1), the Tribunal may issue a certificate for recovery to a Recovery Officer. (3) On receipt of a certificate under sub-section (2), the Recovery Officer shall proceed to recover the amount as if it was a certificate in respect of a debt recoverable under this Act.] **4[31B.** **Priority to secured creditors.—Notwithstanding anything contained in any other law for the** time being in force, the rights of secured creditors to realise secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority. _Explanation.—For the purposes of this section, it is hereby clarified that on or after the_ commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured creditors in payment of debt shall be subject to the provisions of that Code.] **5[32. Chairperson, Presiding Officer and staff of Appellate Tribunal and Tribunal to be public** **servants.—The Chairperson of an Appellate Tribunal, the Presiding Officer of a Tribunal, the Recovery** Officer and other officers and employees of an Appellate Tribunal and a Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).] **33. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or against [6][the Presiding Officer of a Tribunal or the Chairperson of 1. Ins. by Act 1 of 2013, s. 16 (w.e.f. 15-1-2013). 2. The words “de novo” omitted by Act 1 of 2000, s. 13 (w.e.f. 17-1-2000). 3. Ins. by s. 14, ibid. (w.e.f. 17-1-2000). 4. Ins. by Act 44 of 2016, s. 41 (w.e.f. 1-9-2016). 5. Subs. by Act 1 of 2000, s. 15, for section 32 (w.e.f. 17-1-2000). 6 S b b 2 ibid f “ h P idi Offi f T ib l f A ll T ib l” ( f 17 1 2000) ----- an Appellate Tribunal] or against the Recovery Officer for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder. **34. Act to have overriding effect.—(1) Save as provided under sub-section (2), the provisions of this** Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. (2) The provisions of this Act or the rules made thereunder shall be in addition to, and not in derogation of, the Industrial Finance Corporation Act, 1948 (15 of 1948), the State Financial Corporations Act, 1951 (63 of 1951), the Unit Trust of India Act, 1963 (52 of 1963), the Industrial Reconstruction Bank of India Act, 1984 (62 of 1984), [1][, the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) and the Small Industries Development Bank of India Act, 1989 (39 of 1989)]. **35. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of the period of three years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **36. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Act. (2) Without prejudice to the generality of the foregoing powers, such rules may, provide for all or any of the following matters, namely:— 2[(a) other business or commercial rights of similar nature under clause (jb) of section 2;] 3[(aa)] the salaries and allowances and other terms and conditions of service of 4[the Chairpersons, the Presiding Officers], Recovery Officers and other officers and employees of the Tribunal and the Appellate Tribunal under sections 7, 12 and 13; (b) the procedure for the investigation of misbehaviour or incapacity of [5][the Chairpersons of Appellate Tribunals and the Presiding Officers of the Tribunals], under sub-section (3) of section 15; (c) the form in which an application may be made under section 19, the documents and other evidence by which such application shall be accompanied and the fees payable in respect of the filing of such application; 6[(ca) the form of application and the fee for filing application under sub-section (3) of section 19;] 7[(cc) the rate of fee to be refunded to the applicant under sub-section 8[(3B)] of section 19 of the Act;] 6[(cca) the period for filing written statement under sub-section (10) of section 19; (ccb) the fee for obtaining copy of the order of the Tribunal under sub-section (21) of section 19; (ccc) the form and manner of authenticating digital signature under clause (a), and the manner of authenticating service or delivery of pleadings and documents under clause (b), of sub-section (1) of section 19A; 1. Subs. by Act 1 of 2000, s. 16, for “and the Sick Industrial Companies (Special Provisions) Act, 1985” (w.e.f. 17-1-2000). 2. Ins. by Act 44 of 2016, s. 42 (w.e.f. 1-9-2016). 3. Clause (a) numbered as clause (aa) thereof by s. 42, ibid. (w.e.f. 1-9-2016). 4. Subs. by Act 1 of 2000, s. 17, for “the Presiding Officers” (w.e.f. 17-1-2000). 5. Subs. by s. 17, ibid., for “the Presiding Officers of the Tribunals and Appellate Tribunals” (w.e.f. 17-1-2000). 6. Ins. by Act 44 of 2016, s. 42 (w.e.f. 1-9-2016). 7. Ins. by Act 1 of 2013, s. 17 (w.e.f. 17-1-2000). 8 S b b A 44 f 2016 42 f “(3A)” ( f 1 9 2016) ----- (ccd) the form and manner of filing application and other documents in the electronic form under sub-section (1) and manner of display of orders of the Tribunal and Appellate Tribunal under sub-section (4) of section 19A;] (d) the form in which an appeal may be filed before the Appellate Tribunal under section 20 and the fees payable in respect of such appeal; 1[(da) the rules of uniform procedure for conducting the proceedings before the Tribunals and Appellate Tribunals under section 22A; (db) the other mode of recovery under clause (d) of section 25;] (e) any other matter which is required to be, or may be, prescribed. 1[(3) Every notification issued under sub-section (4) of section 1, section 3 and section 8 and every rule made by the Central Government under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or rule or both Houses agree that the notification or rule should not be issued or made, the notification or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule.] **37. Repeal and saving.—(1) The Recovery of Debts Due to Banks and Financial Institutions** Ordinance, 1993 (Ord. 25 of 1993) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. 1 S b b A 1 f 2000 17 f b i (3) ( f 17 1 2000) -----
4-Sep-1993
65
The Oil and Natural Gas Commission (Transfer of Undertaking and Repeal) Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1902/1/A1993-65.pdf
central
# THE OIL AND NATURAL GAS COMMISSION (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 1993 ______ ARRANGEMENT OF SECTIONS ______ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Undertaking of Commission to vest in Corporation. 4. General effect of vesting of undertaking in Corporation. 5. Licences, etc., to be deemed to have been granted to Corporation. 6. Tax exemption or benefit to continue to have effect. 7. Guarantee to be operative. 8. Provisions in respect of officers and other employees of Commission. 9. Power of entry. 10. Power to make rules. 11. Repeal of Act 48 of 1959. 12. Repeal and saving. 1 ----- # THE OIL AND NATURAL GAS COMMISSION (TRANSFER OF UNDERTAKING AND REPEAL) ACT,1993 ACT NO. 65 OF 1993 [4th September, 1993.] # An Act to provide for the transfer and vesting of the undertaking of the Oil and Natural Gas Commission to and in the Oil and Natural Gas Corporation Limited, a company incorporated under the Companies Act, 1956, and for matters connected therewith or incidental thereto and also to repeal the Oil and Natural Gas Commission Act, 1959. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Oil and Natural Gas** Commission (Transfer of Undertaking and Repeal) Act, 1993. (2) It shall be deemed to have come into force on the 2nd day of July, 1993. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means such date as the Central Government may, by notification in the Official Gazette, appoint under section 3; (b) “Corporation” means the Oil and Natural Gas Corporation Limited, a company registered under the Companies Act, 1956 (1 of 1956); (c) “Commission” means the Oil and Natural Gas Commission established under sub-section (1) of section 3 of the Oil and Natural Gas Commission Act, 1959 (43 of 1959); (d) “prescribed” means prescribed by rules made under this Act. **3. Undertaking of Commission to vest in Corporation.—On such date[1]as the Central Government** may, by notification in the Official Gazette, appoint, the undertaking of the Commission shall stand transferred to, and vest in, the Corporation. **4. General effect of vesting of undertaking in Corporation.—(1) On and from the appointed day,** the entire capital of the Commission shall, by virtue of this Act, stand vested in the Corporation. (2) The undertaking of the Commission which is transferred to, and which vests in, the Corporation under section 3 shall be deemed to include all assets, rights, powers, authorities and privileges and all properties, movable and immovable, real and personal, corporeal or incorporeal, in possession or reservation, present or contingent of whatever nature and wheresoever situate including lands, buildings, works, workshops, vehicles, oil rigs, oil platforms, cash balances, deposits, foreign currencies, reserves, reserve funds or any other investments, securities, tenancies, leases and book debts and all other rights and interests arising out of such properties as were immediately before the appointed day in the ownership, possession or power of the Commission in relation to its undertaking, whether within or outside India, all books of account and registers, records and documents relating thereto and shall also be deemed to include all liabilities and obligations of whatever kind, within or outside India, of the Commission in relation to its undertaking subsisting immediately before the appointed day. (3) All contracts, deeds, bonds, guarantees, powers of attorney, other instruments and working arrangements subsisting immediately before the appointed day and affecting the Commission shall cease to have effect or to be enforceable against the Commission and shall be of as full force and effect against or in favour of the Corporation and enforceable as fully and effectually as if, instead of the Commission the Corporation had been named therein or had been a party thereto. (4) Any proceeding or cause of action pending or existing immediately before the appointed day by or against the Commission, in relation to its undertaking may, as from the appointed day, be continued and 1. 1st February, 1994, vide notification No. G.S.R. 44(E), dated 28th January 1994, see Gazette of India, Extraordinary, Part I, sec. 3(i) 2 ----- enforced by or against the Corporation as it might have been enforced by or against the Commission, if this Act had not been in force, and shall cease to be enforceable by or against the Commission. **5. Licences, etc., to be deemed to have been granted to Corporation.—With effect from the** appointed day, all licences, leases, concessions, permits, quotas, benefits, privileges and exemptions granted to the Commission in connection with the affairs of the Commission under any law for the time being in force, shall be deemed to have been granted to the Corporation. **6. Tax exemption or benefit to continue to have effect.—(1) Where any exemption from, or any** assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry forward of any unabsorbed depreciation or investment allowance or other allowance or loss has been extended or is available to the Commission under the Income-tax Act, 1961 (43 of 1961), such exemption, assessment or benefit shall continue to have effect, in relation to the Corporation. (2) Where any payment made by the Commission is exempt from deduction of the tax at source under any provision of the Income-tax Act, 1961 (43 of 1961), the exemption from tax will continue to be available as if the provisions of the said Act made applicable to the Commission were operative in relation to the Corporation. (3) The transfer and vesting of the undertaking or any part thereof in terms of section 3 shall not be construed as a transfer within the meaning of the Income-tax Act, 1961 (43 of 1961), for the purpose of capital gains. **7. Guarantee to be operative.—Any guarantee given for or in favour of the Commission with** respect to any loan or lease finance or other assistance shall continue to be operative in relation to the Corporation. **8. Provisions in respect of officers and other employees of Commission.—(1) Every officer or** other employee of the Commission (except a member or the chairman) serving in its employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the undertaking which has vested in the Corporation by virtue of this Act, become, as from the appointed day, an officer or, as the case may be, other employee of the Corporation and shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions with the same obligations and with the same rights and privileges as to leave, passage, insurance, superannuation scheme, provident fund, other funds, retirement, pension, gratuity and other benefits as he would have held under the Commission if its undertaking had not vested in the Corporation and shall continue to do so as an officer or other employee of the Corporation or until the expiry of a period of one year from the appointed day if such officer or other employee opts not to be the officer or other employee of the Corporation within such period. (2) Where an officer or other employee of the Commission opts under sub-section (1) not to be in the employment or service of the Corporation such officer or other employee shall be deemed to have resigned. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, the transfer of the service of any officer or other employee of the Commission to the Corporation shall not entitle such officer or other employee to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. (4) The officers and other employees who have retired before the appointed day from the service of the Commission and are entitled to any benefits, rights or privileges shall be entitled to receive the same benefits, rights or privileges from the Corporation. (5) The trusts of the provident fund, gratuity fund or the superannuation scheme of the Commission and any other bodies created for the welfare of officers or other employees shall continue to discharge their functions in the Corporation as was being done hitherto in the Commission and any tax exemption granted to the provident fund, gratuity fund and the superannuation scheme or any other bodies created for the welfare of officers or other employees shall continue to be applied to the Corporation. 3 ----- (6) Notwithstanding anything contained in this Act or in the Companies Act, 1956 (1 of 1956) or in any other law for the time being in force or in the regulations of the Commission, no member or chairman of the Commission shall be entitled to any compensation against the Commission or the Corporation for the loss of office or for the premature termination of any contract of management entered into by him with the Commission. **9. Power of entry.—(1) For the purposes of ascertaining the availability of any oil or natural gas, the** Central Government may, on the request being made by the Corporation, authorise any officer or employee of the Corporation, by general or special order,— (a) to enter and inspect any land; (b) to survey and take measurements of such land; (c) to dig holes or perform any other functions for the purposes of measuring or prospecting for the availability of oil and natural gas; and (d) to examine any document, book, register or record in the possession or power of any person having the control of or connected with any such land and place marks of identification thereon and take extracts from and make copies of any such document, book, register or record. (2) Every person authorised by the Central Government under sub-section (1) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). (3) The Corporation shall be liable to pay compensation for any loss or damage caused to the land caused by its officers or employees in performing the functions under sub-section (1) in such manner as may be prescribed to the occupier of the land. (4) The amount of compensation payable under sub-section (3) shall be determined by the competent authority appointed by the Central Government in the manner prescribed. **10. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for the amount and the manner of paying compensation for any loss or damage caused to the land by the officers and employees of the Corporation under sub-sections (3) and (4) of section 9. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **11. Repeal of Act 48 of 1959.—(1) On the appointed day, the Oil and Natural Gas Commission** Act, 1959 shall stand repealed. (2) Notwithstanding such repeal, the Corporation shall, so far as may be, comply with the provisions of sections 22 and 23 of the said Act so repealed for any of the purposes related to the annual accounts of the Commission. **12. Repeal and saving.—(1) The Oil and Natural Gas Commission (Transfer of Undertaking and** Repeal) Ordinance, 1993 (Ord. 28 of 1993) is hereby repealed. (2) Notwithstanding the repeal of the Oil and Natural Gas Commission (Transfer of Undertaking and Repeal) Ordinance, 1993 (Ord. 28 of 1993), anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provision of this Act. 4 -----
4-Sep-1993
64
The National Commission for Safai Karamcharis Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1945/1/199364.pdf
central
# THE NATIONAL COMMISSION FOR SAFAI KARAMCHARIS ACT, 1993 ____________ ARRANGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, application, commencement, duration and savings. 2. Definitions. # CHAPTER II THE NATIONAL COMMISSION FOR SAFAI KARAMCHARIS 3. Constitution of the National Commission for Safai Karamcharis. 4. Term of office and conditions of service of Chairperson, Vice-Chairperson and Members. 5. Officers and other employees of the Commission. 6. Vacancy, etc., not to invalidate the proceedings of the Commission. 7. Procedure to be regulated by the Commission. CHAPTER III FUNCTION SAND POWERS OF THE COMMISSION 8. Functions and powers of the Commission CHAPTER IV MISCELLANEOUS 9. Chairperson, Vice-Chairperson and Members and staff of the Commission to be public servants. 10. Central Government to consult Commission. 11. Annual report. 12. Annual report to be laid before Parliament or the Legislative Assembly. 13. Delegation of powers. 14. Protection of action taken in good faith. 15. Power to make rules. 1 ----- # THE NATIONAL COMMISSION FOR SAFAI KARAMCHARIS ACT, 1993 ACT NO. 64 OF 1993 [4th September, 1993.] An Act to constitute a National Commission for Safai Karamcharis and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, application, commencement, duration and savings.—(1) This Act may be** called the National Commission for Safai Karamcharis Act, 1993. (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. (4) It shall cease to have effect after the [3][29th day of February, 2004], except as respects things done or omitted to be done before such cesser, and upon such cesser section 6 of the General Clauses Act, 1897(10 of 1897), shall apply as if this Act had then been repealed by a Central Act. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Chairperson” means the Chairperson of the Commission; (b) “Commission” means the National Commission for Safai Karamcharis constituted under section 3; (c) “Member” means a Member of the Commission; (d) “prescribed” means prescribed by rules made under this Act; (e) “Safai Karamchari” means a person engaged in, or employed for, manually carrying human excreta or any sanitation work; (f) “Vice-Chairperson” means the Vice-Chairperson of the Commission. # CHAPTER II THE NATIONAL COMMISSIONFOR SAFAI KARAMCHARIS **3. Constitution of the National Commission for Safai Karamcharis.—(1) The Central** Government shall, by notification in the Official Gazette, constitute a body to be known as the National Commission for Safai Karamcharis to exercise the powers conferred on, and to perform the functions assigned to, it under this Act. (2) The Commission shall consist of — (a) a Chairperson; (b) a Vice-Chairperson; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-102019). 2. 12th August, 1994, vide notification No. S.O. 591(E), dated 12th August, 1994, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3. Subs. by Act 55 of 2001, s. 2, for “31[st]day of March, 2002” (w.e.f. 13-12-2001). 2 ----- (c) five Members, to be nominated, from amongst the persons of eminence connected with the socio-economic development and welfare of Safai Karamcharis, by the Central Government: Provided that at least one of the Members shall be a woman. **4. Term of office and conditions of service of Chairperson, Vice-Chairperson and Members.—** (1) The Chairperson, Vice-Chairperson and every Member shall hold office for such period not exceeding three years as may be specified by the Central Government in this behalf or up to the 31st day of March, 1997, whichever is earlier. 1[Provided that the Chairperson, Vice-Chairperson and every Member holding office as such immediately before the commencement of the National Commission for Safai Karamcharis (Amendment) Act, 1997 (18 of 1997)shall vacate their respective offices on the 31st day of March, 1997: Provided further that the Chairperson, Vice-Chairperson and every Member appointed after the commencement of the National Commission for Safai Karamcharis (Amendment) Act, 1997 (18 of 1997) shall hold office for such period not exceeding three years as may be specified by the Central Government in this behalf or up to the 31st day of March, 2002, whichever is earlier.] 2[(1A) Notwithstanding anything contained in sub-section (1), the Chairperson, Vice-Chairperson and every Member appointed on or after the 16th day of February, 2001, shall hold office for a period not exceeding three years from the date of assumption of his office or up to the 29th day of February, 2004, whichever is earlier.] (2) The Chairperson, Vice-Chairperson or a Member may, by notice in writing addressed to the Central Government, resign from the office of Chairperson, Vice-Chairperson, or as the case may be, of the Member at any time. (3) The Central Government shall remove a person from the office of Chairperson, Vice-Chairperson or a Member if that person— (a) becomes an undischarged insolvent; (b) is convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; (c) becomes of unsound mind and stands so declared by a competent court; (d) refuses to act or becomes incapable of acting; (e) is, without obtaining leave of absence from the Commission, absent from three consecutive meetings of the Commission; or (f) in the opinion of the Central Government has so abused the position of Chairperson, Vice-Chairperson or Member as to render that person’s continuance in office detrimental to the public interest: Provided that no person shall be removed under this clause until that person has been given a reasonable opportunity of being heard in the matter. (4) A vacancy caused under sub-section (2) or sub-section (3) or otherwise shall be filled by fresh nomination and a person so nominated shall hold office for the unexpired period of the term for which his predecessor in office would have held office if such vacancy had not arisen. 1. Ins. by Act 18 of 1997, s. 3 (w.e.f 25-3-1997). 2. Ins. by Act 55 of 2001, s. 3 (w.e.f. 13-12-2001). 3 ----- (5) The salaries and allowances payable to, and other terms and conditions of serviceof, the Chairperson, Vice-Chairperson and Members shall be such as may be prescribed. **5. Officers and other employees of the Commission.—(1) The Central Government shall provide** the Commission with such officers and employees as may be necessary for the efficient performance of the functions of the Commission under this Act. (2) The salaries and allowances payable to, and other terms and conditions of service of, the officers and other employees appointed for the purpose of the Commission shall be such as may be prescribed. **6. Vacancy, etc., not to invalidate the proceedings of the Commission.—No act or proceeding of** the Commission shall be questioned or shall be invalid on the ground merely of the existence of any vacancy or defect in the constitution of the Commission. **7. Procedure to be regulated by the Commission.—(1) The Commission shall meet as and when** necessary and shall meet at such time and place as the Chairperson may think fit. (2) The Commission shall regulate its own procedure. (3) All orders and decisions of the Commission shall be authenticated by the Chairperson or any other officer of the Commission duly authorised by the Chairperson in this behalf. CHAPTER III FUNCTIONSANDPOWERSOF THE COMMISSION **8. Functions and powers of the Commission.—(1) The Commission shall perform all or any of the** following functions namely:— (a) recommend to the Central Government specific programmes of action towards elimination of inequalities in status, facilities and opportunities for Safai Karamcharis under a time-bound action plan; (b) study and evaluate the implementation of the programmes and schemes relating to the social and economic rehabilitation of Safai Karamcharis and make recommendations to the Central Government and State Governments for better co-ordination and implementation of such programmes and schemes; (c) investigate specific grievances and take _suo moto_ notice of matters relating tononimplementation of— (i) programmes or schemes in respect of any group of Safai Karamcharis; (ii) decisions, guidelines or instructions, aimed at mitigating the hardship of Safai Karamcharis; (iii) measures for the social and economic up liftment of Safai Karamcharis; (iv) the provisions of any law in its application to Safai Karamcharis, and take up such matters with the concerned authorities or with the Central or State Governments; (d) make periodical reports to the Central and State Governments on any matter concerning Safai Karamcharis, taking into account any difficulties or disabilities being encountered by Safai Karamcharis; (e) any other matter which may be referred to it by the Central Government. (2) In the discharge of its functions under sub-section (1), the Commission shall have power to call for information with respect to any matter specified in that sub-section from any Government or local or other authority. 4 ----- CHAPTER IV MISCELLANEOUS **9. Chairperson, Vice-Chairperson and Members and staff of the Commission to be public** **servants.—The Chairperson, Vice-Chairperson, Members, officers and other employees of the** Commission shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **10. Central Government to consult Commission.—The Central Government shall consult the** Commission on all major policy matters affecting Safai Karamcharis. **11. Annual report.—The Commission shall prepare in such form and at such time for each financial** year as may be prescribed its annual report giving a full account of its activities during the previous financial year and forward a copy thereof to the Central Government. **12. Annual report to be laid before Parliament or the Legislative Assembly.—(1) The Central** Government shall cause the annual report to be laid before each House of Parliament along with the memorandum explaining the action taken or proposed to be taken on the recommendations contained therein in so far as they relate to the Central Government and the reasons for non-acceptance, if any, of any such recommendation. (2) Where the said report or any part thereof relates to any matter with which a State Government is concerned, a copy of such report shall be forwarded to the Governor of the State who shall cause it to be laid before the Legislature of the State along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the State and the reasons for the non-acceptance, if any, of any such recommendation or part. **13. Delegation of powers.—The Commission may, by general or special order, delegate to the** Chairperson, Vice-Chairperson or any Member or to any officer of the Commission subject to such conditions and limitations, if any, as may be specified therein, such of its powers and duties under this Act as it may deem fit. **14. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government, Commission, Chairperson, Vice-Chairperson, Members or any officer or other employee of the Commission for anything which is in good faith done or intended to be done under this Act. **15. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (a) salaries and allowances payable to, and the other terms and conditions of service of, the Chairperson, Vice-Chairperson and Members under sub-section (5) of section 4 and of officers and other employees of the Commission under sub-section (2) of section5; (b) the form in, and the time at, which the annual report shall be prepared under section 11; (c) any other matter which is required to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 5 -----
21-Dec-1993
69
The Public Records Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1921/1/a1993___69.pdf
central
# THE PUBLIC RECORDS ACT, 1993 ______ ARRANGEMENT OF SECTIONS _____ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Power of the Central Government to coordinate, regulate and supervise operations connected with administration, management, etc., of public records. 4. Prohibition against taking of public records out of India. 5. Records officer. 6. Responsibilities of records officer. 7. Records officer to take appropriate action in the event of unauthorised removal, destruction, etc., of public records in his custody. 8. Destruction or disposal of public records. 9. Penalty for contraventions. 10. Public records bearing security classification. 11. Receipt of records from private sources. 12. Access to public records. 13. Archival Advisory Board. 14. Functions of the Board. 15. Power of the Director General to lay down norms and standards for courses in archival science. 16. Protection of action taken in good faith. 17. Power to make rules. 18. Laying of rules before Parliament. 1 ----- # THE PUBLIC RECORDS ACT, 1993 ACT NO. 69 OF 1993 [21st December, 1993.] # An Act to regulate the management, administration and preservation of public records of the Central Government, Union territory Administrations, public sector undertakings, statutory bodies and corporations, commissions and committees constituted by the Central Government or a Union territory Administration and matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Public Records Act, 1993.** (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Board” means the Archival Advisory Board constituted under sub-section (1) of section 13; (b) “Director General” means the Director General of Archives appointed by the Central Government and includes any officer authorised by that Government to perform the duties of the Director General; (c) “head of the Archives” means a person holding the charge of the Archives of the Union territory Administration; (d) “prescribed” means prescribed by rules made under this Act; (e) “public records” includes— (i) any document, manuscript and file; (ii) any microfilm, microfiche and facsimile copy of a document; (iii) any reproduction of image or images embodied in such microfilm (whether enlarged or not); and (iv) any other material produced by a computer or by any other device, of any records creating agency; (f) records creating agency includes,— (i) in relation to the Central Government, any ministry, department or office of that Government; (ii) in relation to any statutory body or corporation wholly or substantially controlled or financed by the Central Government or commission or any committee constituted by that Government, the offices of the said body, corporation, commission or committee; (iii) in relation to a Union territory Administration, any department or office of that Administration; (iv) in relation to any statutory body or corporation wholly or substantially controlled or financed by Union territory Administration or commission or any committee constituted by that Administration, the offices of the said body, corporation, commission or committee; (g) “records officer” means the officer nominated by the records creating agency under sub-section (1) of section 5. 1.1st March, 1995, vide notification No. S.O. 128(E), dated 1st March, 1995, see Gazette of India, Extraordinary, Part II, sec.3(ii). This Act has been extended to the Union territory Jammu and Kashmir and the Union territory of Ladakh by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 2 ----- **3. Power of the Central Government to coordinate, regulate and supervise operations connected** **with administration, management, etc., of public records.—(1) The Central Government shall have** the power to coordinate, regulate and supervise the operations connected with the administration, management, preservation, selection, disposal and retirement of public records under this Act. (2) The Central Government in relation to the public records of the records creating agencies specified in sub-clauses (i) and (ii) of clause (f) of section 2 and the Union territory Administration in relation to the public records of the records creating agencies specified in sub-clauses (iii) and (iv) of the said clause, may, by order, authorise the Director General or the head of the Archives, as the case may be, subject to such conditions as may be specified in the order, to carry out all or any of the following functions, namely:— (a) supervision, management and control of the Archives. (b) acceptance for deposit of public records of permanent nature after such period as may be prescribed; (c) custody, use and withdrawal of public records; (d) arrangement, preservation and exhibition of public records; (e) preparation of inventories, indices, catalogues and other reference media of public records; (f) analysing, developing, promoting and coordinating the standards, procedures and the techniques for improvement of the records management system; (g) ensuring the maintenance, arrangement and security of public records in the Archives and in the offices of the records creating agency; (h) promoting utilisation of available space and maintenance of equipments for preserving public records; (i) tendering advice to records creating agencies on the compilation, classification and disposal of records and application of standards, procedures and techniques of records management; (j) survey and inspection of public records; (k) organising training programmes in various disciplines of Archives administration and records management; (l) accepting records from any private source; (m) regulating access to public records; (n) receiving records from defunct bodies and making arrangement for securing public records in the event of national emergency; (o) receiving reports on records management and disposal practices from the records officer; (p) providing authenticated copies of, or extracts from, public records; (q) destroying or disposal of public records; (r) obtaining on lease or purchasing or accepting as gift any document of historical or national importance. **4. Prohibition against taking of public records out of India.—No person shall take or cause to be** taken out of India any public records without the prior approval of the Central Government: Provided that no such prior approval shall be required if any public records are taken or sent out of India for any official purpose. **5. Records officer.—(1) Every records creating agency shall nominate one of its officers as records** officer to discharge the functions under this Act. (2) Every records creating agency may set up such number of record rooms in such places as it deems fit and shall place each record room under the charge of a records officer. 3 ----- **6. Responsibilities of records officer.—(1) The records officer shall be responsible for—** (a) proper arrangement, maintenance and preservation of public records under his charge; (b) periodical review of all public records and weeding out public records of euphemeral value; (c) appraisal of public records which are more than twenty-five years old in consultation with the National Archives of India or, as the case may be, the Archives of the Union territory with a view to retaining public records of permanent value; (d) destruction of public records in such manner and subject to such conditions as may be prescribed under sub-section (1) of section 8; (e) compilation of a schedule of retention for public records in consultation with the National Archives of India or, as the case may be, the Archives of the Union territory; (f) periodical review for downgrading of classified public records in such manner as may be prescribed; (g) adoption of such standards, procedures and techniques as may be recommended from time to time by the National Archives of India for improvement of record management system and maintenance of security of public records; (h) compilation of annual indices of public records; (i) compilation of organisational history and annual supplement thereto; (j) assisting the National Archives of India or, as the case may be, the Archives of the Union territory for public records management; (k) submission of annual report to the Director General or, as the case may be, head of the Archives in such manner as may be prescribed; (l) transferring of records of any defunct body to the National Archives of India or the Archives of the Union territory, as the case may be, for preservation. (2) The records officer shall act under the direction of the Director General or, as the case may be, head of the Archives while discharging the responsibilities specified in sub-section (1). **7. Records officer to take appropriate action in the event of unauthorised removal, destruction,** **etc., of public records in his custody.—(1) The records officer shall, in the event of any unauthorised** removal destruction, defacement or alteration of any public records under his charge, forthwith take appropriate action for the recovery or restoration of such public records. (2) The records officer shall submit a report in writing to the Director General or, as the case may be, the head of the Archives without any delay on any information about any unauthorised removal, destruction, defacement or alteration of any public records under his charge and about the action initiated by him and shall take action as he may deem necessary subject to the directions, if any, given by the Director General or, as the case may be, head of the Archives. (3) The records officer may seek assistance from any government officer or any other person for the purpose of recovery or restoration of public records and such officer or person shall render all assistance to the records officer. **8. Destruction or disposal of public records.—(1) Save as otherwise provided in any law for the** time being in force, no public record shall be destroyed or otherwise disposed of except in such manner and subject to such conditions as may be prescribed. (2) No record created before the year 1892 shall be destroyed except where in the opinion of the Director General or, as the case may be, the head of the Archives, it is so defaced or is in such condition that it cannot be put to any archival use. **9. Penalty for contraventions.—Whoever contravenes any of the provisions of section 4 or section 8** shall be punishable with imprisonment for a term which may extend to five years or with fine which may extend to ten thousand rupees or with both. 4 ----- **10. Public records bearing security classification.—No public records bearing security** classification shall be transferred to the National Archives of India or the Archives of the Union territory. **11. Receipt of records from private sources.—(1) The National Archives of India or the Archives** of the Union territory may accept any record of historical or national importance from any private source by way of gift, purchase or otherwise. (2) The National Archives of India or, as the case may be, the Archives of any Union territory may, in such manner and subject to such conditions as may be prescribed, make any record referred to in sub-section (1) available to any bona fide research scholar. **12. Access to public records.—(1) All unclassified public records as are more than thirty years old** and are transferred to the National Archives of India or the Archives of the Union territory may be, subject to such exceptions and restrictions as may be prescribed made available to any bona fide research scholar. _Explanation.—For the purposes of this sub-section, the period of thirty years shall be reckoned from_ the year of the opening of the public record. (2) Any records creating agency may grant to any person access to any public record in its custody in such manner and subject to such conditions as may be prescribed. **13. Archival Advisory Board.—(1) The Central Government may, by notification in the Official** Gazette, constitute an Archival Advisory Board for the purposes of this Act. (2) The Board shall consist of the following members, namely:— (a) Secretary to the Government of India in the Ministry of Central Government dealing with Culture (b) one officer not below the rank of Joint Secretary to the Government of India, each from the Cabinet Secretariat, Ministry of Home Affairs,Ministry of Defence, Ministry of External Affairs, Ministry of Finance and Ministry of Personnel, Public Grievances and Pension (c) two representatives not below the rank of Joint Secretary in the Union territory Administrations to be nominated by the Central Government (d) three persons to be nominated by the Central Government for a period not exceeding three years, one being an Archivist and two being Professors in the Post-graduate Department of History in any recognised University. Chairman, ex officio; Members, ex officio; Members; Members; (e) Director General Member-Secretary, _ex officio_ (3) The members nominated under clause (d) of sub-section (2) shall be paid such allowances as may be prescribed. **14. Functions of the Board.—The Board shall perform the following functions, namely:—** (a) advise the Central Government and Union territory Administrations on matters concerning the administration, management, conservation and use of public records; (b) lay down guidelines for training of Archivists; (c) give directions for acquisition of records from private custody; (d) deal with such other matters as may be prescribed. 5 ----- **15. Power of the Director General to lay down norms and standards for courses in archival** **science.—The Director General shall have the power to lay down norms and standards for courses** curricula, assessment and examinations relating to the training in archival science and other ancillary subjects. **16. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against any person in respect of anything which is in good faith done or intended to be done in pursuance of this Act or the rules made thereunder. **17. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the period after which public records of permanent nature may be accepted under clause (b) of sub-section (2) of section 3; (b) the manner in which and the conditions subject to which public records can be destroyed under clause (d) of sub-section (1) of section 6; (c) the manner in which periodical review of classified public records for downgrading shall be undertaken under clause (f) of sub-section (1) of section 6; (d) the manner in which the records officer will report to the Director General or the head of the Archives under clause (k) of sub section (1) of section 6; (e) the manner in which and the conditions subject to which public records may be destroyed or disposed of under sub-section (1) of section 8; (f) the manner in which and the conditions subject to which records of historical or national importance may be made available to research scholar under sub-section (2) of section 11; (g) exceptions and restrictions subject to which public records may be made available to a research scholar under sub-section (1) of section 12; (h) the manner in which and the conditions subject to which any records creating agency may grant to any person access to public records in its custody under sub-section (2) of section 12; (i)the allowances payable to members of the Board under sub-section (3) of section 13; (j) the matters with respect to which the Board may perform its functions under clause (d) of section 14; (k) any other matter which is required to be, or may be, prescribed. **18. Laying of rules before Parliament.—Every rule made under this Act shall be laid, as soon as** may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 6 -----
29-Dec-1993
73
The National Council for Teacher Education Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1938/1/AAAA1993____73.pdf
central
# THE NATIONAL COUNCIL FOR TEACHER EDUCATION ACT, 1993 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II ESTABLISHMENT OF THE COUNCIL 3. Establishment of the Council. 4. Term of office and conditions of service of Members. 5. Disqualification for office of Member. 6. Vacation of office of Member. 7. Meetings of the Council. 8. Vacancies, etc., not to invalidate proceedings of the Council. 9. Power to co-opt. 10. Appointment of officers and other employees of the Council. 11. Authentication of the orders and other instruments of the Council. CHAPTER III FUNCTIONS OF THE COUNCIL 12. Functions of the Council. 12A. Power of Council to determine minimum standards of education of school teachers. 13. Inspection. CHAPTER IV RECOGNITION OF TEACHER EDUCATION INSTITUTIONS 14. Recognition of institutions offering course or training in teacher education. 15. Permission for a new course or training by recognised institution. 16. Affiliating body to grant affiliation after recognition or permission by the Council. 17. Contravention of provisions of the Act and consequences thereof. 18. Appeals. 1 ----- CHAPTER V BODIES OF THE COUNCIL SECTIONS 19. Executive Committee. 20. Regional Committees. 21. Power to terminate the Regional Committee. CHAPTER VI FINANCE, ACCOUNTS AND AUDIT 22. Payment to the Council. 23. Fund of the Council. 24. Budget of the Council. 25. Annual report. 26. Accounts and audit. CHAPTER VII MISCELLANEOUS 27. Delegation of powers and functions. 28. Protection of action taken in good faith. 29. Directions by the Central Government. 30. Power to supersede the Council. 31. Power to make rules. 32. Power to make regulations. 33. Rules and regulations to be laid before Parliament. 34. Power to remove difficulties. 2 ----- # THE NATIONAL COUNCIL FOR TEACHER EDUCATION ACT, 1993 ACT NO. 73 OF 1993 [29th December, 1993.] # An Act to provide for the establishment of a National Council for Teacher Education with a view to achieving planned and co-ordinated development of the teacher education system throughout the country, the regulation and proper maintenance of norms and standards in the teacher education system [1][including qualifications of school teachers] and for matters connected therewith. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the National Council for** Teacher Education Act, 1993. (2) It extends to the whole of India [2]***. (3) It shall come into force on such date[3] as the Central Government may, by notification in the Official Gazette, appoint. 4[(4) Save as otherwise provided in this Act, the provisions of this Act shall apply to— (a) institutions; (b) students and teachers of the institutions; (c) schools imparting pre-primary, primary, upper primary, secondary or senior secondary education and colleges providing senior secondary or intermediate education irrespective of the fact, by whatever names they may be called; and (d) teachers for schools and colleges referred to in clause (c).] **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date of establishment of the National Council for Teacher Education under sub-section (1) of section 3; (b) “Chairperson” means the Chairperson of the Council appointed under clause (a) of sub-section (4) of section 3; (c) “Council” means the National Council for Teacher Education established under sub-section (1) of section 3; (d) “examining body” means a University, agency or authority to which an institution is affiliated for conducting examinations in teacher education qualifications; (e) “institution” means an institution which offers courses or training in teacher education; 5[(ea) “local authority” means a Municipal Corporation, Municipal Committee, Municipal Council, Zila Parishad, District Board or Nagar Panchayat or Panchayat, or other authority (by whatever name called),legally entitled to, or entrusted by the Government with the control or management of a municipal or local fund;] 1. Ins. by Act 18 of 2011, s.2 (w.e.f. 1-6-2012). 2. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10 2019). 3. 1st July, 1995, vide notification No. S.O. 620(E), dated 1st July, 1995, see Gazette of India, Extraordinary, Part II, sec. 3(ii) 4. Ins. by Act 18 of 2011, s. 3 (w.e.f. 1-6-2012). 5. Ins. by s. 4, ibid. (w.e.f. 1-6-2012). 3 ----- (f) “Member” means a Member of the Council and includes the Chairperson and Vice-Chairperson; (g) “Member-Secretary” means the Member-Secretary of the Council appointed under clause (c) of sub-section (4) of section 3; (h) “prescribed” means prescribed by rules made under section 31; (i) “recognised institution” means an institution recognised by the Council under section 14; (j) “Regional Committee” means a committee established under section 20; (k) “regulations” means regulations made under section 32; 1[(ka) “school” means any recognised school imparting pre-primary, primary, upper primary, secondary or senior secondary education, or a college imparting senior secondary education, and includes— (i) a school established, owned and controlled by the Central Government, or the State Government or a local authority; (ii) a school receiving aid or grants to meet whole or part of its expenses from the Central Government, the State Government or a local authority; (iii) a school not receiving any aid or grants to meet whole or part of its expenses from the Central Government, the State Government or a local authority;] (l) “teacher education” means programmes of education, research or training of persons for equipping them to teach at pre-primary, primary, secondary and senior secondary stages in schools, and includes non-formal education, part-time education, adult education and correspondence education; (m) “teacher education qualification” means a degree, diploma or certificate in teacher education awarded by a University or examining body in accordance with the provisions of this Act; (n) “University” means a University defined under clause (f) of section 2 of the University Grants Commission Act, 1956 (3 of 1956), and includes an institution deemed to be a University under section 3 of that Act; (o) “Vice-Chairperson” means the Vice-Chairperson of the Council appointed under clause (b) of sub-section (4) of section 3. CHAPTER II ESTABLISHMENT OF THE COUNCIL **3. Establishment of the Council.—(1) With effect from such date as the Central Government may,** by notification in the Official Gazette, appoint, there shall be established a Council to be called the National Council for Teacher Education. (2) The Council shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to contract and shall, by the said name, sue and be sued. (3) The head office of the Council shall be at Delhi and the Council may, with the previous approval of the Central Government, establish regional offices at other places in India. (4) The Council shall consist of the following Members, namely:— (a) a Chairperson to be appointed by the Central Government; (b) a Vice-Chairperson to be appointed by the Central Government; (c) a Member-Secretary to be appointed by the Central Government; (d) the Secretary to the Government of India in the Department dealing with Education, ex officio; 1. Ins. by Act 18 of 2011, s. 4 (w.e.f. 1-6-2012). 4 ----- (e) the Chairman, University Grants Commission established under section 4 of the University Grants Commission Act, 1956 (3 of 1956) or a member thereof nominated by him, ex officio; (f) the Director, National Council of Educational Research and Training, ex officio; (g) the Director, National Institute of Educational Planning and Administration, ex officio; (h) the Adviser (Education), Planning Commission, ex officio; (i) the Chairman, Central Board of Secondary Education, ex officio; (j) the Financial Adviser to the Government of India in the Department dealing with Education, ex officio; (k) the Member-Secretary, All-India Council for Technical Education, ex officio; (l) the Chairpersons of all Regional Committees, ex officio; (m) thirteen persons possessing experience and knowledge in the field of education or teaching to be appointed by the Central Government as under, from amongst the— (i) Deans of Faculties of Education and Professors of Education in Universities —Four; (ii) experts in secondary teacher education —One; (iii) experts in pre-primary and primary teacher education —Three; (iv) experts in non-formal education and adult education —Two; (v) experts in the field of natural sciences, social sciences, —Three; linguistics, vocational education, work experience, educational technology and special education, by rotation, in the manner prescribed (n) nine Members to be appointed by the Central Government to represent the States and Union territory Administrations in the manner prescribed; (o) three Members of Parliament of whom one shall be nominated by the Chairman of the Council of States and two by the Speaker of the House of the People; (p) three Members to be appointed by the Central Government from amongst teachers of primary and secondary education and teachers of recognised institutions. (5) It is hereby declared that the office of the Member of the Council shall not disqualify its holder for being chosen as or for being a member of either House of Parliament. **4. Term of office and conditions of service of Members.—(1) The Chairperson, Vice-Chairperson** and the Member-Secretary shall hold office on a full-time basis. (2) The term of office of the Chairperson, the Vice-Chairperson and the Member-Secretary shall be four years, or till they complete the age of sixty years, whichever is earlier. (3) The conditions of service of the Chairperson, the Vice-Chairperson and the Member-Secretary shall be such as may be prescribed. (4) The term of office of Members [other than the Members specified in clauses (a) to (l) and clauses (n) and (o) of sub-section (4) of section 3] shall be two years or till fresh appointments are made, whichever is later, and other conditions of service of such Members shall be such as may be prescribed. (5) If a casual vacancy occurs in the office of Chairperson, whether by reason of death, resignation or inability to discharge the functions of a Chairperson owing to illness or other incapacity, the Vice-Chairperson holding office as such for the time being, shall act as the Chairperson and shall, unless any other person is appointed earlier as Chairperson, hold office of the Chairperson for the remainder of the term of office of the person in whose place the said person is to so act. 5 ----- (6) If a casual vacancy occurs in the office of the Vice-Chairperson or any other Member, whether by reason of death, resignation or inability to discharge his functions owing to illness or other incapacity, such vacancy shall be filled up by making fresh appointment and the person so appointed shall hold office for the remainder of the term of the office of the person in whose place such person is so appointed. (7) The Chairperson shall, in addition to presiding over the meetings of the Council, exercise and discharge such powers and duties of the Council as may be delegated to him by the Council and such other powers and duties as may be prescribed. (8) The Vice-Chairperson shall perform such functions as may be assigned to him by the Chairperson from time to time. **5. Disqualification for office of Member.—A person shall be disqualified for being appointed as a** Member if he— (a) has been convicted and sentenced to imprisonment for an offence, which, in the opinion of the Central Government, involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or (d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e) has in the opinion of the Central Government such financial or other interest in the Council as is likely to affect prejudicially the discharge by him of his functions as a Member. **6. Vacation of office of Member.—The Central Government shall remove a Member if he—** (a) becomes subject to any of the disqualifications mentioned in section 5: Provided that no Member shall be removed on the ground that he has become subject to the disqualification mentioned in clause (e) of that section, unless he has been given a reasonable opportunity of being heard in the matter; or (b) refuses to act or becomes incapable of acting; or (c) is, without obtaining leave of absence from the Council, absent from three consecutive meetings of the Council; or (d) in the opinion of the Central Government, has so abused his position as to render his continuance in office detrimental to the public interest: Provided that no Member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter. **7. Meetings of the Council.—(1) The Council shall meet at such time and places, and shall observe** such rules of procedure in regard to the transaction of business at its meetings (including the quorum at such meetings) as may be provided by regulations: Provided that the Council shall meet at least once every year. (2) The Chairperson, and in the absence of the Chairperson, the Vice-Chairperson shall preside at the meetings of the Council. (3) If for any reason the Chairperson and the Vice-Chairperson, both are unable to attend any meeting of the Council, any other Member chosen by the Members present at the meeting shall preside at that meeting. (4) All questions which come up before any meeting of the Council shall be decided by a majority of votes of the Members present and voting and in the event of any equality of votes, the Chairperson, or in the absence of the Chairperson the person presiding, shall have and exercise a second or casting vote. **8. Vacancies, etc., not to invalidate proceedings of the Council.—No act or proceeding of the** Council shall be invalid merely by reason of— 6 ----- (a) any vacancy in, or any defect in the constitution of, the Council; or (b) any defect in the appointment of a person acting as aMember of the Council; or (c) any irregularity in the procedure of the Council not affecting the merits of the case. **9. Power to co-opt.—(1) The Council may co-opt, in such manner and for such purposes as may be** determined by regulations, not more than three persons, whose assistance or advice it may desire in carrying out any of the provisions of this Act. (2) The person co-opted by the Council under sub-section (1) for any purpose shall have a right to take part in the discussions relevant to that purpose, but shall not have a right to vote at a meeting of the Council, and shall not be a Member for any other purpose. **10. Appointment of officers and other employees of the Council.—(1) For the purpose of enabling** the Council to discharge its functions efficiently under this Act, the Council shall, subject to such regulations as may be made in this behalf, appoint (whether on deputation or otherwise) such number of officers and other employees as it may consider necessary: Provided that the category of posts equivalent to Group ‘A’ posts in the Central Government shall be subject to the approval of the Central Government. (2) Every officer or other employee appointed by the Council shall be subject to such conditions of service as may be determined by regulations. **11. Authentication of the orders and other instruments of the Council.—All orders and decisions** of the Council shall be authenticated by the signature of the Chairperson or any other Member authorised by the Council in this behalf, and all other instruments issued by the Council shall be authenticated by the signature of the Member-Secretary or any other officer of the Council authorised in like manner in this behalf by the Chairperson. CHAPTER III FUNCTIONS OF THE COUNCIL **12. Functions of the Council.—It shall be the duty of the Council to take all such steps as it may** think fit for ensuring planned and co-ordinated development of teacher education and for the determination and maintenance of standards for teacher education and for the purposes of performing its functions under this Act, the Council may— (a) undertake surveys and studies relating to various aspects of teacher education and publish the result thereof; (b) make recommendations to the Central and State Government, Universities, University Grants Commission and recognised institutions in the matter of preparation of suitable plans and programmes in the field of teacher education; (c) co-ordinate and monitor teacher education and its development in the country; (d) lay down guidelines in respect of minimum qualifications for a person to be employed as a teacher [1]*** in recognised institutions; (e) lay down norms for any specified category of courses or trainings in teacher education, including the minimum eligibility criteria for admission thereof, and the method of selection of candidates, duration of the course, course contents and mode of curriculum; (f) lay down guidelines for compliance by recognised institutions, for starting new courses or training, and for providing physical and instructional facilities, staffing pattern and staff qualification; 1. The words “in schools or” omitted by Act 18 of 2011, s. 5 (w.e.f. 1-6-2012). 7 ----- (g) lay down standards in respect of examinations leading to teacher education qualifications, criteria for admission to such examinations and schemes of courses or training; (h) lay down guidelines regarding tuition fees and other fees chargeable by recognised institutions; (i) promote and conduct innovation and research in various areas of teacher education and disseminate the results thereof; (j) examine and review periodically the implementation of the norms, guidelines and standards laid down by the Council, and to suitably advise the recognised institutions; (k) evolve suitable performance appraisal system, norms and mechanisms for enforcing accountability on recognised institutions; (l) formulate schemes for various levels of teacher education and identify recognised institutions and set up new institutions for teacher development programmes; (m) take all necessary steps to prevent commercialisation of teacher education; and (n) perform such other functions as may be entrusted to it by the Central Government. 1[12A. Power of Council to determine minimum standards of education of school teachers.—For the purpose of maintaining standards of education in schools, the Council may, by regulations, determine the qualifications of persons for being recruited as teachers in any pre-primary, primary, upper primary, secondary, senior secondary or intermediate school or college, by whatever name called, established, run, aided or recognised by the Central Government or a State Government or a local or other authority: Provided that nothing in this section shall adversely affect the continuance of any person recruited in any pre-primary, primary, upper primary, secondary, senior secondary or intermediate schools or colleges, under any rule, regulation or order made by the Central Government, a State Government, a local or other authority, immediately before the commencement of the National Council for Teacher Education(Amendment)Act, 2011 (18 of 2011) solelyon the ground of non-fulfilment of such qualifications as may be specified by the Council: Provided further that the minimum qualifications of a teacher referred to in the first proviso shall be acquired within the period specified in this Act or under the Right of Children to Free and Compulsory Education Act, 2009 (35 of 2009).] **13. Inspection.—(1) For the purpose of ascertaining whether the recognised institutions are** functioning in accordance with the provisions of this Act, the Council may cause inspection of any such institution, to be made by such persons as it may direct, and in such manner as may be prescribed. (2) The Council shall communicate to the institution the date on which inspection under sub-section (1) is to be made and the institution shall be entitled to be associated with the inspection in such manner as may be prescribed. (3) The Council shall communicate to the said institution, its views in regard to the results of any such inspection and may, after ascertaining the opinion of that institution, recommend to that institution the action to be taken as a result of such inspection. (4) All communications to the institution under this section shall be made to the executive authority thereof, and the executive authority of the institution shall report to the Council the action, if any, which is proposed to be taken for the purpose of implementing any such recommendation as is referred to in sub-section (3). 1. Ins. by Act 18 of 2011, s. 6 (w.e.f. 1-6-2012). 8 ----- CHAPTER IV RECOGNITION OF TEACHER EDUCATION INSTITUTIONS **14. Recognition of institutions offering course of training in teacher education.—(1) Every institution** offering or intending to offer a course or training in teacher education on or after the appointed day, may, for grant of recognition under this Act, make an application to the Regional Committee concerned in such form and in such manner as may be determined by regulations: Provided that an institution offering a course or training in teacher education immediately before the appointed day, shall be entitled to continue such course or training for a period of six months, if it has made an application for recognition within the said period and until the disposal of the application by the Regional Committee. 1[Provided further that such institutions, as may be specified by the Central Government by notification in the Official Gazette, which— (i) are funded by the Central Government or the State Government or the Union territory Administration; (ii) have offered a course or training in teacher education on or after the appointed day till the academic year 2017-2018; and (iii) fulfil the conditions specified under clause (a) of sub-section (3), shall be deemed to have been recognised by the Regional Committee.] (2) The fee to be paid along with the application under sub-section (1) shall be such as may be prescribed. (3) On receipt of an application by the Regional Committee from any institution under sub-section (1), and after obtaining from the institution concerned such other particulars as it may consider necessary, it shall,— (a) if it is satisfied that such institution has adequate financial resources, accommodation, library, qualified staff, laboratory and that it fulfils such other conditions required for proper functioning of the institution for a course or training in teacher education, as may be determined by regulations, pass an order granting recognition to such institution, subject to such conditions as may be determined by regulations; or (b) if it is of the opinion that such institution does not fulfil the requirements laid down in sub-clause (a), pass an order refusing recognition to such institution for reasons to be recorded in writing: Provided that before passing an order under sub-clause (b), the Regional Committee shall provide a reasonable opportunity to the concerned institution for making a written representation. (4) Every order granting or refusing recognition to an institution for a course or training in teacher education under sub-section (3) shall be published in the Official Gazette and communicated in writing for appropriate action to such institution and to the concerned examining body, the local authority or the State Government and the Central Government. (5) Every institution, in respect of which recognition has been refused shall discontinue the course or training in teacher education from the end of the academic session next following the date of receipt of the order refusing recognition passed under clause (b) of sub-section (3). (6) Every examining body shall, on receipt of the order under sub-section (4),— (a) grant affiliation to the institution, where recognition has been granted; or (b) cancel the affiliation of the institution, where recognition has been refused. **15. Permission for a new course or training by recognised institution.—(1) Where any recognised** institution intends to start any new course or training in teacher education, it may make an application to seek permission therefor to the Regional Committee concerned in such form and in such manner as may be determined by regulations. 2[Provided that the course or training in teacher education offered on or after the appointed day till the academic year 2017-2018 by such institutions, as may be specified by the Central Government by notification in the Official Gazette, which— (i) are funded by the Central Government or the State Government or the Union territory Administration; and (ii) fulfil the conditions specified under clause (a) of sub-section (3), shall be deemed to have been granted permission by the Regional Committee.] 1. Ins. by Act 2 of 2019, s. 2 (w.e.f. 17-8-1995). 2. Ins. by s. 3, ibid. (w.e.f. 17-8-1995). 9 ----- (2) The fees to be paid along with the application under sub-section (1) shall be such as may be prescribed. (3) On receipt of an application from an institution under sub-section (1), and after obtaining from the recognised institution such other particulars as may be considered necessary, the Regional Committee shall,— (a) if it is satisfied that such recognised institution has adequate financial resources, accommodation, library, qualified staff, laboratory, and that it fulfils such other conditions required for proper conduct of the new course or training in teacher education, as may be determined by regulations, pass an order granting permission, subject to such conditions as may be determined by regulations; or (b) if it is of the opinion that such institution does not fulfil the requirements laid down in sub-clause (a), pass an order refusing permission to such institution for reasons to be recorded in writing: Provided that before passing an order refusing permission under sub-class (b), the Regional Committee shall provide a reasonable opportunity to the institution concerned for making a written representation. (4) Every order granting or refusing permission to a recognised institution for a new course or training in teacher education under sub-section (3), shall be published in the Official Gazette and communicated in writing for appropriate action to such recognised institution and to the concerned examining body, the local authority, the State Government and the Central Government. **16. Affiliating body to grant affiliation after recognition or permission by the Council.—** Notwithstanding anything contained in any other law for the time being in force, no examining body shall, on or after the appointed day,— (a) grant affiliation, whether provisional or otherwise, to any institution; or (b) hold examination, whether provisional or otherwise, for a course or training conducted by a recognised institution, unless the institution concerned has obtained recognition from the Regional Committee concerned, under section 14 or permission for a course or training under section 15. **17. Contravention of provisions of the Act and consequences thereof.—(1) Where the Regional** Committee is, on its own motion or on any representation received from any person, satisfied that a recognised institution has contravened any of the provisions of this Act, or the rules, regulations, orders made or issued thereunder, or any condition subject to which recognition under sub-section (3) of section 14 or permission under sub-section (3) of section 15 was granted, it may withdraw recognition of such recognised institution, for reasons to be recorded in writing: Provided that no such order against the recognised institution shall be passed unless a reasonable opportunity of making representation against the proposed order has been given to such recognised institution: Provided further that the order withdrawing or refusing recognition passed by the Regional Committee shall come into force only with effect from the end of the academic session next following the date of communication of such order. (2) A copy of every order passed by the Regional Committee under sub-section (1),— (a) shall be communicated to the recognised institution concerned and a copy thereof shall also be forwarded simultaneously to the University or the examining body to which such institution was affiliated for cancelling affiliation; and (b) shall be published in the Official Gazette for general information. (3) Once the recognition of a recognised institution is withdrawn under sub-section (1), such institution shall discontinue the course or training in teacher education, and the concerned University or the examining body shall cancel affiliation of the institution in accordance with the order passed under sub-section (1), with effect from the end of the academic session next following the date of communication of the said order. (4) If an institution offers any course or training in teacher education after the coming into force of the order withdrawing recognition under sub-section (1), or where an institution offering a course or training in teacher education immediately before the appointed day fails or neglects to obtain recognition or permission under this Act, the qualification in teacher education obtained pursuant to such course or training or after undertaking a course or training in such institution, shall not be treated as a valid qualification for purposes of employment under the Central Government, any State Government or University, or in any school, college or other educational body aided by the Central Government or any State Government. 10 ----- **18. Appeals.—(1) Any person aggrieved by an order made under section 14 or section 15 or** section 17 of the Act may prefer an appeal to the Council within such period as may be prescribed. (2) No appeal shall be admitted if it is preferred after the expiry of the period prescribed therefor: Provided that an appeal may be admitted after the expiry of the period prescribed therefor, if the appellant satisfies the Council that he had sufficient cause for not preferring the appeal within the prescribed period. (3) Every appeal made under this section shall be made in such form and shall be accompanied by a copy of the order appealed against and by such fees as may be prescribed. (4) The procedure for disposing of an appeal shall be such as may be prescribed: Provided that before disallowing an appeal, the appellant shall be given a reasonable opportunity to represent its case. (5) The Council may confirm or reverse the order appealed against. CHAPTER V BODIES OF THE COUNCIL **19. Executive Committee.—(1) The Council shall constitute a Committee, called Executive** Committee for discharging such functions as may be assigned to it by the Council or as may be determined by regulations. (2) The Executive Committee shall consist of the following members, namely:— (a) the Chairperson; (b) the Vice-Chairperson; (c) the Member-Secretary; (d) the Secretary to the Government of India in the Department dealing with Education, ex officio; (e) the Secretary, University Grants Commission, ex officio; (f) the Director, National Council of Educational Research and Training, exofficio; (g) the Financial Adviser to the Government of India in the Department dealing with Education, ex officio; (h) four experts in teacher education to be nominated by the Central Government; (i) four State representatives to be nominated by the Central Government in such manner as may be prescribed; (j) the Chairpersons of the Regional Committees. (3) The Chairperson and the Member-Secretary of the Council shall respectively, function as the Chairperson and the Member-Secretary of the Executive Committee. (4) The Chairperson or in his absence, the Vice-Chairperson of the Council shall preside at the meetings of the Executive Committee and in the absence of both the Chairperson and the Vice-Chairperson, any other member chosen by the members present at the meeting shall preside at the meeting. (5) The quorum necessary for the transaction of business at the meetings of the Executive Committee shall be as laid down by regulations. 11 ----- (6) The Executive Committee may co-opt, in such manner and for such purposes, as may be determined by regulations, not more than two persons whose assistance and advice, it may desire in carrying out any of the functions assigned to the Executive Committee: Provided that the persons co-opted by the Executive Committee for any purpose shall have a right to take part in the discussions relevant to that purpose, but shall not have a right to vote at a meeting of the Executive Committee, and shall not be a member for any other purpose. (7) The Council may, if it considers necessary, establish such other committees, for such specific purpose, as it may deem fit. **20. Regional Committees.—(1) The Council shall, by notification in the Official Gazette, establish** the following Regional Committees, namely:— (i) the Eastern Regional Committee; (ii) the Western Regional Committee; (iii) the Northern Regional Committee; and (iv) the Southern Regional Committee. (2) The Council may, if it considers necessary, establish with the approval of the Central Government, such other Regional Committees as it may deem fit. (3) The Regional Committee shall consist of the following members, namely:— (a) a Member to be nominated by the Council; (b) one representative from each of the States and the Union territories of the region, to be nominated by the respective States and the Union territories; (c) such number of persons, having special knowledge and experience in matters relating to teacher education, as may be determined by regulations. (4) The Council shall nominate one of the members of the concerned Regional Committee to function as the chairperson of the said Committee. (5) The term of office of the members referred to in clause (c) and the allowances payable to such members shall be such as may be determined by regulations. (6) The Regional Committee shall, in addition to its functions under sections 14, 15 and 17, perform such other functions, as may be assigned to it by the Council or as may be determined by regulations. (7) The functions of, the procedure to the followed by, the territorial jurisdiction of, and the manner of filling casual vacancies among members of, a Regional Committee shall be such as may be determined by regulations. **21. Power to terminate the Regional Committee.—(1) If the Council is of the opinion that a** Regional Committee is unable to perform, or has persistently made default in the performance of the duties imposed on it by or under this Act or has exceeded or abused its powers, or has wilfully or without sufficient cause, failed to comply with any direction issued by the Council for carrying out the provisions of this Act, the Council may, by notification in the Official Gazette, terminate forthwith the Regional Committee. (2) Upon the publication of a notification under sub-section (1),— (a) all members of the Regional Committee shall, notwithstanding that their term of office had not expired, as from the date of the termination, vacate their office as such members; and (b) all the powers and duties which may, by or under the provisions of this Act be exercised or performed by or on behalf of the Regional Committee shall, during the period when the term of office of its members stand terminated, be exercised and performed by such person or persons as the Council may direct. 12 ----- (3) The Council may at any time after publication of a notification under sub-section (2), re-constitute the Regional Committee in the manner provided in sub-section (3) of section 20: Provided that it shall be competent for the Council to appoint any person, who was a member of a Regional Committee which was terminated, as a member of the reconstituted Regional Committee. CHAPTER VI FINANCE, ACCOUNTS AND AUDIT **22. Payment to the Council.—The Central Government may, after due appropriation made by** Parliament by law in this behalf, pay to the Council in each financial year such sums as may be considered necessary for the performance of the functions of the Council under this Act. **23. Fund of the Council.—(1) The Council shall have its own fund; and all sums which may, from** time to time, be paid to it by the Central Government or a State Government and all the receipts of the Council, including any sum which any other authority or person in India or abroad may pay to the Council, shall be credited to the fund and all payments by the Council shall be made therefrom. (2) All moneys belonging to the fund shall be deposited in such banks or invested in such manner as may be decided by the Council. (3) The Council may spend such sums as it thinks fit for performing its functions under this Act, and such sums shall be treated as expenditure payable out of the fund of the Council. **24. Budget of the Council.—The Council shall prepare, in such form and at such time each year as** may be prescribed, a budget in respect of the financial year next ensuing, showing the estimated receipts and expenditure, and copies thereof shall be forwarded to the Central Government. **25. Annual report.—The Council shall prepare once every year, in such form and at such time as** may be prescribed, an annual report giving a true and full account of its activities during the previous year and copies thereof shall be forwarded to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament. **26. Accounts and audit.—(1) The Council shall cause to be maintained such books of account in** such form and in such manner and as the Central Government may, in consultation with the Comptroller and Auditor-General of India, prescribe. (2) The Council shall, as soon as may be, after closing its annual accounts, prepare a statement of accounts in such form and forward the same to the Comptroller and Auditor-General of India by such date as the Central Government may, in consultation with the Comptroller and Auditor-General, determine. (3) The accounts of the Council shall be audited by the Comptroller and Auditor-General of India at such times and in such manner as he think fit. (4) The accounts of the Council as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament. CHAPTER VII MISCELLANEOUS **27. Delagation of powers and functions.—The Council may, by general or special order in writing,** delegate to the chairperson or to any other member or to any officer of the Regional Committee, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act (except the power to make regulations under section 32), as it may deem necessary. **28. Protection of action taken in good faith.—No prosecution or other legal proceeding shall lie** against the Central Government, the Council or any committees appointed by it, or any Member of the Council or member of such committees, or any officer or employee of the Central Government or the 13 ----- Council or any other person authorised by that Government or the Council, for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. **29. Directions by the Central Government.—(1) The Council shall, in the discharge of its functions** and duties under this Act be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time. (2) The decision of the Central Government as to whether a question is one of policy or not shall be final. **30. Power to supersede the Council.—(1) If the Central Government is of the opinion that the** Council is unable to perform, or has persistently made default in the performance of the duties imposed on it by or under this Act or has exceeded or abused its power, or has wilfully or without sufficient cause failed to comply with any direction issued by the Central Government under section 29, the Central Government may, by notification in the Official Gazette, supersede the Council for such period as may be specified in the notification: Provided that before issuing a notification under this sub-section, the Central Government shall give reasonable opportunity to the Council to show cause why it should not be superseded and shall consider the explanation and objections, if any, of the Council. (2) Upon the publication of a notification under sub-section (1) superseding the Council— (a) all the Members of the Council shall, notwithstanding that their term of office had not expired, as from the date of supersession, vacate their offices as such Members; (b) all the powers and duties which may, by or under the provisions of this Act be exercised or performed by or on behalf of the Council shall, during the period of supersession, be exercised and performed by such person or persons as the Central Government may direct; (c) all property vested in the Council shall, during the period of supersession, vest in the Central Government. (3) On the expiry of the period of supersession specified in the notification issued under sub-section (1), the Central Government, may— (a) extend the period of supersession for such further period as it may consider necessary; or (b) reconstitute the Council in the manner provided in section 3. **31. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (a) the manner in which Central Government is to appoint experts to the Council under sub-clause (v) of clause (m) of sub-section (4) of section 3; (b) the manner in which the Central Government is to appoint Members to the Council from amongst the States and the Union territory Administrations under clause (n) of sub-section (4) of section 3; (c) the conditions of service of the Chairperson, the Vice-Chairperson and the Member-Secretary under sub-section (3) and of Members under sub-section (4) of section 4; (d) the powers and duties of the Chairperson under sub-section (7) of section 4; (e) the manner in which and the persons by whom the inspection of an institution is to be made and the manner in which the institution is to be associated in such inspection under sub-sections (1) and (2) of section 13; (f) the fees payable on application for obtaining recognition under sub-section (2) of section 14 and for obtaining permission under sub-section (2) of section 15; 14 ----- (g) the period of limitation for an appeal under sub-section (1) of section 18, the form in which such appeal is to be made and the fees payable therefor under sub-section (3) of that section and the procedure for disposal of an appeal under sub-section (4) of that section; (h) the manner in which the Central Government is to nominate the State representatives in the Executive Committee under clause (i) of sub-section (2) of section 19; (i) the form in which and the time within which the budget under section 24 and the annual report under section 25 of the Council is to be prepared; (j) the manner and the form in which the accounts of the Council are to be maintained under sub-section (1) of section 26; (k) any other matter which has to be, or may be, prescribed. **32. Power to make regulations.—(1) The Council may, by notification in the Official Gazette, make** regulations not inconsistent with the provisions of this Act and the rules made thereunder, generally to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the time and the place of the meetings of the Council and the procedure for conducting business thereat under sub-section (1) of section 7; (b) the manner in which and the purposes for which persons may be co-opted by the Council under sub-section (1) of section 9; (c) the appointment and terms and conditions of service of officers and other employees of the Council under sub-sections (1) and (2) respectively of section 10; (d) the norms, guidelines and standards in respect of— (i) the minimum qualifications for a person to be employed as a teacher under clause (d) of section 12; (ii) the specified category of courses or training in teacher education under clause (e) of section 12; (iii) starting of new courses or training in recognised institutions under clause (f) of section 12; (iv) standards in respect of examinations leading to teacher education qualifications referred to in clause (g) of section 12; (v) the tuition fees and other fees chargeable by institutions under clause (h) of section 12; (vi) the schemes for various levels of teacher education, and identification of institutions for offering teacher development programmes under clause (l) of section 12; 1[(dd) the qualifications of teachers under section 12A;] (e) the form and the manner in which an application for recognition is to be submitted under sub-section (1) of section 14; (f) conditions required for the proper functioning of the institution and conditions for granting recognition under clause (a) of sub-section (3) of section 14; (g) the form and the manner in which an application for permission is to be made under sub-section (1) of section 15; (h) conditions required for the proper conduct of a new course or training and conditions for granting permission under clause (a) of sub-section (3) of section 15; 1. Ins. by Act 18 of 2011, s. 7 (w.e.f. 1-6-2012). 15 ----- (i) the functions which may be assigned by the Council to the Executive Committee under sub-section (1) of section 19; (j) the procedure and the quorum necessary for transaction of business at the meetings of the Executive Committee under sub-section (5) of section 19; (k) the manner in which and the purposes for which the Executive Committee may co-opt persons under sub-section (6) of section 19; (l) the number of persons under clause (c) of sub-section (3) of section 20; (m) the term of office and allowances payable to members under sub-section (5) of section 20; (n) additional functions to be performed by the Regional Committee under sub-section (6) of section 20; (o) the functions of, the procedure to be followed by, the territorial jurisdiction of, and the manner of filling casual vacancies among members of, a Regional Committee under sub-section (7) of section 20; (p) any other matter in respect of which provision is to be, or may be, made by regulations. **33. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both House agree in making any modification in the rule or regulation, or both House agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **34. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of this** Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 16 -----
4-Jan-1994
06
The Kalakshetra Foundation Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/1969/1/199406.pdf
central
# THE KALAKSHETRA FOUNDATION ACT, 1993 _______ ARRANGEMENT OF SECTIONS _______ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Declaration of Kalakshetra as an institution of national importance. 3. Definitions. CHAPTER II ACQUISITION AND TRANSFER OF THE ASSETS AND PROPERTIES OF KALAKSHETRA 4. Transfer to, and vesting in, the Central Government of the assets and properties of Kalakshetra. 5. General effect of vesting. 6. Central Government to direct vesting of assets and properties in the Foundation. 7. Duty of persons to deliver and to account for assets, properties, etc. CHAPTER III KALAKSHETRA FOUNDATION 8. Establishment and incorporation of Foundation. 9. The objects of Foundation. 10. Authorities of the Foundation. 11. The Governing Board. 12. Term of office of Members. 13. Meetings of the Governing Board. 14. Governing Board to be the supreme authority of Foundation. 15. Academic Committee. 16. Powers and functions of Academic Committee. 17. Finance Committee. 18. Powers and functions of Finance Committee. 19. Appointment and duties of Director. 20. Transfer of service of existing employees. CHAPTER IV FINANCE, ACCOUNTS AND AUDIT 21. Grants by Central Government to the Foundation. 22. Fund of the Foundation. 23. Budget. 1 ----- SECTIONS 24. Accounts and audit of the Foundation. 25. Duty to furnish returns, annual reports, etc. CHAPTER V MISCELLANEOUS 26. Prior approval of the Central Government for alienation of property. 27. Power of Central Government to give directions to the Foundation. 28. Dissolution of the Foundation. 29. Protection of action taken in good faith. 30. Indemnity. 31. Power to make rules. 32. Power to make regulations. 33. Rules and regulations to be laid before Parliament. 34. Power to remove difficulties. 35. Repeal and saving. THE FIRST SCHEDULE. THE SECOND SCHEDULE. 2 ----- # THE KALAKSHETRA FOUNDATION ACT, 1993 ACT NO. 6 OF 1994 [4th January, 1994.] An Act to declare Kalakshetra of Madras to be an institution of national importance to provide for the establishment and incorporation of a Foundation for its administration, to make provisions for further development of Kalakshetra in accordance with the aims and objects for which Kalakshetra was founded and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **[1. Short title and commencement.—(1) This Act may be called the Kalakshetra Foundation](http://indiankanoon.org/doc/1567089/)** Act, 1993. [(2) It shall be deemed to have come into force on the 29th day of September, 1993.](http://indiankanoon.org/doc/71758/) **[2. Declaration of Kalakshetra as an institution of national importance.—Whereas the objects of](http://indiankanoon.org/doc/624428/)** the institution known as Kalakshetra at Adyar, Madras in the State of Tamil Nadu, founded by the late Thirumathi Rukmini Devi Arundale, are such as to make the institution one of national importance, it is hereby declared that the institution known as Kalakshetra is an institution of national importance. **[3. Definitions.—In this Act, unless the context otherwise requires,—](http://indiankanoon.org/doc/1529745/)** [(a) “Academic Committee” means the Academic Committee constituted under section 15;](http://indiankanoon.org/doc/997373/) [(b) “appointed day” means the date on which the Foundation is established under sub-section (1)](http://indiankanoon.org/doc/1205585/) of section 8; [(c) “Board of Trustees” means the Board of Trustees managing the affairs of Kalakshetra under](http://indiankanoon.org/doc/1589632/) the „scheme writ‟ approved by the Madras High Court in petition No. 716 of 1985; [(d) “constituent units” means the units of Kalakshetra specified in the First Schedule;](http://indiankanoon.org/doc/844325/) [(e) “Director” means the Director appointed under sub-section (1) of section 19;](http://indiankanoon.org/doc/1030590/) [(f) “Finance Committee” means the Finance Committee constituted under sub-section (1) of](http://indiankanoon.org/doc/1981668/) section 17; [(g) “Foundation” means the Kalakshetra Foundation established under sub-section (1) of](http://indiankanoon.org/doc/788968/) section 8; [(h) “Fund” means the Fund of the Foundation referred to in section 22;](http://indiankanoon.org/doc/1349311/) [(i) “Governing Board” means the Governing Board constituted under section 11;](http://indiankanoon.org/doc/654442/) [(j) “Kalakshetra” means the institution known as Kalakshetra founded by the late Thirumathi](http://indiankanoon.org/doc/740824/) Rukmini Devi Arundale, situated at Adyar, Madras, and includes its constituent units; [(k) “notification” means a notification published in the Official Gazette;](http://indiankanoon.org/doc/618407/) [(l) “Member” means a Member of the Governing Board and includes the Chairperson thereof;](http://indiankanoon.org/doc/585188/) [(m) “prescribed” means prescribed by rules made under this Act;](http://indiankanoon.org/doc/1718877/) [(n) “regulations” means regulations made under section 32;](http://indiankanoon.org/doc/268035/) [(o) “Schedule” means a Schedule annexed to this Act;](http://indiankanoon.org/doc/757461/) [(p) “State Government” means the Government of Tamil Nadu.](http://indiankanoon.org/doc/1525252/) 3 ----- CHAPTER II ACQUISITION AND TRANSFER OF THE ASSETS AND PROPERTIES OF KALAKSHETRA **[4. Transfer to, and vesting in, the Central Government of the assets and properties of](http://indiankanoon.org/doc/665080/)** **Kalakshetra.—On the commencement of this Act, the right, title and interest in relation to the assets and** properties of Kalakshetra specified in the Second Schedule and vested in the Board of Trustees or any other body, in whatever capacity, shall Stand transferred to, and vest in, the Central Government. **[5. General effect of vesting.—(1) The right, title and interest vested in the Central Government under](http://indiankanoon.org/doc/449871/)** section 4 shall be deemed to include all the assets, rights, leaseholds, powers, authorities, licences and privileges; all property (movable and immovable) including lands and buildings; musical instruments; equipments used in teaching, training and staging of performing arts; tools and facilities used in arts and crafts; costumes and decorative items; books; stationery, furniture and other equipments used in libraries and laboratories; works of art and artefacts; stores, automobiles and other vehicles; workshops; cash balances, funds including reserve funds, investments and all other rights and interests arising out of such assets and properties as were immediately before the commencement of this Act in the possession ownership, power or control of the Board of Trustees or any other body, in whatever capacity, and all books of account, registers, maps, plans and all other documents of whatever nature relating thereto. [(2) All assets and properties as aforesaid which have vested in the Central Government under section 4](http://indiankanoon.org/doc/1294043/) shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting them or of any attachment, injunction, decree or order of any court or other authority restricting the use of such assets or properties in any manner, or appointing any receiver in respect of the whole or any part of such assets and properties shall be deemed to have been withdrawn. [(3) Any licence, permission, authority, concession, facility, privilege, affiliation or any other](http://indiankanoon.org/doc/1683563/) instrument of similar nature granted to the Board of Trustees or any other body, in whatever capacity, in relation to the assets and properties of Kalakshetra or any of its constituent units which has vested in the Central Government under section 4, at any time before the commencement of this Act and in force immediately before such commencement, shall continue to be in force on and after such commencement in accordance with its tenor in relation to, and for purposes of, such assets and properties, or where the direction under section 6 has been issued, the Foundation shall be deemed to be substituted in such licence, permission, authority, concession, facility, privilege affiliation or other instrument, as if it had been granted to the Foundation and the Foundation shall hold it for the remainder of the period for which the Board of Trustees or any other body, in whatever capacity, would have held it under the terms thereof. [(4) If, on the commencement of this Act, any suit, appeal or other proceeding of whatever nature in](http://indiankanoon.org/doc/575996/) relation to any assets or properties which have vested in the Central Government under section 4, instituted or preferred by the Board of Trustees is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of such transfer and vesting, or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted or enforced, by the Central Government or where the right, title and interest in relation to such assets and properties are directed under section 6 to vest in the Foundation, by the Foundation. **[6. Central](http://indiankanoon.org/doc/20282/)** **Government** **to** **direct** **vesting** **of** **assets** **and** **properties** **in** **the** **[Foundation.—(1) Notwithstanding anything contained in sections 4 and 5, the Central Government shall](http://indiankanoon.org/doc/1100859/)** direct, by notification, that the right, title and interest in relation to the assets and properties of Kalakshetra, which had vested in it under section 4, shall vest in the Foundation on such date, not being a date earlier than the date of commencement of this Act, as may be specified in the notification. [(2) On and from the date of vesting of the right, title and interest in relation to the assets, and](http://indiankanoon.org/doc/1278465/) properties of Kalakshetra in the Foundation under sub-section (1),— [(a) the Foundation shall be deemed to have become the owner of the assets and properties; and](http://indiankanoon.org/doc/1290180/) [(b) the rights and liabilities of the Central Government, in relation to such assets and properties](http://indiankanoon.org/doc/118097/) shall be deemed to have become the rights and liabilities respectively of the Foundation. **[7. Duty of persons to deliver and to account for assets, properties, etc.—(1) On the vesting in the](http://indiankanoon.org/doc/1315732/)** Central Government of the assets and properties of Kalakshetra, all persons in charge of the management 4 ----- of the said assets and properties immediately before the date of such vesting, shall be bound to deliver to the Central Government or to the Foundation or to such person or body of persons as the Central Government or the Foundation may specify in this behalf, all assets, properties, books of account, registers or other, documents in their custody relating to the assets and properties of Kalakshetra. [(2) Every person who has, in his possession or control any assets, properties, books, documents or](http://indiankanoon.org/doc/1893184/) other papers relating to Kalakshetra which have vested in the Central Government or the Foundation under this Act, and which belong to, Kalakshetra or would have so belonged if Kalakshetra had not vested in the Central Government or the Foundation, shall be liable to account for the said assets, properties, books, documents and other papers to the Central Government or the Foundation, as the case may be, and shall deliver them up to the Central Government or the Foundation or to such person or body of persons as the Central Government or the Foundation may specify in this behalf. [(3) The Central Government shall take or cause to be taken all necessary steps for securing possession](http://indiankanoon.org/doc/126786/) of assets and properties of Kalakshetra which have vested in it under section 4. CHAPTER III KALAKSHETRA FOUNDATION **[8. Establishment and incorporation of Foundation.—(1) With effect from such date as the Central](http://indiankanoon.org/doc/1429505/)** Government may, by notification, appoint in this behalf there shall be established a Foundation to be called the Kalakshetra Foundation. [(2) The Foundation shall be a body corporate by the name aforesaid, having perpetual succession and](http://indiankanoon.org/doc/1850298/) a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall by the said name sue and be sued. [(3) The office of the Foundation shall be located at Thiruvanmiyur, Madras.](http://indiankanoon.org/doc/793417/) **[9. The objects of Foundation.—The objects of the Foundation shall be,—](http://indiankanoon.org/doc/113653/)** [(i) to emphasise the essential unity of all true arts;](http://indiankanoon.org/doc/1730288/) [(ii) to work for the recognition of the arts as vital to the individual, national and international](http://indiankanoon.org/doc/1370016/) growth; [(iii) to maintain the highest traditions of art and culture in their pristine purity and in conformity](http://indiankanoon.org/doc/153344/) with traditions; [(iv) to arrange for the training, research, study, teaching and development of art and science,](http://indiankanoon.org/doc/1802647/) music, dance-drama, fine arts, and Bharat-Natyam; and [(v) to ensure that the principles of “education without fear” and “art without vulgarity” are](http://indiankanoon.org/doc/1816322/) adhered to in the activities of the Foundation and not to permit any deviation from these high ideals. **[10. Authorities of the Foundation.—(1) The Foundation shall consist of the following, authorities,](http://indiankanoon.org/doc/660434/)** namely:— [(a) the Governing Board;](http://indiankanoon.org/doc/1412156/) [(b) the Academic Committee; and](http://indiankanoon.org/doc/1338227/) [(c) the Finance Committee.](http://indiankanoon.org/doc/1330752/) [(2) In the discharge of functions and exercise of powers under this Act, the authorities referred to in](http://indiankanoon.org/doc/405724/) sub-section (1) shall be guided by the objects specified in section 9. **[11. The Governing Board.—The Governing Board shall consist of—](http://indiankanoon.org/doc/67042/)** [(a) a Chairperson, who shall be a person of high eminence in public life, to be appointed by the](http://indiankanoon.org/doc/1756947/) Central Government; [(b) not more than twelve Members to be nominated by the Central Government from amongst](http://indiankanoon.org/doc/1751887/) persons who— [(i) have rendered valuable service to Kalakshetra;](http://indiankanoon.org/doc/1692776/) 5 ----- [(ii) have been connected with, or have knowledge of art, culture, folk arts and crafts;](http://indiankanoon.org/doc/1443606/) [(iii) are eminent artistes; and](http://indiankanoon.org/doc/1586762/) [(iv) are patrons of art and culture;](http://indiankanoon.org/doc/366717/) [(c) two persons, possessing one or more of the qualifications referred to in sub-clauses (i) to (iv) of](http://indiankanoon.org/doc/1288606/) clause (b), to be nominated by the State Government; [(d) two officers of the Central Government, not below the rank of a Deputy Secretary, to be](http://indiankanoon.org/doc/1330478/) nominated by that Government, to represent the Ministry of the Central Government dealing with culture, ex officio; [(e) one officer of the State Government, not below the rank of Joint Secretary, to be nominated by](http://indiankanoon.org/doc/1099384/) that Government, to represent the Department of Education of that Government, ex officio; and [(f) the Director, ex officio.](http://indiankanoon.org/doc/1392423/) **[12. Term of office of Members.—(1) The term of office of the Members shall be five years from the](http://indiankanoon.org/doc/1077447/)** date of constitution of the Governing Board. [(2) If a casual vacancy occurs in the office of a Member nominated under clause (b) or clause (c) of](http://indiankanoon.org/doc/1277774/) section 11, whether by reason of his death, resignation or inability to discharge his functions owing to illness or other incapacity, such vacancy shall be filled by making fresh nomination and the Member so nominated shall hold office for the remainder of the term of office of the Member in whose place he is so nominated. [(3) An outgoing, Member shall be eligible for re-nomination.](http://indiankanoon.org/doc/1711506/) [(4) A Member may resign his office by writing under his hand addressed to the Central Government](http://indiankanoon.org/doc/255967/) but shall continue in office until his resignation is accepted by that Government. [(5) The Members nominated under clauses (b) and (c) of section 11, shall be entitled to such](http://indiankanoon.org/doc/422667/) allowances as may be prescribed. **[13. Meetings of Governing Board.—(1) The Governing Board shall meet at least twice in a year at](http://indiankanoon.org/doc/13082/)** Madras at such time as may be fixed by the Chairperson of the Governing Board. [(2) All decisions at the meeting of the Governing Board shall be taken by majority of the Members](http://indiankanoon.org/doc/1444293/) present and voting: Provided that in the case of equality of votes the Chairperson of the Governing Board shall have a casting vote. [(3) The Governing Board shall observe such procedure in regard to the transaction of its business at its](http://indiankanoon.org/doc/1348559/) meetings (including the quorum at its meetings) as may be specified by regulations. [(4) No act or proceeding of the Governing Board shall be invalid merely by reason of—](http://indiankanoon.org/doc/1979406/) [(a) any vacancy in, or any defect in the constitution of, the Governing Board; or](http://indiankanoon.org/doc/325276/) [(b) any defect in the nomination of a person acting as a Member of the Governing Board; or](http://indiankanoon.org/doc/246771/) [(c) any irregularity in the procedure of the Governing Board not affecting the merits of the case.](http://indiankanoon.org/doc/376868/) **[14. Governing Board to be the supreme authority of Foundation.—(1) The Governing Board shall](http://indiankanoon.org/doc/416161/)** be the supreme authority of the Foundation and the general superintendence, direction and management of the affairs of the Foundation shall vest in the Governing Board. [(2) The Governing Board shall exercise such powers and discharge such functions as may be](http://indiankanoon.org/doc/839766/) prescribed. **[15. Academic Committee.—(1) The Academic Committee shall consist of—](http://indiankanoon.org/doc/242474/)** [(a) the Director;](http://indiankanoon.org/doc/1510972/) [(b) the Heads of the constituent units;](http://indiankanoon.org/doc/1083286/) 6 ----- [(c) three distinguished persons in the field of art and culture including dance, music, folk arts and](http://indiankanoon.org/doc/1682360/) crafts, to be nominated by the Central Government; and [(d) one person to be nominated by the State Government, representing the Department of](http://indiankanoon.org/doc/1267299/) Education of that Government. [(2) The tenure of office and other terms and conditions of the members of the Academic Committee](http://indiankanoon.org/doc/1649764/) shall be such as may be specified by regulations. [(3) The Academic Committee shall observe such procedure in regard to the transaction of its business](http://indiankanoon.org/doc/483792/) at its meetings (including the quorum at the meetings) as may be specified by regulations. **[16. Powers and functions of Academic Committee.—The Academic Committee shall be responsible](http://indiankanoon.org/doc/388340/)** for the maintenance of standards of education, training and examination conducted by the constituent units and shall exercise such other powers and perform such other functions as may be assigned to it, from time to time, by the Governing Board. **[17. Finance Committee.—(1) The Finance Committee shall consist of—](http://indiankanoon.org/doc/228561/)** [(a) the Financial Adviser to the Government of India or his nominee in the Ministry of the Central](http://indiankanoon.org/doc/175370/) Government dealing with culture; [(b) an officer of the Central Government, not below the rank of a Deputy Secretary, to be](http://indiankanoon.org/doc/1067976/) nominated by that Government; [(c) an officer of the State Government not below the rank of a Deputy Secretary, to be nominated](http://indiankanoon.org/doc/139729/) by that Government, representing the Department of Finance of that Government; and [(d) the Director.](http://indiankanoon.org/doc/1266233/) [(2) The Finance Committee shall observe such procedure in regard to the transaction of the business at](http://indiankanoon.org/doc/1665299/) its meetings as may be specified by regulations. **[18. Powers and functions of Finance Committee.—The Finance Committee shall—](http://indiankanoon.org/doc/1104652/)** [(i) scrutinise the annual statement of accounts and budget estimates of the Foundation prepared by](http://indiankanoon.org/doc/1193594/) the Director and make recommendations to the Governing Board; [(ii) prescribe the limits of the recurring and non-recurring expenditure of the Foundation for each](http://indiankanoon.org/doc/1923806/) financial year; [(iii) review the financial position of the Foundation from time to time and have an internal audit](http://indiankanoon.org/doc/1272174/) conducted; and [(iv) perform such other functions as may be prescribed.](http://indiankanoon.org/doc/755456/) **[19. Appointment and duties of Director.—(1) The Central Government shall, by notification,](http://indiankanoon.org/doc/77592/)** appoint a Director who shall be the principal executive officer of the Foundation and who shall be responsible for the proper administration of the affairs of the Foundation and its day-to-day management and shall exercise such other powers and perform such other duties as may be assigned to him by the Governing Board. [(2) The Director shall prepare the annual statement of accounts and budget estimates of the](http://indiankanoon.org/doc/32485/) Foundation for scrutiny by the Finance Committee. [(3) The Director shall be a whole time employee of the Foundation and shall be entitled to such salary](http://indiankanoon.org/doc/641236/) and allowances out of the Fund and shall be subject to such conditions of service in respect of leave, pension, provident fund and other matters, as may be prescribed. **[20. Transfer of service of existing employees.—On and from the appointed day, every officer or](http://indiankanoon.org/doc/1817230/)** other employee, employed immediately before the appointed day in connection with the affairs of Kalakshetra shall become an officer or other employee of the Foundation and shall hold office by the same tenure and remuneration and on the same terms and conditions as to pension, gratuity and other matters as he would have held under the Board of Trustees or any other body, in whatever, capacity, if this Act had not been passed and shall continue to do so, unless and until his employment in the Foundation is 7 ----- terminated or until his tenure, remuneration and other terms and conditions are duly altered by the Foundation: Provided that the tenure, remuneration and other terms and conditions of service of any such officer or employee shall not be altered to his disadvantage without the previous approval of the Central Government. CHAPTER IV FINANCE, ACCOUNTS AND AUDIT **[21. Grants by Central Government to the Foundation.—For the purpose of enabling the](http://indiankanoon.org/doc/1830689/)** Foundation to discharge its functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Foundation in each financial year, such sums of money, on such terms and conditions as that Government may determine, by way of grant, loan or otherwise. **[22. Fund of the Foundation.—(1) The Foundation shall have its own Fund; and all sums which may,](http://indiankanoon.org/doc/363485/)** from time to time, be paid to it by the Central Government and all receipts of the Foundation (including any sum to which the State Government or any other authority or person may pay to the Foundation) shall be credited to the Fund and all payments by the Foundation shall be made therefrom. [(2) All moneys belonging to the Fund shall be deposited in such banks or invested in such manner as](http://indiankanoon.org/doc/913094/) may, subject to the approval of the Central Government, be decided by the Governing Board. [(3) The Foundation may spend such sums as it may think fit for performing its functions under this](http://indiankanoon.org/doc/1609631/) Act, and such sums shall be treated as expenditure payable out of the Fund of the Foundation. **[23. Budget.—The Foundation shall prepare, in such form and at such time each year, as may be](http://indiankanoon.org/doc/1419619/)** prescribed, the budget in respect of the financial year next ensuring showing the estimated receipts and expenditure, and copies thereof shall be forwarded to the Central Government. **[24. Accounts and audit of the Foundation.—(1) The Foundation shall maintain proper accounts and](http://indiankanoon.org/doc/1243000/)** other relevant records and prepare an annual statement of accounts including the balance sheet in such form as may be approved by the Comptroller and Auditor-General of India. [(2) The accounts of the Foundation shall be audited by the Comptroller and Auditor-General of India](http://indiankanoon.org/doc/1200093/) and any expenditure incurred by him in connection with such audit shall be payable by the Foundation to the Comptroller and Auditor-General of India. [(3) The Comptroller and Auditor-General of India and any person appointed by him in connection](http://indiankanoon.org/doc/1748783/) with the audit of the accounts of the Foundation shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the office of the Foundation. [(4) The accounts of the Foundation as certified by the Comptroller and Auditor-General of India or](http://indiankanoon.org/doc/1945032/) any person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **[25. Duty to furnish returns, annual reports, etc.—(1) The Foundation shall furnish to the Central](http://indiankanoon.org/doc/1784482/)** Government at such time and in such form and in such manner, as may be prescribed, or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of the objects of the Foundation, as the Central Government may, from time to time, direct. [(2) Without prejudice to the provisions of sub-section (1), the Foundation shall, as soon as possible](http://indiankanoon.org/doc/1992231/) after the end of each financial year, submit to the Central Government an annual report in such form and before such date as may be prescribed, giving a true and full account of its activities and programmes during the previous year. 8 ----- [(3) A copy of the report received under sub-section (2) shall be laid, as soon as may be, after it is](http://indiankanoon.org/doc/1193092/) received, before each House of Parliament. CHAPTER V MISCELLANEOUS **[26. Prior approval of the Central Government for alienation of property.—The Foundation shall](http://indiankanoon.org/doc/1093698/)** not, except with the previous approval of the Central Government, sell or otherwise dispose of any property vested in the Foundation. **[27. Power of Central Government to give directions to the Foundation.—(1) The Central](http://indiankanoon.org/doc/334793/)** Government may, if it is satisfied that it is necessary so to do in the public interest, issue, for reasons to be recorded and communicated to the Foundation, such directions as it thinks fit. [(2) Without prejudice to the generality of the foregoing powers, such directions may include directions](http://indiankanoon.org/doc/1073191/) requiring the Foundation— [(a) to make or amend any regulation within such period as may be specified in the direction; and](http://indiankanoon.org/doc/446890/) [(b) to give priority to the work undertaken or to be undertaken by the Foundation in such manner](http://indiankanoon.org/doc/505773/) as the Central Government may think fit to specify in this behalf. [(3) Any direction issued under this section shall have effect notwithstanding anything contained in any](http://indiankanoon.org/doc/1168552/) law for the time being in force or in the memorandum or regulations of the Kalakshetra Society. **[28. Dissolution of the Foundation.—(1) The Central Government may, by notification and for](http://indiankanoon.org/doc/590882/)** reasons to be specified therein, dissolve, the Foundation from such date and for such period as may be specified in the notification: Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Foundation to make representation against the proposed dissolution. [(2) When the Foundation is dissolved under sub-section (1),—](http://indiankanoon.org/doc/1748733/) [(a) all members of the Governing Board, Academic Committee and the Finance Committee,](http://indiankanoon.org/doc/1149280/) notwithstanding that the terms of their office had not expired, shall, from the date of dissolution, vacate their offices as such members; [(b) all powers and duties of the Governing Board, Academic Committee and the Finance](http://indiankanoon.org/doc/1686400/) Committee shall, during the period of dissolution, be exercised and performed by such person or persons as the Central Government may appoint in this behalf; [(c) all properties and assets vested in the Foundation shall, during the period of dissolution, vest in](http://indiankanoon.org/doc/946702/) the Central Government; and [(d) as soon as the period of dissolution expires, the Foundation shall be reconstituted in](http://indiankanoon.org/doc/783647/) accordance with the provisions of this Act **[29. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall lie](http://indiankanoon.org/doc/341570/)** against the Central Government or any officer of that Government or the Foundation or Member or Director or any officer of the Foundation for anything which is in good faith done or intended to be done under this Act. **[30. Indemnity.—Every Member of the Governing Board, Academic Committee and the Finance](http://indiankanoon.org/doc/1603292/)** Committee and the Director of the Foundation shall be indemnified by the Foundation against all losses and expenses incurred by them in relation to the discharge of their duties, except such as are caused by their wilful act or default. **[31. Power to make rules.—(1) The Central Government may, by notification, make rules for carrying](http://indiankanoon.org/doc/286751/)** out the provisions of this Act. [(2) In particular, and without prejudice to the generality of the foregoing power, such rules may](http://indiankanoon.org/doc/1205028/) provide for all or any of the following matters, namely:— [(a) the allowances to the Members under sub-section (5) of section 12;](http://indiankanoon.org/doc/132681/) 9 ----- [(b) the powers which the Governing Board shall exercise and the functions which it shall](http://indiankanoon.org/doc/270207/) discharge under sub-section (2) of section 14; [(c) functions to be performed by the Finance Committee, under clause (iv) of section 18;](http://indiankanoon.org/doc/1995738/) [(d) the salary and allowances and other terms and conditions of service of the Director under](http://indiankanoon.org/doc/1719870/) sub-section (3) of section 19; [(e) the form and the manner in which the budget is to be prepared by the Governing Board under](http://indiankanoon.org/doc/1985830/) section 23; [(f) the form and the manner in which, and the time at which, the returns, statements and the annual](http://indiankanoon.org/doc/49368/) report shall be prepared under section 25; [(g) any other matter which has to be, or may be, prescribed.](http://indiankanoon.org/doc/1390331/) **[32. Power to make regulations.—(1) The Foundation may make regulations, not inconsistent this](http://indiankanoon.org/doc/1688584/)** Act and the rules made thereunder, for enabling it to discharge its functions under this Act: [(2) Without prejudice to the generality of the foregoing power, such regulations may provide for all or](http://indiankanoon.org/doc/793942/) any of the following matters, namely:— [(a) the management of the properties and funds, affairs and works of the Foundation;](http://indiankanoon.org/doc/1377580/) [(b) the procedure in regard to transaction of business of the Governing Board and the Academic](http://indiankanoon.org/doc/1809095/) Committee (including quorum at their meetings) and the transaction of business of the Finance Committee under sub-section (3) of section 13, sub-section (3) of section 15 and sub-section (2) of section 17; [(c) creation or abolition of posts and the procedure for appointment of the professional,](http://indiankanoon.org/doc/1441206/) administrative and ministerial staff; [(d) the tenure of office and other terms and conditions of the members of the Academic](http://indiankanoon.org/doc/1815145/) Committee under sub-section (2) of section 15; and [(e) the maintenance of accounts, registers and other records of the Foundation.](http://indiankanoon.org/doc/1718662/) [(3) No regulation made by the Foundation shall have effect until it has been approved by the Central](http://indiankanoon.org/doc/368833/) Government and published in the Official Gazette, and the Central Government, in approving the regulation, may make changes therein which appear to it to be necessary. **[33. Rules and regulations to be laid before Parliament.—Every rule and every regulation made](http://indiankanoon.org/doc/268877/)** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, or both Houses agree that the rule or regulation, should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **[34. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of this](http://indiankanoon.org/doc/979982/)** Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years, from the commencement of this Act. [(2) Every order made under this section shall be laid as soon as may be after it is made, before each](http://indiankanoon.org/doc/1899920/) House of Parliament. 10 ----- **[35. Repeal and saving.—(1) The Kalakshetra Foundation Ordinance, 1993 (Ord. 31 of 1993) is](http://indiankanoon.org/doc/631215/)** hereby repealed. [(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed,](http://indiankanoon.org/doc/1645251/) shall be deemed to have been done or taken under the corresponding provisions of this Act. 11 ----- THE FIRST SCHEDULE [See clause (d) of section 3] 1. Kalakshetra College of Fine Arts. 2. Craft Education and Research Centre consisting of:— (i) a Weaving Department, and (ii) a Kalamkari unit. 3. Besant Arundale Theosophical Senior Secondary School. 4. Besant Theosophical High School. 5. Besant Cultural Centre Hostel. 12 ----- Paimash No. Sl. No. Document No. THE SECOND SCHEDULE (See section 4) **PART A** Date Village Taluk District Survey No. Extent 0-3-8 1-8-4 1-11-12 Cawnies 1. 1541 16-8-49 Thiruvan miyur Saidapet Chinglepet .. 1225/A 1228 2. 1542 16-8-49 Do. Do. Do. .. 1227/E 0-9-0 0-75 3. 1545 16-8-49 Do. Do. Do. .. .. 0-3-12 0-6-2 Cawmies Cents 4. 768 12-5-54 Do. Do. Do. .. 1219 1224 (In rectification of Sl. No. 3) 5. 1544 16-8-49 Do. Do. Do. .. 947-C 1226-C 1226-D 6. 1605 25-8-49 Do. Do. Do. .. 1228B 1226A 1226C/1 0-3-12 0-6-2 0-11-0 0-6-0 0-12-0 1-13-0 0-6-10 Cawnies 0-55 Cents 7. 1960 13-10-49 Do. Do. Do. .. 1227/D 0-3-12 Cawnies 8. 1984 15-10-49 Do. Do. Do. .. 1227/F 0-5-8 Cawnies 9. 1324 26-1 1-49 Do. Do. Do. O.S. No.327 R.S. No. 528 House and 1491 Sq. ft. Ground No. 18, Andiappa Gramani Street, Royapuram -13. 10. 1324 26-11-49 Do. Do. Do. .. 1229/C 0-10-0 Cawnies =1 acre 14 Cents 11. 2752 11-12-50 Do. Do. Do. .. 1219/A-3 1224/D 0-3-12 Cawnies 55 Cents 12. 2759 21-12-50 Do. Do. Do. .. 1219 0-3-12 Cawnies =50 Cents 13 ----- SI. No. Document No. Date Village Taluk District Survery No. Paimash No. Extent 13. 1865 2-9-52 Thiruvan miyur Saidapet Chinglepet .. 1228 0-3-8 1-8-4 1-11-12 =1 acre 98 cents 14. 621 27-3-59 Do. Do. Do. .. 973-B 0-7-0 972 5-7-0 961-C/1 0-3-4 962-L 0-9-10 964 2-5-2 9-0-0 Cawnies =12 acres 15. 769 12-5-54 Do. Do. Do. .. 1219 1224 50 Cents 16. 22068 24-8-56 Do. Do. Do. .. 979-C 1-1 1-14 Cawnies 17. 2151 3-9-56 Do. Do. Do. .. 974/A 2-0-0 Cawnies =2 acres 66 cents 18. 863 April, 1960 Do. Do. Do. 158/1 170/1 170/3 14 882-B 882-D 886-D 957-A 958-A 963-A 964 886-C 964Part 964Part 975C Part 975J 973A 973A 1 973A 2 975C Part 975G 975H 975-I 975M 975G 975H 2 975K 21 acres 6 cents ----- Date Village Taluk District Survey No. Paimash No. Extent SI. Document Date Village No. No. 19. 291 6-2-63 Thiruvan -miyur Saidate Chinglepet 166/2 957-B 962 963-B 966 968-C 20. 754 22-3-63 Do. Do. Do. 161/2 857 882-C (Part) 877-A 940 941 942 955-A 965 961 H 22 acres approximately 27 acres 74 cents approximately 4 grounds 1988 Sq. ft. 21. 1481 April, 1968 Do. Do. Do. 178/3(Part) 178/8 22. 1482 April, 1968 Do. Do. Do. 178/3 178/8 1212 4 grounds 1214 1988 Sq. ft. 1184 1185 1220 Do. 8 grounds 96 Sq. ft. All the buildings on the above lands, institutions, all assets whatsoever including Bank balances and cash of the Kalakshetra. **PART B** Sl. No. Document No. Date Village Taluk District Survey No. Paimash No. 1. 448 1881 Thiruvan miyur Saidapet Chinglepet .. 977,1212,1213,1214, 1215,1216,1217, 1218, 1219 and 1221 Extent 15-7-4 Cawnies 2. 1224 1908 Do. Do. Do. .. 968C 2-0-8 Cawnies 3. 2382 1913 Do. Do. Do. .. 967, 968C 2-0-8 Cawnies 4. 2559 1913 Do. Do. Do. .. 967, 968 2-0-8 Cawnies 5. 4544 1919 Do. Do. Do. .. 532D, 533, 534 3-7-8 Cawnies 6. 2642 1920 Do. Do. Do. .. 967, 968, 968C 4-1-0 Cawnies 7. 1325 1927 Do Do Do .. 533, 534, 532 3-7-8 Cawnies 8. 1966 1940 Do. Do. Do. .. 976A, 971B 2-2-0 Cawnies 9. 2056 1941 Do. Do. Do. .. 984 0-4-6 Cawnies 10. 2194 1941 Do. Do. Do. .. 984 0-4-6 Cawnies 11. 532 1943 Do. Do. Do. .. 976A, 971B 2-2-0 Cawnies 15 ----- Sl. No. Document No. Year Village Taluk District Survey No. Paimash No. Extent 12. 1471 1943 Thiruvan miyur Saidapet Chinglepet .. 976A, 971B 6-2-0 Cawnies 13. 1380 1937 Do. Do. Do. .. 191 1-4-0 Cawnies 14. 1381 1937 Do. Do. Do. .. 191 1-4-0 Cawnies 15. 1032 1945 Do. Do. Do. .. 532, 534 3-7-8 Cawnies 16. 1744 1929 (Parent document of Item 15) 17. 1134 1945 Do. Do. Do. .. 984, 984 0-4-6 0-4-6 Cawnies Cawnies 18. 1224 1945 Do. Do. Do. .. 971B, 976A 6-2-0 Cawnies 19. 1268 1945 Do. Do. Do. .. 970B, 970D 2-8-0 Cawnies 20. 1598 1945 Do. Do. Do. .. 967, 968, 978C 4-1-0 Cawnies 21. 1941 1945 Do. Do. Do. .. 1226 A/J 1226 B/J 0-5-15 Cawnies 22. 1942 1945 Do. Do. Do. .. 1226 B/2 0-15-13 Cawnies 23. 1988 1945 Do. Do. Do. .. 976B, 979A 2-6-0 Cawnies 24. 353 1947 Do. Do. Do. .. 976A/ 1 3-0-0 Cawnies 25. 2275 1947 Do. Do. Do. O.S. No.267 268 269 270 0-0-12 270A 271 278 279 1226, 1226A, 1226B, 967, 968A, 968C, 970B, 970D, 971B, 976A, 532D, 533, 979A. 16 0-5-12 0-15-6 3-10-2 0 -0-12 2-4-0 1-4-0 1-4-0 1-4-0 1-0-0 4-15-0 1-0-0 0-3-0 0-5-13 0-5-9 0-0-6 1-10-4 0-5-10 2-0-8 0-1-12 2-1-10 2-9-0 0-2-0 2-4-0 ----- Sl. No Document No. Year Village Taluk District Survey No. Paimash No. 26. 3776 1947 Thiruvan miyur. Saidapet Chinglepet .. 1214A,1217A, 1218A,1218B, 1221,1213, 1215,1216, 1221. Extent 3-9-6 Cawnies 6-6-10 Cawnies 1212, 1213, 27. 3777 1947 Do. Do. Do. .. 1215,1216, 1214A,1217, 1218A, 1219B. 6-6-10 3-9-6 1,397 Sq.ft. Cawnies Cawnies 28. Sowcarpet, Registration District of Madras North Madras, Madras Do. (O.S. No.695, House No. 742) 10168/2 2/500 and 10170 Mint Street, P. T. Ms. Do. (O.S. No. 2506) R. S. No. 3376 House No.117, 1,331 Sq.ft. Lingi Chetty St., G. T. Ms. 29. 1606 1950 Thiruvanmiyur Saidapet Do. .. 1214, 1217, 1218,1219B 30. 909 1961 Do. Do. Do. .. 500 500 2-9-0 Cawnies 0-8-0 Cawnies 3 Grounds 1, 270 Sq.ft. All the buildings on the above lands, institutions, and all the assets whatsoever including Bank balances and cash of the Kalakshetra and Besant Centenary Trust/ Hostel in the City of Madras. 17 -----
8-Jan-1994
10
The Protection of Human Rights Act, 1993
https://www.indiacode.nic.in/bitstream/123456789/15709/1/A1994____10.pdf
central
# THE PROTECTION OF HUMAN RIGHTS ACT, 1993 _________ ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II THE NATIONAL HUMAN RIGHTS COMMISSION 3. Constitution of a National Human Rights Commission. 4. Appointment of Chairperson and other Members. 5. Resignation and removal of Chairperson and Members. 6. Term of office of Chairperson and Members. 7. Member to act as Chairperson or to discharge his functions in certain circumstances. 8. Terms and conditions of service of Chairperson and Members. 9. Vacancies, etc., not to invalidate the proceedings of the Commission. 10. Procedure to be regulated by the Commission. 11. Officers and other staff of the Commission. CHAPTER III FUNCTIONS AND POWERS OF THE COMMISSION 12. Functions of the Commission. 13. Powers relating to inquiries. 14. Investigation. 15. Statement made by persons to the Commission. 16. Persons likely to be prejudicially affected to be heard. CHAPTER IV PROCEDURE 17. Inquiry into complaints. 18. Steps during and after inquiry. 19. Procedure with respect to armed forces. 20. Annual and special reports of the Commission. CHAPTER V STATE HUMAN RIGHTS COMMISSIONS 21. Constitution of State Human Rights Commissions. 22. Appointment of Chairperson and other Members of State Commission. 23. Resignation and Removal of a Chairperson or a Member of the State Commission. 24. Term of office of Chairperson and Members of the State Commission. 1 ----- SECTIONS 25. Member to act as Chairperson or to discharge his functions in certain circumstances. 26. Terms and conditions of service of Chairperson and Members of State Commission. 27. Officers and other staff of the State Commission. 28. Annual and special reports of State Commission. 29. Application of certain provisions relating to National Human Rights Commission to State Commissions. CHAPTER VI HUMAN RIGHTS COURTS 30. Human Rights Courts. 31. Special Public Prosecutor. CHAPTER VII FINANCE, ACCOUNTS AND AUDIT 32. Grants by the Central Government. 33. Grants by the State Government. 34. Accounts and audit. 35. Accounts and audit of State Commission. CHAPTER VIII MISCELLANEOUS 36. Matters not subject to jurisdiction of the Commission. 37. Constitution of special investigation teams. 38. Protection of action taken in good faith. 39. Members and officers to be public servants. 40. Power of Central Government to make rules. 40A. Power to make rules retrospectively. 40B. Power of Commission to make regulations. 41. Power of State Government to make rules. 42. Power to remove difficulties. 43. Repeal and savings. 2 ----- # THE PROTECTION OF HUMAN RIGHTS ACT, 1993 ACT NO. 10 OF 1994 [8th January, 1994.] # An Act to provide for the constitution of a National Human Rights Commission, State Human Rights Commissions in States and Human Rights Courts for better protection of human rights and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Protection of Human** Rights Act, 1993. (2) It extends to the whole of India: 1* - - - (3) It shall be deemed to have come into force on the 28th day of September, 1993. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “armed forces” means the naval, military and air forces and includes any other armed forces of the Union; (b) “Chairperson” means the Chairperson of the Commission or of the State Commission, as the case may be; 2[(ba) “Chief Commissioner” means the Chief Commissioner for Persons with Disabilities referred to in sub-section (1) of section 74 of the Rights of Persons with Disabilities Act, 2016 (49 of 2016);] (c) “Commission” means the National Human Rights Commission constituted under section 3; (d) “Human Rights” means the rights relating to life, liberty, equality and dignity of the individual guaranteed by the Constitution or embodied in the International Covenants and enforceable by courts in India; (e) “Human Rights Court” means the Human Rights Court specified under section 30; 3[(f) “International Covenants” means the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights adopted by the General Assembly of the United Nations on the 16th December, 1966 and such other Covenant or Convention adopted by the General Assembly of the United Nations as the Central Government may, by notification, specify;] 4[(g) “Member” means a Member of the Commission or of the State Commission, as the case may be;] 2[(ga) “National Commission for Backward Classes” means the National Commission for Backward Classes constituted under section 3 of the National Commission for Backward Classes Act, 1993 (27 of 1993);] (h) “National Commission for Minorities” means the National Commission for Minorities constituted under section 3 of the National Commission for Minorities Act, 1992 (19 of 1992); 1. The proviso omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 2. Ins. by Act 19 of 2019, s. 2 (w.e.f. 2-8-2019). 3. Subs. by Act 43 of 2006, s. 2, for clause (f) (w.e.f. 23-11-2006). 4. Subs. by s. 2, ibid., for clause (g) (w.e.f. 23-11-2006). 3 ----- 1[(ha) “National Commission for Protection of Child Rights” means the National Commission for Protection of Child Rights constituted under section 3 of the Commissions for Protection of Child Rights Act, 2005 (4 of 2006);] 2[(i) “National Commission for the Scheduled Castes” means the National Commission for the Scheduled Castes referred to in article 338 of the Constitution; [(ia) “National Commission for the Scheduled Tribes” means the National Commission for the](http://indiankanoon.org/doc/281913/) Scheduled Tribes referred to in article 338A of the Constitution;] (j) “National Commission for Women” means the National Commission for Women constituted under section 3 of the National Commission for Women Act, 1990 (20 of 1990); (k) “notification” means a notification published in the Official Gazette; (l) “prescribed” means prescribed by rules made under this Act; (m) “public servant” shall have the meaning assigned to it in section 21 of the Indian Penal Code (45 of 1860); (n) “State Commission” means a State Human Rights Commission constituted under section 21. (2) Any reference in this Act to a law, which is not in force in the State of Jammu and Kashmir, shall, in relation to that State, be construed as a reference to a corresponding law, if any, in force in that State. **STATE AMENDMENT** **Ladakh (UT).—** Section 2.—Omit sub-section (2). [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] CHAPTER II THE NATIONAL HUMAN RIGHTS COMMISSION **3. Constitution of a National Human Rights Commission.—(1) The Central Government shall** constitute a body to be known as the National Human Rights Commission to exercise the powers conferred upon, and to perform the functions assigned to, it under this Act. (2) The Commission shall consist of— (a) a Chairperson who has been a [3][Chief Justice of India or a Judge] of the Supreme Court; (b) one Member who is, or has been, a Judge of the Supreme Court; (c) one Member who is, or has been, the Chief Justice of a High Court; (d) [4][three Members out of which at least one shall be a woman] to be appointed from amongst persons having knowledge of, or practical experience in, matters relating to human rights. (3) The Chairpersons of the [5][the National Commission for Backward Classes, the National Commission for Minorities, the National Commission for Protection of Child Rights], [6][the National Commission for the Scheduled Castes, the National Commission for the Scheduled Tribes] and the [7][the National Commission for Women and the Chief Commissioner for Persons with Disabilities] shall be deemed to be Members of the Commission for the discharge of functions specified in clauses (b) to (j) of section 12. 1. Ins. by Act 19 of 2019, s. 2 (w.e.f. 2-8-2019). 2. Subs. by Act 43 of 2006, s. 2, for clause (i) (w.e.f. 23-11-2006). 3. Subs. by Act 19 of 2019, s. 3, for “Chief Justice” (w.e.f. 2-8-2019). 4. Subs. by s. 3, ibid., for “two Members” (w.e.f. 2-8-2019). 5. Subs. by s. 3, ibid., for “National Commission for Minorities” (w.e.f. 2-8-2019). 6. Subs. by Act 43 of 2006, s. 3, for “the National Commission for the Scheduled Castes and Scheduled Tribes” (w.e.f. 23-11-2006). 7. Subs. by Act 19 of 2019, s. 3, for “National Commission for Women” (w.e.f. 2-8-2019). 4 ----- (4) There shall be a Secretary-General who shall be the Chief Executive Officer of the Commission and [1][shall, subject to control of the Chairperson, exercise all administrative and financial powers (except judicial functions and the power to make regulations under section 40B)]. (5) The headquarters of the Commission shall be at Delhi and the Commission may, with the previous approval of the Central Government, establish offices at other places in India. **4. Appointment of Chairperson and other Members.—(1) The Chairperson and [2][the Members]** shall be appointed by the President by warrant under his hand and seal: Provided that every appointment under this sub-section shall be made after obtaining the recommendations of a Committee consisting of— (a) the Prime Minister **—chairperson;** (b) Speaker of the House of the People **—member;** (c) Minister in-charge of the Ministry of Home Affairs in the Government of India (d) Leader of the Opposition in the House of the People (e) Leader of the Opposition in the Council of States **—member;** **—member;** **—member;** (f) Deputy Chairman of the Council of States **—member:** Provided further that no sitting Judge of the Supreme Court or sitting Chief Justice of a High Court shall be appointed except after consultation with the Chief Justice of India. (2) No appointment of a Chairperson or a Member shall be invalid merely by reason of any 3[vacancy of any member in the Committee referred to in the first proviso to sub-section (1)]. **4[5. Resignation and removal of Chairperson and Members.—(1)** The Chairperson or any Member may, by notice in writing under his hand addressed to the President of India, resign his office. (2) Subject to the provisions of sub-section (3), the Chairperson or any Member shall only be removed from his office by order of the President of India on the ground of proved misbehaviour or incapacity after the Supreme Court, on reference being made to it by the President, has, on inquiry held in accordance with the procedure prescribed in that behalf by the Supreme Court, reported that the Chairperson or the Member, as the case may be, ought on any such ground to be removed. [(3) Notwithstanding anything in sub-section (2), the President may, by order, remove from office the](http://indiankanoon.org/doc/189892/) Chairperson or any Member if the Chairperson or such Member, as the case may be,— (a) is adjudged an insolvent; or (b) engages during his term of office in any paid employment outside the duties of his office; or (c) is unfit to continue in office by reason of infirmity of mind or body; or (d) is of unsound mind and stands so declared by a competent court; or [(e) is convicted and sentenced to imprisonment for an offence which in the opinion of the](http://indiankanoon.org/doc/1575989/) President involves moral turpitude.] 1. Subs. by Act 19 of 2019, s. 3, for certain words (w.e.f. 2-8-2019). 2. Subs. by Act 43 of 2006, s. 4, for “other Members” (w.e.f. 23-11-2006). 3. Subs. by s. 4, ibid., for “vacancy in the Committee” (w.e.f. 23-11-2006). 4. Subs. by s. 5, ibid., for section 5 (w.e.f. 23-11-2006). 5 ----- **1[6. Term of office of Chairperson and Members.—(1) A person appointed as Chairperson shall** hold office for a term of [2][three years] from the date on which he enters upon his office or until he attains the age of seventy years, whichever is earlier [3][and shall be eligible for re-appointment]. (2) A person appointed as a Member shall hold office for a term of [2][three years] from the date on which he enters upon his office and shall be eligible for re-appointment [4]***: Provided that no Member shall hold office after he has attained the age of seventy years. (3) On ceasing to hold office, a Chairperson or a Member shall be ineligible for further employment under the Government of India or under the Government of any State.] **7. Member to act as Chairperson or to discharge his functions in certain circumstances.—(1) In** the event of the occurrence of any vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the President may, by notification, authorise one of the Members to act as the Chairperson until the appointment of a new Chairperson to fill such vacancy. (2) When the Chairperson is unable to discharge his functions owing to absence on leave or otherwise, such one of the Members as the President may, by notification, authorise in this behalf, shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties. **5[8. Terms and conditions of service of Chairperson and Members.—The salaries and allowances** payable to, and the other terms and conditions of service of, the Chairperson and Members shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson or a Member shall be varied to his disadvantage after his appointment.] **9. Vacancies, etc., not to invalidate the proceedings of the Commission.—No act or** proceedings of the Commission shall be questioned or shall be invalidated merely on the ground of existence of any vacancy or defect in the constitution of the Commission. **10. Procedure to be regulated by the Commission.—(1) The Commission shall meet at such** time and place as the Chairperson may think fit. 6[(2) Subject to the provisions of this Act and the rules made thereunder, the Commission shall have the power to lay down by regulations its own procedure.] (3) All orders and decisions of the Commission shall be authenticated by the Secretary-General or any other officer of the Commission duly authorised by the Chairperson in this behalf. **11. Officers and other staff of the Commission.—(1) The Central Government shall make** available to the Commission— (a) an officer of the rank of the Secretary to the Government of India who shall be the Secretary-General of the Commission; and (b) such police and investigative staff under an officer not below the rank of a Director General of Police and such other officers and staff as may be necessary for the efficient performance of the functions of the Commission. (2) Subject to such rules as may be made by the Central Government in this behalf, the Commission may appoint such other administrative, technical and scientific staff as it may consider necessary. 1. Subs. by Act 43 of 2006 s. 6, for section 6 (w.e.f. 23-11-2006). 2. Subs. by Act 19 of 2019, s. 4, for “five years” (w.e.f. 2-8-2019). 3. Ins. by s. 4, ibid (w.e.f. 2-8-2019). 4. The words “for another term of five years” omitted by Act 19 of 2019, s. 4 (w.e.f. 2-8-2019). 5. Subs. by Act 43 of 2006, s. 7, for section (8) (w.e.f. 23-11-2006). 6. Subs. by s. 8, ibid., for sub-section (2) (w.e.f. 23-11-2006). 6 ----- (3) The salaries, allowances and conditions of service of the officers and other staff appointed under sub-section (2) shall be such as may be prescribed. CHAPTER III FUNCTIONS AND POWERS OF THE COMMISSION **12. Functions of the Commission.—The Commission shall perform all or any of the following** functions, namely:— (a) inquire, suo motu or on a petition presented to it by a victim or any person on his behalf [1][or on a direction or order of any court], into complaint of— (i) violation of human rights or abetment thereof; or (ii) negligence in the prevention of such violation, by a public servant; (b) intervene in any proceeding involving any allegation of violation of human rights pending before a court with the approval of such court; 2[(c) visit, notwithstanding anything contained in any other law for the time being in force, any jail or other institution under the control of the State Government, where persons are detained or lodged for purposes of treatment, reformation or protection, for the study of the living conditions of the inmates thereof and make recommendations thereon to the Government;] (d) review the safeguards provided by or under the Constitution or any law for the time being in force for the protection of human rights and recommend measures for their effective implementation; (e) review the factors, including acts of terrorism, that inhibit the enjoyment of human rights and recommend appropriate remedial measures; (f) study treaties and other international instruments on human rights and make recommendations for their effective implementation; (g) undertake and promote research in the field of human rights; (h) spread human rights literacy among various sections of society and promote awareness of the safeguards available for the protection of these rights through publications, the media, seminars and other available means; (i) encourage the efforts of non-governmental organisations and institutions working in the field of human rights; (j) such other functions as it may consider necessary for the promotion of human rights. **13. Powers relating to inquiries.—(1) The Commission shall, while inquiring into complaints** under this Act, have all the powers of a civil court trying a suit under the Code of Civil Procedure, 1908 (5 of 1908), and in particular in respect of the following matters, namely:— (a) summoning and enforcing the attendance of witnesses and examining them on oath; (b) discovery and production of any document; (c) receiving evidence on affidavits; (d) requisitioning any public record or copy thereof from any court or office; (e) issuing commissions for the examination of witnesses or documents; (f) any other matter which may be prescribed. (2) The Commission shall have power to require any person, subject to any privilege which may be claimed by that person under any law for the time being in force, to furnish information on such points or 1. Ins. by Act 43 of 2006, s. 9 (w.e.f. 23-11-2006). 2. Subs. by s. 9, ibid., for clause (c) (w.e.f. 23-11-2006). 7 ----- matters as, in the opinion of the Commission, may be useful for, or relevant to, the subject matter of the inquiry and any person so required shall be deemed to be legally bound to furnish such information within the meaning of section 176 and section 177 of the Indian Penal Code (45 of 1860). (3) The Commission or any other officer, not below the rank of a Gazetted Officer, specially authorised in this behalf by the Commission may enter any building or place where the Commission has reason to believe that any document relating to the subject matter of the inquiry may be found, and may seize any such document or take extracts or copies therefrom subject to the provisions of section 100 of the Code of Criminal Procedure, 1973 (2 of 1974), in so far as it may be applicable. (4) The Commission shall be deemed to be a civil court and when any offence as is described in section 175, section 178, section 179, section 180 or section 228 of the Indian Penal Code (45 of 1860) is committed in the view or presence of the Commission, the Commission may, after recording the facts constituting the offence and the statement of the accused as provided for in the Code of Criminal Procedure, 1973 (2 of 1974), forward the case to a Magistrate having jurisdiction to try the same and the Magistrate to whom any such case is forwarded shall proceed to hear the complaint against the accused as if the case has been forwarded to him under section 346 of the Code of Criminal Procedure, 1973. (5) Every proceeding before the Commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860), and the Commission shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 1[(6) Where the Commission considers it necessary or expedient so to do, it may, by order, transfer any complaint filed or pending before it to the State Commission of the State from which the complaint arises, for disposal in accordance with the provisions of this Act: Provided that no such complaint shall be transferred unless the same is one respecting which the State Commission has jurisdiction to entertain the same. [(7) Every complaint transferred under sub-section (6) shall be dealt with and disposed of by the State](http://indiankanoon.org/doc/52769/) Commission as if it were a complaint initially filed before it.] **14. Investigation.—(1) The Commission may, for the purpose of conducting any investigation** pertaining to the inquiry, utilise the services of any officer or investigation agency of the Central Government or any State Government with the concurrence of the Central Government or the State Government, as the case may be. (2) For the purpose of investigating into any matter pertaining to the inquiry, any officer or agency whose services are utilised under sub-section (1) may, subject to the direction and control of the Commission,— (a) summon and enforce the attendance of any person and examine him; (b) require the discovery and production of any document; and (c) requisition any public record or copy thereof from any office. (3) The provisions of section 15 shall apply in relation to any statement made by a person before any officer or agency whose services are utilised under sub-section (1) as they apply in relation to any statement made by a person in the course of giving evidence before the Commission. (4) The officer or agency whose services are utilised under sub-section (1) shall investigate into any matter pertaining to the inquiry and submit a report thereon to the Commission within such period as may be specified by the Commission in this behalf. (5) The Commission shall satisfy itself about the correctness of the facts stated and the conclusion, if any, arrived at in the report submitted to it under sub-section (4) and for this purpose the 1. Ins. by Act 43 of 2006, s.10 (w.e.f. 23-11-2006). 8 ----- Commission may make such inquiry (including the examination of the person or persons who conducted or assisted in the investigation) as it thinks fit. **15. Statement made by persons to the Commission.—No statement made by a person in the** course of giving evidence before the Commission shall subject him to, or be used against him in, any civil or criminal proceeding except a prosecution for giving false evidence by such statement: Provided that the statement— (a) is made in reply to the question which he is required by the Commission to answer; or (b) is relevant to the subject matter of the inquiry. **16. Persons likely to be prejudicially affected to be heard.—If, at any stage of the inquiry, the** Commission— (a) considers it necessary to inquire into the conduct of any person; or (b) is of the opinion that the reputation of any person is likely to be prejudicially affected by the inquiry, it shall give to that person a reasonable opportunity of being heard in the inquiry and to produce evidence in his defence: Provided that nothing in this section shall apply where the credit of a witness is being impeached. CHAPTER IV PROCEDURE **17. Inquiry into complaints.—The Commission while inquiring into the complaints of violations of** human rights may— (i) call for information or report from the Central Government or any State Government or any other authority or organisation subordinate thereto within such time as may be specified by it: Provided that— (a) if the information or report is not received within the time stipulated by the Commission, it may proceed to inquire into the complaint on its own; (b) if, on receipt of information or report, the Commission is satisfied either that no further inquiry is required or that the required action has been initiated or taken by the concerned Government or authority, it may not proceed with the complaint and inform the complainant accordingly; (ii) without prejudice to anything contained in clause (i), if it considers necessary, having regard to the nature of the complaint, initiate an inquiry. **1[18. Steps during and after inquiry.—The Commission may take any of the following steps during** or upon the completion of an inquiry held under this Act, namely:— (a) where the inquiry discloses the commission of violation of human rights or negligence in the prevention of violation of human rights or abetment thereof by a public servant, it may recommend to the concerned Government or authority— [(i) to make payment of compensation or damages to the complainant or to the victim or the](http://indiankanoon.org/doc/487849/) members of his family as the Commission may consider necessary; [(ii) to initiate proceedings for prosecution or such other suitable action as the Commission](http://indiankanoon.org/doc/73824/) may deem fit against the concerned person or persons; [(iii) to take such further action as it may think fit;](http://indiankanoon.org/doc/484657/) [(b) approach the Supreme Court or the High Court concerned for such directions, orders or writs](http://indiankanoon.org/doc/792656/) as that Court may deem necessary; 1. Subs. by Act 43 of 2006, s. 11, for section 18 (w.e.f. 23-11-2006). 9 ----- [(c) recommend to the concerned Government or authority at any stage of the inquiry for the grant](http://indiankanoon.org/doc/257373/) of such immediate interim relief to the victim or the members of his family as the Commission may consider necessary; [(d) subject to the provisions of clause (e), provide a copy of the inquiry report to the petitioner or](http://indiankanoon.org/doc/493514/) his representative; [(e) the Commission shall send a copy of its inquiry report together with its recommendations to](http://indiankanoon.org/doc/1807416/) the concerned Government or authority and the concerned Government or authority shall, within a period of one month, or such further time as the Commission may allow, forward its comments on the report, including the action taken or proposed to be taken thereon, to the Commission; [(f) the Commission shall publish its inquiry report together with the comments of the concerned](http://indiankanoon.org/doc/1453801/) Government or authority, if any, and the action taken or proposed to be taken by the concerned Government or authority on the recommendations of the Commission.] **19. Procedure with respect to armed forces.—(1) Notwithstanding anything contained in this** Act, while dealing with complaints of violation of human rights by members of the armed forces, the Commission shall adopt the following procedure, namely:— (a) it may, either on its own motion or on receipt of a petition, seek a report from the Central Government; (b) after the receipt of the report, it may, either not proceed with the complaint or, as the case may be, make its recommendations to that Government. (2) The Central Government shall inform the Commission of the action taken on the recommendations within three months or such further time as the Commission may allow. (3) The Commission shall publish its report together with its recommendations made to the Central Government and the action taken by that Government on such recommendations. (4) The Commission shall provide a copy of the report published under sub-section (3) to the petitioner or his representative. **20. Annual and special reports of the Commission.—(1) The Commission shall submit an** annual report to the Central Government and to the State Government concerned and may at any time submit special reports on any matter which, in its opinion, is of such urgency or importance that it should not be deferred till submission of the annual report. (2) The Central Government and the State Government, as the case may be, shall cause the annual and special reports of the Commission to be laid before each House of Parliament or the State Legislature respectively, as the case may be, along with a memorandum of action taken or proposed to be taken on the recommendations of the Commission and the reasons for non-acceptance of the recommendations, if any. CHAPTER V STATE HUMAN RIGHTS COMMISSIONS **21. Constitution of State Human Rights Commission.—(1) A State Government may constitute a** body to be known as the..................(name of the State) Human Rights Commission to exercise the powers conferred upon, and to perform the functions assigned to, a State Commission under this Chapter. 1[(2) The State Commission shall, with effect from such date as the State Government may by notification specify, consist of— [(a) a Chairperson who has been a [2][Chief Justice or a Judge] of a High Court;](http://indiankanoon.org/doc/721379/) [(b) one Member who is, or has been, a Judge of a High Court or District Judge in the State with a](http://indiankanoon.org/doc/1001808/) minimum of seven years experience as District Judge; 1. Subs. by Act 43 of 2006, s. 12, for sub-section (2) (w.e.f. 23-11-2006). 2. Subs. by Act 19 of 2019, s. 5, for “Chief Justice” (w.e.f. 2-8-2019). 10 ----- [(c) one Member to be appointed from among persons having knowledge of or practical](http://indiankanoon.org/doc/612234/) experience in matters relating to human rights.] (3) There shall be a Secretary who shall be the Chief Executive Officer of the State Commission and 1[shall, subject to control of the Chairperson, exercise all administrative and financial powers of the State Commission]. (4) The headquarters of the State Commission shall be at such place as the State Government may, by notification, specify. (5) A State Commission may inquire into violation of human rights only in respect of matters relatable to any of the entries enumerated in List II and List III in the Seventh Schedule to the Constitution: Provided that if any such matter is already being inquired into by the Commission or any other Commission duly constituted under any law for the time being in force, the State Commission shall not inquire into the said matter: 2* - - - 3[(6) Two or more State Governments may, with the consent of a Chairperson or Member of a State Commission, appoint such Chairperson or, as the case may be, such Member of another State Commission simultaneously if such Chairperson or Member consents to such appointment: Provided that every appointment made under this sub-section shall be made after obtaining the recommendations of the Committee referred to in sub-section (1) of section 22 in respect of the State for which a common Chairperson or Member, or both, as the case may be, is to be appointed.] 4[(7) Subject to the provisions of section 12, the Central Government may, by order, confer upon the State Commission the functions relating to human rights being discharged by the Union territories, [5][other than Union territory of Delhi, Union territory of Jammu and Kashmir and Union territory of Ladakh]. (8) The functions relating to human rights in case of [6][Union territory of Delhi, Union territory of Jammu and Kashmir and Union territory of Ladakh] shall be dealt with by the Commission.] **22. Appointment of Chairperson and** **[7][Members] of State Commission.—(1) The Chairperson** and [7][Members] shall be appointed by the Governor by warrant under his hand and seal: Provided that every appointment under this sub-section shall be made after obtaining the recommendation of a Committee consisting of— (a) the Chief Minister —chairperson; (b) Speaker of the Legislative Assembly —member; (c) Minister in-charge of the Department of Home in that State (d) Leader of the Opposition in the Legislative Assembly —member; —member: 1. Subs. by Act 19 of 2019, s. 5, for “shall exercise such powers and discharge such functions of the State Commission as it may delegate to him” (w.e.f. 2-8-2019). 2. The second proviso omitted by the Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, _vide notification No. S.O. 1123(E) dated (18-3-2020) and_ _vide Union Territory of Ladakh Reorganisation (Adaptation of_ Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020). 3. Ins. by Act 43 of 2006, s. 12 (w.e.f. 23-11-2006). 4. Ins. by Act 19 of 2019, s. 5 (w.e.f. 2-8-2019). 5. Subs. by the Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, _vide notification No. S.O._ 1123(E), for “other than Union territory of Delhi” dated (18-3-2020) and _vide Union Territory of Ladakh Reorganisation_ (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020). 6. Subs. by the Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, _vide notification No. S.O._ 1123(E), for “Union territory of Delhi” and _vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws)_ Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020). 7. Subs. by Act 43 of 2006, s. 13, for “other Members” (w.e.f. 23-11-2006). 11 ----- Provided further that where there is a Legislative Council in a State, the Chairman of that Council and the Leader of the Opposition in that Council shall also be members of the Committee: Provided also that no sitting Judge of a High Court or a sitting district judge shall be appointed except after consultation with the Chief Justice of the High Court of the concerned State. (2) No appointment of a Chairperson or a Member of the State Commission shall be invalid merely by reason of [1][any vacancy of any Member in the Committee referred to in sub-section (1)]. **2[23. Resignation and Removal of Chairperson or a Member of the State Commission].—3[(1)** The Chairperson or a Member of a State Commission may, by notice in writing under his hand addressed to the Governor, resign his office. [(1A) Subject to the provisions of sub-section (2), the Chairperson or any Member of the State](http://indiankanoon.org/doc/508679/) Commission shall only be removed from his office by order of the President on the ground of proved misbehaviour or incapacity after the Supreme Court, on a reference being made to it by the President, has, on inquiry held in accordance with the procedure prescribed in that behalf by the Supreme Court, reported that the Chairperson or such Member, as the case may be, ought on any such ground to be removed.] (2) Notwithstanding anything in [4][sub-section (1A)] the President may by order remove from office the Chairperson or any [5][Member] if the Chairperson or such [5][Member], as the case may be,— (a) is adjudged an insolvent; or (b) engages during his term of office in any paid employment outside the duties of his office; or (c) is unfit to continue in office by reason of infirmity of mind or body; or (d) is of unsound mind and stands so declared by a competent court; or (e) is convicted and sentenced to imprisonment for an offence which in the opinion of the President involves moral turpitude. **6[24. Term of office of Chairperson and Members of the State Commission.—(1) A person** appointed as Chairperson shall hold office for a term of [7][three years] from the date on which he enters upon his office or until he attains the age of seventy years, whichever is earlier [8][and shall be eligible for re-appointment]. [(2) A person appointed as a Member shall hold office for a term of](http://indiankanoon.org/doc/1849955/) [7][three years] from the date on which he enters upon his office and shall be eligible for re-appointment [9]***: Provided that no Member shall hold office after he has attained the age of seventy years. [(3) On ceasing to hold office, a Chairperson or a Member shall be ineligible for further employment](http://indiankanoon.org/doc/336355/) under the Government of a State or under the Government of India.] **25. Member to act as Chairperson or to discharge his functions in certain circumstances.—(1)** In the event of the occurrence of any vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the Governor may, by notification, authorise one of the Members to act as the Chairperson until the appointment of a new Chairperson to fill such vacancy. 1. Subs. by Act 43 of 2006, s. 13, for “any vacancy in the Committee” (w.e.f. 23-11-2006). 2. Subs. by s. 14, ibid., for “Removal of a Member of the State Commission” (w.e.f. 23-11-2006). 3. Subs. by s. 14, ibid., for sub-section (1) (w.e.f. 23-11-2006). 4. Subs. by s. 14, ibid., for “sub-section (1)” (w.e.f. 23-11-2006). 5. Subs. by s. 14, ibid., for “other Member” (w.e.f. 23-11-2006). 6. Subs. by Act 43 of 2006, s. 15, for section 24 (w.e.f. 23-11-2006). 7. Subs. by Act 19 of 2019, s. 6, for “five years” (w.e.f. 2-8-2019). 8. Ins. by s. 6, ibid. (w.e.f. 2-8-2019). 9. The words “for another term of five years” omitted by Act 19 of 2019, s. 6 (w.e.f. 2-8-2019). 12 ----- (2) When the Chairperson is unable to discharge his functions owing to absence on leave or otherwise, such one of the Members as the Governor may, by notification, authorise in this behalf, shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties. **1[26. Terms and conditions of service of Chairperson and Members of State Commission.— The** salaries and allowances payable to, and other terms and conditions of service of, the Chairperson and Members shall be such as may be prescribed by the State Government: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson or a Member shall be varied to his disadvantage after his appointment.] **27. Officers and other staff of the State Commission.—(1) The State Government shall make** available to the Commission— (a) an officer not below the rank of a Secretary to the State Government who shall be the Secretary of the State Commission; and (b) such police and investigative staff under an officer not below the rank of an Inspector General of Police and such other officers and staff as may be necessary for the efficient performance of the functions of the State Commission. (2) Subject to such rules as may be made by the State Government in this behalf, the State Commission may appoint such other administrative, technical and scientific staff as it may consider necessary. (3) The salaries, allowances and conditions of service of the officers and other staff appointed under sub-section (2) shall be such as may be prescribed by the State Government. **28. Annual and special reports of State Commission.—(1) The State Commission shall submit an** annual report to the State Government and may at any time submit special reports on any matter which, in its opinion, is of such urgency or importance that it should not be deferred till submission of the annual report. (2) The State Government shall cause the annual and special reports of the State Commission to be laid before each House of State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House along with a memorandum of action taken or proposed to be taken on the recommendations of the State Commission and the reasons for non-acceptance of the recommendations, if any. **29. Application of certain provisions relating to National Human Rights Commission to State** **Commissions.—The provisions of sections 9, 10, 12, 13, 14, 15, 16, 17 and 18 shall apply to a State** Commission and shall have effect, subject to the following modifications, namely:— (a) references to “Commission” shall be construed as references to “State Commission”; (b) in section 10, in sub-section (3), for the word “Secretary-General”, the word “Secretary” shall be substituted; (c) in section 12, clause (f) shall be omitted; (d) in section 17, in clause (i), the words “Central Government or any” shall be omitted. CHAPTER VI HUMAN RIGHTS COURTS **30. Human Rights Courts.—For the purpose of providing speedy trial of offences arising out of** violation of human rights, the State Government may, with the concurrence of the Chief Justice of the High Court, by notification, specify for each district a Court of Session to be a Human Rights Court to try the said offences: 1. Subs. by Act 43 of 2006, s.16, for section 26 (w.e.f. 23-11-2006). 13 ----- Provided that nothing in this section shall apply if— (a) a Court of Session is already specified as a special court; or (b) a special court is already constituted, for such offences under any other law for the time being in force. **31. Special Public Prosecutor.—For every Human Rights Court, the State Government shall, by** notification, specify a Public Prosecutor or appoint an advocate who has been in practice as an advocate for not less than seven years, as a Special Public Prosecutor for the purpose of conducting cases in that Court. CHAPTER VII FINANCE, ACCOUNTS AND AUDIT **32. Grants by the Central Government.—(1) The Central Government shall, after due** appropriation made by Parliament by law in this behalf, pay to the Commission by way of grants such sums of money as the Central Government may think fit for being utilised for the purposes of this Act. (2) The Commission may spend such sums as it thinks fit for performing the functions under this Act, and such sums shall be treated as expenditure payable out of the grants referred to in sub-section (1). **33. Grants by the State Government.—(1) The State Government shall, after due, appropriation** made by Legislature by law in this behalf, pay to the State Commission by way of grants such sums of money as the State Government may think fit for being utilised for the purposes of this Act. (2) The State Commission may spend such sums as it thinks fit for performing the functions under Chapter V, and such sums shall be treated as expenditure payable out of the grants referred to in sub-section (1). **34. Accounts and audit.—(1) The Commission shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Commission shall be audited by the Comptroller and Auditor-General at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Commission to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the Commission under this Act shall have the same rights and privileges and the authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Commission. (4) The accounts of the Commission, as certified by the Comptroller and Auditor-General or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the Central Government by the Commission and the Central Government shall cause the audit report to be laid, as soon as may be after it is received, before each House of Parliament. **35. Accounts and audit of State Commission.—(1) The State Commission shall maintain** proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the State Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the State Commission shall be audited by the Comptroller and Auditor-General at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the State Commission to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the State Commission under this Act shall have the same rights and privileges 14 ----- and the authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the State Commission. (4) The accounts of the State Commission, as certified by the Comptroller and Auditor-General or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the State Government by the State Commission and the State Government shall cause the audit report to be laid, as soon as may be after it is received, before the State Legislature. CHAPTER VIII MISCELLANEOUS **36. Matters not subject to jurisdiction of the Commission.—(1) The Commission shall not** inquire into any matter which is pending before a State Commission or any other Commission duly constituted under any law for the time being in force. (2) The Commission or the State Commission shall not inquire into any matter after the expiry of one year from the date on which the act constituting violation of human rights is alleged to have been committed. **37. Constitution of special investigation teams.—Notwithstanding anything contained in any other** law for the time being in force, where the Government considers it necessary so to do, it may constitute one or more special investigation teams, consisting of such police officers as it thinks necessary for purposes of investigation and prosecution of offences arising out of violations of human rights. **38. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against** the Central Government, State Government, Commission, the State Commission or any Member thereof or any person acting under the direction either of the Central Government, State Government, Commission or the State Commission in respect of anything which is in good faith done or intended to be done in pursuance of this Act or of any rules or any order made thereunder or in respect of the publication by or under the authority of the Central Government, State Government, Commission or the State Commission of any report, paper or proceedings. **39. Members and officers to be public servants.—Every Member of the Commission, State** Commission and every officer appointed or authorised by the Commission or the State Commission to exercise functions under this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **40. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the salaries and allowances and other terms and conditions of service of the [1][Chairperson and Members] under section 8; (b) the conditions subject to which other administrative, technical and scientific staff may be appointed by the Commission and the salaries and allowances of officers and other staff under sub-section (3) of section 11; (c) any other power of a civil court required to be prescribed under clause (f) of sub-section (1) of section 13; (d) the form in which the annual statement of accounts is to be prepared by the Commission under sub-section (1) of section 34; and (e) any other matter which has to be, or may be, prescribed. 1. Subs. by Act 43 of 2006, s.17, for “Members” (w.e.f. 23-11-2006). 15 ----- (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 1[40A. Power to make rules retrospectively.—The power to make rules under clause (b) of sub-section (2) of section 40 shall include the power to make such rules or any of them retrospectively from a date not earlier than the date on which this Act received the assent of the President, but no such retrospective effect shall be given to any such rule so as to prejudicially affect the interests of any person to whom such rule may be applicable.] 2[40B. Power of Commission to make regulations.—(1) Subject to the provisions of this Act and the rules made thereunder, the Commission may, with the previous approval of the Central Government, by notification, make regulations to carry out the provisions of this Act. [(2) In particular and without prejudice to the generality of the foregoing power, such regulations may](http://indiankanoon.org/doc/1457333/) provide for all or any of the following matters, namely:— [(a) the procedure to be followed by the Commission under sub-section (2) of section 10;](http://indiankanoon.org/doc/1953854/) [(b) the returns and statistics to be furnished by the State Commissions;](http://indiankanoon.org/doc/166315/) [(c) any other matter which has to be, or may be, specified by regulations.](http://indiankanoon.org/doc/445564/) [(3) Every regulation made by the Commission under this Act shall be laid, as soon as may be after it](http://indiankanoon.org/doc/1862225/) is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.] **41. Power of State Government to make rules.—(1) The State Government may, by** notification, make rules to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the salaries and allowances and other terms and conditions of service of [3][the Chairperson and Members] under section 26; (b) the conditions subject to which other administrative, technical and scientific staff may be appointed by the State Commission and the salaries and allowances of officers and other staff under sub-section (3) of section 27; (c) the form in which the annual statement of accounts is to be prepared under sub-section (1) of section 35. (3) Every rule made by the State Government under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **42. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, 1. Ins. by Act 49 of 2000, s. 2 (w.e.f. 11-12-2000). 2. Ins. by Act 43 of 2006, s. 18 (w.e.f. 23-11-2006). 3. Subs. by s. 19, ibid., for “the Members” (w.e.f. 23-11-2006). 16 ----- not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of the period of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **43. Repeal and savings.—(1) The Protection of Human Rights Ordinance, 1993 (Ord. 30 of 1993) is** hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. 17 -----
23-Apr-1994
26
The Manipur Panchayati Raj Act, 1994
https://www.indiacode.nic.in/bitstream/123456789/1899/1/199426.pdf
central
# THE MANIPUR PANCHAYATI RAJ ACT, 1994 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II GRAM SABHA 3. Membership of Gram Sabha and disqualification. 4. Cessation of Membership. 5. Periodicity of Meetings. 6. Convening of Meetings. 7. Quorum. 8. Gram Sabha Meetings. 9. Agenda. 10. Resolution. 11. Functions of Gram Sabha. 12. Vigilance Committee. CHAPTER III GRAM PANCHAYATS 13. Constitution of Gram Panchayat. 14. Incorporation of Gram Panchayat. 15. Electoral Roll of Gram Panchayat. 16. Publication of Electoral Roll of Gram Panchayat. 17. Composition of Gram Panchayat. 18. Division of Gram Sabha into territorial constituencies. 19. Reservation of seats. 20. Term of the Gram Panchayats. 21. Election of the Pradhan and members of Gram Panchayat. 22. Appointment of an Administrative Committee or Administrator on failure to elect members of Gram Panchayats and in other cases. 23. Filling of casual vacancy in the office of Pradhan and of the member. 24. Election of Up-Pradhan. 25. Reservation of seats for Pradhan and Up-Pradhan. 1 ----- SECTIONS 26. Procedure for election of Up-Pradhan on the establishment of Gram Panchayat. 27. Term of the office of the Pradhan and Up-Pradhan. 28. Powers, functions and duties of Pradhan and Up-Pradhan. 29. Resignation of Pradhan and Up-Pradhan. 30. No confidence motion against the Pradhan and Up-Pradhan. 31. Resignation of members. 32. Meeting of Gram Panchayat. 33. Minutes. 34. Quorum and procedure. 35. Functions of Gram Panchayat. 36. Assignment of functions. 37. General powers of the Gram Panchayat. 38. Standing Committees. 39. Property and funds. 40. Taxation. 41. Financial assistance to Gram Panchayats. 42. Budget of the Gram Panchayat. 43. Accounts. 44. Audit. 45. Staff of Gram Panchayat. 46. Staffing pattern and category of employees. 47. Appointment and control of employees. CHAPTER IV ZILLA PARISHAD 48. Establishment of Zilla Parishad. 49. Composition of Zilla Parishad. 50. Elected Members. 51. Filling of casual vacancy. 52. Reservation. 53. Term of a Zilla Parishad. 54. Election of Adhyaksha and Up-Adhyaksha. 55. Salary and allowances to the Adhyaksha and Up-Adhyaksha and other Members. 56. Powers, funtions and duties of the Adhyaksha and Up-Adhyaksha. 57. Resignation or removal of the Adhyaksha and Up-Adhyaksha. 58. Resignation of Member. 59. Meeting of the Zilla Parishad. 60. Minutes. 61. Functions and powers of Zilla Parishad. 62. General powers of Zilla Parishad. 63. Assignment of functions. 64. Delegation of powers. 65. Standing Committees. 66. Functions of the Standing Committee. 67. Procedure of Committees. 2 ----- SECTIONS 68. Power to acquire, hold and dispose of property. 69. Zilla Parishad Fund. 70. Taxation. 71. Financial arrangements of Zilla Parishad. 72. Budget. 73. Accounts. 74. Audit. 75. Staff of Zilla Parishad. 76. Functions of the Chief Executive Officer and other officers. 77. Right to requisition records, recover money, etc. CHAPTER V MISCELLANEOUS 78. Powers to revise or modify decisions of committees. 79. Powers of Gram Panchayats to make bye-laws. 80. Powers of Zilla Parishad to make regulations. 81. Powers of Government to make model regulations and bye-laws. 82. Powers of Government to dissolve and reconstitute Gram Panchayat and Zilla Parishad in case of alteration of area. 83. Dissolution of Gram Panchayats and Zilla Parishad in certain other cases. 84. Inquiry into the afffairs of the Panchayats by the Government. 85. Inspection of Development Schemes. 86. Directions from the Government. 87. Commissioner and Chief Executive officer’s powers in respect of Gram Panchayat and Zilla Parishad. 88. Power of Government and Chief Executive Officer to provide for performance of duties in default of Gram Panchayat or Zilla Parishad. 89. Zilla Prishads, power of suspending the executions of order, etc., of Gram Panchayat. 90. Government’s power of suspending execution of unlawful orders or resolutions. 91. Purchase of stores and equipment. 92. Power to appoint administrator in certain cases. 93. Removal of members for misconduct, etc. 94. Restrictions on withdrawal of powers and functions from the Panchayats. 95. Preparation of development plans. 96. District Planning Committee. 97. Finance Commission for Panchyats. 98. State Election Commission. 99. Determination of elected members after census. 100. Qualification of membership for election to Panchayat or Zilla Parishad. 101. Disqualification for memberships. 102. Power of State Government to rescind or suspend resolution of a Gram Panchayat or Zilla Parishad. 103. Constitution of Election Tribunal. 104. Annual Administration Report. 3 ----- SECTIONS 105. Power to make rules. 106. Bar to interference by Courts in electoral matters. 107. Taking of oath. 108. Repeal and savings. 109. Removal of difficulties. 4 ----- # THE MANIPUR PANCHAYATI RAJ ACT, 1994 NO. 26 OF 1994 [23rd April, 1994.] # An Act to provide for the constitution and organisation of Panchayats as units of local self-Government in the rural areas of Manipur and for matters connected therewith and incidental thereto. WHEREAS it is expedient to reorganise Panchayats in rural areas of Manipur by comprehensive enactment to establish a two-tier Panchayati Raj system in the State with elected bodies at the Gram and District levels, in keeping with the Constitutional provisions relating to Panchayats for greater participation of the people and more effective implementation of rural development programmes. BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title extent and commencement.—(1) This Act may be called the Manipur Panchayati Raj** Act, 1994. (2) It extends to the whole of the State of Manipur excepting any area to which the Manipur (Hill Areas) District Council Act, 1971 (Manipur Act 76 of 1971) or the Manipur (Village Authorities in Hill Areas) Act, 1956 (Manipur Act 80 of 1956) extends, or which has been or may hereafter be declared as, or included in, a municipality under any law for the time being in force, or which has been or may hereafter be declared as, or included in a cantonment under the Cantonment Act, 1924 (2 of 1924). (3) It shall come into force on such date[1] as the Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Adhyaksha and Up-Adhyaksha” means an Adhyaksha and a Up-Adhyakhsa of a Zilla Parishad elected under section 54 of this Act; (b) “Chairperson” means Chairperson of a Standing Committee of a Zilla Parishad or a Gram Panchayat, as the case may be, constituted under the provisions of this Act; (c) “Chief Executive Officer” means the Chief Executive Officer of a Zilla Parishad appointed under section 75 of this Act; (d) “Commissioner” means the Commissioner of the Government in the Development and Panchayati Raj or such other person as may be appointed by the State Government to exercise the powers of a Commissioner under this Act; (e) “district” means the revenue district; (f) “Deputy Commissioner” means the Deputy Commissioner of District; (g) “Government” means the State Government of Manipur; (h) “Gram Sabha” means a body consisting of persons registered in the electoral rolls relating to a village comprised within the area of the Panchayat at the village level; (i) “Gram Panchayat” means the Gram Panchayat constituted under the Act; (j) “Official Gazette” means the Manipur Gazette; (k) “Panchayat” means a Gram Panchayat and a Zilla Parishad constituted under the provisions of this Act; (l) “Panchayat area” means the territorial area of a Panchayat; 1. 23rd April, 1994, vide notification No. S.O. 328(E), dated 23rd April, 1994, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 5 ----- (m) “population” means the population as ascertained at the last preceding census of which the relevant figures have been published, (n) “Pradhan” means a Pradhan of a Gram Panchayat elected under section 21 of this Act; (o) “prescribed” means prescribed by rules made under the Act; (p) “Secretary” means the Secretary of a Gram Panchayat appointed under this Act; (q) “Standing Committee” means a Standing Committee constituted by a Zilla Parishad or a Gram Panchayat under this Act; (r) “Up-Pradhan” means a Up-Pradhan of a Gram Panchayat elected under section 24 of this Act; (s) “village” means a village specified by the Governor by public notification to be a village for the purpose of this Act and includes a group of villages so specified; and (t) “Zilla Parishad” means a Zilla Parishad of a district constituted under section 48 of this Act. CHAPTER II GRAM SABHA **3. Membership of Gram Sabha and disqualification.—(1) A Gram Sabha shall, subject to** sub-section (2), consist of all persons whose names are included in electoral rolls referred to in section 15 within the area of the Gram Sabha: Provided that no person shall be a member of more than one Gram Sabha. (2) A person shall be disqualified for being a member of the Gram Sabha, if— (a) he is not a citizen of India; or (b) he is of unsound mind and stands so declared by a competent court; or (c) he is for the time being disqualified from voting under the provision of any law relating to corrupt practices and other offences in connection with election to State Legislature. **4. Cessation of membership.—(1) A member of Gram Sabha shall cease to be a member, if he has** ceased to be ordinarily resident within the Gram Sabha area. (2) Where any person ceases to be a member of Gram Sabha under sub-section (1) he shall also cease to hold any office to which he may have been elected or appointed by virtue of being a member thereof. **5. Periodicity of meetings.—The Gram Sabha shall meet from time to time but six months shall not** intervene between any two meetings. **6. Convening of meetings.—The meeting of the Gram Sabha shall be held in accordance with such** procedure as may be prescribed. **7. Quorum.—(1) The quorum for a meeting of the Gram Sabha shall be one-tenth of its total** membership. (2) If at the time appointed for the meeting, a quorum is not present, the person presiding shall wait for thirty minutes, and if within such period, there is no quorum, the person presiding shall adjourn the meeting to the same time on the same day in the following week. He shall similarly, after waiting for thirty minutes, adjourn the meeting if at any time after it has begun, attention is drawn to the want of a quorum. A notice of the meeting so fixed shall be posted in the office of the Gram Panchayat. The business which could not be considered at the meeting so postponed for want of quorum, shall be brought before and disposed of at the meeting so fixed or at any subsequent adjourned meeting at which there is a quorum. **8. Gram Sabha meetings.—Every meeting of the Gram Sabha shall be presided over by the Pradhan** of the concerned Gram Panchayat and in his absence, by the Up-Pradhan, and in the absence of both by a member of the Gram Panchayat to be chosen from amongst the members of the Panchayat. 6 ----- **9. Agenda.—The Gram Panchayat shall prepare the agenda for discussion of the Gram Sabha, such** matters shall relate to the following, namely:— (a) the annual statement of accounts of the Gram Panchayat, the report of administration of the preceding financial year and the last audit note and replies if any, made thereto; (b) the budget of the Gram Panchayat for the next financial year; and (c) the report in respect of development programmes of the Gram Panchayat relating to the preceding year and development programmes proposed to be undertaken during the current year. **10. Resolution.—Any resolution relating to the functions entrusted to the Gram Sabha under** section 11, shall have to be passed by a majority of votes of the members present and voting in the meeting of the Gram Sabha. **11. Functions of Gram Sabha.—A Gram Sabha shall exercise the following functions, namely:—** (a) rendering assistance in the implementation of development schemes pertaining to the village; (b) identification of beneficiaries for the implementation of development schemes pertaining to the village: Provided that in case the Gram Sabha fails to identify the beneficiaries within a reasonable time the Gram Panchayat can identify the beneficiaries; (c) mobilising voluntary labour and contributions in kind or cash or both for the community welfare programmes; (d) to promote adult education and family welfare within the village; (e) promotion of unity and harmony among all sections of society in the village; (f) such other matters as may be prescribed. **12. Vigilance Committee.—The Gram Sabha may also form one or more Vigilance Committees** consisting of persons, who are not members of the Gram Panchayat to supervise the Gram Panchayat works, schemes and other activities and to put up reports concerning them in its meeting. CHAPTER III GRAM PANCHAYATS **13. Constitution of Gram Panchayat.—(1) There shall be constituted a Gram Panchayat for every** Gram Sabha. (2) The Gram Panchayat constituted under sub-section (1) shall be notified in the Official Gazette and shall be deemed to have been constituted from the date of its first meeting. (3) Every person shall be entitled to be included in the list of electors of Gram Panchayat if he is not less than eighteen years of age on the date of its publication under sub-section (1) and is ordinarily resident within the area of the Gram Panchayat: Provided that no person shall be entitled to be included in the list of the electors of any Gram Panchayat for more than one Gram Panchayat and no person shall be entitled to be included in the electoral roll of any Gram Panchayat for more than once: Provided further that if the applicant is included in the electoral roll of any other Gram Panchayat, the officer who includes his name shall inform the officer publishing the electoral roll of that other Gram Panchayat and that the other officer shall, on receipt of the information, strike off the applicant’s name from that list. _Explanation.—For the purpose of this sub-section, the expression “ordinarily resident” shall have the_ same meaning as has been given in section 20 of the Representation of the People Act, 1950 (43 of 1950). 7 ----- (4) The name of any person included in the list of electors who becomes disqualified at any time after his name was entered in the list, shall forthwith be struck-off from the list in which it is included: Provided that the name of any person struck-off from the electoral roll by reason of disqualification under clause (c) of sub-section (2) of section 3 shall forthwith be re-instated if such person ceases to become disqualified. (5) An appeal shall be made within such time and in such manner and to such authority as may be prescribed against any order passed under sub-sections (2) and (4). **14. Incorporation of Gram Panchayat.—Every Gram Panchayat shall, by the name notified in the** Official Gazette under section 13, be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property and to enter into contracts, and shall, by the said name sue and be sued. **15. Electoral roll of Gram Panchayat.—The electoral roll of the Manipur Assembly prepared under** the provision of the Representation of the People Act, 1950 (43 of 1950) and as in force on such date as the State Government may, by general or special order, notify in this behalf for such part of the constituency of the Assembly as is included in the Gram Sabha, shall be the list of electors for such Gram Panchayat. **16. Publication of Electoral roll of Gram Panchayat.—(1) The list of electors referred to in** section 15 shall be published in such manner and by such authority as may be prescribed. (2) Any person whose name is not included in the list of electors published under sub-section (1) may apply within ten days from its publication to the officer publishing the same for inclusion of his name therein and officer concerned shall, if he is satisfied that the applicant fulfils the condition mentioned in sub-section (3) and is not disqualified from being included in the list of electors under section 15 after making such inquiry as may be prescribed, direct his name to be included in the list of electors. **17. Composition of Gram Panchayat.—A Gram Panchayat shall consist of the Pradhan and such** number of directly elected members as may be notified from time to time by the State Government and one member for every 350 population or part thereof of the Panchayat area shall be elected as a member of such Panchayat. **18. Division of Gram Sabha into territorial constituencies.—(1) The Deputy Commissioner shall,** for the conduct of the election,— (i) divide the area of the Gram Sabha into territorial constituencies in such manner that the ratio between the population of each constituency and the number of seats allotted to it shall, as far as practicable, be the same throughout the Gram Sabha area; (ii) determine the number of seats allotted to each constituency. (2) One member from each territorial constituency shall be elected by direct election to the Gram Panchayat. **19. Reservation of seats.—(1) Seats shall be reserved for Scheduled Castes and Scheduled Tribes in** every Gram Panchayat, and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Panchayat as the population of Scheduled Castes or of the Scheduled Tribes in that Panchayat area bears to the total population of that area and such seats shall be allotted by rotation to different constituencies in such Gram Panchayat, in such manner as may be prescribed. (2) Not less than one-third of the total number of seats reserved under sub-section (1) shall be reserved for women belonging to Scheduled Castes, or as the case may be, the Scheduled Tribes. (3) Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be filled by direct election in every Gram Panchayat shall be reserved for women and such seats may be allotted by rotation to different constituencies in a Gram Panchayat in such manner as may be prescribed. 8 ----- **20. Term of the Gram Panchayats.—(1) Every Gram Panchayat shall continue for a term of five** years from the date appointed for its first meeting and no longer: Provided that a Gram Panchayat which is functioning immediately before the commencement of this Act shall continue till the expiration of its duration. (2) The election to constitute a Gram Panchayat shall be completed— (a) before the expiration of its duration specified in sub-section (1); and (b) in case of dissolution, before the expiration of a period of six months from the date of dissolution: Provided that where the remainder of the period for which the dissolved Gram Panchayat would have continued is less than six months, it shall not be necessary to hold any election under this clause for constituting the Gram Panchayat for such period. (3) A Gram Panchayat constituted upon the dissolution of a Gram Panchayat before the expiration of its duration, shall continue only for the remainder of the period for which the dissolved Gram Panchayat would have continued under sub-section (1) had it not been so dissolved. **21. Election of the Pradhan and members of Gram Panchayat.—The Pradhan and members of the** Gram Panchayat shall be elected by direct election under secret ballot by the members of the Gram Sabha from amongst themselves in such manner as may be prescribed. **22. Appointment of an Administrative Committee or Administrator on failure to elect members** **of Gram Panchayat and in other cases.—(1) (a) If the Deputy Commissioner is satisfied that a Gram** Panchayat for a village or group of villages immediately after the establishment of such Gram Panchayat cannot be constituted by reason of— (i) any difficulty in holding an election of the members of the Gram Panchayat; or (ii) failure to elect such members at two successive elections held under section 17; or (iii) any other sufficient reason whatsoever; or (b) If at any general election to a Gram Panchayat, no member is elected or less than two-third of the total number of members are elected, the Deputy Commissioner shall, by notification either,— (i) appoint an Administrative Committee consisting of persons qualified to be elected, the number of such persons being equal to the number of members determined under section 17; or (ii) appoint an Administrator. (2) The members of the Administrative Committee or the Administrator shall hold office for such period not exceeding six months as the Deputy Commissioner may specify in the notification under sub-section (1). (3) On the appointment of an Administrative Committee or an Administrator under sub-section (1), the persons, if any, chosen as members of the Gram Panchayat before such appointment shall cease to be members of the Gram Panchayat and all the powers and duties of the Gram Panchayat shall be exercised and performed by such Administrative Committee or Administrator, as the case may be. (4) The Administrative Committee or Administrator shall be deemed to be a duly constituted Gram Panchayat for the purpose of this Act, notwithstanding anything contained in the foregoing provisions: Provided that if at any time after the appointment of the Administrative Committee or the Administrator under sub-section (1), the Deputy Commissioner is satisfied that there is no difficulty in duly constituting the Gram Panchayat by election of members, the Deputy Commissioner, may, notwithstanding that the term of office for which the members of the Administrative Committee or the Administrator had been appointed has not expired, direct by notification that the members of the Administrative Committee or the Administrator, as the case may be, shall cease to hold office with effect from such date as may be specified in such notification. 9 ----- **23. Filling of casual vacancy in the office of Pradhan and of the member.—(1) In the event of** occurrence of any vacancy by reason of death, resignation, removal or otherwise in the office of Pradhan or of a member of a Gram Panchayat, the vacancy shall be filled by election in the manner prescribed. (2) Every Pradhan and every Member elected to fill a casual vacancy, shall hold office for the remaining term of office of the person in whose place he is so elected: Provided that no election for filling the casual vacancy shall be held if the vacancy is for a period of less than six months. **24. Election of Up-Pradhan.—(1) Every Gram Panchayat shall, as soon as may be, elect one of its** members to be Up-Pradhan. (2) In the event of occurrence of any vacancy by reason of death, resignation, removal or otherwise in the office of Up-Pradhan, the Gram Panchayat shall elect another member to be the Up-Pradhan: Provided that no election shall be held if the vacancy is for a period of less than six months. **25. Reservation of seats for Pradhan and Up-Pradhan.—Subject to the general or special order of** the Government, the Deputy Commissioner shall reserve— (i) such number of offices of Pradhan and Up-Pradhan of Gram Panchayat in the district for the Scheduled Castes and Scheduled Tribes as nearly as may be, in the same proportion as the total number of offices in the district bears to the population of the Scheduled Castes or of the Scheduled Tribes in the district bears to the total population of that district; (ii) not less than one-third of the total number of offices of Pradhan and Up-Pradhan, as the case may be, of the Gram Panchayat in the district shall be reserved for women: Provided that the offices reserved under this section shall be allotted by rotation to different Gram Panchayats in such manner as may be prescribed. **26. Procedure for election of Up-Pradhan on the establishment of Gram Panchayat.—On the** establishment of Gram Panchayat for the first time under this Act, or on its reconstitution or establishment under section 20, a meeting of the Gram Panchayat shall be called immediately by the prescribed officer who shall himself preside over the meeting, but shall have no right to vote, and in such meeting, the Up-Pradhan shall be elected. **27. Term of the office of the Pradhan and Up-Pradhan.—(1) The term of office of every Pradhan** and Up-Pradhan of the Gram Panchayat shall, save as otherwise provided in this Act, cease on the expiry of the term of the Gram Panchayat. (2) Pradhan and Up-Pradhan shall be entitled to such honoraria and other allowances, as may be prescribed. (3) Every member of the Gram Panchayat shall be entitled to receive such honoraria and allowances as may be fixed by the Government from time to time. **28. Powers, functions and duties of Pradhan and Up-Pradhan.—(1) The Pradhan shall—** (a) be responsible for convening the meeting of Gram Sabha and preside over its meeting; (b) be responsible for convening the meeting of Gram Panchayat and shall preside over its meetings; (c) be responsible for the maintenance of the records of the Gram Panchayat; (d) have the general responsibility for the financial and executive administration of the Gram Panchayat; (e) exercise administrative supervision and control over the work of the staff of the Gram Panchayat and the officers and employees whose services may be placed at the disposal of the Gram Panchayat by any other authority; 10 ----- (f) for the transaction of business connected with this Act, or for the purpose of making any order authorised thereby, exercise such powers, perform such functions and discharge such duties as may be exercised, performed or discharged by the Gram Panchayat under this Act or the rules made thereunder: Provided that the Pradhan shall not exercise such powers, perform such functions or discharge such duties as may be required by the rules made under this Act to be exercised, performed or discharged by the Gram Panchayat at a meeting; and (g) exercise such other powers, perform such other functions and discharge such other duties as the Gram Panchayat may, by general or special resolution direct or as the Government may by rules made in this behalf, prescribe. (2) The Up-Pradhan shall— (a) exercise such of the powers, perform such of the functions and discharge such of the duties of Pradhan as the Pradhan may from time to time, subject to rules made in this behalf by the Government, delegate to him by order in writing: Provided that the Pradhan may at any time withdraw all or any of the powers, functions and duties so delegated to the Up-Pradhan; (b) during the absence of the Pradhan, exercise all the powers, perform all the functions and discharge all the duties of the Pradhan; (c) exercise such other powers, perform such other functions and discharge such other duties as the Gram Panchayat may, by general or special resolution, direct or as the Government may, by rules made in this behalf, prescribe. **29. Resignation of Pradhan and Up-Pradhan.—(1) The Pradhan and the Up-Pradhan, as the case** may be, may resign his office by writing under his hand addressed to the prescribed authority. (2) Every resignation under sub-section (1) shall take effect on the expiry of fifteen days from the date of its receipt by the prescribed authority, unless within this period of fifteen days he withdraws such resignation by writing under his hand addressed to the prescribed authority. (3) Every Up-Pradhan shall vacate the office if he ceases to be a member of a Gram Panchayat. **30. No confidence motion against the Pradhan and Up-Pradhan.—(1) Every Pradhan and every** Up-Pradhan shall be deemed to have vacated his office forthwith if a resolution expressing want of confidence in him is passed by a majority of not less than two-third of the members of the Gram Panchayat present and voting, at a meeting specially convened for the purpose. The requisition for such a special meeting shall be signed by not less than half of the total number of members of the Gram Panchayat and shall be delivered to the prescribed authority. The prescribed authority shall within seven days from the date of the receipt of the requisition, convene a special meeting of the Gram Panchayat. The meeting shall be held on a day not later than fifteen days from the date of issue of the notice of the meeting. The meeting shall be presided over by the prescribed authority. In the initial two years of their term as Pradhan and Up-Pradhan of a Gram Panchayat on such motion of no confidence shall be moved against them. If the motion of no confidence is once rejected, no fresh motion of no confidence shall be brought before the Gram Panchayat within a period of one year from the date of such rejection of the motion. (2) Without prejudice to the provisions under this Act, a Pradhan and Up-Pradhan may be removed from office by the Government for misconduct in the discharge of his duties or neglect or, incapacity to perform his duties or for being persistently remiss in the discharge thereof, or guilty of any disgraceful conduct: Provided that, no such Pradhan, or Up-Pradhan be removed from office unless he has been given a reasonable opportunity to defend himself. (3) The Pradhan or Up-Pradhan removed under sub-section (2) shall not be eligible for re-election as Pradhan or Up-Pradhan during the remaining term of office. 11 ----- (4) A Pradhan or Up-Pradhan removed from his office under sub-section (2) shall cease to be a member of the Gram Panchayat. **31. Resignation of members.—A member of a Gram Panchayat may resign his membership in** writing under his hand addressed to the Pradhan of the Gram Panchayat and his seat shall become vacant on the expiry of fifteen clear days from the date of such resignation unless within the said period of fifteen days, he withdraws such resignation by writing under his hand addressed to the Pradhan. **32. Meeting of Gram Panchayat.—(1) A Gram Panchayat shall meet for the transaction of business** at least once in two months at the office of the Gram Panchayat and at such time as the Pradhan may determine. (2) The Pradhan may, whenever he thinks fit, and shall, upon the written request of not less than one-third of the total number of members and on a date within fifteen days from the receipt of such request, call a special meeting. (3) Seven clear days’ notice of an ordinary meeting and three clear days notice of a special meeting specifying the place, date and time of such meeting and business to be transacted thereat, shall be given by the Secretary to the members and such officers as the Government may prescribe, and affixed on the notice board of the Gram Panchayat. (4) The officers to whom notice is given under sub-section (3) and other Government officers having jurisdiction over the Gram Panchayat area or any part thereof shall be entitled to attend every meeting of Gram Panchayat and take part in the proceedings but shall not be entitled to vote. (5) If the Pradhan fails to call a special meeting as provided in sub-section (2), the Up-Pradhan or, in his absence, one-third of the total number of members may call such a meeting for a day not more than fifteen days thereafter and require the Secretary to give notice to the members and to take such action as may be necessary to convene the meeting. **33. Minutes.—(1) Minutes shall be kept of the names of the members and of the officers, if any,** present, and of the proceedings at each meeting of the Gram Panchayat and if any member present at the meeting so desires, of the names of the member voting respectively for or against any resolution, in a book to be provided for the purpose and after they are read over and agreed to, shall be signed by the Pradhan and Up-Pradhan or person presiding at such meeting, and shall at all reasonable times be open to inspection by any member of the Gram Panchayat. Any person may inspect the copy of minutes of the meeting. The minutes books shall always be kept in the office of the Gram Panchayat and shall be in the custody of the Secretary of the Gram Panchayat. (2) A copy of every resolution passed by the Gram Panchayat shall within ten days from the date of meeting, be forwarded by the Secretary to the Chief Executive Officer. **34. Quorum and procedure.—(1) The quorum for a meeting of the Gram Panchayat shall be one-** half of the total number of members. If, at the time appointed for the meeting, a quorum is not present, the presiding authority shall wait for thirty minutes, and if within such period there is no quorum, the presiding authority shall adjourn the meeting to such time on the following day or such future day as he may fix. He shall, similarly, after waiting for thirty minutes adjourn the meeting if, at any time, after it has begun, attention is drawn to the want of a quorum. A notice of the meeting so fixed shall be pasted in the office of the Gram Panchayat. The business which could not be considered at the meeting so postponed for want of quorum, shall be brought before and disposed of at the meeting so fixed or at any subsequent adjourned meeting at which there is a quorum. (2) Save as otherwise provided by or under this Act, at every meeting of Gram Panchayat, the Pradhan or in his absence the Up-Pradhan shall preside, and in the absence of both, the members present shall elect one from amongst themselves to preside for the occasion. (3) All questions shall, unless otherwise specifically provided, be decided by a majority of votes of the members present and voting. The Pradhan or Up-Pradhan or person presiding, as the case may be, unless he refrains from voting shall give his vote before declaring the number of votes for and against a question and in the case of equality of votes, he may give his casting vote. 12 ----- (4) No member of a Gram Panchayat shall vote on, or take part in the discussion of, any question coming up for consideration at a meeting of a Gram Panchayat, if the question is one in which, apart from its general application to the public, he has any pecuniary interest, and if the person presiding has such an interest, he shall not preside over the meeting when such question comes up for consideration. (5) If the person presiding is believed by any member present at the meeting to have any such pecuniary interest in any matter under discussion, and if a motion to that effect be carried, he shall not preside at the meeting during such discussion or vote on or take part in it. Any member of the Gram Panchayat may be chosen to preside at the meeting during the continuance of such discussion. **35. Functions of Gram Panchayat.—Subject to such conditions as may be specified by the** Government from time to time, the Gram Panchayat shall perform the functions specified below:— (1) General Functions:— (a) preparation of annual plans for the development of the Panchayat area; (b) preparation of annual budget; (c) power for mobilising reliefs in natural calamities; (d) removal of encroachments on public properties; (e) organising voluntary labour and contribution for community works; and (f) maintenance of essential statistics of village(s). (2) Agriculture, including Agriculture Extension:— (a) promotion and development of agriculture and horticulture; (b) development of waste lands; (c) development and maintenance of grazing lands and preventing their unauthorised alienation; (d) promote land improvement and soil conservation measures; and (e) promote measures for implementation of land reforms and land consolidation. (3) Animal husbandry, Dairying and Poultry:— (a) improvement of breed of cattle, poultry and other live-stock; (b) promotion of dairy farming, poultry and piggery; and (c) grassland development. (4) Fisheries:— development of fisheries in the village(s) (5) Social and Farm Forestry, Minor Forest produce Fuel and Fodder:— (a) planting and preservation of trees on the sides of roads and other public lands under its control; (b) fuel plantations and fodder development; (c) promotion of farm forestry; and (d) development of social forestry. (6) Khadi, Village and Cottage Industries:— (a) promotion of rural and cottage industries; (b) organisation of awareness camps, seminars and training programmes, agricultural and industrial exhibitions for the benefit of the rural areas; and 13 ----- (c) identification of traditional skills in the area to develop small scale industries and popularising food processing units. (7) Rural Housing:— (a) implementation of house building programme; and (b) maintenance of records relating to the houses, sites and other private and public properties. (8) Drinking water:— (a) construction, repair and maintenance of drinking water wells, tanks and ponds; (b) prevention and control of water pollution; and (c) maintenance of rural water supply schemes. (9) Roads, buildings, culverts, bridges, ferries, waterways and other means of communication:— (a) construction and maintenance of village roads, drains and culverts; (b) maintenance of buildings under its control or transferred to it by the Government or any public authority; and (c) maintenance of boats, ferries and waterways. (10) Non-Conventional Energy Source:— (a) promotion and development of non-conventional, energy schemes; (b) maintenance of community, non-conventional, energy devices, including bio-gas plants; and (c) propagation of improved chulhas and other efficient energy devices. (11) Poverty Alleviation Programme:— (a) promotion of public awareness and participation in poverty alleviation programmes for fuller employment and creation of productive assets; (b) selection of beneficiaries under various programmes through Gram Sabha; and (c) participation in effective implementation and monitoring. (12) Education including primary schools and secondary schools:— (a) promotion of public awareness and participation in primary and secondary education with special emphasis on technical training and vocational education; and (b) ensuring full enrolment and attendance in primary and secondary schools and its management. (13) Adult and non-formal Education:— promotion of Adult literacy. (14) Libraries:— village libraries and reading rooms. (15) Cultural activities:— promotion of social and cultural activities. (16) Markets and fairs:— regulation of fairs (including cattle fairs) and festivals. 14 ----- (17) Rural sanitation:— (a) maintenance of general sanitation; (b) cleaning of public roads, drains, tanks, wells and other public places; (c) maintenance and regulation of burning and burial grounds; (d) construction and maintenance of public latrines; and (e) management and control of washing and bathing ghats. (18) Public health and family welfare:— (a) implementation of family welfare programmes; (b) prevention and remedial measures against epidemics; (c) regulation of sale of meat, fish and other perishable food articles; (d) participation in programmes of human and animal vaccination; (e) regulation of eating and entertainment establishments; (f) destruction of stray dogs; (g) regulation of curing, tanning and dyeing of skins and hides; and (h) regulation of offensive and dangerous trades. (19) Woman and child development:— (a) participation in the implementation of woman and child welfare programmes; and (b) promotion of school health and nutrition programmes. (20) Social welfare including welfare of the handicapped and mentally retarded:— (a) participation in the implementation of the social programmes, including welfare of the handicapped, mentally retarded and destitute; and (b) monitoring of the old-age and widows pension schemes; (21) Welfare of the weaker section and in particular the Scheduled Castes and Scheduled Tribes:— (a) promotion of public awareness with regard to welfare of Scheduled Castes, Scheduled Tribes and other Weaker Sections; and (b) participation in the implementation of the specific programmes for the welfare of the weaker sections. (22) Public distribution system:— (a) promotion of the public awareness with regard to the distribution of essential commodities; and (b) monitoring the public distribution system. (23) Maintenance of community assets:— (a) maintenance of community assets; and (b) preservation and maintenance of other community assets. (24) Construction and maintenance of Dharmashalas, Chatras and similar institutions. (25) Construction and maintenance of cattle sheds, pounds and cart stands. (26) Construction and maintenance of slaughter houses. (27) Maintenance of public parks, playgrounds. (28) Regulation of manure pits in public places. 15 ----- (29) Establishment and control of shandies. (30) Irrigation, water management and watershed development:— (a) promote measures for construction and maintenance of minor irrigation works and watershed development programmes; (b) develop ground water resources; (c) providing for timely and equitable distribution of irrigation water. (31) Rural electrification including distribution of electricity:— (a) promote extension of electricity to unelectrified areas; (b) help in prevention of illegal tapping of electricity; and (c) help in the recovery and collection of electricity due. (32) Such other functions as may be entrusted. **36. Assignment of functions.—The Government may, by notification and subject to such conditions** as may be specified therein— (a) transfer to any Gram Panchayat the management and maintenance of a forest situated in the panchayat area; (b) make over to the Gram Panchayat the management of waste lands, pasture lands or vacant lands belonging to the Government situated within the panchayat area; (c) entrust the Gram Panchayat with the collection of land revenue on behalf of the Government and the maintenance of such records as are connected therewith; and (d) entrust such other functions as may be prescribed: Provided that no entrustment under clause (c) shall be made without the concurrence of the Gram Panchayat concerned: Provided further that when any transfer of the management and maintenance of a forest is made under clause (a) the Government shall direct that any amount required for such management and maintenance or an adequate portion of the income from such forest be placed at the disposal of the Gram Panchayat. **37. General powers of the Gram Panchayat.—A Gram Panchayat shall have powers to do all acts** necessary for or incidental to the carrying out the functions entrusted assigned or delegated to it and, in particular, and without prejudice to the foregoing powers, to exercise all powers specified under this Act. **38. Standing Committees.—(1) Every Gram Panchayat shall constitute the following committees by** election— (i) Production Committee for performing functions relating to agricultural productions, animal husbandry and rural industries and poverty alleviation programmes; (ii) Social Justice Committee for performing functions relating to— (a) promotion of education, economic, social, cultural and other interests of the Scheduled Castes and Scheduled Tribes and Backward Classes; (b) protection of such castes and classes from social injustice and any form of exploitation; and (c) welfare of women and children. (iii) Amenities Committee to perform functions in respect of education, public health, public works and other functions of the Gram Panchayat. (2) (a) Each Committee shall consist of not less than three and not more than five members including the Pradhan and Up-Pradhan as the case may be. The Pradhan shall be the _ex officio member and_ Chairman of Production Committee and Amenities Committee. The Pradhan shall be the _ex officio_ member and Chairman of the Social Justice Committee: 16 ----- Provided that the Social Justice Committee shall consist of at least one member who is a woman and one member belonging to the Scheduled Castes or Scheduled Tribes. (b) Each Committee shall be competent to co-opt in such manner as may be prescribed, members of farmers’ club, mahila mandals, yuvak mandals and other similar bodies recognised by the Government. A representative of Co-operative societies in the panchayat areas shall be co-opted to the Production Committee. The rights and liabilities of the co-opted members shall be such, as may be prescribed. (3) The Standing Committee shall perform the functions referred to above, to the extent the powers are delegated to them by the Gram Panchayat **39. Property and funds.—(1) For every Gram Panchayat there shall be constituted a Gram** Panchayat Fund bearing the name of the Gram Panchayat and there shall be placed to the credit thereof— (a) contributions and grants, if any, made by the Central or State Government; (b) contributions and grants, if any, made by the Zilla Parishad or any other local authority; (c) loans, if any, granted by the Central or the State Government; (d) all receipts on accounts of taxes, rates and fees levied by it; and (e) all other sums received by or on behalf of other Gram Panchayat. (2) Every Gram Panchayat shall set apart and apply annually such sum as may be required to meet— (a) The cost of its own administration including the payment of salary, allowances, provident fund and gratuity to the officers and employees and to the Secretary: Provided that the total expenditure on establishment shall not exceed one-third of the total expenditure, of the Gram Panchayat in any year. (b) Every Gram Panchayat shall have the power to spend such sums as it thinks fit for carrying out the purpose of this Act; (c) The Gram Panchayat Fund shall be vested in the Gram Panchayat and the balance to the credit of the Fund shall be kept in such custody as may be prescribed. **40. Taxation.—(1) Subject to such rules as may be made in this behalf, a Gram Panchayat shall** impose yearly tax on lands and buildings within the local limits of the jurisdiction of the Gram Panchayat. (2) Subject to such maximum rates as the Government may prescribe, a Gram Panchayat may levy the following fees and rates, namely:— (a) a fee for providing sanitary arrangements at such places of worship or pilgrimage, fairs and melas within its jurisdiction as may be specified by the Government by notification; (b) a lighting rate, where arrangement for lighting of public streets and places is made by the Gram Panchayat within its jurisdiction; and (c) a conservancy rate, where arrangement for clearing private latrines, urinals and cesspools is made by the Gram Panchayat within its jurisdiction. **41. Financial assistance to Gram Panchayats.—Subject to the provisions of this section, every** Gram Panchayat shall, after a re-appropriation made by law in this behalf, be entitled to receive grants-in-aid from the Consolidated Fund of the State as recommended by the State Finance Commission, constituted under section 97 of this Act. **42. Budget of the Gram Panchayat.—(1) Every Gram Panchayat shall, at such time and in such** manner as may be prescribed, prepare during each year a budget of its estimated receipts and disbursements for the following year and shall submit the budget to the Zilla Parishad having jurisdiction over the area of the Gram Panchayat. (2) The Zilla Parishad may, within such time as may be prescribed, either approve the budget or return it to the Gram Panchayat for such modifications as it may direct. On such modifications being 17 ----- made the budget shall be resubmitted within such time as may be prescribed for approval of the Zilla Parishad. (3) No expenditure shall be incurred unless the budget is approved by the Zilla Parishad. If the Zilla Parishad does not convey its approval within the time prescribed for the purpose, the budget will be deemed to have been approved by the Zilla Parishad. **43. Accounts.—Accounts of the income and expenditure of every Gram Panchayat shall be kept in** such form and manner as may be prescribed. **44. Audit.—(1) The accounts of a Gram Panchayat shall be audited by the Director, Local Fund** Audit and Accounts of the Government of Manipur in such manner as may be prescribed and a copy of the audit report shall be forwarded to the Gram Panchayat within one month of the completion of the audit. (2) On receipt of the audit report referred to in sub-section (1), the Gram Panchayat shall either remedy the defects or irregularities which have been pointed out in the audit report and send to the Zilla Parishad within three months an intimation of its having done so, or shall, within the said period, supply any further explanation to the prescribed authority in regard to such defects or irregularities as it is required to furnish. **45. Staff of Gram Panchayat.—(1) There shall be a Secretary for every Gram Panchayat who shall** be appointed in such manner as may be prescribed and shall draw his salary and allowances from the Gram Panchayat Fund. (2) The Secretary shall be in charge of the office of the Gram Panchayat and shall perform all the duties and exercise all the powers imposed or conferred upon him by or under this Act or any rules or bye-law made thereunder. (3) The Government shall make rules relating to the method of recruitment and the terms and conditions of service including the pay and allowances, superannuation, provident fund and gratuity of the Secretary. (4) Subject to rules as may be prescribed by Government regarding discipline and control, the Secretary shall act in all matters under the control of Gram Panchayat. **46. Staffing pattern and category of employees.—(1) The Government may, by order, specify the** staffing pattern, the scales of pay and mode of recruitment of staff of Gram Panchayats. (2) The Gram Panchayat shall, subject to sub-section (1), determine and submit for approval of the Chief Executive Officer a category of employees specifying the designation and grades and the salaries and allowances payable to its officers other than the Secretary required for carrying out the duties imposed upon the Gram Panchayat by or under this Act. **47. Appointment and control of employees.—Subject to the provisions of sections 45 and 46 the** Gram Panchayat may, with the prior approval of the Chief Executive Officer appoint other employees of the Gram Panchayat and pay their salaries from the Gram Panchayat fund: Provided that in making appointments, posts for the Scheduled Castes, the Scheduled Tribes and other socially and educationally backward classes of citizens shall be reserved in the same manner and to the same extent as is applicable for the recruitment to posts in the State Civil Services. CHAPTER IV ZILLA PARISHAD **48. Establishment of Zilla Parishad.—(1) The Governor shall, by notification in the Official** Gazette establish a Zilla Parishad for a district and having jurisdiction over it, with effect from such date as may be specified. (2) Every Zilla Parishad shall be a corporate body by the name of its district, having perpetual succession and common seal and subject to such restrictions as are imposed by or under this or any, other enactment, shall be vested with the capacity of sueing or being sued in its corporate name, of acquiring, 18 ----- holding and transferring property movable or immovable, whether without or within the limits of the area over which it has authority, of entering into contracts and of doing all things, necessary, proper or expedient for the purpose for which it is constituted. **49. Composition of Zilla Parishad.—The Zilla Parishad shall consist of—** (a) the members directly elected from the territorial constituencies in the district under section 50; (b) the members of the House of the People and the members of the State Legislative Assembly representing a part or whole of the district whose constituencies lie within the district; and (c) ten per cent. of the Pradhans of the Gram Panchayats in the district: Provided that when the total number of members under clauses (b) and (c) exceed the total number of members under clause (a), only one-third of the members under clause (c) shall be selected on rotation for a period of one year by lot as the Government may decide from time to time and district to district, subject to the condition that a Pradhan who was a member under this clause for one year shall not be eligible to become member for a second term during the remainder of his term of office as Pradhan: Provided further that all members of the Zilla Parishad whether elected or not from territorial constituencies in the Zilla Parishad area shall have the right to vote in the meeting of the Zilla Parishad except in the election of Adhyaksha and Up-Adhyaksha. **50. Elected Members.—(1) The Government may, by notification in the Official Gazette, determine** the number of directly elected members from territorial constituencies keeping in view the overall population of the district at a rate of the one member for every 15,000 population or part thereof. (2) For the conduct of the election, the prescribed authority shall, in accordance with such rules as may be prescribed in this behalf by the Government,— (a) divide the area of Zilla Parishad into territorial constituencies in such manner so that the ratio between the population of each constituency and the numbers of seats allotted to it shall, so far as may be practicable, be the same throughout the panchayat area and determine the number of seats allotted to each constituency; (b) in relation to each territorial constituency shall elect one or more members through direct election in the manner prescribed. **51. Filling of casual vacancy.—If vacancy of a member in Zilla Parishad occurs because of** resignation, death, removal or otherwise, it shall be filled by election in the prescribed manner: Provided that no election for filling the casual vacancy shall be held if the vacancy is for a period of less than six months. **52. Reservation.—(1) Seats shall be reserved for—** (a) the Scheduled Castes; (b) the Scheduled Tribes; in every Zilla Parishad and the number of seats shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Zilla Parishad as the population of the Scheduled Castes in that Zilla Parishad area or of the Scheduled Tribes in that Zilla Parishad area bears to the total population of that area and such seats may be allotted by rotation to different constituencies in a Zilla Parishad in such manner as may be prescribed. (2) Not less than one-third of the total number of seats reserved under sub-section (1) shall be reserved for women belonging to the Scheduled Castes or, as the case may be, the Scheduled Tribes. (3) Not less than one-third (including the number of seats reserved for women belonging to Scheduled Castes and Scheduled Tribes) of the total number of seats filled by direct election in every Zilla Parishad shall be reserved for women and such seats may be allotted by rotation to different constituencies in a Zilla Parishad, in such manner as may be prescribed. 19 ----- **53. Term of a Zilla Parishad.—(1) Every Zilla Parishad shall continue for five years from the date** of its first meeting: Provided that a Zilla Parishad which is functioning immediately before the commencement of this Act shall continue till the expiration of its duration. (2) An election to constitute a Zilla Parishad shall be completed:— (a) before the expiry of its duration specified in sub-section (1); and (b) in case of its dissolution, before the expiration of a period of six months from the date of such dissolution: Provided that where the remainder of the period for which the dissolved Zilla Parishad would have continued, is less than six months, it shall not be necessary to hold any election under this clause for such period. (3) A Zilla Parishad constituted upon the dissolution of a Zilla Parishad before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Zilla Parishad would have continued under sub-section (1) had it not been so dissolved. **54. Election of Adhyaksha and Up-Adhyaksha.—(1) The elected members of the Zilla Parishad** referred to in section 50 shall, as soon as may be, elect two members from amongst themselves to be respectively Adhyaksha and Up-Adhyaksha thereof and so often as there is a casual vacancy in the Office of the Adhyaksha and Up-Adhyaksha, they shall elect another member from amongst themselves to be Adhyaksha or Up-Adhyaksha, as the case may be: Provided that no election shall be held if the vacancy is for period of less than one month. (2) The State Government, shall in the prescribed manner reserve— (a) such number of offices of the Adhyaksha and Up-Adhyaksha of Zilla Parishad in the State for persons belonging to the Scheduled Castes and Scheduled Tribes shall as nearly as may be, the same proportion to the total number of offices in the Zilla Parishad as the population of the Scheduled Castes or of the Scheduled Tribes in the State bear to the total population of the State; (b) not less than one-third of the total number of offices of Adhyaksha and Up-Adhyaksha in the State from each category which are reserved for persons belonging to the Scheduled Castes, the Scheduled Tribes and those which are unreserved, for women: Provided that the offices reserved under this section shall be allotted by rotation to different Zilla Parishads. (3) Save as otherwise provided in this Act, the Adhyaksha or Up-Adhyaksha shall hold office for the term of office of the members of the Zilla Parishad. **55. Salary and allowances to the Adhyaksha and Up-Adhyaksha and other members.—(1) The** salary and allowances of the Adhyaksha and Up-Adhyaksha shall be such as may be prescribed. (2) Every member of the Zilla Parishad other than the Adhyaksha and Up-Adhyaksha shall be entitled to receive, such sitting fee and allowances as may be prescribed. **56. Powers, functions and duties of the Adhyaksha and Up-Adhayaksha.—(1) The Adhyaksha** shall— (a) perform all the duties imposed and exercise all the powers conferred on the Adhyaksha under this Act and rules made thereunder; (b) convene, preside over, and conduct meetings of the Zilla Parishad; (c) exercise administrative supervision and control over the Chief Executive Officer and through him, all officers and other employees of the Zilla Parishad and the officers and employees whose services may be placed at the disposal of the Zilla Parishad by the State Government; 20 ----- (d) exercise such other powers, perform such other functions and discharge such other duties as the Zilla Parishad may, by general resolution direct or as the Government may, by rules made in this behalf, prescribe; (e) exercise overall supervision over the financial and executive administration of the Zilla Parishad and place before the Zilla Parishad all questions connected therewith which shall appear to him to require its orders and for this purpose may call for records of the Zilla Parishad; and (f) have power to accord sanction up to a total sum of rupees one lakh in a year for the purpose of providing immediate relief to those who are affected by natural calamities in the district: Provided that the Adhyaksha shall place at the next meeting of the Zilla Parishad for its ratification, the details of such sanctions. (2) The Up-Adhyaksha shall— (a) in the absence of the Adhyaksha, preside over the meetings of the Zilla Parishad; (b) exercise such powers and perform such duties of the Adhyaksha as the Adhyaksha from time to time may, subject to the rules as may be prescribed delegate to him by order in writing; and (c) pending the election of the Adhyaksha or during the absence of the Adhyaksha from the district, or by reason of leave for a period exceeding thirty days, exercise the powers and perform the duties of the Adhyaksha. **57. Resignation or removal of the Adhyaksha and Up-Adhyaksha.—(1) The Adhyaksha may** resign his office by writing under his hand addressed to the Commissioner, and the Up-Adhyaksha may resign his office by writing under his hand addressed to the Adhyaksha. (2) Every resignation under sub-section (1) shall take effect on the expiry of fifteen days from the date of its receipt by the prescribed authority, unless within this period of fifteen days he withdraws such resignation by writing under his hand addressed to the prescribed authority. (3) Every Adhyaksha or Up-Adhyaksha shall vacate the office if he ceases to be a member of the Zilla Parishad. (4) Every Adhyaksha or Up-Adhyaksha shall be deemed to have vacated his office forthwith if a resolution expressing want of confidence in him is passed by a majority of the total number of elected members of the territorial constituencies of the Zilla Parishad at a meeting specially convened for the purpose. The requisition for such a special meeting shall be signed by not less than one-fifth of the total membership of the Zilla Parishad and shall be delivered to the Adhyaksha. The Adhyaksha shall, within seven days from the date of receipt of the requisition, convene a special meeting of the Zilla Parishad. The meeting shall be held on a day not later than fifteen days from the date of issue of the notice of the meeting. The meeting shall be presided over by the Adhyaksha, if the motion is against the Up-Adhyaksha and in the case of Adhyaksha, the Up-Adhyaksha shall preside over the meeting, if it is against both, a member nominated from amongst themselves by the members present in such meeting shall preside over such meeting. In the initial two years of their term as Adhyaksha or Up-Adhyaksha, as the case may be, of Zilla Parishad, no motion of no-confidence shall be brought against them. (5) If the motion of no-confidence against the Adhyaksha or Up-Adhyaksha or both is once rejected, no fresh motion of no-confidence against the Adhyaksha or Up-Adhyaksha or both, as the case may be, shall be brought before the Zilla Parishad within a period of one year from the date of such rejection of the motion. **58. Resignation of Member.—A member of a Zilla Parishad may resign his membership in writing** under his hand addressed to the Adhyaksha of the Zilla Parishad and his seat shall become vacant on the expiry of fifteen clear days from the date of such resignation, unless within the said period of fifteen days, he withdraws such resignation by writing under his hand addressed to the Adhyaksha. **59. Meeting of the Zilla Parishad.—(1) Every Zilla Parishad shall hold meetings at least once in** every three months, at such time and at such place within the local limits of the district concerned as the Zilla Parishad may fix at the immediately preceding meeting: 21 ----- Provided that the first meeting of a newly constituted Zilla Parishad shall be held at such time and at such place within the local limits of the district concerned, as the prescribed authority may fix: Provided further that the Adhyaksha when required in writing by one fifth of the members of the Zilla Parishad to call a meeting he shall do so within ten days, failing which the aforesaid members may call a meeting after giving intimation to the prescribed authority and seven clear days notice to the Adhyaksha and the other members of the Zilla Parishad. (2) One-third of the total number of members of the Zilla Parishad shall form a quorum for transacting the business at the meeting of the Zilla Parishad. (3) All questions coming before the Zilla Parishad shall be decided, by a majority of votes and in case of equality of votes, the Adhyaksha or the member presiding shall have a casting vote. (4) Every meeting shall be presided over by the Adhyaksha or if he is absent by the Up-Adhyaksha and if both the Adhyaksha and the Up-Adhyaksha are absent or if the Adhyaksha is absent and there is no Up-Adhyaksha the members present shall elect one from among themselves to preside over the meeting. **60. Minutes.—(1) Minutes shall be kept of the names of the members and of the officers, if any,** present, and of the proceedings at each meeting of the Zilla Parishad and if any member present at the meeting so desires, of the names of the members voting respectively for or against any resolution, in a book to be provided for purpose and after they are read over and agreed to, shall be signed by the Adhyaksha and Up-Adhyaksha or person presiding at such meeting, and shall at all reasonable times be open to inspection by any member of the Zilla Parishad. Any person may inspect the copy of the minutes of the meeting. The minutes books shall always be kept in the office of the Zilla Parishad and shall be in the custody of the Chief Executive Officer of the Zilla Parishad. (2) A copy of every resolution passed by the Zilla Parishad shall within ten days from the date of its passing in the meeting, be forwarded by the Chief Executive Officer to the Government. **61. Functions and powers of Zilla Parishad.—(1) Any transfer of a subject to the Zilla Parishad** shall be with the approval of the Government from time to time. (2) Subject to the condition and exceptions as the Government may, from time to time, impose, it shall be the function of the Zilla Parishad to prepare plans for economic development and social justice of the District, and to ensure the coordinated implementation of such plans in respect of matters including those mentioned below, namely:— 1. AGRICULTURE AND AGRICULTURAL EXTENSION: (i) promotion of measures to increase agricultural production and to popularise the use of improved agricultural implements and the adoption of improved agricultural practices; (ii) establishment and maintenance of godowns; (iii) conducting agricultural fairs and exhibitions; (iv) training of farmers; (v) land improvement and soil conservation; and (vi) promotion of agricultural extension works. 2. IRRIGATION GROUND WATER RESOURCES AND WATERSHED DEVELOPMENT: (i) construction, renovation and maintenance of minor irrigation works and lift irrigation; (ii) providing for the timely and equitable distribution, and full use of water under irrigation schemes under the control of the Zilla Parishad; (iii) development of ground water resources; (iv) installation of community pump sets; and (v) watershed development programme. 22 ----- 3. HORTICULTURE: (i) promotion of rural parks and gardens; (ii) promotion of cultivation of fruits and vegetables; and (iii) promotion of farms. 4. STATISTICS: (i) publication of statistical and other information relating to activities of Gram Panchayats and Zilla Parishads; (ii) co-ordination and use of statistics and other information required for the activities of the Gram Panchayats and Zilla Parishads; and (iii) periodical supervision and evaluation of project and programmes entrusted to the Gram Panchayats and Zilla Parishads. 5. DISTRIBUTION OF ESSENTIAL COMMODITIES. 6. SOIL CONSERVATION AND LAND REFORMS: (i) soil conservation measures; (ii) land reclamation and land development works; and (iii) promote implementation of land reforms and land consolidation. 7. MARKETING: (i) development of regulated markets and marketing yards; and (ii) grading and quality control of agriculture products. 8. SOCIAL FORESTRY: (i) organise campaign for tree planting; and (ii) planting and maintenance of trees. 9. ANIMAL HUSBANDRY AND DAIRYING: (i) improvement of breed of cows and pigs; (ii) promotion of poultry farms, duck farms and goat farms; (iii) promotion of fodder development programmes; (iv) promotion of dairy farming, poultry and piggery; and (v) prevention of epidemics and contagious diseases. 10. MINOR FOREST PRODUCE, FUEL AND FODDER: (i) promotion of social and farm forestry, fuel plantation and fodder development; (ii) management of minor forest produce of the forests raised in community lands; and (iii) development of wasteland. 11. FISHERIES: (i) promotion of fish seed production and distribution; (ii) development of pisiculture in private and community tanks; (iii) development of inland fisheries; (iv) promotion of fish curing and drying; (v) assistance to traditional fishing; 23 ----- (vi) organising fish marketing co-operatives; and (vii) welfare schemes for the uplift and development of fisherman. 12. HOUSEHOLD INDUSTRIES: (including food processing): (i) identification of traditional skills in the locality and promotion of household industries; (ii) organisation of training programme for craftsmen and artisan; (iii) liaison to tap bank credit for household industries; (iv) popularising and marketing of finished products; and (v) organising khadi, handloom, handicraft and village and cottage industries. 13. RURAL ROADS AND INLAND WATERWAYS: (i) construction and maintenance of roads other than National, State Highways and other District road; (ii) bridges and culverts coming under roads falling in item (i); (iii) construction and maintenance of office buildings of the Zilla Parishad; (iv) identification of major link roads connecting markets, educational institutions, health centres; and (v) organising voluntary surrender of lands for new roads and for widening of existing roads. 14. HEALTH AND HYGIENE: (i) implementation of immunization and vaccination programme; (ii) health education activities in hospitals, primary health centres and dispensaries; (iii) maternity and child health service activities; (iv) family welfare activities; (v) organising health camps with Gram Panchayats; and (vi) measures against environment pollution. 15. RURAL HOUSING: (i) identification of houseless families; (ii) implementation of house building programmes in the district; and (iii) popularising low cost housing. 16. EDUCATION: (i) promotion of educational activities including the establishment and maintenance of primary and secondary schools; (ii) planning of programmes for Adult Education and Library facilities; (iii) propagation of technical training and vocational education; and (iv) extension work for propagation of Science and Technology to rural areas. 17. SOCIAL WELFARE AND WELFARE OF WEAKER SECTIONS AND HANDICAPPED PERSONS: (i) promotion of social welfare programme and social welfare activities with emphasis on handicapped and mentally retarded persons; 24 ----- (ii) organising nursery schools, balwadies, night schools and libraries to eradicate illiteracy and impart general education; and (iii) organising co-operative societies of Scheduled Castes and Scheduled Tribes. 18. POVERTY ALLEVIATION PROGRAMMES: planning, supervision monitoring and implementation of poverty alleviation programmes. 19. DRINKING WATER: (i) construction, repair and maintenance of drinking water wells, tanks and ponds; (ii) prevention and control of water pollution. 20. RURAL ELECTRIFICATION: (i) promote extension of electricity to unelectrified areas; (ii) help in the prevention of illegal tapping of electricity; and (iii) help in the recovery and collection of electricity dues. 21. NON-CONVENTIONAL ENERGY SOURCES: (i) promotion and development of non-conventional energy scheme; and (ii) propagation of efficient energy devices. 22. SOCIAL REFORM ACTIVITIES: (i) promotion of women’s organisation and welfare; (ii) promotion of children’s organisation and welfare; (iii) organise cultural and recreation activities; (iv) encouragement of sports and games and construction of rural stadia; (v) promotion of thrift and savings through:— (a) promotion of saving habits; (b) small savings campaign; (c) fight against spurious money lending practices and rural indebtedness. (4) In addition, the Zilla Parishad may— (a) manage or maintain any work of public utility or any institution vested in it or under its control and management; (b) acquire and maintain village hats and markets; (c) make grants to Gram Panchayats; (d) adopt measures for the relief of people in distress; (e) co-ordinate and integrate the development plans and schemes prepared by Gram Panchayats in the district; (f) examine and sanction the budget estimates of Gram Panchayat in the district; (g) undertake or execute any scheme extending to the whole or part of the district; and (h) take over the maintenance and control of any rural bridge, tank, ghat, well, channel or drain, belonging to a private owner or any other authority on such terms as may be agreed upon. (5) The Zilla Parishads of two or more adjacent districts may jointly undertake and execute any development scheme on such terms and conditions as may be mutually agreed upon: 25 ----- Provided that the Government may, by notification and subject to such conditions as it may impose, transfer additional functions to the Zilla Parishad. **62. General powers of Zilla Parishad.—(1) Subject to the general or special orders of the** Government, the Zilla Parishad may— (a) incur expenditure on education or medical relief outside its jurisdiction; (b) provide for carrying out any work or measure likely to promote health, safety, education, comfort, convenience or social or economic or cultural well-being of the inhabitants of the district; (c) contribute to association of All India, State or Inter-State level concerned with the promotion of local government and for holding exhibition, seminar and conferences within the district related to the activities of Gram Panchayat and Zilla Parishad; and (d) render financial or other assistance to any person for carrying in the district any activity which is related to any of its functions. (2) The Zilla Parishad shall have powers to do all acts necessary for or incidental to the carrying out of the functions entrusted or delegated to it and, in particular, and without prejudice to the foregoing powers to exercise all powers specified under this Act. **63. Assignment of functions.—(1) The Government may assign to Zilla Parishad, functions in** relation to any matters to which the executive authority of the Government extends or in respect of functions which have been assigned to the State Government by the Central Government. (2) The Government may, by notification, withdraw or modify the functions assigned under sub-section (1). **64. Delegation of powers.—The Zilla Parishad may, by notification, delegate to the Chief Executive** Officer or other Officer any of the powers conferred by or under this Act on the Zilla Parishad. **65. Standing Committees.—(1) The Zilla Parishad shall have the following Standing Committees,** namely:— (a) General Standing Committee; (b) Finance, Audit and Planning Committee; (c) Social Justice Committee; (d) Education and Health Committee; (e) Agriculture and Industries Committee; and (f) Works Committee. (2) Each Standing Committee shall consist of such number of members not exceeding five including the Chairman elected by the members of Zilla Parishad from amongst the elected members. (3) The Adhyaksha shall be the ex officio member and Chairman of the General Standing Committee and the Finance, Audit and Planning Committee. The Up-Adhyaksha shall be the ex officio member and Chairman of the Social Justice Committee. The other Standing Committee shall elect the Chairman from among their members. (4) No member of the Zilla Parishad shall be eligible to serve not more than two Standing Committees. (5) The Chief Executive Officer shall be the ex officio Secretary of the General Standing Committee and the Finance, Audit and Planning Committee and he shall nominate one of the Deputy Secretaries as _ex officio Secretary for each of the remaining Standing Committees. The Chief Executive Officer shall be_ entitled to attend the meetings of all the Standing Committees. **66. Functions of the Standing Committee.—(1) The General Standing Committee shall perform** functions relating to the establishment matters and functions relating to communication, buildings, rural housing, village extensions, relief against the natural calamities and allied matters and all other matters. 26 ----- (2) The Finance, Audit and Planning Committee shall perform the functions relating to:— (a) the finances of the Zilla Parishad, framing of Budgets, scrutinising proposals for increase of revenue, examination of receipts and expenditure statements, consideration of all proposals affecting the finances of the Zilla Parishad and general supervision, of the revenue and expenditure of the Zilla Parishad; (b) the plan priorities, allocation of outlays to developments, horizontal and vertical linkages, implementation of guidelines issued by the Government, regular review of planning programmes, evaluation of important programmes and small savings schemes. (3) The Social Justice Committee shall perform functions relating to:— (a) promotion of education, economic, social, cultural and other interests of the Scheduled Castes, Scheduled Tribes and Backward Classes; (b) protecting them from social injustice and all other forms of exploitation; (c) amelioration, of the Scheduled Castes, the Scheduled Tribes and Backward Classes; (d) securing social justice to the Scheduled Castes, the Scheduled Tribes, women and other weaker sections of the society. (4) The Education and Health Committee shall:— (a) be incharge of all educational activities of the Zilla. Parishad; (b) undertake the planning of education in the district within the framework of the national policy and the national and state plans; (c) survey and evaluate the educational activities of the Zilla Parishad; (d) perform such other duties pertaining to education, adult literacy and cultural activities as the Zilla Parishad may assign to it; (e) health services, hospitals, water supply, family welfare and other related matters. (5) The Agriculture and Industry Committee shall perform functions relating to:— (a) agricultural production, animal husbandry, co-operation, contour bunding and reclamation; (b) village and cottage industries; and (c) promotion of industrial development of the district. (6) The Works Committee shall perform functions relating to maintenance of:— (a) roads including district roads, bridges, culverts; (b) maintenance of buildings under its control or transferred by the Government or any public authority; and (c) maintenance of boats, ferries, waterways. (7) The Standing Committee referred to in sub-sections (1) to (6) shall perform the functions referred to above to the extent the powers are delegated to them by the Zilla Parishad. (8) The Standing Committees shall perform in respect of matters assigned to them such additional duties as may be prescribed. **67. Procedure of Committees.—(1) The Zilla Parishad may frame regulations relating to election of** members of committees, conduct of business therein, and all other matters relating to the committees. (2) The Chairman of every Standing Committee shall in respect of the work of that committee be entitled to call for any information, return statement or report from the officer of the Zilla Parishad and to enter on and inspect any immovable property of the Zilla Parishad or any work in progress concerning the committee. 27 ----- (3) Each Standing Committee shall be entitled to require attendance at its meetings of any officer of the Zilla Parishad who is connected with the work of the Committee. The Chief Executive Officer shall under instruction of the committee, issue notices and secure the attendance of the officer. **68. Power to acquire, hold and dispose of property.—(1) A Zilla Parishad shall have the power to** acquire, hold and dispose of property and to enter into contracts: Provided that in all cases of acquisition or disposal of immovable property the Zilla Parishad shall obtain the previous approval of the Government. (2) All roads, buildings or other works constructed by a Zilla Parishad with its own funds shall vest in it. (3) The Government may allocate to a Zilla Parishad any public property situated within its jurisdiction, and thereupon such property shall vest in the Zilla Parishad. (4) Where a Zilla Parishad requires land to carry out any of the purposes of this Act, it may negotiate with the person or persons having in the said land, and if it fails to reach an agreement, it may make an application to the Deputy Commissioner for the acquisition of the land and the Deputy Commissioner may, if he is satisfied that the land is required for a public purpose, take steps to acquire the land under the provisions of the Land Acquisition Act, 1894 (1 of 1894) and such land shall on acquisition, vest in the Zilla Parishad. **69. Zilla Parishad Fund.—(1) For every Zilla Parishad there shall be constituted a Zilla Parishad** Fund bearing the name of the Zilla Parishad and there shall be placed to the credit thereof:— (a) contributions and grants, if any, made by the Central or the State Government including such part of land revenue collected in the State as may be determined by the Government; (b) contributions and grants, if any, made by a Gram Panchayat or any other local authority; (c) loans, if any, granted by the Central or State Government or raised by the Zilla Parishad on security of its assets; (d) the proceeds of road-cess and public works-cess levied in the district; (e) all receipts on account of tolls, rates and fees levied by the Zilla Parishad; (f) all receipts in respect of any schools, hospitals, dispensaries, buildings, institutions or works, vested in, constructed by or placed under the control and management of the Zilla Parishad; (g) all sums received as gift or contribution and all income from any trust or endowment made in favour of Zilla Parishad; (h) such fines or penalties imposed and realised under the provisions of this Act or of the bye-laws made thereunder, as may be, prescribed; and (i) all other sums received by or on behalf of the Zilla Parishad. (2) Every Zilla Parishad shall set apart and apply annually such sum as may be required to meet the cost of its own administration including the payment of salary, allowances, provident fund and gratuity to the officers and employees. The overall expenditure on establishment shall not exceed one-third of the total expenditure. (3) Every Zilla Parishad shall have the power to spend such sums as it thinks fit for carrying out the purpose of this Act. (4) The Zilla Parishad Fund shall be vested in the Zilla Parishad and the amount standing to the credit of the fund shall be kept in such custody or invested in such manner as the Government may, from time to time, direct. 28 ----- **70. Taxation.—(1) Subject to such maximum rates as the Government prescribe, a Zilla Parishad** may— (a) levy tolls on persons, vehicles or animals or any class of them at any toll-bar established by it on any road other than kutcha road or any bridge vested in it or under its management; (b) levy tolls in respect for any ferry established by it or under its management; (c) levy road cess and public works cess; (d) levy the following fees and rates, namely:— (i) fees on the registration of boats or vehicles; (ii) a fee for providing sanitary facilities at such places or pilgrimage, fairs and melas within its jurisdiction as may be specified by the Government by notification; (iii) a fee for licence for fair or mela; (iv) a lighting rate where arrangement for lighting of public streets and places is made by the Zilla Parishad within its jurisdiction; and (v) water rate, where arrangement for the supply of water for drinking, irrigation or any other purpose is made by the Zilla Parishad within its jurisdiction. (2) The Zilla Parishad shall not undertake registration of any vehicle or levy fee thereof and shall not provide sanitary arrangements at places of worship or pilgrimage, fairs and melas within its jurisdiction or levy fee thereof if such vehicle has already been registered by any other authority under any law for the, time being in force or if such provision for sanitary arrangement has already been made by any other local authority. (3) The scales of tolls, fees or rates and the terms and conditions for the imposition thereof shall be such as may be provided by regulation. Such regulation may provide for exemption from all or any of the tolls, fees or rates in any class of cases. **71. Financial arrangements of Zilla Parishad.—(1) A Zilla Parishad may, subject to the provisions** of any law relating to the raising of loans by local authorities for the time being in force, raise from time to time, with the approval of the Government, loans for the purpose of the Act and create a sinking fund for the repayment of such loans. (2) Notwithstanding anything contained in sub-section (1) a Zilla Parishad may borrow money from the Government or, with the previous sanction, of the Government, from banks or other financial institutions, for furtherance of its objective on the basis of specific scheme as may be drawn up by the Zilla Parishad for the purpose. **72. Budget.—(1) Every Zilla Parishad shall, at such time and in such manner as may be prescribed,** prepare in each year a budget of its estimated receipts and disbursements for the following year and submit it to the Government. (2) The Government may, within such time as may be prescribed either approve the budget or return it to the Zilla Parishad for such modifications as it may direct. On such modifications being made the budget shall be resubmitted within such time as may be prescribed for approval of the Government. If the approval of the Government is not received by the Zilla Parishad by the last date of the financial year, the budget shall be deemed to be approved by the Government. (3) No expenditure shall be incurred unless the budget is approved by the Government. (4) The Zilla Parishad may prepare in each year a supplementary estimate providing for any modification of its budget and may submit it to the Government for approval within such time and in such manner as may be prescribed. 29 ----- **73. Accounts.—A Zilla Parishad shall keep accounts in such manner as may be prescribed.** **74. Audit.—(1) The audit of the accounts of the Zilla Parishad shall be carried out by the authority as** may be prescribed by the Government and a copy of the audit note shall be forwarded to the Zilla Parishad within one month of the completion of the audit. (2) on receipt of the audit report referred to in sub-section (1), the Zilla Parishad shall either remedy any defects or irregularities which have been pointed out in the audit and send to the Government within three months an intimation of its having done so or shall, within the said period, supply any further explanation to the prescribed authority in regard to such defects or irregularities as it is required to furnish. **75. Staff of Zilla Parishad.—(1) An officer of the rank of the Deputy Commissioner shall be the** Chief Executive Officer of the Zilla Parishad who shall be appointed by the Government. The Government may, also appoint an Additional Chief Executive Officer for a Zilla Parishad on such terms and conditions as may be prescribed. (2) The Government shall also appoint a Chief Accounts Officer and a Chief Planning Officer for each Zilla Parishad on such terms and conditions as may be prescribed. (3) The Government shall post from time to time in every Zilla Parishad such number of officers of Group A, B and C services of the State (including any officers appointed to such service from amongst person employed by the existing local authority) and officers of an All India Service allocated to serve under the Government, as the Government considers necessary. (4) Notwithstanding anything contained in this Act or any other law for the time being in force the Government or any other officer or other authority authorised by it in this behalf shall have the power to effect transfer of the officers and officials so posted from one district to another district. (5) The Government may constitute, from such date as is specified, such services for each Zilla Parishad as may be prescribed. **76. Functions of the Chief Executive officer and other officers.—(1) Save as otherwise expressly** provided by or under this Act, the Chief Executive Officer shall,— (a) carry out the policies and directions of the Zilla Parishad and take necessary measures for the speedy execution of all works and developmental schemes of Zilla Parishad; (b) discharge the duties imposed upon him, by or under this Act or the rules and regulations made thereunder; (c) control the officers and servants of the Zilla Parishad subject to the general superintendence and control of the Zilla Adhyaksha and under such rules as may be prescribed; (d) have custody of all papers and documents relating to Zilla Parishad; and (e) draw and disburse money out of the Zilla Parishad Funds and exercise such other powers and perform such other functions as may be prescribed. (2) The Chief Executive Officer shall attend every meeting of the Zilla Parishad and may take part in the discussion but shall not have the right to move any resolution or to vote. If in the opinion of the Chief Executive Officer any proposal before the Zilla Parishad is violative of or is inconsistent with the provisions of this Act or any other law or the rules made thereunder, it shall be his duty to bring the same to the notice of the Zilla Parishad. (3) The Chief Accounts Officer shall advise the Zilla Parishad in matters of financial policy and shall be responsible for all matters relating to the accounts of the Zilla Parishad including preparation of accounts and the budget. (4) The Chief Accounts Officer shall ensure that no expenditure is incurred except under proper sanction and in accordance with this Act and the rules and regulations made thereunder and shall disallow any expenditure not warranted by the Act or rules and regulations or for which no provision is made in the budget. 30 ----- (5) The Additional Chief Executive Officer shall assist the Chief Executive Officer in the performance of his duties. (6) The Chief Planning Officer shall advise the Zilla Parishad in matters of plan formulation and shall be responsible for all matters relating to planning of the Zilla Parishad including the preparation of plans of economic development and social justice and annual plan of the district. **77. Right to requisition records, recover money, etc.—(1) Every person in possession of money,** accounts, records or other property pertaining to a Gram Panchayat or a Zilla Parishad shall on the requisition in writing of the Chief Executive Officer for this purpose, forthwith hand over such money or deliver up such accounts, records or other property to the Chief Executive Officer or the person authorised in the requisition to receive the same. (2) The Chief Executive Officer may also take steps to recover any money due by such person in the same manner and subject to the same provisions as in the relevent Land Revenue Act, for the recovery of the arrears of land revenue from defaulters and for the purpose of requisitioning the accounts, records or for recovering any other property apertaining to the Gram Panchayat or Zilla Parishad may issue a search warrant and exercise all such powers with respect thereto as may lawfully be exercised by a Magistrate under the provisions of Chapter VII of the Code of Criminal Procedure, 1973 (2 of 1974). (3) Every person knowing where any money, accounts, records or other property apertaining to a Gram Panchayat or a Zilla Parishad are concealed shall be bound to give information of the same to the Chief Executive Officer. (4) An appeal shall lie from an order of the Chief Executive Officer under this section to the Government. CHAPTER V MISCELLANEOUS **78. Powers to revise or modify decisions of committees.—Every Gram Panchayat and every Zilla** Parishad shall have power to revise or modify any decision taken by any of its committees. **79. Powers of Gram Panchayats to make bye-laws.—(1) A Gram Panchayat may, subject to the** provisions of this Act and the rules made thereunder and with the previous sanction of the Zilla Parishad make bye-laws to carry out the purposes of this Act. (2) In making any bye-laws under sub-section (1) the Gram Panchayat may provide that a contravention thereof shall be punishable with such fine as may be prescribed. (3) Any such bye-law may also provide that a person contravening the same shall be required to remedy so far as it lies in his power, the mischief, if any, caused by such contravention. (4) All bye-laws made under this section shall be subject to the condition of previous publication and such publication shall be in such manner as may be prescribed. **80. Powers of Zilla Parishad to make Regulations.—(1) A Zilla Parishad may subject to the** provisions of this Act and the rules made thereunder and with the previous sanction of the Government, by notification, make regulations to carry out the purposes of this Act in so far as it relates to its powers and duties. (2) The regulations made under sub-section (1) shall be subject to the condition of previous publication and such publication shall be in such manner as may be prescribed. **81. Powers of Government to make model regulations and bye-laws.—(1) The Government may,** subject to the provisions of this Act and the rules made thereunder and after previous publication of the draft for not less than one month, make model regulations and bye-laws for Zilla Parishads and Gram Panchayats respectively. (2) A Gram Panchayat or a Zilla Parishad may by resolution adopt the model bye-laws or regulations, as the case may be, made under sub-section (1), and such bye-laws and regulations shall come into force 31 ----- within the jurisdiction of the Gram Panchayat or Zilla Parishad from such date as the Gram Panchayat or Zilla Parishad as the case may be, may specify in a notice published in the prescribed manner. **82. Powers of Government to dissolve and reconstitute Gram Panchayat and Zilla Parishad in** **case of alteration of area.—(1) When on account of the reason that the limits of an area of Gram** Panchayat or Zilla Parishad, are altered, the Government may by order published in the Official Gazette dissolve such Panchayat or Parishad, from a date, specified in the order and direct that Gram Panchayat or Zilla Parishad concerned:— (i) be reconstituted for the Panchayat area of which the Gram Panchayat or the district of which Zilla Parishad has been dissolved; or (ii) be established for a Panchayat area, or district which has been newly constituted. (2) The members of the Gram Panchayat or Zilla Parishad which has been dissolved under sub-section (1) shall vacate their office from the date specified in the order of the Government. (3) The Gram Panchayat or Zilla Parishad reconstituted or established under the provisions of sub-section (1) shall consist of members nominated by the Government and such members shall as far as practicable be persons who are members of the Gram Panchayat or Zilla Parishad which has been dissolved under sub-section (1). (4) The Chairpersons of Gram Panchayat or Zilla Parishad shall be elected in the manner provided in this Act. (5) The term of the Gram Panchayat or Zilla Parishad so reconstituted or established shall be for such period not exceeding six months as the Government shall by order specify. (6) Before the expiry of the term of the Gram Panchayat or Zilla Parishad constituted in accordance with the provisions of sub-section (5), a Gram Panchayat or Zilla Parishad shall be constituted in the manner provided under this Act: Provided that where the remainder of the period for which the dissolved Gram Panchayat or Zilla Parishad would have continued is less than six months it shall not be necessary to hold an election under this section for constituting a Gram Panchayat or a Zilla Parishad for such period. (7) A Gram Panchayat or Zilla Parishad constituted under sub-section (1) shall continue only for the remainder of the period for which the dissolved Gram Panchayat or Zilla Parishad would have continued had it not been so dissolved. (8) When a Gram Panchayat or a Zilla Parishad has been dissolved and reconstituted or established under this section so much of the Gram Panchayat or Zilla Parishad fund and other property vesting in the Gram Panchayat or Zilla Parishad which has been dissolved shall vest in and such portion of the debts, and obligations shall be transferred to, the Gram Panchayat or Zilla Parishad reconstituted or established under this section as the Government may direct by an order made in writing. (9) The rights and liabilities of the dissolved Gram Panchayat or Zilla Parishad in respect of civil and criminal proceedings, contracts, agreements and other matters or things arising in and relating to any part of the area subject to the authority of the Gram Panchayat or Zilla Parishad reconstituted or established shall vest in such Gram Panchayat or Zilla Parishad. (10) Any appointment, notification, notice, tax, order, scheme, licence, permission, rule, regulation or form made, issued, imposed or granted by the Gram Panchayat or Zilla Parishad which has been dissolved in respect of any part of the area subject to the authority of the Gram Panchayat or Zilla Parishad which has been reconstituted or established, shall be deemed to have been made, issued, imposed or granted by such Gram Panchayat or Zilla Parishad unless and until it is suspended by any appointment, notification, notice, form, order, scheme, licence, permission, rule and regulation made, issued, imposed or granted by such Gram Panchayat or Zilla Parishad. **83. Dissolution of Gram Panchayats and Zilla Parishad in certain other cases.—(1) If, in the** opinion of the Zilla Parishad, a Gram Panchayat exceed or abuses its powers or is not competent to perform or makes persistent default in the performance of the duties imposed on it under this Act or any 32 ----- other law for the time being in force, the Zilla Parishad may by order published in the Official Gazette, dissolve such Gram Panchayat. (2) If in the opinion of the Government, a Zilla Parishad exceeds or abuses its powers or is not competent to perform or makes persistent default in the performance of the duties imposed on it under this Act or any other law for the time being in force, the Government may, by an order published in the Official Gazette, dissolve such Zilla Parishad. (3) Before publishing an order under sub-section (1) or sub-section (2) the Zilla Parishad or the Government shall communicate to the Gram Panchayat or to the Zilla Parishad, as the case may be, the grounds on which it proposes to do so, and fix a reasonable period for the Panchayat concerned to show cause against the proposal and consider its explanation and objections, if any. (4) When a Gram Panchayat or Zilla Parishad is dissolved all the members of Gram Panchayat or Zilla Parishad shall, from the date specified in the order, vacate their office as such members. (5) If a Gram Panchayat or Zilla Parishad is dissolved:— (a) all the powers and duties of the Gram Panchayat or Zilla Parishad shall, during the period of its dissolution be exercised and performed by such person or persons as the Zilla Parishad or the Government, as the case may be, may from time to time, appoint in this behalf; (b) all property vested in the Gram Panchayat or Zilla Parishad shall during the period of dissolution vest in the Zilla Parishad or the Government, as the case may be; and (c) the person is vacating office on dissolution shall be eligible for re-election. **84. Inquiry into the affairs of the panchayats by the Government.—(1) The Government may, at** any time for reasons to be recorded in writing, cause any inquiry to be made by any of its officers in regard to any Gram Panchayat or Zilla Parishad on matters concerning it, or any matters with respect to which the sanction, approval, consent or orders of the Government is required under this Act. (2) The Officer holding such inquiry shall have the powers of the Civil Court under the Code of Civil Procedure, 1908 (5 of 1908) to take evidence and to compel attendance of witnesses and production of documents for the purposes of the inquiry. (3) The Government may make orders as to costs of inquiries made under sub-section (1) and as to the parties by whom and the funds out of which they shall be paid and such order may, on the application of the Commissioner or of any person named therein be executed as if it were a decree of a Civil Court. **85. Inspection of Development Schemes.—(1) For the purpose of efficient and economical** execution of any works or development schemes undertaken by a Gram Panchayat or Zilla Parishad an officer or person authorised by general or special order of the Government, if he considers it necessary to give technical guidance or assistance to any officer of or under the Gram Panchayat or Zilla Parishad who is charged with the execution or maintenance of any such work or development scheme, then the officer or person so authorised may periodically inspect such works or development schemes to give such guidance, assistance or advise as he thinks necessary in relation to such works or development schemes and shall forward to the Gram Panchayat or Zilla Parishad a report on the inspection made pointing out therein any irregularities noticed, and suggestions for improvement. (2) In implementation of the plans or schemes all the rules applicable to Government Departments such as for purchase, tender, quality control, technical sanctions, accounts and audit and supervision shall _mutatis mutandis be applicable in case of a Panchayat._ **86. Directions from the Government.—(1) Notwithstanding anything contained in this Act it shall** be lawful for the Government to issue directions to any Gram Panchayat or Zilla Parishad in matters relating to State and National Policies and such directions shall be binding on the Gram Panchayat or Zilla Parishad. (2) The Government may:— (a) call for any record, register or any other document in possession under the control of any Gram Panchayat or Zilla Parishad; 33 ----- (b) require any Gram Panchayat or Zilla Parishad to furnish in return, plan, estimate, statement, account or statistics; and (c) require any Gram Panchayat or Zilla Parishad to furnish any information or report on any matter connected with such Gram Panchayat or Zilla Parishad. **87. Commissioner and Chief Executive Officer’s powers in respect of Gram Panchayat and** **Zilla Parishad.—(1) The Chief Executive Officer may in respect of Gram Panchayat exercise the** following powers, namely:— (a) call for proceedings of any Gram Panchayat or any extract of any book or document in the possession of or under the control of the Gram Panchayat or any return or statement of account or report; (b) require a Gram Panchayat, to take into consideration any objection which appears to him to exist to the doing of anything which is about to be done or is being done by such Gram Panchayat or any information which appears to him to necessitate the doing of anything by such Gram Panchayat or within such period as he may fix; (c) order a duty to be performed within a specified period if a Gram Panchayat has made default in the performance of any duty and if such duty is not performed within the specified period, to appoint a person to perform such duty and direct that the expenses thereof shall be paid by the defaulting Gram Panchayat within such period as he may fix; (d) direct a Gram Panchayat to levy any tax if it has failed to do so in accordance with the provision of this Act; (e) call for meetings of the Gram Panchayat, or any of its committees if no meeting of the Gram Panchayat or its committees has been held in accordance with the provisions of this Act or rules made thereunder. (2) The Gram Panchayat may appeal to the Commissioner, against any order made under clause (c) of sub-section (1) by the Chief Executive Officer within thirty days from the date of such order. (3) The Commissioner may in respect of Zilla Parishad exercise the following powers, namely:— (a) call for proceedings of any Zilla Parishad or any extract of any book or document in the possession of or under the control of the Zilla Parishad or any return or statement of account or report; (b) require a Zilla Parishad, to take into consideration any objection which appears to him to exist to the doing of anything which is about to be done or is being done by such Zilla Parishad or any information which appears to him to necessitate the doing of anything by such Zilla Parishad or within such period as he may fix; (c) order a duty to be performed within a specified period if a Zilla Parishad has made default in the performance of any duty and if such duty is not performed within the specified period, to appoint a person to perform such duty and direct that the expenses thereof shall be paid by the defaulting Zilla Parishad within such period as he may fix; (d) call for meetings of the Zilla Parishad or any of its committees if no meeting of the Zilla Parishad or its committees has been held in accordance with the provisions of this Act or rules made thereunder. (4) The Zilla Parishad may appeal to the Government, against any order made under clause (c) of sub-section (3) by the Commissioner, within thirty days from the date of such order. **88. Power of Government and Chief Executive Officer to provide for performance of duties in** **default of Gram Panchayat or Zilla Parishad.—When the Government in case of a Zilla Parishad and** the Chief Executive Officer in case of a Gram Panchayat is informed on complaint made or otherwise, that any Zilla Parishad or Gram Panchayat has made default in performing any duty imposed on it, by or under this Act, or by or under any law for the time being in force and if the Government or Chief Executive Officer, as the case may be, is satisfied after due enquiry that any Zilla Parishad or Gram 34 ----- Panchayat, has failed in the performance of such duty, the Government or the Chief Executive Officer, as the case may be, may fix a period for the performance of that duty: Provided that no such period shall be fixed unless the Zilla Parishad or Gram Panchayat concerned has been given an opportunity to show cause why such an order shall not be made. **89. Zilla Parishad's power of suspending the executions of order, etc., of Gram Panchayat.—(1)** If in the opinion of the Zilla Parishad the execution of any order or resolution of a Gram Panchayat or any order of any authority or Officer of a Gram Panchayat or the doing anything which is about to be done, or is being done, by or on behalf of a Gram Panchayat is unjust, unlawful, improper or is causing or is likely to cause injury or annoyance to the public or to lead to a breach of the peace, it may by order suspend the execution of or prohibit the doing thereof. (2) When the Zilla Parishad makes an order under sub-section (1) it shall forthwith forward to the Government and to the Gram Panchayat affected thereby a copy of the order with a statement of the reasons for making it and it shall be in the discretion of the Government to confirm or resind the order or to direct that it shall continue to be in force with or without modification permanently or for such period as it thinks fit: Provided that no order of the Zilla Parishad made under this section shall be confirmed, revised or modified by the Government without giving the Gram Panchayat reasonable opportunity of showing cause against the said order. **90. Government’s power of suspending execution of unlawful orders or resolutions.—(1) If on** the receipt of a report from the Chief Executive Officer in this behalf or otherwise the Government is of the opinion that execution of any order or resolution of Zilla Parishad or the doing of anything which is about to be done or is being done by on behalf of a Zilla Parishad is unjust, unlawful, or improper or is causing or is likely to cause injury or annoyance to the public or to lead to a breach of the peace, it may, by an order suspend the execution or prohibit the doing thereof. (2) When the Government makes an order under sub-section (1), it shall forthwith forward to the Zilla Parishad affected thereby a copy of the order with a statement of reasons for making it and the Government may confirm or rescind the order or direct that it shall continue to be in force with or without modification permanently or for such period as it thinks fit: Provided that no order under this sub-section shall be made by the Government without giving the Zilla Parishad concerned a reasonable opportunity of showing cause against the said order. **91. Purchase of store and equipment.—(1) The Government may by general or special order** provide for all any of the following matters, namely:— (a) the manner in which purchase of stores, equipments, machineries and other articles required by the Zilla Parishad or Gram Panchayat shall be made by them; (b) the manner in which tender for works, contracts and supplies shall be invited and examined and accepted by the Gram Panchayat or Zilla Parishad; (c) the manner in which works, and development schemes may be executed and inspected and payment may be made in respect of such works an schemes; and (d) constitution of committee for the purposes of this sub-section. (2) Save as otherwise expressly provided in sub-section (1), in respect of all other matters relating to withdrawal of funds, form of bills, incurring of expenditure maintenance of accounts, rendering of accounts and such other matters, the rules, of implementation as applicable to Departments of the Government shall mutatis mutandis apply in case of a Gram Panchayat and Zilla Parishad. **92. Power to appoint Administrator in certain cases.—(1) Whenever,—** (a) any general election to a Zilla Parishad under this Act or any proceedings consequent thereon has been stayed by an order of a competent court, or authority; or 35 ----- (b) all the members or more than two-thirds of the members of a Zilla Parishad have resigned, the Government shall by notification in the Official Gazette appoint an Administrator for such period as may be specified in the notification and may, by like notification, curtail or extend the period of such appointment, so however, that the total period of such appointment shall not exceed six months. (2) Notwithstanding anything contained in this Act, on the appointment of an Administrator under sub-section (1) the Zilla Parishad and the Committees thereof and the Adhyaksha, or Up-Adhyaksha of such Zilla Parishad charged with carrying out the provisions of this Act, or any other law, shall cease to exercise any powers and perform and discharge any duties or functions conferred or imposed on them by or under this Act or any other law and all such powers shall be exercised and all such duties and functions shall be performed and discharged by the Administrator during the period of such appointment. **93. Removal of members for misconduct, etc.—The Government if it thinks fit on the** recommendation of the Gram Panchayat or Zilla Parishad or otherwise, may remove any member after giving him an opportunity of being heard and after such enquiry as it deems necessary if such members has been guilty of misconduct in the discharge of his duties or of any disgraceful conduct or has become incapable of performing his duties as a member. **94. Restrictions on withdrawal of powers and functions from the Panchayats.—(1)** Notwithstanding the transfer of any power, functions and duties in respect of any matter to a Panchayat under this Act the Government on a proposal from Panchayat in that behalf or where it is satisfied that by reason of a change in the nature of the matter such as the conversion of a primary health centre into a secondary health centre or hospital or the conversion of a seed multiplication farm into an agricultural research farm or a road becoming a part of a highway, the matter would cease to be a matter in relevant Panchayat functions list and it is necessary to withdraw from the Panchayat powers, functions or duties in respect of such matter, may, by notification in the Official Gazette, withdraw such powers, functions and duties with effect from the date specified in the notification and make such incidental and consequential orders as may be necessary to provide for matters including the taking over of the property, right and liabilities, if any vesting in the Panchayat and of the staff, if any, which may have been transferred to the Panchayat as the case may be. **95. Preparation of development plans.—(1) Every Gram Panchayat shall prepare every year a** development plan and submit it to the Zilla Parishad before such date and in such form as may be prescribed. (2) Every Zilla Parishad shall prepare every year a development plan of the District after including the development plans of the Gram Panchayat and submit it to the District Planning Committee constituted under section 96 of this Act. **96. District Planning Committee.—(1) The Government shall constitute in every district a District** Planning Committee to consolidate the plans prepared by the Zilla Parishad, Gram Panchayats, Nagar Panchayat, Municipal Council and Municipal Corporation in the district and to prepare a draft development plan for the district as a whole. (2) The District Planning Committee shall consist of— (a) members of the House of the People who represent the whole or part of the district; (b) all the members or the State Legislative Assembly whose constituencies lie within the district; (c) Adhyaksha of the Zilla Parishad; (d) Mayor or the President of the Municipal Corporation or the Municipal Council respectively, having jurisdiction over the headquarters of the district; and (e) such number of persons not less than four-fifth of the total number of members of the Committee as may be specified by the Government elected in the prescribed manner from amongst the members of the Zilla Parishad, Nagar Panchayat and Councillors of the Municipal Corporation and the Municipal Councils in the district, in proportion to the ratio between the population of the rural areas and of the urban areas in the district. (3) The Chairman of the District Co-operative Banks and of the Land Development Bank shall be permanent invitees of the Committee. 36 ----- (4) The Chief Executive Officer shall be the Secretary of the Committee. (5) The Deputy Commissioner of the districts shall be the Chairman of the District Planning Committee. (6) The District Planning Committee shall consolidate the plans prepared by the Zilla Parishad, Gram Panchayat, Nagar Panchayat, Municipal Council and the Municipal Corporations in the district and prepare a draft development plan for the district as a whole. (7) Every District Planning Committee shall in preparing the draft development plan:— (a) have regard to— (i) the matters of common interest between the Zilla Parishad, Gram Panchayats, Nagar Panchayats, Municipal Corporation and Municipal Councils in the district including spatial planning sharing of water and other physical and natural resource, the integrated development of infrastructure and environmental conservation, (ii) the extent and type of available resources whether financial or otherwise; (b) consult such institutions and organisations as the Government may by order specify. (8) The Chairman of every District Planning Committee shall forward the development plan, as recommended by such Committee to the Government. **97. Finance Commission for Panchayats.—(1) The Governor shall constitute every five years a** Finance Commission to review the financial position of the Zilla Parishads and Gram Panchayats and to make recommendations to the Government as to— (a) the principles which should govern— (i) the distribution between the State and the Zilla Parishads and the Gram Panchayats and the net proceeds of the taxes, duties, tolls and fees leviable by the Government which may be divided between them and allocation between the Zilla Parishad and Gram Panchayat of their respective shares of such proceeds; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to or appropriated by the Zilla Parishad and Gram Panchayat; (iii) the grants-in-aid to the Zilla Parishads and Gram Panchayats from the Consolidated Fund of the State; (b) the measures needed to improve the financial position of the Zilla Parishads and Gram Panchayats; and (c) any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the Zilla Parishads and Gram Panchayats. (2) The Finance Commission shall consist of a member. (3) The member of Finance Commission shall be appointed in such manner as may be prescribed from among persons who— (a) have experience in public affairs; or (b) are or have been, or are qualified to be appointed as a Judge of a High Court; or (c) have special knowledge of the finances and accounts of Governments; or (d) have had wide experience in financial matters and in administration; or (e) have special knowledge of economics. (4) The Finance Commission shall determine its procedure. 37 ----- (5) The member of the Finance Commission may resign his office by writing under his hand and addressed to the Governor but he shall continue in office until his resignation is accepted by the Governor. (6) The casual vacancy occurring due to the resignation of the member under sub-section (5) or for any other reason may be filled by fresh appointment and a member so appointed shall hold office for the remaining period for which the member in whose place as he was appointed would have held office. (7) In the performance of its functions, the Commission shall have the following powers, namely:— (a) to call for any record from any officer or authority; (b) to summon any person to give evidence or produce records; and (c) such other powers as may be prescribed. (8) The Governor shall cause every recommendation made by the Finance Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before the State Legislature. **98. State Election Commission.—(1) There shall be a State Election Commission constituted by the** Government for superintendence, direction and control of the preparation of electoral rolls for, and the conduct of all elections to the Panchayat bodies in the State under this Act and the rules made thereunder. (2) The Commission shall consist of a State Election Commissioner to be appointed by the Governor. (3) The conditions of services and tenure of office of the State Election Commissioner shall be such as the Governor may by rule determine: Provided that the State Election Commissioner shall not be removed from his office except in like manner and on the like grounds as a Judge of the High Court and the conditions of service of the State Election Commissioner shall not be varied to his disadvantage after his appointment. (4) The Government shall, when so requested by the State Election Commission, make available to the State Election Commission such staff as may be necessary for the discharge of the functions conferred on the State Election Commission under this Act. **99. Determination of elected members after Census.—Upon the publication of the figures of each** Census, the number of elected members of a Panchayat shall be determined by the State Government on the basis of the population of the Panchayat area as ascertained at that Census: Provided that the determination of the number as aforesaid shall not affect the then composition of the Panchayats existing at the time of the publication of Census under this section until the expiry of its term. **100. Qualification of membership for election to Panchayat or Zilla Parishad.—Every person** whose name is in the list of voters within the Gram Panchayat or Zilla Parishad constituency and is ordinarily resident within the Gram Panchayat or Zilla Parishad area shall, unless disqualified under this Act or under any other law for the time being in force, be qualified to be elected as a member of the Gram Panchayat: Provided that in the case of seats reserved for the Scheduled Castes or Scheduled Tribes or Back ward Classes and women, no person who is not a member of any of the Scheduled Castes or Scheduled Tribes or Backward Classes or is not a women, as the case may be, shall be qualified to be elected to such seat. **101. Disqualification for Memberships.—(1) A person shall be disqualified for being chosen and** for being a member of a Gram Panchayat or Zilla Parishad,— (a) if he has not attained the age of twenty-one years; (b) if he is so disqualified by or under any law for the time being in force for the purposes of elections to the State Legislatures; 38 ----- (c) if an order has been passed against him under section 117 of the Code of Criminal Procedure, 1973 (2 of 1974), in proceedings instituted under section 110 of the Code, such order not having been subsequently revised or quashed; or (d) if he has been dismissed from the service under any local authority; or (e) if, having been a legal or medical practitioner or a chartered accountant, his name has been removed from the rolls or he is suspended by order of a competent authority, the disqualification in the latter case being operative during the period of such suspension; or (f) if he has been removed from membership of any local authority; or (g) if he holds any office of profit under any local or other authority subject to the control of the Central Government, the State Government or the Government of any other State, other than such offices as are declared by rules made under this Act not to disqualify the holder. _Explanation.—For the purpose of this clause, a person shall not be deemed to hold any office of_ profit under the Gram Panchayat or Zilla Parishad by reason only that he is a Pradhan or Up-Pradhan of the Gram Panchayat or an Adhyaksha or Up-Adhyaksha of Zilla Parishad; (h) if, save as hereinafter provided he has directly or indirectly any share or interest in any work done by order of the Gram Panachayat or the Zilla Parishad or in any contract or employment with, or under, or by, or on behalf of the Gram Panachayat or the Zilla Parishad; or (i) if he is employed as a paid legal practitioner on behalf of the Gram Panchayat or the Zilla Parishad or accepts employments as legal practitioner against the Gram Panchayat or Zilla Parishad; or (j) if arrears of any kind are due by him to the Gram Panchayat or the Zilla Parishad under this Act: Provided that,— (a) the disqualification in clause (b) shall cease to operate after the expiry of the period during which a person is ordered to furnish security; (b) the disqualification in clause (d) or clause (e) shall cease to operate after the expiry of five years from the date of such sentence or dismissal, or disenrolment or earlier by an order of the Government; (c) the disqualification in clause (f) shall cease to operate after the expiry of five years from the date of such removal; (d) a person shall not be deemed to have incurred disqualification under clause (h) by reason of his,— (i) having a share in any joint stock company or a share or interest in any association registered under the Manipur Societies Registration Act, 1989 (1 of 1990) in any co-operative society, which shall contract with or be employed by or on behalf of the Gram Panchayat or the Zilla Parishad; or (ii) having a share or interest in any newspaper in which any advertisement relating to the affairs of the Gram Panchayat or the Zilla Parishad is inserted; or (iii) holding a debenture or being otherwise concerned in any loan raised by or on behalf of the Gram Panchayat or the Zilla Parishad. (2) If any question arises as to whether a member of a Panchayat at any level has become subject to any of disqualification mentioned in sub-section (1), the question referred for the decision of Election Tribunal. (3) If a person who is chosen as a member of a Panchayat is or becomes Member of the House of the People, the Council of States, the State Legislative Assembly or the State Legislative Council, or is or becomes a Municipal Councillor or a Councillor of Municipal Corporation or a Member of a Sanitary 39 ----- Board, and other Panchayat, then within fifteen days from the date of commencement of the term of office of a Member of the House of the People, the Council of States, the State Legislative Assembly or State Legislative Council or of a Municipal Councillor or a Councillor of a Municipal Corporation or a Member of such other Panchayat his seat in the Panchayat shall become vacant unless he has previously resigned his seat in the House of the People, the Council of States, the State Legislative Assembly or the State Legislative Council or the Municipal Corporation of the Board or such other Panchayat, as the case may be. **102. Power of State Government to rescind or suspend resolution of a Gram Panchayat or Zilla** **Parishad.—(1) The State Government may, within a period of six months, by order in writing, rescind** any resolution passed by a Gram Panchayat or a Zilla Parishad, if in its opinion such resolution,— (a) has not been legally passed; or (b) is in excess, or abuse of the powers conferred by, or under this Act or in rules made thereunder. (2) The State Government shall, before taking any such action under sub-section (1) give the Gram Panchayat or the Zilla Parishad concerned an opportunity for making representation against the proposed order. **103. Constitution of Election Tribunal.—(1) The Government shall constitute Election Tribunal** consisting of one member to be appointed by that Government to dispose of:— (i) all election petitions challenging elections to a Panchayat; (ii) matters relating to disqualification of a member of the Panchayat; and (iii) any other election matter, in such manner as may be prescribed. (2) The Headquarter of the Tribunal shall be at such place as may be notified. (3) The decision of the Election Tribunal made under sub-section (1) shall be final. **104. Annual Administration report.—(1) As soon as may be after the first day of April in every** year and not later than such date as may be fixed by the Government, the Chief Executive Officer of the Zilla Parishad shall prepare a report on the administration of the Zilla Parishad during the preceding year in such form and with such details as the Government may direct and submit the report to the Zilla Parishad. After approval by the Zilla Parishad the report shall be submitted to the Government. (2) The report submitted to the Government under sub-section (1) shall together with a memorandum by the Government reviewing the working of the Zilla Parishad be laid before the House of the State Legislature. **105. Power to make Rules.—(1) The State Government may, by notification In the Official Gazette,** make rules for carrying out the purposes of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the procedure for convening and holding the meetings of Gram Sabha under section 6; (b) the manner for publication of Electoral Rolls of Gram Panchayat and the authority competent to publish the same as referred to in sub-section (1) of section 16; (c) the manner for filing an appeal against the order of the authority publishing the Electoral Rolls as referred to in sub-section (5) of section 13; (d) the rotation of the reserved seats in constituencies of a Gram Panchayat under sub-sections (1) and (3) of section 19; (e) the procedure for election of Pradhan and members of Gram Panchayat under section 21; (f) the manner for filling up the casual vacancies in Gram Panchayat referred to in sub-section (1) of section 23; 40 ----- (g) the payment of honorarium and other allowances to Pradhan and Up-Pradhan under sub-section (2) of section 27; (h) powers, functions and duties of Pradhan and Up-Pradhan as referred to in clause (g) of sub-section (1) and clause (c) of sub-section (2) of section 28; (i) the authority competent to receive and accept the resignation of Pradhan and Up-Pradhan; (j) the officers to whom the notice of meeting of the Gram Panchayat is to be forwarded by the Secretary under sub-section (3) of section 32; (k) the manner for co-opting the members by Standing Committee under clause (b) of sub-section (2) of section 38; (l) the custody in which Gram Panchayat fund shall be kept as referred to in clause (c) of sub-section (2) of section 39; (m) the procedure for preparation and approval of the budget of Gram Panchayat under section 42 and maintenance of accounts and its audit under sections 43 and 44; (n) appointment, terms and conditions of service, pay and allowances and other service conditions of the Secretary as referred to in section 45; (o) the manner of election of members to Zilla Parishad under section 50; (p) the manner for filling up the casual vacancy in Zilla Parishad referred to in section 51; (q) the rotation of reserved seats in constituencies of Zilla Parishad under sub-sections (1) and (3) of section 52; (r) the manner for reservation of seats of Adhyaksha and Up-Adhyaksha of Zilla Parishad referred to in sub-section (2) of section 54; (s) salary and allowances of Adhyaksha and Up-Adhyaksha and sitting fee and other allowances to the members of Zilla Parishad under section 55; (t) powers, functions and duties of Adhyaksha and Up-Adhyaksha referred to in section 56; (u) the authority competent to receive and accept the resignation of Adhyaksha and Up-Adhyaksha under sub-section (2) of section 57; (v) the additional duties to be performed by the Committees under sub-section (8) of section 66; (w) the maximum rate of taxes to be levied by a Zilla Parishad; (x) preparation and approval of budget for Zilla Parishad under section 72; (y) maintenance of accounts of Zilla Parishad and their audit referred to in sections 73 and 74; (z) the terms and conditions for appointment of Additional Chief Executive Officer, Chief Accounts Officer, Chief Planning Officer and other staff members under section 75; (aa) the superintendence and control of the affairs of Zilla Parishad by the Chief Executive Officer referred to in clauses (c) and (e) of sub-section (1) of section 76; (ab) the limits of fine to be imposed by Gram Panchayat under sub-section (2) of section 79 and the manner of publication of bye-laws of Gram Panchayat under sub-section (4) of the said section; (ac) the manner for appointment of member of Finance Commission referred to in sub-section (3) of section 97. (3) Every rule made under this Act shall be laid, as soon as may be, after it is made, before the Legislative Assembly while it is in session, for a total period of twenty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the successive sessions aforesaid, the House agrees in making modification in the rule or that the rule should not be made, the rule shall thereafter have effect only in such modified 41 ----- form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **106. Bar to interference by Courts in electoral matters.—Notwithstanding anything in this Act—** (a) the validity of any law relating to the delimitation of constituencies or the allotment of seat to such constituencies, made or purporting to be made under the relevant provision of the Constitution of India shall not be called in question in any Court; (b) no election to any Panchayat shall be called in question in any Court. **107. Taking of oath.—Every member, Adhyaksha or Up-Adhyaksha of the Zilla Parishad and every** Member, Pradhan or Up-Pradhan of a Gram Panchayat shall before taking his seat, make at a meeting of the Zilla Parishad or Gram Panchayat as the case may be, an oath or affirmation of his allegiance to the Constitution of India in the following form, namely:— I,............................................................... being a Member/Adhyaksha/Up-Adhyaksha/Pradhan/ Up-Pradhan of the.................................... do swear in the name of God (or solemnly affirm) that I will bear true faith and allegiance to the Constitution of India as by law established and that I will faithfully discharge the duty upon which I am about to enter. **108. Repeal and savings.—(1) The Manipur Panchayati Raj Act, 1975 (Manipur Act 12 of 1975) is** hereby repealed. (2) Notwithstanding the repeal of the Manipur Panchayati Raj Act, 1975 (hereinafter referred to as the repealed Act) the repeal shall not affect:— (a) the previous operations of the repealed Act or anything duly done or suffered thereunder; or (b) any right, privilege, obligation or liability acquired, accrued or incurred under the repealed Act; or (c) any penalty, forfeiture or punishment incurred in respect of any offence committed under the repealed Act; or (d) any investigation, legal proceedings or remedy in respect of such right, privilege, obligation, liability, forfeiture or punishment as aforesaid, and any such investigation, legal proceedings or remedy may be instituted, continued or enforced, and any such penalty, foreiture or punishment may be imposed as if this Act had not been passed. **109. Removal of difficulties.—If any difficulty arises in giving effect to the provisions of this Act,** the Government, may by order, published in the Official Gazette as the occasion may require, do anything which appears to it to be necessary to remove the difficulty. 42 -----
8-Jul-1994
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The Transplantation of Human Organs and Tissues Act, 1994
https://www.indiacode.nic.in/bitstream/123456789/1962/1/199442.pdf
central
# THE TRANSPLANTATION OF HUMAN ORGANS AND TISSUES ACT, 1994 _______ ARRANGEMENT OF SECTIONS _______ CHAPTER I PRELIMINARY SECTIONS 1. Short title, application and commencement. 2. Definitions. CHAPTER II AUTHORITY FOR THE REMOVAL OF HUMAN ORGANS OR TISSUES OR BOTH 3. Authority for removal of human organs or tissues or both. 4. Removal of human organs or tissues or both not to be authorised in certain cases. 5. Authority for removal of human organs or tissues or both in case of unclaimed bodies in hospital or prison. 6. Authority for removal of human organs or tissues or both from bodies sent for post-mortem examination for medico-legal or pathological purposes. 7. Preservation of human organs or tissue or both. 8. Savings. 9. Restrictions on removal and transplantation of human organs or tissues or both. CHAPTER III REGULATION OF HOSPITALS 10. Regulation of hospital conducting the removal, storage or transplantation of human organs or tissue or both. 11. Prohibition of removal or transplantation of human organs or tissues or both for any purpose other than therapeutic purpose. 12. Explaining effects, etc., to donor and recipient. CHAPTER IV APPROPRIATE AUTHORITY 13. Appropriate Authority. 13A. Advisory Committees to advise Appropriate Authority. 13B. Powers of Appropriate Authority. 13C. National Human Organs or tissues or both and Tissues Removal and Storage Network. 13D. National registry. CHAPTER V REGISTRATION OF HOSPITALS 14. Registration of hospitals engaged in removal, storage or transplantation of human organs or tissues or both. 14A. Registration of Tissue Bank. 1 ----- SECTIONS 15. Certificate of registration. 16. Suspension or cancellation of registration. 17. Appeals. CHAPTER VI OFFENCES AND PENALTIES 18. Punishment for removal of human organ without authority. 19. Punishment for commercial dealings in human organs. 19A. Punishment for illegal dealings in human tissues. 20. Punishment for contravention of any other provision of this Act. 21. Offences by companies. 22. Cognizance of offences. CHAPTER VII MISCELLANEOUS 23. Protection of action taken in good faith. 24. Power to make rules. 25. Repeal and savings. 2 ----- # THE TRANSPLANTATION OF HUMAN ORGANS AND TISSUES ACT, 1994 ACT NO. 42 OF 1994 [8th July, 1994.] # An Act to provide for the regulation of removal, storage and transplantation of 1[human organs and tissues for therapeutic purposes and for the prevention of commercial # dealings in human organs and tissues] and for matters connected therewith or incidental thereto. WHEREAS it is expedient to provide for the regulation of removal, storage and transplantation of 2[human organs or tissues or both] for therapeutic purposes and for the prevention of commercial dealings in [2][human organs or tissues or both]; AND WHEREAS in Parliament has no power to make laws for the States with respect to any of the matters aforesaid except as provided in articles 249 and 250 of the Constitution; AND WHEREAS in pursuance of clause (1) of article 252 of the Constitution, resolutions have been passed by all the Houses of the Legislatures of the States of Goa, Himachal Pradesh and Maharashtra to the effect that the matters aforesaid should be regulated in those States by Parliament by law; BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, application and commencement.—(1) This Act may be called the Transplantation of** 3[Human Organs and Tissues] Act, 1994. (2) It applies, in the first instance, to the whole of the States of Goa, Himachal Pradesh and Maharashtra and to all the Union territories and it shall also apply to such other State which adopts this Act by resolution passed in that behalf under clause (1) of article 252 of the Constitution. (3) It shall come into force in the States of Goa, Himachal Pradesh and Maharashtra and in all the Union territories on such date[4] as the Central Government may, by notification, appoint and in any other State which adopts this Act under clause (1) of article 252 of the Constitution, on the date of such adoption; and any reference in this Act to the commencement of this Act shall, in relation to any State or Union territory, means the date on which this Act comes into force in such State or Union territory. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “advertisement” includes any form of advertising whether to the public generally or to any section of the public or, individually to selected persons; (b) “Appropriate Authority” means the Appropriate Authority appointed under section 13; (c) “Authorisation Committee” means the committee constituted under clause (a) or clause (b) of sub-section (4) of section 9; (d) “brain-stem death” means the stage at which all functions of the brain-stem have permanently and irreversibly ceased and is so certified under sub-section (6) of section 3; (e) “deceased person” means a person in whom permanent disappearance of all evidence of life occurs, by reason of brain-stem death or in a cardio-pulmonary sense, at any time after live birth has taken place; 1. Subs. by Act 16 of 2011, s. 2, for “human organs for therapeutic purposes and for the prevention of commercial dealings in human organs” (w.e.f. 10-1-2014). 2. Subs. by s. 4, ibid., for “human organs” (w.e.f. 10-1-2014). 3. Subs. by s. 3, ibid., for “Human Organs” (w.e.f. 10-1-2014). 4. 4th February, 1995, vide Notification No. S.O. 80(E), dated the 4th February, 1995, see Gazette of India, Extraordinary, Part II, sec.3(ii). Extended to the Union territory of Jammu and Kashmir and Union territory of Ladakh by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 3 ----- (f) “donor” means any person, not less than eighteen years of age, who voluntarily authorises the removal of any of his human organs for therapeutic purposes under sub-section (1) or sub-section (2) of section 3; (g) “hospital” includes a nursing home, clinic, medical centre, medical or teaching institution for therapeutic purposes and other like institution; (h) “human organ” means any part of a human body consisting of a structured arrangement of tissues which, if wholly, removed, cannot be replicated by the body; [1][(ha) “Human Organ Retrieval Centre” means a hospital,— (i) which has adequate facilities for treating seriously ill patients who can be potential donours of organs in the event of death; and (ii) which is registered under sub-section (1) of section 14 for retrieval of human organs; (hb) “minor” means a person who has not completed the age of eighteen years;] [2][(i) “near relative” means spouse, son, daughter, father, mother, brother, sister, grandfather, grandmother, grandson or granddaughter;] (j) “notification” means a notification published in the Official Gazette; (k) “payment” means payment in money or money’s worth but does not include any payment for defraying or reimbursing— (i) the cost of removing, transporting or preserving the [3][human organ or tissue or both] to be supplied; or (ii) any expenses or loss of earnings incurred by a person so far as reasonably and directly attributable to his supplying any human organ from his body; (l) “prescribed” means prescribed by rules made under this Act; (m) “recipient” means a person into whom any [3][human organ or tissue or both] is, or is proposed to be, transplanted; (n) “registered medical practitioner” means a medical practitioner who possesses any recognised medical qualification as defined in clause (h) of section 2 of the Indian Medical Council Act, 1956 (102 of 1956), and who is enrolled on a State Medical Register as defined in clause (k) of that section; (o) “therapeutic purposes” means systematic treatment of any disease or the measures to improve health according to any particular method or modality; [4]*** 5[(oa) “tissue” means a group of cells, except blood, performing a particular function in the human body; (ob) “Tissue Bank” means a facility registered under section 14A for carrying out any activity relating to the recovery, screening, testing, processing, storage and distribution of tissues, but does not to include a Blood Bank;] (p) “transplantation” means the grafting of any human organ from any living person or deceased person to some other living person for therapeutic purposes; [5][(q) “transplant co-ordinator” means a person appointed by the hospital for co-ordinating all matters relating to removal or transplantation of human organs or tissues or both and for assisting the authority for removal of human organs in accordance with the provisions of sections 3.] 1. Ins. by Act 16 of 2011, s. 5 (w.e.f. 10-1-2014). 2. Subs. by s. 5, ibid., for clause (i) (w.e.f. 10-1-2014). 3. Subs. by s. 4, ibid., for “human organ” (w.e.f. 10-1-2014). 4. The word “and” omitted by s. 5, ibid. (w.e.f. 10-1-2014). 5. Ins. by s. 5, ibid. (w.e.f. 10-1-2014). 4 ----- CHAPTER II AUTHORITY FOR THE REMOVAL OF [1][HUMAN ORGANS OR TISSUES OR BOTH] **3. Authority for removal of** [1][human organs or tissues or both].—(1) Any donor may, in such manner and subject to such conditions as may be prescribed, authorise the removal, before his death, of any [2][human organ or tissue or both] of his body for therapeutic purposes. [3][(1A) For the purpose of removal, storage or transplantation of such human organs or tissues or both, as may be prescribed, it shall be the duty of the registered medical practitioner working in a hospital, in consultation with transplant co-ordinator, if such transplant co-ordinator is available,— (i) to ascertain from the person admitted to the Intensive Care Unit or from his near relative that such person had authorised at any time before his death the removal of any human organ or tissue or both of his body under sub-section (2), then the hospital shall proceed to obtain the documentation for such authorisation; (ii) where no such authority as referred to in sub-section (2) was made by such person, to make aware to that person or near relative for option to authorise or decline for donation of human organs or tissues or both; (iii) to require the hospital to inform in writing to the Human Organ Removal Centre for removal, storage or transplantation of human organs or tissues or both of the donor identified in clauses (i) and (ii) in such manner as may be prescribed (1B) The duties mentioned under clauses (i) to (iii) of sub-section (1A) from such date, as may be prescribed, shall also apply in the case of a registered medical practitioner working in an Intensive Care Unit in a hospital which is not registered under this Act for the purpose of removal, storage or transplantation of human organs or tissues or both.] (2) If any donor had, in writing and in the presence of two or more witnesses (at least one of whom is a near relative of such person), unequivocally authorised at any time before his death, the removal of any human organ of his body, after his death, for therapeutic purposes, the person lawfully in possession of the dead body of the donor shall, unless he has any reason to believe that the donor had subsequently revoked the authority aforesaid, grant to a registered medical practitioner all reasonable facilities for the removal, for therapeutic purposes, of that [2][human organ or tissue or both] from the dead body of the donor. (3) Where no such authority as is referred to in sub-section (2), was made by any person before his death but no objection was also expressed by such person to any of his [1][human organs or tissues or both] being used after his death for therapeutic purposes, the person lawfully in possession of the dead body of such person may, unless he has reason to believe that any near relative of the deceased person has objection to any of the deceased person’s [1][human organs or tissues or both] being used for therapeutic purposes, authorise the removal of any [2][human organ or tissue or both] of the deceased person for its use for therapeutic purposes. (4) The authority given under sub-section (1) or sub-section (2) or, as the case may be, sub-section (3) shall be sufficient warrant for the removal, for therapeutic purposes, of the [2][human organ or tissue or both]; but no such removal shall be made by any person other than the registered medical practitioner: 3[Provided that a technician possessing such qualifications and experience, as may be prescribed, may enucleate a cornea.] (5) Where any [2][human organ or tissue or both] is to be removed from the body of a deceased person, the registered medical practitioner shall satisfy himself, before such removal, by a personal examination of the body from which any [2][human organ or tissue or both] is to be removed, that life is extinct in such body or, where it appears to be a case of brain-stem death, that such death has been certified under sub-section (6). (6) Where any [2][human organ or tissue or both] is to be removed from the body of a person in the event of his brain-stem death, no such removal shall be undertaken unless such death is certified, in such 1. Subs. by Act of 16 of 2011, s. 4, for “human organs” (w.e.f. 10-1-2014). 2. Subs. by s. 4, ibid., for “human organ” (w.e.f. 10-1-2014). 3. Ins. by s. 6, ibid. (w.e.f. 10-1-2014). 5 ----- form and in such manner and on satisfaction of such conditions and requirements as may be prescribed, by a Board of medical experts consisting of the following, namely:— (i) the registered medical practitioner in charge of the hospital in which brain-stem death has occurred; (ii) an independent registered medical practitioner, being a specialist, to be nominated by the registered medical practitioner specified in clause (i), from the panel of names approved by the Appropriate Authority; (iii) a neurologist or a neurosurgeon to be nominated by the registered medical practitioner specified in clause (i), from the panel of names approved by the Appropriate Authority: [1]*** [2][Provided that where a neurologist or a neurosurgeon is not available, the registered medical practitioner may nominate an independent registered medical practitioner, being a surgeon or a physician and an anaesthetist or intensivist subject to the condition that they are not members of the transplantation team for the concerned recipient and to such conditions as may be prescribed;] (iv) the registered medical practitioner treating the person whose brain-stem death has occurred. (7) Notwithstanding anything contained in sub-section (3), where brain-stem death of any person, less than eighteen years of age, occurs and is certified under sub-section (6), any of the parents of the deceased person may give authority, in such form and in such manner as may be prescribed, for the removal of any [3][human organ or tissue or both] from the body of the deceased person. **4. Removal of [4][human organs or tissues or both] not to be authorised in certain cases.—(1) No** facilities shall be granted under sub-section (2) of section 3 and no authority shall be given under sub-section (3) of that section for the removal of any [3][human organ or tissue or both] from the body of a deceased person, if the person required to grant such facilities, or empowered to give such authority, has reason to believe that an inquest may be required to be held in relation to such body in pursuance of the provisions of any law for the time being in force. (2) No authority for the removal of any [3][human organ or tissue or both] from the body of a deceased person shall be given by a person to whom such body has been entrusted solely for the purpose of interment, cremation or other disposal. **5. Authority for removal of [4][human organs or tissues or both] in case of unclaimed bodies in** **hospital or prison.—(1) In the case of a dead body lying in a hospital or prison and not claimed by any** of the near relatives of the deceased person within forty-eight hours from the time of the death of the concerned person, the authority for the removal of any [3][human organ or tissue or both] from the dead body which so remains unclaimed may be given, in the prescribed form, by the person in charge, for the time being, of the management or control of the hospital or prison, or by an employee of such hospital or prison authorised in this behalf by the person in charge of the management or control thereof. (2) No authority shall be given under sub-section (1) if the person empowered to give such authority has reason to believe that any near relative of the deceased person is likely to claim the dead body even though such near relative has not come forward to claim the body of the deceased person within the time specified in sub-section (1). **6. Authority for removal of** [4][human organs or tissues or both] from bodies sent for **post-mortem examination for medico-legal or pathological purposes.—Where the body of a person** has been sent for post-mortem examination— (a) for medico-legal purposes by reason of the death of such person having been caused by accident or any other unnatural cause; or (b) for pathological purposes, 1. The word “and” omitted by Act 16 of 2011, s. 6 (w.e.f. 10-1-2014). 2. Ins. by s. 6, ibid. (w.e.f. 10-1-2014). 3. Subs. by s. 4, ibid., for “human organ” (w.e.f. 10-1-2014). 4. Subs. by s. 4, ibid., for “human organs” (w.e.f. 10-1-2014). 6 ----- the person competent under this Act to give authority for the removal of any [1][human organ or tissue or both] from such dead body may, if he has reason to believe that such [1][human organ or tissue or both] will not be required for the purpose for which such body has been sent for post-mortem examination, authorise the removal, for therapeutic purposes, of that [1][human organ or tissue or both] of the deceased person provided that he is satisfied that the deceased person had not expressed, before his death, any objection to any of his [2][human organs or tissues or both] being used, for therapeutic purposes after his death or, where he had granted an authority for the use of any of his [2][human organs or tissues or both] for therapeutic purposes, after his death, such authority had not been revoked by him before his death. **7. Preservation of [2][human organs or tissues or both].—After the removal of any [1][human organ** or tissue or both] from the body of any person, the registered medical practitioner shall take such steps for the preservation of the [1][human organ or tissue or both] so removed as may be prescribed. **8. Savings.—(1) Nothing in the foregoing provisions of this Act shall be construed as rendering** unlawful any dealing with the body or with any part of the body of a deceased person if such dealing would have been lawful if this Act had not been passed. (2) Neither the grant of any facility or authority for the removal of any [1][human organ or tissue or both] from the body of a deceased person in accordance with the provisions of this Act nor the removal oil any [1][human organ or tissue or both] from the body of a deceased person in pursuance of such authority shall be deemed to be an offence punishable under section 297 of the Indian Penal Code (45 of 1860). **9. Restrictions on removal and transplantation of [2][human organs or tissues or both].—(1) Save** as otherwise provided in sub-section (3), no [1][human organ or tissue or both] removed from the body of a donor before his death shall be transplanted into a recipient unless the donor is a near relative of the recipient. [3][(1A) Where the donor or the recipient being near relative is a foreign national, prior approval of the Authorisation Committee shall be required before removing or transplanting human organ or tissue or both: Provided that the Authorisation Committee shall not approve such removal or transplantation if the recipient is a foreign national and the donor is an Indian national unless they are near relatives. (1B) No human organs or tissues or both shall be removed from the body of a minor before his death for the purpose of transplantation except in the manner as may be prescribed. (1C) No human organs or tissues or both shall be removed from the body of a mentally challenge person before his death for the purpose of transplantation. _Explanation.—For the purpose of this sub-section,—_ (i) the expression “mentally challenged person” includes a person with mental illness or mental retardation, as the case may be; (ii) the expression “mental illness” includes dementia, schizophrenia and such other mental condition that makes a person intellectually disables; (iii) the expression “mental retardation” shall have the same meaning as assigned to it in clause (r) of section 2 of the Persons With Disabilities (Equal Opportunities, Protection of Right and Full Participation) Act, 1995 (1 of 1996).] (2) Where any donor authorises the removal of any of his [2][human organs or tissues or both] after his death under sub-section (2) of section 3 or any person competent or empowered to give authority for the removal of any [1][human organ or tissue or both] from the body of any deceased person authorises such removal, the [1][human organ or tissue or both] may be removed and transplanted into the body of any recipient who may be in need of such [1][human organ or tissue or both]. (3) If any donor authorises the removal of any of his [2][human organs or tissues or both] before his death under sub-section (1) of section 3 for transplantation into the body of such recipient, not being a near relative, as is specified by the donor by reason of affection or attachment towards the 1. Subs. by Act 16 of 2011, s. 4 for “human organ” (w.e.f. 10-1-2014). 2. Subs. by s. 4, ibid., for “human organs” (w.e.f. 10-1-2014). 3. Ins. by s. 7, ibid. (w.e.f. 10-1-2014). 7 ----- recipient or for any other special reasons, such [1][human organ or tissue or both] shall not be removed and transplanted without the prior approval of the Authorisation Committee. 2[(3A) Notwithstanding anything contained in sub-section (3), where— (a) any donor has agreed to make a donation of his human organ or tissue or both before his death to a recipient, who is his near relative, but such donor is not compatible biologically as a donor for the recipient; and (b) the second donor has agreed to make a donation of his human organ or tissue or both before his death to such recipient, who is his near relative, but such donor is not compatible biologically as a donor for such recipient; then (c) the first donor who is compatible biologically as a donor for the second recipient and the second donor is compatible biologically as a donor of a human organ or tissue or both for the first recipient and both donors and both recipients in the aforesaid group of donor and recipient have entered into a single agreement to donate and receive such human organ or tissue or both according to such biological compatibility in the group, the removal and transplantation of the human organ or tissue or both, as per the agreement referred to above, shall not be done without prior approval of the Authorisation Committee.] 3 [(4) (a) The composition of the Authorisation Committee shall be such as may be prescribed by the Central Government from time to time. (b) The State Government and the Union territories shall constitute, by notification, one or more Authorisation Committee consisting of such members as may be nominated by the State Government and the Union territories on such terms and conditions as may be specified in the notification for the purposes of this section.] (5) On an application jointly made, in such form and in such manner as may be prescribed, by the donor and the recipient, the Authorisation Committee shall, after holding an inquiry and after satisfying itself that the applicants have complied with all the requirements of this Act and tile rules made thereunder, grant to the applicants approval for the removal and transplantation of the human organ. (6) If, after the inquiry and after giving an opportunity to the applicants of being heard, the Authorisation Committee is satisfied that the applicants have not complied with the requirements of this Act and the rules made thereunder, it shall, for reasons to be recorded in writing, reject the application for approval. CHAPTER III REGULATION OF HOSPITALS **10. Regulation of hospitals conducting the removal, storage or transplantation of** **4[human organs or tissues or both].—(1) On and from the commencement of this Act,—** (a) no hospital, unless registered under this Act, shall conduct, or associate with, or help in, the removal, storage or transplantation of any [1][human organ or tissue or both;] (b) no medical practitioner or any other person shall conduct, or cause to be conducted, or aid in conducting by himself or through any other person, any activity relating to the removal, storage or transplantation of any [1][human organ or tissue or both] at a place other than a place registered under this Act; [5]*** 1. Subs. by Act 16 of 2011, s. 4, for “human organ” (w.e.f. 10-1-2014). 2. Ins. by s. 7, ibid. (w.e.f. 10-1-2014). 3. Subs. by s. 7, ibid., for sub-section (4) (w.e.f. 10-1-2014). 4. Subs. by s. 4, ibid., for “human organs” (w.e.f. 10-1-2014). 5. The word “and” omitted by s. 8, ibid. (w.e.f. 10-1-2014) 8 ----- (c) no place including a hospital registered under sub-section (1) of section 15 shall be used or cause to be used by any person for the removal, storage or transplantation of any 1[human organ or tissue or both] except for therapeutic purposes; 2[and] [3][(d) no Tissues Bank, unless registered under this Act, shall carry out any activity relating to the recovery, screening, testing, processing, storage and distribution of tissues.] (2) Notwithstanding anything contained in sub-section (1), the eyes or the ears may be removed at any place from the dead body of any donor, for therapeutic purposes, by a registered medical practitioner. _Explanation.—For the purposes of this sub-section, “ears” includes ear drums and ear bones._ **11. Prohibition of removal or transplantation of** **[4][human organs or tissues or both] for any** **purpose other than the rapeatic purposes.— No donor and no person empowered to give authority for** the removal of any human organ shall authorise the removal of any [1][human organ or tissue or both] for any purpose other than therapeutic purposes. **12. Explaining effects, etc., to donor and recipient.— No registered medical practitioner** shall undertake the removal or transplantation of any [1][human organ or tissue or both] unless he has explained, in such manner as may be prescribed, all possible effects, complications and hazards connected with the removal and transplantation to the donor and the recipient respectively. CHAPTER IV APPROPRIATE AUTHORITY **13. Appropriate Authority.—(1) The Central Government shall appoint, by notification, one** or more officers as Appropriate Authorities for each of the Union territories for the purposes of this Act. (2) The State Government shall appoint, by notification, one or more officers as Appropriate Authorities for the purposes of this Act. (3) The Appropriate Authority shall perform the following functions, namely:— (i) to grant registration under sub-section (1) of section 15 or renew registration under sub-section (3) of that section; (ii) to suspend or cancel registration under sub-section (2) of section 16; [5][(iii) to enforce such standards, as may be prescribed,— (A) for hospitals engaged in the removal, storage or transplantation of any human organ: (B) for Tissue Banks engaged in recovery, screening, testing, processing, storage and distribution of tissues;] (iv) to investigate any complaint of breach of any of the provisions of this Act or any of the rules made thereunder and take appropriate action; [6][(iva) to inspect Tissue Banks periodically;] (v) to inspect hospitals periodically for examination of the quality of transplantation and the follow-up medical care to persons who have undergone transplantation and persons from whom organs are removed; and (vi) to undertake such other measures as may be prescribed. [7][13A. Advisory Committees to advise Appropriate Authority.—(1) The Central Government and the State Governments, as the case may be, by notification, shall constitute an Advisory Committee for a period of two years to aid and advise the Appropriate Authority to discharge its functions. 1. Subs. by Act 16 of 2011, s. 4, for “human organ” (w.e.f. 10-1-2014). 2. The word “and” ins by s. 8, ibid. (w.e.f. 10-1-2014). 3. Ins. by s. 8, ibid. (w.e.f. 10-1-2014). 4. Subs. by s. 4, ibid., for “human organs” (w.e.f. 10-1-2014). 5. Subs. by s. 9, ibid., for clause (iii) (w.e.f. 10-1-2014). 6. Ins. by s. 9, ibid. (w.e.f. 10-1-2014). 7. Ins. by s. 10, ibid. (w.e.f. 10-1-2014). 9 ----- (2) The Advisory Committee shall consist of— (a) one administrative expert not below the rank of Secretary to the State Government, to be nominated as Chairperson of the Advisory Committee; (b) two medical experts having such qualifications as may be prescribed; (c) one officer not below the rank of a Joint Director to represent the Ministry or Department of Health and Family Welfare, to be designated as Member-Secretary; (d) two eminent social workers of high social standing and integrity, one of whom shall be from amongst representatives of women’s organisation; (e) one legal expert who has held the position of an Additional District Judge or equivalent; (f) one person to represent non-governmental organisations or associations which are working in the field of organ or tissue donations or human rights; (g) one specialist in the field of human organ transplantation, provided he is not a member of the transplantation team. (3) The terms and conditions for appointment to the Advisory Committee shall be such as may be prescribed by the Central Government. **13B. Powers of Appropriate Authority.—The Appropriate Authority shall for the purposes of this** Act have all the powers of a civil court trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) and, in particular, in respect of the following matters, namely:— (a) summoning of any person who is in possession of any information relating to violation of the provisions of this Act or the rules made thereunder; (b) discovery and production of any document or material object; (c) issuing search warrant for any place suspected to be indulging in unauthorised removal, procurement or transplantation of human organs or tissues or both; and (d) any other matter which may be prescribed. **13C. National Human Organs and Tissues Removal and Storage Network.—The Central** Government may, by notification, establish a National Human Organs and Tissues Removal and Storage Network at one or more places and Regional Network in such manner and to perform such functions, as may be prescribed. **13D. National registry.—The Central Government shall maintain a national registry of the donors** and recipients of human organs and tissues and such registry shall have such information as may be prescribed to an ongoing evaluation of the scientific and clinical status of human organs and tissue.] CHAPTER V REGISTRATION OF HOSPITALS **14. Registration of hospitals engaged in removal, storage or transplantation of** **1[human organs or tissues or both].—(1) 2[No hospital (including Human Organ Retrieval Centre)] shall** commence any activity relating to the removal, storage or transplantation of any [3][human organ or tissue or both] for therapeutic purposes after the commencement of this Act unless such hospital is duly registered under this Act: Provided that every hospital engaged, either partly or exclusively, in any activity relating to the removal, storage or transplantation of any[ 3][human organ or tissue or both] for therapeutic purposes immediately before the commencement of this Act, shall apply for registration within sixty days from the date of such commencement: Provided further that every hospital engaged in any activity relating to the removal, storage or transplantation of any [3][human organ or tissue or both] shall cease to engage in any such activity on the expiry of three months from the date of commencement of this Act unless such hospital has applied for registration and is go registered or till such application is disposed of, whichever is earlier. 1. Subs. by Act of 16 of 2011, s. 4, for “human organs” (w.e.f. 10-1-2014). 2. Subs. by s. 11, ibid., for “No hospital” (w.e.f. 10-1-2014). 3. Subs. by s. 4, ibid., for “human organ” (w.e.f. 10-1-2014). 10 ----- (2) Every application for registration under sub-section (1) shall be made to the Appropriate Authority in such form and in such manner and shall be accompanied by such fees as may be prescribed. (3) No hospital shall be registered under this Act unless the Appropriate Authority is satisfied that such hospital is in a position to provide such specialised services and facilities, possess) such skilled manpower and equipments and maintain such standards as may be prescribed. [1][(4) No hospital shall be registered under this Act, unless the Appropriate Authority is satisfied that such hospital has appointed a transplant coordinator having such qualifications and experience as may be prescribed.] [2][14A. Registration of Tissue Bank.—(1) No Tissue Bank shall, after the commencement of the Transplantation of Human Organs (Amendment) Act, 2011 (16 of 2011), commence any activity relating to the recovery, screening, testing, processing, storage and distribution of tissues unless it is duly registered under this Act: Provided that any facility engaged, either party or exlusively, in any activity relating to the recovery, screening, testing, processing, storage and distribution of tissues immediately before the commencement of the Transplantation of Human Organs (Amendment) Act, 2011 (16 of 2011), shall apply for registration as Tissues Bank within sixty days from the date of such commencement: Provided further that such facility shall cease to engage in any such activity on the expiry of three months from the date of commencement of the Transplantation of Human Organs (Amendement) Act, 2011 (16 of 2011), unless such Tissue Bank has applied for registration and is so registered, or till such application is disposed of, whichever is earlier. (2) Every application for registration under sub-section (1) shall be made to the Appropriate Authority in such form and in such manner and shall be accompanied by such fees as may be prescribed. (3) No Tissue Bank shall be registered under this Act unless the Appropriate Authority is satisfied that such Tissue Bank is in a position to provide such specialised service and facilities, possess such skilled manpower and equipments and maintain such standards as may be prescribed.] **15. Certificate of registration.—(1) The Appropriate Authority shall, after holding an inquiry and** after satisfying itself that the applicant has complied with all the requirements of this Act and the rules made thereunder, [3][grant to the hospital or to the tissue Bank, as the case may be,] a certificate of registration in such form, for such period and subject to such conditions as may be prescribed. (2) If, after the inquiry and after giving an opportunity to the applicant of being heard, the Appropriate Authority is satisfied that the applicant has not complied with the requirement of this Act and the rules made thereunder, it shall, for reasons to be recorded in writing, reject the application for registration. (3) Every certificate of registration shall be renewed in such manner and on payment of such fees as may be prescribed. **16. Suspension or cancellation of registration.—(1) The Appropriate Authority may,** _suo motu or on complaint, issue a notice to any_ [4][hospital or Tissue Bank, as the case may be,] to show cause why its registration under this Act should not be suspended or cancelled for the reasons mentioned in the notice. (2) If, after giving a reasonable opportunity of being heard to the [4][hospital or Tissue Bank, as the case may be,] the Appropriate Authority is satisfied that there has been a breach of any of the provisions of this Act or the rules made thereunder, it may, without prejudice to any criminal action that it may take against such [4][hospital or Tissue Bank, as the case may be,] suspend its registration for such period as it may think fit or cancel its registration: 1. Ins. by Act 16 of 2011, s. 11 (w.e.f. 10-1-2014). 2. Ins. by s. 12, ibid. (w.e.f. 10-1-2014). 3. Subs. by s. 13, ibid., for “grant to the hospital” (w.e.f. 10-1-2014). 4. Subs. by s. 14, ibid., for “hospital” (w.e.f. 10-1-2014). 11 ----- Provided that where the Appropriate Authority is of the opinion that it is necessary or expedient so to do in the public interest, it may, for reasons to be recorded in writing, suspend the registration of any 1[hospital or Tissue Bank, as the case may be,] without issuing any notice. **17. Appeals.—Any person aggrieved by an order of the Authorisation Committee rejecting an** application for approval under sub-section (6) of section 9, or any hospital [2][or Tissue Bank, as the case may be,] aggrieved by an order of the Appropriate Authority rejecting an application for registration under sub-section (2) of section 15 or an order of suspension or cancellation of registration under sub-section (2) of section 16, may, within thirty days from the date of the receipt of the order, prefer an appeal, in such manner as may be prescribed, against such order to— (i) the Central Government where the appeal is against the order of the Authorisation Committee constituted under clause (a) of sub-section (4) of section 9 or against the order of the Appropriate Authority appointed under sub-section (1) of section 13; or (ii) the State Government, where the appeal is against the order of the Authorisation Committee constituted under clause (b) of sub-section (4) of section 9 or against the order of the Appropriate Authority appointed under sub-section (2) of section 13. CHAPTER VI OFFENCES AND PENALTIES **18. Punishment for removal of human organ without authority.—(1) Any person who renders his** services to or at any hospital and who, for purposes of transplantation, conducts, associates with, or helps in any manner in, the removal of any human organ without authority, shall be punishable with imprisonment for a term which may extend to [3][ten years and with fine which may extend to twenty lakh rupees]. (2) Where any person convicted under sub-section (1) is a registered medical practitioner, his name shall be reported by the Appropriate Authority to the respective State Medical Council for taking necessary action including the removal of his name from the register of the Council for a period of [4][three years] for the first offence and permanently for the subsequent offence. [5][(3) Any person who renders his services to or at any hospital and who conducts, or associates with or helps in any manner in the removal of human tissue without authority, shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to five lakh rupees.] **19. Punishment for commercial dealings in human organs.—Whoever—** (a) makes or receives any payment for the supply of, or for an offer to supply, any human organ; (b) seeks to find a person willing to supply for payment any human organ; (c) offers to supply any human organ for payment; or (d) initiates or negotiates any arrangement involving the making of any payment for the supply of, or for an offer to supply, any human organ; (e) takes part in the management or control of a body of persons, whether a society, firm or company, whose activities consist of or include the initiation or negotiation of any arrangement referred to in clause (d); or (f) publishes or distributes or causes to be published or distributed any advertisement,— (a) inviting persons to supply for payment of any human organ; (b) offering to supply any human organ for payment; or 1. Subs. by Act 16 of 2011, s. 14, for “hospital” (w.e.f. 10-1-2014). 2. Ins. by s. 15, ibid. (w.e.f. 10-1-2014). 3. Subs. by s. 16, ibid., for “five years and with fine which may extend to ten thousand rupees” (w.e.f. 10-1-2014). 4. Subs. by s. 16, ibid., for “two years” (w.e.f. 10-1-2014). 5. Ins. by s. 16, ibid. (w.e.f. 10-1-2014). 12 ----- (c) indicating that the advertiser is willing to initiate or negotiate any arrangement referred to in clause (d); 1[(g) abets in the preparation or submission of false documents including giving false affidavits to establish that the donor is making the donation of the human organs, as a near relative or by reason of affection or attachment towards the recipient, shall be punishable with imprisonment for a term which shall not be less than [2][five years but which may extend to ten years and shall be liable to fine which shall not be less than twenty lakh rupees but may extend to one crore rupees]. 3* - - - **4[19A. Punishment for illegal dealings in human tissues.—Whoever—** (a) makes or receives any payment for the supply of, or for an offer to supply, any human tissue; or (b) seeks to find a person willing to supply for payment and human tissue; or (c) offers to supply any human tissue for payment; or (d) initiates or negotiates any arrangement involving the making of any payment for the supply of, or for an offer to supply, any human tissue; or (e) takes part in the management or control of a body of persons, whether a society, firm or company, whose activities consist of or include the initiation or negotiation of any arrangement referred to in clause (d); or (f) publishes or distributes or causes to be published or distributed any advertisement— (i) inviting persons to supply for payment of any human tissue; or (ii) offering to supply any human tissue for payment; or (iii) indicating that the advertiser is willing to initiate or negotiate any arrangement referred to in clause (d); or (g) abets in the preparation or submission of false documents including giving false affidavits to establish that the donor is making the donation of the human tissues as a near relative or by reason of affection or attachment towards the recipient, shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and shall be liable to fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees.] **20. Punishment for contravention of any other provision of this Act.—Whoever contravenes** any provision of this Act or any rule made, or any condition of the registration granted, thereunder for which no punishment is separately provided in this Act, shall be punishable with imprisonment for a term which may extend to [5][five years or with fine which may extend to twenty lakh rupees]. **21. Offences by companies.—-(1) Where any offence punishable under this Act has been** committed by a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that be had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence punishable under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary 1. Ins. by Act 16 of 2011, s. 17 (w.e.f. 10-1-2014). 2. Subs. by s. 17, ibid., for “two years but which may extend to seven years and shall be liable to fine which shall not be less than ten thousand rupees but may extend to twenty thousand rupees” (w.e.f. 10-1-2014). 3. The proviso omitted by s. 17, ibid. (w.e.f. 10-1-2014). 4. Ins. by s. 18, ibid. (w.e.f. 10-1-2014). 5. Subs. by s. 19, ibid., for “three years or with fine which may extend to five thousand rupees” (w.e.f. 10-1-2014). 13 ----- or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director” in relation to a firm, means a partner in the firm. **22. Cognizance of offences.—(1) No court shall take cognizance of an offence under this Act except** on a complaint made by— (a) the Appropriate Authority concerned, or any officer authorised in this behalf by the Central Government or the State Government or, as the case may be, the Appropriate Authority; or; (b) a person who has given notice of not less than sixty days, in such manner as may be prescribed, to the Appropriate Authority concerned, of the alleged offence and of his intention to make a complaint to the court. (2) No court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. (3) Where a complaint has been made under clause (b) of sub-section (1), the court may, on demand by such person, direct the Appropriate Authority to make available copies of the relevant records in its possession to such person. CHAPTER VII MISCELLANEOUS **23. Protection of action taken in good faith.—(1) No suit, prosecution or other legal** proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act. (2) No suit or other legal proceeding shall lie against the Central Government or the State Government for any damage caused or likely to be caused for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act. **24. Power to make rules.—(1) The Central Government may, by notification, make rules for carrying** out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner in which and the conditions subject to which any donor may authorise removal, before his death, of any [1][human organ or tissue or both] of his body under sub-section (1A) of section 3; 2[(aa) the human organ or tissues or both in respect of which duty is cast on registered medical pracitioner the manner of obtaining documentation of authoirsation under clause (i) of sub-section 3; (ab) the manner of informing the Human Organ Retrieval Centre under clause (iii) of sub-section (1A) of section 3; (ac) the date from which duties mentioned in sub-section (1A) are applicable to registered medical practitioner working a unregistered hospital under sub-section (1B) of section 3; (ae) the qualification and experience of a technician under the proviso to sub-section (4) of section 3;] 1. Subs. by Act of 16 of 2011, s. 4 for “human organ” (w.e.f. 10-1-2014). 2. Ins. by s. 20, ibid. (w.e.f. 10-1-2014). 14 ----- (b) the form and the manner in which a brain-stem death is to be certified and the conditions and requirements which are to be satisfied for that purpose under sub-section (6) of section 3; 1[(ba) the conditions for nomination of a surgeon or a physician and an anaesthetist or intensivist to be included in the Board of medical experts under the proviso to clause (iii) of sub-section (6) of section 3;] (c) the form and the manner in which any of the parents may give authority, in the case of brain-stem death of a minor, for the removal of any [2][human organ or tissue or both] under sub-section (7) of section 3; (d) the form in which authority for the removal of any [2][human organ or tissue or both] from an, unclaimed dead body may be given by the person incharge of the management or control of the hospital or prison under sub-section (1) of section 5; (e) the steps to be taken for the preservation of the [2][human organ or tissue or both] removed from the body of any person, under section 7; 1[(ea) the manner of removal of human organs or tissues or both from the body of a minor before his death for transplantation under sub-section (1B) of section 9; (eb) the composition of the Authorisation Committees under sub-section (4) of section 9;] (f) the form and the manner in which an application may be jointly made by the donor and the recipient under sub-section (5) of section 9; (g) the manner in which all possible effects, complications and hazards connected with the removal and transplantation is to be explained by the registered medical practitioner to the donor and the recipient under section 12; (h) the standards as are to be enforced by the Appropriate Authority for hospitals engaged in the removal, storage or transplantation of any [2][human organ or tissue or both] under clause (iii) of sub-section (3) of section 13; (i) the other measures as the Appropriate Authority shall undertake in performing its functions under clause (vi) of sub-section (3) of section 13; [1][(ia) the qualifications of medical experts and the terms and conditions for appointment to Advisory committee under sub-sections (2) and (3) of section 13A; (ib) the power of the Appropriate Authority in any other matter under clause (d) of section 13B; (ic) the manner of establishment of a National Human Organs and Tissues Removal and Storage Network and Regional Network and functions to be performed by them under section 13C; (id) the information in the national registry of the donors and recipients of human organs and tissues and all information under section 13D;] (j) the form and the manner in which an application for registration shall be made and the fee which shall be accompanied, under sub-section (2) of section 14; (k) the specialised services and the facilities to be provided, skilled manpower and the equipments to be possessed and the standards to be maintained by a hospital for registration, under sub-section (3) of section 14; [1][(ka) the qualifications and experience of a transplant co-ordinator under sub-section (4) of section 14; (kb) the form and the manner in which an application for registration shall be made and the fee which shall be accompanied, under sub-section (2) of section 14A; 1. Ins. by Act 16 of 2011, s. 20 (w.e.f. 10-1-2014). 2. Subs. by s. 4, ibid., for “human organ” (w.e.f. 10-1-2014). 15 ----- (kc) the specialised service and the facilities to be provided, skilled manpower and the equipment to be possessed and the standards to be maintained by a Tissue Bank, under sub-section (3) of section 14A;] (l) the form in which, the period for which and the conditions subject to which certificate of registration is to be granted to a [1][hospital or Tissue Bank], under sub-section (1) of section 15; (m) the manner in which and the fee on payment of which certificate of registration is to be renewed under sub-section (3) of section 15; (n) the manner in which an appeal may be preferred under section 17; (o) the manner in which a person is required to give notice to the Appropriate Authority of the alleged offence and of his intention to make a complaint to the court, under clause (b) of sub-section (1) of section 22; and (p) any other matter which is required to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **25. Repeal and savings.—(1) The Ear Drums and Ear Bones (Authority for Use for Therapeutic** Purposes) Act, 1982 (28 of 1982) and the Eyes (Authority for Use for Therapeutic Purposes) Act, 1982 (29 of 1982) are hereby repealed. (2) The repeal shall, however, not affect the previous operation of the Acts so repealed or anything duly done or suffered thereunder. 1. Subs. by Act 16 of 2011, s. 20, for “hospital” (w.e.f. 10-1-2014). 16 -----
8-Jul-1994
43
The Manipur Municipalities Act, 1994
https://www.indiacode.nic.in/bitstream/123456789/1972/1/199443.pdf
central
# THE MANIPUR MUNICIPALITIES ACT, 1994 ____________ ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II CONSTITUTION OF MUNICIPALITIES 3. Constitution of municipalities. 4. Effect of exclusion of local area from municipality. 5. Election and maintenance of boundary marks. CHAPTER III NAGAR PANCHAYAT 6. Incorporation of Nagar Panchayat. 7. Composition of Nagar Panchayat. 8. Application of certain provisions relating to Council in case of Nagar Panchayat. 9. Chairperson and Vice-Chairperson of Nagar Panchayat. 10. Election of Chairperson and Vice-Chairpersons. 11. Resignation by Chairperson, Vice Chairperson and Councillor. 12. Remuneration to Chairperson and Vice-Chairperson. CHAPTER IV MUNICIPAL COUNCIL 13. Incorporation of Municipal Council. 14. Municipal administration. 15. Composition of Council. 16. Constitution and composition of Wards Committees. 17. Reservation of seats. 18. Allocation of reserved seats and delimitation of wards. 19. Disqualifications for membership. 20. Oath of office. 21. Appointment of administrator. 22. Duration of municipalities, etc. 23. Every Council to have Chairperson and a Vice-Chairperson. 24. Election of Chairperson. 25. Election of Vice-Chairperson. 26. Chairperson and Vice-Chairperson cease to hold office as such. 27. Filling up of vacancies and term of office of persons filling up the vacancy. ----- SECTIONS 28. Resignation by Chairperson, Vice-Chairperson and Councillor. 29. Removal of Councillors. 30. Effect of removal of a Councillor. 31. No-confidence motion against Chairperson or Vice-Chairperson. 32. Grant of leave of absence to Chairperson or Vice-Chairperson. 33. Powers and functions of the Chairperson. 34. Function of Vice-Chairperson. 35. Remuneration of Chairperson and Vice-Chairperson. 36. Powers, authority and responsibilities of municipalities. 37. Obligatory functions of the municipality. 38. Special duties of municipalities. 39. Discretionary functions of municipality. 40. Management of public institution by municipality to vest in it. CHAPTER V ESTABLISHMENT 41. Appointment of Executive Officers. 42. Main functions of the Executive Officer. 43. Appointment of Health Officer, Revenue Officer and Engineer. 44. Power of Nagar Panchayat and Council to determine strength of its employees. 45. Power of Nagar Panchayat and Council to appoint its officers and employees. 46. Disciplinary action against employees of Nagar Panchayat and Council and conditions of their services, etc. 47. Gratuity and pension. 48. Power to make rules. CHAPTER VI CONDUCT OF BUSINESS 49. Meeting of a Nagar Panchayat or of a Council. 50. Chairperson of meeting. 51. Manner of deciding questions. 52. Adjournment of meeting in the absence of quorum. 53. Minutes of proceedings. 54. Modification and cancellation of resolution. 55. Right of Government Officers to attend, address and take part in the meeting of the Nagar Panchayat or of the Council. 56. Appointment of Committees. 57. Chairperson of Committee. 58. Liability for loss, waste or misapplication of funds and property. 59. Disqualifications of Councillors having share or interest in contract. 60. Penalty in case Councillors, executive officer, etc., having interest in a contract, etc., with the Nagar Panchayat or Council. 61. Disqualification from voting. ----- CHAPTER VII MUNICIPAL PROPERTY, FINANCE AND CONTRACTS SECTIONS 62. Municipal property and vesting thereof. 63. Transfer of municipal property. 64. Execution of contracts. 65. Transfer of private roads, etc., to Nagar Panchayat or Council. 66. Acquisition of land. 67. Formation and custody for municipal fund. 68. Credit of moneys to the municipal fund. 69. Powers of the Nagar Panchayat or of the Council to borrow money. 70. Application of municipal property and fund. 71. Budget. 72. Accounts and audit. 73. Finance Commission for municipalities. CHAPTER VIII MUNICIPAL TAXATION 74. Power to impose taxes by and the funds of the municipalities. 75. Taxes which may be imposed. 76. Tax on Government holdings. 77. Restriction regarding tax on holding. 78. Collection of taxes are subject to bye-law, etc. 79. Nagar Panchayat or Council to determine the valuation of holding. 80. Returns required for ascertaining annual value. 81. Penalty for default in furnishing return and for obstruction of assessor. 82. Determination of annual value of holdings. 83. Determination of rate of tax on holding. 84. Preparation of assessment register. 85. Powers to assess consolidated tax for building and land on which it stands. 86. Reduction of valuation, revision of valuation and assessment and revision of valuation list and assessment register. 87. Notice to be given to Chairperson of transfers of title of persons liable of payment of tax. 88. Revisions of valuation list. 89. Appointment of assessor and power of State Government to direct the appointment of assessor. 90. Revision of assessment register. 91. Effect of revision of assessment register. 92. Exemptions and remission. 93. Power of assessor. 94. Publication of notice of assessment. 95. Application for review. 96. Procedure for review. 97. Limitation of time for application for review. 98. Assessment to be questioned only under Act. 99. Tax not invalid for want of form. 100. Procedure for imposing taxes, recovery of claims, etc. ----- CHAPTER IX RECOVERY OF MUNICIPAL CLAIMS SECTIONS 101. Recovery from occupier of tax due from non-resident. 102. Recovery from owner of occupier’s tax in certain cases. 103. Recovery by owner of occupier’s tax paid by owner. 104. Method of recovery by owner. 105. Penalty. 106. Municipality may compound with livery stable keepers. 107. Rents, tolls and fees in respect of markets. 108. Recovery of taxes as arrears of land revenue. 109. Power to sell unclaimed holdings for money due. 110. Writing off irrecoverable sums due to the Nagar Panchayat or to the Council. CHAPTER X MUNICIPAL POWER AND OFFENCES _Powers in respect of road_ 111. Power to make roads. 112. Power to repair, etc., of private road, drains, etc. 113. Prohibition of use of public roads by a class of animals, carts or vehicles. 114. Penalty for encroachment on public roads, etc. 115. Use of public road or place by vendors and other person and penalty thereof. 116. Power to remove obstructions, encroachments and projections in or on public road, etc. 117. Procedure when person who erected obstruction cannot be found. 118. Projections from buildings to be removed. 119. Power of the District Magistrate and Sub-Divisional Magistrate to remove encroachment summarily on requisition by the Government. 120. Effect of order made under section 116, 117, 118 or 119. 121. Nagar Panchayat or Council may require land holders to trim hedges, etc. 122. Penalty for disobeying requisition under section 116, 117, 118 or 119. 123. Names of public roads and number of buildings. _Building_ 124. Erection of building without sanction. 125. Special provision for cases where bye-laws have not been made. 126. Powers of Nagar Panchayat or the Council to sanction or refuse. 127. Lapse of sanction. 128. Penalty for building without or in contravention of sanction. 129. Power of a Nagar Panchayat or a Council in case of disobedience. 130. Roofs and external walls not to be made of inflammable materials. 131. Power to attach brackets for lamps. 132. Building unfit for human habitation. 133. Pending of building in dangerous state. 134. Nagar Panchayat or Council may require owners to pull down ruins. 135. Penalty for disobeying requisition under sections 133 and 134. 136. Compensation for prohibition of erection or re-erection. ----- _Powers connected with drains_ SECTIONS 137. Power to require owners to clear noxious vegetation. 138. Power to require owners to improve bad drainage. 139. Power to require unwholesome tanks or private premises to be cleansed or drained. 140. Wells, tanks, etc., to be secured. 141. Penalty for disobeying requisition under sections 137, 138, 139 and 140. 142. Power of Government to prohibit cultivation, use of manure, or irrigation injurious to health. 143. Public latrines and urinals. 144. Power to demolish unauthorised drains leading into public. 145. Penalty for allowing water of any sewer, etc., to run on any public road. 146. Power to require owner to drain land. 147. Penalty for disobeying requisition under section 146. _Scavenging and cleaning_ 148. Establishment for removal of sewage, offensive matter and rubbish. 149. Sewerage scheme. 150. Removal of sewage, offensive material, rubbish. 151. Penalty for placing rubbish on public road. 152. Penalty on occupier for not removing filth, etc. 153. Penalty for throwing offensive matter on public roads, etc. 154. Power of servants of the Nagar Panchayat or of the Council. _Water supply and drainage system_ 155. Supply of drinking water. 156. Removal of latrines, etc., near any source of water supply. 157. Owner or occupier to take steps to prevent spread of infectious disease. 158. Unauthorised construction or tree over drain or water-works. _Burial and burning ground for disposal of corpses_ 159. Powers in respect of burial and burning places. 160. Burial of paupers and unclaimed dead bodies. 161. Powers to cause corpses to be burnt or buried according to the religious tenets of the deceased. CHAPTER XI OTHER POWERS AND PENALTIES _Markets and slaughter houses_ 162. Establishment of markets. 163. Power to remove persons from municipal market. 164. Places for slaughter of animals for sale. 165. Inspection before and after slaughter. 166. Licencing of butcher. _Nuisances from certain trades, professions, etc._ 167. Regulation of offensive trades. 168. Certain offensive and dangerous trades not to be established within the limits to be fixed by the municipality without licence. 169. Cinemas, dramatic performances, circuses, etc. ----- SECTIONS 170. Cancellation, revocation, etc., of licences. 171. Publication of order of refusal, suspension of licences. 172. Power to close market, tea-stall, etc. _Infectious or contagious diseases_ 173. Penalty for failure to give information of cholera. 174. Disinfection of building and articles. 175. Penalty for letting infected house. 176. Power of entry for purpose of preventing spread of disease. 177. Removal to hospital of patients suffering from infectious disease. _Park, playground and open space_ 178. Municipality to provide places for recreation. 179. Function and powers in regard to pounds. CHAPTER XII PROCEDURE 180. Service of notice. 181. Reasonable time for act to be fixed. 182. Service of notice on owner or occupier of land. 183. Procedure when owners or occupiers are required by Nagar Panchayat or the Council to execute works. 184. Person required to execute any work may prefer objection to the municipality. 185. Procedure if person objecting alleges that work will cost more than three thousand rupees. 186. Chairperson, Vice-Chairperson to make order after hearing objection. 187. Power of municipality on failure of persons to execute works. 188. Power to apportion expenses among owners and occupiers. 189. Apportionment among owners and occupiers. 190. Occupiers may recover cost of works executed at their expenses from owners. 191. Power to enter upon, possession of houses so repaired. 192. Sale of materials of houses pulled down. 193. Cognizance. 194. Offences under the Act compoundable. 195. Power and duties of police in respect of offences. 196. Appeals from order refusing licences. 197. Appeals from orders in other cases. 198. Appeal not to be dismissed without giving reasonable opportunity. 199. Dispute as to compensation payable by municipality. 200. Indemnity. 201. Bar of suits in absence of notice. CHAPTER XIII CONTROL 202. Control by Deputy Commissioner. 203. Power to suspend action under the Act. 204. Powers of Deputy Commissioner in case of emergency. 205. Power to dissolve Nagar Panchayat or Council in certain cases. 206. Consequence of dissolution. ----- SECTIONS 207. Decision of disputes between local authorities. CHAPTER XIV RULES AND BYE-LAWS 208. Powers of State Government to make rules. 209. Power of municipality to frame bye-laws. 210. Additional power to frame bye-laws in hill areas. 211. Confirmation of bye-laws. 212. Publication of bye-laws. 213. Model bye-laws. CHAPTER XV MISCELLANEOUS 214. Validity of acts and proceedings. 215. Petition for challenging election. 216. Power to make rules for election and election petition. 217. Bar of jurisdiction of Civil Courts in election matters. 218. Election to the municipalities. 219. Electoral roll for a municipal area. 220. Conditions for registration as a voter. 221. Power to remove difficulties. 222. Overriding effect of the provisions of the Act. 223. Mode of proof of municipal record and fee for certified copy. 224. Restriction on the summoning of municipal servants to produce documents. 225. Penalty for violating the provision of this Act. 226. Public servants. 227. District Planning Committee. 228. Committee for Metropolitan Planning. 229. Delegation of powers of State Government. 230. Repeal of Manipur Act 26 of 1976 and saving. 231. Repeal and saving. THE SCHEDULE. ----- # THE MANIPUR MUNICIPALITIES ACT, 1994 ACT NO. 43 OF 1994 [8th July, 1994.] # An Act to provide for constitution and organisation of municipalities in the Urban areas of Manipur and for matters connected therewith and incidental thereto. BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **[1. Short title, extent and commencement.—(1) This Act, may be called the Manipur Municipalities](http://indiankanoon.org/doc/957739/)** Act, 1994. [(2) It extends to the whole of the State of Manipur except the Hill Areas to which the Manipur](http://indiankanoon.org/doc/1803704/) (Hill Areas) District Council Act, 1971 (Manipur Act 76 of 1971) extends or any area which is included in a Cantonment under the Cantonment Act, 1924 (2 of 1924). [(3) It shall be deemed to have come into force on the 24th day of May, 1994.](http://indiankanoon.org/doc/291107/) **[2. Definitions.—In this Act, unless the context otherwise requires,—](http://indiankanoon.org/doc/1832524/)** [(1) “Adhyaksha” means an Adhyaksha of a Zilla Parishad elected under the provisions of the](http://indiankanoon.org/doc/1108580/) Manipur Panchayati Raj Act, 1994 (26 of 1994); [(2) “building” means a house, out house, stable, latrine, urinal, shed, hut, wall (other than a](http://indiankanoon.org/doc/443465/) boundary wall) or any other structure, whether of masonry, bricks, wood, mud, metal or other material but does not include any portable shelter; [(3) “bye-law” means a bye-law made under this Act by notification;](http://indiankanoon.org/doc/410099/) [(4) “Committee” means a Committee other than a Ward Committee constituted under this Act;](http://indiankanoon.org/doc/404658/) [(5) “compound” means land whether enclosed or not, which is the appurtenance of a building or](http://indiankanoon.org/doc/1188721/) the common appurtenance of several buildings; [(6) “conservancy” means the removal and disposal of sewage, offensive matter and rubbish;](http://indiankanoon.org/doc/1789083/) [(7) “Corporation” means a Municipal Corporation;](http://indiankanoon.org/doc/536100/) [(8) “Council” means a Municipal Council;](http://indiankanoon.org/doc/1032367/) [(9) “Councillor” means a member of a Municipal Council or Nagar Panchayat, as the case may](http://indiankanoon.org/doc/1397314/) be, elected or appointed under this Act; [(10) “Deputy Commissioner” means the Deputy Commissioner of a district of Manipur having](http://indiankanoon.org/doc/587922/) jurisdiction over the Municipality, or any other officer at any time appointed by the Government to perform, in any district or districts the functions of a Deputy Commissioner under this Act; [(11) “Director” means the Director of Municipal Administration, Housing and Urban](http://indiankanoon.org/doc/1061008/) Development of the Government of Manipur or such other officer as may be appointed by the Government to exercise the functions of the Director of Municipal Administration, Housing and Urban Development of Manipur; [(12) “district” means a district in the State of Manipur;](http://indiankanoon.org/doc/221823/) [(13) “District Magistrate” means the District Magistrate and includes the Additional District](http://indiankanoon.org/doc/1453020/) Magistrate or any such Magistrate as may be appointed in this behalf by the Government, having territorial jurisdiction over the Municipality; [(14) “drain” includes a sewer, a house-drain, a drain of any other description, a tunnel, a culvert, a](http://indiankanoon.org/doc/1075640/) ditch, a channel and any other device for carrying off sullage, sewage, offensive matter, polluted water, waste water, rain water or subsoil water; ----- [(15) “Election Commission” means the State Election Commission constituted under section 98](http://indiankanoon.org/doc/353829/) of the Manipur Panchayati Raj Act, 1994 (26 of 1994); [(16) “Executive Officer” means Executive Officer of a municipality appointed under this Act;](http://indiankanoon.org/doc/98914/) [(17) “financial year” means the year commencing on the 1st day of April of a year and ending on](http://indiankanoon.org/doc/158136/) 31st day of March of the succeeding year; [(18) “food” includes every article used for food or drink by man other than drugs or water, and](http://indiankanoon.org/doc/75260/) any article which ordinarily enters into or used in the composition or preparation of human food and also includes confectionery, flavouring and colouring matter, spices and condiments; [(19) “Government” means the State Government of Manipur;](http://indiankanoon.org/doc/1648518/) [(20) “half-year” means a half-year commencing on the 1st day of April or the 1st day of October,](http://indiankanoon.org/doc/1775041/) or such other date as the State Government may, by notification, appoint; [(21) “holding” means land held under one title or agreement and surrounded by one set of](http://indiankanoon.org/doc/648100/) boundaries: Provided that where two or more adjoining holdings form part and parcel of the site or premises of a dwelling-house, manufactory, warehouse or place of trade or business, such holdings shall be deemed to be one holding for the purposes of this Act: Provided further that where land has been let out to occupants in separate parcels paying rent separately, each such parcel shall be treated as a distinct holding in spite of such parcels of land being held under one title. _Explanation I.—Holdings separated by a road or other means of communication shall be deemed_ to be adjoining within the meaning of this proviso. _Explanation II.—Any plot of land having clear boundaries and lying entirely vacant, if fit for_ building purposes or if yielding any income, shall when not appurtenant to any agricultural purposes, be regarded as a “holding”; [(22) “house” means any hut, shop, warehouse, workshop, masonry or framed;](http://indiankanoon.org/doc/731695/) [(23) “house-gully” or “service passage” means a passage or strip of land constructed, set apart or](http://indiankanoon.org/doc/880995/) utilised, for the purpose of serving as or carrying a drain or affording access to a latrine, privy, urinal, cess-pool or other receptacle of filthy or polluted matter by municipal employees or other persons employed in the cleansing thereof or in the removal of such matter therefrom, and includes the air-space above such passage or land; [(24) “ hut” means any building, which is constructed principally of wood, bamboo, mud, leaves,](http://indiankanoon.org/doc/818291/) grass or thatch and includes any temporary structure of whatever size or any small building of whatever material made; [(25) “infectious or contagious disease” means cholera, plague, small-pox, chicken-pox,](http://indiankanoon.org/doc/558455/) kala-azar, tuberculosis, diphtheria and typhoid or enteric fever or such other dangerous disease as the Government may notify in this behalf; [(26) “inhabitant” used with reference to a local area means any person ordinarily residing or](http://indiankanoon.org/doc/662683/) carrying on business or owning or occupying immovable property therein; [(27) “joint family” means a family of which the members live together, have a common mess and](http://indiankanoon.org/doc/204408/) are descendants from a common ancestor and shall include wives or husbands, as the case may be, of its members, but shall exclude married daughters and their children; [(28) “land” includes benefits arising out of land, houses and things attached to the earth or](http://indiankanoon.org/doc/655151/) permanently fastened to anything attached to the earth and also land covered by water; [(29) “Legislative Assembly” means the Legislative Assembly of Manipur;](http://indiankanoon.org/doc/1463277/) [(30) “Local Authority” includes District Council, Municipal Council, Nagar Panchayat,](http://indiankanoon.org/doc/245255/) Municipal Corporation and Panchayat; ----- [(31) “lodging house” means a house in which visitors or other persons are lodged on hire for a](http://indiankanoon.org/doc/1734101/) night or more; [(32) “market” or “bazar” means any place, by whatever name called, where persons assemble for](http://indiankanoon.org/doc/1324355/) the sale of meat, fish, fruit, vegetables, live stock or any other article of food or merchandise, declared and licensed by the municipality as a market; [(33) “municipal area” means the territorial area of a municipality as is notified by the Governor;](http://indiankanoon.org/doc/407428/) [(34) “municipality” means the Nagar Panchayat or the Municipal Council, as the case may be,](http://indiankanoon.org/doc/611618/) constituted under the provisions of this Act; [(35) “municipal market” means a market belonging to or maintained by the municipality;](http://indiankanoon.org/doc/445537/) [(36) “notification” means notification in the Official Gazette of Manipur;](http://indiankanoon.org/doc/583531/) [(37) “nuisance” includes any act, omission, place or thing which causes or is likely to cause](http://indiankanoon.org/doc/875087/) injury, danger, annoyance or offence to the sense or sight, smelling or hearing or disturbance to rest or sleep or which is or may be, dangerous to life or injurious to health or property; [(38) “occupier” includes—](http://indiankanoon.org/doc/697867/) [(a) any person who is paying or is liable to pay to the owner the rent or any portion of the rent](http://indiankanoon.org/doc/281294/) of the land or building in respect of which such rent is paid or is payable; [(b) an owner in occupation of or otherwise using his own land or building;](http://indiankanoon.org/doc/822659/) [(c) a rent free tenant of any land or building;](http://indiankanoon.org/doc/626513/) [(d) a licensee in occupation of any land or building; and](http://indiankanoon.org/doc/617750/) [(e) any person who is liable to pay to the owner of land or building damages for the use and](http://indiankanoon.org/doc/1122322/) occupation of such land or building; [(39) “offensive matter” includes animal, carcases, kitchen or stable refuse, dung, dirt, putrid or](http://indiankanoon.org/doc/106775/) putrefying substance and filth of any kind which is not included in sewage; [(40) “owner” includes—](http://indiankanoon.org/doc/777551/) [(a) a person who for the time being is receiving or is entitled to receive, the rent of any land](http://indiankanoon.org/doc/1703264/) or building or of any part of any land or building whether on his own account or on account of himself and others or as an agent, trustee for any person or society or for any religious or charitable purpose, guardian or as a receiver or who would so receive such rent or be entitled to receive it if the land, building or part thereof were let to a tenant, and [(b) the head of a Government department in respect of properties under their respective](http://indiankanoon.org/doc/1081721/) control; [(41) “Panchayat” means an institution of self-government at the district or village level](http://indiankanoon.org/doc/1480379/) constituted under the Manipur Panchayati Raj Act, 1994 (26 of 1994); [(42) “platform” means any structure which is placed on or covers or projects over, any public](http://indiankanoon.org/doc/727934/) road or any open drain, sewer or aqueduct; [(43) “population” means the population as ascertained at the last preceding census of which the](http://indiankanoon.org/doc/564578/) relevant figures have been published; [(44) “prescribed” means prescribed by rules made under this Act;](http://indiankanoon.org/doc/1276654/) [(45) “private road” means any street, road, square, court alley or passage which is not a public](http://indiankanoon.org/doc/1630137/) road and includes a pathway made by the owner or premises on his own land to secure access to, or the convenient use of, such premises; [(46) the expression “re-erect” when used with reference to building, includes—](http://indiankanoon.org/doc/321782/) [(a) the reconstruction of a building after more than one-half of its cubical extent has been](http://indiankanoon.org/doc/215171/) taken down or burnt down or has fallen down; ----- [(b) the conversion of one or more huts or temporary structures into a masonry or framed](http://indiankanoon.org/doc/1668553/) building; [(c) the conversion into place for human habitation of any building not originally constructed](http://indiankanoon.org/doc/1778203/) for such habitation; and [(d) the extension of a building;](http://indiankanoon.org/doc/1703478/) [(47) “private slaughter house” means a slaughter house which is not a municipal slaughter house;](http://indiankanoon.org/doc/1402453/) [(48) “public place” means a space, not being private property which is open to the use or](http://indiankanoon.org/doc/1579649/) enjoyment of the public whether such space is vested in a municipality or not; [(49) “public road” means any street, road, square, court alley, passage or pathway over which the](http://indiankanoon.org/doc/1178380/) public have a right of way whether a thoroughfare or not, and includes— [(a) the roadway over any public bridge or causeway;](http://indiankanoon.org/doc/974784/) [(b) the footway attached to any such road, public bridge or causeway; and](http://indiankanoon.org/doc/1062900/) [(c) the drains attached to any such road, public bridge or causeway, and the land, whether](http://indiankanoon.org/doc/639525/) covered or not by any pavement, verandah or other structure, which lies on either side of the roadway up to the boundaries of the adjacent property whether that property is private property or Government property; [(50) “regulation” means a regulation made by the municipality under this Act, by notification;](http://indiankanoon.org/doc/716011/) [(51) “rubbish” means ashes, broken brick, mortar, broken glass, dust or refuse of any kind which](http://indiankanoon.org/doc/1576178/) is not filth; [(52) “rule” means a rule made under this Act;](http://indiankanoon.org/doc/1213704/) [(53) “Scheduled Castes” means such castes, races or tribes or parts of groups within such castes,](http://indiankanoon.org/doc/924170/) tribes as are specified to be Scheduled Castes, in relation to the State of Manipur under article 341 of the Constitution of India; [(54) “Scheduled Tribes” means such tribes or tribal communities or parts of groups within such](http://indiankanoon.org/doc/1284843/) tribes or tribal communities as are specified to be Scheduled Tribes in relation to the State of Manipur under article 342 of the Constitution of India; [(55) “sewage” means night-soil and other contents of privies, latrines, urinals, cesspools and](http://indiankanoon.org/doc/1866796/) drains, and includes polluted water from sink, bathrooms, stables, cattle-sheds and other like places and also discharges from manufactories of all kinds; [(56) “slaughter house” means any place ordinarily used for the slaughter of animals for the](http://indiankanoon.org/doc/1265019/) purpose of selling the flesh thereof for human consumption; [(57) “urban areas” means the areas in the State of Manipur which are not rural areas;](http://indiankanoon.org/doc/862822/) [(58) “vehicle” includes bicycles, tricycles and automotor cars and every wheeled conveyance](http://indiankanoon.org/doc/895472/) whether a carriage, cart, van, dray which is used or capable of being used on a public road; [(59) “ward” means a municipal ward constituted under section 18;](http://indiankanoon.org/doc/782510/) [(60) “water works” includes all tanks, streams, cisterns, springs, pumps, wells, reservoirs,](http://indiankanoon.org/doc/1842993/) aqueducts, sluices mains, pipes, hydrants, stand pipes and conduits and all lands, buildings, machinery and things used for, or intended for the purpose of, supplying water; [(61) “Zilla Parishad” means a Zilla Parishad of a district constituted under the Manipur](http://indiankanoon.org/doc/645637/) Panchayati Raj Act, 1994 (26 of 1994). CHAPTER II CONSTITUTION OF MUNICIPALITIES **[3. Constitution of municipalities.—(1) The Governor shall, by notification, constitute—](http://indiankanoon.org/doc/1183339/)** [(a) a Nagar Panchayat for a transitional area, that is to say, an area in transition from a rural area](http://indiankanoon.org/doc/1211166/) to an urban area; ----- [(b) a Municipal Council for a smaller urban area; and](http://indiankanoon.org/doc/497932/) [(c) a Municipal Corporation for a larger urban area, in accordance with the provisions of this Act:](http://indiankanoon.org/doc/966335/) Provided that a municipality under this section may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as it may deem fit, by notification, specify to be an industrial township. _Explanation.—In this section, “a transitional area”, “a smaller urban area” or “a larger urban area”_ means such areas as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in nonagricultural activities, the economic importance or such other factors as it may deem fit, specify by notification for the purposes of this Act. [(2) Notwithstanding anything contained in sub-section (1), any local area, except in Scheduled Area,](http://indiankanoon.org/doc/118422/) which was declared as a small town or a municipality under the Manipur Municipalities Act, 1976 (Manipur Act 26 of 1976), before the commencement of this Act, shall be deemed to have been declared as a transitional area or a smaller urban area, as the case may be, for the purpose of this Act. [(3) Before issue of notification under sub-section (1) a draft of the notification is to be published](http://indiankanoon.org/doc/381443/) indicating local limits of the area to be included or excluded from the municipality. [(4) Any person who is ordinarily resident of the local area in respect of which the draft notification](http://indiankanoon.org/doc/1256454/) has been published under sub-section (3) may, object to the proposal contained in such notification in writing to the Deputy Commissioner within forty-five days from the date of publication of the said draft notification. [(5) On receipt of the objection under sub-section (4), the Deputy Commissioner shall within](http://indiankanoon.org/doc/1051440/) forty-five days of the receipt of objection forward the same with his comments to the Government for its consideration. **[4. Effect of exclusion of local area from municipality.—(1) When a local area is excluded from a](http://indiankanoon.org/doc/1194518/)** municipality by a notification under sub-section (1) of section 3, and is included in the other local authority the Government shall frame a scheme determining what portion of the balance of the municipal fund and all other property vested in that municipality, shall, on such exclusion, vest— [(i) when such area is included within the limits of any other local authority, in such authority; and](http://indiankanoon.org/doc/155246/) [(ii) in any other case, in the Government and in what manner the liability of the municipality shall](http://indiankanoon.org/doc/1656094/) be apportioned between the municipality and such local authority or the Government, as the case may be, and on the publication of such a scheme in the Official Gazette, such property and liability shall vest and be apportioned accordingly: Provided that before framing of any such scheme, the Government shall consult the municipality and where the area is included within the limits of any local authority, such authority also. [(2) All money due to the municipality, immediately before the date of such exclusion on account of](http://indiankanoon.org/doc/148920/) tax, toll, fee, rate or otherwise may in respect of the areas so excluded be recovered by the municipality as if such area has not been excluded. **[5. Election and maintenance of boundary marks.—Every municipality shall cause to be erected](http://indiankanoon.org/doc/544573/)** and set up and maintain boundary marks defining the limits of the area subject to its authority as set out by the notification. CHAPTER III NAGAR PANCHAYAT **[6. Incorporation of Nagar Panchayat.—A Nagar Panchayat shall be a body corporate by its name,](http://indiankanoon.org/doc/1351979/)** having a perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract, and shall sue and be sued in its name. **[7. Composition of Nagar Panchayat.—(1) Every Nagar Panchayat shall consist of such number of](http://indiankanoon.org/doc/1287896/)** Councillors as may be fixed by the Government from time to time by notification. ----- [(2) Save as otherwise provided in sub-section (3), all the seats in a Nagar Panchayat shall be filled by](http://indiankanoon.org/doc/1992082/) persons chosen by direct election from the territorial constituencies to be known as wards in the municipal area of Nagar Panchayat. [(3) The Government may appoint a person having special knowledge or experience in municipal](http://indiankanoon.org/doc/1468504/) administration to be a Councillor of the Nagar Panchayat: Provided that such person shall not have the right to vote in the meetings of the Nagar Panchayat. **[8. Application of certain provisions relating to Council in case of Nagar Panchayat.—The](http://indiankanoon.org/doc/1721786/)** provisions of sections 17, 19 and 20 of this Act relating to Council shall also apply in case of Nagar Panchayat. **[9. Chairperson and Vice-Chairperson of Nagar Panchayat.—For every Nagar Panchayat there](http://indiankanoon.org/doc/170264/)** shall be a Chairperson and a Vice-Chairperson. **[10. Election of Chairperson and Vice-Chairpersons.—(1) Save as otherwise provided in the Act,](http://indiankanoon.org/doc/1802057/)** the Councillors at the first meeting of the Nagar Panchayat to be called at the instance of the Deputy Commissioner after a General Election shall elect one of them to be the Chairperson in accordance with the rules made in this behalf. [(2) An election under sub-section (1) shall take place—](http://indiankanoon.org/doc/1193684/) [(a) within twenty-one days from the date of notification of the result under section 22;](http://indiankanoon.org/doc/198419/) [(b) in the case of vacancy in the office of the Chairperson on account of any reason other than the](http://indiankanoon.org/doc/1648152/) expiry of the term of office of the Chairperson, within twenty-one days from the date of the occurrence of the vacancy. [(3) The State Government shall appoint a person to preside over the meeting and for the purpose of](http://indiankanoon.org/doc/1911057/) the business mentioned in sub-section (1). [(4) The Councillors shall, either at the meeting referred to in sub-section (1) or at any subsequent](http://indiankanoon.org/doc/308719/) meeting elect one among themselves, other than the Chairperson elected under sub-section (1), to be a Vice-Chairperson. **[11. Resignation by Chairperson, Vice-Chairperson and Councillor.—(1) The Chairperson may](http://indiankanoon.org/doc/1315892/)** resign his office by writing under his hand addressed to the Executive Officer. [(2) The Vice-Chairperson or a Councillor may resign his office by writing under his hand addressed](http://indiankanoon.org/doc/252587/) to the Chairperson, who shall forward it to the Executive Officer. [(3) The resignation under sub-section (1) or sub-section (2) shall take effect from the date on which it](http://indiankanoon.org/doc/1360815/) is accepted by the Government. [(4) The Executive Officer shall forthwith intimate the fact of resignation received under](http://indiankanoon.org/doc/1363564/) sub-section (1) or sub-section (2) to the Nagar Panchayat and the State Government. [(5) On receipt of intimation under sub-section (4) the State Government shall notify the fact of the](http://indiankanoon.org/doc/491734/) resignation and occurrence of casual vacancy consequent thereon. **[12. Remuneration to Chairperson and Vice-Chairperson.—The Chairperson or Vice-Chairperson](http://indiankanoon.org/doc/420848/)** or any other Councillor of Nagar Panchayat may be granted by that Nagar Panchayat such remuneration or such allowance as may be prescribed. CHAPTER IV MUNICIPAL COUNCIL **[13. Incorporation of Municipal Council.—A Municipal Council shall be a body corporate by its](http://indiankanoon.org/doc/1022342/)** name, having a perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract, and shall sue and be sued in its name. **[14. Municipal administration.—Except as otherwise provided in this Act, the municipal](http://indiankanoon.org/doc/702284/)** administration of a municipality shall vest in the Council or the Nagar Panchayat, as the case may be. ----- **[15. Composition of Council.—(1) Every Council shall consist of such number of councillors as may](http://indiankanoon.org/doc/764297/)** be fixed by the State Government from time to time by notification. [(2) Save as provided in sub-section (3), all the seats in a municipality shall be filled by persons](http://indiankanoon.org/doc/618300/) chosen by direct election from the territorial constituencies to be known as wards in the municipal area. [(3) The State Government may appoint a person having special knowledge or experience in](http://indiankanoon.org/doc/1570214/) Municipal administration to be a member of the Municipal Council: Provided that such person shall not have the right to vote in the meetings of the Council. **[16. Constitution and composition of Wards Committees.—(1) In respect of a municipality having](http://indiankanoon.org/doc/1430943/)** population of three lakhs or more there shall be constituted by the State Government, by order, such number of Wards Committees as may be determined by it, so however, that each Wards Committee shall consist of not less than five wards: Provided that in constituting Wards Committees, the State Government shall maintain geographical contiguity as far as possible. [(2) Each Wards Committee shall consist of—](http://indiankanoon.org/doc/921424/) [(i) the members elected from the wards for which Wards Committee is constituted;](http://indiankanoon.org/doc/1807515/) [(ii) the Executive Officer who shall be the ex officio member; and](http://indiankanoon.org/doc/1918135/) [(iii) such other officers of the municipality as the State Government may specify to be ex officio](http://indiankanoon.org/doc/1171220/) members of whom one specified officer shall be the Secretary of the Wards Committee: Provided that the ex officio members shall have the right to speak and participate in the meetings of the Wards Committee but shall not have the right to vote. [(3) The Chairperson of the Wards Committee shall be elected by the elected members thereof from](http://indiankanoon.org/doc/1476964/) among themselves. [(4) The Chairperson shall cease to hold office if he ceases to be a member of the Wards Committee.](http://indiankanoon.org/doc/1173051/) Any casual vacancy in the office of the Chairperson shall be filled by election of another Chairperson from among the elected members of the Wards Committee as soon as may be after the occurrence of the vacancy. [(5) The powers and functions of the Wards Committee and the manner of conduct of business at its](http://indiankanoon.org/doc/1323560/) meetings shall be such as may be prescribed. **[17. Reservation of seats.—(1) In every municipality, out of the total strength of elected members](http://indiankanoon.org/doc/945843/)** determined under section 15, the State Government shall subject to such rules as may be prescribed, by notification, reserve— [(i) such number of seats to the Scheduled Castes and the Scheduled Tribes as may be determined](http://indiankanoon.org/doc/1585584/) by them, subject to the condition that the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election to the Municipal Council, as the population of the Scheduled Castes, or as the case may be, of the Scheduled Tribes in that municipality bears to the total population of that municipality; and such seats may be allotted by rotation to different wards in the municipality; [(ii) not less than one-third of the total number of seats reserved under sub-section (1) shall be](http://indiankanoon.org/doc/1494275/) reserved for women belonging to the Scheduled Castes or as the case may be, the Scheduled Tribes; [(iii) not less than one-third (including the number of seats reserved for women belonging to the](http://indiankanoon.org/doc/1520198/) Scheduled Tribes and the Scheduled Castes) of the total number of seats to be filled by direct election to every Council, for women; and such seats may be allotted by rotation to different wards in a municipality. _Explanation.—In this section the expressions “Scheduled Castes”, “Scheduled Tribes” shall have the_ meanings respectively assigned to them in clauses (24) and (25) of article 366 of the Constitution of India. ----- [(2) The office of Chairpersons of the municipalities shall be reserved for the Scheduled Castes, the](http://indiankanoon.org/doc/493469/) Scheduled Tribes and women in such manner as the State Government may prescribe by notification in this regard. [(3) The reservation of seats under sub-section (1) including the reservation of office of Chairperson](http://indiankanoon.org/doc/1049789/) (other than the reservation for women) under sub-section (2) shall cease to have effect on the expiration of the period specified in article 334 of the Constitution of India. **[18. Allocation of reserved seats and delimitation of wards.—The State Government shall carry out](http://indiankanoon.org/doc/1067698/)** the determination of the boundaries of the wards in a municipality and the allocation of seats reserved in favour of the Scheduled Castes, the Scheduled Tribes and women among the wards in the prescribed manner. **[19. Disqualifications for membership.—(1) A person shall be disqualified for being chosen as and](http://indiankanoon.org/doc/461708/)** for being, a member of a municipality— [(a) if he is so disqualified by or under any law for the time being in force for the purposes of](http://indiankanoon.org/doc/471353/) elections to the Manipur Legislative Assembly: Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has attained the age of twenty-one years; [(b) if he is so disqualified by or under any law made by Manipur Legislative Assembly;](http://indiankanoon.org/doc/1610081/) [(c) if he is not registered as an elector in the electoral roll for a ward;](http://indiankanoon.org/doc/909937/) [(d) if he is not ordinarily resident within the ward from which he is seeking election.](http://indiankanoon.org/doc/802763/) _Explanation.—The expression “ordinarily resident” shall have the same meaning as assigned to it in_ section 20 of the Representation of the People Act, 1950 (43 of 1950). [(2) If any question arises as to whether a member of a municipality has become subject to any of the](http://indiankanoon.org/doc/1985511/) disqualifications mentioned in sub-section (1) the question shall be referred for the decision of the Election Tribunal in such manner as may be prescribed. **[20. Oath of office.—(1) Every person who is elected or appointed as a Councillor of a municipality](http://indiankanoon.org/doc/631644/)** shall, before entering upon his office under this Act, make and subscribe before such authority as may be prescribed for the purpose, an oath or affirmation of his allegiance to the Constitution of India in the prescribed form. [(2) Any person, having been elected, or appointed as a Councillor fails to make and subscribe, within](http://indiankanoon.org/doc/46711/) three months from the date of the first meeting of the municipality the oath or affirmation laid down in sub-section (1) shall cease to hold his office and his office shall be deemed to have become vacant. **[21. Appointment of administrator.—The State Government shall appoint a person as an](http://indiankanoon.org/doc/1009588/)** administrator to exercise the powers and perform the duties and functions of a municipality until a municipality is constituted for such area under this Act: Provided that the period of such appointment shall not exceed six months: Provided further that an administrator appointed under the provisions of the Manipur Municipalities Act, 1976 (Manipur Act 26 of 1976 ) on or before the 12th day of October, 1993 shall be deemed to have been validly appointed under that Act and the term of such administrator shall cease to have effect on the commencement of this Act. **[22. Duration of municipalities, etc.—(1) Every municipality, unless sooner dissolved under this](http://indiankanoon.org/doc/1380370/)** Act, shall continue for five years from the date appointed for its first meeting after a general election at which a quorum is present and no longer: Provided that a municipality which is functioning immediately before the commencement of this Act shall continue till the expiration of its duration, unless sooner dissolved by a resolution passed to that effect by the Legislative Assembly of the State of Manipur. [(2) An election to constitute a municipality shall be completed—](http://indiankanoon.org/doc/1553024/) [(a) before the expiry of its duration specified in sub-section (1);](http://indiankanoon.org/doc/1185613/) ----- [(b) before the expiration of a period of six months from the date of its dissolution:](http://indiankanoon.org/doc/55526/) Provided that where the remainder of the period for which the dissolved municipality would have continued is less than six months, it shall not be necessary to hold any election under this sub-section for constituting the municipality for such period: Provided further that the result of election shall be notified. [(3) A municipality constituted upon the dissolution of a municipality before the expiration of its](http://indiankanoon.org/doc/896221/) duration shall continue only for the remainder of the period for which the dissolved municipality would have continued under sub-section (1) had it not been so dissolved. **[23. Every Council to have Chairperson and a Vice-Chairperson.—For every Council, there shall](http://indiankanoon.org/doc/1785832/)** be a Chairperson and a Vice-Chairperson. **[24. Election of Chairperson.—(1) Save as otherwise provided in this Act, the Councillors at the first](http://indiankanoon.org/doc/1461619/)** meeting of the Council to be called at the instance of the Deputy Commissioner after a general election shall elect one of them to be the Chairperson in accordance with rules made in this behalf. [(2) Such election shall take place within twenty-one days from the date of notification of the result](http://indiankanoon.org/doc/1742388/) under section 22; and in the case of vacancy in the office of the Chairperson on account of any reason other than expiry of the term of office of the Chairperson, within twenty-one days from the date of the occurrence of the vacancy. [(3) The State Government shall appoint a person to preside over the meeting and for the purpose of](http://indiankanoon.org/doc/1344299/) the business mentioned in sub-section (1). **[25. Election of Vice-Chairperson.—The Councillors shall, either at the meeting mentioned in](http://indiankanoon.org/doc/913339/)** [sub-section (1) of section 24 or at subsequent meeting elect one among themselves other than the](http://indiankanoon.org/doc/1412637/) Chairperson elected under sub-section (1) of section 24 to be the Vice-Chairperson. **[26. Chairperson and Vice-Chairperson cease to hold office as such.—When a Councillor who](http://indiankanoon.org/doc/1654467/)** holds the office of Chairperson or the Vice-Chairperson ceases, for any reason whatsoever to be a Councillor, he shall, at the same time, cease to hold office of the Chairperson or the Vice-Chairperson, as the case may be. **[27. Filling up of vacancies and term of office of persons filling up the vacancy.—If any](http://indiankanoon.org/doc/1663051/)** Councillor is by reason of his death, resignation or removal or otherwise, is unable to complete his full term of office, the vacancy so caused shall be filled up by election or appointment, as the case may be, of a person under the provisions of this Act and the person so elected or appointed shall hold office for the unexpired term of his predecessor: Provided that no election for filling up a casual vacancy shall be held if the vacancy occurs within a period of six months preceding the date on which the term of office of the Councillor expires. **[28. Resignation by Chairperson, Vice-Chairperson and Councillor.—(1) The Chairperson may](http://indiankanoon.org/doc/1441174/)** resign his office by writing a letter of resignation addressed to the Vice-Chairperson, who shall forthwith deliver the letter to the Executive Officer. [(2) The Vice-Chairperson or a Councillor may resign his office by writing a letter of resignation](http://indiankanoon.org/doc/647123/) addressed to the Chairperson, who shall forthwith deliver the letter to the Executive Officer. [(3) The resignation under sub-section (1) or sub-section (2) shall take effect from the date on which it](http://indiankanoon.org/doc/1371711/) is accepted by the Government. [(4) The Executive Officer shall forthwith intimate the fact of resignation received under](http://indiankanoon.org/doc/289758/) sub-section (1) or sub-section (2) to the Council and the State Government. [(5) On receipt of the intimation under sub-section (4), the State Government shall notify in the](http://indiankanoon.org/doc/216278/) Official Gazette the fact of the resignation and occurrence of casual vacancy consequent thereon. **[29. Removal of Councillors.—(1) The State Government may remove any elected Councillor on the](http://indiankanoon.org/doc/361766/)** ground of his misconduct in the discharge of his duties if the removal is recommended by a resolution of the municipality passed at a special meeting called for the purpose and supported by a majority of the ----- total number of Councillors of the municipality and by a majority of not less than two-third of Councillors present and voting in such a meeting. [(2) The State Government may remove any Councillor—](http://indiankanoon.org/doc/803120/) [(a) if he ceases to reside within the municipality continuously for a period of twelve months; or](http://indiankanoon.org/doc/1814264/) [(b) if he has been declared by the State Government by notification to have violated his oath or](http://indiankanoon.org/doc/692811/) affirmation of allegiance; or [(c) if he becomes disqualified by or under any law for the time being in force for the purposes of](http://indiankanoon.org/doc/696639/) elections to the Manipur Legislative Assembly; or [(d) if he has, within the meaning of section 59 knowingly acquired or continued to hold without](http://indiankanoon.org/doc/309362/) the permission in writing of the State Government, directly or indirectly or as a partner, any share or interest in any contract or employment with, by or on behalf, of the municipality; or [(e) if he is in arrears of any kind of dues to the municipality for more than six months after a bill](http://indiankanoon.org/doc/1762576/) or a notice has been duly served on him: Provided that no Councillor shall be removed under sub-section (1) or sub-section (2) unless he has been given an opportunity of being heard. **[30. Effect of removal of a Councillor.—No Councillor of a Nagar Panchayat or a Council who has](http://indiankanoon.org/doc/1291122/)** [been removed from his office under sub-section (1) or under clause (b), (c), (d) or (e) of sub-section (2) of](http://indiankanoon.org/doc/545034/) section 29 shall be eligible for election or re-election as a Councillor for such period as may be prescribed. **[31. No-confidence motion against Chairperson or Vice-Chairperson.—(1) The State Government](http://indiankanoon.org/doc/1514443/)** may remove by a notification in the Official Gazette, from office the Chairperson or the Vice-Chairperson, in pursuance of a resolution passed by a majority of the total number of the Councillors and supported by not less than two-third of the Councillors present and voting at a meeting specially convened for the purpose under sub-section (2). [(2) For the purposes of sub-section (1) a meeting of the Nagar Panchayat or of the Council shall be](http://indiankanoon.org/doc/1556995/) held in the following manner, namely:— [(i) the meeting shall be convened by the Executive Officer on a requisition signed by not less than](http://indiankanoon.org/doc/1585149/) one-fifth of the total number of Councillors constituting the Nagar Panchayat or the Council for the time being; [(ii) the notice of such a meeting specifying the time and place thereof shall be despatched by the](http://indiankanoon.org/doc/1552569/) Executive Officer to every Councillor ten days before the meeting; [(iii) the Chairperson or the Vice-Chairperson, as the case may be, against whom the resolution](http://indiankanoon.org/doc/291811/) referred to in sub-section (1) is to be moved, shall not preside over the meeting; [(iv) a copy of the notice shall be sent to the State Government.](http://indiankanoon.org/doc/541680/) [(3) If the office of the Chairperson becomes vacant all powers and duties of the Chairperson, may,](http://indiankanoon.org/doc/1918060/) until the election of a new Chairperson be exercised and performed by the Vice-Chairperson. [(4) The removal of the Chairperson or the Vice-Chairperson under sub-section (1) shall be effective](http://indiankanoon.org/doc/251288/) from the date of its resolution in this regard. **[32. Grant of leave of absence to Chairperson or Vice-Chairperson.—(1) The Nagar Panchayat or](http://indiankanoon.org/doc/53743/)** the Council, as the case may be, may, from time to time, grant such leave of absence to the Chairperson or the Vice-Chairperson as it may deem fit. [(2) If a Chairperson or a Vice-Chairperson remains absent from office owing to illness or any other](http://indiankanoon.org/doc/186195/) cause for a period exceeding three months without the leave of the Nagar Panchayat or the Council, as the case may be, he shall cease to be Chairperson or Vice-Chairperson, as the case may be, and his office shall become vacant. [(3) During the absence on leave of the Chairperson, the Vice-Chairperson and in the like event in the](http://indiankanoon.org/doc/1242616/) case of a Vice-Chairperson such one of the Councillors as may be elected by them to act as ----- Vice-Chairperson, shall discharge the functions of the Chairperson or the Vice-Chairperson, as the case may be. [(4) The Vice-Chairperson or the Councillor shall, during and in respect of the period in which he is](http://indiankanoon.org/doc/1802432/) acting as, or discharging the function of Chairperson or Vice-Chairperson, as the case may be, exercise the powers conferred and perform the duties imposed on a Chairperson or a Vice-Chairperson by or under this Act or by any other law for the time being in force. **[33. Powers and functions of the Chairperson.—It shall be the function of the Chairperson—](http://indiankanoon.org/doc/1689504/)** [(a) to preside, unless prevented by reasonable cause, over all meetings of the Nagar Panchayat or](http://indiankanoon.org/doc/1392794/) the Council, as the case may be, and subject to the provisions of the bye-laws for the time being in force, to regulate the conduct of business at such meetings; [(b) to watch over the financial and executive administration of the Nagar Panchayat or the](http://indiankanoon.org/doc/1287233/) Council, as the case may be, and perform such executive functions as may be allotted to him by or under this Act and rules or bye-laws framed thereunder; [(c) to exercise supervisory and executive control over acts and duties of all officers and](http://indiankanoon.org/doc/1862585/) employees of the Nagar Panchayat or the Council, as the case may be, in matters respecting their executive functions and the accounts and records of the Nagar Panchayat or the Council, as the case may be; [(d) to direct, in case of emergency, the execution or stoppage of any work or doing of any act](http://indiankanoon.org/doc/203931/) which requires the sanction of the Nagar Panchayat or the Council, as the case may be, and the immediate execution or doing of which is, in his opinion necessary for the service or safety of the public, and the expenses incurred in the execution of such work or doing of such act shall be paid from Municipal Fund: Provided that— [(a) he shall not act under clause (d) in contravention of any order of the Nagar Panchayat or the](http://indiankanoon.org/doc/1392794/) Council, as the case may be, prohibiting the execution of any particular work or the doing of any particular act; and [(b) he shall report forthwith the action taken under clause (d) and the reasons therefor to the](http://indiankanoon.org/doc/1287233/) Nagar Panchayat or the Council, as the case may be, at its next meeting. **[34. Function of Vice-Chairperson.—It shall be the function of the Vice-Chairperson—](http://indiankanoon.org/doc/398371/)** [(a) in the absence of the Chairperson and unless prevented by reasonable cause, to preside over](http://indiankanoon.org/doc/1702556/) the meetings of the Nagar Panchayat or the Council, as the case may be, and he shall, when so presiding, exercise the same authority as is vested in the Chairperson under clause (a) of section 33; [(b) pending the election of a Chairperson, or during the absence of the Chairperson to exercise the](http://indiankanoon.org/doc/856417/) powers and perform the duties of the Chairperson. **[35.](http://indiankanoon.org/doc/832586/)** **Remuneration** **of** **Chairperson** **and** **Vice-Chairperson.—The** Chairperson, the Vice-Chairperson or any other Councillor of a Council may be granted by the Council such remuneration or such allowance as may be prescribed: Provided that the expenditure to be incurred under this section shall without prejudice to the provisions of section 71, be paid out of the Municipal Fund. **[36. Powers, authority and responsibilities of municipalities.—(1) The State Government as and](http://indiankanoon.org/doc/1264945/)** when it considers expedient may, by notification, entrust— [(a) the municipalities with the function of—](http://indiankanoon.org/doc/1107195/) [(i) the preparation of plans for economic development and social justice;](http://indiankanoon.org/doc/221995/) [(ii) the performance of functions and the implementation of schemes as may be entrusted to](http://indiankanoon.org/doc/1938341/) including those in relation to the matters listed in the Schedule; ----- [(b) the Committees with such powers and authority as may be necessary to enable them to carry](http://indiankanoon.org/doc/315457/) out the responsibilities conferred upon them including those in relation to the matters listed in the Schedule. [(2) On entrustment of functions under sub-section (1), the Government shall allot to the municipality](http://indiankanoon.org/doc/803370/) such fund and personnel as may be necessary to enable the municipality to discharge the functions and duties so entrusted. **[37. Obligatory functions of the municipality.—It shall be the duty of every municipality to make](http://indiankanoon.org/doc/1784122/)** reasonable provision for the following matters within the municipality under its jurisdiction, namely:— [(a) lighting public roads and places;](http://indiankanoon.org/doc/1964550/) [(b) watering public roads and places;](http://indiankanoon.org/doc/157275/) [(c) cleaning public roads, places and sewers and all spaces not being private property, which are](http://indiankanoon.org/doc/1930396/) open to the enjoyment of the public whether such spaces are vested in the municipality or not, removing noxious vegetation and abating all public nuisance; [(d) removing filth, rubbish, night-soil, odour or any other noxious or offensive matter from](http://indiankanoon.org/doc/1381202/) privies, latrines, urinals, cess-pools or other common receptacles or such matter in or pertaining to a building or buildings; [(e) extinguishing fires and protecting life and property when fire occurs;](http://indiankanoon.org/doc/981491/) [(f) regulating offensive or dangerous trades or practices;](http://indiankanoon.org/doc/959277/) [(g) removing obstructions and projections in public roads or places and in spaces not being](http://indiankanoon.org/doc/223492/) private property, which are open to the enjoyment of the public whether such spaces are vested in the municipality or belong to the State Government; [(h) securing or removing dangerous buildings or places and reclaiming unhealthy localities;](http://indiankanoon.org/doc/611773/) [(i) acquiring, maintaining, changing and regulating places for the disposal of dead bodies and of](http://indiankanoon.org/doc/762373/) the carcasses of dead animals; [(j) constructing, altering and maintaining public roads, culverts, municipal boundary marks,](http://indiankanoon.org/doc/984138/) markets, slaughter-houses, drains, sewers, drainage-works, sewerage-works, baths, washing-places, drinking-fountains, tanks, wells, dams and the like; [(k) constructing public latrines, privies and urinals;](http://indiankanoon.org/doc/358744/) [(l) obtaining a supply or an additional supply of water, proper and sufficient for preventing](http://indiankanoon.org/doc/1379259/) danger to the health of inhabitants from the insufficiency or unwholesomeness of the existing supply; [(m) naming streets and numbering houses;](http://indiankanoon.org/doc/410436/) [(n) registering births and deaths;](http://indiankanoon.org/doc/700278/) [(o) suitable accommodation for any calves, cows or buffaloes required within the municipality for](http://indiankanoon.org/doc/1074851/) the supply of animal lymph; [(p) printing such annual reports on the administration of the municipality as may be necessary or](http://indiankanoon.org/doc/1659026/) as the State Government may by general or special orders require the municipality to print; [(q) making arrangements for preparation of compost manure from night-soil and rubbish; and](http://indiankanoon.org/doc/1218016/) [(r) establishing and maintaining cattle ponds.](http://indiankanoon.org/doc/902920/) **[38. Special duties of municipalities.—Subject to such reasonable provisions as may be made under](http://indiankanoon.org/doc/638924/)** section 37 every municipality shall make reasonable provision for the following special matters, namely:— [(a) providing special medical aid and accommodation for the sick in times of a dangerous disease](http://indiankanoon.org/doc/617906/) and taking such measures as may be required to prevent the outbreak or suppress and prevent the recurrence of the disease; and [(b) giving relief and establishing and maintaining relief works, in times of famine or scarcity, to](http://indiankanoon.org/doc/1169940/) or for destitute persons within the limits of the municipality. ----- **[39. Discretionary functions of municipality.—A municipality may, at its discretion, provide out of](http://indiankanoon.org/doc/386870/)** the municipal property and fund, either wholly or partly, for— [(a) laying out, whether in areas previously built upon or not, new public roads and acquiring land](http://indiankanoon.org/doc/1238480/) for the purpose, including land acquired for the construction of buildings for curtilages thereof, to about on such roads; [(b) constructing, establishing, maintaining, or contributing to the maintenance of public parks,](http://indiankanoon.org/doc/666113/) gardens, libraries, museums, reading rooms, halls, offices, dharmashalas, rest-houses, encamping grounds and other public buildings and places; [(c) constructions and maintaining, where necessary suitable sanitary houses for the habitation of](http://indiankanoon.org/doc/240811/) the poor and granting loans for the construction of such houses or for effecting necessary improvements connected therewith; [(d) providing accommodation for any class of servants employed by the municipality or granting](http://indiankanoon.org/doc/1493249/) loans to such servants for construction of houses subject to the rules made in this behalf; [(e) planting and maintaining trees in the roadside;](http://indiankanoon.org/doc/731688/) [(f) securing or assisting to secure suitable places for the carrying on the offensive trades](http://indiankanoon.org/doc/457121/) mentioned in section 167; [(g) supplying, constructing and maintaining receptacles, fitting pipes, and other appliances](http://indiankanoon.org/doc/659013/) whatsoever on or for the use of private premises, for receiving and conducting the sewage thereof into sewers under the control of the municipality; [(h) the public health and infant welfare;](http://indiankanoon.org/doc/1250322/) [(i) contribution towards any public fund raised for the relief of human suffering within or without](http://indiankanoon.org/doc/863722/) the municipality; [(j) any public reception, ceremony, entertainment, or exhibition within the municipality by a](http://indiankanoon.org/doc/1320335/) resolution passed at a general meeting and supported by one-half of the total number of Councillors; [(k) the organisation or maintenance of shops or stall for the sale of necessities of life;](http://indiankanoon.org/doc/1121344/) [(l) holding fairs and exhibitions;](http://indiankanoon.org/doc/1993406/) [(m) supply of milk;](http://indiankanoon.org/doc/862708/) [(n) establishing labour welfare centres for its employees and subsidizing the activities of any](http://indiankanoon.org/doc/205738/) association, union or club of such employees by grant of loan for its general advancement; [(o) maintenance of ambulance service;](http://indiankanoon.org/doc/1972536/) [(p) establishing and maintaining public hospitals and dispensaries and providing public medical](http://indiankanoon.org/doc/975607/) service; [(q) providing facilities for antifrabic treatment and meeting the expenses of indigent person](http://indiankanoon.org/doc/1973024/) undergoing antifrabic treatment within or outside the municipal limits; [(r) housing and maintaining destitute, orphans and cripples and maintaining maternity centre and](http://indiankanoon.org/doc/1536072/) child welfare clinics; [(s) establishing rescue homes;](http://indiankanoon.org/doc/470680/) [(t) any other matter which is likely to promote education or the public health safety or](http://indiankanoon.org/doc/1301480/) convenience or the advancement of economic condition of the inhabitants of the municipality or which is necessary for the purposes of this Act. **[40. Management of public institution by municipality to vest in it.—The management, control and](http://indiankanoon.org/doc/1529349/)** administration of every public institution exclusively maintained out of the municipal property and fund shall vest in the municipality by which it is so maintained. ----- CHAPTER V ESTABLISHMENT **[41. Appointment of Executive Officers.—(1) There shall be an Executive Officer of every Nagar](http://indiankanoon.org/doc/100763/)** Panchayat or Council, as the case may be, who shall also function as Secretary to the Nagar Panchayat or Council, as the case may be, and all other officers and employees of the Nagar Panchayat or Council, as the case may be, shall be subordinate to him. [(2) A Nagar Panchayat or Council, as the case may be, shall appoint an Executive Officer with the](http://indiankanoon.org/doc/610217/) concurrence of the State Government and the State Government may, if any particular Nagar Panchayat or Council, as the case may be, does not make such appointment, appoint any person as such officer in respect of that Nagar Panchayat or Council, as the case may be. [(3) A Nagar Panchayat or Council, as the case may be, may in addition to the Executive Officer, also](http://indiankanoon.org/doc/353767/) appoint other officer to assist the Executive Officer with the concurrence of the State Government. **[42. Main functions of the Executive Officer.—The Executive Officer shall,—](http://indiankanoon.org/doc/827023/)** [(a) subject to the general control of the Chairperson, watch over the financial and executive](http://indiankanoon.org/doc/374069/) administration of the Nagar Panchayat or Council, as the case may be, and perform all the duties and exercise all the powers imposed or conferred upon him, by or delegated to him under this Act and rules and bye-laws framed thereunder; and [(b) give effect to the decision taken by the Nagar Panchayat or Council, as the case may be, and](http://indiankanoon.org/doc/133029/) submit periodical reports, if the Nagar Panchayat or Council, as the case may be, so directs, regarding the progress made in respect thereof. **[43. Appointment of Health Officer, Revenue Officer and Engineer.—(1) Every Nagar Panchayat](http://indiankanoon.org/doc/792984/)** or Council, as the case may be, shall have a Health Officer, a Revenue Officer and an Engineer for the efficient discharge of its functions and duties. [(2) The Nagar Panchayat or Council, as the case may be, shall appoint a Health Officer, a Revenue](http://indiankanoon.org/doc/1095581/) Officer and the Engineer with the concurrence of the State Government. **[44. Power of Nagar Panchayat and Council to determine strength of its employees.—(1) Except](http://indiankanoon.org/doc/1392818/)** as provided in sections 41 and 43 and subject to the approval of the State Government, a Nagar Panchayat or a Council may, by a special resolution determine the category and strength of employees required by it, for discharge of its functions and duties. [(2) Notwithstanding anything contained in section 71, the expenditure incurred on the establishment](http://indiankanoon.org/doc/1473345/) of Nagar Panchayat or a Council shall be paid out of the Municipal Fund. **[45. Power of Nagar Panchayat and Council to appoint its officers and employees.—Subject to](http://indiankanoon.org/doc/1223722/)** the provisions contained in sections 41 and 43 a Nagar Panchayat or a Council shall have power to appoint its officers and employees: Provided that the Chairperson may fill up such non-technical posts in the Grades III and IV in such manner as may be laid down in bye-laws framed in this behalf. **[46. Disciplinary action against employees of Nagar Panchayat and Council and conditions of](http://indiankanoon.org/doc/1233400/)** **[their services, etc.—(1) An employee of a Nagar Panchayat or a Council who is aggrieved by an order of](http://indiankanoon.org/doc/1313704/)** the Chairperson in a disciplinary proceeding against him shall have right to appeal to the Nagar Panchayat or the Council within thirty days from the date of service of such order on him. [(2) An employee who is aggrieved by an order of the Nagar Panchayat or the Council may prefer an](http://indiankanoon.org/doc/1506550/) appeal to the State Government against such an order within sixty days from the date of service of such order: Provided that no appeal against an order other than an order for removal or dismissal shall lie to the State Government. [(3) Subject to the provisions of this Act, the disciplinary action, conditions of the service and](http://indiankanoon.org/doc/425434/) qualifications in respect of the employees of a Nagar Panchayat or a Council shall be the same as applicable to the employees of the State Government, from time to time. ----- **[47. Gratuity and pension.—The rules relating to gratuities and pensions applicable to the employees](http://indiankanoon.org/doc/1797686/)** of the State Government shall apply to the employees of the Nagar Panchayat or, as the case may be, the Council and shall be paid out of the Fund of the Nagar Panchayat or, as the case may be, of the Council. **[48. Power to make rules.—The State Government may make rules regarding the appointment,](http://indiankanoon.org/doc/1977017/)** salaries, condition of services, powers, duties and functions of the Executive Officer, other officers and employees of the Nagar Panchayat or the Council and other relevant matters connected thereof: Provided that no disciplinary action shall be taken against the Executive Officer except with the approval of the State Government. CHAPTER VI CONDUCT OF BUSINESS **[49. Meeting of a Nagar Panchayat or of a Council.—(1) There shall be at least one meeting of the](http://indiankanoon.org/doc/8935/)** Nagar Panchayat or the Council for transaction of its business in every month to be held on such date as is fixed by the Nagar Panchayat or the Council at a special meeting convened for the purpose, at the municipal office, if any, or other convenient place of which notice has been duly given. [(2) If there be no business to be laid before the Nagar Panchayat or the Council at any monthly](http://indiankanoon.org/doc/1340470/) meeting, the Chairperson shall, instead of calling the meeting, give notice of the fact to each Councillor three days before the date which is fixed for the monthly meeting. [(3) The Chairperson, or in his absence the Vice-Chairperson may, on a written requisition of not not](http://indiankanoon.org/doc/1765668/) less than one-half of the total number of Councillors, call a special meeting. [(4) If the Chairperson or the Vice-Chairperson, as the case may be, fails to call a special meeting](http://indiankanoon.org/doc/1207613/) within fifteen days after any such requisition has been made, the meeting may be called by the Councillors who made the requisition. **[50. Chairperson of meeting.—If at a meeting neither the Chairperson nor the Vice-Chairperson is](http://indiankanoon.org/doc/424302/)** present, the Councillors present shall elect one of them to preside over the meeting and such Councillor shall perform all the duties and exercise all the powers of the Chairperson of Nagar Panchayat or a Council when presiding over a meeting: Provided that no candidate for election to the office of the Chairperson or the Vice-Chairperson shall preside at such election. **[51. Manner of deciding questions.—Save as otherwise expressly provided in or under this Act, all](http://indiankanoon.org/doc/1386800/)** questions brought before any meeting of the Nagar Panchayat or of the Council or of any of its committees shall be decided by a majority of votes of the Councillors present and voting and in the case of equality of votes, on any question the persons presiding shall have a second or casting vote: Provided that at the election— [(a) of Chairperson or Vice-Chairperson; or](http://indiankanoon.org/doc/968393/) [(b) of a Councillor to represent the Nagar Panchayat or the Council, as the case may be, under the](http://indiankanoon.org/doc/1442039/) provisions of any other law for the time being in force, in case of equality of votes, the person presiding shall not exercise his casting vote and the result shall be decided by lot. **[52. Adjournment of meeting in the absence of quorum.—(1) No business shall be transacted at a](http://indiankanoon.org/doc/939194/)** meeting unless a quorum of one-third of the total number of Councillors of a Nagar Panchayat, or a Council be present: Provided that in cases where the total number of Councillors of a Nagar Panchayat or a Council is not divisible by three, the total number shall be increase by such minimum number as to make the total number divisible by three. [(2) If there be no quorum present at a meeting the Chairperson or in his absence the](http://indiankanoon.org/doc/824578/) Vice-Chairperson shall adjourn the meeting to such hour of any future day as he may reasonably fix. A notice of such adjournment shall be fixed upon a notice board in the municipal office, and the business which would have been brought before the original meeting, has there been a quorum thereat, shall be ----- brought before the adjourned meeting and may be disposed of at such meeting or at any subsequent adjournments thereof whether there be a quorum present or not. [(3) A notice of adjournment exhibited in the notice board of the municipal office on the day on which](http://indiankanoon.org/doc/290784/) the meeting is adjourned, shall be sufficient notice of the subsequent meeting. **[53. Minutes of proceedings.—(1) Minutes of the proceedings of each meeting of a Nagar Panchayat](http://indiankanoon.org/doc/1390291/)** or of a Council or any of its Committee shall be recorded in a book to be kept for the purpose separately for the Nagar Panchayat or the Council and for each of its Committees and shall be signed by the persons who presided over the meeting. [(2) The minutes of the meeting of a Nagar Panchayat or of a Council shall at all reasonable times and](http://indiankanoon.org/doc/1623571/) without charge, be open to inspection, by any member of the public. [(3) The minutes of the proceedings of all meetings of the Nagar Panchayat or of the Council shall](http://indiankanoon.org/doc/935199/) forthwith be forwarded by the Executive Officer to the Deputy Commissioner, the Director and to the State Government. **[54. Modification and cancellation of resolution.—No resolution of a Nagar Panchayat or of a](http://indiankanoon.org/doc/1844374/)** Council shall be modified or cancelled except by a resolution supported by not less than two-thirds of the total number of Councillors and passed at a meeting whereof notice shall be given setting forth fully the proposed resolution to modify or cancel at such meeting and the motion of proposition for modification or cancellation of such resolution. **[55. Right of Government Officers to attend, address and take part in the meeting of the Nagar](http://indiankanoon.org/doc/510704/)** **Panchayat or of the Council.—The Deputy Commissioner, the Director and such other officers as the** State Government may, by general or special order specify in this behalf, shall be entitled to attend any meeting of a Nagar Panchayat or of a Council within their jurisdiction, address it on any matter affecting the work of their department and take part in the meetings thereof, but shall not have the right to vote. **[56. Appointment of Committees.—(1) The Nagar Panchayat or the Council at a meeting may](http://indiankanoon.org/doc/1311738/)** appoint, from time to time, committees to be called “Standing Committee” to assist it in the discharge of any specific duties devolved upon it under this Act, within the whole or any portion of the municipality and may delegate to any such committee all or any of its powers which may be necessary for the purpose of rendering such assistance, or withdraw all or any such powers, so delegated. [(2) Each Committee shall consist of Councillors and, when necessary, of such residents with special](http://indiankanoon.org/doc/1160732/) qualification when the Nagar Panchayat or the Council at a meeting desires to appoint, in such a case the number of Councillors shall not be less than two-thirds of the total number of the members of the Committee: Provided that no Councillor who has been appointed as a member of one committee, shall be appointed as such in another committee at a time. [(3) The members of such committees shall be liable to all the obligations imposed by this Act on the](http://indiankanoon.org/doc/678953/) Councillors of the Nagar Panchayat or of the Council in respect of such powers as may be delegated to them. [(4) All the proceedings of any such committee shall be subject to confirmation by the Nagar](http://indiankanoon.org/doc/791206/) Panchayat or the Council at a meeting. [(5) All questions connected with the removal or resignation of members of committee shall be settled](http://indiankanoon.org/doc/1211936/) by the Nagar Panchayat or the Council at a meeting. **[57. Chairperson of Committee.—(1) The Chairperson of the Nagar Panchayat or of the Council, as](http://indiankanoon.org/doc/965607/)** the case may be, if he is a member of any committee, shall be ex officio, Chairperson, thereof. [(2) The Vice-Chairperson of the Nagar Panchayat or of the Council, as the case may be, if appointed](http://indiankanoon.org/doc/1492250/) a member of any committee of which the Chairperson is not a member, shall be _ex officio Chairperson_ thereof. [(3) When neither the Chairperson nor the Vice-Chairperson of Nagar Panchayat or of a Council, as](http://indiankanoon.org/doc/1121923/) the case may be, is a member of a committee, the Chairperson of such committee shall be nominated by the Chairperson of the Nagar Panchayat or of the Council, as the case may be. ----- **[58. Liability for loss, waste or misapplication of funds and property.—Every Chairperson,](http://indiankanoon.org/doc/83250/)** Vice-Chairperson, Councillor, officer or employees of a Nagar Panchayat or of a Council including a Government servant whose services are lent to the Nagar Panchayat or to the Council, shall be liable for the loss, waste or misapplication of any money or other property owned by or vested in the Nagar Panchayat or the Council, if such loss, waste or misapplication is a direct consequence of any illegal act, omission, neglect or misconduct on his part; and a suit for compensation may be instituted against him in any Court of competent jurisdiction by the Nagar Panchayat or by the Council, as the case may be. **[59. Disqualifications of Councillors having share or interest in contract.—No Councillor of a](http://indiankanoon.org/doc/481394/)** Nagar Panchayat or of a Council shall have without the written permission of the State Government, directly or indirectly, any share or interest in any contract, lease, sale or purchase of land or any agreement for the same or any kind whatsoever to which the Nagar Panchayat or Council is a party, or shall hold any office of profit under it, and if any Councillor shall have such share or interest or shall hold such office he shall thereby become disqualified to continue in office as a Councillor: Provided that a Councillor shall not be so disqualified or liable by reason— [(a) of having a share or interest in—](http://indiankanoon.org/doc/456932/) [(i) a contract entered into between the Nagar Panchayat or the Council, as the case may be,](http://indiankanoon.org/doc/1837840/) and any incorporated or registered company or any registered Co-operative Society of which such Councillor is a member or shareholder; or [(ii) any agreement for the loan of money, or any security for the payment of money only; or](http://indiankanoon.org/doc/1043880/) [(iii) any newspaper in which any advertisement relating to the affairs of the municipality is](http://indiankanoon.org/doc/1082187/) inserted; or [(b) of his being professionally engaged on behalf of the Nagar Panchayat or the Council, as the](http://indiankanoon.org/doc/1526458/) case may be, as a legal or medical practitioner and receiving a fee for services rendered in his professional capacity. **[60. Penalty in case Councillors, executive officer, etc, having interest in a contract, etc., with the](http://indiankanoon.org/doc/1192291/)** **Nagar Panchayat or Council.—In a Nagar Panchayat or in a Council—** [(a) subject to the proviso to section 59 any Councillor who acquires, directly or indirectly any](http://indiankanoon.org/doc/1794831/) share or interest in any contract or employment with, under, by or on behalf of a Nagar Panchayat or a Council of which he is a Councillor; [(b) any executive officer or employee who acquires directly or indirectly any share or interest in](http://indiankanoon.org/doc/1962347/) any contract with, under, by or on behalf of a Nagar Panchayat or a Council except in so far as it relates to his own employment as executive officer or an employee, shall be punishable with fine which may extend to five thousand rupees. **[61. Disqualification from voting.—No Councillor of a Nagar Panchayat or of a Council or no](http://indiankanoon.org/doc/1818700/)** member of a committee shall vote or take part in the discussion of any question at a meeting of the Nagar Panchayat or of a Council or committee if the question is one in which he has direct or indirect pecuniary interest. CHAPTER VII MUNICIPAL PROPERTY, FINANCE AND CONTRACTS **[62. Municipal property and vesting thereof.—(1) All property within the municipality, other than](http://indiankanoon.org/doc/1236154/)** private property or property maintained by the Government or other local authority, shall vest in the Nagar Panchayat or the Council, as the case may be, and shall, with all other property of whatever nature and kind which may become vested in the Nagar Panchayat or the Council, as the case may be, be under its direction, management and control, unless the State Government otherwise directs by notification, namely:— [(a) all public roads including the soil, the pavements, stones and other materials thereof, and all](http://indiankanoon.org/doc/1662599/) drains, bridges, trees, erections, materials, implements and other things provided for such roads; [(b) all public streams, channels, water courses, springs, tanks, reservoirs, cisterns, wells,](http://indiankanoon.org/doc/541725/) aqueducts, conduits, tunnels, pipes, pumps and other water-works, whether made, laid or created at ----- the cost of the Nagar Panchayat or of the Council or otherwise and all bridges, buildings, engines, works, materials and things connected therewith or appertaining thereto and also any adjacent land, not being private property, appertaining to any public tanks: Provided that water-pipes and water-works connected therewith or appertaining thereto which with the consent of the Nagar Panchayat or of the Council are laid or set up in any street by the owners of any mill, factory, workshop or the like primarily for the use of their employees shall not be deemed to be public water-works by reason of their use by the public; [(c) all public sewers and drains, and all works, materials and things appertaining thereto and other](http://indiankanoon.org/doc/1509768/) conservancy works; [(d) all sewage, rubbish and offensive matter collected by the Nagar Panchayat or by the Council](http://indiankanoon.org/doc/1404424/) from roads, latrines, sewers, cesspools and other places; [(e) all public lamps, lamp-posts and apparatus connected there with or appertaining thereto, and](http://indiankanoon.org/doc/1456727/) all public gates, markets, slaughter houses and public buildings of every description which have been constructed or are maintained out of the municipal fund; and [(f) all land or other property transferred to the Nagar Panchayat or Council, as the case may be, by](http://indiankanoon.org/doc/604659/) the Government or acquired by the Nagar Panchayat or Council, as the case may be, by gift, purchase or otherwise for local public purposes. [(2) The State Government may, by notification direct that any property which has vested in the Nagar](http://indiankanoon.org/doc/46976/) Panchayat or the Council, as the case may be, shall cease to be so vested, and the State Government may pass such orders as it may deem fit regarding the disposal and management of such property. [(3) The State Government may resume any immovable property transferred to the Nagar Panchayat or](http://indiankanoon.org/doc/507970/) the Council, as the case may be, by itself or any other local authority for a public purpose on payment of the amount paid by the Nagar Panchayat or by the Council, as the case may be, for such transfer and the market value at the date of resumption of any building or works subsequently created or executed thereon by the Nagar Panchayat or by the Council, as the case may be: Provided that compensation need not be paid for buildings or works constructed or created in contravention of the terms of the transfer. **[63. Transfer of municipal property.—Notwithstanding anything contained in section 6 or 13, no](http://indiankanoon.org/doc/1304365/)** Nagar Panchayat or the Council, as the case may be, shall transfer any immovable property except in pursuance of a resolution passed at a meeting thereof by a majority of not less than two-third of its members and except when it is not required for local public purposes: Provided that in the case of property which has been transferred to it by the State Government the transfer under this section shall be subject to the previous sanction of the State Government: Provided further that nothing in this section shall apply to leases of immovable property for a term not exceeding two years in total. **[64. Execution of contracts.—(1) The Nagar Panchayat or the Council, as the case may be, may enter](http://indiankanoon.org/doc/1883234/)** into any contract necessary for the purposes of this Act. [(2) Every contract made by or on behalf of the Nagar Panchayat or the Council, as the case may be, in](http://indiankanoon.org/doc/599260/) respect of any sum exceeding ten thousand rupees shall be sanctioned by the Nagar Panchayat or the Council, as the case may be, at a meeting and shall be in writing and shall be signed by at least two Councillors one of whom shall be the Chairperson or the Vice-Chairperson and in absence of both the Executive Officer. Every such contract shall be sealed with common seal of the Nagar Panchayat or the Council, as the case may be. [(3) Any contract made in contravention of sub-section (2) shall not be binding on the Nagar](http://indiankanoon.org/doc/1198072/) Panchayat or the Council, as the case may be. **[65. Transfer of private roads, etc., to Nagar Panchayat or Council.—(1) The Nagar Panchayat or](http://indiankanoon.org/doc/87678/)** the Council at a meeting may agree with the person in whom the properly in any road, bridge, tank, ghat, well, channel, or drain, vests to take over the property therein or the control thereof, and after such agreement may declare by notice in writing put up thereon or near thereto that such roads, bridge, tank, ghat, well, channel or drain has been transferred to the Nagar Panchayat or the Council, as the case may be. ----- [(2) On completion of the transfer, the property shall vest in the Nagar Panchayat or the Council, as](http://indiankanoon.org/doc/1028283/) the case may be, and shall thenceforth be repaired and maintained out of the municipal fund. **[66. Acquisition of land.—When any land, whether within or without the limits of a municipality is](http://indiankanoon.org/doc/703514/)** required for the purposes of this Act, the State Government may, at the request of the Nagar Panchayat or the Council, proceed to acquire it under the provisions of the Land Acquisition Act, 1894 (1 of 1894), and on payment by the Nagar Panchayat or the Council, as the case may be, of the compensation awarded under that Act and of any other charges incurred in acquiring the land, the land shall vest in the Nagar Panchayat or the Council, as the case may be. **[67. Formation and custody for municipal fund.—(1) There shall be formed for each Nagar](http://indiankanoon.org/doc/354446/)** Panchayat and for each Council a municipal fund to be called the “Municipal Fund” and it shall be held by the Nagar Panchayat or by the Council, as the case may be, for the purposes of this Act and subject to the provisions thereof. [(2) The Municipal Fund shall vest in the Nagar Panchayat or the Council, as the case may be.](http://indiankanoon.org/doc/1079298/) **[68. Credit of moneys to the municipal fund.—(1) There shall be credited to the municipal fund:—](http://indiankanoon.org/doc/926148/)** [(a) all sums received by or on behalf of the Nagar Panchayat or the Council under the provisions](http://indiankanoon.org/doc/1891548/) of this Act or of any other law for the time being in force or under any contract; [(b) the balance, if any, standing at the credit of the Nagar Panchayat or the Council at the](http://indiankanoon.org/doc/236162/) commencement of this Act; [(c) all proceeds of the disposal of property by, or on behalf of, the Nagar Panchayat or the](http://indiankanoon.org/doc/306061/) Council; [(d) all rents accruing from any property of the Nagar Panchayat or the Council;](http://indiankanoon.org/doc/1125235/) [(e) all moneys raised by any tax levied for the purposes of this Act;](http://indiankanoon.org/doc/1810753/) [(f) all fees payable and levied under this Act;](http://indiankanoon.org/doc/655894/) [(g) all moneys received by the Nagar Panchayat or by the Council by way of compensation or for](http://indiankanoon.org/doc/391233/) compounding offences under the provisions of this Act; [(h) all moneys received by, or on behalf of, the Nagar Panchayat or the Council from the State](http://indiankanoon.org/doc/1909445/) Government or private individuals by way of grants, contribution, gift or deposits; and [(i) all interest and profit, arising from any investment of, or from any transaction in connection](http://indiankanoon.org/doc/690792/) with, any money belonging to the Nagar Panchayat or the Council. [(2) Nothing in this section or in this Act shall affect any obligation of a Nagar Panchayat or of a](http://indiankanoon.org/doc/1479630/) Council arising from a trust legally imposed upon or accepted by the Nagar Panchayat or by the Council, as the case may be. **[69. Powers of the Nagar Panchayat or of the Council to borrow money.—(1) A Nagar Panchayat](http://indiankanoon.org/doc/1127159/)** or a Council may, with the previous sanction of the State Government and subject to such conditions as may be prescribed as to security, the rate of interest and the repayment of principal and interest, borrow either from the State Government or any financial institution, any sum of money required or empowered to undertake under the provisions of this Act. [(2) Nothing contained in sub-section (1) or the rules made thereunder shall apply to grants or loans or](http://indiankanoon.org/doc/1269734/) advance made to a Nagar Panchayat or to a Council by any department, office or authority of the State Government or by any local authority or by any other institution towards, and for the purpose of, the implementation, achievement and accomplishment of community development schemes and a Nagar Panchayat or a Council may accept any such grant or loan which shall be regulated and governed by the terms on which, and the conditions subject to which, the same is made or advanced. **[70. Application of municipal property and fund.—(1) All property vested in a Nagar Panchayat or](http://indiankanoon.org/doc/1025094/)** in a Council under this Act, all funds received by it in accordance with the provisions of this Act and all ----- sums accruing to under the provisions of any law for the time being in force shall, subject to the provisions of this Act, be applied for the purposes of this Act, within the limits of the municipality. [(2) Notwithstanding anything contained in sub-section (1), it shall be lawful for a Nagar Panchayat or](http://indiankanoon.org/doc/1366357/) a Council, as the case may be, subject to rules made under this Act:— [(a) to incur expenditure beyond the municipal limits on the acquisition of land, or on the](http://indiankanoon.org/doc/1626002/) construction, maintenance or repair of works, for the purpose of obtaining supply of water required for inhabitants of the municipality or on establishing slaughter houses or places for the disposal of night-soil or sewage or carcasses of animals or for drainage works, or for the purpose of providing mechanically propelled transport facilities for the conveyance of the public or for the purpose of setting up dairies or farms for the supply, distribution and procuring of milk-products for the benefit of the inhabitants of the municipality or for any other purpose calculated to promote the health, safety or convenience of the inhabitants of the municipality; or [(b) to take a contribution towards expenditure incurred by any other local authority or out of any](http://indiankanoon.org/doc/1068429/) public fund for measures affecting the health, safety or convenience of public calculated to benefit the residents within the limits of the contributing municipality; or [(c) to create scholarship tenable outside the limits of municipality; or](http://indiankanoon.org/doc/1069857/) [(d) to utilise the municipal fire brigade and other mechanical appliance beyond the municipal](http://indiankanoon.org/doc/86677/) limits; or [(e) to make with the previous sanction of the State Government any other kind of contribution as](http://indiankanoon.org/doc/1342231/) may be deemed necessary by the Nagar Panchayat or the Council: Provided that nothing in this section or in any other provision of this Act shall be deemed to make it unlawful for a Nagar Panchayat or a Council, when it has constructed works beyond the limits of the municipality for the supply of water or electrical energy or for drainage as aforesaid— [(a) to supply or extend to or for the benefit of any person or building or lands in any place](http://indiankanoon.org/doc/1626002/) whether such place is not within the limits of the said municipality, any quantity of water or electrical energy not required for the purpose of this Act within the said municipality or the advantages afforded by the system of drainage works, on such terms and conditions with regard to payment and to the continuance or such supply advantages as shall be settled by agreement between the Nagar Panchayat or the Council, as the case may be, and such persons or the occupier or owner of such buildings or land; or [(b) to incur any expenditure on such terms with regard to payment as may be settled as aforesaid](http://indiankanoon.org/doc/1068429/) for the construction, maintenance, repair or charge of any connection pipe or any electric supply lines or other works necessary for the purposes of such supply or for the extension of such supply or for the extension of such advantages. **[71. Budget.—(1) A Nagar Panchayat or a Council at a meeting specially convened for the purpose,](http://indiankanoon.org/doc/1717319/)** two months before the close of the financial year, shall prepare in such form and manner as may be prescribed, a budget showing inter alia the probable receipts and expenditure during the ensuing year and after such revision as may appear requisite it shall pass the budget and such budget shall be submitted to the Director for obtaining approval of the State Government: Provided that if the approval is not intimated within one month from the date of the receipt of the budget by the State Government or the receipt of such other information as is called for by the State Government, it shall be taken that the budget is approved. [(2) The Nagar Panchayat or the Council may, from time to time, revise any estimates of expenditure](http://indiankanoon.org/doc/529502/) with the view of providing for any modification which it may deem advisable to make in the appropriation of the amount at its disposal and such revised budget shall be passed in the manner provided in sub-section (1). [(3) When the budget has been passed, the Nagar Panchayat or the Council shall not incur any](http://indiankanoon.org/doc/58053/) expenditure under any of the heads of the budget in excess of the amount sanctioned under that head without making a provision for such excess by a revision of the budget in the manner specified in sub-section (2). ----- **[72. Accounts and audit.—(1) Every municipality shall maintain such accounts for every financial](http://indiankanoon.org/doc/855599/)** year in such forms as may be prescribed and submit such statement to the Deputy Commissioner, the Director and the State Government and such accounts shall be audited by the Director, Local Fund Audit and Accounts of the Government of Manipur in such manner as may be prescribed. [(2) The municipality shall comply with such directions as the State Government may deem fit to issue](http://indiankanoon.org/doc/1518624/) after going through the audit report respecting it. [(3) The municipality shall pay out of the municipal fund such sum as may be determined by the State](http://indiankanoon.org/doc/333481/) Government by way of charges for such audit. **[73. Finance Commission for municipalities.—(1) The State Finance Commission constituted under](http://indiankanoon.org/doc/842876/)** section 97 of the Manipur Panchayati Raj Act, 1994 (26 of 1994), shall also review the financial position of the municipalities and make recommendations to the Governor as to— [(a) the principles which should govern—](http://indiankanoon.org/doc/922209/) [(i) the distribution between the State and the municipalities of the net proceeds of the taxes,](http://indiankanoon.org/doc/577281/) duties, tolls and fees leviable by the State, which may be divided between them under this Act and the allocation between the municipalities at all levels of their respective shares of such proceeds; [(ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or](http://indiankanoon.org/doc/408231/) appropriated by, the municipalities; [(iii) the grant-in-aid to the municipalities from the Consolidated Fund of the State;](http://indiankanoon.org/doc/1852666/) [(b) the measures needed to improve the financial position of the municipalities;](http://indiankanoon.org/doc/1532001/) [(c) any other matter referred to the Finance Commission by the Governor in the interests of sound](http://indiankanoon.org/doc/1512093/) finance of the municipalities. [(2) The Governor shall cause every recommendation made by the Commission under this section](http://indiankanoon.org/doc/1720136/) together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State. CHAPTER VIII MUNICIPAL TAXATION **[74. Power to impose taxes by and the funds of the municipalities.—The State Government may,](http://indiankanoon.org/doc/1303565/)** from time to time, by notification in the Official Gazette— [(a) authorize a municipality to levy, collect and appropriate such taxes, duties, tolls and fees in](http://indiankanoon.org/doc/1400664/) accordance with such procedure and subject to such limits to be prescribed by it; [(b) assign to a municipality such taxes, duties, tolls and fees levied and collected by the State](http://indiankanoon.org/doc/716928/) Government for such purposes and subject to such conditions and limits to be prescribed by it; [(c) provide for making such grant-in-aid to the municipalities from the Consolidated Fund of the](http://indiankanoon.org/doc/1608848/) State. **[75. Taxes which may be imposed.—(1) Subject to the provisions of this Chapter and with the](http://indiankanoon.org/doc/1293376/)** previous approval of the State Government, municipality may, from time to time, impose in the whole or in any part of the municipality any of the following taxes and tolls, namely:— [(a) a tax on holding situated within the municipality assessed on their annual value, payable by](http://indiankanoon.org/doc/1472513/) the owner of the building or land or both; [(b) a tax on all or any of the vehicles, other than covered by the Motor Vehicles Act, 1988](http://indiankanoon.org/doc/348755/) (59 of 1988), or animals used for riding, driving, draught or burden and used within the limits of the municipality whether they are actually kept within or outside the said limits; [(c) an octroi on goods brought within the limits of the municipality for sale, consumption or use](http://indiankanoon.org/doc/1914471/) within such limits; ----- [(d) a latrine-tax payable by the owners or occupiers for collections, removal and disposal of](http://indiankanoon.org/doc/956833/) excrement or offensive matter from latrines, privies, urinals, cess-pools or compounds by the municipality, within the limits of the municipality; [(e) a scavenging-tax;](http://indiankanoon.org/doc/1719090/) [(f) lighting-tax where the lighting arrangement is made by the municipality;](http://indiankanoon.org/doc/1909244/) [(g) a drainage tax where a system of drainage has been introduced by the municipality;](http://indiankanoon.org/doc/1504213/) [(h) a tax on deeds of transfer of immovable property situated within the limits of the municipality;](http://indiankanoon.org/doc/784405/) [(i) a tax on advertisements made within the limits of the municipality other than non-commercial](http://indiankanoon.org/doc/583145/) undertaking advertisements published in newspapers; [(j) a water-tax where water is supplied by the municipality;](http://indiankanoon.org/doc/228182/) [(k) market fees on person exposing goods for sale in any market or any place belonging to or](http://indiankanoon.org/doc/1589315/) under the control of the State Government or of the municipality; [(l) a betterment charge on properties the value of which may be increased as a result of town](http://indiankanoon.org/doc/989193/) planning scheme implemented by the municipality; and [(m) any other tax, toll, rate, charge or fee.](http://indiankanoon.org/doc/1360310/) [(2) With the previous sanction of the State Government a municipality may, from time to time, charge](http://indiankanoon.org/doc/1991037/) a fee in respect of the issue and renewal of any licence which may be granted by the municipality under this Act and in respect of which no fee is leviable under sub-section (1). [(3) Subject to the provisions of any law that may be made by Parliament, any tax or fee which](http://indiankanoon.org/doc/267863/) immediately before the commencement of this Act, was being lawfully levied under the Manipur Municipalities Act, 1976 (Manipur Act 26 of 1976) notwithstanding that such tax or fee is not specified in sub-section (1) shall continue to be levied by the Nagar Panchayat or, as the case may be, by the Council. [(4) The State Government may from time to time direct the municipality to impose any tax or to](http://indiankanoon.org/doc/1175919/) modify the rate of any tax already imposed. [(5) On default of the municipality to comply with the decision under sub-section (4) within three](http://indiankanoon.org/doc/846320/) months from the receipt of the direction the municipality may be required to furnish reason as to why the tax should not be imposed or modified, as the case may be. **[76. Tax on Government holdings.—Notwithstanding any provisions to the contrary all municipal](http://indiankanoon.org/doc/1538015/)** [taxes including services charges except under clause (a) of sub-section (1) of section 75 in respect of](http://indiankanoon.org/doc/962538/) Government holdings shall be payable to municipality by the Government Department which is in control and management of the holdings. **[77. Restriction regarding tax on holding.—The State Government shall have the power to exempt](http://indiankanoon.org/doc/632170/)** by an order published in the Official Gazette any class of building or holding from levying any tax under section 75 of this Act. **[78. Collection of taxes are subject to bye-law, etc.—All the taxes mentioned in section 75 shall be](http://indiankanoon.org/doc/1073635/)** collected in the manner provided in the bye-laws. **[79. Nagar Panchayat or Council to determine the valuation of holding.—When it has been](http://indiankanoon.org/doc/646219/)** decided to impose any tax on the annual value of holdings, the assessor after making such enquiries as may be necessary, shall determine the valuation of all holdings within the municipality as hereinafter provided, and shall enter the same in a list called the valuation list, which shall be in the prescribed form: Provided that valuation other than general valuation may be made by the municipality through such person as may be authorised by the municipality in this behalf. **[80. Returns required for ascertaining annual value.—The assessor, in order to prepare the](http://indiankanoon.org/doc/200870/)** valuation list, may whenever he thinks fit, by notice require the owners or occupiers of all holdings to furnish him, within fifteen days with returns of the rent or annual value thereof and a description of the holdings in such detail as the municipality may direct; and the assessor, at any time between sunrise and sunset may enter, inspect and measure any such holdings: ----- Provided that at least forty-eight hours, previous notice of the intention to enter, inspect and measure any holding shall be given to the owner or occupier thereof, unless he waives his right to such notice. **[81. Penalty for default in furnishing return and for obstruction of assessor.—(1) Whoever](http://indiankanoon.org/doc/367635/)** refuses or fails to furnish any such return for the period of fifteen days from the day on which he has been required to do so, or knowingly furnishes a false or incorrect return or description shall be punishable with fine not exceeding five hundred rupees and with further fine not exceeding fifty rupees for each day during which he omits to furnish a true and correct return. [(2) Whoever obstructs, hinders or prevents the assessor appointed by the municipality from entering](http://indiankanoon.org/doc/111139/) or inspection or measuring any such holding shall be punishable with fine not exceeding two thousand rupees. **[82. Determination of annual value of holdings.—“Annual value” means—](http://indiankanoon.org/doc/994662/)** [(a) in the case of hotels, colleges, schools, hospitals, factories and such other buildings, a](http://indiankanoon.org/doc/1475889/) proportion not exceeding five per centum, to be fixed by rule made in this behalf of the sum obtained by adding the estimated present cost of erecting the building, less depreciation at the rate to be fixed by rule to the estimated value of the land appurtenant thereto, and [(b) in the case of a building or land not falling within the provisions of clause (a), the gross](http://indiankanoon.org/doc/455485/) annual rent for which such buildings, exclusive of furniture or machinery therein or such land is actually let, or where the building or land is not let or in the opinion of the municipality is let for a sum less than its fair letting value, might reasonably be expected to let from year to year: Provided that where the annual value of any building would, by reason of exceptional circumstances, in the opinion of the municipality be excessive if calculated in the aforesaid manner, the municipality may fix the annual value at any less amount which appears to it suitable: Provided further that the rules framed in this behalf shall be subject to the prior approval of the Government. **[83. Determination of rate of tax on holding.—The mode of procedure and system of tax on the land](http://indiankanoon.org/doc/3480/)** and holdings will be such as may be prescribed by the rules to be framed by Government from time to time in this behalf. **[84. Preparation of assessment register.—As soon as possible after the percentage at which the tax](http://indiankanoon.org/doc/60035/)** is to be levied shall have been determined under section 83, the municipality shall cause to be prepared an assessment register which shall contain the following particulars, and any other matters which the municipality may think proper to include— [(a) number of the holding on the register with the name of the road, if any, in which the holding is](http://indiankanoon.org/doc/1087459/) situated; [(b) annual value of the holding (as stated in the valuation list);](http://indiankanoon.org/doc/1968778/) [(c) names of owner and occupier;](http://indiankanoon.org/doc/112294/) [(d) amount of tax payable for the financial year;](http://indiankanoon.org/doc/1698554/) [(e) amount of taxes payable separately under clause (a), (d), (f) or (j) of sub-section (1) of](http://indiankanoon.org/doc/350387/) section 75; [(f) amounts of quarterly instalments; and](http://indiankanoon.org/doc/1946770/) [(g) if the holding is exempted from assessment, a note to that effect.](http://indiankanoon.org/doc/1483106/) **[85. Powers to assess consolidated tax for building and land on which it stands.—(1) If any](http://indiankanoon.org/doc/89611/)** building belongs to one owner and the land on which it stands and any adjacent land which is usually occupied therewith belongs to another the municipality may value such building and land together and may impose thereon one consolidated tax. [(2) The total amount of the tax shall be payable by the owners of the building, who shall thereafter be](http://indiankanoon.org/doc/983344/) entitled to deduct from the rent which he pays for the land such proportion of the tax so paid by him as is equal to the proportion which such rent bears to the annual value of the holdings. ----- [(3) In case of disputes, the municipality shall determine what amount the owner of the building and of](http://indiankanoon.org/doc/775028/) the land shall pay respectively. **[86. Reduction of valuation, revision of valuation and assessment and revision of valuation list](http://indiankanoon.org/doc/1748817/)** **[and assessment register.—(1) The municipality may, at any time, direct an alteration in, or amendment](http://indiankanoon.org/doc/1384622/)** of the assessment register— [(a) by entering therein the name of any person or any property which in its opinion ought to have](http://indiankanoon.org/doc/1906517/) been entered, or any property which has become liable to taxation after the preparation of the assessment register, or [(b) by substituting therein with effect from the date of succession or transfer, as the case may be,](http://indiankanoon.org/doc/891766/) for the name of the owner of any holding the name of any other person who has succeeded by transfer or otherwise, to the ownership of the holding, or [(c) by altering the valuation of or assessment on any holding which in its opinion has been](http://indiankanoon.org/doc/1395118/) incorrectly valued or assessed, or [(d) by re-valuing or re-assessing any holding the value of which has been increased by additions](http://indiankanoon.org/doc/94260/) or alterations to buildings, or [(e) by reducing, upon the application of the owner the valuation of any holding which has been](http://indiankanoon.org/doc/1704425/) wholly or partly demolished or destroyed, or the value of which has diminished from any cause beyond the control of the owner, or [(f) by correcting any clerical or arithmetical error.](http://indiankanoon.org/doc/131866/) [(2) The municipality shall give at least one month’s notice to any person interested in any alteration](http://indiankanoon.org/doc/760690/) which the municipality proposes to make under clause (a), (b), (c) or (d) of sub-section (1). [(3) Every alteration made under sub-section (1) in the assessment register shall be signed by the](http://indiankanoon.org/doc/939106/) Chairperson or the Vice-Chairperson. **[87. Notice to be given to Chairperson, of transfers of title of persons liable of payment of tax.—](http://indiankanoon.org/doc/16318/)** [(1) Whenever the title to any holding is transferred both the transferor and the transferee shall for the](http://indiankanoon.org/doc/1165677/) purpose of clause (b) of sub-section (1) of section 86 within three months after the execution of the instrument of transfer, or if no such instrument is executed, within three months after the transfer is effected, give notice in writing of such transfer to the municipality. [(2) in the event of the death of the person in whom such title vests, the person to whom as heir or](http://indiankanoon.org/doc/1526502/) otherwise, the title of the deceased is transferred by descent or demise, shall within one year, from the death of the deceased, give notice in writing of such succession to the municipality. [(3) Every person liable for the payment of taxes on any holding, who transfers his title to or over such](http://indiankanoon.org/doc/1712552/) property, without giving notice of such transfer to the municipality, as aforesaid, shall unless the municipality on the ground of hardship arising out of special circumstances, otherwise directs, continue to be liable for the payment of all such taxes from time to time payable in respect of the said property until he gives such notice, or until the transfer shall have been recorded in the municipal books. [(4) The municipality may levy a fee not exceeding one hundred rupees for every such transfer of title](http://indiankanoon.org/doc/583829/) to a holding in addition to the tax provided for in clause (a) of sub-section (1) of section 75. **[88. Revisions of valuation list.—(1) A new valuation list shall, unless otherwise ordered by the State](http://indiankanoon.org/doc/923115/)** Government, be prepared in the same manner as the original list, once in every five years. [(2) Subject to any alteration or amendment made under section 86 and to the result of any application](http://indiankanoon.org/doc/1424037/) made under section 95 every valuation list or the assessment register shall be valid from the date on which the list or register takes effect in the municipality. **[89. Appointment of assessor and power of State Government to direct the appointment of](http://indiankanoon.org/doc/1774876/)** **[assessor.—(1) The municipality, for the purpose of general valuation may, with the concurrence of the](http://indiankanoon.org/doc/1356423/)** Government, appoint an assessor who shall neither be an employee nor a Councillor of the municipality on such pay and with such establishment as it may determine. ----- [(2) Notwithstanding anything contained in section 88 if at any time it appears to the State](http://indiankanoon.org/doc/1037729/) Government that the valuation in any municipality is insufficient, excessive or inequitable, the State Government may, by an order in writing, require the municipality to revise the valuation or to show cause against revision within a specified time, and if the municipality fails to comply with the order or in the opinion of the Government the cause shown is inadequate, the State Government may by an order in writing require the municipality to appoint with the approval of the State Government an assessor for the municipality within a time and for a period to be specified in the order. The order shall fix the pay of the assessor and the cost of his establishment, and the pay and cost shall be paid monthly by the municipality. **[90. Revision of assessment register.—Whenever the valuation list is revised or altered wholly or in](http://indiankanoon.org/doc/732751/)** part or a new percentage is fixed under section 83 the assessment register also shall be revised and all consequential changes, made therein. **[91. Effect of revision of assessment register.—The first assessment register prepared for any](http://indiankanoon.org/doc/1216326/)** municipality under the Act and any revision thereof or alteration therein made under the foregoing section shall subject to the provision of sections 86 and 96 take effect, from the beginning of the quarter following the publication of the notice mentioned in sections 96. **[92. Exemptions and remission.—(1) The taxes mentioned in clauses (a), (g) and (l) of](http://indiankanoon.org/doc/1762214/)** sub-section (1) of section 75 shall not be assessed or levied on any building which is used exclusively as a place of public worship, or on any holding which is duly registered as a public burial or burning ground under this Act. [(2) The municipality may exempt from assessment of the tax mentioned in clause (a) of](http://indiankanoon.org/doc/180546/) sub-section (1) of section 75 on any holding used for the purpose of a public charity. [(3) The municipality may reduce the amount payable on account of any of the taxes mentioned in](http://indiankanoon.org/doc/406851/) clauses (a), (b), (f) and (i) of sub-section (1) of section 75 or remit the same on the ground of excessive hardship to the person liable to pay the same: Provided that such reduction or remission shall not, unless renewed by the municipality, have effect for more than one financial year. **[93. Power of assessor.—An assessor appointed by the municipality under section 89 shall exercise](http://indiankanoon.org/doc/215898/)** all such powers of valuation as may be vested in him by the municipality or as may be prescribed. **[94. Publication of notice of assessment.—(1) When the valuation list mentioned in section 79 and](http://indiankanoon.org/doc/587271/)** the assessment register mentioned in section 84 shall have been prepared or revised the Chairperson shall sign the same and shall cause them to be deposited in the office of the Nagar Panchayat or as the case may be, of the Council, and shall cause a notice to be published in such form and manner as may be prescribed. [(2) In all cases in which any property is for the first time assessed or the assessment is increased, the](http://indiankanoon.org/doc/1224178/) Executive Officer shall also give notice thereof to the owner or occupier of the property. **[95. Application for review.—(1) Any person who is dissatisfied with the amount assessed upon him](http://indiankanoon.org/doc/1986012/)** or with the valuation or assessment of any holding or who disputes his occupation of any holding or his liability to be assessed, may apply to the municipality to review the amount of assessment of valuation or to exempt him from the assessment of tax: Provided that no application shall be entertained unless the applicant has paid all arrears of dues to the municipality accorded up to the date of such application other than the sum which has been enhanced by the valuation or assessment against which the review application has been filed. [(2) When an assessor has been appointed under section 89 notice of every such application shall be](http://indiankanoon.org/doc/466913/) given by the municipality to the assessor. **[96. Procedure for review.—(1) Every application presented under section 95 shall be heard and](http://indiankanoon.org/doc/1776375/)** determined by a Committee consisting of not more than five members. [(2) The Chairperson or the Vice-Chairperson shall be one of the members of such committee](http://indiankanoon.org/doc/1522709/) _ex officio, and the other members shall be appointed from among the Councillors by the Nagar Panchayat_ or, as the case may be, by the Council: ----- Provided that no member so appointed shall take part in hearing or determining any application from the ward in which he resides, or in the case of an elected member the ward which he represents, but nothing in this proviso, shall prevent any such member from giving evidence with regard to the matter under enquiry. [(3) No such application shall be heard or determined by the committee unless at least three members](http://indiankanoon.org/doc/640446/) including the Chairperson or the Vice-Chairperson are present. [(4) The committee shall give notice to the applicant of the time and place at which application shall](http://indiankanoon.org/doc/133000/) be heard, and after taking such evidence and making such enquiries as may be deemed necessary in the presence of the objector or his agent, if he appears the committee shall pass such orders as it may deem fit in respect of such application. [(5) If the committee orders that any valuation to which the application relates shall be reduced, brief](http://indiankanoon.org/doc/295067/) reasons for such reduction shall be recorded. [(6) The decision of the committee or of a majority of the members thereof, in respect of any](http://indiankanoon.org/doc/1007753/) application referred to in this section shall be final. **[97. Limitation of time for application for review.—Unless good cause shall be shown to the](http://indiankanoon.org/doc/1074626/)** satisfaction of the committee referred to in section 96 for extending the time allowed, and save as is otherwise expressly provided in this Act, no such application shall be received after the expiry of one month from the date of publication of the notice required by section 94 relating to the list or register containing the assessment, in respect of which the application is made, or after the expiry of fifteen days from the date of service of the first notice of demand for payment at the rate in respect of which the application is made whichever period shall last expire: Provided that, if the municipality has served a notice under section 94 on any person, no such application shall be received from him after the expiry of fifteen days from the date of such service. **[98. Assessment to be questioned only under Act.—No objection shall be taken to any assessment](http://indiankanoon.org/doc/1042152/)** or valuation in any other manner than is provided in this Act. **[99. Tax not invalid for want of form.—No assessment of tax on property and no charge or demand](http://indiankanoon.org/doc/1707863/)** of any tax made under authority of this Act shall be invalid for error, defect in form, and it shall be enough in any valuation or assessment for purpose if the property so valued or assessed is so described as to be generally known and it shall not be necessary to name the owner or occupier thereof. **[100. Procedure for imposing taxes, recovery of claims, etc.—The various procedure that may be](http://indiankanoon.org/doc/1267514/)** prescribed by the Government from time to time will be followed for imposing and recovery of tax, tolls, fees and rates under this Act. CHAPTER IX RECOVERY OF MUNICIPAL CLAIMS **[101. Recovery from occupier of tax due from non-resident.—If any tax payable under this Act by](http://indiankanoon.org/doc/1831132/)** the owner of any holding remains unpaid after the notice of demand has been duly served, and if such owner is not resident within the municipality, or the place of abode of such owner is unknown, the tax may be recovered from the occupier for the time being of such holding, who may deduct, from the next and following payments of his rent the amount which may be so paid by or recovered from him: Provided that if any such holding is occupied by more than one person, the sum to be recovered from any one of such persons shall be proportionate to the value of the part of the holding in the respective occupation of such persons. **[102. Recovery from owner of occupier's tax in certain cases.—If any holding is occupied by more](http://indiankanoon.org/doc/1834871/)** than one tenant holding severally it shall be lawful for the municipality, to recover from the owner of such holding, any taxes payable under this Act by the occupier of the holding. **[103. Recovery by owner of occupier’s tax paid by owner.—Whenever any tax shall be recovered](http://indiankanoon.org/doc/557384/)** from any owner of any holding under the provisions of section 102, it shall be lawful for such owner, if there shall be but one occupying tenant of such entire holding, to recover from such tenant of the entire amount of the tax which shall have been so paid by such owner, and if there shall be one occupying tenant of a part of such holding, or more than one occupying tenant of such holding then to recover from each ----- tenant such sum as shall bear to the entire amount of tax which may have been so recovered from such owner at the same proportion as the value of the proportion of such holding in the occupation of each tenant bears to the entire value of such holding. **[104. Method of recovery by owner.—Every owner who under the provisions of section 102 may be](http://indiankanoon.org/doc/908894/)** entitled to recover any sum from any occupying tenant of any holding or of any portion thereof, shall have for the recovery of such sum all such and the same remedies, powers, rights and authorities as if such sum were rent payable to such owner by such tenant in respect of so much of such holding as may be in the occupation of such tenant. **[105. Penalty.—Whoever keeps or is in possession of any cart, carriage or animal without the licence](http://indiankanoon.org/doc/1643111/)** as required under this Act shall be liable to a fine not exceeding four times the fee payable by him in respect of such licence, in addition to the licence fee due. **[106. Municipality may compound with livery stablekeepers.—The municipality, may compound](http://indiankanoon.org/doc/768159/)** for any period not exceeding one year, with livery stablekeepers and other persons keeping carts, carriages or animals for hire, for a certain sum to be paid for the carts, carriages or animal so kept by such person in lieu of the licence fees specified in any order made by the municipality. **[107. Rents, tolls and fees in respect of markets.—(1) The municipality may use its own land or](http://indiankanoon.org/doc/1099055/)** building, or purchase, take on lease or otherwise acquire any land or building for the purpose of establishing a municipal market or improving any existing municipal market. [(2) The municipality may levy rents, tolls and fees at such rates as it may think proper for the right to](http://indiankanoon.org/doc/58249/) expose goods for sale in a municipal market and for the use of shops, stalls and standings therein and may also regulate such rates in respect of private markets or places used or declared by the municipality as a market place by a public notice in the locality. [(3) The municipality may grant a lease for a period not exceeding three years for collection of rents,](http://indiankanoon.org/doc/1652998/) tolls and fees in municipal markets at the rates fixed by the municipality under sub-section (2). [(4) A lessee of a municipal market appointed under sub-section (3) may refuse to allow any person to](http://indiankanoon.org/doc/1121538/) expose goods for sale in the market or to use shops, stalls and standings therein until the proper rents, tolls and fees have been paid. [(5) Whoever, having rendered himself liable to the payment of rents, tolls or fees refuses to pay the](http://indiankanoon.org/doc/115063/) same shall be punishable with fine which may extend to five hundred rupees. [(6) When resistance is offered to any person authorised to collect rents, tolls or fees, any police](http://indiankanoon.org/doc/1155050/) officer whom he may call to his aid, shall be bound to assist him; and such police officer shall, for that purpose have the same powers as he has in the exercise of his ordinary police duties. **[108. Recovery of taxes as arrears of land revenue.—(1) Where any sum is due on account of a tax,](http://indiankanoon.org/doc/937673/)** other than octroi or tolls or any similar tax payable upon immediate demand, from a person to a municipality, the municipality may, without prejudice to any other mode of recovery provided in this Act apply to the Deputy Commissioner to recover such sum together with costs of proceedings incurred in that behalf. [(2) The Deputy Commissioner, on being satisfied that the sum mentioned in the application under](http://indiankanoon.org/doc/941218/) sub-section (1) is due, shall proceed to recover it as soon as may be thereafter, as arrears of land revenue. **[109. Power to sell unclaimed holdings for money due.—(1) If money be due under this Act in](http://indiankanoon.org/doc/786468/)** respect of any holding from the owner thereof, on account of any tax, expenses or charges recoverable under this Act, if the owner of such holding or his whereabouts are unknown or the ownership thereof is disputed or when the owner lives outside the municipality and has failed to pay it in spite of service of demand notice twice, the municipality may publish twice, at an interval of three months, a notification of sale of such holding and after the expiry of not less than three months from the date of the last publication, unless the amount recoverable be paid, may sell such holding to the highest bidder, who shall, at the time of sale, deposit forthwith twenty-five per cent, of the purchase money. The balance shall be paid within fifteen days of the date of sale. In default of payment of the balance amount, the money if any, so deposited shall be forfeited and the holding shall be re-sold. After deducting the amount due to the municipality, the surplus sale-proceeds, if any, shall be credited to the municipal fund and may be paid on ----- demand to any person who establishes his right of claim to the satisfaction of such municipality or in a Court of competent jurisdiction. [(2) Any person may pay the amount due at any time before the completion of the sale and may](http://indiankanoon.org/doc/1849056/) recover such amount by a suit in a Court of competent jurisdiction from any person beneficially interested in such property. **[110. Writing off irrecoverable sums due to the Nagar Panchayat or to the Council.—The](http://indiankanoon.org/doc/1628391/)** irrecoverable sum due to a Nagar Panchayat, or as the case may be, to a Council may be written off in such manner and by such authority as may be prescribed. CHAPTER X MUNICIPAL POWER AND OFFENCES _Powers in respect of road_ **[111. Power to make roads.—(1) A Nagar Panchayat or as the case may be, a Council may—](http://indiankanoon.org/doc/1677645/)** [(a) layout or make new public road; or](http://indiankanoon.org/doc/917551/) [(b) widen, open, enlarge or otherwise improve any public road and construct tunnels and other](http://indiankanoon.org/doc/1962555/) works subsidiary to such road; or [(c) divert, discontinue or close permanently any public road; or](http://indiankanoon.org/doc/1701366/) [(d) sell or lease the land forming such road or any part thereof, acquired for the purpose of such](http://indiankanoon.org/doc/349065/) road or for any other purpose of this Act: Provided that no such public road shall be discontinued, permanently closed or used for any other purposes without the previous sanction of the Government. [(2) In laying out, making, turning, diverting, widening, opening; enlarging or otherwise improving](http://indiankanoon.org/doc/30754/) any public road, the Nagar Panchayat or the Council may, in accordance with the provisions of this Act, acquire land required for the carriage-way, footways and drains thereof. **[112. Power to repair, etc., of private road, drains, etc.—(1) Where a Nagar Panchayat or a Council](http://indiankanoon.org/doc/1704770/)** considers that in any road not being a public road, or in any part of such road within the municipality, it is necessary for the public health, convenience or safety that any work should be done for the levelling, paving, metalling, flagging, channelling, draining, lighting or cleaning thereof, the Nagar Panchayat or as the case may be, the Council may, by written notice, require the owner or owners of the several lands or buildings fronting or adjoining the said road or abutting thereon to carry out such work in such manner and within such time as may be specified in such notice. [(2) If the notice under sub-section (1) is not complied with, such work may be executed by the Nagar](http://indiankanoon.org/doc/1711667/) Panchayat or the Council, the expenses thereby incurred, shall be apportioned by the Nagar Panchayat or the Council, between such owners, and in such manner as it may think fit, regard being had, if it deems it necessary, to the amount and value of any work already done by the owners or occupiers of such lands and buildings. [(3) After such work has been carried out by the owner or by the owners or on the failure of the](http://indiankanoon.org/doc/820372/) owners to do so, by the Nagar Panchayat or the Council at the expenses of such owners the road or part thereof in which such work has been done, may, and on the joint requisition of a majority of the said owners, shall be declared by public notice put up therein by the Nagar Panchayat or the Council to be a public road. **[113. Prohibition of use of public roads by a class of animals, carts or vehicles.—(1) The Nagar](http://indiankanoon.org/doc/844986/)** Panchayat or as the case may be, the Council may, by public notice prohibit or regulate the driving, riding or leading of animals or vehicles of any particular kind along any public road or part of any such road. [(2) Any person who disobeys an order passed by the Nagar Panchayat or as the case may be, the](http://indiankanoon.org/doc/1156304/) Council under the provisions of sub-section (1) shall be punishable with fine not exceeding two hundred rupees. ----- **[114. Penalty for encroachment on public roads, etc.—Any person, who without the permission of](http://indiankanoon.org/doc/1619431/)** the Nagar Panchayat or of the Council,— [(a) encroaches upon any public road or house-gully or upon any public drain, sewer, aqueduct,](http://indiankanoon.org/doc/1460036/) water-course or that by making any excavation or by erecting any wall, fence, rail, post, projection or other obstruction, or by deposing any movable property thereon, or [(b) takes up or alters the pavements or other materials, fences or posts on any public road,](http://indiankanoon.org/doc/89918/) shall, for every such offence, be punishable with fine not exceeding two thousand and five hundred rupees and with a further fine not exceeding two hundred rupees for every day during which the encroachment continues after the first conviction. **[115. Use of public road or place by vendors and other person and penalty thereof.—(1) Subject](http://indiankanoon.org/doc/658071/)** to the provisions of this Act and the rules and bye-laws made thereunder, no itinerant vendor or any other person shall use or occupy any public road or place for the sale of articles or for the exercise of any calling, or for setting up any booth or stall without the permission of the Nagar Panchayat or of the Council. [(2) Whoever violate the provision of sub-section (1) shall be punishable with fine which may extend](http://indiankanoon.org/doc/1736008/) to two thousand five hundred rupees and with fine which may extend to five hundred rupees for every subsequent offence after the first conviction. **[116. Power to remove obstructions, encroachments and projections in or on public road, etc.—](http://indiankanoon.org/doc/715571/)** The Nagar Panchayat or as the case may be, the Council may, notwithstanding any proceedings which may have been started against him under this Act, issue a notice requiring any person to remove any building which he may have built or any fence, rail, post or other obstruction or encroachment which he may have erected or stacked, on any part of a public road, house-gully, public drain, sewer, aqueduct, watercourse, ghat or any land vested in the Nagar Panchayat or in the Council and, if such person fails to comply with such requisition within forty-eight hours of the receipt of the same, the Sub-Divisional Magistrate may, on the application of the Nagar Panchayat or of the Council, order that such obstruction or encroachment be removed and thereupon the Nagar Panchayat or the Council may remove any such obstruction of encroachment and the expenses thereby incurred shall be paid by the person who erected or stacked the same. **[117. Procedure when person who erected obstruction cannot be found.—(1) If the person who](http://indiankanoon.org/doc/1924246/)** built, erected or stacked the said building, fence, rail, post or other obstruction or encroachment referred to in the preceding section is not known or cannot be found, the Nagar Panchayat or as the case may be, the Council may cause a notice to be posted in the neighbourhood of the said building, fence, rail, post or other obstruction or encroachment requiring any person interested in the same to remove it, and it shall not be necessary to name any person in such requisition. [(2) If the said building, fence, rail, post or other obstruction or encroachment be not removed in](http://indiankanoon.org/doc/1791791/) compliance with the requisition contained in such notice within forty-eight hours of the posting of the same, the Sub-Divisional Magistrate may, on the application of the Nagar Panchayat or as the case may be, the Council, order that such obstruction or encroachment be removed, and thereupon the Nagar Panchayat or as the case may be, the Council may remove any such obstruction or encroachment, and may recover the cost of such removal, by sale of the materials so removed. [(3) The surplus sale-proceeds, if any, shall be credited to the Municipal Fund, and may be paid on](http://indiankanoon.org/doc/255959/) demand to any person who established his right to the satisfaction of the Nagar Panchayat or as the case may be, the Council or in any court of competent jurisdiction. **[118. Projections from buildings to be removed.—(1) The Nagar Panchayat or as the case may be,](http://indiankanoon.org/doc/445104/)** the Council may issue a notice requiring the owner or occupier of any building to remove or alter any projection, obstruction or encroachment erected or placed against or in front of such building, if the same overhangs the public road or just into or any way projects or encroaches upon, or is an obstruction to the safe and convenient passage along any public road or house-gully, or obstructs, or projects or encroaches into or upon any drain, sewer or aqueduct in any public road or into or upon any public water-course or ghat or any land in the Nagar Panchayat or the Council, as the case may be. [(2) If such owner or occupier fails to comply with such requisition within forty-eight hours of the](http://indiankanoon.org/doc/520229/) receipt of the notice, or within such further time as the Nagar Panchayat or the Council may allow the ----- Sub-Divisional Magistrate may, on the application of Nagar Panchayat or of the Council, order that such projection, obstruction or encroachment be removed or altered; and thereupon the Nagar Panchayat or the Council may remove or alter such projection, obstruction or encroachment, and any reasonable expense incurred for the purposes of such removal or alteration shall be recovered from the defaulting owner or occupier. [(3) If the expense of removing or altering any such structure or fixture is paid by the occupier of the](http://indiankanoon.org/doc/117674/) building, in any case in which the same was not erected by himself, he shall be entitled to deduct any reasonable expense incurred for the purposes of such removal or alteration from the rent payable by him to the owner of the building. **[119. Power of the District Magistrate and Sub-Divisional Magistrate to remove encroachment](http://indiankanoon.org/doc/1618134/)** **summarily on requisition by the Government.—Notwithstanding anything contained in sections 116** and 118, a District Magistrate or a Sub-Divisional Magistrate shall, on being so required by the Government, order any person responsible for any obstruction or encroachment or projection as specified in sections 116 and 118 to remove or alter such obstruction or encroachment or projection within a period of not less than forty-eight hours and on non-compliance the District Magistrate or the Sub-Divisional Magistrate as the case may be, shall remove such obstruction or encroachment or projection and realise the expenses, thereby incurred from the person concerned as fine in a Criminal Court: Provided that in case the person or persons responsible for such obstruction, encroachment or projection is or are not known or cannot be found the procedure laid down in section 117 shall be followed. **[120. Effect of order made under section 116, 117, 118 or 119.—Every order made by a Sub-](http://indiankanoon.org/doc/1477332/)** Divisional Magistrate or a District Magistrate as the case may be, under section 116, 117, 118 or 119 shall be deemed to be an order made by him in the discharge of his judicial duty and the Nagar Panchayat or as the case may be, the Council shall be deemed to be person bound to execute such order within the meaning of the Judicial Officer’s Protection Act, 1850 (Act XVII of 1850 ). **[121. Nagar Panchayat or Council may require land holders to trim hedges, etc.—The Nagar](http://indiankanoon.org/doc/1942029/)** Panchayat or as the case may be, the Council may require the owner or occupier of any land within three days to trim or prune the hedges thereon bordering on any public road or drains, and to cut and trim any trees or bamboos thereon overhanging the public road, drain or tank, or any well used for drinking purpose or obstructing any public road or drain or causing or likely to cause damage to any public road or drain or any property of the Nagar Panchayat or of the Council or likely to cause damage to person using any public road or likely to foul the water of any well or tank. **[122. Penalty for disobeying requisition under section 116, 117, 118 or 119.—Whoever, being the](http://indiankanoon.org/doc/673422/)** owner or occupier of any house on land within a municipality, fails to comply with a requisition issued by the Nagar Panchayat or as the case may be, the Council under the provisions of section 116, 117, 118 or 119 shall be punishable with fine not exceeding two thousand rupees, and with a further fine not exceeding one hundred rupees for every day during which the default is continued after the first conviction. **[123. Names of public roads and number of building.—(1) The Nagar Panchayat or as the case may](http://indiankanoon.org/doc/943051/)** be, the Council may cause a name to be given to any public road and to be fixed in such place as it may think fit, and may also cause a number to be affixed to every building, and in like manner may, from time to time, cause such names and numbers to be altered. [(2) Any person who destroys, pulls down, defaces or alters any-name or number put up by the Nagar](http://indiankanoon.org/doc/966949/) Panchayat or as the case may be, the Council under sub-section (1) shall, for every such offence be punishable with fine which may extend to two hundred rupees. _Building_ **[124. Erection of building without sanction.—(1) No person shall erect, materially alter or re-erect](http://indiankanoon.org/doc/1256194/)** or commence to erect, materially alter or re-erect any building without the sanction of the Nagar Panchayat or of the Council, as the case may be. [(2) Every person who intends to erect, materially alter or re-erect any building shall give notice in](http://indiankanoon.org/doc/1503043/) writing to the Nagar Panchayat or as the case may be, to the Council of such erection. ----- [(3) When bye-laws have been framed under this Act no notice under sub-section (2) shall be](http://indiankanoon.org/doc/138879/) considered to be valid until such notice has complied with the provision of the bye-laws. _Explanation.—An alteration in a building for the purposes of this section and of bye-laws be deemed_ to be material if it— [(a) affects or is likely to affect prejudicially the stability or safety of the building, or the condition](http://indiankanoon.org/doc/343217/) of the building in respect of drainage, ventilation, sanitation or hygiene; [(b) increase or diminishes the height or area covered by, or the cubical capacity of the building, or](http://indiankanoon.org/doc/581977/) of any room in the building. [(4) In the municipalities where water works are maintained it shall be compulsory for persons](http://indiankanoon.org/doc/370590/) erecting or re-erecting buildings costing rupees two lakhs or more (excluding cost of land and of improvement of land) to install sanitary latrines. The municipality shall withhold sanction if the plan and specification of the building submitted with the notice do not contain provision for installation of sanitary latrines. **[125. Special provision for cases where bye-laws have not been made.—In any case in which no](http://indiankanoon.org/doc/860280/)** bye-laws have been made under this Act the Nagar Panchayat or as the case may be, the Council may, within fourteen days of the receipt of the notice required by sub-section (2) of section 124, require a person who has given such notice to furnish, within one week of the receipt by him of the requisition, information on all or any of the matters as to which bye-laws might have been made and in such case the notice shall not be valid until such information has been furnished. **[126. Powers of Nagar Panchayat or the Council to sanction or refuse.—(1) Within sixty days](http://indiankanoon.org/doc/1871881/)** after the receipt of the notice, required by sub-section (2) of section 124, the Nagar Panchayat or as the case may be, the Council may refuse to sanction the building or may sanction it either absolutely or subject to such modification as it may deem fit in respect of all or any of the matters specified in bye-laws and the person erecting, materially altering or re-erecting any such building as aforesaid shall comply with the sanction of the Nagar Panchayat or as the case may be, the Council as granted in every particular. [(2) When within a period of sixty days, the Nagar Panchayat or the Council fails, after the receipt of a](http://indiankanoon.org/doc/1693675/) valid notice, to make and deliver to the person who has given such notice, an order of sanction or refusal in respect thereof, it shall be deemed to have sanctioned the proposal of building absolutely: Provided that the time taken by the applicant in furnishing any information requisitioned by the Nagar Panchayat or by the Council, if any, after the receipt of the valid notice shall not be counted in the period of sixty days referred to in this sub-section. _Explanation.—The Nagar Panchayat or the Council may refuse to sanction the erection, material_ alteration or re-erection of any building either on the grounds affecting the particular building or in pursuance of general scheme adopted by the Nagar Panchayat or by the Council at a meeting restricting the erection or re-erection of building or any class of building within specified limits for the prevention of overcrowding or in the interest of the residents within such limits or for any other public purpose. Permission may also be refused in any case in which there is any dispute between the Nagar Panchayat or as the case may be, the Council and the applicant as to the title of the land on which it is proposed to erect the building until such dispute is decided. **[127. Lapse of sanction.—A permission to erect, materially alter or re-erect building granted under](http://indiankanoon.org/doc/133202/)** this Chapter or deemed to have been given by the Nagar Panchayat or as the case may be, the Council, shall unless it is renewed on an application made to the Nagar Panchayat or the Council for this purpose continue only for one year after the date on which it is granted. **[128. Penalty for building without or in contravention of sanction.—Whoever erects, materially](http://indiankanoon.org/doc/1007345/)** alters or re-erects or commences to erect, materially alter or re-erect any building without the previous sanction of the Nagar Panchayat or as the case may be, the Council or in contravention of any directions given by the Nagar Panchayat or as the case may be, the Council granting sanction under section 123 shall be liable to a fine not exceeding one thousand rupees for every such offence, and to a further fine not exceeding two hundred rupees for each day during which the offence is continued after his first conviction. ----- **[129. Power of a Nagar Panchayat or a Council in case of disobedience.—(1) If the construction of](http://indiankanoon.org/doc/668710/)** a building is started, or if a building is materially altered or erected— [(a) without sanction as required by section 126 (1); or](http://indiankanoon.org/doc/1436567/) [(b) without notice as required by section 124 (2); or](http://indiankanoon.org/doc/1880550/) [(c) when sanction has been refused; or](http://indiankanoon.org/doc/1512544/) [(d) in contravention of the terms of any sanction granted; or](http://indiankanoon.org/doc/202627/) [(e) when the sanction has lapsed; or](http://indiankanoon.org/doc/540149/) [(f) in contravention of any bye-laws made under clause (vi) of sub-section (1) of section 209,](http://indiankanoon.org/doc/1562615/) the Nagar Panchayat or as the case may be, or the Council may, by notice to be delivered within a reasonable time, require the building to be altered or demolished as it may deem necessary, within the period of thirty days from the date of the service of such notice: Provided that the Nagar Panchayat or as the case may be, or the Council may instead of requiring the alteration or demolition of any such building accept by way of composition such sum as it may deem reasonable. [(2) Any person who fails to comply with a requisition issued by the Nagar Panchayat or as the case](http://indiankanoon.org/doc/954967/) may be, or the Council under the provisions of sub-section (1) shall be liable to a fine not exceeding five hundred rupees and to a further fine not exceeding one hundred rupees for every day during which the person continues to make such default after service on him of such requisition. **[130. Roofs and external walls not to be made of inflammable materials.—The Nagar Panchayat](http://indiankanoon.org/doc/1374320/)** or as the case may be, the Council by written notice, may require any person who has made any external roof or wall with thatch mats, leaves or other inflammable materials and in contravention of bye-laws made under section 209 to remove or alter such roof or wall within a period to be specified in the notice. **[131. Power to attach brackets for lamps.—The Nagar Panchayat or as the case may be, the Council](http://indiankanoon.org/doc/413699/)** may, attach or cause to be attached to the outside of any building brackets for lamps in such manner as not to occasion any injury thereto or inconvenience. **[132. Building unfit for human habitation.—(1) If a building, or a room in a building is in the](http://indiankanoon.org/doc/1510895/)** opinion of the Nagar Panchayat or as the case may be, the Council unfit for human habitation in consequence of the want of proper means of drains or ventilation or otherwise, the Nagar Panchayat or as the case may be, the Council may, by notice, prohibit the owner or occupier thereof from using the building or room for human habitation or suffering it to be so used whether absolutely or not unless, within a time to be specified in the notice he effects such alteration therein as is specified in the notice. [(2) Upon failure of a person to whom notice is issued under sub-section (1) to comply therewith, the](http://indiankanoon.org/doc/396841/) Nagar Panchayat or as the case may be, the Council may require by further notice the demolition of the building or room. [(3) Any person who uses a building or room or suffers to be used contrary to the provision of](http://indiankanoon.org/doc/902613/) sub-section (1) shall be punishable with fine not exceeding five hundred rupees, and with a further fine not exceeding one hundred rupees for every day during which the offence is continued after the first conviction. **[133. Pending of building in dangerous state.—(1) A Nagar Panchayat or as the case may be, a](http://indiankanoon.org/doc/622843/)** Council may require by notice the owner or occupier of any land or building— [(a) to demolish, secure or repair within eight days from the date of service of the notice in such](http://indiankanoon.org/doc/1196994/) manner as it deems necessary any building, portion of a building, wall or other structure or anything affixed thereto which appears to it to be in ruinous condition or dangerous to inmates if any, passers-by or other property, or [(b) to repair, secure or enclose, within eight days from the date of service of the notice, in such](http://indiankanoon.org/doc/177103/) manner as it deems necessary any tank, well or excavation belonging to such owner or in the possession of such occupier which appear to the Nagar Panchayat or the Council to be dangerous to persons by reason of its situation, want of repairs or other such circumstances. ----- [(2) Where it appears to the Nagar Panchayat or the Council that immediate action is necessary for the](http://indiankanoon.org/doc/1358460/) purpose of preventing imminent danger to any person or property, it shall be the duty of the Nagar Panchayat or as the case may be, of the Council to take immediate action and recover the expense so incurred from the owner or occupier of the building or the owner or occupier of the land to which such building or other structure or anything is affixed. **[134. Nagar Panchayat or Council may require owners to pull down ruins.—Whenever it appears](http://indiankanoon.org/doc/1426235/)** to the Nagar Panchayat or Council that any building by reason of abandonment or disputed ownership or other cause is undaunted or by reason of having fallen into ruins, affords facilities for the commission of a nuisance by disorderly persons or for the harbouring of snakes or other noxious animals, the Nagar Panchayat or the Council may require the owner of such building or the land to which such building is attached, to properly secure the same, or to remove or level such ruins, as the case may require. **[135. Penalty for disobeying requisition under sections 133 and 134.—Any owner or occupier of a](http://indiankanoon.org/doc/1526778/)** house or land who fails to comply with requisition issued by the Nagar Panchayat or the Council under the provisions of sections 133 and 134, shall be liable, for every such default, to a penalty not exceeding one thousand rupees, and to a further penalty not exceeding two hundred rupees, for every day during which the default is continued after the expiry of eight days from the date of service on him of such requisition. **[136. Compensation for prohibition of erection or re-erection.—Subject to any other provision in](http://indiankanoon.org/doc/221626/)** this Act as regard compensation, no compensations shall be claimable by an owner for any damage which he may sustain in consequence of the prohibition of the erection of any building. _Powers connected with drains_ **[137. Power to require owners to clear noxious vegetation.—The Nagar Panchayat or the Council](http://indiankanoon.org/doc/99355/)** may, by notice, require the owner or occupier of any land within such time as the Nagar Panchayat or the Council may fix to cut and remove any tree or bamboos or branches thereof, or eradicate and destroy vegetation and undergrowth which may appear to the Nagar Panchayat or the Council to be insanitary, injurious to health or offensive to the neighbourhood or to be causing or likely to cause damage or destruction to any crop growing or to be grown, or to be obstruction or likely to obstruct the free passage for men or animals along a public road, or of any boat of stream vessel along a public water way. **[138. Power to require owners to improve bad drainage.—Whenever any land, being private](http://indiankanoon.org/doc/1998227/)** property or within any private enclosure, appears to the Nagar Panchayat or the Council by want of drainage to be in a state injurious to health or offensive to the neighbourhood, or by reason of inequalities of a surface to afford facilities for the commission of a nuisance, the Nagar Panchayat or the Council may require the owner or the occupier of such land or both within fifteen days, to drain such land or level surface: Provided that, if for the purpose of effecting any drainage under this section it shall be necessary to acquire any land not being the property of the person who is required to drain his land, or to pay compensation to any other person, the Nagar Panchayat or as the case may be, the Council shall provide such land and pay such compensation. **[139. Power to require unwholesome tanks or private premises to be cleansed or drained.—(1)](http://indiankanoon.org/doc/625346/)** The Nagar Panchayat or the Council may require the owner or occupier of any land within eight days or such longer period as the Nagar Panchayat or the Council may fix, either to re-excavate or at his option fill up with suitable material or to cleanse any well, water-course, private tank or pool therein, and to drain off and remove any waste or stagnant water which may appear to be injurious to health or offensive to the neighbourhood: Provided that if, for the purpose of effecting any drainage under this section, it shall be necessary to acquire any land not being the property of the person who is required to drain his land or to pay compensation to any other person, Nagar Panchayat or as the case may be, the Council shall provide such land and pay such compensation. [(2) If under the provisions of this Act the Nagar Panchayat or the Council execute the work of such](http://indiankanoon.org/doc/1467518/) re-excavation or filling up with suitable material, it may take possession of the tank or pool or the sites of such tank or pool and retain such possession and turn the same to profitable account until the expenses thereby incurred shall have been realised. ----- **[140. Wells, tanks, etc., to be secured.—If any well, tank or other excavation, whether on public or](http://indiankanoon.org/doc/376008/)** private ground, be, for want of sufficient repair or protection, dangerous to passers by the Nagar Panchayat or as the case may be, the Council shall forthwith require by notice such owner or occupier, or both within eight days, properly to secure or protect such well, tank or other excavation; and if after the said period the work is not executed, the Nagar Panchayat or as the case may be, the Council shall cause a temporary hoard or fence to be put for the protection of passers-by and recover the expenses so incurred from the owner or occupier or the owners and occupiers of the land on which such tank, well or other excavation is situated. **[141. Penalty for disobeying requisition under sections 137, 138, 139 and 140.—Any owner or](http://indiankanoon.org/doc/118461/)** occupier of a house or land who fails to comply with a requisition issued by the Nagar Panchayat or the Council under the provisions of section 137, 138, 139 or 140 shall be punishable with fine not exceeding one thousand rupees, and with a further fine not exceeding two hundred rupees for every day during which the default is continued after the expiry of eight days from the date of service on him of such requisition. **[142. Power of Government to prohibit cultivation, use of manure, or irrigation injurious to](http://indiankanoon.org/doc/888682/)** **health.—If the Director of Medical Health and Family Planning Services, Public Health Officer of the** Government or Health Officer of the municipality or such other Medical Officer of the Medical Department of Manipur as may be prescribed, certifies that the cultivation of any description of crops, or the use of any kind of manure, or the irrigation of land in any specified manner— [(a) in any place within the limit of the municipality, is injurious to the health of person dwelling](http://indiankanoon.org/doc/1403191/) in the neighbourhood; or [(b) in any place within or without the limits of the municipality is likely to contaminate the water](http://indiankanoon.org/doc/1989651/) supply of the municipality or otherwise renders it unfit for drinking purposes the Government, on receipt of an application from the municipality by public notice, prohibit the cultivation of such crop, the use of manure or the use of the method of irrigation so certified to be injurious, or impose such conditions with respect thereto as may prevent the injury. **[143. Public latrines and urinals.—The municipality may provide and maintain in sufficient number](http://indiankanoon.org/doc/596850/)** and in proper situation, public latrines and urinals for the separate use of each sex, and shall cause the same to be kept in proper order and to be properly cleansed. **[144. Power to demolish unauthorised drains leading into public.—(1) If any person, without the](http://indiankanoon.org/doc/1365318/)** written permission of the municipality first obtained, marks or causes to be made, or alters or causes to be altered, any drain leading into any sewer, drain, water-course, road or land vested in the municipality, the municipality may cause such branch drain to be demolished, altered, made or otherwise dealt with as it may deem fit, and the expenses thereby incurred shall be paid by such person, making or altering such branch drain. [(2) The person so making or altering such branch drain shall also be liable for every such offence to a](http://indiankanoon.org/doc/966709/) fine not exceeding five hundred rupees. **[145. Penalty for allowing water of any sewer, etc., to run on any public road.—Whoever causes](http://indiankanoon.org/doc/140892/)** or allows the water of any sink, sewer, latrine, urinal, cesspool or any other offensive matter belonging to him or being on his land to run, drain or be thrown or put upon any public road, or causes or allows any offensive matter to run, drain or be thrown into a surface drain near any public road shall be liable to a fine not exceeding two hundred rupees and a daily fine not exceeding fifty rupees during which the offence is continued. **[146. Power to require owner to drain land.—If any land, near a sewer, drain or other outlet into](http://indiankanoon.org/doc/905015/)** which such land may, in the opinion of the Nagar Panchayat or as the case may be, the Council, be drained, is not drained to the satisfaction of the Nagar Panchayat or as the case may be, of the Council, it may require the owner within one month to drain the said land into such sewer, drain or outlet. **[147. Penalty for disobeying requisition under section 146.—Any person who fails to comply with](http://indiankanoon.org/doc/146862/)** a requisition issued by the Nagar Panchayat or, as the case may be, by the Council under the provision of section 146 shall be liable for every such offence, to a fine not exceeding two hundred rupees and a further fine not exceeding fifty rupees for every day during which he shall continue to make such default after service on him of such requisition. ----- _Scavenging and cleaning_ **[148. Establishment for removal of sewage, offensive matter and rubbish.—The Nagar Panchayat](http://indiankanoon.org/doc/688922/)** or, as the case may be, the Council shall provide for the removal— [(a) of sewage, rubbish and offensive matter from all public latrines, urinals and drains and from](http://indiankanoon.org/doc/569730/) all public roads and all other property vested in the municipality, and [(b) in any municipality wherein a latrine tax has been imposed under sub-section (1) of section 75](http://indiankanoon.org/doc/1583655/) of sewage and offensive matter from all private latrines, privies, urinals, cesspools and compounds. **[149. Sewerage scheme.—A municipality may also introduce a sewerage scheme for removal of](http://indiankanoon.org/doc/740312/)** sewage by flushing with water through underground closed sewers. When a municipality introduces such a scheme in its area the municipality may, where it is felt necessary, with the approval of the State Government, levy additional latrine and water taxes to meet the cost and maintenance of such scheme. **[150. Removal of sewage, offensive material, rubbish.—(1) The municipality may, from time to](http://indiankanoon.org/doc/508860/)** time, by an order published in the prescribed manner, appoint the hour within which sewage and offensive matter may be moved, the manner in which the same shall be moved, as also the hours within which only every occupier of any house or land may place rubbish in a receptacle provided by the municipality on or by the side of the public road. [(2) The municipality may provide places convenient for the deposit of sewage and offensive matter](http://indiankanoon.org/doc/53547/) and require the occupiers of houses to cause the same to be deposited daily or at other stated intervals in such places, and may remove the same at the expense of the occupiers from any house if the occupier thereof fails to do so. **[151. Penalty for placing rubbish on public road.—Any person who places or allows to place](http://indiankanoon.org/doc/1972245/)** rubbish on a public road or in a receptacle provided by the municipality at a time other than the time [appointed by the municipality under sub-section (1) of section 150 shall, for every such offence, be](http://indiankanoon.org/doc/1482779/) punishable with fine not exceeding five hundred rupees. **[152. Penalty on occupier for not removing filth, etc.—Any occupier of a house on or near a public](http://indiankanoon.org/doc/1600733/)** road who keeps or allows to be kept, for more than twenty-four hours, or for more than such shorter time as may be appointed by the municipality, otherwise than in some proper receptable, any house, ashes, sewage or any noxious or offensive matter in or upon such house, or in any out-house, yard or ground attached to and occupied with the house or suffers such receptacle to be in a filthy or noxious state, or neglects to employ means to cleanse the same shall, be punishable with fine not exceeding five hundred rupees. **[153. Penalty for throwing offensive matter on public roads, etc.—Any person who, without the](http://indiankanoon.org/doc/1633919/)** permission of the municipality throws or puts, or permits his servants to throw or put any sewage or offensive matter on any public road, or who throws or puts or permits his servants to throw or put, any earth, rubbish, sewage or offensive matter into any drain communicating therewith shall be punishable with fine not exceeding five hundred rupees. **[154. Power of servants of the Nagar Panchayat or of the Council.—All servants of the Nagar](http://indiankanoon.org/doc/1509264/)** Panchayat, or as the case may be, of the Council employed for the purposes mentioned in section 163 may, within such hours as may be fixed by the Nagar Panchayat or the Council, enter any premises, of which the occupier or owner is liable to pay latrine tax and do all things necessary for the performance of their duties. _Water supply and drainage system_ **[155. Supply of drinking water.—(1) Every Nagar Panchayat or as the case may be, the Council](http://indiankanoon.org/doc/1985773/)** shall provide or arrange for the provision of a sufficient supply of drinking water for the inhabitants of the areas within its jurisdiction. [(2) Every Nagar Panchayat or as the case may be, the Council shall provide sufficient and regular](http://indiankanoon.org/doc/129536/) supply of drinking water fit for human consumption or for domestic purposes within the jurisdiction of the Nagar Panchayat or of the Council. **[156. Removal of latrines, etc., near any source of water supply.—The municipality may, by](http://indiankanoon.org/doc/221599/)** notice, require an owner or occupier on whose land a drain, privy, latrine, urinal, cesspool or other ----- receptacle for filth or refuse exists as is likely to endanger the purity of water, a spring, well, tank, reservoir or other source from which water is, or may be, derived for public use, to remove or close the same within one week from the service of such notice. **[157. Owner or occupier to take steps to prevent spread of infectious disease.—In the event of a](http://indiankanoon.org/doc/625152/)** municipality, or any part thereof, being visited with an outbreak of cholera or other infectious disease notified in this behalf, the owner or occupier may during the continuance of the epidemic, without notice and at any time, inspect and disinfect any well, tank or other place from which water, is or is likely to be taken for the purpose of drinking and may further take such step as he deems fit to prevent the removal of water therefrom. **[158. Unauthorised construction or tree over drain or water-works.—(1) Where any road or way](http://indiankanoon.org/doc/563852/)** has been made or any building, wall or other structure has been erected or any tree has been planted over a public drain culvert or a water-work vested in the municipality, without the permission in writing of the municipality, the municipality may without prejudice to the generality of the other provision of this Act— [(a) by notice require the person who has made the road, erected the structure or planted the tree,](http://indiankanoon.org/doc/1872481/) or the owner or occupier of the land on which, the road has been made, structure erected or tree planted, to remove or deal in any other way as the municipality thinks fit with the road, structure or tree; or [(b) itself remove or deal in any other way as it thinks fit with the road, structure or tree.](http://indiankanoon.org/doc/201394/) [(2) Any expense incurred by a municipality for action taken under clause (b) of sub-section (1) shall](http://indiankanoon.org/doc/1853694/) be recoverable from the person by whom the road or way made, structure erected or tree planted. _Burial and burning ground or disposal of corpses_ **[159. Powers in respect of burial and burning places.—(1) The municipality may, from time to](http://indiankanoon.org/doc/1626269/)** time, out of the Municipal fund, provide suitable places to be used as burial or burning grounds either within or without the limits of the municipality and may charge such fees on the persons using the places as may be fixed by bye-laws which may be framed in that behalf. [(2) The municipality may, by public notice, order any burial or burning ground situated within](http://indiankanoon.org/doc/1913272/) municipal limits or any municipal burial or burning ground outside such limits which is certified by the Director of Medical, Health and Family Planning Service or a Public Health Officer of the State Government or a Health Officer of the municipality to be dangerous to the health of persons living in the neighbourhood, to be closed, from a date to be specified in the notice, and shall, in such case, if no suitable place for burial or burning exists within a reasonable distance, provide a fitting place for the purpose. [(3) If any person, without the permission of the municipality bury or burn any corpse, or permit, to be](http://indiankanoon.org/doc/437950/) buried or burnt, any corpse at any place which is not any burial or burning ground made or formed according to the provisions of this section, or after the date fixed thereunder for closing the same, he shall be punishable with fine which may extend to five hundred rupees. [(4) Private burial places may be exempted from the order subject to such conditions as the](http://indiankanoon.org/doc/804231/) municipality may impose in this behalf: Provided that the limits of such burial places are sufficiently defined and that they shall only be used for the burial of members of the family of the owners thereof. [(5) No private burial or burning ground shall be made or formed within the municipality after the](http://indiankanoon.org/doc/1255816/) commencement of this Act, without the permission in writing of the municipality. **[160. Burial of paupers and unclaimed dead bodies.—The municipality may from time to time, out](http://indiankanoon.org/doc/1929432/)** of the Municipal fund, provide for the burial or burning of paupers and unclaimed dead bodies, free of charge, within the limits of the municipality or otherwise arrange to dispose of as it thinks fit. **[161. Powers to cause corpses to be burnt or buried according to the religious tenets of the](http://indiankanoon.org/doc/93438/)** **deceased.—After the expiration of not less than twenty-four hours from the death of any person, the** Nagar Panchayat or as the case may be, Council may cause the corpse of such person to be burnt or buried, and the expenses thereby incurred shall be recoverable as a debt due from the estate of such ----- person. In every such case, the corpse shall be disposed of, so far as may be possible in manner consistent with the religious tenets of the deceased. CHAPTER XI OTHER POWERS AND PENALTIES _Markets and slaughter houses_ **[162. Establishment of markets.—A municipality may establish and maintain markets at suitable](http://indiankanoon.org/doc/1096875/)** places of the Municipality for the convenience of the people. **[163. Power to remove persons from municipal market.—If any officer specially empowered in](http://indiankanoon.org/doc/1609009/)** this behalf by the Nagar Panchayat or by the Council is satisfied that any person occupying any stall or space in any municipal market is in unauthorised occupation of the stall or space or continues to occupy the stall or space after authority to occupy has ceased, he may, with the previous sanction of the Nagar Panchayat or of the Council, require such person to vacate the stall or space within such time as may be mentioned in the requisition and such person may, in addition to any penalty to which he may be liable under this Act, be summarily removed from the stall or space. **[164. Places for slaughter of animals for sale.—(1) The Nagar Panchayat or, as the case may be, the](http://indiankanoon.org/doc/263299/)** Council may, and when required by the Government shall fix places with the approval of the State Government for slaughter of animals for sale, and the Nagar Panchayat or Council may grant and withdraw licence for the use of such premises, or, if they vest in the Nagar Panchayat or Council, may charge rent for fees of the use of the places. [(2) When any such premises have been fixed, no person shall slaughter any such animal for sale](http://indiankanoon.org/doc/1632409/) within the Municipal area at any other place. [(3) Any person who slaughters for sale any animals at any place within the Municipal area other than](http://indiankanoon.org/doc/1187737/) the one fixed by the Nagar Panchayat or as the case may be, the Council under this section shall be punishable with fine which may extend to five hundred rupees. **[165. Inspection before and after slaughter.—A Nagar Panchayat or, as the case may be, the](http://indiankanoon.org/doc/956931/)** Council shall arrange for inspection of the animal by a Veterinary Surgeon or a competent person before the animal is killed and may also arrange for inspection of the meat and organs for the purpose of certification, as may be laid down by bye-laws of the meat for use as food. **[166. Licensing of butcher.—No person shall carry on the profession of a butcher except under a](http://indiankanoon.org/doc/16243/)** licence from the municipality. _Nuisances from certain trades, professions, etc._ **[167. Regulation of offensive trades.—(1) If it is shown to the satisfaction of a Nagar Panchayat or of](http://indiankanoon.org/doc/903277/)** a Council that any building or place within the limits of the Municipality which any person uses or intends to use as a factory or other place of business for the manufacture, storage, treatment or disposal of any article, by reason of such use, or by reason of such intended use, occasions or is likely to cause a public nuisance, the Nagar Panchayat or the Council may at its option require by notice the owner or occupier of the building or place— [(a) to desist or refrain, as the case may be, from using, or allowing to be used, the building or](http://indiankanoon.org/doc/410204/) place for such purpose, or [(b) only to use, or allow to be used, the building or place for such purpose under such conditions](http://indiankanoon.org/doc/1022279/) or after such structural alterations as the Nagar Panchayat or the Council imposes or prescribes in the notice with the object of rendering the use of the building or place for such purpose free from objection. [(2) Whoever, after receiving a notice given under sub-section (1), uses or allows to be used any](http://indiankanoon.org/doc/1221247/) building or place in contravention of the notice shall be punishable with fine which may extend to four hundred rupees for every day on which he so uses or allows to be used the place or building after the date of the first conviction. **[168. Certain offensive and dangerous trades not to be established within the limits to be fixed](http://indiankanoon.org/doc/330889/)** **[by the municipality without licence.—(1)Within such local limits as may be fixed by the municipality](http://indiankanoon.org/doc/1620849/)** ----- no place shall be used without a licence from the municipality which shall be renewable annually, for any of the following purposes, namely:— [(a) melting tallow;](http://indiankanoon.org/doc/899949/) [(b) boiling offal or blood;](http://indiankanoon.org/doc/976544/) [(c) skinning or disembowelling animal;](http://indiankanoon.org/doc/1320858/) [(d) the manufacture of bricks, pottery, tiles or lime in a klin, panja or lamp or by any other](http://indiankanoon.org/doc/476551/) similiar method; [(e) as a soap-house, oil-boiling house, dyeing house;](http://indiankanoon.org/doc/277163/) [(f) as tannery, slaughter-house;](http://indiankanoon.org/doc/1790603/) [(g) as a manufactory or place of business from which offensive or unwholesome odour may arise;](http://indiankanoon.org/doc/310105/) [(h) as a yard or depot for hay, straw, bamboo, thatching grass, jute or other dangerously](http://indiankanoon.org/doc/1244359/) inflammable material for the purpose of any trade; [(i) any store-house for kerosene, petroleum napthamcoal-tar or any inflammable oil or wholesale](http://indiankanoon.org/doc/452512/) stock of matches exceeding one hundred gross; [(j) as a shop for the sale of meat;](http://indiankanoon.org/doc/771887/) [(k) as a place for the storage of rags or bones, or both;](http://indiankanoon.org/doc/1889051/) [(l) tea stall;](http://indiankanoon.org/doc/211752/) [(m) sweetmeat stall;](http://indiankanoon.org/doc/748048/) [(n) hotel or eating house;](http://indiankanoon.org/doc/1498842/) [(o) aerated water;](http://indiankanoon.org/doc/930560/) [(p) bakery, including biscuit factory.](http://indiankanoon.org/doc/641003/) [(2) Such licence shall not be withheld unless the municipality has reason to believe that the business](http://indiankanoon.org/doc/826349/) which it is intended to establish or maintain would be offensive or dangerous to persons residing in or frequenting the neighbourhood. [(3) The municipality may, subject, to such restrictions, if any, as it may impose, extend the provisions](http://indiankanoon.org/doc/492956/) of this section to yards or depots for trade in coal, coke, timber or wood. [(4) The grant of a licence for the purposes mentioned in clause (i) of sub-section (1) shall be](http://indiankanoon.org/doc/1949497/) consistent with the provision of the Petroleum Act, 1934 (30 of 1934) and no such licences shall be granted unless the said provisions have been complied with by the applicant for the licence. **[169. Cinemas, dramatic performances, circuses, etc.—(1) No place within a municipality shall be](http://indiankanoon.org/doc/638358/)** kept open for the purposes of regular gain or otherwise by means of public cinematographic exhibitions, dramatic performances, circuses, variety shows, or for purposes of public resort for similar recreations or amusements unless a licence has been granted therefor by the municipality, which licence shall be annually renewable and in accordance with such conditions as the municipality, subject to rules, may deem fit to impose: Provided that such conditions shall not be inconsistent with the terms of any licence which may be required for such place under any other Act. [(2) No place within the municipality shall be used for the purposes of public cinematographic,](http://indiankanoon.org/doc/323224/) performance, circus, variety shows, or as a place of public resort for similar recreations or amusements, otherwise than for the purpose of regular gain, unless a licence has been granted for such purpose by the municipality and in accordance with such conditions as the municipality, subject to rules, may think fit to impose: Provided that such conditions shall not be inconsistent with the terms of any licence which may be required for such places under any other Act: ----- Provided further that this sub-section shall not apply to private amateur performances or to performances held wholly for the benefit of charity, in any such place. [(3) If within a period of three months following the receipt of an application for licence under](http://indiankanoon.org/doc/968753/) sub-section (1) or sub-section (2) the Nagar Panchayat or the Council at a meeting has not passed order thereon, either granting or refusing a licence, it shall be deemed to have granted the licence. **[170. Cancellation, revocation, etc., of licences.—Subject to the provisions of section 196, any](http://indiankanoon.org/doc/804872/)** licence granted under section 169 by the municipality may, at any time, be suspended or revoked by it, if any of the restriction, limitations or conditions attached to the licence, be evaded or infringed by the grantee or if the grantee be convicted of a breach of any of the provisions of this Act or of any rule or bye-law made thereunder in any matter to which such licence relates or if the grantee has obtained the same by misrepresentation or fraud. **[171. Publication of order of refusal, suspension of licences.—Every order granting, refusing,](http://indiankanoon.org/doc/789054/)** suspending, revoking, or modifying a licence under section 169 or section 170, as the case may be, shall be, in writing, shall state the ground on which it proceeds, shall be published on the notice board of the office of the Nagar Panchayat or the Council and shall also be served on the owner of the premises concerned within fourteen days of the order. **[172. Power to close market, tea-stall, etc.—(1) The Nagar Panchayat or, as the case may be, the](http://indiankanoon.org/doc/354781/)** Council may, with a view to preventing the spread of any infectious or contagious disease, order that for a specified time, any market, tea-stall or restaurant, hotel or lodging-house within the Municipality shall be closed, or forbid any persons to attend any such market, tea-stall or restaurant, hotel or lodging-house. [(2) Such order shall be notified in such manner and at such places as the Nagar Panchayat or the](http://indiankanoon.org/doc/1747055/) Council may direct, and notice thereof shall be served on the owner, occupier or vendor of the market or the keeper of the hotel or lodging-house, tea-stall or restaurant. [(3) After complying with the notice to the owner or occupier, or vendor of the market or the keeper of](http://indiankanoon.org/doc/793292/) the hotel or lodging-house, tea-stall or restaurant or any person interested may appeal to the Deputy Commissioner, and if he considers the notice to be unreasonable, the order of the Deputy Commissioner shall be final. [(4) When an order has been notified under sub-section (2) and has not been set aside under](http://indiankanoon.org/doc/1587920/) sub-section (3) any owner, occupier or vendor of a market or the keeper of hotel or lodging-house, tea-stall or restaurant who neglects to close the market, hotel or lodging-house, tea-stall or restaurant shall be liable to a fine which may extend to five thousand rupees; and any person who attends such market, hotel or lodging-house, tea-stall or restaurant in contravention of the terms of the order shall be liable to fine which may extend to five hundred rupees. _Infectious or contagious diseases_ **[173. Penalty for failure to give information of cholera.—Whoever—](http://indiankanoon.org/doc/705352/)** [(a) being a medical practitioner and in the course of such practice becoming cognizant of the](http://indiankanoon.org/doc/1073705/) existence of cholera, plague, small pox or other infectious disease, that may be notified in this behalf by the Government in any dwelling-house other than a public hospital in the municipality, or [(b) being the owner or occupier of such dwelling house, and being cognizant of the existence of](http://indiankanoon.org/doc/1136416/) any such infectious disease therein, or [(c) being the person in charge of, or in attendance, on a person suffering from any such infectious](http://indiankanoon.org/doc/477291/) disease in such dwelling-house, and being cognizant of the existence of the disease therein, fails to give information within twenty-four hours of becoming so cognizant or gives false information to such officer as the Nagar Panchayat or as the case may be, the Council may appoint in this behalf respecting the existence of such disease shall be punishable with fine which may extend to five hundred rupees. **[174. Disinfection of building and articles.—(1) If the Nagar Panchayat or, as the case may be, the](http://indiankanoon.org/doc/650551/)** Council is of opinion that the cleansing or disinfecting of a building or any part thereof or of any article therein, which is likely to retain infection, will tend to prevent or check the spread of any disease, it may, ----- by notice require the owner or occupier to cleanse or disinfect the same in the manner and within the time prescribed in such notice. [(2) If—](http://indiankanoon.org/doc/925126/) [(a) within the time specified as aforesaid from the receipt of the notice the person on whom the](http://indiankanoon.org/doc/1882126/) notice is served to have the building or part thereof or the article disinfected, or [(b) the occupier or owner, as the case may be, gives his consent,](http://indiankanoon.org/doc/1039034/) the Nagar Panchayat or the Council may, at the cost of such owner or occupier, cause the building or part thereof and articles to be cleansed and disinfected: Provided that the Nagar Panchayat or the Council may, in its discretion pay the whole or any part of such cost. **[175. Penalty for letting infected house.—Every person knowingly letting a house or other building](http://indiankanoon.org/doc/1436931/)** or part of a house or building in which any person suffering from an infectious or contagious disease, had lived without having such house or other building or part thereof and all articles therein liable to retain infection, disinfected thereafter to the satisfaction of the Nagar Panchayat or the Council, shall be punishable with fine not exceeding two thousand rupees. _Explanation.—For the purpose of this section a hotel or lodging-house keeper shall be deemed to let_ part of his house to any person admitted as a guest into his hotel or lodging-house. **[176. Power of entry for purpose of preventing spread of disease.—The Nagar Panchayat or, as the](http://indiankanoon.org/doc/1632514/)** case may be, the Council may authorise any officer to enter, at any time between sunrise and sunset, after three hours notice into any building or premises in which any infectious or contagious disease is reported or suspected to exist, for the purposes of inspecting such building or premises on the basis of the report of the officer. The Nagar Panchayat or the Council will have the power to declare that a person is suffering from contagious disease and that house is infectious. **[177. Removal to hospital of patients suffering from infectious disease.—In any municipality when](http://indiankanoon.org/doc/1795297/)** any person suffering from any infectious disease is found to be— [(a) without proper lodging or accomodation, or](http://indiankanoon.org/doc/213571/) [(b) living in a Serai or other public hostel, or](http://indiankanoon.org/doc/1614277/) [(c) living in a room or house which neither he nor any one, of whom he is a dependent, either](http://indiankanoon.org/doc/1353939/) own or pays rent for, the Nagar Panchayat or, as the case may be, the Council, by any persons authorised by it in this behalf may, on the advice of an Assistant Surgeon, remove the patient to any hospital or place at which persons suffering from such diseases are received for medical treatment and may do anything necessary for such removal. _Park, playground and open space_ **[178. Municipality to provide places for recreation.—The municipality may provide open spaces,](http://indiankanoon.org/doc/325287/)** parks, playgrounds, common swimming pools and amenities for the use and enjoyment of the people and may frame bye-laws regulating their use. **[179. Function and powers in regard to pounds.—Every municipality shall, in regard to the](http://indiankanoon.org/doc/1542205/)** establishment, maintenance and management of pounds, perform such function as may be transferred to it by notification under section 31 of the Cattle Trespass Act, 1871 (1 of 1871 ) and lease out pound, when so transferred, according to rules framed under this section. CHAPTER XII PROCEDURE **[180. Service of notice.—(1) Every notice, bill, form, summons or notice of demand under this Act,](http://indiankanoon.org/doc/1479488/)** may— [(a) be served personally on or presented to the person to whom the same is addressed; or](http://indiankanoon.org/doc/160849/) ----- [(b) if it cannot be so served, presented or delivered, be affixed on some conspicuous part of his](http://indiankanoon.org/doc/1559720/) place of abode or of the land, building or other thing in respect of which the notice, bill, form, summons or notice of demand is intended to be served; or [(c) be sent by post in registered cover.](http://indiankanoon.org/doc/1049805/) [(2) Every such notice, bill, form, summons or notice of' demand shall be signed by or bear a facsimile](http://indiankanoon.org/doc/596900/) signature of Chairperson, Vice-Chairperson or any other officer authorised by the Chairperson in that behalf. **[181. Reasonable time for act to be fixed.—When any notice under this Act requires any act to be](http://indiankanoon.org/doc/998656/)** done for which no time is fixed by this Act, the Nagar Panchayat or Council shall fix a reasonable time for doing the same. **[182. Service of notice on owner or occupier of land.—When any notice is required to be given to](http://indiankanoon.org/doc/783076/)** the owner or to the occupier of any land, or both, such notice addressed to the owner or occupier or both, as the case may require, may be served on the occupier of such land, or otherwise in the manner mentioned in section 180: Provided that when the owner and his place of abode are known to the Nagar Panchayat or to the Council or other authorities issuing the notice they shall, if such place of abode be within the limits of their authority, cause such notice to be served on such owner, or left with some adult member or servant of his family; and if the place of abode of the owner be not within such limits, they shall send every such notice by post in a registered cover addressed to his place of abode and such service shall be deemed to be good service of the notice: Provided further that when the name of the owner or occupier or of both is not known it shall be sufficient to designate him or them as “the owner” or “the occupier” of the land in respect of which the notice is served. **[183. Procedure when owners or occupiers are required by Nagar Panchayat or the Council to](http://indiankanoon.org/doc/1110271/)** **[execute works.—(1) Whenever it is provided in this Act, that the Nagar Panchayat or, the Council may](http://indiankanoon.org/doc/1785245/)** require the owner or the occupiers, of any land or both to execute any work or to do anything, such requisition shall be made, as far as possible, by a notice to be served as provided in sections 180 and 182 on every owner or occupier who is required to execute such work or to do such thing; but if there be any doubt as to the persons who are owners or occupiers, such requisition may be made by a notice to be affixed or posted upon or near the spot at which the work is required to be executed or the thing done requiring the owners or the occupiers, of any land or both, to execute such notice. It shall not be necessary to name the owners or occupiers. [(2) Every such requisition shall give notice to the persons to whom it is addressed that, if they fail to](http://indiankanoon.org/doc/1924532/) comply with the requisition or prefer an objection against such requisition as provided hereafter in section 184 the municipality may enter upon the land and cause the required work to be executed, or the required thing to be done; and that in such case the expenses incurred thereby shall be recovered from the persons who are required in such requisition to execute such work or do such thing. **[184. Person required to execute any work may prefer objection to the municipality.—Any](http://indiankanoon.org/doc/1670706/)** person who is required by such requisition to execute any work or to do anything may instead of executing the work or doing the thing required, prefer an objection in writing to the municipality against such requisition within fifteen days of the service of the notice affixing or posting up of the notification containing the requisition, or if the time within which he is required to comply with the requisition be less than fifteen days, then within such less time. **[185. Procedure if person objecting alleges that work will cost more than three thousand](http://indiankanoon.org/doc/762443/)** **rupees.—If the objector alleges that the cost of executing the work or of doing the thing required may** exceed three thousand rupees, such objection shall be heard and disposed of by the municipality at a meeting, unless the Chairperson or Vice-Chairperson shall certify that such cost may not exceed three thousand rupees, in which case the objection shall be heard and disposed of by the Chairperson and the Vice-Chairperson: Provided that in any case in which the Chairperson or the Vice-Chairperson shall have certified his opinion and the objection shall in consequence thereof have been heard and disposed of by the ----- Chairperson and the Vice-Chairperson, the person making the objection may, if the requisition made upon him is not withdrawn on the hearing of his objection, pay in the said sum of three thousand rupees to the municipality as the cost of executing the work or doing the thing required, whereupon such person shall be relieved of all further liability and obligation, in respect of executing the work or doing the thing required and in respect of paying the expenses thereof and the municipality itself shall execute such work or do such thing, and shall exercise all powers necessary therefor. **186. Chairperson, Vice-Chairperson to make order after hearing objection.—The Chairperson or** the Vice-Chairperson, of the Nagar Panchayat or, the council as the case may be, shall after hearing the objection and making any enquiry which they may deem necessary, record an order withdrawing, modifying, or making absolute the requisition against which the objection is preferred and if such order does not withdraw the requisition it shall specify the time within which the requisition shall be carried out, which shall not be less than the shortest time which might have been mentioned in the original requisition under this Act. **[187. Power of municipality on failure of persons to execute works.—If the person or persons](http://indiankanoon.org/doc/1867700/)** required to execute the work or to do the thing fail, within the time specified in any requisition as aforesaid, to begin to execute such work or to do such thing, and thereafter diligently to execute the same to the satisfaction of the municipality until it is completed, the municipality or any person authorised by it in that behalf, may, after giving forty-eight hours notice of its intention by a notification to be affixed or posted upon or near the spot, enter upon the land and perform all necessary acts for the execution of the work or doing of the thing required; and the expenses thereby incurred shall be paid by the owners or by the occupiers, if such requisition was addressed to the owners or to the occupiers, as the case may be, and by the owners and the occupiers, if such requisition was addressed to the owners and the occupiers. **[188. Power to apportion expenses among owners and occupiers.—(1) Whenever any expenses](http://indiankanoon.org/doc/1906081/)** incurred by the municipality are to be paid by the owners of any land as provided in section 187 the municipality may, if there be more than one owner, apportion the said expenses among such of the owners as are known in such manner as the municipality may deem fit. [(2) Whenever any such expenses are to be paid by the occupiers of any land as provided in section](http://indiankanoon.org/doc/615832/) 187 the municipality may, if there be more than one occupier, apportion the said expenses among such of the occupiers, as are known in such manner as the municipality may deem fit. **[189. Apportionment among owners and occupiers.—Whenever any expenses incurred by the](http://indiankanoon.org/doc/1244092/)** municipality are to be paid by the owners and occupiers of any land, as provided in section 187 the municipality may apportion the said expenses among the said owners and occupiers or such of them as are known in such manner as the municipality may deem fit. **[190. Occupiers may recover cost of works executed at their expenses from owners.—Whenever](http://indiankanoon.org/doc/1106179/)** any works or alterations and improvements, of which the municipality is authorised by this Act to require the execution, are executed by the occupier on the requisition of the municipality, or are executed by the municipality and cost thereof is recovered from the occupier, the cost thereof may, if the municipality certify that such cost ought to be borne by the owner, be deducted by such occupier from the next and following payment of his rent due or becoming due to such owner, or may be recovered by him in any court of competent jurisdiction. **[191. Power to enter upon, possession of houses so repaired.—If the municipality under the](http://indiankanoon.org/doc/1849572/)** provisions of this Act shall have caused any repairs to be made to any house or other structure and if such house or other structure be unoccupied, the municipality may enter into possession of the same, and may retain possession thereof until the sum expended by it on the repairs be paid to it. **[192. Sale of materials of houses pulled down.—(1) The materials of anything which shall have been](http://indiankanoon.org/doc/1370546/)** pulled down or removed under the provisions of section 183 may be sold by the municipality, and the proceeds of such sale shall be adjusted to the payment of the expenses incurred. [(2) The surplus sale-proceeds, if any, shall be credited to the Municipal fund, and may be paid on](http://indiankanoon.org/doc/480273/) demand to any person who establishes his right to the satisfaction of the municipality or in a court of competent jurisdiction. ----- **[193. Cognizance.—(1) Unless otherwise expressly provided in this Act a Court shall take cognizance](http://indiankanoon.org/doc/755630/)** of any offence under this Act or under any rules or bye-laws made thereunder except on the complaint of the municipality or some person authorised by the municipality by general or special order in this behalf. [(2) No Court inferior to that of a Magistrate of the first class shall try any of the offences specified in](http://indiankanoon.org/doc/546571/) sub-section (1). **[194. Offences under the Act compoundable.—(1) The offences under this Act shall be](http://indiankanoon.org/doc/263840/)** compoundable: Provided that no offence, arising from the failure to comply with a written notice given by or on behalf of, the Nagar Panchayat or the Council, as the case may be, shall be compoundable unless the notice has been complied with. [(2) Sums paid by way of composition under this section shall be credited to the Municipal Fund.](http://indiankanoon.org/doc/1355163/) **[195. Power and duties of police in respect of offences.—Every police officer shall give immediate](http://indiankanoon.org/doc/160085/)** information to the municipality of an offence coming to his knowledge which has been committed against this Act or against any rules or bye-laws made thereunder, and shall be bound to assist all members, officers and employees of the municipality in the exercise of their lawful duty. **[196. Appeals from order refusing licences.—Any person aggrieved by an order of a municipality](http://indiankanoon.org/doc/714071/)** refusing, revoking or suspending licence or permission required under this Act may, notwithstanding anything contained elsewhere in this Act, within thirty days from the date of refusal, revoking or suspension, appeal to the State Government or an officer authorised by the Government in that behalf whose decision shall be final and shall not be questioned in any Court. **[197. Appeals from orders in other cases.—(1) Any person aggrieved,—](http://indiankanoon.org/doc/374251/)** [(a) by the refusal of the Nagar Panchayat or Council under section 126 to sanction the erection,](http://indiankanoon.org/doc/1585862/) re-erection or material alteration of any building; or [(b) by a notice from the Nagar Panchayat or Council under section 112 requiring a road to be](http://indiankanoon.org/doc/294201/) drained, levelled, paved, flagged, metalled, or provided with proper means of lighting or under section 129 requiring the alteration or demolition of a building; or [(c) by any order of the Nagar Panchayat or Council under the powers conferred upon it by section](http://indiankanoon.org/doc/1109007/) 132 or by any order made by the Nagar Panchayat or by the Council under bye-law framed under clause (vii) of sub-section (1) of section 209, may, within thirty days from the date of such refusal, notice, order, appeal to the Deputy Commissioner. [(2) No such refusal, notice or order shall be questioned otherwise than by such an appeal.](http://indiankanoon.org/doc/1236593/) [(3) The decision of the Deputy Commissioner shall be final.](http://indiankanoon.org/doc/550109/) **[198. Appeal not to be dismissed without giving reasonable opportunity.—No appeal under](http://indiankanoon.org/doc/319310/)** section 196 or section 197 shall be dismissed or allowed partly or wholly, unless reasonable opportunity of showing cause or being heard has been given to the parties. **[199. Dispute as to compensation payable by municipality.—(1) When a dispute arises regarding](http://indiankanoon.org/doc/1097134/)** the amount of compensation which the municipality is required by this Act to pay, it shall be settled in such manner as the parties may agree, in default of agreement, by the Deputy Commissioner upon application made to him by the municipality or the person claiming compensation. [(2) If the municipality or the person claiming compensation is not satisfied with the decision of the](http://indiankanoon.org/doc/148855/) Deputy Commissioner, it or he shall have a right to require the Deputy Commissioner to make a reference to the District Judge, in accordance with the provisions of section 18 of the Land Acquisition Act, 1894 (1 of 1894 ). **[200. Indemnity.—No suit shall be maintainable against Nagar Panchayat or Council or any of its](http://indiankanoon.org/doc/1789317/)** committees, or any officer or employee, or any person acting under or in accordance with, the direction of the Nagar Panchayat or of the Council or any of its committees or any municipal officer or servant, in respect of anything in good faith done or intended to be done under this Act or under any rule or bye-law made thereunder. ----- **[201. Bar of suits in absence of notice.—(1) No suit or other legal proceeding, not being a criminal](http://indiankanoon.org/doc/437978/)** proceeding, shall be instituted against any Nagar Panchayat or Council, or any of its officers in respect of any act purporting to be done by such officer in his official capacity, or any person acting under its direction, until the expiry of two months next after notice in writing has been delivered to or left at the office of— [(a) in the case of a suit against the Nagar Panchayat or Council, the Executive Officer;](http://indiankanoon.org/doc/859449/) [(b) in the case of an officer, the officer against whom the suit or proceeding is instituted and, in](http://indiankanoon.org/doc/157422/) the case of any person acting under its direction, delivered to him at his place of residence or business stating the cause of action, the name, description and place of residence of the plaintiff or the petitioner and the relief which he claims; and the plaint or the petition shall contain a statement that such notice has been so delivered or left. _Explanation.—In this section “Officer” includes the Chairperson and the Vice-Chairperson._ [(2) Every such action shall be commenced within three months next after the arising of the cause of](http://indiankanoon.org/doc/1229581/) action, and not afterwards. CHAPTER XIII CONTROL **[202. Control by Deputy Commissioner.—The Deputy Commissioner or the Director or any officer](http://indiankanoon.org/doc/686083/)** so empowered by the Government in this behalf may at any time— [(i) enter into and inspect, or cause any other person to enter into or inspect—](http://indiankanoon.org/doc/267125/) [(a) any immovable property in the occupation of, or](http://indiankanoon.org/doc/1075363/) [(b) any work in progress under, or](http://indiankanoon.org/doc/1138205/) [(c) any institution under the control and administration of the Nagar Panchayat, or as the case](http://indiankanoon.org/doc/288918/) may be, the Council; and [(ii) call for inspection of any book or document which may be, for the purpose of this Act, in the](http://indiankanoon.org/doc/1474839/) possession or under the control of the Nagar Panchayat or, as the case may be, the Council. **[203. Power to suspend action under the Act.—(1) The Government, or the Deputy Commissioner](http://indiankanoon.org/doc/3134/)** may, by order in writing, suspend the execution of any resolution or order of the municipality or prohibit the doing of any act which is about to be done or is being done, in pursuance of, or under this Act, or in pursuance of any sanction or permission granted by the municipality in the exercise of their powers under this Act, if in its or his opinion, the resolution, order or act is contrary to the public interest or is in excess of the powers conferred by law, or the execution of the resolution or order, or the doing of the act is likely to lead to a serious breach of the peace, or to cause serious injury or annoyance to the public, or to any class or body of persons. [(2) When the Deputy Commissioner makes any order under this section, he shall forthwith forward a](http://indiankanoon.org/doc/1923704/) copy thereof, with a statement of his reasons for making it, to the Government. [(3) The Government may obtain the views of the Director and thereupon either rescind the order or](http://indiankanoon.org/doc/294390/) direct that it continues in force with such modification and for such period as it may deem fit. **[204. Powers of Deputy Commissioner in case of emergency.—(1) If, in any case of emergency, the](http://indiankanoon.org/doc/949823/)** Deputy Commissioner upon the recommendation of the concerned technical advisor immediately, available, is of opinion that the immediate execution of any work or the immediate doing of any act which the Nagar Panchayat or the Council, whether at a meeting or otherwise, are empowered to execute or do, is necessary for the health or safety of the public, he may call upon the Nagar Panchayat or the Council to execute the work within such time as he may appoint. If such work is not executed within such period he may appoint some other person to execute the work or do the act immediately. [(2) The Deputy Commissioner shall forthwith report to the Government every case in which he uses](http://indiankanoon.org/doc/1762195/) the powers conferred on him under sub-section (1) whereupon the Government may pass such order as it may deem fit. [(3) Where any person is appointed under sub-section (1), the Deputy Commissioner may direct that](http://indiankanoon.org/doc/1031993/) the expense of performing the duty, executing the work or doing the act, together with reasonable ----- remuneration, if any, to the person so appointed, shall forthwith be paid by the Nagar Panchayat or by the Council. [(4) Where such expense and remuneration are not so paid, the Deputy Commissioner may make an](http://indiankanoon.org/doc/1898311/) order directing the person having the custody of the balance of the Municipal Fund to pay the expense and remuneration, or so much thereof as is possible from the balance, in priority to any or all other charge, and such person shall make payment accordingly. **[205. Power to dissolve Nagar Panchayat or Council in certain cases.—If in the opinion of the](http://indiankanoon.org/doc/902592/)** Government, a Nagar Panchayat or a Council, as the case may be, is not competent to perform or persistently make default in the performance of the obligatory duties imposed upon it by or under this Act or exceed or abuse its power the Government may by notification, stating the reasons for so doing declare such Nagar Panchayat or Council to be incompetent or in default or to have exceeded or abused its power, as the case may be, and dissolve such Nagar Panchayat or Council: Provided that a Nagar Panchayat or a Council, as the case may be, shall be given a reasonable opportunity of being heard before its dissolution: Provided further that when a Nagar Panchayat or a Council, as the case may be, is dissolved, the Government may appoint any person or persons to exercise and perform the powers and duties of the Nagar Panchayat or the Council during the period of dissolution until the new Nagar Panchayat or the Council, as the case may be, is constituted: Provided also that the Government shall, before the expiry of a period of six months from the date of dissolution of the Nagar Panchayat or the Council, cause fresh elections to be held for the constitution of a new Nagar Panchayat or a new Council. **[206. Consequence of dissolution.—An order of dissolution shall have the following consequences,](http://indiankanoon.org/doc/1643949/)** namely:— [(a) all the Councillors of the Nagar Panchayat or of the Council shall, as from the date of order,](http://indiankanoon.org/doc/1226828/) vacate their offices as such Councillors; [(b) all the powers and duties which under the Act may be exercised and performed by the Nagar](http://indiankanoon.org/doc/954/) Panchayat or the Council, whether at a meeting or otherwise, shall, during the period of dissolution, be exercised and performed by such person or persons as the Government may direct; [(c) all property vested in such Nagar Panchayat or the Council shall, during the period of](http://indiankanoon.org/doc/402965/) dissolution, vest in the Government. **[207. Decision of disputes between local authorities.—(1) When a dispute arises between a Nagar](http://indiankanoon.org/doc/415817/)** Panchayat or a Council or any other local authority on any matter which they are jointly interested, such dispute shall be referred to Government, whose decision shall be final. [(2) The Government may regulate by rules made under this Act the relation to be observed between a](http://indiankanoon.org/doc/863909/) Nagar Panchayat or a Council and other local authorities in any matter in which they are jointly interested. CHAPTER XIV RULES AND BYE-LAWS **[208. Powers of State Government to make rules.—(1) The Government may, by notification and](http://indiankanoon.org/doc/1878768/)** subject to the condition of previous publication, make rules for the purpose of carrying into effect the provisions of this Act. [(2) In particular, and without prejudice to the generality of the foregoing powers, such rules may](http://indiankanoon.org/doc/1900365/) provide for all or any of the following matters, namely:— [(i) manner in which the minutes of the proceedings of a meeting of a Nagar Panchayat or a](http://indiankanoon.org/doc/870354/) Council or its committees shall be recorded and published; [(ii) form and manner in which the accounts of receipts and expenditures of a Nagar Panchayat or](http://indiankanoon.org/doc/114688/) a Council shall be kept; ----- [(iii) form and manner in which the annual budget of a Nagar Panchayat or a Council shall be](http://indiankanoon.org/doc/1025603/) prepared; [(iv) manner in which returns, statements and reports by a Nagar Panchayat or a Council shall be](http://indiankanoon.org/doc/1904984/) submitted; [(v) matter not specifically provided for in this Act for the valuation of holdings, for the](http://indiankanoon.org/doc/123910/) assessment, collection and refund of taxes imposed under this Act; [(vi) determination of fees payable upon distraint warrant under this Act;](http://indiankanoon.org/doc/534723/) [(vii) regulation, management and inspection of the working systems of water-supply, lighting,](http://indiankanoon.org/doc/1825047/) drainage or sewerage provided, established or maintained by or under the control and administration of a Nagar Panchayat or a Council; [(viii) form and procedure for taking oath or affirmation by Chairperson, Vice-Chairperson and](http://indiankanoon.org/doc/449559/) Councillor the authority who shall administer oath or affirmation; and [(ix) manner in which bye-laws shall be published after confirmation by the Government.](http://indiankanoon.org/doc/536280/) [(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before Legislative](http://indiankanoon.org/doc/911543/) Assembly while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following the session or the successive sessions aforesaid, Legislative Assembly makes any modification in the rule or decides that any such rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **[209. Power of municipality to frame bye-laws.—(1) A municipality may, frame bye-laws consistent](http://indiankanoon.org/doc/230785/)** with the provisions of this Act and the rules made thereunder for carrying out the provisions of this Act, for— [(i) any matter in respect of which power to frame bye-laws is conferred expressely on the](http://indiankanoon.org/doc/191327/) municipalilty under this Act; [(ii) regulating traffic, and preventing obstructions and encroachments and unisances on or near](http://indiankanoon.org/doc/774265/) public roads, or on or near pontoons bridges, ghats, landing places, river banks or other places of public resort or on places near water works for the supply of drinking water; [(iii) prescribing a minimum width of wheel-tyres or a minimum diameter and the maximum](http://indiankanoon.org/doc/608907/) wheel-tracks or wheels for different classes of carts and carriage kept or used within the municipality; [(iv) prescribing the manner in which notice of the intention to erect, re-erect, materially alter a](http://indiankanoon.org/doc/1233341/) building shall be given to the municipality; [(v) requiring that with every such notice shall be furnished with a site-plan of the land on which it](http://indiankanoon.org/doc/1379529/) is intended to erect, re-erect or materially alter such building and plan and specification, and in the case of erection or re-erection of a building, estimate also of the cost of construction (excluding cost of land and its improvement) of the building, all such characters and with such details as the bye-laws may require in respect of all or any of the following matters, viz.— [(a) free passage or way in front of the building;](http://indiankanoon.org/doc/492317/) [(b) space to be left about the building to secure free circulation of air and facilitate](http://indiankanoon.org/doc/373506/) scavenging and for the prevention of fire; [(c) provision and position of latrines, privies, urinals, cesspools or drains;](http://indiankanoon.org/doc/1728627/) [(d) level and width of foundation, level of the lowest floor, and stability of the structure; and](http://indiankanoon.org/doc/1746631/) [(e) the line of frontage with neighbouring buildings, it the building abuts on a public road;](http://indiankanoon.org/doc/961320/) ----- [(vi) regulating in respect of the erection, re-erection or material alteration of any buildings, within](http://indiankanoon.org/doc/1234546/) the municipality or part thereof— [(a) the materials and method of construction to be used for external and partition walls, roofs](http://indiankanoon.org/doc/662904/) and floors; [(b) the materials and method of construction and position of fire-places, chimneys, latrines,](http://indiankanoon.org/doc/1000021/) privies, urinals, cesspools and drains; [(c) the height and slope of the roof above the uppermost floor upon which human beings are](http://indiankanoon.org/doc/1897830/) to live or cooking operations are to be carried on; [(d) the space to be left about the building to secure the free circulation of air and for the](http://indiankanoon.org/doc/1568864/) prevention of fire; [(e) the line of frontage where the building abuts on a public road;](http://indiankanoon.org/doc/1051097/) [(f) the number and height of the storeys of which the building may consist;](http://indiankanoon.org/doc/260073/) [(g) the means to be provided for egress from the building in case of fire;](http://indiankanoon.org/doc/1632942/) [(h) any other matter affecting the ventilation or sanitation of the building; and](http://indiankanoon.org/doc/1817881/) [(i) matter concerning sanitary conditions and water pollution of the area;](http://indiankanoon.org/doc/542006/) [(vii) preventing the erection of buildings without adequate provisions being made for the laying](http://indiankanoon.org/doc/961873/) out and location of roads; [(viii) regulating the level, means of drainage, alignment and width of roads constructed by private](http://indiankanoon.org/doc/930813/) persons; [(ix) regulating the use of, and the prevention of nuisance in regard to public water-supply, bathing](http://indiankanoon.org/doc/230736/) and washing place, streams, channels, tanks and wells; [(x) regulating, either by granting licences necessary or otherwise, the washing of clothes by](http://indiankanoon.org/doc/1131175/) professional washerman, and fixing the places in which clothes may be so washed or in which they may not be so washed; [(xi) prescribing the measures to be taken for the prevention of the breeding of mosquitoes in](http://indiankanoon.org/doc/1825339/) wells, tanks, pools, excavations, cisterns or other places or vessels containing or capable of containing water; [(xii) regulating the cutting of trees and bamboos within the municipality;](http://indiankanoon.org/doc/492011/) [(xiii) regulating the disposal of sewage, offensive matter, carcasses of animals and rubbish, and](http://indiankanoon.org/doc/1434660/) the construction and maintenance of latrines, privies, urinals, cesspools, drains and sewers; [(xiv) providing for the inspection and regulation of markets and for the preparation and exhibition](http://indiankanoon.org/doc/1276077/) of a price list thereat; [(xv) regulating the hours and manner of transport within the municipality of any specified articles](http://indiankanoon.org/doc/66133/) of food or drink; [(xvi) fixing the places in which any specified article of food or drink may be sold or exposed for](http://indiankanoon.org/doc/1262114/) sale or the places in which it may not be sold or exposed for sale and regulating the sale of foodstaff unfit for human consumption; [(xvii) regulating either by granting licences necessary or otherwise, or prohibiting, for the purpose](http://indiankanoon.org/doc/852403/) of preventing danger to the public health the stalling or herding of horses, cattle, swine, donkeys, sheep or goats, geese, ducks and fowls; [(xviii) providing for the inspection of milch cattle and prescribing the measures to be taken on the](http://indiankanoon.org/doc/923119/) occurrence among them of infections or contagious diseases; and prescribing and regulating the construction, dimensions, ventilation, lighting, cleansing drainage and water-supply of dairies and cattle-sheds in the occupation of persons carrying on the trade of dairymen or milksellers; [(xix) providing for the inspection and proper regulation of encamping grounds, pounds, serais, or](http://indiankanoon.org/doc/1389733/) dharmsalas; bakeries and serated water factories, ice factories, flour mills, oil mills, sweet-meat shops, factories and other places in which mechanical or electrical power is employed, and slaughter house; ----- [(xx) preventing nuisances affecting the public health, safety, or convenience in places of public](http://indiankanoon.org/doc/520539/) resort for purposes of recreation or amusement; [(xxi) preventing nuisances affecting the public health, safety or convenience;](http://indiankanoon.org/doc/448295/) [(xxii) controlling and regulating the use and management of burial and burning grounds and the](http://indiankanoon.org/doc/146411/) disposal of corpses; [(xxiii) providing for the holding of fairs and industrial exhibitions within the municipality or](http://indiankanoon.org/doc/1023485/) under the control of the municipality and for fixing and collecting the fees to be levied thereat; [(xxiv) fixing the conditions on which licences under this Act are to be granted and may be](http://indiankanoon.org/doc/676525/) suspended or revoked; [(xxv) preventing and removing any encroachments on any municipal land including markets,](http://indiankanoon.org/doc/1292238/) drains, roads, etc.; [(xxvi) giving effect to the objects and purposes of this Act and the Municipality may by such](http://indiankanoon.org/doc/23123/) bye-laws impose on offenders against any provision of the bye-laws, such reasonable penalties as it may think fit, not continuing offence, a further penalty not exceeding two hundred rupees for each day after written notice of the offence to them from the municipality: Provided that the above limits of rupees five thousand and rupees two hundred shall not apply to the offences in respect of the bye-laws regulating octroi; [(xxvii) distribution of works among the officers and the members of the staff of the municipality.](http://indiankanoon.org/doc/105653/) **[210. Additional power to frame bye-laws in hill areas.—(1) A Nagar Panchayat or Council whose](http://indiankanoon.org/doc/881835/)** municipality is wholly or in part situated in a hilly tract may, in addition to such bye-laws as it may make under the preceding section frame bye-laws for regulating or prohibiting the cutting or destroying of tree; or shrubs or the making of excavations or removal of soil or quarrying, where such regulation or prohibition appears to the Nagar Panchayat or the Council to be necessary for any or all of following purposes:— [(a) the maintenance of water supply;](http://indiankanoon.org/doc/988524/) [(b) the preservation of the soil;](http://indiankanoon.org/doc/313768/) [(c) the prevention of landslips;](http://indiankanoon.org/doc/638843/) [(d) the formation of ravines or torrents;](http://indiankanoon.org/doc/456104/) [(e) the protection of land against erosion or the deposit thereon of sand, gravel or stones;](http://indiankanoon.org/doc/1367917/) [(f) the protection of the beauty or general appearance of the municipality.](http://indiankanoon.org/doc/769989/) [(2) The Nagar Panchayat or the Council may, by any bye-law framed under this section, declare that](http://indiankanoon.org/doc/921731/) any person commiting a breach of any such bye-law, or failing to comply with any notice issued thereunder, shall be liable to fine which may extend to five hundred rupees and to a further fine, which may extend to two hundred rupees for each day after conviction during which the offence is continued. **[211. Confirmation of bye-laws.—(1) The power to frame bye-laws in the Act shall be subject to the](http://indiankanoon.org/doc/1251876/)** condition of previous notification. [(2) No such bye-laws shall come into force until it has been confirmed by the Government.](http://indiankanoon.org/doc/1268710/) [(3) The Government may cancel its confirmation of any such bye law, and thereupon the bye-law](http://indiankanoon.org/doc/1080948/) shall cease to have effect. **[212. Publication of bye-laws.—Every bye-law shall, after confirmation, be published in the](http://indiankanoon.org/doc/73608/)** prescribed manner. **[213. Model bye-laws.—The Government may from time to time frame model bye-laws for any](http://indiankanoon.org/doc/1435446/)** matter in respect of which a municipality is empowered to frame bye-laws under this Act and publish them in the Official Gazette for the guidance of municipality. ----- CHAPTER XV MISCELLANEOUS **[214. Validity of acts and proceedings.—(1) No act of the Nagar Panchayat or of the Council or of](http://indiankanoon.org/doc/578629/)** any of its committees shall be deemed to be invalid by reason of any vacancy in the membership thereof. [(2) Any proceeding of a meeting of the Nagar Panchayat or of Council or of any committee thereof](http://indiankanoon.org/doc/1635604/) shall be valid notwithstanding that it is subsequently discovered that some person who was not entitled to do so, sat or voted or otherwise took part in the proceedings. **[215. Petition for challenging election.—(1) The election of a person to the office of a Councillor](http://indiankanoon.org/doc/528044/)** shall not be called in question except by a petition to be filed before the Election Tribunal within such time and in such manner as may be prescribed, on the ground that— [(a) the election has not been a free election by reason that the corrupt practice of bribery or undue](http://indiankanoon.org/doc/493587/) influence has extensively prevailed at the election; or [(b) that the result of the election has been materially affected—](http://indiankanoon.org/doc/235060/) [(i) by the improper acceptance or rejection of any nomination; or](http://indiankanoon.org/doc/1076956/) [(ii) by gross failure to comply with the provisions of this Act or the rules framed thereunder.](http://indiankanoon.org/doc/1858339/) [(2) The Election Tribunal constituted under section 103 of the Manipur Panchayati Raj Act, 1994](http://indiankanoon.org/doc/1047040/) (26 of 1994), shall also be the Election Tribunal for the purposes of sub-section (1). [(3) The decision of the Election Tribunal shall be final.](http://indiankanoon.org/doc/1261839/) **[216. Power to make rules for election and election petition.—For the purpose of election of](http://indiankanoon.org/doc/408162/)** Chairperson, Vice-Chairperson and Councillor, the Government shall make rules for election and election petition under this Act. **[217. Bar of jurisdiction of Civil Courts in election matters.—(1) No civil court shall have](http://indiankanoon.org/doc/1573098/)** jurisdiction to question the legality of any action taken or any decision given by an officer or authority appointed under this Act, in connection with the conduct of elections thereunder. [(2) Notwithstanding anything contained in this Act,—](http://indiankanoon.org/doc/1587847/) [(a) the validity of any law relating to the delimitation of constituencies or the allotment of seats to](http://indiankanoon.org/doc/1701350/) such constituencies, made or purporting to be made under this Act shall not be called in question in any Court; [(b) no election to any municipality shall be called in question except by an election petition](http://indiankanoon.org/doc/138917/) presented to Election Tribunal and in such manner as is provided for by this Act. **[218. Election to the municipalities.—(1) The superintendence, direction and control of the](http://indiankanoon.org/doc/1228946/)** preparation of electoral rolls for, and conduct of, all elections to the Municipalities shall be vested in the State Election Commission constituted under section 98 of the Manipur Panchayati Raj Act, 1994 (26 of 1994 ). [(2) Subject to the provisions of this Act, election to the municipality shall be held in accordance with](http://indiankanoon.org/doc/1614401/) the rules made by the Government in this behalf. [(3) The Government shall, when so requested by the State Election Commission, make available to](http://indiankanoon.org/doc/1476129/) the State Election Commission such staff as may be necessary for the discharge of the functions conferred on the State Election Commission under this Act. **[219. Electoral roll for a municipal area.—(1) For every municipal area, there shall be an electoral](http://indiankanoon.org/doc/930079/)** roll showing the names of persons qualifying to vote. [(2) The electoral roll for every municipal area shall be divided into several parts, one for each ward of](http://indiankanoon.org/doc/769913/) a municipal area. [(3) The electoral roll for a municipal area shall be prepared, revised or corrected by the State Election](http://indiankanoon.org/doc/147426/) Commission in accordance with such rules as may be made by the Government in this behalf: ----- Provided that there shall be a preliminary publication of such electoral roll after preparation or revision to be followed by final publication after hearing of objections in the manner prescribed. [(4) Notwithstanding anything contained in this Act, the electoral roll for the time being in force for](http://indiankanoon.org/doc/1255711/) the election of Members of the Manipur Legistive Assembly, so far as it relates to the area comprised in the municipal area, may be adopted as the electoral roll for that municipal area for the purposes of preliminary publication. **[220. Conditions for registration as a voter.—(1) Every person who—](http://indiankanoon.org/doc/1731714/)** [(a) is not less than 18 years of age on the qualifying date, and](http://indiankanoon.org/doc/1301564/) [(b) is ordinarily resident in a municipal area,](http://indiankanoon.org/doc/1206598/) shall be entitled to be registered in the electoral roll for that municipal area. [(2) No person shall be entitled to be registered in the electoral roll for any municipal area in more](http://indiankanoon.org/doc/646881/) than one place. [(3) No person shall be entitled to be registered in the electoral roll for any municipal area if his name](http://indiankanoon.org/doc/1062553/) has already been registered as a voter in the electoral roll of any other local authority. _Explanation I.—The expression “qualifying date” shall mean such date as the Government may by_ notification specify for the purposes of this Act. _Explanation II.—The expression “ordinarily resident” shall have the same meaning as assigned to it_ in section 20 of the Representation of the People Act, 1950 (43 of 1950). **[221. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this](http://indiankanoon.org/doc/1074930/)** Act, the Government may, by order do anything not inconsistent with the provisions thereof which appears to it to be necessary or expedient for the purpose of removing the difficulty. **[222. Overriding effect of the provisions of the Act.—The provisions of this Act, rules and](http://indiankanoon.org/doc/212400/)** bye-laws, and orders made and directions issued thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. **[223. Mode of proof of municipal record and fee for certified copy.—(1) A copy of any receipt,](http://indiankanoon.org/doc/185049/)** application, plan, notice, order, entry in a register or other document in the possession of a Nagar Panchayat or a Council, shall, if duly certified by any person authorised by any bye-law in this behalf, be received as evidence of the existence of any entry or document and shall be admitted as evidence of the matters and transactions therein recorded in every case, where and to the same extent as, the original entry or document would, if produced, have been admissible to prove such matters. [(2) For the issue of such copies the Nagar Panchayat or as the case may be, the Council may impose](http://indiankanoon.org/doc/1578754/) such fees as may be fixed by any bye-law in this behalf. **[224. Restriction on the summoning of municipal servants to produce documents.—No municipal](http://indiankanoon.org/doc/1264745/)** officer or servant shall in any legal proceeding to which a Nagar Panchayat or a Council is not a party be required to produce any register or document the contents of which can be proved by a certified copy, or to appear as a witness to prove the matters and transaction recorded therein unless by order of the court made for a special cause. **[225. Penalty for violating the provision of this Act.—If any person violates any of the provisions of](http://indiankanoon.org/doc/995306/)** this Act for which a penalty is not already provided under this Act, he shall be liable to a fine not exceeding rupees five hundred for each day in the case of continuing violation. **[226. Public servants.—Every Councillor and every officer or servant of the Nagar Panchayat or the](http://indiankanoon.org/doc/1050117/)** Council and every contractor or agent appointed by it for the collection of any tax or every person employed by such contractor or agent for collection of such tax shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **[227. District Planning Committee.—(1) The District Planning Committee constituted under section](http://indiankanoon.org/doc/735532/)** 96 of the Manipur Panchayati Raj Act, 1994 (26 of 1994) shall also be the District Planning Committee for the purposes of this Act. ----- [(2) The District Planning Committee shall consist—](http://indiankanoon.org/doc/441923/) [(a) members of House of the People who represent the whole or part of the district;](http://indiankanoon.org/doc/1433974/) [(b) all the members of the State Legislative Assembly whose constituencies lie within the district;](http://indiankanoon.org/doc/1504847/) [(c) Adhyaksha of the Zilla Parishad;](http://indiankanoon.org/doc/1079317/) [(d) Mayor or the President of the Municipal Corpoaration or the Municipal Council respectively,](http://indiankanoon.org/doc/1074401/) having jurisdiction over the headquarters of the District; and _Explanation—For the purposes of this clause, “Mayor or the President” shall mean the_ Chairperson of the Municipal Council or, as the case may be, of the Municipal Corporation; [(e) such number of persons not less than four-fifth of the total number of members of the](http://indiankanoon.org/doc/1547504/) Committee as may be specified by the Government elected in the prescribed manner from amongst the members of the Zilla Parishad, Nagar Panchayat and Councillors of the Municipal Corporation and the Municipal Councils in the district, in proportion to the ratio between the population of the rural areas and of the urban areas in the district. [(3) The Chairman of the District Co-operative Banks and of the Development Bank shall be](http://indiankanoon.org/doc/1547394/) permanent invitees of the Committee. [(4) The Chief Executive Officers shall be the Secretary of the Committee.](http://indiankanoon.org/doc/603406/) [(5) The Deputy Commissioner for the Districts shall be the Chairman District Planning Committee.](http://indiankanoon.org/doc/1282991/) [(6) The District Planning Committee shall consolidate the plans prepared by the Zilla Parishad, Gram](http://indiankanoon.org/doc/1994934/) Panchayat, Nagar Panchayat, Municipal Council and the Municipal Corporation in the district and prepare a draft development plan for the district as a whole. [(7) Every District Planning Committee shall in preparing the draft development plan—](http://indiankanoon.org/doc/1735879/) [(a) have regard to—](http://indiankanoon.org/doc/919344/) [(i) the matters of common interest between the Zilla Parishad, Gram Panchayats, Nagar](http://indiankanoon.org/doc/528563/) Panchayats, Municipal Corporation and Municipal Councils in the district including spatial planning sharing of water and other physical and natural resource, the integrated development of infrastructure and environmental conservation, [(ii) the extent and type of available resources whether financial or otherwise;](http://indiankanoon.org/doc/1923951/) [(b) consult such institutions and organisations as the Government may by order specify.](http://indiankanoon.org/doc/1092601/) [(8) The Chairman of every District Planning Committee shall forward the development plan, as](http://indiankanoon.org/doc/887531/) recommended by such Committee to the Government. **[228. Committee for Metropolitan Planning.—(1) The Governor may by notification notify an area](http://indiankanoon.org/doc/419160/)** having a population of ten lakh or more comprised in one or more districts and consisting of two or more municipalities or panchayats or other contiguous areas, to be a Metropolitan area for the purposes of this Act. [(2) On such notification the Government shall constitute in every Metropolitan area a Metropolitan](http://indiankanoon.org/doc/1314544/) Planning Committee to prepare a draft development plan for the Metropolitan area as a whole. [(3) The Government may prescribe by notification with respect to—](http://indiankanoon.org/doc/1394726/) [(a) the manner in which the seats in such Committee shall be filled:](http://indiankanoon.org/doc/688723/) Provided that not less than two-thirds of the members of such Committee shall be elected by, and from amongst, the elected members of the municipalities and Chairpersons of the Panchayats in the Metropolitan area in proportion to the ratio between the population of the municipalities and of the Panchayats in that area; [(b) the representation in such Committee of the Government of India and the Government and of](http://indiankanoon.org/doc/1045836/) such organisations and institutions as may be deemed necessary for carrying out the functions assigned to such Committee; ----- [(c) the functions relating to planning and co-ordination for the Metropolitan area which may be](http://indiankanoon.org/doc/1915020/) assigned to such Committee; [(d) the manner in which the Chairperson of such Committee shall be chosen.](http://indiankanoon.org/doc/539015/) [(4) Every Metropolitan Planning Committee shall, in preparing the draft development plan—](http://indiankanoon.org/doc/179419/) [(a) have regard to—](http://indiankanoon.org/doc/326003/) [(i) the plans prepared by the municipalities and the Panchayats in the Metropolitan area;](http://indiankanoon.org/doc/1162637/) [(ii) matters of common interest between the municipalities and the Panchayats, including](http://indiankanoon.org/doc/72343/) coordinated spatial planning of the area, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation; [(iii) the overall objectives and priorities set by the Government of India and the Government;](http://indiankanoon.org/doc/1924479/) [(iv) the extent and nature of investments likely to be made in the Metropolitan area by](http://indiankanoon.org/doc/548631/) agencies of the Government of India and Government, and other available resources whether financial or otherwise; [(b) consult such institutions and organisations as the Governor may, by order, specify.](http://indiankanoon.org/doc/975791/) [(5) The Chairperson of every Metropolitan Planning Committee shall forward the development plan,](http://indiankanoon.org/doc/1701787/) as recommended by such Committee, to the Government. **[229. Delegation of powers of State Government.—The State Government may, by notification](http://indiankanoon.org/doc/1102636/)** delegate to any officer or authority subordinate to it any of the powers conferred on it or on any officer subordinate to it by this Act, other than powers to make rules, to be exercised, subject to such restrictions and conditions as may be specified in the said notification. **[230. Repeal of Manipur Act 26 of 1976 and saving.—(1) On the date of the commencement of this](http://indiankanoon.org/doc/667744/)** Act, the Manipur Municipalities Act, 1976 shall be deemed to have been repealed: Provided that the said repeal shall not affect: [(a) the validity, effect or consequence of anything done or suffered under the said enactment;](http://indiankanoon.org/doc/1658873/) [(b) any right, title, obligation or liability already acquired, accrued or incurred under the said](http://indiankanoon.org/doc/1685083/) enactment or any remedy or proceeding in respect thereof; [(c) any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or](http://indiankanoon.org/doc/492772/) any indemnity already granted; [(d) any investigation, legal proceeding or remedy in respect of any such right, privilege,](http://indiankanoon.org/doc/286992/) obligation, liability, penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted or enforced and any such penalty, forfeiture or punishment may be imposed as if such enactment or part thereof had not been repealed; and [(e) the operation of the said enactment in relation to areas falling within the Municipal limits of](http://indiankanoon.org/doc/1376301/) Moreh. [(2) Notwithstanding anything contained in sub-section (1), all municipalities declared, limits defined,](http://indiankanoon.org/doc/368783/) regulations and divisions made, all rules and bye-laws, notifications, orders, appointments and assessments made, licences and notices, issued, taxes, tolls, rates and fees imposed or assessed, budgets passed, plans approved, permissions or sanctions granted, contracts entered into, suits instituted and proceedings taken under the Manipur Municipal Act, 1976 (Manipur Act 26 of 1976 ) in force immediately before the commencement of this Act shall continue to be in force and shall be deemed to have been respectively made, issued, imposed or assessed, passed, approved, granted, entered into, instituted and taken under this Act until new provisions are made or superseded by anything done or any action taken under this Act. **[231. Repeal and saving.—(1) The Manipur Municipalities Ordinance, 1994 (Ord. 6 of 1994) is](http://indiankanoon.org/doc/1332223/)** hereby repealed. [(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be](http://indiankanoon.org/doc/294677/) deemed to have been done or taken under the corresponding provisions of this Act. ----- THE SCHEDULE (See section 36) 1. Urban Planning including Town Planning. 2. Regulation of land use and construction of buildings. 3. Planning for economic and social development. 4. Roads and Bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public Health, Sanitation, Conservancy and Solid Waste Management. 7. Fire Services. 8. Urban Forestry, Protection of the Environment and Promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities, such as parks, gardens and playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial-grounds; cremations, cremation-grounds and electric crematoriums. 15. Cattle pounds, prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. -----
14-Jul-1994
44
The New Delhi Municipal Council Act, 1994
https://www.indiacode.nic.in/bitstream/123456789/1986/1/199444.pdf
central
# THE NEW DELHI MUNICIPAL COUNCIL ACT, 1994 ____________ ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II THE COUNCIL _Constitution of the Council_ 3. Establishment of the Council. 4. Composition of the Council. 5. Duration of the Council. 6. Disqualification for membership of the Council. _Members_ 7. Oath or affirmation. 8. Vacation of seat. _Committees of the Council_ 9. Setting-up of committees. CHAPTER III FUNCTIONS OF THE COUNCIL 10. General powers of the Council. 11. Obligatory functions of the Council. 12. Discretionary functions of the Council. CHAPTER IV THE CHAIRPERSON 13. Appointment, etc., of the Chairperson. 14. Leave of absence of Chairperson. 15. Appointment of officiating Chairperson in case of death, resignation or removal of Chairperson. 16. Salary and allowances of the Chairperson and members. 17. Service regulations of members. 18. Functions of the Chairperson. 19. Chairperson not to be interested in any contract, etc., with the Council. 20. Exercise of powers to be subject to sanction. CHAPTER V PROCEDURE _Transaction of business by the Council_ 21. Meetings. 22. First meeting of the Council. 23. Notice of meetings and business. 24. Quorum. 25. Presiding Officer. 26. Method of deciding questions. ----- SECTIONS 27. Members not to vote on matter in which they are interested. 28. Right to attend meetings of Council and its committees, etc., and right of members to ask questions in relation to the municipal government of New Delhi. 29. Keeping of minutes and proceedings. 30. Circulation of minutes and inspection of minutes and reports of proceedings. 31. Forwarding minutes and reports of proceedings to the Administrator. _Validation_ 32. Validation of proceedings, etc. CHAPTER VI MUNICIPAL OFFICERS AND OTHER MUNICIPAL EMPLOYEES 33. Appointment of certain officers. 34. Schedule of permanent posts and creation of temporary posts. 35. Restriction on employment of permanent officers and other employees. 36. Power to make appointments. 37. Officers and other employees not to undertake any extraneous work. 38. Officers and other employees not to be interested in any contract, etc., with the Council. 39. Punishment for municipal officers and other employees. 40. Consultation with the Union Public Service Commission. 41. Power of Commission to make regulations and reference to the Central Government in case of difference between the Commission and the Council. 42. Recruitment to category B and category C posts. 43. Power of Council to make regulations. CHAPTER VII REVENUE AND EXPENDITURE _The New Delhi Municipal Fund_ 44. Constitution of the New Delhi Municipal Fund. 45. New Delhi Municipal Fund to be kept in the State Bank of India. 46. Operation of the Accounts. 47. Payments not to be made unless covered by a budget-grant. 48. Duty of persons signing cheques. 49. Procedure when money not covered by a budget-grant is expended. 50. Application of New Delhi Municipal Fund. 51. Temporary payments from the New Delhi Municipal Fund for works urgently required for the public service. 52. Investment of surplus moneys. 53. Constitution of Finance Commission. _Special Funds_ 54. Constitution of special funds. _Budget estimates_ 55. Adoption of budget estimates. 56. Power of Council to alter budget estimates. 57. Power of Council to re-adjust income and expenditure during the year. ACCOUNTS AND AUDIT _Scrutiny and audit of accounts_ 58. Accounts to be kept. 59. Audit. ----- CHAPTER VIII TAXATION _Levy of taxes_ SECTIONS 60. Taxes to be imposed by the Council under this Act. _Property tax_ 61. Rates of property tax. 62. Premises in respect of which property tax is to be levied. 63. Determination of rateable value of lands and buildings assessable to property tax. 64. Charge for supply of water. 65. Taxation of Union properties. 66. Incidence of property tax. 67. Apportionment of liability for property tax when the premises are let or sub-let. 68. Recovery of property tax from occupiers. 69. Property tax a first charge on premises on which it is assessed. 70. Assessment list. 71. Evidential value of assessment list. 72. Amendment of assessment list. 73. Preparation of new assessment list. 74. Notice of transfers. 75. Notice of erection of building, etc. 76. Notice of demolition or removal of buildings. 77. Power of Chairperson to call for information and returns and to enter and inspect premises. 78. Premises owned by, or let to two or more persons in severalty to be ordinarily assessed as one property. 79. Assessment in case of amalgamation of premises. 80. Power of Chairperson to assess separately outhouses and portions of buildings. 81. Power of Chairperson to employ valuers. _Tax on vehicles and animals_ 82. Tax on certain vehicles and animals and rates thereof. 83. The tax on whom leviable. 84. Tax when payable. 85. Power of Chairperson to compound with livery stable keeper, etc., for tax. _Theatre-tax_ 86. Theatre-tax. 87. Liability to pay theatre-tax. _Tax on advertisements other than advertisements published in the newspapers_ 88. Tax on advertisements. 89. Prohibition of advertisements without written permission of the Chairperson. 90. Permission of the Chairperson to become void in certain cases. 91. Presumption in case of contravention. 92. Power of Chairperson in case of contravention. _Duty on transfer of property_ 93. Duty on transfer of property and method of assessment thereto. 94. Provisions applicable on the introduction of transfer duty. _Tax on buildings payable along with the application for sanction of building plans_ 95. Tax on building applications. _Other taxes_ 96. Imposition of other taxes. ----- SECTIONS 97. Supplementary taxation. _Supplementary taxation_ _Payment and recovery of taxes_ 98. Time and manner of payment of taxes. 99. Presentation of bill. 100. Notice of demand and notice fee. 101. Penalty in case of default of payment of taxes. 102. Recovery of tax. 103. Distress. 104. Disposal of distrained property and attachment and sale of immovable property. 105. Recovery from a person about to leave New Delhi or Delhi. 106. Power to institute suit for recovery. 107. Power of seizure of vehicles and animals in case of non-payment of tax thereon. 108. Occupiers may be required to pay rent towards satisfaction of property tax. _Remission and refund_ 109. Demolition, etc., of buildings. 110. Remission or refund of tax. 111. Power to require entry in assessment list of details of buildings. 112. Notice to be given of the circumstances in which remission or refund is claimed. 113. What buildings are to be deemed vacant. 114. Notice to be given of every occupation of vacant land or building. _Appeals_ 115. Appeal against assessment, etc. 116. Conditions of right to appeal. 117. Condonation of delay in preferring the appeal. 118. Finality of appellate orders. _Miscellaneous provisions relating to taxation_ 119. Power to inspect for purposes of determining rateable value or tax. 120. Composition. 121. Irrecoverable debts. 122. Obligation to disclose liability. 123. Immaterial error not to affect liability. 124. General power of exemption. _Taxes on entertainment and betting_ 125. Payment of proceeds of entertainment and betting taxes to Council. CHAPTER IX BORROWING 126. Power of Council to borrow. 127. Time for repayment of money borrowed under section 126. 128. Form and effect of debenture. 129. Payment to survivors of joint payees. 130. Receipt by joint holders for interest or dividend. 131. Maintenance and investment of sinking funds. 132. Application of sinking funds. 133. Annual statement by Chairperson. 134. Power of Council to consolidate loans. 135. Priority of payment for interest and repayment of loans over other payments. 136. Power to make regulations. ----- CHAPTER X PROPERTY AND CONTRACTS _Property_ SECTIONS 137. Acquisition of property. 138. Acquisition of immovable property by agreement. 139. Procedure when immovable property cannot be acquired by agreement. 140. Disposal of movable property. 141. Disposal of immovable property. _Contracts_ 142. Contracts by the Council. 143. Procedure for making contracts. 144. Mode of executing contracts. CHAPTER XI WATER SUPPLY, DRAINAGE AND SEWAGE COLLECTION _General_ 145. Definitions. 146. Council may carry out surveys and formulate proposals. _Water supply_ 147. Functions in relation to water supplies. 148. Water supplied for domestic purposes not to be used for non-domestic purposes. 149. Supply of water for domestic purposes not to include any supply for certain specified purposes. 150. Power to supply water for non-domestic purposes. 151. Use of water for extinguishing fire. 152. Power to require water supply to be taken. 153. New premises not to be occupied without arrangement for water supply. 154. Public gratuitous water supply. 155. Power to lay mains. 156. Power to lay service pipes, etc. 157. Provision of fire hydrants. 158. Supply of water. 159. Laying of supply pipes, etc. 160. Power to require separate service pipes. 161. Stopcocks. 162. Power of Chairperson to provide meters. 163. Presumption as to correctness of meters. 164. Prohibition of waste or misuse of water. 165. Power to enter premises to detect waste or misuse of water. 166. Power to test water fittings. 167. Power to close or restrict use of water from polluted source of supply. 168. Water pipes, etc., not to be placed where water will be polluted. 169. Power to cut off private water supply or to turn off water. 170. Joint and several liability of owners and occupiers for offence in relation to water supply. _Drainage and sewerage_ 171. Public drains, etc., to vest in the Council. 172. Control of drains and sewage collection works. 173. Certain matters not to be passed into municipal drains. 174. Application by owners and occupiers to drain into municipal drains. 175. Drainage of and drained premises. 176. New premises not to be erected without drains. ----- SECTIONS 177. Power to drain group or block of premises by combined operations. 178. Power of Chairperson to close or limit the use of private drains in certain cases. 179. Use of drain by a person other than the owner. 180. Sewage and rain water drains to be distinct. 181. Power of Chairperson to require owner to carry out certain works for satisfactory drainage. _Collection of sewage_ 182. Appointment of places for the emptying of drains and collection of sewage. _Miscellaneous_ 183. Connection with water works and drains not to be made without permission. 184. Building, railways and private streets not to be erected or constructed over drains or water works without permission. 185. Rights of user of property for aqueducts, lines, etc. 186. Power of owner of premises to place pipes and drains through land belonging to other persons. 187. Power to require railway level, etc., to be raised or lowered. 188. Power of Chairperson to execute work after giving notice to the person liable. 189. Power of Chairperson to affix shafts, etc., for ventilation of drain or cesspool. 190. Power of Chairperson to examine and test drains, etc., believed to be defective. 191. Bulk receipt of water and delivery of sewage by the Council. 192. Employment of Government agencies for repairs, etc. 193. Work to be done by licensed plumber. 194. Prohibition of certain acts. CHAPTER XII ELECTRICITY SUPPLY 195. Functions in relation to electricity supply. 196. Additional functions in relation to electricity supply. 197. Council to have powers and obligations of licensee under Act 9 of 1910. 198. Restriction on building and other acts interfering with the works of electric supply. 199. Power of Council to make arrangements with licensees. 200. Charges for supply of electricity. 201. Bulk receipt of electricity by the Council. CHAPTER XIII STREETS _Construction, maintenance and improvement of streets_ 202. Vesting of public streets in the Council. 203. Functions of Chairperson in respect of public streets. 204. Disposal of land forming site of public streets permanently closed. 205. Power to make new public streets. 206. Minimum width of new public streets. 207. Power to prohibit or regulate use of public streets for certain kind of traffic. 208. Power to acquire lands and buildings for public streets and for public parking places. 209. Defining the regular line of streets. 210. Setting back building to regular line of street. 211. Compulsory setting back of building to regular line of street. 212. Acquisition of open land and land occupied by platform, etc., within the regular line of street. 213. Acquisition of the remaining part of a building and land after their portions within a regular line of street have been acquired. 214. Setting forward of buildings to the regular line of street. 215. Compensation to be paid in certain cases of setting back or setting forward of buildings, etc. ----- _Private streets_ SECTIONS 216. Owner‟s obligation when dealing with land as building sites. 217. Lay-out plans. 218. Alteration or demolition of street made in breach of section 217. 219. Power of Chairperson to order work to be carried out or to carry it out himself in default. 220. Right of owner to require streets to be declared public. _Encroachments on streets_ 221. Prohibition of projections upon streets, etc. 222. Projections over streets may be permitted in certain cases. 223. Ground floor doors, etc., not to open outwards on streets. 224. Prohibition of structures or fixtures which cause obstruction in street. 225. Prohibition of deposit, etc., of things in streets. 226. Power to remove anything deposited or exposed for sale in contravention of this Act. 227. Prohibition of the tethering of animals and milking of cattle. _Provision concerning execution of works in or near to streets_ 228. Precautions during repair of streets. 229. Streets not to be opened or broken up and building materials not to be deposited thereon without permission. 230. Disposal of things removed under this Chapter. _Naming and numbering of streets and numbering of buildings_ 231. Naming and numbering of streets. _Repair or enclosure of dangerous places_ 232. Chairperson to take steps for repairing or enclosing dangerous places. _Lighting of streets_ 233. Measures for lighting. 234. Prohibition of removal, etc., of lamps. CHAPTER XIV BUILDING REGULATIONS 235. General superintendence, etc., of the Central Government. 236. Definition. 237. Prohibition of building without sanction. 238. Erection of building. 239. Applications for additions to, or repairs of, buildings. 240. Conditions of valid notice. 241. Sanction or refusal of building or work. 242. When building or work may be proceeded with. 243. Sanction accorded under misrepresentation. 244. Buildings at corners of streets. 245. Provisions as to buildings and works on either side of new streets. 246. Period for completion of building or work. 247. Order of demolition and stoppage of buildings or works in certain cases and appeal. 248. Order of stoppage of buildings or works in certain cases. 249. Power of Chairperson to require alteration of work. 250. Power to seal unauthorised constructions. 251. Completion certificates. 252. Restrictions on uses of buildings. 253. Appellate Tribunal. 254. Appeals against certain orders or notices issued under the Act. ----- SECTIONS 255. Procedure of the Appellate Tribunal. 256. Appeal against orders of Appellate Tribunal. 257. Bar of jurisdiction of courts. 258. Removal of dangerous buildings. 259. Power to order building to be vacated in certain circumstances. 260. Power of the Central Government to make bye-laws. CHAPTER XV SANITATION AND PUBLIC HEALTH _Conservancy and sanitation_ 261. Provision for daily cleansing of streets and removal of rubbish and filth. 262. Rubbish, etc., to be the property of the Council. 263. Provision or appointment of receptacles, depots and places for rubbish, etc. 264. Duty of owners and occupiers to collect and deposit rubbish, etc. 265. Collection and removal of filth and polluted matter. 266. Removal of rubbish, etc., accumulated on premises used as factories, workshop, etc. 267. Prohibition against accumulation of rubbish, etc. 268. Prohibition in respect of air pollutant. 269. Chairperson‟s power to get premises scavenged and cleansed. 270. Public latrines, urinals, etc. _Latrines and urinals_ 271. Construction of latrines and urinals. 272. Latrines and urinals, etc., in new buildings. 273. Latrines and urinals for labourers, etc. 274. Provision of latrines and urinals for markets, etc. 275. Other provisions as to private latrines. _Removal of congested buildings and buildings unfit for human habitation_ 276. Removal of congested buildings. 277. Power of Chairperson to require improvement of building unfit for human habitation. 278. Enforcement of notice requiring execution of works of improvement. 279. Power of Chairperson to order demolition of buildings unfit for human habitation. 280. Insanitary huts and sheds. _Regulation of washing by washermen_ 281. Prohibition against washing by washerman. _Prevention of Dangerous Diseases_ 282. Obligation to give information of dangerous disease. 283. Removal to hospital of patients, suffering from dangerous disease. 284. Disinfection of buildings and articles. 285. Destruction of infectious huts or sheds. 286. Means of disinfection. 287. Special measures in case of outbreak of dangerous or epidemic diseases. 288. Infected clothes not to be sent to washerman or to laundry. 289. Contamination and disinfection of public conveyance. 290. Driver of conveyance not bound to carry persons suffering from dangerous disease. 291. Disinfection of buildings before letting the same. 292. Disposal of infected articles without disinfection. 293. Prohibition of making or selling of food, etc., or washing of clothes by infected persons. 294. Power to restrict or prohibit sale of food or drink. 295. Control over wells and tanks, etc. 296. Duty of persons suffering from dangerous disease. ----- SECTIONS 297. Disposal of infectious corpses where any person has died from any dangerous disease. _Special conditions regarding essential services_ 298. Conditions of service of sweepers and certain other class of persons employed in municipal service. 299. Conditions of service of sweepers employed for doing house scavenging. _Burning and burial grounds_ 300. Power to call for information regarding burning and burial grounds. 301. Permission for use of new burning or burial ground. 302. Power to require closing of burning and burial grounds. 303. Removal of corpses. _Disposal of dead animals_ 304. Disposal of dead animals. CHAPTER XVI VITAL STATISTICS 305. Appointment of Chief Registrar, etc. 306. Duties of registrar. 307. Information of births and deaths. CHAPTER XVII PUBLIC SAFETY AND SUPPRESSION OF NUISANCES _Nuisances_ 308. Prohibition of nuisances. 309. Power of Chairperson to require removal or abatement of nuisance. _Dogs_ 310. Registration and control of dogs. _Prevention of fire, etc._ 311. Stacking or collecting inflammable materials. 312. Care of naked lights. 313. Discharging fire works, fire-arms, etc. 314. Power to require buildings, wells, etc., to be rendered safe. 315. Enclosure of waste land used for improper purpose. CHAPTER XVIII MARKETS, TRADES AND OCCUPATIONS _Maintenance and regulation of markets_ 316. Provision of municipal market. 317. Use of municipal markets and slaughter house. 318. Private markets. 319. Conditions of grant of licence for private market. 320. Prohibition of keeping market open without licence, etc. 321. Prohibition of use of unlicensed markets. 322. Prohibition of business and trade near a market. 323. Levy of stallages, rents and fees. 324. Power to expel disturbers, etc., from markets. 325. Butcher‟s fish-monger‟s and poulter‟s licence. _Trades and occupations_ 326. Factory, etc., not to be established without permission of the Chairperson. ----- SECTIONS 327. Premises not to be used for certain purposes without licence. 328. Seizure of certain animals. 329. Power of Chairperson to prevent use of premises in particular areas for purposes referred to in section 327. 330. Licences for hawking articles, etc. 331. Eating houses, etc., not to be used without licence from the Chairperson. 332. Licensing and control of theatres, circuses and places of public amusement. 333. Power of Chairperson to stop use of premises used in contravention of licences. CHAPTER XIX IMPROVEMENT 334. Improvement scheme. 335. Matters to be provided for in an improvement scheme. 336. Submission of improvement scheme to the Council for approval and to the Central Government for sanction. 337. Rehousing scheme. 338. Improvement scheme and rehousing scheme to comply with the master plan and zonal development plan. CHAPTER XX POWERS, PROCEDURE, OFFENCES AND PENALTIES _Licences and written permissions_ 339. Signature, conditions, duration, suspension, revocation, etc., of licences and written permissions. _Entry and inspection_ 340. Powers of entry and inspection. 341. Power to enter land adjoining land in relation to any work. 342. Breaking into building. 343. Time of making entry. 344. Consent ordinarily to be obtained. 345. Regard to be had to social or religious usages. 346. Prohibition of obstruction or molestation in execution of work. _Public notices and advertisements_ 347. Public notices how to be made known. 348. Newspapers in which advertisements or notices to be published. _Evidence_ 349. Proof of consent, etc., of Chairperson. _Notices, etc._ 350. Notices, etc., to fix reasonable time. 351. Signature on notices, etc., may be stamped. 352. Notices, etc., by whom to be served or issued. 353. Services of notices, etc. 354. Service of bills for tax or notice of demand by ordinary post. 355. Powers in case of non-compliance with notice, etc. _Recovery of expenses_ 356. Liability of occupier to pay in default of owner. 357. Execution of work by occupier in default of owner and deduction of expenses from rent. 358. Relief to agents and trustees. ----- _Payment of compensation_ SECTIONS 359. General power to compensation. 360. Compensation to be paid by offenders for damage caused by them. _Recovery of expenses or compensation in case of dispute_ 361. Reference to the court of the district judge in certain cases. 362. Application to the court of the district judge in other cases. _Recovery of certain dues_ 363. Mode of recovery of certain dues. _Obstruction of owner by occupier_ 364. Right of owner to apply to the court of the district judge in case of obstruction by occupier. _Proceedings before the court of the district judge_ 365. General powers and procedure of the court of the district judge. 366. Fees in proceedings before the court of the district judge. 367. Repayment of half fees on settlement before hearing. 368. Power of the court of the district judge to delegate certain powers and to make rules. _Offences and penalties_ 369. Punishment for certain offences. 370. General penalty. 371. Offences by companies. 372. Certain offences to be cognizable. 373. Prosecutions. 374. Composition of offences. _Magistrates and proceedings before magistrates_ 375. Municipal magistrates. 376. Cognizance of offences. 377. Limitation of time for prosecution. 378. Power of magistrate to hear cases in absence of accused when summoned to appear. 379. Complaints concerning nuisances. 380. Procedure to be followed by magistrate regarding complaints concerning nuisances. _Powers and duties of police officers_ 381. Arrest of offenders. 382. Duties of police officers. _Legal proceedings_ 383. Power to institute, etc., legal proceedings and obtain legal advice. 384. Protection of action of the Council, etc. 385. Notice to be given of suits. CHAPTER XXI RULES, REGULATIONS AND BYE-LAWS 386. Supplemental provisions respecting rules. 387. Supplemental provisions respecting regulations. 388. Power to make bye-laws. 389. Regulations and bye-laws to be laid before Parliament. 390. Penalty for breaches of bye-laws. 391. Supplemental provisions respecting bye-laws. 392. Bye-laws to be available for inspection and purchase. ----- CHAPTER XXII CONTROL SECTIONS 393. Government to require production of documents. 394. Inspection. 395. Directions by Central Government. 396. Power to provide for enforcement of direction under section 395. 397. Power of Central Government to give directions in relation to primary schools, etc. 398. Dissolution of the Council. CHAPTER XXIII MISCELLANEOUS 399. Delegation of power by the Central Government. 400. Power to delegate functions of Chairperson. 401. Validity of notices and other documents. 402. Admissibility of document or entry as evidence. 403. Evidence of Municipal officer or employee. 404. Prohibition against obstruction of any municipal authority. 405. Prohibition against removal of mark. 406. Prohibition against removal or obliteration of notice. 407. Prohibition against unauthorised dealings with public place or materials. 408. Liability of Chairperson, etc., for loss, waste or misapplication of New Delhi Municipal Fund or property. 409. Members and municipal officers and employees to be public servants. 410. Annual administration report. 411. Other laws not to be disregarded. 412. Exemption of diplomatic or consular missions from payment of tax, etc. 413. Construction of references. 414. Council to undertake work on agency basis. 415. Power to remove difficulties. 416. Repeal and savings. 417. Expenditure in connection with the Council from the commencement of this Act to the adoption of the budget by the Council. 418. Transitory provision. 419. Repeal of Ordinance 8 of 1994. THE FIRST SCHEDULE.—BOUNDARIES OF NEW DELHI. THE SECOND SCHEDULE.—RATES OF TAXES LEVIABLE ON VEHICLES AND ANIMALS. THE THIRD SCHEDULE.—THEATRE-TAX. THE FOURTH SCHEDULE.—TAX ON ADVERTISEMENTS OTHER THAN ADVERTISEMENTS PUBLISHED IN THE NEWSPAPERS. THE FIFTH SCHEDULE.—TAX ON BUILDING APPLICATIONS. THE SIXTH SCHEDULE.—NOTICE OF DEMAND. THE SEVENTH SCHEDULE.—FORM OF WARRANT. THE EIGHTH SCEHDULE.—FORM OF INVENTORY OF PROPERTY DISTRAINED AND NOTICE OF SALE. THE NINTH SCHEDULE.—PURPOSES FOR WHICH PREMISES MAY NOT BE USED WITHOUT A LICENCE. THE TENTH SCHEDULE.—PENALTIES. ----- # THE NEW DELHI MUNICIPAL COUNCIL ACT, 1994 ACT NO. 44 OF 1994 [14th July, 1994.] # An Act to provide for the establishment of the New Delhi Municipal Council and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **[1. Short title, extent and commencement.—(1) This Act may be called the New Delhi Municipal](http://indiankanoon.org/doc/1762093/)** Council Act, 1994. [(2) It extends to New Delhi.](http://indiankanoon.org/doc/976540/) [(3) It shall be deemed to have come into force on the 25th day of May, 1994.](http://indiankanoon.org/doc/658750/) **[2. Definitions.—In this Act, unless the context otherwise requires,—](http://indiankanoon.org/doc/1613846/)** [(1) “Administrator” means the Administrator of the National Capital Territory of Delhi;](http://indiankanoon.org/doc/1981534/) [(2) “Appellate Tribunal” means an Appellate Tribunal constituted under section 253;](http://indiankanoon.org/doc/1054156/) [(3) “budget-grant” means the total sum entered on the expenditure side of a budget estimate under](http://indiankanoon.org/doc/574102/) a major head and adopted by the Council and includes any sum by which such budget-grant may be increased or reduced by transfer from or to other heads in accordance with the provisions of this Act and the regulations made thereunder; [(4) “building” means a house, out-house, stable, latrine, urinal, shed, hut, wall (other than a](http://indiankanoon.org/doc/14318/) boundary wall) or any other structure, whether of masonry, bricks, wood, mud, metal or other material but does not include any portable shelter; [(5) “bye-law” means a bye-law made under this Act, by notification in the Official Gazette;](http://indiankanoon.org/doc/1619994/) [(6) “casual vacancy” means a vacancy occurring otherwise than by efflux of time in the office of](http://indiankanoon.org/doc/325587/) a member of the Council; [(7) “Chairperson” means the Chairperson of the Council;](http://indiankanoon.org/doc/1416979/) [(8) “Corporation” means the Municipal Corporation of Delhi established under the Delhi](http://indiankanoon.org/doc/560127/) Municipal Corporation Act, 1957 (66 of 1957); [(9) “Council” means the New Delhi Municipal Council established under this Act;](http://indiankanoon.org/doc/277071/) [(10) “dangerous disease” means—](http://indiankanoon.org/doc/1309100/) [(a) cholera,](http://indiankanoon.org/doc/854922/) plague, chicken-pox, small-pox, tuberculosis, leprosy, enteric fever, cerebrospinal meningitis and diptheria; and [(b) any other epidemic, endemic or infectious disease which the Chairperson may, by](http://indiankanoon.org/doc/649888/) notification in the Official Gazette, declare to be a dangerous disease for the purposes of this Act; [(11) “Delhi” means the entire area of the National Capital Territory of Delhi except New Delhi](http://indiankanoon.org/doc/1757154/) and Delhi Cantonment as defined in clause (11) of section 2 of the Delhi Municipal Corporation Act, 1957 (66 of 1957); [(12) “drain” includes a sewer, a house drain, a drain of any other description, a tunnel, a culvert, a](http://indiankanoon.org/doc/1132563/) ditch, a channel and any other device for carrying off sewage, offensive matter, polluted water, waste water, rain water or sub-soil water; [(13) “entertainment” includes any exhibition, performance, amusement, game or sport to which](http://indiankanoon.org/doc/278020/) persons are ordinarily admitted on payment; [(14) “factory” means a factory as defined in the Factories Act, 1948 (63 of 1948);](http://indiankanoon.org/doc/508499/) ----- [(15) “filth” includes offensive matter and sewage;](http://indiankanoon.org/doc/1324308/) [(16) “goods” includes animals;](http://indiankanoon.org/doc/1065659/) [(17) “Government” means the Government of the National Capital Territory of Delhi;](http://indiankanoon.org/doc/1028129/) [(18) “house-gully” means a passage or strip of land constructed, set apart or utilised for the](http://indiankanoon.org/doc/773455/) purpose of serving as or carrying a drain or affording access to a latrine, urinal, cesspool or other receptacle for filth or other polluted matter, by municipal employee or other person employed in the cleansing thereof or in the removal of such matter therefrom; [(19) “hut” means any building which is constructed principally of wood, bamboo, mud, leaves,](http://indiankanoon.org/doc/559317/) grass, cloth or thatch and includes any structure of whatever material made which the Council may declare to be a hut for the purposes of this Act; [(20) “inhabitant”, in relation to the municipal area of New Delhi includes any person ordinarily](http://indiankanoon.org/doc/1649015/) residing or carrying on business or owning or occupying immovable property therein and in case of a dispute, means any person or persons declared by the Chairperson to be an inhabitant; [(21) “land” includes benefits to arise out of land, things attached to the earth or permanently](http://indiankanoon.org/doc/861078/) fastened to anything attached to the earth and rights created by law over any street; [(22) “licensed engineer” and “licensed plumber” mean respectively a person licensed under the](http://indiankanoon.org/doc/1705054/) provisions of this Act as an engineer and a plumber; [(23) “market” includes any place where persons assemble for the sale of, or for the purpose of](http://indiankanoon.org/doc/183193/) exposing for sale, meat, fish, fruits, vegetables, animals intended for human consumption or any other articles of human food whatsoever, with or without the consent of the owner of such place notwithstanding that there may be no common regulation for the concourse of buyers and sellers and whether or not any control is exercised over the business of, or the person frequenting, the market by the owner of the place or by any other person; [(24) “member”, in relation to the Council, means a member of the Council and includes the](http://indiankanoon.org/doc/834635/) Chairperson; [(25) “municipal market” means a market vested in or managed by the Council;](http://indiankanoon.org/doc/403261/) [(26) “municipal water works” means water works vested in the Council;](http://indiankanoon.org/doc/860112/) [(27) “New Delhi” means the area within the boundaries described in the First Schedule;](http://indiankanoon.org/doc/1893081/) [(28) “nuisance” includes any act, omission, place, animal or thing which causes or is likely to](http://indiankanoon.org/doc/974870/) cause injury, danger, annoyance or offence to the sense of sight, smell or hearing or disturbance to rest or sleep, or which is or may be dangerous to life or injurious to health or property; [(29) “occupier” includes—](http://indiankanoon.org/doc/1837032/) [(a) any person who for the time being is paying or is liable to pay to the owner the rent or any](http://indiankanoon.org/doc/1758662/) portion of the rent of the land or building in respect of which such rent is paid or is payable; [(b) an owner in occupation of or otherwise using his land or building;](http://indiankanoon.org/doc/83552/) [(c) a rent-free tenant of any land or building;](http://indiankanoon.org/doc/1757670/) [(d) a licensee in occupation of any land or building; and](http://indiankanoon.org/doc/713468/) [(e) any person who is liable to pay to the owner damages for the use and occupation of any](http://indiankanoon.org/doc/1450881/) land or building; [(30) “offensive matter” includes animal carcasses, kitchen or stable refuse, dung, dirt and putrid](http://indiankanoon.org/doc/168110/) or putrefying substances other than sewage; [(31) “Official Gazette” means the Official Gazette of the National Capital Territory of Delhi;](http://indiankanoon.org/doc/583562/) [(32) “owner” includes a person who for the time being is receiving or is entitled to receive, the](http://indiankanoon.org/doc/1603618/) rent of any land or building whether on his own account or on account of himself and others or as an agent, trustee, guardian or receiver for any other person or who should so receive the rent or be entitled to receive it if the land or building or part thereof were let to a tenant and also includes— [(a) the custodian of evacuee property in respect of evacuee property vested in him under the](http://indiankanoon.org/doc/961407/) Administration of Evacuee Property Act, 1950 (31 of 1950); and ----- [(b) the estate officer to the Government of India, the Secretary of the Delhi Development](http://indiankanoon.org/doc/666315/) Authority, constituted under the Delhi Development Act, 1957 (61 of 1957), the General Manager of a railway and the head of a Government department, in respect of properties under their respective control; [(33) “premises” means any land or building or part of a building and includes—](http://indiankanoon.org/doc/158603/) [(a) the garden, ground and out-houses, if any, appertaining to a building or part of a building;](http://indiankanoon.org/doc/1284093/) and [(b) any fittings affixed to a building or part of a building for the more beneficial enjoyment](http://indiankanoon.org/doc/1033815/) thereof; [(34) “prescribed” means prescribed by rules made under this Act;](http://indiankanoon.org/doc/1278650/) [(35) “private market” means a market which is not a municipal market;](http://indiankanoon.org/doc/513143/) [(36) “private street” means any street, which is not a public street and includes any passage](http://indiankanoon.org/doc/1749300/) securing access to two or more places belonging to the same or different owners; [(37) “public place” means any place which is open to the use and enjoyment of the public,](http://indiankanoon.org/doc/551550/) whether it is actually used or enjoyed by the public or not; [(38) “public securities” means any securities of the Central Government or a State Government or](http://indiankanoon.org/doc/1738558/) any securities guaranteed by the Central Government or a State Government or any securities issued under this Act or any debentures issued by the Bombay, Calcutta, Delhi or Madras Municipal Corporation; [(39) “public street” means any street which vests in the Council as a public street or the soil](http://indiankanoon.org/doc/1438844/) below the surface of which vests in the Council or which under the provisions of this Act becomes, or is declared to be, a public street; [(40) “railway administration” has the meaning assigned to it in the Railways Act, 1989](http://indiankanoon.org/doc/449367/) (24 of 1989); [(41) “rate payer” means a person liable to pay any rate, tax, cess or licence fee under this Act;](http://indiankanoon.org/doc/1490039/) [(42) “rateable value” means the value of any land or building fixed in accordance with the](http://indiankanoon.org/doc/289653/) provisions of this Act and the bye-laws made thereunder for the purpose of assessment to property taxes; [(43) “regulation” means a regulation made by the Council under this Act by notification in the](http://indiankanoon.org/doc/1360259/) Official Gazette; [(44) “reside”,—](http://indiankanoon.org/doc/849874/) [(a) a person shall be deemed to “reside” in any dwelling-house which or some portion of](http://indiankanoon.org/doc/217132/) which he sometimes, although not uninterruptedly, uses as a sleeping apartment, and [(b) a person shall not be deemed to cease to “reside” in any such dwelling-house merely](http://indiankanoon.org/doc/675700/) because he is absent from it or has elsewhere another dwelling-house in which he resides, if there is the liberty of returning to it at any time and no abandonment of the intention of returning to it; [(45) “rubbish” includes ashes, broken bricks, broken glass, dust, malba, mortar and refuse of any](http://indiankanoon.org/doc/103209/) kind which is not filth; [(46) “rule” means a rule made by the Central Government under this Act by notification in the](http://indiankanoon.org/doc/545185/) Official Gazette; [(47) “Scheduled Castes” means such castes, races or tribes or parts of or groups within such](http://indiankanoon.org/doc/96832/) castes, races or tribes as are deemed to be Scheduled Castes under article 341 of the Constitution; [(48) “service passage” or “lane” or “bye-lane” means a passage or strip of land constructed, set](http://indiankanoon.org/doc/1789894/) apart or utilised for the purpose of serving as or carrying a drain or electricity cable (underground or over-head) and any electrical and other allied installations or any other civic services by municipal employees or other person employed in the service thereof; ----- [(49) “sewage” means night-soil and other contents of latrines, urinals, cesspools or drains, and](http://indiankanoon.org/doc/458009/) polluted water from sinks, bath-rooms, stables, cattle sheds and other like places and includes trade effluents and discharges from factories of all kinds; [(50) “shed” means a slight or temporary structure for shade or shelter;](http://indiankanoon.org/doc/972936/) [(51) “street” includes any way, road, lane, square, court, alley, gully, passage, whether a](http://indiankanoon.org/doc/1985064/) thoroughfare or not and whether built upon or not, over which the public have a right of way and also the roadway or footway over any bridge or causeway; [(52) “trade effluent” means any liquid either with or without particles of matter in suspension](http://indiankanoon.org/doc/791941/) therein, which is wholly or in part produced in the course of any trade or industry carried on at trade premises, and in relation to any trade premises means any such liquid as aforesaid which is so produced in the course of any trade or industry carried on at those premises, but does not include domestic sewage; [(53) “trade premises” means any premises used or intended to be used for carrying on any trade](http://indiankanoon.org/doc/1510995/) or industry; [(54) “trade refuse” means the refuse of any trade or industry;](http://indiankanoon.org/doc/1175711/) [(55) “vehicle” includes a carriage, cart, van, dray, truck, hand-cart, bicycle, tricycle,](http://indiankanoon.org/doc/900641/) cycle-rickshaw, auto-rickshaw, motor vehicle and every wheeled conveyance which is used or is capable of being used on a street; [(56) “water course” includes any river, stream or channel whether natural or artificial;](http://indiankanoon.org/doc/1359594/) [(57) “water works” includes all lakes, tanks, streams, any river, cisterns, springs, pumps, wells,](http://indiankanoon.org/doc/1168507/) reservoirs, aqueducts, water trucks, sluices, mains, pipes, culverts, hydrants, stand-pipes and conduits and all lands, buildings, machinery bridges and things, used for, or intended for the purpose of, supplying water; [(58) “workshop” means any premises (including the precincts thereof) other than a factory,](http://indiankanoon.org/doc/1204753/) wherein any industrial process is carried on; [(59) “year” means a year commencing on the 1st day of April.](http://indiankanoon.org/doc/1667697/) CHAPTER II THE COUNCIL _Constitution of the Council_ **[3. Establishment of the Council.—(1) With effect from such date as the Central Government may,](http://indiankanoon.org/doc/375043/)** by notification in the Official Gazette, appoint, there shall be a Council charged with the municipal government of New Delhi, to be known as the New Delhi Municipal Council. [(2) The Council shall be a body corporate with the name aforesaid having perpetual succession and a](http://indiankanoon.org/doc/193406/) common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and may by the said name sue and be sued. **[4. Composition of the Council.—(1) The Council shall consist of the following members, namely:—](http://indiankanoon.org/doc/1472722/)** [(a) a Chairperson, from amongst the officers, of the Central Government or the Government, of](http://indiankanoon.org/doc/1117712/) or above the rank of Joint Secretary to the Government of India to be appointed by the Central Government in consultation with the Chief Minister of Delhi; [(b) [1][two members] of Legislative Assembly of Delhi representing constituencies which comprise](http://indiankanoon.org/doc/989886/) wholly or partly the New Delhi area; [(c) five members from amongst the officers of the Central Government or the Government or](http://indiankanoon.org/doc/126896/) their undertakings, to be nominated by the Central Government; and 1. Subs. by Act 5 of 2012, s. 2, for “three members” (w.e.f. 1-3-2012). ----- [(d) [1][four members] to be nominated by the Central Government in consultation with the Chief](http://indiankanoon.org/doc/1864265/) Minister of Delhi to represent from amongst lawyers, doctors, chartered accountants, engineers, business and financial consultants, intellectuals, traders, labourers, social workers including social scientists, artists, media persons, sports persons and any other class of persons as may be specified by the Central Government in this behalf; 2[(e) the Member of Parliament, representing constituency which comprises wholly or partly the New Delhi area.] 3* - - - 4[(3) Out of the thirteen members referred to in sub-section (1), there shall be, at least,— (a) three members who are women; (b) two members belonging to the Scheduled Castes, out of which one member shall be from the members nominated under clause (d) of sub-section (1).] [(4) The Central Government shall nominate, in consultation with the Chief Minister of Delhi, a](http://indiankanoon.org/doc/393528/) Vice-Chairperson from amongst the members specified in clauses (b) and (d) of sub-section (1). **[5. Duration of the Council.—(1) The Council, unless sooner dissolved under section 398 or any](http://indiankanoon.org/doc/1137063/)** other law for the time being in force, shall continue for five years from the date appointed for its first meeting and no longer. [(2) The Council,—](http://indiankanoon.org/doc/775220/) [(a) where it is dissolved before the expiry of its duration under sub-section (1), shall be](http://indiankanoon.org/doc/1619065/) reconstituted within a period of six months of such dissolution; and [(b) where it is dissolved after the expiry of its duration, shall be reconstituted before such expiry.](http://indiankanoon.org/doc/194759/) **[6. Disqualification for membership of the Council.—(1) No person, other than a member of the](http://indiankanoon.org/doc/1635203/)** Legislative Assembly of the National Capital Territory of Delhi, shall be disqualified for being nominated as a member of the Council on the ground that he holds an office of profit for purposes of election to the legislature of the National Capital Territory of Delhi under any law for the time being in force. [(2) If a person sits or votes as a member of the Council when he knows that he is not qualified or that](http://indiankanoon.org/doc/339187/) he is disqualified for such membership, he shall be liable in respect of each day on which he so sits or votes to a penalty of three hundred rupees to be recovered as an arrear of tax under this Act. _Members_ **[7. Oath or affirmation.—(1) Every member before taking his seat shall make and subscribe at a](http://indiankanoon.org/doc/209436/)** meeting of the Council an oath or affirmation according to the following form, namely:— “I, A. B., having been nominated as a member of Council do swear in the name of God/solemnly affirm that I will bear true faith and allegiance to the Constitution of India as by law established, that I will faithfully discharge the duty upon which I am about to enter.” [(2) If a person sits or votes as a member before he has complied with the requirements of](http://indiankanoon.org/doc/871653/) sub-section (1), he shall be liable in respect of each day on which he sits or votes as the case may be, to a penalty of three hundred rupees to be recovered as arrears of tax under this Act. **[8. Vacation of seat.—(1) If a member resigns his seat by writing under his hand addressed to the](http://indiankanoon.org/doc/377956/)** Chairperson and delivered to him, his seat shall thereupon become vacant. [(2) If during three successive months, a member is without permission of the Council, absent from all](http://indiankanoon.org/doc/317303/) the meetings thereof, the Council may recommend to the Central Government that the seat of such member may be declared vacant. 1. Subs. by Act 5 of 2012, s. 2, for “two members” (w.e.f. 1-3-2012). 2. Ins. by s. 2, ibid. (w.e.f. 1-3-2012). 3. Sub-section (2) omitted by s. 2, ibid. (w.e.f. 1-3-2012). 4. Subs. by s. 2, ibid., for sub-section (3) (w.e.f. 1-3-2012). ----- _Committees of the Council_ **[9. Setting-up of committees.—(1) The Council may constitute as many committees as it thinks fit for](http://indiankanoon.org/doc/1254493/)** the exercise of any power or discharge of any function which the Council may by resolution delegate to them or for inquiring into, reporting or advising upon any matter which the Council may refer to them. [(2) Any such committee shall consist of members of the Council only:](http://indiankanoon.org/doc/859250/) Provided that a committee may, with the sanction of the Council, co-opt not more than two persons who are not members of the Council, but who in the opinion of the Council possesses special qualifications for serving on such committee. [(3) Each committee constituted under this section shall be presided by the Chairperson of the Council.](http://indiankanoon.org/doc/1943681/) [(4) Any matter relating to a committee constituted under this section, not expressly provided in this](http://indiankanoon.org/doc/1382769/) Act may be provided by regulations made in this behalf. CHAPTER III FUNCTIONS OF THE COUNCIL **[10. General powers of the Council.—(1) Subject to the provisions of this Act and the rules,](http://indiankanoon.org/doc/428897/)** regulations and bye-laws made thereunder the municipal government of New Delhi shall vest in the Council. [(2) Without prejudice to the generality of the provisions of sub-section (1), it shall be the duty of the](http://indiankanoon.org/doc/648174/) Council to consider all periodical statements of the receipts and disbursements and all progress reports and pass such resolutions thereon as it thinks fit. [(3) The Council may at any time require the Chairperson—](http://indiankanoon.org/doc/734692/) [(a) to produce any record, correspondence, plan or other document which is in his possession or](http://indiankanoon.org/doc/1495114/) under his control as Chairperson or which is recorded or filed in his office or in the office of any municipal officer or other municipal employee subordinate to him; [(b) to furnish any return, plan, estimate, statement, account or statistics concerning or connected](http://indiankanoon.org/doc/1325355/) with any matter pertaining to the administration of this Act or the municipal government of New Delhi; [(c) to furnish a report by himself or to obtain from the head of any department subordinate to him](http://indiankanoon.org/doc/1207910/) and furnish with his own remarks thereon, a report, upon any subject concerning or connected with the administration of this Act or the municipal government of New Delhi. [(4) Every such requisition shall be complied with by the Chairperson without any unreasonable delay;](http://indiankanoon.org/doc/1158254/) and it shall be incumbent on every municipal officer and other municipal employee to obey any order made by the Chairperson in pursuance of any such requisition: Provided that the Chairperson shall not be bound to comply with any such requisition if with the previous approval of the Administrator he makes a statement that such compliance would be prejudicial to public interest or to the interests of the Council. **[11. Obligatory functions of the Council.—Subject to the provisions of this Act and any other law](http://indiankanoon.org/doc/768899/)** for the time being in force, it shall be incumbent on the Council to make adequate provisions by any means or measures which it may lawfully use or take, for each of the following matters, namely:— [(a) the construction, maintenance and cleansing of drains and drainage works and of public](http://indiankanoon.org/doc/1900554/) latrines, urinals and similar conveniences; [(b) the construction and maintenance of works and means for providing supply of water for](http://indiankanoon.org/doc/1935056/) public and private purposes; [(c) the scavenging, removal and disposal of filth, rubbish and other obnoxious or polluted](http://indiankanoon.org/doc/1862257/) matters; [(d) the construction or purchase, maintenance, extension, management for—](http://indiankanoon.org/doc/1599115/) [(i) supply and distribution of electricity to the public;](http://indiankanoon.org/doc/271778/) ----- [(ii) providing a sufficient supply of pure and wholesome water;](http://indiankanoon.org/doc/1365608/) [(e) the reclamation of unhealthy localities, the removal of noxious vegetation and generally the](http://indiankanoon.org/doc/1567353/) abatement of all nuisances; [(f) the regulation of places for the disposal of the dead and the provision and maintenance of](http://indiankanoon.org/doc/1435325/) places for the said purpose; [(g) the registration of births and deaths;](http://indiankanoon.org/doc/1846123/) [(h) public vaccination and inoculation;](http://indiankanoon.org/doc/1808785/) [(i) measures for preventing and checking the spread of dangerous diseases;](http://indiankanoon.org/doc/1129624/) [(j) the establishment and maintenance of hospitals, dispensaries and maternity and child welfare](http://indiankanoon.org/doc/626725/) centres and the carrying out of other measures necessary for public medical relief; [(k) the construction and maintenance of municipal markets and regulation of all markets;](http://indiankanoon.org/doc/579983/) [(l) the regulation and abatement of offensive or dangerous trade or practices;](http://indiankanoon.org/doc/396001/) [(m) the securing or removal of dangerous buildings and places;](http://indiankanoon.org/doc/564025/) [(n) the construction, maintenance, alteration and improvements of public streets, bridges,](http://indiankanoon.org/doc/349148/) culverts, causeways and the like; [(o) the lighting, watering and cleansing of public streets and other public places;](http://indiankanoon.org/doc/1627610/) [(p) the removal of obstructions and projections in or upon streets, bridges and other public places;](http://indiankanoon.org/doc/1223634/) [(q) the naming and numbering of streets and premises;](http://indiankanoon.org/doc/616849/) [(r) the establishment, maintenance of, and aid to, schools for primary educations subject to such](http://indiankanoon.org/doc/1797722/) grants as may be determined by the Central Government from time to time; [(s) the maintenance of municipal offices;](http://indiankanoon.org/doc/89133/) [(t) the laying out or the maintenance of public parks, gardens or recreation grounds;](http://indiankanoon.org/doc/1579127/) [(u) the maintenance of monuments and memorials vested in any local authority in New Delhi](http://indiankanoon.org/doc/1986391/) immediately before the commencement of this Act or which may be vested in the Council after such commencement; [(v) the maintenance and development of the value of all properties vested in or entrusted to the](http://indiankanoon.org/doc/1230964/) management of the Council; [(w) the preparation of plans for economic development and social justice;](http://indiankanoon.org/doc/908757/) [(x) the maintenance including the expansion and upgradation of facilities of the hospitals existing](http://indiankanoon.org/doc/1307255/) on the date of the commencement of this Act; [(y) sanction or refuse erection or re-erection of buildings; and](http://indiankanoon.org/doc/578278/) [(z) the fulfilment of any other obligation imposed by or under this Act or any other law for the](http://indiankanoon.org/doc/599660/) time being in force. **[12. Discretionary functions of the Council.—Subject to any general or special order of the](http://indiankanoon.org/doc/1465482/)** Government, or the Central Government from time to time, the Council may provide either wholly or in part for all or any of the following matters, namely:— [(a) the furtherance of education including cultural and physical education, by measures other than](http://indiankanoon.org/doc/793414/) the establishment and maintenance of, and aid to, schools for primary education; [(b) the establishment and maintenance of, and aid to, libraries, museums, art galleries, botanical](http://indiankanoon.org/doc/646591/) or zoological collections; [(c) the establishment and maintenance of, and aid to, stadia, gymnasia, akharas and places for](http://indiankanoon.org/doc/922620/) sports and games; [(d) the planting and care of trees on roadsides and elsewhere;](http://indiankanoon.org/doc/1365083/) ----- [(e) the surveys of buildings and lands;](http://indiankanoon.org/doc/934883/) [(f) the registration of marriages;](http://indiankanoon.org/doc/641549/) [(g) the taking of a census of population;](http://indiankanoon.org/doc/611655/) [(h) the provision of housing accommodation for the inhabitants of any area or for any class of](http://indiankanoon.org/doc/124508/) inhabitants; [(i) the providing of music or other entertainments in public places or places of public resort and](http://indiankanoon.org/doc/218734/) the establishment of theatres and cinemas; [(j) the organisation and management of fairs and exhibitions;](http://indiankanoon.org/doc/1584091/) [(k) the acquisition of movable or immovable property for any of the purpose before mentioned,](http://indiankanoon.org/doc/524473/) including payment of the cost of investigations, surveys or examinations in relation thereto for the construction or adaptation of building necessary for such purposes; [(l) the construction and maintenance of—](http://indiankanoon.org/doc/252527/) [(i) rest-houses,](http://indiankanoon.org/doc/1932532/) [(ii) poor-houses,](http://indiankanoon.org/doc/1628492/) [(iii) infirmaries,](http://indiankanoon.org/doc/1526210/) [(iv) children‟s homes,](http://indiankanoon.org/doc/1489750/) [(v) houses for the deaf and dumb and for disabled and handicapped children,](http://indiankanoon.org/doc/764480/) [(vi) shelters for destitute and disabled persons,](http://indiankanoon.org/doc/23991/) [(vii) asylums for persons of unsound mind;](http://indiankanoon.org/doc/1248312/) [(m) the construction and maintenance of cattle pounds;](http://indiankanoon.org/doc/476673/) [(n) the building or purchase and maintenance of dwelling-houses for municipal officers and other](http://indiankanoon.org/doc/269270/) municipal employees; [(o) any measures for the welfare of the municipal officers and other municipal employees or any](http://indiankanoon.org/doc/266759/) class of them including the sanctioning of loans to such officers and employees or any class of them for construction of houses and purchase of vehicles; [(p) the organisation or management of chemical or bacteriological laboratories for the](http://indiankanoon.org/doc/1058655/) examination or analysis of water, food and drugs for the detection of diseases or research connected with the public health or medical relief; [(q) the provision for relief to destitute and disabled persons;](http://indiankanoon.org/doc/61482/) [(r) the establishment and maintenance of veterinary hospitals;](http://indiankanoon.org/doc/755213/) [(s) the organisation, construction, maintenance and management of swimming pools, public wash](http://indiankanoon.org/doc/1497224/) houses, bathing places and other institutions designed for the improvement of public health; [(t) the organisation and management of farms and dairies within or without New Delhi for the](http://indiankanoon.org/doc/633585/) supply, distribution and processing of milk and milk products for the benefit of the residents of New Delhi; [(u) the organisation and management of cottage industries, handicraft centres and sales emporia;](http://indiankanoon.org/doc/1737914/) [(v) the construction and maintenance of warehouses and godowns;](http://indiankanoon.org/doc/1383587/) [(w) the construction and maintenance of garrages, sheds and stands for vehicles and cattle biers;](http://indiankanoon.org/doc/1888321/) [(x) the provision for unfiltered water supply;](http://indiankanoon.org/doc/1895850/) [(y) the improvement of New Delhi in accordance with improvement schemes approved by the](http://indiankanoon.org/doc/715214/) Council; [(z) any measure not hereinbefore specifically mentioned, likely to promote public safety, health,](http://indiankanoon.org/doc/1153651/) convenience or general welfare. ----- CHAPTER IV THE CHAIRPERSON **[13. Appointment, etc., of the Chairperson.—(1) The Central Government shall, by notification in](http://indiankanoon.org/doc/309243/)** the Official Gazette, appoint a suitable person as the Chairperson of the Council in accordance with clause (a) of sub-section (1) of section 4. [(2) The Chairperson so appointed shall hold office for a term of five years in the first instance:](http://indiankanoon.org/doc/738110/) Provided that his appointment may be renewed from time to time for a term not exceeding one year at a time: Provided further that where the Chairperson holds a lien on any service under the Central Government or the Government, the Central Government may at any time after reasonable notice to the Council replace his services at the disposal of the concerned Government. [(3) The Central Government may remove the Chairperson from office at any time if it appears to that](http://indiankanoon.org/doc/676034/) Government that he is incapable of performing the duties of his office or has been guilty of neglect or misconduct in the discharge of such duties, which renders his removal expedient. [(4) The Chairperson shall not undertake any work unconnected with his office without the sanction of](http://indiankanoon.org/doc/1184217/) the Central Government and of the Council. **[14. Leave of absence of Chairperson.—(1) Leave may be granted to the Chairperson by the](http://indiankanoon.org/doc/1339426/)** Administrator. [(2) Whenever such leave is granted to the Chairperson, the Central Government shall appoint another](http://indiankanoon.org/doc/1253004/) person to officiate as Chairperson in his place. **[15. Appointment of officiating Chairperson in case of death, resignation or removal of](http://indiankanoon.org/doc/1687693/)** **Chairperson.—If any vacancy occurs in the office of Chairperson on account of death, resignation or** removal, the Central Government shall appoint another person to officiate as Chairperson in his place for a term not exceeding two months, pending the appointment of a Chairperson under section 13. **[16. Salary and allowances of the Chairperson and members.—(1) The Chairperson shall be paid](http://indiankanoon.org/doc/1684948/)** out of the New Delhi Municipal Fund constituted under section 44 such monthly salary and such monthly allowances, if any, as may from time to time be fixed by the Central Government and may be given such facilities, if any, in relation to residential accommodation, conveyance and the like as may from time to time be fixed by that Government: Provided that the salary of the Chairperson shall not be varied to his disadvantage after his appointment. [(2) The members shall be entitled to receive allowances for attendance at meeting of Council and of](http://indiankanoon.org/doc/653355/) any of its committees at such rates as may be determined by rules made in this behalf. **[17. Service regulations of members.—If a member is an officer in the service of the Government or](http://indiankanoon.org/doc/861952/)** the Central Government, the Council shall make such contribution towards his leave allowances, pension and provident fund as may be required by the conditions of his service under the Government or the Central Government to be paid by him or for him, as the case may be. **[18. Functions of the Chairperson.—Save as otherwise provided in this Act the entire executive](http://indiankanoon.org/doc/1445767/)** power for the purpose of carrying out the provisions of this Act and of any other Act, for the time being in force which confers, any power or imposes any duty on the Council, shall vest in the Chairperson who shall also— [(a) exercise all the powers and perform all the duties specifically conferred or imposed upon him](http://indiankanoon.org/doc/72257/) by this Act or by any other law for the time being in force; [(b) prescribe the duties of and exercise supervision and control over the acts and proceedings of,](http://indiankanoon.org/doc/1713196/) all municipal officers and other municipal employees and subject to any regulation that may be made in this behalf, dispose of all questions relating to the service of the said officers and other employees and their pay, privileges, allowances and other conditions of service; ----- [(c) on the occurrence or threatened occurrence of any sudden accident or any unforeseen event or](http://indiankanoon.org/doc/48784/) natural calamity involving or likely to involve extensive damage to any property of the Council, or danger to human life, take such immediate action as he considers necessary and make a report forthwith to the Council and the Administrator of the action he has taken and the reasons for the same as also of the amount of cost, if any, incurred or likely to be incurred in consequence of such action, which is not covered by a budget-grant; and [(d) subject to any regulation that may be made in this behalf, be the disciplinary authority in](http://indiankanoon.org/doc/756136/) relation to all municipal officers and other municipal employees. **[19. Chairperson not to be interested in any contract, etc., with the Council.—(1) A person shall](http://indiankanoon.org/doc/1093151/)** be disqualified for being appointed as the Chairperson who has directly or indirectly, by himself or by a partner or any other person, any share or interest in any contract made with, or any work being done for, the Council other than as such Chairperson. [(2) If the Chairperson acquires directly or indirectly, by himself or by his partner, or any other person,](http://indiankanoon.org/doc/1862558/) any share or interest in any such contract or work as is referred to in sub-section (1), he shall, unless the Central Government in any particular case otherwise decides, be liable to be removed from his office by the order of the authority competent to remove him under the provisions of this Act: Provided that before an order of removal is made the Chairperson shall be given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. **[20. Exercise of powers to be subject to sanction.—Save as otherwise provided in this Act, the](http://indiankanoon.org/doc/1005701/)** exercise of any power or the performance of any duty conferred or imposed upon the Council by or under this Act which will involve expenditure, shall be subject to the following conditions, namely:— [(a) that such expenditure, in so far as it is to be incurred in the year in which such power is](http://indiankanoon.org/doc/1122729/) exercised or duty performed, shall be provided for under a current budget-grant; and [(b) that if the exercise of such powers or the performance of such duty involves or is likely to](http://indiankanoon.org/doc/1499557/) involve expenditure for any period or at any time after the close of the said year, such expenditure shall not be incurred without the sanction of the Council. CHAPTER V PROCEDURE _Transaction of business by the Council_ **[21. Meetings.—(1) The Council shall ordinarily hold at least one meeting in every month for the](http://indiankanoon.org/doc/1618760/)** transaction of business. [(2) The Chairperson and in his absence the Vice-Chairperson may, whenever he thinks fit, and shall,](http://indiankanoon.org/doc/298050/) upon a requisition in writing by not less than one-fourth of the total number of members, convene a special meeting of the Council. [(3) Any meeting may be adjourned until the next or any subsequent date, and an adjourned meeting](http://indiankanoon.org/doc/1860705/) may be further adjourned in like manner. **[22. First meeting of the Council.—The first meeting of the Council shall be held as early as possible](http://indiankanoon.org/doc/1253277/)** and shall be convened by the Administrator. **[23. Notice of meetings and business.—A list of the business to be transacted at every meeting](http://indiankanoon.org/doc/820792/)** except at an adjourned meeting shall be sent to the address of each member at least seventy-two hours before the time fixed for such meeting; and no business shall, except where the Chairperson otherwise directs, be brought before, or transacted at, in any meeting other than the business of which a notice has been so given: Provided that any member may send of deliver to the Secretary notice of any resolution going beyond the matters mentioned in the notice given of such meeting so as to reach him at least forty-eight hours before the date fixed for the meeting and the Secretary shall, with all possible despatch, take steps to circulate such resolution to every member in such manner as he may think fit. ----- **[24. Quorum.—(1) The quorum necessary for the transaction of business at a meeting of the Council](http://indiankanoon.org/doc/210454/)** shall be prescribed by the Central Government. [(2) If at any time during a meeting of the Council, there is no quorum, it shall be the duty of the](http://indiankanoon.org/doc/926037/) Chairperson or the person presiding over such meeting either to adjourn the meeting or to suspend the meeting until there is a quorum. [(3) Where a meeting has been adjourned under sub-section (2), the business which would have been](http://indiankanoon.org/doc/654899/) brought before the original meeting if there had been a quorum present there at, shall be brought before, and may be transacted at an adjourned meeting, whether there is a quorum present or not. **[25. Presiding Officer.—[1][(1) The meetings of the Council shall be presided over, in the following](http://indiankanoon.org/doc/751910/)** order, by,— (a) the Chief Minister of Delhi, if he is a member of the Legislative Assembly of Delhi representing the constituency which comprises wholly or partly the New Delhi area, and attends the meeting being a member of the Council under clause (b) of sub-section (1) of section 4; or (b) the Union Minister, if he is a Member of Parliament representing the constituency which comprises wholly or partly the New Delhi area, and attends the meeting being a member of the Council under clause (e) of sub-section (1) of section 4; or (c) the Minister in the Government of National Capital Territory of Delhi, if he is a Member of the Legislative Assembly of Delhi representing the constituency which comprises wholly or partly the New Delhi area, and attends the meeting being a member of the Council under clause (b) of sub-section (1) of section 4; or (d) the Member of Parliament not being a Minister for the Union representing the constituency which comprises wholly or partly the New Delhi area, and attends the meeting being a member of the Council under clause (e) of sub-section (1) of section 4; or (e) the Chairperson of the Council.] [(2) The Chairperson or the person presiding over a meeting shall have and exercise a second or a](http://indiankanoon.org/doc/1994002/) casting vote in all cases of equality of votes. **[26. Method of deciding questions.—(1) Save as otherwise provided in this Act, all matters required](http://indiankanoon.org/doc/518783/)** to be decided by the Council shall be decided by the majority of the votes of the members present and voting. [(2) The voting shall be by show of hands, but the Council may, subject to such regulations as may be](http://indiankanoon.org/doc/1599330/) made by it, resolve that any question or class of question shall be decided by ballot. **[27. Members not to vote on matter in which they are interested.—No member shall vote at a](http://indiankanoon.org/doc/1032270/)** meeting of the Council or of any Committee thereof on any question relating to his own conduct or vote or take part in any discussion on any matter (other than a matter affecting generally the residents of New Delhi) which affect his pecuniary interest or any property in respect of which he is directly or indirectly interested, or any property of or for which he is a manager or agent. **[28. Right to attend meetings of Council and its committees, etc., and right of members to ask](http://indiankanoon.org/doc/1543717/)** **[questions in relation to the municipal government of New Delhi.—(1) Any municipal officer](http://indiankanoon.org/doc/1904209/)** authorised by the Chairperson in this behalf may attend, speak in, or otherwise take part in the proceedings of, any meeting of the Council or any of its Committees, but none of the persons specified herein shall by virtue of this sub-section be entitled to vote in any such meeting. [(2) A member may, subject to the provisions of sub-section (3), ask the Chairperson questions on any](http://indiankanoon.org/doc/1520822/) matter relating to the municipal government of New Delhi or the administration of this Act in any meeting of the Council. [(3) The right to ask a question shall be governed by the following conditions, namely:—](http://indiankanoon.org/doc/1886678/) [(a) not less than seven clear days‟ notice in writing specifying the question shall be given to the](http://indiankanoon.org/doc/957308/) Secretary; 1. Subs. by Act 5 of 2012, s. 3, for sub-section (1) (w.e.f. 1-3-2012). ----- [(b) no question shall—](http://indiankanoon.org/doc/1501506/) [(i) bring in any name or statement not strictly necessary to make the question intelligible,](http://indiankanoon.org/doc/1911688/) [(ii) contain argument, ironical expressions, imputations, epithets or defamatory statements,](http://indiankanoon.org/doc/1277747/) [(iii) ask for an expression of opinion or the solution of a hypothetical proposition,](http://indiankanoon.org/doc/715026/) [(iv) ask as to the character or conduct of any person except in his official or public capacity,](http://indiankanoon.org/doc/1071449/) [(v) relate to a matter which is not primarily the concern of the Council,](http://indiankanoon.org/doc/962966/) [(vi) make or imply a charge of a personal character,](http://indiankanoon.org/doc/81724/) [(vii) raise questions of policy too large to be dealt with within the limits of an answer to a](http://indiankanoon.org/doc/694147/) question, [(viii) repeat in substance questions already answered or to which an answer has been refused,](http://indiankanoon.org/doc/160657/) [(ix) ask for information on trivial matters,](http://indiankanoon.org/doc/1831649/) [(x) ordinarily ask for information on matters of past history,](http://indiankanoon.org/doc/1610828/) [(xi) ask for information set forth in accessible documents or in ordinary works of reference,](http://indiankanoon.org/doc/96618/) [(xii) raise matters under the control of bodies or persons not primarily responsible to the](http://indiankanoon.org/doc/518264/) Council, [(xiii) ask for any information on matter which is under adjudication by a court of law.](http://indiankanoon.org/doc/1097432/) [(4) The Chairperson shall not be bound to answer a question if it asks for information which has been](http://indiankanoon.org/doc/233269/) communicated to him in confidence or if in the opinion of the Chairperson it cannot be answered without prejudice to public interest or the interest of the Council. [(5) The Council may make regulations for the transaction of business at its meetings:](http://indiankanoon.org/doc/939455/) Provided that the time, place and procedure for the first meeting after the constitution of the Council under section 4 shall be determined by the Administrator. **[29. Keeping of minutes and proceedings.—Minutes in which shall be recorded the names of the](http://indiankanoon.org/doc/1075358/)** members present at, and the proceedings of each meeting of the Council, and every other committee [constituted under sub-section (1) of section 9 shall be drawn up and recorded in a book to be kept for that](http://indiankanoon.org/doc/1834037/) purpose, and shall be laid before the next ensuring meeting of the Council, or of such committee, as the case may be, and signed at such meeting by the presiding officer thereof. **[30. Circulation of minutes and inspection of minutes and reports of proceedings.—(1) Minutes](http://indiankanoon.org/doc/18059/)** of the proceedings of each meeting of the Council shall be circulated to all the members and shall at reasonable times be available at the municipal office for inspection by any other person on payment of a fee of two rupees. [(2) Full reports, if any, of such proceedings shall similarly be available for inspection, by any member](http://indiankanoon.org/doc/1332079/) without charge and by any other person on payment of a fee of two rupees. **[31. Forwarding minutes and reports of proceedings to the Administrator.—(1) The Secretary](http://indiankanoon.org/doc/783096/)** shall forward to the Administrator a copy of the minutes of the proceedings of each meeting of the Council, within ten days from the date on which the minutes of the proceedings of such meeting were signed under section 29. [(2) The Administrator may also in any case ask for a copy of any paper or all the papers which were](http://indiankanoon.org/doc/906514/) laid before the Council or any committee thereof and the Secretary shall forward to the Administrator a copy of such paper or papers. [(3) The Secretary shall also forward to the Administrator as soon as may be after the date referred to](http://indiankanoon.org/doc/1962172/) in sub-section (1) a full report of the proceedings of each meeting of the Council, if any such report be prepared. ----- _Validation_ **[32. Validation of proceedings, etc.—(1) No act done or proceedings taken under this Act shall be](http://indiankanoon.org/doc/866292/)** questioned on the ground merely of— [(a) the seat of any member remaining unfilled from any cause whatsoever;](http://indiankanoon.org/doc/455482/) [(b) the existence of any vacancy in, or any defect in the constitution of, the Council or in any](http://indiankanoon.org/doc/588162/) committee thereof; [(c) any member having voted or taken part in any proceedings in contravention of section 27;](http://indiankanoon.org/doc/458947/) [(d) any defect or irregularity not affecting the merits of the case.](http://indiankanoon.org/doc/394036/) [(2) Every meeting of the Council or of any committee thereof, the minutes of the proceeding of which](http://indiankanoon.org/doc/603709/) have been duly drawn up and signed shall be deemed to have been duly convened and to be free from all defects and irregularities. CHAPTER VI MUNICIPAL OFFICERS AND OTHER MUNICIPAL EMPLOYEES **[33. Appointment of certain officers.—(1) The Council shall appoint suitable persons to be the](http://indiankanoon.org/doc/1264585/)** Secretary and Chief Auditor of the Council, and such other officer or officers as the Council may deem fit on such monthly salaries and such allowances, if any, as may be fixed by the Council: Provided that the Chief Auditor shall not be eligible for any other office under the Council after he has ceased to hold this office. [(2) The appointment of the Secretary and the Chief Auditor shall be made with the previous approval](http://indiankanoon.org/doc/477651/) of the Administrator. **[34. Schedule of permanent posts and creation of temporary posts.—(1) The Chairperson shall](http://indiankanoon.org/doc/133494/)** from time to time prepare and lay before the Council a Schedule of category „A‟ and category „B‟ posts other than the posts of Secretary and Chief Auditor specified in section 33, setting forth the designations and grades of municipal officers and other municipal employees who should be maintained permanently in the service of the Council indicating therein the salaries, fees and allowances which are proposed to be paid to such officers and other employees. [(2) The Council shall approve and sanction the Schedule either without modifications or with such](http://indiankanoon.org/doc/1088199/) modifications as it thinks fit or may amend it either on its own motion or otherwise. [(3) The Chairperson may create any category „B‟, or category „C‟, or Category „D‟ post and for a](http://indiankanoon.org/doc/69148/) period not exceeding six months any category „A‟ post: Provided that no such category „A‟ post shall be beyond the said period without the previous approval of the Council. [(4) In this section and in section 36—](http://indiankanoon.org/doc/815426/) [(i) “category „A‟ post” means any post, which having regard to its scale of pay or emoluments,](http://indiankanoon.org/doc/1216427/) would, if such post had been in the Central Government, be classified as a Group „A‟ post under the Central Government in accordance with the orders issued by that Government from time to time; [(ii) “category „B‟ post” means any post which having regard to its scale of pay or emoluments,](http://indiankanoon.org/doc/1087721/) would, if such post had been in the Central Government, be classified as a Group „B‟ post under the Central Government in accordance with the orders issued by that Government from time to time; [(iii) “category „C‟ posts” means any post, which having regard to its scale of pay or emoluments](http://indiankanoon.org/doc/1275328/) would, if such post had been in the Central Government, be classified as a Group „C‟ post under the Central Government, in accordance with the orders issued by that Government from time to time; [(iv) “category „D‟ posts” means any post, other than a category „A‟ or category „B‟ or category](http://indiankanoon.org/doc/943382/) „C‟ post. **[35. Restriction on employment of permanent officers and other employees.—No permanent](http://indiankanoon.org/doc/492587/)** officer or other employee shall be entertained in any department of the municipal administration unless he ----- [has been appointed under sub-section (1) of section 33 or his office and emoluments are included in the](http://indiankanoon.org/doc/887654/) Schedule for the time being in force prepared and sanctioned under section 34 or is appointed against a permanent post under section 36. **[36. Power to make appointments.—(1) Subject to the provisions of section 33, the power of](http://indiankanoon.org/doc/1778616/)** appointing municipal officers and other municipal employees, whether temporary or permanent,— [(a) to category „A‟, category „B‟ and category „C‟ posts, shall vest in the Chairperson; and](http://indiankanoon.org/doc/1942574/) [(b) to category „D‟ posts shall vest in the Secretary.](http://indiankanoon.org/doc/756462/) [(2) The claims of the members of the Scheduled Castes shall be taken into consideration, consistently](http://indiankanoon.org/doc/976068/) with the maintenance of efficiency of administration, in the making of appointments of municipal officers and other municipal employees. **[37. Officers and other employees not to undertake any extraneous work.—No municipal officer](http://indiankanoon.org/doc/931544/)** or other municipal employee shall undertake any work unconnected with his duties under this Act except with the permission of the Chairperson. **[38. Officers and other employees not to be interested in any contract, etc., with the](http://indiankanoon.org/doc/1413240/)** **[Council.—(1) A person shall be disqualified for being appointed as a municipal officer or employee if he](http://indiankanoon.org/doc/131256/)** has, directly or indirectly, by himself or by a partner or any other person any share or interest in any contract made with, or any work being done for, the Council other than as such officer or employee. [(2) If any such officer or other employee acquires, directly or indirectly, by himself or by a partner or](http://indiankanoon.org/doc/1182311/) any other person, any share or interest in any such contract or work as is referred to in sub-section (1), he shall unless the authority appointing him in any particular case otherwise decides, be liable to be removed from his office by an order of such authority: Provided that before an order of removal is made, such officer or other employee shall be given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. **[39. Punishment for municipal officers and other employees.—(1) Every municipal officer or other](http://indiankanoon.org/doc/613244/)** municipal employee shall be liable to have his increments or promotion withheld or to be censured, reduced in rank, compulsorily retired, removed or dismissed for any breach of any departmental regulations or of discipline or for carelessness, unfitness, neglect of duty or other misconduct by such authority as may be prescribed by regulation: Provided that no such officer or other employee as aforesaid shall be reduced in rank, compulsorily retired, removed or dismissed by an authority subordinate to that by which he was appointed: Provided further that the Council may by regulations provide that municipal employees belonging to such classes or categories as may be specified in the regulations shall be liable also to be fined by such authority as may be specified therein. [(2) No such officer or other employee shall be punished under sub-section (1) unless he has been](http://indiankanoon.org/doc/1999464/) given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him: Provided that this sub-section shall not apply— [(a) where an officer or other employee is removed or dismissed on the ground of conduct which](http://indiankanoon.org/doc/912703/) had led to his conviction on a criminal charge; or [(b) where the authority empowered to remove or dismiss such officer or other employee is](http://indiankanoon.org/doc/1753536/) satisfied that for some reason, to be recorded by that authority, it is not reasonably practicable to give that person an opportunity of showing cause. [(3) If any question arises whether it is not reasonably practicable to give any officer or other](http://indiankanoon.org/doc/948761/) employee an opportunity of showing cause under sub-section (2), the decision thereon of the authority empowered to remove or dismiss such officer or other employee shall be final. [(4) An officer or other employee upon whom a punishment has been inflicted under this section may](http://indiankanoon.org/doc/987073/) appeal to such officer or authority as may be prescribed by regulations: Provided that in the case of an officer or other employee appointed by the Chairperson, an appeal shall lie to the Administrator. ----- **[40. Consultation with the Union Public Service Commission.—No appointment to any category A](http://indiankanoon.org/doc/540027/)** post within the meaning of clause (i) of sub-section (4) of section 34 shall be made except after consultation with the Commission: Provided that no such consultation with the Commission shall be necessary in regard to the selection for appointment— [(a) to any acting or temporary post for a period not exceeding one year; or](http://indiankanoon.org/doc/511821/) [(b) to such ministerial posts as may from time to time be specified by the Council in consultation](http://indiankanoon.org/doc/391735/) with the Commission when such posts are to be filled by promotion; or [(c) to a post when at the time of such appointment the person to be appointed thereto is in the](http://indiankanoon.org/doc/1136140/) service of the Central Government or a State Government in a Group A post; [(d) to a permanent or temporary post, if the officer or other employee to be appointed is not likely](http://indiankanoon.org/doc/35607/) to hold that post for more than one year; or if such officer or other employee is likely to hold the post for more than one year but not more than three years and the Commission advises that the appointment may be made without consulting the Commission; or [(e) to such other posts, as may, from time to time, be specified by the Central Government in](http://indiankanoon.org/doc/537131/) consultation with the Commission. **[41. Power of Commission to make regulations and reference to the Central Government in case](http://indiankanoon.org/doc/1777051/)** **[of difference between the Commission and the Council.—(1) The Commission may make regulations](http://indiankanoon.org/doc/1086294/)** for the following matters, namely:— [(a) the procedure to be followed by the Commission in advertising posts, inviting applications,](http://indiankanoon.org/doc/165422/) scrutinising the same and selecting candidates for interview; [(b) the procedure to be followed by the Commission for selecting candidates for appointment and](http://indiankanoon.org/doc/982373/) by the Council for consultation with the Commission; [(c) any other matter which is incidental to, or necessary for, the purpose of consultation with the](http://indiankanoon.org/doc/546291/) Commission. [(2) In the case of any difference of opinion between the Commission and the Council on any matter,](http://indiankanoon.org/doc/1176234/) the Council shall refer the matter to the Central Government and the decision of that Government thereon shall be final. **[42. Recruitment to category B and category C posts.—The direct recruitment to category B and](http://indiankanoon.org/doc/745411/)** category C posts may be made by the Government through such agencies as may be prescribed for it. **[43. Power of Council to make regulations.—(1) The Council may make regulations to provide for](http://indiankanoon.org/doc/1131227/)** any one or more of the following matters, namely:— [(a) the tenure of office, salaries and allowances, provident funds, pensions, gratuities, leave of](http://indiankanoon.org/doc/1514738/) absence and other conditions of service of officers and other employees appointed under this Chapter; [(b) the powers, duties and functions of Secretary;](http://indiankanoon.org/doc/489818/) [(c) the qualifications of candidates for appointment to posts specified in section 33 and to posts](http://indiankanoon.org/doc/135075/) dealt with in the Schedule of posts referred to in sub-section (1) of section 34 and the manner of selection for appointments to such posts; [(d) the procedure to be followed in imposing any penalty under sub-section (1) of section 39,](http://indiankanoon.org/doc/1201531/) suspension pending departmental inquiries before the imposition of such penalty and the authority by whom such suspension may be ordered; the officer or authority to whom an appeal shall lie under sub-section (4) of that section; [(e) any other matter which is incidental to or necessary for, the purpose of regulating the](http://indiankanoon.org/doc/1493112/) appointment and conditions of service of persons appointed to services and posts under the Council and any other matter for which in the opinion of the Council provisions should be made by regulations. ----- [(2) No regulation under clause (c) of sub-section (1) shall be made except after consultation with the](http://indiankanoon.org/doc/1672334/) Commission. CHAPTER VII REVENUE AND EXPENDITURE _The New Delhi Municipal Fund_ **[44. Constitution of the New Delhi Municipal Fund.—(1) Save as otherwise provided in this Act—](http://indiankanoon.org/doc/1230040/)** [(a) all funds which immediately before the establishment of the Council vested in the New Delhi](http://indiankanoon.org/doc/1906380/) Municipal Committee; [(b) all moneys received by or on behalf of the Council under the provisions of this Act or of any](http://indiankanoon.org/doc/1532599/) other law for the time being in force, or under any contract; [(c) all proceeds of the disposal of property by, or on behalf of, the Council;](http://indiankanoon.org/doc/193006/) [(d) all rents accruing from any property of the Council;](http://indiankanoon.org/doc/949776/) [(e) all moneys raised by any tax, rate or cess levied for the purposes of this Act;](http://indiankanoon.org/doc/946668/) [(f) all fees collected and all fines levied under this Act or under any rule, regulation or bye-law](http://indiankanoon.org/doc/1625178/) made thereunder; [(g) all moneys received by or on behalf of the Council from the Government or Central](http://indiankanoon.org/doc/438200/) Government or any individual or association of individuals by way of grant or gift or deposit; [(h) all interests and profits arising from any investment of, or from any transaction in connection](http://indiankanoon.org/doc/1299105/) with, any money belonging to the Council, including loans advanced under this Act; and [(i) all moneys received by or on behalf of the Council from any other source whatsoever,](http://indiankanoon.org/doc/1701066/) shall form one Fund to be entitled “the Municipal Fund of New Delhi” (hereafter in this Act referred to as “the New Delhi Municipal Fund”). [(2) The New Delhi Municipal Fund shall be held by the Council in trust for the purposes of this Act](http://indiankanoon.org/doc/681342/) subject to the provisions herein contained and a General Account relating to all moneys received by or on behalf of the Council shall be maintained. **[45. New Delhi Municipal Fund to be kept in the State Bank of India.—All moneys payable to the](http://indiankanoon.org/doc/299723/)** credit of the New Delhi Municipal Fund in the General Account shall be received by the Chairperson and shall be forthwith paid into the State Bank of India to the credit of the said Account which shall be entitled “The General Account of the New Delhi Municipal Fund”. **[46. Operation of the Accounts.—(1) Save as otherwise provided in this Act no payment shall be](http://indiankanoon.org/doc/257015/)** made by the State Bank of India out of the New Delhi Municipal Fund except on a cheque signed by both— [(a) the Financial Adviser or an officer subordinate to him authorised by the Chairperson in this](http://indiankanoon.org/doc/305631/) behalf; and [(b) the Chairperson or the Secretary or an officer subordinate to the Chairperson authorised by](http://indiankanoon.org/doc/1975484/) him in this behalf. [(2) Payment of any sum due by the Council in excess of five hundred rupees shall be made by means](http://indiankanoon.org/doc/212996/) of a cheque signed in accordance with sub-section (1) and not in any other way. [(3) Payments not covered by sub-section (2) may be made in cash.](http://indiankanoon.org/doc/10132/) **[47. Payments not to be made unless covered by a budget-grant.—No payment of any sum out of](http://indiankanoon.org/doc/736791/)** the New Delhi Municipal Fund shall be made unless the expenditure of the same is covered by a current budget-grant and a sufficient balance of such budget-grant is still available notwithstanding any reduction or transfer thereof which may have been made under the provisions of this Act: Provided that this section shall not apply to payments made in the following classes of cases, namely:— [(a) refund of taxes and other moneys which are authorised under this Act;](http://indiankanoon.org/doc/1384426/) ----- [(b) repayment of moneys belonging to contractors or other persons and held in deposit and of](http://indiankanoon.org/doc/1783816/) moneys collected or credited to the New Delhi Municipal Fund by mistake; [(c) sums payable in any of the following circumstances—](http://indiankanoon.org/doc/1394995/) [(i) under orders of the Central Government on failure of the Council to take any action as](http://indiankanoon.org/doc/205457/) required by that Government; or [(ii) under any other enactment for the time being in force; or](http://indiankanoon.org/doc/1342962/) [(iii) under the decree or order of a civil or criminal court passed against the Council; or](http://indiankanoon.org/doc/82701/) [(iv) under a compromise of any claim, suit or other legal proceedings; or](http://indiankanoon.org/doc/1145145/) [(v) on account of cost incurred in taking immediate action by the Chairperson under](http://indiankanoon.org/doc/987285/) clause (c) of section 18 to avert a sudden threat of danger to the property of the Council or to human life; [(d) temporary payments for works urgently required by the Central Government in the public](http://indiankanoon.org/doc/1816482/) interest; [(e) sums payable as compensation under this Act or under any rules, regulations or bye-laws](http://indiankanoon.org/doc/1464958/) made thereunder; [(f) expenses incurred under section 287 by the Chairperson on special measures taken on the](http://indiankanoon.org/doc/1656512/) outbreak of dangerous diseases. **[48. Duty of persons signing cheques.—Before any person signs a cheque in accordance with](http://indiankanoon.org/doc/1117392/)** section 46, he shall satisfy himself that the sum for which the cheque is drawn is either— [(a) required for a purpose or work specifically sanctioned by the proper authority and covered by](http://indiankanoon.org/doc/1257626/) a current budget-grant, or [(b) required for any payment referred to or specified in section 47.](http://indiankanoon.org/doc/692817/) **[49. Procedure when money not covered by a budget-grant is expended.—Whenever any sum is](http://indiankanoon.org/doc/978687/)** expended under clauses (c), (e) or (f) of the proviso to section 47, the Chairperson shall forthwith communicate the circumstances to the Council, which may take such action under the provisions of this Act as shall, in the circumstances appear possible and expedient for covering the amount of the additional expenditure. **[50. Application of New Delhi Municipal Fund.—(1) The moneys from time to time credited to the](http://indiankanoon.org/doc/1385690/)** New Delhi Municipal Fund shall be applied in payment of all sums, charges and costs necessary for carrying out the provisions of this Act, and of the rules, regulations and bye-laws made thereunder, or of which payment is duly directed, sanctioned or required by or under any of the provisions of this Act. [(2) Such moneys shall likewise be applied in payment of all sums payable out of the New Delhi](http://indiankanoon.org/doc/751530/) Municipal Fund under any other enactment for the time being in force. **[51. Temporary payments from the New Delhi Municipal Fund for works urgently required for](http://indiankanoon.org/doc/135032/)** **[the public service.—(1) On the written requisition of a Secretary to the Central Government, the](http://indiankanoon.org/doc/1240962/)** Chairperson may at any time undertake the execution of any work certified by such Secretary to be urgently required in public interest, and for this purpose may temporarily make payments from the New Delhi Municipal Fund so far as the same can be met without unduly interfering with the regular work of the Council. [(2) The cost of work so executed and of the establishment engaged in executing the same shall be](http://indiankanoon.org/doc/1152660/) paid by the Central Government and credited to the New Delhi Municipal Fund. [(3) On the receipt of any requisition under sub-section (1) the Chairperson shall forthwith forward a](http://indiankanoon.org/doc/1377408/) copy thereof to the Council together with a report of the steps taken by him in pursuance of the same. **[52. Investment of surplus moneys.—(1) Surplus money standing at the credit of General Account of](http://indiankanoon.org/doc/175681/)** the New Delhi Municipal Fund which cannot immediately be applied for the purposes specified in section 50 shall be deposited in the State Bank of India or in such scheduled bank or banks as the Council may select or be invested in public securities. ----- [(2) The loss, if any, arising from such deposit or investment shall be debited to the General Account](http://indiankanoon.org/doc/742866/) of the New Delhi Municipal Fund. **[53. Constitution of Finance Commission.—(1) After the commencement of this Act the Finance](http://indiankanoon.org/doc/759674/)** Commission referred to in sub-section (1) of section 107A of the Delhi Municipal Corporation Act, 1957 (66 of 1957), shall review the financial position of the Council and make recommendations to the Administrator as to,— [(a) the principles which should govern,—](http://indiankanoon.org/doc/239733/) [(i) the distribution between the National Capital Territory of Delhi and the Council of the net](http://indiankanoon.org/doc/1125323/) proceeds of the taxes, duties, tolls and fees leviable by the National Capital Territory of Delhi which may be divided between them; [(ii) the determination of the taxes, duties, tolls and fees which may be assigned to or](http://indiankanoon.org/doc/298548/) appropriated by, the Council; [(iii) the grants-in-aid to the Council from the Consolidated Fund of the National Capital](http://indiankanoon.org/doc/1378397/) Territory of Delhi; [(b) the measures needed to improve the financial position of the Council,](http://indiankanoon.org/doc/599324/) [(c) any other matter referred to the Finance Commission by the Administrator in the interest of](http://indiankanoon.org/doc/932644/) sound finance of the Council. [(2) The Administrator shall cause every recommendation made by the Commission under this section](http://indiankanoon.org/doc/131250/) together within an explanatory memorandum as to the action taken thereon to be laid before the Legislative Assembly of the National Capital Territory of Delhi. _Special Funds_ **[54. Constitution of special funds.—(1) The Council shall constitute such special fund or funds as](http://indiankanoon.org/doc/595964/)** may be prescribed by regulations and such other funds necessary for the purposes of this Act as may be so prescribed. [(2) The constitution and disposal of such funds shall be effected in the manner laid down by](http://indiankanoon.org/doc/1568703/) regulations. _Budget estimates_ **[55. Adoption of budget estimates.—(1) The Council shall, on or before the 31st day of March of](http://indiankanoon.org/doc/529953/)** every year, adopt for the ensuing year the budget estimate which shall be an estimate of the income and expenditure of the Council to be received and incurred on account of the municipal government of New Delhi. [(2) On or before the 15th day of February of each year the Council shall determine the rates at which](http://indiankanoon.org/doc/163867/) various municipal taxes, rates and cesses shall be levied in the next following year and save as otherwise provided in this Act the rates so fixed shall not be subsequently altered for the year for which they have been fixed. [(3) Budget estimates shall be prepared in such form as may be approved by the Council and presented](http://indiankanoon.org/doc/911689/) and adopted in such manner and shall provide for all such matters as are prescribed by regulations made in this behalf. **[56. Power of Council to alter budget estimates.—(1) On the recommendation of the Chairperson in](http://indiankanoon.org/doc/1064117/)** respect of the budget estimate, the Council may from time to time, during the year, [(i) increase the amount of budget-grant under any head;](http://indiankanoon.org/doc/422397/) [(ii) make additional budget-grant for the purpose of meeting any special or unforeseen](http://indiankanoon.org/doc/959692/) requirement arising during the said year; [(iii) transfer the amount or portion of the amount of the budget-grant under any head to any other](http://indiankanoon.org/doc/1187308/) head; or ----- [(iv) reduce the amount of the budget-grant under any head:](http://indiankanoon.org/doc/1874229/) Provided that due regard shall be had to all the requirements of this Act and in making any increase or any additional budget-grant, the estimated cash balance at the close of the year shall not be reduced below the sum of one lakh rupees or such higher sum as the Council may determine in respect of the budget estimate. [(2) Every increase in a budget-grant and every additional budget-grant made in any year under](http://indiankanoon.org/doc/949364/) sub-section (1) shall be deemed to be included in the budget estimates finally adopted for that year. [(3) The Council may from time to time during the year—](http://indiankanoon.org/doc/137783/) [(a) reduce the amount of a budget-grant; or](http://indiankanoon.org/doc/1697934/) [(b) sanction the transfer of any amount within a budget-grant.](http://indiankanoon.org/doc/809/) [(4) The Chairperson may from time to time during the year sanction the transfer of any amount not](http://indiankanoon.org/doc/387805/) exceeding ten thousand rupees within a minor head if such transfer does not involve a recurring liability: Provided that every such transfer if it exceeds ten thousand rupees shall be reported forthwith by the Chairperson to the Council and the Chairperson shall give effect to any order that may be passed by the Council in relation thereto. **[57. Power of Council to re-adjust income and expenditure during the year.—(1) If at any time](http://indiankanoon.org/doc/1876804/)** during the year it appears to the Council that, notwithstanding any reduction of budget-grant that has been made under section 56 the income of the New Delhi Municipal Fund during the same year will not suffice to meet the expenditure sanctioned in the budget estimates of that year and to leave at the close of the year the cash balance specified in or determined under the proviso to sub-section (1) of section 56, then, it shall be incumbent on the Council to sanction forthwith any measures which it may consider necessary for adjusting the year‟s income to the expenditure. [(2) For the purposes of sub-section (1), the Council may either diminish the sanctioned expenditure of](http://indiankanoon.org/doc/511386/) the year so far as it may be possible so to do with regard to all the requirements of this Act, or have recourse to supplementary taxation under section 97 or to an increase of the rates of cesses, fees, fares and other charges leviable under this Act, or to adopt all or any of these methods. [(3) If the whole or any part of any budget-grant included in the budget estimates for a year remains](http://indiankanoon.org/doc/1586182/) unexpended at the close of that year, and the amount thereof has not been taken into account in the opening balance entered in the budget estimates of any of the next two following years, the Chairperson may sanction the expenditure of such budget-grant or the unexpended portion thereof during the next two following years for the completion of the purpose or object for which the budget-grant was originally made and not for any other purpose or object. ACCOUNTS AND AUDIT _Scrutiny and audit of accounts_ **[58. Accounts to be kept.—These shall be kept in such manner and in such form as may be prescribed](http://indiankanoon.org/doc/1202207/)** by regulations the General Account of all receipts and expenditures of the Council. **[59. Audit.—(1) The Chief Auditor shall conduct a monthly examination and audit of the accounts of](http://indiankanoon.org/doc/1518786/)** the Council and shall report thereon to the Chairperson, who shall publish monthly an abstract of the receipts and expenditure of the month last proceeding signed by him and by the Chief Auditor. [(2) The Chairperson may also, from time to time and for such period, as he may think fit, conduct](http://indiankanoon.org/doc/1146467/) independently any examination and audit of the accounts of the Council. [(3) For the purpose of examination and audit of the accounts of the Council, the Chief Auditor shall](http://indiankanoon.org/doc/1064848/) have access to all the accounts of the Council and to all records and correspondence relating thereto. [(4) The Chief Auditor shall audit the accounts of the Council with the assistance of the officers and](http://indiankanoon.org/doc/1679987/) other employees subordinate to him. ----- [(5) In the discharge of his functions under this section the Chief Auditor shall,—](http://indiankanoon.org/doc/542370/) [(a) audit the accounts of expenditure from the revenue of the Council, expenditure on account of](http://indiankanoon.org/doc/1454732/) loan works and expenditure incurred out of special funds and shall ascertain whether moneys shown therein as have been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged, and whether the expenditure conforms to the authority which governs it; [(b) audit the accounts of debts, deposits, sinking funds, advances, suspense and remittance](http://indiankanoon.org/doc/118643/) transactions of the Council and report upon those accounts and upon the results of verification of the balance relating thereto. [(6) The Chief Auditor shall examine and audit the statement of accounts relating to the commercial](http://indiankanoon.org/doc/1997153/) services conducted in any department of the Council including the trading, manufacturing and profit and loss accounts, and the balance-sheets where such accounts are maintained under the orders of the Council and shall certify and report upon these accounts. [(7) The Chief Auditor shall in consultation with the Chairperson and subject to any directions given](http://indiankanoon.org/doc/1659814/) by the Council determine the form and manner in which his reports on the accounts of the Council shall be prepared and shall have authority to call upon any officer of the Council to provide any information necessary for the preparation of these reports. [(8) The Chief Auditor may make such queries and observations in relation to any of the accounts of](http://indiankanoon.org/doc/1695501/) the Council which he is required to audit and call for such vouchers, statements, returns and explanation in relation to such accounts as he may think fit. [(9) Every such query or observation as aforesaid shall be promptly taken into consideration by the](http://indiankanoon.org/doc/227722/) officer or authority to whom it may be addressed and returned without delay with the necessary vouchers, documents or explanations to the Chief Auditor. [(10) The power of the Chief Auditor with regard to the disapproval of, and the procedure with regard](http://indiankanoon.org/doc/1846108/) to the settlement of objections to expenditure from the revenues of the Council shall be such as may be prescribed by the Chairperson in Consultation with Chief Auditor, and with the approval of the Council. [(11) If the Chief Auditor considers it desirable that the whole or any part of the audit applied to any](http://indiankanoon.org/doc/36019/) accounts which he is required to audit shall be conducted in the offices in which those accounts originate he may require that those accounts, together with all books and documents having relation thereto, shall at all convenient times be made available in the said offices for inspection. [(12) The Chief Auditor shall have the power to require that any books or other documents relating to](http://indiankanoon.org/doc/746105/) the accounts he is required to audit shall be sent for inspection by him: Provided that if the documents are confidential, he shall be responsible for preventing disclosure of their contents. [(13) The Chief Auditor shall have authority to frame standing orders and to give directions on all](http://indiankanoon.org/doc/201271/) matters relating to audit, and particularly, in respect of the method and the extent of audit to be applied and the raising and pursuing the objections. [(14) Expenditure sanctioned by the Chief Auditor shall be audited by an officer to be nominated by](http://indiankanoon.org/doc/1862089/) the Council. [(15) The Chief Auditor shall report to the Chairperson any material impropriety or irregularity which](http://indiankanoon.org/doc/87249/) he may at any time observe in the expenditure or in the recovery of moneys due to the Council or in the accounts of the Council. [(16) The Chairperson shall cause to be laid before the Council every report made by the Chief](http://indiankanoon.org/doc/708913/) Auditor to the Chairperson and every statement of the views of the Chief Auditor on any matter affecting the exercise and performance of the powers and duties assigned to him under this Act and the Council may take such action in regard to any of the matters as aforesaid as the Council may deem necessary. [(17) As soon as may be after the commencement of each year, the Chief Auditor shall deliver to the](http://indiankanoon.org/doc/1829046/) Council a report of the entire accounts of the Council for the previous year. ----- [(18) The Chairperson shall cause the said report to be printed and shall forward as soon as may be](http://indiankanoon.org/doc/1945143/) printed copy thereof to each member of the Council. [(19) The Chairperson shall also forward without delay to the Government so many copies of the said](http://indiankanoon.org/doc/292556/) report, as may be required by the Government with a brief statement of the action taken or proposed to be taken if any: Provided that the Government may at any time appoint auditor for the purpose of making a special audit of the General Account of the New Delhi Municipal Fund and reporting thereon to the Government and the costs of such audit, as determined by the Government, shall be chargeable to the New Delhi Municipal Fund. The auditor so appointed may exercise any power which the Chief Auditor may exercise. CHAPTER VIII TAXATION _Levy of taxes_ **[60. Taxes to be imposed by the Council under this Act.—(1) The Council shall for the purposes of](http://indiankanoon.org/doc/174556/)** this Act, levy the following taxes, namely:— [(a) property tax;](http://indiankanoon.org/doc/526161/) [(b) a tax on vehicles and animals;](http://indiankanoon.org/doc/937241/) [(c) a theatre-tax;](http://indiankanoon.org/doc/285904/) [(d) a tax on advertisements other than advertisements published in the newspapers;](http://indiankanoon.org/doc/204341/) [(e) a duty on the transfer of property; and](http://indiankanoon.org/doc/1042057/) [(f) a tax on buildings payable along with the application for sanction of the building plan.](http://indiankanoon.org/doc/14876/) [(2) In addition to the taxes specified in sub-section (1) the Council may, for the purposes of this Act;](http://indiankanoon.org/doc/1717077/) levy any of the following taxes, namely:— [(a) an education cess;](http://indiankanoon.org/doc/889063/) [(b) a tax on professions, trades, callings and employments;](http://indiankanoon.org/doc/1697828/) [(c) a tax on the consumption, sale or supply of electricity;](http://indiankanoon.org/doc/1616081/) [(d) a betterment tax on the increase in urban land values caused by the execution of any](http://indiankanoon.org/doc/1210431/) development or improvement work; [(e) tolls.](http://indiankanoon.org/doc/1245310/) [(3) The taxes specified in sub-section (1) and sub-section (2) shall be levied, assessed and collected in](http://indiankanoon.org/doc/959468/) accordance with the provisions of this Act and the bye-laws made thereunder. _Property tax_ **[61. Rates of property tax.—(1) Save as otherwise provided in this Act, the property tax shall be](http://indiankanoon.org/doc/733805/)** levied on lands and buildings in New Delhi and shall consist of not less than ten and not more than thirty per cent. of the rateable value of lands and buildings: Provided that the Council may, when fixing the rate at which the property tax shall be levied during any year, determine that the rate leviable in respect of lands and buildings or portions of lands and buildings in which any particular class of trade or business is carried on shall be higher than the rate determined in respect of other lands and buildings or portions of other lands and buildings by an amount not exceeding one-half of the rate so fixed: Provided further that the tax may be levied on graduated scale, if the Council so determines. _Explanation.—Where any portion of a land or building is liable to a higher rate of the tax such_ portion shall be deemed to be a separate property for the purpose of municipal taxation. ----- [(2) The Council may exempt from the tax lands and buildings of which the rateable value does not](http://indiankanoon.org/doc/454432/) exceed one thousand rupees. **[62. Premises in respect of which property tax is to be levied.—(1) Save as otherwise provided in](http://indiankanoon.org/doc/499325/)** this Act, the property tax shall be levied in respect of all lands and buildings in New Delhi except— [(a) lands and buildings or portions of lands and buildings exclusively occupied and used for](http://indiankanoon.org/doc/1985235/) public worship or by a society or body for a charitable purpose: Provided that such society or body is supported wholly or in part by voluntary contributions, applies its profits, if any, or other income in promoting its objects and does not pay any dividend or bonus to its members. _Explanation.— “Charitable purpose” includes relief of the poor, education and medical relief but_ does not include a purpose which relates exclusively to religious teaching; [(b) lands and buildings vested in the Council, in respect of which the said tax, if levied, would](http://indiankanoon.org/doc/1297221/) under the provisions of this Act be leviable primarily on the Council; [(c) agricultural lands and buildings (other than dwelling houses).](http://indiankanoon.org/doc/660433/) [(2) Lands and buildings or portions thereof shall not be deemed to be exclusively occupied and used](http://indiankanoon.org/doc/1747980/) for public worship or for a charitable purpose within the meaning of clause (a) of sub-section (1) if any trade or business is carried on in such lands and buildings or portions thereof or if in respect of such lands and buildings or portions thereof, any rent is derived. [(3) Where any portion of any land or building is exempt from the property tax by reason of its being](http://indiankanoon.org/doc/377044/) exclusively occupied and used for public worship or for a charitable purpose such portion shall be deemed to be a separate property for the purpose of municipal taxation. **[63. Determination of rateable value of lands and buildings assessable to property tax.—(1) The](http://indiankanoon.org/doc/1460485/)** rateable value of any lands or building assessable to any property taxes shall be the annual rent at which such land or building might reasonably be expected to let from year to year less a sum equal to ten per cent. of the said annual rent which shall be in lieu of all allowances for cost of repairs and insurance, and other expenses, if any, necessary to maintain the land or building in a state to command that rent: Provided that in respect of any land or building the standard rent of which has been fixed under the Delhi Rent Control Act, 1958 (59 of 1958) the rateable value thereof shall not exceed the annual amount of the standard rent so fixed. [(2) The rateable value of any land which is not built upon but is capable of being built upon and of](http://indiankanoon.org/doc/245053/) any land on which a building is in process of erection shall be fixed at five per cent. of estimated capital value of such land. [(3) All plant and machinery contained or situate in or upon any land or building and belonging to any](http://indiankanoon.org/doc/1447503/) of the classes specified from time to time by public notice by the Chairperson with the approval of the Council, shall be deemed to form part of such land or building for the purpose of determining the rateable value thereof under sub-section (1) but save as aforesaid no account shall be taken of the value of any plant or machinery contained or situated in or upon any such land or building. **[64. Charge for supply of water.—(1) A charge shall be levied for the water supplied to any land or](http://indiankanoon.org/doc/1470449/)** building by measurement at such rate as shall from time to time be prescribed by the Council in this behalf. [(2) The Council may prescribe such conditions as it may think fit regarding the use of the water and](http://indiankanoon.org/doc/135800/) regarding the charges to be paid for water consumed whilst a meter is out of order or under repair: Provided that no condition prescribed under this sub-section shall be inconsistent with this Act or with any bye-law made thereunder. [(3) Any sum payable by a person, who is charged for water supplied, and not paid when it becomes](http://indiankanoon.org/doc/1213569/) due shall be recoverable as an arrear of tax under this Act. [(4) In prescribing charges for water supplied by measurement under sub-section (1), it shall be lawful](http://indiankanoon.org/doc/427514/) for the Council to prescribe different rates in respect of different classes of lands and buildings. ----- **[65. Taxation of Union properties.—(1) Notwithstanding anything contained in the foregoing](http://indiankanoon.org/doc/1270017/)** provisions of this Chapter, lands and buildings being properties of the Union shall be exempt from the property tax specified in section 61: Provided that nothing in this sub-section shall prevent the Council from levying property tax on such lands and buildings to which immediately before the 26th January, 1950, they were liable or treated as liable, so long as that tax continues to be levied by the Council on other lands and buildings. [(2) Where the possession of any land or building, being property of the Union, has been delivered in](http://indiankanoon.org/doc/350445/) pursuance of section 20 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954 (44 of 1954) to a displaced person, or any association of displaced persons, whether incorporated or not, or to any other person [hereafter in this sub-section and the proviso to sub-section (1) of section 66 referred to as the transferee], the property tax specified in section 61 shall be leviable and shall be deemed to have been leviable in respect of such land or building with effect from the 7th day of April, 1958 or the date on which possession thereof has been delivered to the transferee, whichever is later, and such property tax shall, notwithstanding anything contained in any other provision of this Act, be recoverable with effect from that day or date, as the case may be. **[66. Incidence of property tax.—(1) The property tax shall be primarily leviable as follows:—](http://indiankanoon.org/doc/89277/)** [(a) if the land or building is let, upon the lessor;](http://indiankanoon.org/doc/777645/) [(b) if the land or building is sub-let, upon the superior lessor;](http://indiankanoon.org/doc/1029690/) [(c) if the land or building is unlet, upon the person in whom the right to let the same vests:](http://indiankanoon.org/doc/587515/) Provided that the property tax in respect of land and building, being property of the Union, possession of which has been delivered in pursuance of section 20 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954 (44 of 1954) shall be primarily leviable upon the transferee. [(2) If any land has been let for a term exceeding one year to a tenant and such tenant has built upon](http://indiankanoon.org/doc/1754182/) the land, the property tax assessed in respect of that land and the building erected thereon shall be primarily leviable upon the said tenant, whether the land and building are in the occupation of such tenant or a sub-tenant of such tenant. _Explanation.—The term “tenant” includes any person deriving title to the land or the building erected_ upon such land from the tenant whether by operation of law or by transfer inter vivos. [(3) The liability of the several owners of any buildings which is, or purports to be, severally owned in](http://indiankanoon.org/doc/1595150/) parts or flats or rooms, for payment of property tax or any instalment thereof payable during the period of such ownership shall be joint and several. **[67. Apportionment of liability for property tax when the premises are let or sub-let.—(1) If any](http://indiankanoon.org/doc/407037/)** land or building assessed to property tax is let, and its rateable value exceeds the amount of rent payable in respect thereof to the person upon whom under the provision of section 66 the said tax is leviable, that person shall be entitled to receive from his tenant the difference between the amount of the property tax levied upon him and the amount which would be leviable upon him if the said tax was calculated on the amount of rent payable to him. [(2) If the land or building is sub-let and its rateable value exceeds the amount of rent payable in](http://indiankanoon.org/doc/525241/) respect thereof to the tenant by his sub-tenant, or the amount of rent payable in respect thereof to a sub-tenant by the person holding under the sub-tenant, the tenant shall be entitled to receive from his sub-tenant or the sub-tenant shall be entitled to receive from the person holding under him, as the case may be, the difference between any sum recovered under this section from such tenant or sub-tenant and the amount of property tax which would be liable in respect of the said land or building if the rateable value thereof were equal to the difference between the amount of rent which such tenant or sub-tenant receives and the amount of rent which he pays. [(3) Any person entitled to receive any sum under this section shall have, for the recovery thereof, the](http://indiankanoon.org/doc/410958/) same rights and remedies as if such sum were rent payable to him by the person from whom he is entitled to receive the same. **[68. Recovery of property tax from occupiers.—(1) On the failure to recover any sum due on](http://indiankanoon.org/doc/1255855/)** account of property tax in respect of any land or building from the person primarily liable therefor under ----- section 66, the Chairperson shall recover from every occupier of such land or building by attachment, in accordance with section 108 of the rent payable by such occupier, a portion of the total sum due which bears, as nearly as may be, the same proportion to that sum as the rent annually payable by such occupier bears to the total amount of rent annually payable in respect of the whole of the land or building. [(2) An occupier from whom any sum is recovered under sub-section (1) shall be entitled to be](http://indiankanoon.org/doc/1490499/) reimbursed by the person primarily liable for the payment, and may in addition to having recourse to other remedies that may be open to him, deduct the amount so recovered from the amount of any rent from time to time becoming due from him to such person. **[69. Property tax a first charge on premises on which it is assessed.—Property tax due under this](http://indiankanoon.org/doc/719161/)** Act in respect of any land or building shall, subject to the prior payment of the land revenue, if any, due to the Council or Government or Central Government thereon, be a first charge— [(a) in the case of any land or building held immediately from the Council or Government or](http://indiankanoon.org/doc/1391355/) Central Government, upon the interest in such land or building of the person liable for such tax and upon the goods and other movable properties, if any, found within or upon such land or building and belonging to such person; and [(b) in the case of any other land or building, upon such land or building and upon the goods and](http://indiankanoon.org/doc/1802890/) other movable properties, if any, found within or upon such land or building and belonging to the person liable for such tax. _Explanation.—The term “property tax” in this section shall be deemed to include the costs on_ recovery of property tax and the penalty, if any, payable as specified in the bye-laws. **[70. Assessment list.—(1) Save as otherwise provided in this Act, the Council shall cause an](http://indiankanoon.org/doc/1136836/)** assessment list of all lands and buildings in New Delhi to be prepared in such form and manner and containing such particulars with respect to each land and building as may be prescribed by bye-laws. [(2) When the assessment list has been prepared the Chairperson shall give public notice thereof and](http://indiankanoon.org/doc/931223/) of the place where the list or a copy thereof may be inspected, and every person claiming to be the owner, lessee or occupier of any land or building included in the list and any authorised agent of such person, shall be at liberty to inspect the list and to take extracts therefrom free of charge. [(3) The Chairperson shall, at the same time, give public notice of a date, not less than one month](http://indiankanoon.org/doc/1914973/) thereafter, when he will proceed to consider the rateable values of lands and buildings entered in the assessment list; and in all cases in which any land or building is for the first time assessed, or the rateable value of any land or building is increased, he shall also give written notice thereof to the owner or to any lessee or occupier of the land or building. [(4) Any objection to a rateable value or any other matter as entered in the assessment list shall be](http://indiankanoon.org/doc/1536738/) made in writing to the Chairperson before the date fixed in the notice and shall state in what respect the rateable value, or other matter is disputed, and all objections so made shall be recorded in a register to be kept for the purpose. [(5) The objections shall be inquired into and investigated, and the persons making them shall be](http://indiankanoon.org/doc/1808562/) allowed an opportunity of being heard either in person or by authorised agent, by the Chairperson or by any officer of the Council authorised in this behalf by the Chairperson. [(6) When all objections have been disposed of, and the revision of the rateable value has been](http://indiankanoon.org/doc/914111/) completed, the assessment list shall be authenticated by signature of the Chairperson or, as the case may be, the officer authorised by him in this behalf, who shall certify that except in the case, if any in which amendments have been made as shown therein, no valid objection has been made to the rateable value or any other matter entered in said list. [(7) The assessment list so authenticated shall be deposited in the office of the Council and shall be](http://indiankanoon.org/doc/1184351/) open, free of charge during office hours to all owners, lessees and occupiers of lands and buildings comprised therein or the authorised agents of such persons, and a public notice that it is so open shall forthwith be published. **[71. Evidential value of assessment list.—Subject to such alterations as may thereafter be made in](http://indiankanoon.org/doc/1301262/)** the assessment list under section 72 and to the result of any appeal made under the provisions of this Act, ----- the entries in the assessment list authenticated and deposited as provided in section 70 shall be accepted as conclusive evidence for the purpose of assessing any tax levied under this Act, of the rateable value of all lands and buildings to which such entries respectively relate. **[72. Amendment of assessment list.—(1) The Chairperson may, at any time, amend the assessment](http://indiankanoon.org/doc/633729/)** list— [(a) by inserting therein the name of any person whose name ought to be inserted; or](http://indiankanoon.org/doc/1004163/) [(b) by inserting therein any land or building previously omitted; or](http://indiankanoon.org/doc/639983/) [(c) by striking out the name of any person not liable for the payment of property tax; or](http://indiankanoon.org/doc/1095673/) [(d) by increasing or reducing for adequate reasons the amount of any rateable value and of the](http://indiankanoon.org/doc/1383631/) assessment thereupon; or [(e) by making or cancelling any entry exempting any land or building from liability to property](http://indiankanoon.org/doc/1606418/) tax; or [(f) by altering the assessment on the land or building which has been erroneously valued or](http://indiankanoon.org/doc/449377/) assessed through fraud, mistake or accident; or [(g) by inserting or altering an entry in respect of any building erected, re-erected, altered or added](http://indiankanoon.org/doc/941652/) to, after the preparation of the assessment list: Provided that no person shall by reason of any such amendment become liable to pay any tax or increase of tax in respect of any period prior to the commencement of the year in which the notice under sub-section (2) is given. [(2) Before making any amendment under sub-section (1) the Chairperson shall give to any person](http://indiankanoon.org/doc/1864077/) affected by the amendment, notice of not less than one month that he proposes to make the amendment and consider any objection which may be made by such person. **[73. Preparation of new assessment list.—It shall be in the discretion of the Chairperson to prepare](http://indiankanoon.org/doc/1037105/)** for the whole or any part of New Delhi, a new assessment list every year or to adopt the rateable value contained in the list for any year, with such alterations as may in particular cases be deemed necessary, as the rateable value for the year following, giving the same public notice as well as individual notices, to persons affected by such alterations, of the rateable value as if a new assessment list had been prepared. **[74. Notice of transfers.—(1) Whenever the title of any person primarily liable for the payment of](http://indiankanoon.org/doc/979112/)** property tax on any land or building is transferred, the person whose title is transferred and the person to whom the same is transferred shall within three months after the execution of the instrument of transfer or after registration, if it is registered, or after the transfer is effected, if no instrument is executed, give notice of such transfer in writing to the Chairperson. [(2) In the event of the death of any person primarily liable as aforesaid, the person on whom the title](http://indiankanoon.org/doc/558798/) of the deceased devolves, shall give notice of such devolution to the Chairperson within six months from the date of the death of the deceased. [(3) The notice to be given under this section shall be in such form as may be determined by bye-laws](http://indiankanoon.org/doc/1357228/) made under this Act, and the transferee or the other person on whom the title devolves shall, if so required, be bound to produce before the Chairperson any document evidencing the transfer or devolution. [(4) Every person who makes a transfer as aforesaid without giving such notice to the Chairperson](http://indiankanoon.org/doc/174772/) shall, in addition to any penalty to which he may be subjected under the provisions of this Act, continue to be liable for the payment of property tax from time to time payable in respect of the land or building transferred until he gives such notice or until the transfer has been recorded in the Chairperson‟s book, but nothing in this section shall be held to affect the liability of the transferee for the payment of the said tax. [(5) The Chairperson shall record every transfer or devolution of title notified to him under this section](http://indiankanoon.org/doc/454611/) in his books and in the assessment list. [(6) On a written request by the Chairperson, the registrar or sub-registrar of New Delhi appointed](http://indiankanoon.org/doc/907193/) under the Registration Act, 1908 (16 of 1908), shall furnish such particulars regarding the registration of ----- instruments of transfer of immovable properties in New Delhi, as the Chairperson may from time to time require. [(7) Such information shall be furnished as soon as may be after the registration of an instrument of](http://indiankanoon.org/doc/1890080/) transfer is effected or, if the Chairperson so requests, by periodical returns at such intervals as the Chairperson may fix. **[75. Notice of erection of building, etc.—When any new building is erected or when any building is](http://indiankanoon.org/doc/892718/)** rebuilt or enlarged or when any building which has been vacant is reoccupied, the person primarily liable for the property tax assessed on the building shall give notice thereof in writing to the Chairperson within fifteen days from the date of its completion or occupation whichever first occurs, or as the case may be, from the date of its enlargement or reoccupation; and property tax shall be assessable on the building from the said date. **[76. Notice of demolition or removal of buildings.—(1)](http://indiankanoon.org/doc/818530/)** When any building or any portion of a building, which is liable to the payment of property tax is demolished or removed, otherwise than by order of the Chairperson, the person primarily liable for the payment of the said tax shall give notice thereof in writing to the Chairperson. [(2) Until such notice is given, the person aforesaid shall continue to be liable to the payment of such](http://indiankanoon.org/doc/766054/) property tax as he would have been liable to pay in respect of such building if the same or any portion thereof had not been demolished or removed. **[77. Power of Chairperson to call for information and returns and to enter and inspect](http://indiankanoon.org/doc/895715/)** **[premises.—(1) To enable him to determine the rateable value of any land or building and the person](http://indiankanoon.org/doc/350898/)** primarily liable for the payment of property tax leviable in respect thereof, the Chairperson may require the owner or occupier of such land or building, or of any portion thereof to furnish him within such reasonable period as the Chairperson fixes in this behalf, with information or with a written return signed by such owner or occupier— [(a) as to the name and place of residence of the owner or occupier, or of both the owner and](http://indiankanoon.org/doc/1295898/) occupier of such land or buildings; [(b) as to the measurements or dimensions of such land or building or of any portion thereof and](http://indiankanoon.org/doc/1306398/) the rent, if any, obtained for such land or building or any portion thereof; and [(c) as to the actual cost or other specified details connected with the determination of the value of](http://indiankanoon.org/doc/288359/) such land or building. [(2) Every owner or occupier on whom any such requisition is made shall be bound to comply with the](http://indiankanoon.org/doc/1791306/) same and to give true information or to make a true return to the best of his knowledge or belief. [(3) Whoever omits to comply with any such requisition or fails to give true information or to make a](http://indiankanoon.org/doc/1196092/) true return to the best of his knowledge or belief, shall, in addition to any penalty to which he may be liable, be precluded from objecting to any assessment made by the Chairperson in respect of such land or building of which he is the owner or occupier. **[78. Premises owned by, or let to two or more persons in severalty to be ordinarily assessed as](http://indiankanoon.org/doc/1291314/)** **one property.—Notwithstanding that any land or building is owned by, or let to, two or more persons in** severalty, the Chairperson shall for the purpose of assessing such land or building to property tax treat the whole of it as one property: Provided that the Chairperson may, in respect of any land or building which was originally treated as one property but which subsequently passes on by transfer, succession or in any other manner to two or more persons who divide the same into several parts and occupy them in severalty, treat, subject to any bye-law made in this behalf, each such several part, or two or more of such several parts together, as a separate property and assess such part or parts to property tax accordingly. **[79. Assessment in case of amalgamation of premises.—If any land or building, bearing two or](http://indiankanoon.org/doc/1667527/)** more municipal numbers, or portions thereof, be amalgamated into one or more new premises, the Chairperson shall on such amalgamation assign to them one or more number and assess them to property tax accordingly: Provided that the total assessment on amalgamation shall not be greater than the sum of the previous assessments of the several premises except when there is any re-valuation of any of the said premises. ----- **[80. Power of Chairperson to assess separately outhouses and portions of buildings.—The](http://indiankanoon.org/doc/333585/)** Chairperson may in his discretion assess any outhouse appurtenant to a building, or any portion of a land or building separately from such building or as the case may be, from the rest of such land or building. **[81. Power of Chairperson to employ valuers.—(1) The Chairperson may, if he thinks fit, employ](http://indiankanoon.org/doc/367697/)** one or more competent persons to give advice or assistance in connection with the valuation of any land or building, and any person so employed shall have power, at all reasonable times and after giving due notice, and on production, if so required, of authorisation in writing in that behalf from the Chairperson, to enter on, survey and value any land or building which the Chairperson may direct him to survey and value. [(2) No person shall willfully delay or obstruct any such person in the exercise of any of his powers](http://indiankanoon.org/doc/829863/) under this section. _Tax on vehicles and animals_ **[82. Tax on certain vehicles and animals and rates thereof.—Save as otherwise provided in this](http://indiankanoon.org/doc/1945061/)** Act, a tax at the rates not exceeding those specified in the Second Schedule shall be levied on vehicles and animals of the descriptions specified in that Schedule which are kept within New Delhi. **[83. The tax on whom leviable.—The tax on vehicles or animals shall be leviable upon the owner of,](http://indiankanoon.org/doc/1340093/)** or the person having possession or control of, such vehicles or animals in respect of which the tax is leviable: Provided that in the case of an animal generally used or employed in drawing any vehicle, the tax in respect of such animal shall be leviable upon the owner of, or the person having possession or control of, such vehicle, whether or not such animal is owned by such owner or person: Provided further that the tax under this section shall not be levied in respect of— [(a) vehicles and animals belonging to the Central Government or to the Government or to the](http://indiankanoon.org/doc/1560412/) Council used or intended to be used solely for public purposes; [(b) vehicles intended exclusively for the conveyance free of charge, of the injured, the sick or the](http://indiankanoon.org/doc/378953/) dead; [(c) children‟s perambulators or tricycles;](http://indiankanoon.org/doc/1212627/) [(d) a cow or a she-buffalo kept for milking for domestic use if the cow or the she-buffalo is the](http://indiankanoon.org/doc/398834/) only cow or she-buffalo kept by the owner or the person having possession or control thereof for such milking and is registered in accordance with bye-laws made in this behalf, so, however, that— [(i) where more cows or, as the case may be, more she-buffaloes than one are kept by several](http://indiankanoon.org/doc/460255/) such owners or persons constituting a family, the tax under this section shall be levied in respect of all such cows or all such she-buffaloes; [(ii) where a cow and also a she-buffalo are kept by the owner or the person having the](http://indiankanoon.org/doc/1746985/) possession or control thereof or by several such owners or persons constituting a family, the tax under this section shall be levied in respect of the cow and the she-buffalo. **[84. Tax when payable.—The tax on vehicles or animals shall be payable in advance in such number](http://indiankanoon.org/doc/863901/)** of instalments and in such manner as may be determined by bye-laws made in this behalf. **[85. Power of Chairperson to compound with livery stable keeper, etc., for tax.—The Chairperson](http://indiankanoon.org/doc/1688808/)** may with the approval of the Council, compound for any period not exceeding one year at a time, with any livery stable keeper or other person keeping vehicles for hire or animals for sale or hire, for a lump sum to be paid in respect of the vehicles or animals so kept in lieu of the taxes leviable under section 82 which such livery stable keeper or other person would otherwise be liable to pay. _Theatre-tax_ **[86. Theatre-tax.—Save as otherwise provided in this Act, there shall be levied a tax (referred to in](http://indiankanoon.org/doc/95619/)** this Act as theatre-tax) in respect of every cinema, theatre, circus, carnival and other place of ----- entertainment to which persons are ordinarily admitted on payment for performances or shows held or conducted thereat, at such rates not exceeding those specified in the Third Schedule as the Council may determine: Provided that the theatre-tax shall not be levied in respect of any performance or show if the Chairperson is satisfied— [(a) that the entire receipts from such performance or show will be devoted to philanthropic,](http://indiankanoon.org/doc/1481653/) religious or charitable purposes; or [(b) that the performance or show is of a wholly educational character; or](http://indiankanoon.org/doc/286704/) [(c) that the performance or show is provided for partly educational or partly scientific purposes](http://indiankanoon.org/doc/568364/) by a society not conducted or established for profit. **[87. Liability to pay theatre-tax.—Every proprietor, manager, or person-in-charge of a theatre,](http://indiankanoon.org/doc/1614854/)** cinema, circus, carnival or other place of entertainment shall be liable to pay the theatre-tax and shall pay the same in advance before the commencement of the performances or shows: Provided that the Chairperson may, with the approval of the Council, compound for any series of performances or shows or for any period not exceeding one month, with such proprietor, manager or person for a lump sum to be paid for such series of performances or shows or for the performances or shows held or conducted during such period. _Tax on advertisements other than advertisements published in the newspapers_ **[88. Tax on advertisements.—(1) Every person, who erects, exhibits, fixes or retains upon or over](http://indiankanoon.org/doc/404948/)** any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle any advertisement or, who displays any advertisement to public view in any manner whatsoever, visible from a public street or public place (including any advertisement exhibited by means of cinematographs), shall pay for every advertisement which is so erected, exhibited, fixed or retained or so displayed to public view, a tax calculated at such rates not exceeding those specified in the Fourth Schedule as the Council may determine: Provided that no tax shall be levied under this section on any advertisement which— [(a) relates to a public meeting, or to an election to Parliament or the Legislative Assembly of](http://indiankanoon.org/doc/1734397/) Delhi; or [(b) is exhibited within the window of any building if the advertisement relates to the trade,](http://indiankanoon.org/doc/1519808/) profession or business carried on in that building; or [(c) relates to the trade, profession or business carried on within the land or building upon or over](http://indiankanoon.org/doc/286783/) which such advertisement is exhibited or to any sale or letting of such land or building or any effects therein or to any sale, entertainment or meeting to be held on or upon or in the same; or [(d) relates to the name of the land or building upon or over which the advertisement is exhibited,](http://indiankanoon.org/doc/121863/) or to the name of the owner or occupier of such land or building; or [(e) relates to the business of a railway administration and is exhibited within any railway station](http://indiankanoon.org/doc/1528757/) or upon any wall or other property of a railway administration; or [(f) relates to any activity of the Central Government or the Government or the Council.](http://indiankanoon.org/doc/1359605/) [(2) The tax on any advertisement leviable under this section shall be payable in advance in such](http://indiankanoon.org/doc/1401722/) number of instalments and in such manner as may be determined by bye-law made in this behalf. _Explanation 1.—The word “structure” in this section includes any movable board on wheels used as_ an advertisement or an advertisement medium. _Explanation 2.—The word “advertisement” in relation to a tax on advertisement under this Act means_ any word, letter, model, sign, placard, notice, device or representation, whether illuminated or not, in the nature of and employed wholly or in part for the purposes of advertisement, announcement or direction. **[89. Prohibition of advertisements without written permission of the Chairperson.—(1) No](http://indiankanoon.org/doc/89983/)** advertisement shall be erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle or shall be displayed in any manner ----- whatsoever in any place within New Delhi without the written permission of the Chairperson granted in accordance with bye-laws made under this Act. [(2) The Chairperson shall not grant such permission if—](http://indiankanoon.org/doc/145308/) [(a) the advertisement contravenes any bye-law made under this Act; or](http://indiankanoon.org/doc/986030/) [(b) the tax, if any, due in respect of the advertisement has not been paid.](http://indiankanoon.org/doc/1253756/) [(3) Subject to the provisions of sub-section (2), in the case of an advertisement liable to the](http://indiankanoon.org/doc/1446611/) advertisement tax, the Chairperson shall grant permission for the period to which the payment of the tax relates and no fee shall be charged in respect of such permission. **[90. Permission of the Chairperson to become void in certain cases.—The permission granted](http://indiankanoon.org/doc/435483/)** under section 89 shall become void in the following cases, namely:— [(a) if the advertisement contravenes any bye-law made under this Act;](http://indiankanoon.org/doc/883867/) [(b) if any material change is made in the advertisement or any part thereof without the previous](http://indiankanoon.org/doc/49223/) permission of the Chairperson; [(c) if the advertisement or any part thereof falls otherwise than through accident;](http://indiankanoon.org/doc/792270/) [(d) if any addition or alteration is made to, or in the building, wall, hoarding, frame, post or](http://indiankanoon.org/doc/412353/) structure upon or over which the advertisement is erected, exhibited, fixed or retained if such addition or alteration involves the disturbance of the advertisement or any part thereof; and [(e) if the building, wall, hoarding, frame, post or structure over which the advertisement is](http://indiankanoon.org/doc/1345106/) erected, exhibited, fixed or retained is demolished or destroyed. **[91. Presumption in case of contravention.—Where any advertisement has been erected, exhibited,](http://indiankanoon.org/doc/280573/)** fixed or retained upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle or displayed to public view from a public street or public place in contravention of the provisions of this Act or any bye-laws made thereunder, it shall be presumed, unless and until contrary is proved, that the contravention has been committed by the person or the persons on whose behalf the advertisement purports to be or the agents of such person or persons. **[92. Power of Chairperson in case of contravention.—If any advertisement is erected, exhibited,](http://indiankanoon.org/doc/1953874/)** fixed or retained in contravention of the provisions of section 89, the Chairperson may require the owner or occupier of the land, building, wall, hoarding, frame, post or structure or vehicle upon, or over or in which the same is erected, exhibited, fixed or retained, to take down or remove such advertisement or may enter any land, building, property or vehicle and have the advertisement dismantled, taken down or removed or spoiled, defaced or screened. _Duty on transfer of property_ **[93. Duty on transfer of property and method of assessment thereto.—(1) Save as otherwise](http://indiankanoon.org/doc/522125/)** provided in this Act, the Council shall levy a duty on transfer of immovable property situated within the limits of New Delhi in accordance with the provisions hereafter in this section contained. [(2) The said duty shall be levied—](http://indiankanoon.org/doc/948918/) [(a) in the form of a surcharge on the duty imposed by the Stamp Act, 1899 (2 of 1899), as in](http://indiankanoon.org/doc/709973/) force for the time being in the National Capital Territory of Delhi, on every instrument of the description specified below, and [(b) at such rate as may be determined by the Council not exceeding five per cent. on the amount](http://indiankanoon.org/doc/452318/) specified below against such instruments: Description of instrument Amount on which duty should be levied (i) Sale of immovable property. The amount of value of the consideration for the sale, as set forth in the instrument. ----- Description of instrument Amount on which duty should be levied (ii) Exchange of immovable property. The value of the property of the greater value, as set forth in the instrument. (iii) Gift of immovable property. The value of the property as set forth in the instrument. (iv) Mortgage with possession of immovable property. The amount secured by the mortgage as set forth in the instrument. (v) Lease in perpetuity of immovable property. The amount equal to one sixth of the whole amount or value of the rent which would be paid or delivered in respect of the first fifty years of the lease as set forth in the instrument. **94. Provisions applicable on the introduction of transfer duty.—On the introduction of the duty** on transfers of property— [(a) section 27 of the Stamp Act, 1899 (2 of 1899), as in force in the National Capital Territory of](http://indiankanoon.org/doc/833121/) Delhi shall be read as if it specifically required the particulars to be set forth separately in respect of property situated within and without New Delhi; [(b) section 64 of the said Act shall be read as if it referred to the Council as well as the](http://indiankanoon.org/doc/1728127/) Government of National Capital Territory of Delhi. _Tax on buildings payable along with the application for sanction of building plans_ **[95. Tax on building applications.—(1) Save as otherwise provided in this Act the Council shall levy](http://indiankanoon.org/doc/662129/)** a tax on buildings at such rates not exceeding those specified in the Fifth Schedule as the Council shall determine. [(2) The tax shall be leviable on every person who makes an application to the Chairperson for the](http://indiankanoon.org/doc/1092599/) sanction of building plan and shall be payable along with the same. _Other taxes_ **[96. Imposition of other taxes.—(1) The Council may, at a meeting, pass a resolution for the levy of](http://indiankanoon.org/doc/304381/)** any of the taxes specified in sub-section (2) of section 60, defining the maximum rate of the tax to be levied, the class or classes of persons or the description or descriptions of articles and properties to be taxed, the system of assessment to be adopted and the exemptions, if any, to be granted. [(2) Any resolution passed under sub-section (1) shall be submitted to the Central Government for its](http://indiankanoon.org/doc/968826/) sanction, and if sanctioned by that Government, shall come into force on and from such date as may be specified in the order of sanction. [(3) After a resolution has come into force under sub-section (2), the Council may, subject to the](http://indiankanoon.org/doc/595125/) maximum rate, pass a second resolution determining the actual rates at which the tax shall be leviable and the tax shall come into force on the first day of the quarter of the year next following the date on which such second resolution is passed. [(4) After a tax has been levied in accordance with foregoing provisions of this section, the provisions](http://indiankanoon.org/doc/494860/) of sub-section (2) of section 55, shall apply in relation to such tax as they apply in relation to any tax imposed under sub-section (1) of section 60. _Supplementary taxation_ **[97. Supplementary taxation.—Whenever the Council decides to have recourse to supplementary](http://indiankanoon.org/doc/654308/)** taxation under sub-section (2) of section 57 in any year, it shall do so by increasing from such date as the Council may determine, the rates at which any tax leviable under this Act is being levied, but every such ----- increase shall be made subject to the maximum rate and any other limitation specified in respect of such tax. _Payment and recovery of taxes_ **[98. Time and manner of payment of taxes.—Save as otherwise provided in this Act, any tax levied](http://indiankanoon.org/doc/972557/)** under this Act shall be payable on such dates, in such number of instalments and in such manner as may be determined by bye-laws made in this behalf. **[99. Presentation of bill.—(1) When any tax has become due, the Chairperson shall cause to be](http://indiankanoon.org/doc/1357018/)** presented to the person liable for the payment thereof, a bill for the amount due: Provided that no such bill shall be necessary in the case of— [(a) a tax on vehicles and animals;](http://indiankanoon.org/doc/8868/) [(b) a theatre-tax; and](http://indiankanoon.org/doc/1513204/) [(c) a tax on advertisements.](http://indiankanoon.org/doc/811042/) [(2) Every such bill shall specify the particulars of the tax and the period for which the charge is made.](http://indiankanoon.org/doc/405770/) **[100. Notice of demand and notice fee.—(1) If the amount of the tax for which a bill has been](http://indiankanoon.org/doc/451431/)** presented under section 99 is not paid within fifteen days from the presentation thereof, or if the tax on vehicles and animals or the theatre-tax or the tax on advertisements is not paid after it has become due, the Chairperson may cause to be served upon the person liable for the payment of the same a notice of demand in the form set forth in the Sixth Schedule. [(2) For every notice of demand which the Chairperson causes to be served on any person under this](http://indiankanoon.org/doc/1105496/) section, a fee of such amount not exceeding five rupees as may be determined by bye-laws made in this behalf, shall be payable by the said person and shall be included in the cost of recovery. **[101. Penalty in case of default of payment of taxes.—(1) If the person liable for the payment of any](http://indiankanoon.org/doc/1275812/)** tax does not, within thirty days of the service of the notice of demand under section 100 pay the sum due and if no appeal is preferred against such tax, he shall be deemed to be in default. [(2) When the person liable for the payment of any tax is deemed to be in default under](http://indiankanoon.org/doc/214913/) sub-section (1), such sum not exceeding twenty per cent. of the amount of the tax as may be determined by the Chairperson, may be recovered from him by way of penalty, in addition to the amount of the tax and the notice fee, payable under sub-section (2) of section 100. [(3) The amount due as penalty under sub-section (2) shall be recoverable as an arrear of tax under this](http://indiankanoon.org/doc/1146426/) Act. **[102. Recovery of tax.—(1) If the person liable for the payment of the tax does not, within thirty days](http://indiankanoon.org/doc/1759510/)** from the service of the notice of demand, pay the amount due, such sum together with all costs and the penalty provided for in section 101 may be recovered under a warrant, issued in the form set forth in the Seventh Schedule, by distress and sale of the movable property or the attachment and sale of the immovable property, of the defaulter: Provided that the Chairperson shall not recover any sum the liability for which has been remitted on appeal under the provisions of this Act. [(2) Every warrant issued under this section shall be signed by the Chairperson.](http://indiankanoon.org/doc/1508723/) **[103. Distress.—(1) It shall be lawful for any officer or other employees of the Council to whom a](http://indiankanoon.org/doc/1019500/)** warrant issued under section 102 is addressed to distrain, wherever it may be found in any place in New Delhi; any movable property, or any standing timber, growing crops or grass belonging to the person therein named as defaulter, subject to the following conditions, exceptions and exemptions, namely:— [(a) the following property shall not be distrained:—](http://indiankanoon.org/doc/1891696/) [(i) the necessary wearing apparel and bedding of the defaulter, his wife and children and their](http://indiankanoon.org/doc/115410/) cooking and eating utensils; [(ii) tools of artisans;](http://indiankanoon.org/doc/462573/) ----- [(iii) books of account; or](http://indiankanoon.org/doc/491949/) [(iv) when the defaulter is an agriculturist his implements of husbandry, seed, grain and such](http://indiankanoon.org/doc/461820/) cattle as may be necessary to enable the defaulter to earn his livelihood; [(b) the distress shall not be excessive, that is to say, the property distrained shall be as nearly as](http://indiankanoon.org/doc/1472257/) possible equal in value to the amount recoverable under the warrant, and if any property has been distrained which, in the opinion of the Chairperson, should not have been distrained, it shall forthwith be released. [(2) The person charged with the execution of a warrant of distress shall forthwith make an inventory](http://indiankanoon.org/doc/1087815/) of the property which he seizes under such warrant, and shall, at the same time, give a written notice in the form set forth in the Eighth Schedule, to the person in possession thereof at the time of seizure that the said property will be sold as therein mentioned. **[104. Disposal of distrained property and attachment and sale of immovable property.—](http://indiankanoon.org/doc/383349/)** [(1) When the property seized is subject to speedy and natural decay or when the expense of keeping it in](http://indiankanoon.org/doc/1510417/) custody is, when added to the amount to be recovered, likely to exceed its value, the Chairperson shall give notice to the person in whose possession the property was at the time of seizure that it will be sold at once, and shall sell it accordingly by public auction unless the amount mentioned in the warrant is forthwith paid. [(2) If the warrant is not in the meantime suspended by the Chairperson, or discharged, the property](http://indiankanoon.org/doc/1004512/) seized shall, after the expiry of the period named in the notice served under sub-section (2) of section 103 be sold by public auction by order of the Chairperson. [(3) When a warrant is issued for the attachment and sale of immovable property, the attachment shall](http://indiankanoon.org/doc/1025055/) be made by an order prohibiting the defaulter from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge, and declaring that such property would be sold unless the amount of tax due with all costs of recovery is paid into the municipal office within fifteen days from the date of the attachment. [(4) Such order shall be proclaimed at some place on or adjacent to such property by beat of drum or](http://indiankanoon.org/doc/1078309/) other customary mode and a copy of the order shall be affixed on a conspicuous part of the property and upon a conspicuous part of the municipal office and also, when the property is land paying revenue to the Government, in the office of the collector. [(5) Any transfer of or charge on the property attached or any interest therein made without written](http://indiankanoon.org/doc/1419233/) permission of the Chairperson shall be void as against all claims of the Council enforceable under the attachment. [(6) The surplus of the sale-proceeds, if any, shall, immediately after the sale of the property, be](http://indiankanoon.org/doc/1722146/) credited to the New Delhi Municipal Fund, and notice of such credit shall be given at the same time to the person whose property has been sold or his legal representative and if the same is claimed by written application to the Chairperson, within one year from the date of the notice, a refund thereof shall be made to such person or representative. [(7) Any surplus not claimed within one year as aforesaid shall be the property of the Council.](http://indiankanoon.org/doc/1749991/) [(8) For every distraint and attachment made in accordance with the foregoing provisions, a fee of](http://indiankanoon.org/doc/671056/) such amount not exceeding two and a half per cent. of the amount of the tax due as shall in each case be fixed by the Chairperson, shall be charged, and the said fee shall be included in the costs of recovery. **[105. Recovery from a person about to leave New Delhi or Delhi.—(1) If the Chairperson has](http://indiankanoon.org/doc/167894/)** reason to believe that any person from whom any sum is due or is about to become due on account of any tax is about to move from New Delhi or Delhi, he may direct the immediate payment by such person of the sum so due or about to become due and cause a notice of demand for the same to be served on such person. [(2) If, on the service of such notice, such person does not forthwith pay the sum so due or about to](http://indiankanoon.org/doc/817573/) become due, the amount shall be leviable by distress or attachment and sale in the manner hereinbefore provided, and the warrant of distress or attachment and sale may be issued and executed without any delay. ----- **[106. Power to institute suit for recovery.—Instead of proceeding against a defaulter by distress and](http://indiankanoon.org/doc/1188745/)** sale as hereinbefore provided, or after a defaulter has been so proceeded against unsuccessfully or with partial success, any sum due or the balance of any sum due, as the case may be, from such defaulter on account of a tax may be recovered from him by a suit in any court of competent jurisdiction. **[107. Power of seizure of vehicles and animals in case of non-payment of tax thereon.—(1) If the](http://indiankanoon.org/doc/223263/)** tax on any vehicle or animal is not paid, then, instead of proceeding against the defaulter by distress and sale of his other movable property as hereinbefore provided, the Chairperson may, at any time after the tax has become due, seize and detain the vehicle or animal or both and, if the owner or other person entitled thereto does not within seven days in respect of a vehicle and two days in respect of an animal from the date of such seizure and detention, claim the same and pay the tax due together with the charges incurred in connection with the seizure and detention, the Chairperson may cause the same to be sold and apply the proceeds of the sale or such part thereof as is required in discharge of the sum due and the charges incurred as aforesaid. [(2) The surplus, if any, remaining after the application of the sale-proceeds under sub-section (1) shall](http://indiankanoon.org/doc/936396/) be disposed of in the manner laid down in sub-sections (6) and (7) of section 104. **[108. Occupiers may be required to pay rent towards satisfaction of property tax.—(1) For the](http://indiankanoon.org/doc/1042904/)** purposes of recovering the amount of any property tax from any occupier under section 68, the Chairperson shall cause to be served on such occupier a notice requiring him to pay to the Council, any rent due or falling due from him in respect of the land or building to the extent necessary to satisfy the portion of the sum due for which he is liable under the said section. [(2) Such notice shall operate as an attachment of the said rent unless the portion of the sum due shall](http://indiankanoon.org/doc/531386/) have been paid and satisfied and the occupier shall be entitled to credit in account with the person to whom such rent is due for any sum paid by him to the Council in pursuance of such notice: Provided that if the person to whom such rent is due is not the person primarily liable for payment of the property tax, he shall be entitled to recover from the person primarily liable for the payment of such tax any amount for which credit is claimed as aforesaid. [(3) If any occupier fails to pay to the Council any rent due or falling due which he has been required](http://indiankanoon.org/doc/1124547/) to pay in pursuance of a notice served upon him as aforesaid, the amount of such rent may be recovered from him by the Council as an arrear of tax under this Act. _Remission and refund_ **[109. Demolition, etc., of buildings.—If any building is wholly or partly demolished or destroyed or](http://indiankanoon.org/doc/289346/)** otherwise deprived of value, the Chairperson may, on the application in writing of the owner or occupier, remit or refund such portion of any tax assessed on the rateable value thereof as he thinks fit. **[110. Remission or refund of tax.—(1) If any building together with land appurtenant thereto has](http://indiankanoon.org/doc/1024426/)** remained vacant and unproductive of rent for sixty or more consecutive days, the Chairperson shall remit or refund, as the case may be, two-thirds of such portion of the property tax assessed on the rateable value thereof, as may be proportionate to the number of days during which the said building together with the land appurtenant thereto has remained vacant and unproductive of rent. [(2) If any land, not being land appurtenant to a building, has remained vacant and unproductive of](http://indiankanoon.org/doc/1253348/) rent for sixty or more consecutive days, the Chairperson shall remit or refund, as the case may be, one half of such portion of the property tax assessed on the rateable value thereof, as may be, proportionate to the number of days during which the said land has remained vacant and unproductive of rent. **[111. Power to require entry in assessment list of details of buildings.—(1) For the purpose of](http://indiankanoon.org/doc/557845/)** obtaining a partial remission or refund of tax, the owner of a building composed of separate tenements may request the Chairperson, at the time of the assessment of the building, to enter in the assessment list, in addition to the rateable value of the whole building, a note regarding any detail of the rateable value of each separate tenement. [(2) When any tenement, the rateable value of which has been thus separately recorded has remained](http://indiankanoon.org/doc/1907570/) vacant and unproductive of rent for sixty or more consecutive days, such portion of any tax assessed on ----- the rateable value of the whole building shall be remitted or refunded as would have been remitted or refunded if the tenement had been separately assessed. **[112. Notice to be given of the circumstances in which remission or refund is claimed.—No](http://indiankanoon.org/doc/786388/)** remission or refund under section 110 or section 111 shall be made unless notice in writing of the fact that land, building or tenement has become vacant and unproductive of rent has been given to the Chairperson, and no remission or refund shall take effect in respect of any period commencing more than fifteen days before delivery of such notice. **[113. What buildings are to be deemed vacant.—(1) For the purposes of sections 110 and 111 no](http://indiankanoon.org/doc/514834/)** land, building or tenement shall be deemed vacant if maintained as a pleasure resort or town or country house or be deemed unproductive of rent if let to a tenant who has a continuing right of occupation thereof, whether he is in actual occupation or not. [(2) The burden of proving the facts entitling any person to claim relief under sections 109, 110 or](http://indiankanoon.org/doc/1753356/) section 111, shall be upon him. **[114. Notice to be given of every occupation of vacant land or building.—The owner of any land,](http://indiankanoon.org/doc/257367/)** building or tenement in respect of which a remission or refund of tax has been given under section 110 or section 111, shall give notice of the re-occupation of such land, building or tenement within fifteen days of such re-occupation. _Appeals_ **[115. Appeal against assessment, etc.—(1) An appeal against the levy or assessment of any tax under](http://indiankanoon.org/doc/478278/)** this Act shall lie to the court of the district judges of Delhi. [(2) If, before or on the hearing of an appeal under this section, any question of law or usage having](http://indiankanoon.org/doc/851240/) the force of law or construction of a document arises, the Court of district judge on his own motion may, or on the application of any party to the appeal, shall, draw up a statement of the facts of the case, and the question so arising, and refer the statement with his opinion on the question for the decision of the High Court. [(3) On a reference being made under sub-section (2), the subsequent proceedings in the case shall be,](http://indiankanoon.org/doc/1947154/) as nearly as may be in conformity with the rules relating to references to the High Court contained in Order XLVI of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908). [(4) In every appeal, the costs shall be in the discretion of the Court.](http://indiankanoon.org/doc/1930760/) [(5) Costs awarded under this section to the Council shall be recoverable by the Council as an arrear of](http://indiankanoon.org/doc/843447/) tax due from the appellant. [(6) If the Council fails to pay any costs awarded to an appellant within ten days after the date of the](http://indiankanoon.org/doc/1312424/) order for payment thereof, the Court may order the Chairperson to pay the amount to the appellant. **[116. Conditions of right to appeal.—No appeal shall be heard or determined under section 115](http://indiankanoon.org/doc/681359/)** unless— [(a) the appeal is, in the case of a property tax, brought within thirty days next after the date of](http://indiankanoon.org/doc/389322/) authentication of the assessment list under section 70 (exclusive of the time requisite for obtaining a copy of the relevant entries therein) or, as the case may be, within thirty days of the date on which an amendment is finally made under section 72 and, in the case of any other tax, within thirty days next after the date of the receipt of the notice of assessment or of alteration of assessment or, if no notice has been given, within thirty days after the date of the presentation of the first bill or, as the case may be, the first notice of demand in respect thereof; [(b) the amount, if any, in dispute in the appeal has been deposited by the appellant in the office of](http://indiankanoon.org/doc/1462996/) the Council. **[117. Condonation of delay in preferring the appeal.—Notwithstanding anything contained in](http://indiankanoon.org/doc/1553454/)** clause (a) of section 116, an appeal may be admitted after the expiration of the period prescribed therefor by that section if the appellant satisfies the court that he had sufficient cause for not preferring the appeal within the period. ----- **[118. Finality of appellate orders.—The order of the Court confirming, setting aside or modifying an](http://indiankanoon.org/doc/913246/)** order in respect of any rateable value or assessment or liability to assessment or taxation shall be final: Provided that it shall be lawful for the Court upon application or on its own motion, to review any order passed by it in appeal within three months from the date of the order. _Miscellaneous provisions relating to taxation_ **[119. Power to inspect for purposes of determining rateable value or tax.—(1) The Chairperson](http://indiankanoon.org/doc/1313854/)** may, without giving any previous notice, enter upon and make an inspection of— [(a) any land or building for the purpose of determining the rateable value of such land or](http://indiankanoon.org/doc/950563/) building; [(b) any stable, garage, or coach house or any place wherein he may have reason to believe that](http://indiankanoon.org/doc/1822256/) there is any vehicle or animal liable to a tax under this Act; [(c) any place or premises which he has reason to believe are being used or are about to be used](http://indiankanoon.org/doc/1888201/) for any performance or show in respect of which the theatre-tax is payable or would be payable; [(d) any land, building or vehicle in or upon which any advertisement liable to tax under this Act](http://indiankanoon.org/doc/733170/) is exhibited or displayed. [(2) The Chairperson may, by written summons, require the attendance before him of any person](http://indiankanoon.org/doc/464333/) whom he has reason to believe to be liable to the payment of a tax in respect of a vehicle or animal, or of any servant of any such person and may examine such person or servant as to the number and description of vehicles and animals owned by or in the possession or under the control of such person; and every person or servant of such person so summoned shall be bound to attend before the Chairperson and to give information to the best of his knowledge and belief as to the said matters. **[120. Composition.—(1) The Chairperson may with the previous sanction of Council allow any](http://indiankanoon.org/doc/1557027/)** person to compound for any tax. [(2) Every sum due by reason of the composition of a tax under sub-section (1) shall be recovered as](http://indiankanoon.org/doc/609789/) an arrear of tax under this Act. **[121. Irrecoverable debts.—(1) The Chairperson may write off any sum due on account of any tax or](http://indiankanoon.org/doc/27334/)** of the costs of recovering any tax if such sum is, in his opinion irrecoverable: Provided that where the sum written off in favour of any person exceeds one thousand rupees, the previous sanction of the Council shall be first obtained. [(2) The Chairperson shall report to the Council every case in which any sum has been written off](http://indiankanoon.org/doc/1838751/) under sub-section (1). **[122. Obligation to disclose liability.—(1) The Chairperson may, by written notice, call upon any](http://indiankanoon.org/doc/755282/)** inhabitant of New Delhi to furnish such information as may be necessary for the purpose of ascertaining— [(a) whether such inhabitant is liable to pay any tax imposed by the Council under this Act;](http://indiankanoon.org/doc/1801312/) [(b) at what amount he should be assessed; or](http://indiankanoon.org/doc/1148223/) [(c) the rateable value of the land or building which he occupies and the name and address of the](http://indiankanoon.org/doc/1557663/) owner or lessee thereof. [(2) If any person when called upon under sub-section (1) to furnish information neglects to furnish it](http://indiankanoon.org/doc/1445670/) within the period specified in this behalf by the Chairperson or furnishes information which is not true to the best of his knowledge or belief, he shall be liable, in addition to any penalty which may be imposed under this Act, to be assessed at such amount on account of tax as the Chairperson may deem proper, and the assessment so made shall, subject to the provisions of this Act, be final. **[123. Immaterial error not to affect liability.—No assessment and no charge or demand on account](http://indiankanoon.org/doc/218540/)** of any tax shall be impeached or affected by reason only of any mistake in the name, residence, place of business or occupation of any person liable to pay the tax or in the description of any property or thing, or of any mistake in the amount of the assessment, charge or demand, or by reason only of clerical error or ----- other defect of form, if the directions contained in this Act and the bye-laws made thereunder have in substance and effect been complied with and it shall be enough in the case of any such tax on property or any assessment of value for the purpose of any such tax, if the property taxed or assessed is so described as to be generally known; and it shall not be necessary to name the owner or occupier thereof. **[124. General power of exemption.—The Council may, by resolution passed in this behalf, exempt](http://indiankanoon.org/doc/1754424/)** either wholly or in part from the payment of any tax levied under this Act, any class of persons or any class of property or goods. _Taxes on entertainment and betting_ **[125. Payment of proceeds of entertainment and betting taxes to Council.—The proceeds of the](http://indiankanoon.org/doc/814844/)** entertainment and betting taxes collected in New Delhi under the provisions of the U. P. Entertainment and Betting Tax Act, 1937 (U.P. Act 18 of 1937), as extended to the National Capital Territory of Delhi (which shall form part of the Consolidated Fund of the National Capital Territory of Delhi) reduced by the cost of collection as determined by the Government shall, if the Legislative Assembly of the National Capital Territory of Delhi by appropriation made by law in this behalf so provides, be paid to the Council for the performance of its functions under this Act. CHAPTER IX BORROWING **[126. Power of Council to borrow.—(1) The Council may, in pursuance of any resolution passed by](http://indiankanoon.org/doc/743728/)** it, borrow by way of debenture or otherwise on the security of all or any of the taxes, rates, cesses, fees and charges authorised by or under this Act, any sums of money which may be required— [(a) for acquiring any land which it has power to acquire;](http://indiankanoon.org/doc/468840/) [(b) for erecting any building which it has power to erect;](http://indiankanoon.org/doc/1382099/) [(c) for the execution of any permanent work, the provision of any plant, or the doing of any other](http://indiankanoon.org/doc/1382641/) thing which it has power to execute, provide or do, if the cost of carrying out the purpose in question ought to be spread over a term of years; [(d) to pay off any debt due to the Central Government or the Government;](http://indiankanoon.org/doc/1257674/) [(e) to repay a loan previously raised under this Act or any other Act previously in force; or](http://indiankanoon.org/doc/182844/) [(f) for any other purpose for which the Council is, by virtue of this Act or any other law for the](http://indiankanoon.org/doc/515292/) time being in force, authorised to borrow: Provided that— [(i) no loan shall be raised without the previous sanction of the Central Government or without](http://indiankanoon.org/doc/1252920/) previous publication of the application for sanction under the Local Authorities Loans Act, 1914 (9 of 1914), and the rules made thereunder; and [(ii) the amount of loan, the rate of interest and the terms including the date of floatation, the time](http://indiankanoon.org/doc/1697133/) and method of the repayment and the like shall be subject to the approval of the Central Government. [(2) When any sum of money has been borrowed under sub-section (1), no portion of any sum of](http://indiankanoon.org/doc/623887/) money borrowed for any of the purposes referred to in clause (c) of sub-section (1) shall be applied to the payment of salaries and allowances to any officers or other employees other than those exclusively employed in connection with the carrying out of that purpose. **[127. Time for repayment of money borrowed under section 126.—The time for the repayment of](http://indiankanoon.org/doc/410922/)** any money borrowed under section 126 shall in no case exceed sixty years and the time for repayment of any money borrowed for the purpose of discharging any previous loan shall not, except with the express sanction of Central Government, extend beyond the unexpired portion of the period for which such previous loan was sanctioned. **[128. Form and effect of debenture.—All debentures issued under this Chapter shall be in such form](http://indiankanoon.org/doc/483220/)** as the Council may, with the previous sanction of the Central Government, determine and shall be ----- transferable in such manner as shall be therein expressed; and the right to sue in respect of the moneys secured by any of such debentures shall vest in the holders thereof for the time being without any preference by reason of some such debentures being prior in date to others. **[129. Payment to survivors of joint payees.—When any debenture or security issued under this Act](http://indiankanoon.org/doc/338459/)** is payable to two or more persons jointly, and either or any of them dies, then, notwithstanding anything in section 45 of the Indian Contract Act, 1872 (9 of 1872), the debenture or security shall be payable to the survivor or survivors of such person: Provided that nothing in this section shall affect any claim by legal representative of a deceased person against such survivor or survivors. **[130. Receipt by joint holders for interest or dividend.—When two or more persons are joint](http://indiankanoon.org/doc/989279/)** holders of any debenture or security issued under this Act, any one of such persons may give an effectual receipt for any interest or dividend payable in respect of such debenture or security, unless notice to the contrary has been given to the Council by the other of such persons. **[131. Maintenance and investment of sinking funds.—(1) The Council shall maintain sinking funds](http://indiankanoon.org/doc/318537/)** for the repayment of money borrowed on debentures issued and shall pay every year into such sinking funds such sum as will be sufficient for the repayment within the period fixed for the loan of all moneys borrowed on the debentures issued. [(2) All money paid into the sinking funds shall, as soon as possible, be invested by the Chairperson in](http://indiankanoon.org/doc/106808/) public securities and every such investment shall be reported by the Chairperson to the Council within fifteen days. [(3) All dividends and other sums received in respect of any such investment shall, as soon as possible](http://indiankanoon.org/doc/1794242/) after receipt, be paid into the sinking funds and invested in the manner laid down in sub-section (2). [(4) When any part of a sinking fund is invested in New Delhi municipal debentures, or is applied in](http://indiankanoon.org/doc/1928775/) paying off any part of a loan before the period fixed for repayment, the interest which would otherwise have been payable on such debentures or on such part of the loan shall be paid into the sinking fund and invested in the manner laid down in sub-section (2). [(5) Any investment made under this section may, subject to the provision of sub-section (2), be varied](http://indiankanoon.org/doc/1926488/) or transposed. **[132. Application of sinking funds.—A sinking fund or any part thereof shall be applied in or](http://indiankanoon.org/doc/1764407/)** towards the discharge of the loan or a part of the loan for which such fund was created, and until such loan or part is wholly discharged shall not be applied for any other purpose: Provided that when any loan or part thereof has been consolidated under section 134, the Chairperson shall transfer to the sinking fund of the consolidated loan such part of the sinking funds of the original loans as may be proportionate to the amount of the original loans incorporated in the consolidated loan. **[133. Annual statement by Chairperson.—(1) The Chairperson shall, at the end of every year,](http://indiankanoon.org/doc/1823296/)** submit to the Council a statement showing— [(a) the amount which has been invested during the year under section 131;](http://indiankanoon.org/doc/682872/) [(b) the date of the last investment made previous to the submission of the statement;](http://indiankanoon.org/doc/994170/) [(c) the aggregate amount of the securities then in his hand; and](http://indiankanoon.org/doc/1568432/) [(d) the aggregate amount which has up to the date of the statement been applied under section](http://indiankanoon.org/doc/892266/) 132, in or towards discharging loans. [(2) Every such statement shall be published in the Official Gazette.](http://indiankanoon.org/doc/1532164/) **[134. Power of Council to consolidate loans.—(1) Notwithstanding anything to the contrary](http://indiankanoon.org/doc/1583681/)** contained in this Chapter, the Council may consolidate all or any of its loans and for that purpose may invite tenders for a new loan (to be called “the New Delhi Municipal Council Consolidated Loan, 19—”) and invite holders of the municipal debentures to exchange their debentures for scrips of such loan. ----- [(2) The terms of any such consolidated loan and the form of its scrip and the rates at which exchange](http://indiankanoon.org/doc/1275971/) into such consolidated loan shall be permitted shall be subject to the prior approval of the Central Government. [(3) The period for the exchanging of any such consolidated loan shall not, without the sanction of the](http://indiankanoon.org/doc/126400/) Central Government, extend beyond the farthest date within which any of the loans to be consolidated would otherwise be repayable. [(4) The Council shall provide for the repayment of any such consolidated loan by a sinking fund in](http://indiankanoon.org/doc/1487135/) the manner laid down in section 131 having regard to the amount transferred to such sinking fund under section 132. **[135. Priority of payment for interest and repayment of loans over other payments.—(1) All](http://indiankanoon.org/doc/1678514/)** payments due from the Council for interest on and repayment of loans shall be made in priority to all other payments due from the Council. [(2) If any money borrowed or deemed to have been borrowed by the Council from Central](http://indiankanoon.org/doc/1049194/) Government or the Government or any interest or costs due in respect thereof be not repaid according to the conditions of the loan, the Central Government or the Government may attach the New Delhi Municipal Fund or any part thereof. [(3) After such attachment no person except an officer appointed in this behalf by the Central](http://indiankanoon.org/doc/1798955/) Government shall in any way deal with the attached fund; but such officer may do all acts in respect thereof which any municipal authority, officer or other employee might have done if such attachment has not taken place, and may apply the proceeds in satisfaction of the arrears and of all interests and cost due in respect thereof and of all expenses caused by the attachment and subsequent proceedings: Provided that no such attachment shall defeat or prejudice any debt for which the fund was previously charged in accordance with law; and all such prior charges shall be paid out of the proceeds of the fund before any part of the proceeds is applied to satisfaction of the debt due to the Central Government or the Government. **[136. Power to make regulations.—The Council may make regulations to carry out the purposes of](http://indiankanoon.org/doc/415135/)** this Chapter including, in particular, the issue of duplicates in case of loss of debentures by theft, destruction or otherwise, and renewal of debentures on payment of fees prescribed in this behalf by such regulations. CHAPTER X PROPERTY AND CONTRACTS _Property_ **[137. Acquisition of property.—The Council shall, for the purpose of this Act, have power to acquire](http://indiankanoon.org/doc/1933873/)** and hold movable and immovable property, or any interest therein. **[138. Acquisition of immovable property by agreement.—Whenever the Council decides to acquire](http://indiankanoon.org/doc/82815/)** any immovable property for the purpose of this Act, the Chairperson shall acquire such property on behalf of the Council by agreement on such terms and at such price as may be approved by the Council. **[139. Procedure when immovable property cannot be acquired by agreement.—Whenever the](http://indiankanoon.org/doc/26113/)** Chairperson is unable to acquire any immovable property under section 138 by agreement, the Central Government may at the request of the Chairperson procure the acquisition thereof under the provisions of the Land Acquisition Act, 1894 (1 of 1894), and on payment by the Council of the compensation awarded under that Act and of the charges incurred by that Government in connection with the proceedings, the land shall vest in the Council. **[140. Disposal of movable property.—(1) With respect to the disposal of movable property](http://indiankanoon.org/doc/204170/)** belonging to Council the Chairperson may, in his discretion, dispose of by sale or otherwise, any movable property belonging to the Council not exceeding in value in each instance one thousand rupees, or such higher amount as the Council may prescribe, or let out on hire any movable property or grant a lease of ----- any immovable property belonging to the Council including any right of gathering and taking fruits and the like, for a period not exceeding one year at a time. [(2) In cases not covered by sub-section (1), the Chairperson may, with the sanction of the Council,](http://indiankanoon.org/doc/1970080/) lease, sell, let out on hire or otherwise transfer any movable property belonging to the Council. **[141. Disposal of immovable property.—(1) The Chairperson may, with the sanction of the Council,](http://indiankanoon.org/doc/663307/)** lease, sell, let out on hire or otherwise transfer any immovable property belonging to the Council. [(2) The consideration for which any immovable property may be sold, leased or otherwise transferred](http://indiankanoon.org/doc/265457/) shall not be less than the value at which such immovable property could be sold, leased or otherwise transferred in normal and fair competition. [(3) The sanction of Council under section 140 or this section may be given either generally for any](http://indiankanoon.org/doc/855360/) class of cases or specially for any particular case. [(4) Subject to any conditions or limitation that may be specified in any other provisions of this Act](http://indiankanoon.org/doc/1205629/) the foregoing provisions of section 140 and this section shall apply to every disposal of property belonging to the Council made under, or for any purpose of this Act. [(5) Every case of disposal of property under sub-section (1) of section 140 shall be reported by the](http://indiankanoon.org/doc/1006212/) Chairperson without delay to the Council. _Contracts_ **[142. Contracts by the Council.—Subject to the provisions of sections 143 and 144 the Council shall](http://indiankanoon.org/doc/531873/)** be competent to enter into and perform any contract necessary for the purposes of this Act. **[143. Procedure for making contracts.—With respect to the making of contracts, the following](http://indiankanoon.org/doc/1548219/)** provisions shall have effect, namely:— [(a) every such contract shall be made on behalf of the Council by the Chairperson;](http://indiankanoon.org/doc/1272363/) [(b) no such contract, for any purpose which in accordance with any provision of this Act the](http://indiankanoon.org/doc/327208/) Chairperson may not carry out without the approval or sanction of the Council shall be made by him until and unless such approval or sanction has been duly obtained; [(c) no contract which will involve an expenditure exceeding ten lakh rupees or such higher](http://indiankanoon.org/doc/423629/) amount as the Central Government may from time to time, fix, shall be made by the Chairperson unless the same is previously approved by the Council; and [(d) every contract made by the Chairperson involving an expenditure exceeding one lakh rupees](http://indiankanoon.org/doc/1234422/) but not exceeding ten lakh rupees or such higher amount as may be fixed under clause (c) shall be reported by him, within one month after the same has been made to the Council. **[144. Mode of executing contracts.—(1) The mode of executing contracts under this Act shall be](http://indiankanoon.org/doc/815265/)** prescribed by bye-laws made in this behalf. [(2) No contract which is not made in accordance with the provisions of this Act and the bye-laws](http://indiankanoon.org/doc/578941/) made thereunder shall be binding on the Council. CHAPTER XI WATER SUPPLY, DRAINAGE AND SEWAGE COLLECTION _General_ **[145. Definitions.—In this Chapter, unless the context otherwise requires, the following words and](http://indiankanoon.org/doc/623391/)** expressions in relation to water supply shall have the respective meanings given below, namely:— [(1) “communication pipe” means,—](http://indiankanoon.org/doc/1113177/) [(a) where the premises supplied with water abut on the part of the street in which the main is](http://indiankanoon.org/doc/464064/) laid, and the service pipe enters those premises otherwise than through the outer wall of a building abutting on the street and has a stopcock placed in those premises and as near to the ----- boundary of that street as is reasonably practicable, so much of the service pipe as lies between the main and that stopcock; [(b) in any other case, so much of the service pipe as lies between the main and the boundary](http://indiankanoon.org/doc/1988222/) of the street in which the main is laid, and includes the ferrule at the junction of the service pipe with the main, and also— [(i) where the communication pipe ends at a stopcock, that stopcock; and](http://indiankanoon.org/doc/1007616/) [(ii) any stopcock fitted on the communication pipe between the end thereof and the main;](http://indiankanoon.org/doc/1667483/) [(2) “main” means a pipe laid by the Council for the purpose of giving a general supply of water](http://indiankanoon.org/doc/97063/) as distinct from a supply to individual consumers and includes any apparatus used in connection with such a pipe; [(3) “service pipe” means so much of any pipe for supplying water from a main to any premises as](http://indiankanoon.org/doc/1828355/) is subject to water pressure from that main, or would be so subject but for the closing of some tap; [(4) “supply pipe” means so much of any service pipe as is not a communication pipe;](http://indiankanoon.org/doc/669465/) [(5) “trunk main” means a main constructed for the purpose of conveying water from a source of](http://indiankanoon.org/doc/398401/) supply to a filter or reservoir or from one filter or reservoir to another filter or reservoir, or for the purpose of conveying water in bulk from one part of the limits of supply to another part of those limits, or for the purpose of giving or taking a supply of water in bulk; [(6) “water fittings” includes pipes (other than mains), taps, cocks, valves, ferrules, meters,](http://indiankanoon.org/doc/1674328/) cisterns, baths and other similar apparatus used in connection with the supply and use of water. **[146. Council may carry out surveys and formulate proposals.—(1) The Council may—](http://indiankanoon.org/doc/1605028/)** [(a) carry out a survey of the existing consumption of and demand for water supplies in New Delhi](http://indiankanoon.org/doc/1434940/) and of the water resources in or likely to be made available in New Delhi; [(b) prepare an estimate of the future water supply requirements of New Delhi;](http://indiankanoon.org/doc/894768/) [(c) carry out a survey of the existing quantity of sewage collection;](http://indiankanoon.org/doc/1026628/) [(d) formulate proposals as to—](http://indiankanoon.org/doc/555435/) [(i) the existing or future water supply requirements of New Delhi;](http://indiankanoon.org/doc/1244003/) [(ii) the existing or future sewage collection requirement in New Delhi including proposals for](http://indiankanoon.org/doc/1689563/) the manner in which and the place or places at which sewage should be carried and collected. [(2) If the Council is of the opinion that the works and other properties for the time being vested in the](http://indiankanoon.org/doc/1693762/) Council, are inadequate for the purpose of sufficient supply of water or for the purpose of efficient collection of sewage under this Act it may take step in accordance with the provisions of this Act for the construction of additional works, whether within New Delhi or outside New Delhi with the approval of the Administrator and for the acquisition of additional properties for such works. _Water supply_ **[147. Functions in relation to water supplies.—(1) It shall be the duty of the Council to take steps](http://indiankanoon.org/doc/1296293/)** from time to time— [(a) for ascertaining the sufficiency and wholesomeness of water supplies within New Delhi and](http://indiankanoon.org/doc/1844839/) receiving bulk supplies of water from the authority prescribed by the Central Government; [(b) for providing a supply of wholesome water in pipes to every part of New Delhi in which there](http://indiankanoon.org/doc/1953925/) are houses, for the domestic purposes of the occupants thereof, and for taking the pipes affording that supply to such point or points as will enable the houses to be connected thereto at a reasonable cost, so, however, that this clause shall not require the Council to do anything which is not practicable at a reasonable cost or to provide such a supply to any part of New Delhi where such a supply is already available at such point or points aforesaid; [(c) for providing as far as possible, a supply of wholesome water otherwise than in pipes to every](http://indiankanoon.org/doc/157244/) part of New Delhi in which there are houses, for the domestic purposes of the occupants thereof and ----- to which it is not practicable to provide a supply in pipes at a reasonable cost, and in which danger to health arises from the insufficiency or unwholesomeness of the existing supply and a public supply is required and can be provided at a reasonable cost, and for securing that such supply is available within a reasonable distance of every house in that part. [(2) If any question arises under clause (b) of sub-section (1) as to whether anything is or is not](http://indiankanoon.org/doc/600918/) practicable at a reasonable cost or as to the point or points to which pipes must be taken in order to enable houses to be connected to them at a reasonable cost, or under clause (c) thereof, as to whether a public supply can be provided at a reasonable cost, the Council shall determine that question and thereupon it shall give effect to that determination. [(3) Without prejudice to the provisions of sub-section (1), the Chairperson shall, for the purpose of](http://indiankanoon.org/doc/695597/) securing, so far as is reasonably practicable, that every house has available a sufficient supply of wholesome water for domestic purposes, exercise his powers under this Act of requiring the owners of houses to provide a supply of water thereto. [(4) The Council shall secure that the water in any water works belonging to the Council from which](http://indiankanoon.org/doc/1670710/) the water is supplied for domestic purpose is wholesome. **[148. Water supplied for domestic purposes not to be used for non-domestic purposes.—No](http://indiankanoon.org/doc/1253800/)** person shall, without the written permission of the Chairperson, use or allow to be used for other than domestic purposes water supplied for domestic purposes. **[149. Supply of water for domestic purposes not to include any supply for certain specified](http://indiankanoon.org/doc/1024436/)** **purposes.—The supply of water for domestic purposes under this Act shall not be deemed to include any** supply— [(a) for animals or for washing vehicles where such animals or vehicles are kept for sale or hire;](http://indiankanoon.org/doc/1302653/) [(b) for any trade, manufacture or business;](http://indiankanoon.org/doc/485837/) [(c) for fountains, swimming baths or any ornamental or mechanical purpose;](http://indiankanoon.org/doc/844939/) [(d) for gardens or for purposes of irrigation;](http://indiankanoon.org/doc/1716079/) [(e) for making or for watering streets; or](http://indiankanoon.org/doc/1969073/) [(f) for building purposes.](http://indiankanoon.org/doc/864570/) **[150. Power to supply water for non-domestic purposes.—(1) The Chairperson may supply water](http://indiankanoon.org/doc/1939399/)** for any purpose other than a domestic purpose on such terms and conditions consistent with this Act and the bye-laws made thereunder as may be laid down in this behalf by the Council on receiving a written application specifying the purpose for which the supply is required and the quantity likely to be consumed. [(2) When a application under sub-section (1) is received, the Chairperson may subject to such charges](http://indiankanoon.org/doc/1324860/) and rates as may be fixed by the Council, place or allow to be placed the necessary pipes and water fittings of such dimensions and character as may be prescribed by bye-laws and may arrange for the supply of water through such pipes and fittings. **[151. Use of water for extinguishing fire.—Water may be used for extinguishing fire.](http://indiankanoon.org/doc/429626/)** **[152. Power to require water supply to be taken.—(1) If it appears to the Chairperson that any](http://indiankanoon.org/doc/542168/)** premises in New Delhi are without supply of wholesome water for domestic purposes or that the existing supply of water for domestic purposes available for the persons usually occupying or employed in such premises is inadequate or on any sanitary grounds objectionable, the Chairperson may by notice in writing require the owner of the premises or the persons primarily liable for the payment of the property tax in respect of the same— [(a) to take a connection from the municipal water works adequate for the requirements of the](http://indiankanoon.org/doc/938278/) persons occupying or employed in the premises, or to take such additional or enlarged connection or connections from the municipal water works; and [(b) to provide, supply pipes and water fittings, install and work a pump and do all such works and](http://indiankanoon.org/doc/1706027/) take all such measures as may, in the opinion of the Chairperson be necessary for the above purposes. ----- [(2) The Chairperson may in the notice issued under sub-section (1) specify—](http://indiankanoon.org/doc/1244575/) [(a) the size, material and quality of the pipes and water fittings to be provided;](http://indiankanoon.org/doc/1376883/) [(b) the position of the pipes and water fittings to be provided;](http://indiankanoon.org/doc/1157121/) [(c) the means of access for the inspection of the pipes and water fittings;](http://indiankanoon.org/doc/118835/) [(d) the type of pump that should be installed and the period or periods of the day for which it](http://indiankanoon.org/doc/1456368/) should be kept working; [(e) the period within which any or all the requisitions specified in the notice should be carried out.](http://indiankanoon.org/doc/1801111/) **[153. New premises not to be occupied without arrangement for water supply.—It shall not be](http://indiankanoon.org/doc/1404154/)** lawful for the owner of any premises which may be newly constructed or reconstructed within any portion of New Delhi to occupy it or cause or permit it to be occupied until he has obtained a certificate from the Chairperson that there is provided within, or within a reasonable distance of, the premises such supply of wholesome water as appears to the Chairperson to be adequate for the persons who may occupy, or be employed in, such premises for their domestic purposes. **[154. Public gratuitous water supply.—(1) The Chairperson with the approval of the Council may](http://indiankanoon.org/doc/644522/)** provide gratuitous supply of wholesome water to the public within New Delhi and may, for that purpose, erect public hydrants or other conveniences. [(2) The Chairperson may with like approval close a public hydrant or other convenience when it is no](http://indiankanoon.org/doc/1874372/) longer required for the supply of wholesome water to the public. **[155. Power to lay mains.—(1) The Chairperson may lay a main whether within or without the local](http://indiankanoon.org/doc/1144836/)** limits of the Council— [(a) in any street; and](http://indiankanoon.org/doc/170590/) [(b) with the consent of every owner and occupier of any land not forming part of a street, in, over](http://indiankanoon.org/doc/350591/) or on that land, and may, from time to time, inspect, repair, alter or renew or may at any time remove any main so laid whether by virtue of this section or otherwise: Provided that where a consent required for the purpose of this sub-section is withheld, the Chairperson may, after giving the owner or occupier of the land a written notice of his intention so to do, lay the main in, over or on that land even without such consent. [(2) Where the Chairperson, in exercise of the powers under this section, lays a main in, over or on any](http://indiankanoon.org/doc/1046768/) land not forming part of a street, or inspects, repairs, alters, renews or removes a main so laid down in, over or on any such land, he shall pay compensation to every person interested in that land for any damage done to, or injurious affection of that land by reason of the inspection, laying, repair, alteration, renewal or removal of the main. **[156. Power to lay service pipes, etc.—(1) The Chairperson may, in any street whether within or](http://indiankanoon.org/doc/80375/)** without the local limits of the Council lay such service pipes with such stopcocks and other water fittings as he may deem necessary for supplying water to premises and may, from time to time, inspect, repair, alter or renew and may, at any time, remove any service pipe laid in a street whether by virtue of this section or otherwise. [(2) Where a service pipe has been lawfully laid in, over, or on the land not forming part of a street,](http://indiankanoon.org/doc/964654/) the Chairperson may from time to time enter upon that land and inspect, repair, alter, renew or remove the pipe or lay a new pipe in substitution thereof but shall pay compensation for any damage done in the course of such action. **[157. Provision of fire hydrants.—(1) The Chairperson shall fix hydrants on water mains (other than](http://indiankanoon.org/doc/1037741/)** trunk mains) at such places as may be most convenient for affording a supply of water for extinguishing any fire which may break out and shall keep in good order and from time to time renew every such hydrant. [(2) To denote the situation of every hydrant placed under this section, letters, marks or figures shall](http://indiankanoon.org/doc/1832243/) be displayed prominently on some wall, building or other structure near such hydrant. ----- [(3) As soon as any such hydrant is completed, the Chairperson shall deposit a key thereof at each](http://indiankanoon.org/doc/983837/) place where a public fire engine is kept and in such other places as he deems necessary. [(4) The Chairperson may, at the request and expense of the owner or occupier of any factory,](http://indiankanoon.org/doc/1449665/) workshop, trade premises or place of business situated in or near a street in which a pipe is laid (and not being a trunk main and being of sufficient dimensions to carry a hydrant), fix on the pipe and keep in good order and from time to time renew one or more fire hydrants, to be used only for extinguishing fires as near as conveniently may be to that factory, workshop, trade premises or place of business. [(5) The Chairperson shall allow all persons to take water for extinguishing fires from any pipe on](http://indiankanoon.org/doc/1933264/) which a hydrant is fixed without any payment. **[158. Supply of water.—(1) The Chairperson may permit the owner, lessee or occupier of any](http://indiankanoon.org/doc/333432/)** premises to connect the premises by means of supply pipes for conveying to the premises a supply of water for his domestic purposes from the municipal water works subject to the requirements specified in section 159 and the conditions, if any, laid down in the bye-laws made in this behalf. [(2) The owner of every premises connected with the municipal water works, shall, when so required](http://indiankanoon.org/doc/557096/) by the Chairperson, set up electric pumps or other contrivances whereby water may be caused to reach to the top of the top-most story of such premises. **[159. Laying of supply pipes, etc.—(1) An owner, lessor or occupier of any premises, who desires to](http://indiankanoon.org/doc/1797504/)** have a supply of water for his domestic purposes from the municipal water works, shall comply with the following requirements, namely:— [(a) he shall give to the Chairperson fourteen days‟ notice of his intention to lay the necessary](http://indiankanoon.org/doc/1033652/) supply pipe; and [(b) he shall lay the supply pipe at his own expense, having first obtained, as respects any land not](http://indiankanoon.org/doc/1246756/) forming part of a street, the consent of the owners or occupiers thereof: Provided that where any part of the supply pipe is to be laid in a street, he shall not himself break open the street or lay that part of the pipe. [(2) Upon the receipt of such a notice as is referred to in sub-section (1), the Chairperson shall lay the](http://indiankanoon.org/doc/789865/) necessary communication pipe and any part of the supply pipe which is to be laid in street shall connect the communication pipe with the supply pipe. [(3) The expenses, reasonably incurred by the Chairperson in executing the work which he is required](http://indiankanoon.org/doc/1612719/) or authorised by this section to execute, shall be repaid to him by the person to whom the notice was given and may be recovered from such person as an arrear of tax under this Act: Provided that if under the provisions of this section, the Chairperson lays a main in lieu of a supply pipe, the additional cost incurred in laying the main instead of a supply pipe shall be borne by him. [(4) Notwithstanding anything contained in the foregoing provisions of this section, the Chairperson](http://indiankanoon.org/doc/1265771/) may, within a reasonable time after the service of the notice upon him, require the person giving the notice either to pay to him, in advance the cost of the work, as estimated by the Chairperson or any officer authorised by in this behalf or to give security for payment thereof to his satisfaction. [(5) If any payment made to the Chairperson under sub-section (4) exceeds the expenses which the](http://indiankanoon.org/doc/1608871/) Chairperson would be entitled to recover from the person giving the notice, the excess shall be repaid by him and if and so far as those expenses are not covered by the payment, the Chairperson may recover the balance from such person as an arrear of tax under this Act. **[160. Power to require separate service pipes.—(1) The Chairperson may require the provision of a](http://indiankanoon.org/doc/632081/)** separate service pipe for each of the premises supplied or to be supplied by him with water. [(2) If, in the case of any premises already supplied with water but not having a separate service pipe,](http://indiankanoon.org/doc/395500/) the Chairperson gives notice to the owner of the premises requiring the provision of such a pipe, the owner shall, within three months, lay so much of the required pipe as will constitute a supply pipe and is not required to be laid in a street, and the Chairperson, shall, within fourteen days after the owner has done so, lay so much of the required pipe as will constitute a communication pipe or a supply pipe to be laid in a street and make all necessary communications. ----- [(3) If an owner upon whom a notice has been served under sub-section (2) fails to comply therewith](http://indiankanoon.org/doc/1757950/) the Chairperson may himself execute the work which the owner was required to execute and recover the expenses reasonably incurred by him in executing the work as an arrear of tax under this Act. **[161. Stopcocks.—(1) On every service pipe laid after the commencement of this Act the Chairperson,](http://indiankanoon.org/doc/808783/)** shall, and on every service pipe laid before such commencement, Chairperson may, fit a stopcock enclosed in a cover box or a pit of such size as may be reasonably necessary. [(2) Every stopcocks fitted on a service pipe after the commencement of this Act shall be placed in](http://indiankanoon.org/doc/1740315/) such position as the Chairperson deems most convenient: Provided that— [(a) a stopcock in private premises shall be placed as near as is reasonably practicable to the street](http://indiankanoon.org/doc/239572/) from which the service pipe enters those premises; and [(b) a stopcock in a street shall be placed as near to the boundary thereof as is reasonably](http://indiankanoon.org/doc/1981022/) practicable. **[162. Power of Chairperson to provide meters.—(1) The Chairperson may provide a water-meter](http://indiankanoon.org/doc/1025120/)** and attach the same to the service pipe in premises connected with municipal water works. [(2) The expense of providing and attaching a meter under sub-section (1) shall be paid out of the New](http://indiankanoon.org/doc/1879041/) Delhi Municipal Fund. [(3) The use, rent to be paid for such use, maintenance and testing of meters shall be regulated by](http://indiankanoon.org/doc/1888556/) orders made by the Council in this behalf. **[163. Presumption as to correctness of meters.—Whenever water is supplied under this Chapter](http://indiankanoon.org/doc/1206623/)** through a meter it shall be presumed that the quantity indicated by the meter has been consumed until the contrary is proved. **[164. Prohibition of waste or misuse of water.—(1) No person shall wilfully or negligently cause or](http://indiankanoon.org/doc/1589801/)** suffer any water fitting which he is liable to maintain,— [(a) to be or remain so out of order or so in need of repair, or](http://indiankanoon.org/doc/1455896/) [(b) to be or remain so constructed or adapted or to be so used,](http://indiankanoon.org/doc/681443/) that the water supplied to him by the Council is or is likely to be wasted, misused or unduly consumed, or contaminated before use, or that foul air or any impure matter is likely to return into any pipe belonging to, or connected with, a pipe belonging to the Council. [(2) If any water fittings which any person is liable to maintain is in such a condition, or so constructed](http://indiankanoon.org/doc/259865/) or adapted as aforesaid, the Chairperson, without prejudice to his right to proceed against the person under any other provision of this Act may require that person to carry out any necessary repairs or alterations and if he fails to do so within forty-eight hours, may himself carry out the work and recover from him the expenses reasonably incurred by him in so doing, as an arrear of tax. **[165. Power to enter premises to detect waste or misuse of water.—The Chairperson or any](http://indiankanoon.org/doc/1749505/)** municipal officer authorised by the Chairperson in writing may, between sunrise and sunset, enter any premises supplied with water by the Council in order to examine if there be any waste or misuse of such water and the Chairperson or such officer shall not be refused admittance to the premises nor shall be obstructed by any person in making his examination. **[166. Power to test water fittings.—The Chairperson may test any water fitting used in connection](http://indiankanoon.org/doc/1400934/)** with water supplied by the Council. **[167. Power to close or restrict use of water from polluted source of supply.—(1) If the](http://indiankanoon.org/doc/917691/)** Chairperson is of opinion that the water in or obtained from any well, tank or other source of supply not vested in the Council, being water which is or is likely to be used for domestic purposes, or for the preparation of food or drink for human consumption, is or is likely to become so polluted as to be prejudicial to health, the Chairperson may, after giving the owner or occupier of the premises in which the source of supply is situated a reasonable opportunity of being heard, by order, direct that the source of supply be permanently or temporarily closed or cut off or the water therefrom be used for certain purposes only or make such order as appears to him necessary to prevent injury or danger to the health of persons using the water or consuming food or drink prepared therewith or therefrom. ----- [(2) Before making any order under this section, the Chairperson may cause the water to be analysed](http://indiankanoon.org/doc/1241935/) at the cost of the Council. [(3) If the person to whom an order is made under this section fails to comply therewith, the](http://indiankanoon.org/doc/321053/) Chairperson may do whatever may be necessary for giving effect to the order, and any expenses reasonably incurred by him in so doing may be recovered by him from the person in default as an arrear of tax under this Act. **[168. Water pipes, etc., not to be placed where water will be polluted.—(1) No water pipes shall be](http://indiankanoon.org/doc/445181/)** laid in a drain or on the surface of an open channel or house gully or within six meters of a cesspool or in any position where the pipe is likely to be injured or the water therein polluted; and no well or tank and except with the consent of the Chairperson, no cistern shall be constructed within six meters of a latrine, or cesspool. [(2) No latrine, or cesspool shall be constructed or made within six meters of any well, tank, water](http://indiankanoon.org/doc/1819096/) pipe or cistern or in any position where the pipe, well, tank or cistern is likely to be injured or the water therein polluted. **[169. Power to cut off private water supply or to turn off water.—(1) The Chairperson may,](http://indiankanoon.org/doc/1803304/)** subject to the conditions laid down in this behalf in the bye-laws, cut off or turn off water supply from any municipal water work to any premises or part thereof to which a private water supply is furnished by the Council. [(2) The expenses of cutting off or turning off water supply shall be paid by the owner or occupier of](http://indiankanoon.org/doc/459488/) premises and shall be recoverable from the owner or occupier as an arrear of tax under this Act. **[170. Joint and several liability of owners and occupiers for offence in relation to water](http://indiankanoon.org/doc/957718/)** **supply.—If any offence relating to water supply is committed under this Act on any premises connected** with the municipal water works, the owner, the person primarily liable for the payment of property tax and occupiers of the said premises shall be jointly and severally liable for such offence. _Drainage and sewerage_ **[171. Public drains, etc., to vest in the Council.—(1) All public drains, all drains in, alongside or](http://indiankanoon.org/doc/1005223/)** under any public street, and all sewage collection works, whether constructed out of the New Delhi Municipal Fund or otherwise and all works, materials and things appertaining thereto, which are situated in New Delhi shall vest in the Council. [(2) All public and other drains which are vested in the Council are hereafter in this Act referred to as](http://indiankanoon.org/doc/1471373/) municipal drains. [(3) For the purposes of enlarging, deepening or otherwise repairing or maintaining any such drain or](http://indiankanoon.org/doc/447774/) sewage collection work so much of the sub-soil appertaining thereto as may be necessary for the said purpose shall be deemed all so to vest in the Council. [(4) All drains and ventilation shafts, pipes and all appliances and fittings connected with the drainage](http://indiankanoon.org/doc/1279544/) works constructed, erected or set up out of the New Delhi Municipal Fund in or upon premises not belonging to the Council whether— [(a) before or after the commencement of this Act, and](http://indiankanoon.org/doc/1256208/) [(b) for the use of the owner or occupier of such premises or not,](http://indiankanoon.org/doc/1288407/) shall, unless the Council has otherwise determined, or does at any time otherwise determine, vest and be deemed always to have vested in the Council. **[172. Control of drains and sewage collection works.—(1) All municipal drains, all sewage](http://indiankanoon.org/doc/1737971/)** collection and all works, materials and things appertaining thereto shall be under the control of the Chairperson. [(2) The Chairperson shall maintain and keep in repair all municipal drains and sewage collection](http://indiankanoon.org/doc/1178052/) works and when authorised by the council, shall construct as many new drains and sewage collection works as may from time to time be necessary for effectual drainage and sewage collection. ----- **[173. Certain matters not to be passed into municipal drains.—(1) No person shall throw, empty,](http://indiankanoon.org/doc/1610127/)** or turn into any municipal drain or into any drain communicating with a municipal drain— [(a) any matter likely to injure the drain or to interfere with the free flow of its contents, or to](http://indiankanoon.org/doc/421306/) affect prejudicially the treatment and disposal of its contents; or [(b) any chemical, refuse or waste steam, or any liquid of a temperature higher than forty-five](http://indiankanoon.org/doc/1801219/) degrees centigrade, being refuse or steam which, or a liquid which when so heated, is, either alone or in combination with the contents of the drain, dangerous, or the cause of a nuisance, or prejudicial to health; or [(c) any dangerous petroleum.](http://indiankanoon.org/doc/836362/) [(2) In this section, the expression “dangerous petroleum” has the same meaning as in the Petroleum](http://indiankanoon.org/doc/1758339/) Act, 1934 (30 of 1934). **[174. Application by owners and occupiers to drain into municipal drains.—(1) Subject to such](http://indiankanoon.org/doc/314696/)** conditions as may be prescribed by bye-laws made in this behalf, the owner or occupier of any premises having a private drain, or the owner of any private drain within New Delhi may apply to the Chairperson to have his drain made to communicate with the municipal drains and thereby to discharge foul water and surface water from those premises or that private drain: Provided that nothing in this sub-section shall entitle any person— [(a) to discharge directly or indirectly into any municipal drain—](http://indiankanoon.org/doc/1127701/) [(i) any trade effluent from any trade premises except in accordance with bye-laws made in](http://indiankanoon.org/doc/1562927/) this behalf; or [(ii) any liquid or other matter the discharge of which into municipal drains is prohibited by or](http://indiankanoon.org/doc/1885688/) under this Act or any other law; or [(b) where separate municipal drains are provided for foul water and for surface water to discharge](http://indiankanoon.org/doc/3025/) directly or indirectly— [(i) foul water into a drain provided for surface water; or](http://indiankanoon.org/doc/1276969/) [(ii) except with the permission of the Chairperson, surface water into a drain provided for](http://indiankanoon.org/doc/1219620/) foul water; or [(c) to have his drains made to communicate directly with a strom-water overflow drain.](http://indiankanoon.org/doc/629504/) [(2) Any person desirous of availing himself of the provisions of sub-section (1) shall give to the](http://indiankanoon.org/doc/1942173/) Chairperson notice of his proposals, and at any time within one month after receipt thereof, the Chairperson may by notice to him refuse to permit the communication to be made, if it appears to him that the mode of construction or condition of the drain is such that the making of the communication would be prejudicial to the drainage system, and for the purpose of examining the mode of construction and condition of the drain he may, if necessary, require it to be laid open for inspection. [(3) The Chairperson may, if he thinks fit, construct such parts of the work necessary for having a](http://indiankanoon.org/doc/358998/) private drain made to communicate with a municipal drain, as is in or under a public street and in such a case, the expenses incurred by the Chairperson shall be paid by the owner or occupier of the premises, or as the case may be, the owner of the private drain and shall be recoverable from the owner or occupier as an arrear of tax under this Act. **[175. Drainage of and drained premises.—(1) Where any premises are in the opinion of the](http://indiankanoon.org/doc/335481/)** Chairperson, without sufficient means of effectual drainage and a municipal drain or some place approved by the Chairperson for the discharge of filth and other polluted and obnoxious matter is situated at a distance of not exceeding thirty meters from any part of the said premises, he may, by written notice, require the owner of the said premises— [(a) to make a drain emptying into such municipal drain or place;](http://indiankanoon.org/doc/1465693/) [(b) to provide and set up all such appliances and fittings as may appear to the Chairperson](http://indiankanoon.org/doc/1253317/) necessary for the purposes of gathering and receiving the filth and other polluted and obnoxious ----- matter from, and conveying the same off, the said premises and of effectually flushing such drain and every fixture connected therewith; [(c) to remove any existing drain or other appliance or thing used or intended to be used for](http://indiankanoon.org/doc/1550360/) drainage which is injurious to health; [(d) to provide a closed drain in substitution of an open drain or to provide such other appliance or](http://indiankanoon.org/doc/1174410/) thing either newly or in substitution of any existing appliance or thing or to provide both a close drain and such other appliance or thing in substitution of the existing open drain and other appliance or thing, which is or is likely to be injurious to health; [(e) to provide and set up all such appliances and fittings as may appear to the Chairperson to be](http://indiankanoon.org/doc/474160/) necessary for the purpose of gathering and receiving the waste water from floors and galleries of buildings when they are washed, and conveying the same through spouts, by down-take pipes so as to prevent such waste water from discharging directly on streets or inside any lower portion of the premises; [(f) to carry out any work to improve or re-model an existing drain which is inadequate,](http://indiankanoon.org/doc/1824312/) insufficient or faulty. [(2) Where in any case not provided for in sub-section (1) any premises are, in the opinion of the](http://indiankanoon.org/doc/264378/) Chairperson, without sufficient means of effectual drainage, he may, by written notice, require the owner of the premises— [(a) to construct a drain up to a point to be prescribed in such notice but not at a distance of more](http://indiankanoon.org/doc/1869274/) than thirty meters from any part of the premises; or [(b) to construct a closed cesspool or soakage pit and drain or drains emptying into such cesspool](http://indiankanoon.org/doc/1602010/) or soakage pit. [(3) Any requisition for the construction of any drain under sub-section (2) may contain any of the](http://indiankanoon.org/doc/1452859/) details specified in sub-section (1). **[176. New premises not to be erected without drains.—(1) It shall not be lawful to erect or to](http://indiankanoon.org/doc/719880/)** re-erect any premises in New Delhi or to occupy any such premises unless— [(a) a drain be constructed of such size, materials and description, at such level and with such fall](http://indiankanoon.org/doc/851141/) as shall appear to the Chairperson to be necessary for the effectual drainage of such premises; [(b) there have been provided and set up on such premises such appliances and fittings as may](http://indiankanoon.org/doc/327788/) appear to the Chairperson to be necessary for the purposes of gathering or receiving the filth and other polluted and obnoxious matter from, and conveying the same off, the said premises and of effectually flushing the drain of the said premises and every fixture connected therewith. [(2) The drain so constructed shall empty into a municipal drain situated at a distance of not exceeding](http://indiankanoon.org/doc/398543/) thirty meters from the premises; but if no municipal drain is situated within that distance then such drain shall empty into a cesspool situated within that distance to be specified by the Chairperson for the purpose. **[177. Power to drain group or block of premises by combined operations.—(1) If it appears to the](http://indiankanoon.org/doc/1959450/)** Chairperson that any group or block of premises may be drained more economically or advantageously in combination than separately, and a municipal drain of sufficient size already exists or is about to be constructed within thirty meters of any part of that group or block of premises, the Chairperson may cause that group or block of premises to be drained by a combined operation. [(2) The expenses incurred in carrying out any work under sub-section (1) in respect of any group or](http://indiankanoon.org/doc/1209109/) block of premises shall be paid by the owners of such premises in such proportions as the Chairperson may determine and shall be recoverable from them as an arrear of tax under this Act. [(3) Not less than fifteen days before any such work is commenced, the Chairperson shall give to each](http://indiankanoon.org/doc/305862/) such owner— [(a) written notice of the nature of the proposed work, and](http://indiankanoon.org/doc/1100449/) ----- [(b) an estimate of the expenses to be incurred in respect thereof and of the proportion of such](http://indiankanoon.org/doc/85821/) expenses payable by him. [(4) The Chairperson may require the owners of such groups or block of premises to maintain the work](http://indiankanoon.org/doc/1746621/) executed under this section. **[178. Power of Chairperson to close or limit the use of private drains in certain cases.—Where a](http://indiankanoon.org/doc/339963/)** drain connecting any premises with a municipal drain is sufficient for the effectual drainage of such premises and is otherwise unobjectionable but is not in the opinion of the Chairperson, adapted to the general system of drainage in New Delhi, he may, by written notice addressed to the owner of the premises, direct— [(a) that such drain be closed, discontinued or destroyed and that any work necessary for that](http://indiankanoon.org/doc/834563/) purpose be done; or [(b) that such drain shall, from such date as may be specified in the notice in this behalf, be used](http://indiankanoon.org/doc/1690865/) for filth and polluted water only or for rain water and unpolluted sub-soil water only: Provided that— [(i) no drain may be closed, discontinued or destroyed by the Chairperson under clause (a) except](http://indiankanoon.org/doc/651806/) on condition of his providing another drain equally effectual for the drainage of the premises and communicating with any municipal drain which he thinks fit; and [(ii) the expenses of the construction of any drain so provided by the Council and of any work](http://indiankanoon.org/doc/1983064/) done under clause (a) may be paid out of the New Delhi Municipal Fund. **[179. Use of drain by a person other than the owner.—(1) Where the Chairperson either on receipt](http://indiankanoon.org/doc/239610/)** of an application from the owner of any premises or otherwise is of the opinion that the only, or the most convenient means of effectual drainage of the premises into a municipal drain is through a drain belonging to another person, the Chairperson may by notice in writing require the owner of such drain to show cause within a period specified in the notice as to why an order under this section should not be made. [(2) Where no cause is shown within the specified period or the cause shown appears to the](http://indiankanoon.org/doc/367511/) Chairperson invalid or insufficient, the Chairperson may by order in writing either authorise the owner of the premises to use the drain or declare him to be a joint owner thereof. [(3) An order made under sub-section (2) may contain directions as to—](http://indiankanoon.org/doc/861760/) [(a) the payment of rent or compensation by the owner of the premises;](http://indiankanoon.org/doc/1536555/) [(b) the construction of a drain for the premises for the purpose of connecting it with the aforesaid](http://indiankanoon.org/doc/1108454/) drain; [(c) the entry upon the land in which the aforesaid drain is situate with assistants and workmen at](http://indiankanoon.org/doc/1795546/) all reasonable hours; [(d) the respective responsibilities of the parties for maintaining, repairing, flushing, cleaning and](http://indiankanoon.org/doc/360888/) emptying the aforesaid drain. **[180. Sewage and rain water drains to be distinct.—Whenever it is provided in this Chapter that](http://indiankanoon.org/doc/1446222/)** steps shall or may be taken for the effectual drainage of any premises, it shall be competent to the Chairperson to require that there shall be one drain for filth and polluted water and an entirely distinct drain for rain water and unpolluted sub-soil water or both rain water and unpolluted sub-soil water, each emptying into separate municipal drains or other suitable places. **[181. Power of Chairperson to require owner to carry out certain works for satisfactory](http://indiankanoon.org/doc/1933773/)** **drainage.—For the purpose of efficient drainage of any premises, the Chairperson may, by notice in** writing— [(a) require any courtyard, alley or passage between two or more buildings to be paved by the](http://indiankanoon.org/doc/1138633/) owner or owners of such buildings with such materials and in such manner as may be approved by the Chairperson, and [(b) require such paving to be kept in proper repair.](http://indiankanoon.org/doc/1047197/) ----- _Collection of sewage_ **[182. Appointment of places for the emptying of drains and collection of sewage.—The](http://indiankanoon.org/doc/574405/)** Chairperson may cause any or all of the municipal drains to empty into, and all sewage to be collected of at, such place or places as he considers suitable: Provided that no place which has not been before the commencement of this Act used for any of the purposes specified in this section shall, after such commencement be used therefor without the approval of the Council: Provided further that on and after such date as may be appointed by the Central Government in this behalf no sewage shall be discharged into any water course until it has been so treated as not to affect prejudicially the purity and quality of the water into which it is discharged. _Miscellaneous_ **[183. Connection with water works and drains not to be made without permission.—Without the](http://indiankanoon.org/doc/1925083/)** written permission of the Chairperson, no person shall, for any purpose whatsoever, at any time make or cause to be made any connection or communication with any drain referred to in section 172 or any water works, constructed or maintained by, or vested in, the Council. **[184. Building, railways and private streets not to be erected or constructed over drains or water](http://indiankanoon.org/doc/345019/)** **[works without permission.—(1) Without the written permission of the Chairperson no railway or private](http://indiankanoon.org/doc/408273/)** street shall be constructed and no building, wall, fence or other structure shall be erected on any municipal drain or on any water works constructed or maintained by, or vested in, the Council. [(2) If any railway or private street be constructed or any building, wall, fence or structure erected on](http://indiankanoon.org/doc/1508656/) any drain or water works as aforesaid without the written permission of the Chairperson, the Chairperson may remove or otherwise deal with the same as he may think fit. [(3) The expenses incurred by the Chairperson in so doing shall be paid by the owner of the private](http://indiankanoon.org/doc/1864469/) street or of the building, fence, wall or other structure or, as the case may be, by the railway administration or the person offending and shall be recoverable as an arrear of tax under this Act. **[185. Rights of user of property for aqueducts, lines, etc.—(1) The Chairperson may place and](http://indiankanoon.org/doc/978630/)** maintain aqueducts, conduits and lines of mains or pipes or drains over, under, along or across any immovable property whether within or without the local limits of the Council without acquiring the same, and may at any time for the purpose of examining, repairing, altering or removing any aqueducts, conduits or lines of mains or pipes or drains, enter on any property over, under, along or across which the aqueducts, conduits or lines of mains or pipes, or drains have been placed: Provided that the Council shall not acquire any right other than a right of user in the property over, under, along or across which any aqueduct, conduit or line of mains or pipes, or drain is placed. [(2) The powers conferred by sub-section (1) shall not be exercisable in respect of any property vested](http://indiankanoon.org/doc/1559126/) in the Union or under the control or management of the Central Government or railway administration or vested in any local authority save with the permission of the Central Government or railway administration or the local authority, as the case may be, and in accordance with any bye-laws made in this behalf: Provided that the Chairperson may, without such permission, repair, renew or amend any existing works of which the character or position is not to be altered if such repair, renewal or amendment is urgently necessary in order to maintain without interruption the supply of water, drainage or collection of sewage or is such that delay would be dangerous to health, human life or property. [(3) In exercise of the powers conferred upon him by this section, the Chairperson shall cause as little](http://indiankanoon.org/doc/443495/) damage and inconvenience as may be possible, and shall make full compensation for any damage or inconvenience caused by him. **[186. Power of owner of premises to place pipes and drains through land belonging to other](http://indiankanoon.org/doc/1087051/)** **[persons.—(1) If it appears to the Chairperson that the only or most convenient means of water supply to,](http://indiankanoon.org/doc/354123/)** and drainage of, any premises is by placing or carrying any pipe or drains over, under, along or across the ----- immovable property of another person, the Chairperson may, by order in writing, authorise the owner of the premises to place or carry such pipe or drain over, under, along or across such immovable property: Provided that before making any such order the Chairperson shall give to the owner of the immovable property a reasonable opportunity of showing cause within such time as may be prescribed by bye-laws made in this behalf as to why the order should not be made: Provided further that the owner of the premises shall not acquire any right other than a right of user in the property over, under, along or across which any such pipe or drain is placed or carried. [(2) Upon the making of an order, under sub-section (1), the owner of the premises may, after giving](http://indiankanoon.org/doc/1602292/) reasonable notice of his intention so to do, enter upon the immovable property with assistants and workmen at any time between sunrise and sunset for the purpose of placing a pipe or drain over, under, along or across such immovable property or for the purpose of repairing the same. [(3) In placing or carrying a pipe or drain under this section, as little damage as possible shall be done](http://indiankanoon.org/doc/1234745/) to the immovable property and the owner of the premises shall— [(a) cause the pipe or drain to be placed or carried with the least practicable delay;](http://indiankanoon.org/doc/197557/) [(b) fill in, re-instate and make good at his own cost and with the least practicable delay, any land](http://indiankanoon.org/doc/611632/) opened, broken up or removed for the purpose of placing or carrying such pipe or drain; and [(c) pay compensation to the owner of the immovable property and to any other person who](http://indiankanoon.org/doc/1025065/) sustains damage by reason of the placing or carrying of such pipe or drain. [(4) If the owner of the immovable property, over, under, along or across which a pipe or drain has](http://indiankanoon.org/doc/321190/) been placed or carried under this section whilst such immovable property was not built upon, desires to erect any building on such property, the Chairperson shall, by notice in writing, require the owner of the premises to close, remove or divert the pipe or drain in such manner as shall be approved by him and to fill in, re-instate and make good the immovable property as if the pipe or drain had not been placed or carried over, under, along or across the same: Provided that no such requisition shall be made unless in the opinion of the Chairperson it is necessary or expedient for the construction of the proposed building or the safe enjoyment thereof that the pipe or drain should be closed, removed or diverted. **[187. Power to require railway level, etc., to be raised or lowered.—If the Council places or carries](http://indiankanoon.org/doc/618003/)** any pipe or drain or does any other work connected with the water supply or drainage across any railway line, it may, with the sanction of the Central Government and at the cost of the New Delhi Municipal Fund, require the railway administration to raise or lower the level thereof. **[188. Power of Chairperson to execute work after giving notice to the person liable.—(1) When](http://indiankanoon.org/doc/8725/)** under the provisions of this Chapter any person may be required or is liable to execute any work, the Chairperson may, in accordance with the provisions of this Act and of any bye-laws made in this behalf, cause such work to be executed after giving such person an opportunity of executing the same within such time as may be specified by him for this purpose. [(2) The expenses incurred or likely to be incurred by the Chairperson in the execution of any such](http://indiankanoon.org/doc/467180/) work shall be payable by the said person and the expenses incurred by the Chairperson in connection with the maintenance of such work or the enjoyment of amenities and conveniences rendered possible by such work shall be payable by the person or persons enjoying such amenities and conveniences. [(3) The expenses referred to in sub-section (2) shall be recoverable from the person or persons liable](http://indiankanoon.org/doc/858288/) therefor as an arrear of tax under this Act. **[189. Power of Chairperson to affix shafts, etc., for ventilation of drain or cesspool.—For the](http://indiankanoon.org/doc/1859878/)** purpose of ventilating any drain or cesspool, whether vested in Council or not, the Chairperson may, in accordance with bye-laws made in this behalf, erect upon any premises or affix to the outside of any building or to any tree any such shaft or pipe as may appear to him to be necessary. **[190. Power of Chairperson to examine and test drains, etc., believed to be defective.—(1) Where](http://indiankanoon.org/doc/1657176/)** it appears to the Chairperson that there are reasonable grounds for believing that a private drain or cesspool is in such condition as to be prejudicial to health or a nuisance or that a private drain ----- communicating directly or indirectly with a municipal drain is so defective as to admit sub-soil water, he may examine its condition, and for that purpose may apply any test, other than a test by water under pressure, and if he deems it necessary, open the ground. [(2) If on examination the drain or cesspool is found to be in proper condition, the Chairperson shall,](http://indiankanoon.org/doc/1159261/) as soon as possible, re-instate any ground which has been opened by him and make good any damage done by him. **[191. Bulk receipt of water and delivery of sewage by the Council.—(1) The Council shall receive](http://indiankanoon.org/doc/522974/)** bulk supply of water from, and deliver in bulk all the sewage to, the authority prescribed by the Central Government. [(2) The Council shall be entitled to receive bulk supply of water from, and to deliver in bulk all the](http://indiankanoon.org/doc/1005331/) sewage to, the authority prescribed under sub-section (1) subject to such charges for the supply of water in bulk to the Council and the delivery of sewage of the area of New Delhi as may be determined by means of an agreement entered into between that other authority and the Council. The agreement mentioned in this sub-section shall provide also for a stipulation therein that in case of any dispute about the payments to be made to that other authority by the Council, the matter shall be referred to the Central Government whose decision thereon shall be final and binding on both parties. **[192. Employment of Government agencies for repairs, etc.—The Central Government may for](http://indiankanoon.org/doc/512918/)** reason to be recorded, direct that any specified work, repair, renewal or replacement which is to be undertaken by or for the Council under this Chapter, shall be carried out on behalf of the Council by the Central Government and the Council shall pay the charges therefor at the rates and subject to the terms for the time being applicable in the case of works constructed by that Government on behalf of a local authority. **[193. Work to be done by licensed plumber.—(1) No person other than a licensed plumber shall](http://indiankanoon.org/doc/947927/)** execute any work described in this Chapter and no person shall permit any such work to be executed except by a licensed plumber: Provided that if, in the opinion of the Chairperson, the work is of a trivial nature, he may grant permission in writing for the execution of such work by a person other than a licensed plumber. [(2) Every person who employs a licensed plumber to execute any work shall, when so required,](http://indiankanoon.org/doc/797768/) furnish to the Chairperson the name of such plumber. [(3) When any work is executed except in accordance with the provisions of sub-section (1), such](http://indiankanoon.org/doc/523849/) work shall be liable to be dismantled at the discretion of the Chairperson without prejudice to the right of the Council to prosecute under this Act the person at whose instance such work has been executed. [(4) The Council may make bye-laws for the guidance of licensed plumbers and a copy of all such](http://indiankanoon.org/doc/504035/) bye-laws shall be attached to every licence granted to a plumber by the Council. [(5) The Council may, from time to time, prescribe the charges to be paid to licensed plumbers for any](http://indiankanoon.org/doc/1760342/) work done by them under or for any of the purposes of this Chapter. [(6) No licensed plumber shall, for any work referred to in sub-section (5), demand or receive more](http://indiankanoon.org/doc/1406902/) than the charges prescribed therefor, under that sub-section. [(7) The Council shall make bye-laws providing for—](http://indiankanoon.org/doc/1838630/) [(a) the exercise of adequate control on all licensed plumbers;](http://indiankanoon.org/doc/374930/) [(b) the inspection of all works carried out by them; and](http://indiankanoon.org/doc/1770396/) [(c) the hearing and disposal of complaints made by the owners or occupiers of premises with](http://indiankanoon.org/doc/201169/) regard to the quality of work done, material used, delay in execution of work, and the charges made, by a licensed plumber. [(8) No licensed plumber shall contravene any of the bye-laws made under this section or execute](http://indiankanoon.org/doc/1736072/) carelessly or negligently any work under this Act or make use of bad materials appliances or fittings. [(9) If any licensed plumber contravenes sub-section (8), his licence may be suspended or cancelled](http://indiankanoon.org/doc/275398/) whether he is prosecuted under this Act or not. ----- **[194. Prohibition of certain acts.—(1) No person shall—](http://indiankanoon.org/doc/1363197/)** [(a) wilfully obstruct any person acting under the authority of the Council, or the Chairperson, in](http://indiankanoon.org/doc/926006/) setting out the lines of any works or pull up or remove any pillar, post or stake fixed in the ground for the purpose of setting out lines of such work, or deface or destroy any works made for the same purpose; or [(b) wilfully or negligently break, injure, turn on, open, close, shut off or otherwise interfere with](http://indiankanoon.org/doc/1054812/) any lock, cock, valve, pipe, meter or other work or apparatus belonging to the Council; or [(c) unlawfully obstruct the flow of or flush, draw off, or divert, or take water from any water](http://indiankanoon.org/doc/301447/) work belonging to the Council; or [(d) unlawfully obstruct the flow of, or flush, draw off, divert or take sewage from any sewage](http://indiankanoon.org/doc/1808159/) work belonging to the Council or break or damage any electrical transmission line maintained by the Council; or [(e) obstruct any officer or other employee of the Council in the discharge of his duties under this](http://indiankanoon.org/doc/1183148/) Chapter or refuse or wilfully neglect to furnish him with the means necessary for the making of any entry, inspection, examination or inquiry thereunder in relation to any water or sewage work; or [(f) bathe in, at or upon any water work or wash or throw or cause to enter therein any animal, or](http://indiankanoon.org/doc/662152/) throw any rubbish, dirt or filth into any water work or wash or clean therein any cloth, wool or leather or the skin of any animal, or cause the water of any sink, or drain or any steam-engine or boiler or any polluted water to turn or be brought into any water work, or do any other act whereby the water in any water work is fouled or likely to be fouled. [(2) Nothing in clause (b) of sub-section (1) shall apply to a consumer closing the stopcock fixed on](http://indiankanoon.org/doc/1181589/) the service pipe supplying water to his premises so long as he has obtained the consent of any other consumer whose supply will be affected thereby. CHAPTER XII ELECTRICITY SUPPLY **[195. Functions in relation to electricity supply.—(1) It shall be the duty of the Council to develop](http://indiankanoon.org/doc/1517510/)** and maintain an efficient, co-ordinated and economical system of electricity supply for New Delhi area under its jurisdiction and for that purpose to take steps from time to time— [(a) acquiring supplies of electricity and its distribution to consumers;](http://indiankanoon.org/doc/1285612/) [(b) for preparing and carrying out in accordance with rules made in this behalf schemes for](http://indiankanoon.org/doc/1176958/) distribution of electricity. [(2) In the discharge of its functions in relation to electricity supply, the Council shall, as far as](http://indiankanoon.org/doc/643891/) practicable— [(a) promote the use of all economical methods of transmitting and distributing electricity;](http://indiankanoon.org/doc/1554486/) [(b) secure the development of supplies of electricity;](http://indiankanoon.org/doc/232752/) [(c) secure the extension of supplies of electricity to areas without such supplies;](http://indiankanoon.org/doc/11555/) [(d) promote the standardisation of systems of supply and types of electrical fittings;](http://indiankanoon.org/doc/1017805/) [(e) promote the simplification and standardisation of methods of charge for supplies of electricity.](http://indiankanoon.org/doc/1996846/) **[196. Additional functions in relation to electricity supply.—(1) The Council may take steps to](http://indiankanoon.org/doc/835123/)** manufacture, purchase, sell or let on hire on the execution of a hire purchase agreement or otherwise, any electrical machinery, control gear, fittings, wires or apparatus for lighting, heating, cooling or motive power or for any other purpose for which electricity can or may be used, or any industrial or agricultural machinery operated by electricity, and to install, connect, repair, maintain or remove such machinery, control gear, fitting, wires or apparatus and in respect thereof demand and take such remuneration or rents and charges and make such terms and conditions as it deems fit. [(2) The Council may also maintain shops and show rooms for the display, sale or hire of machinery,](http://indiankanoon.org/doc/123044/) control gear, fittings, wires or apparatus as aforesaid, conduct displays, exhibitions and demonstrations ----- thereof and generally do all things, including advertising incidental to the sale or hire of such machinery, control gear, fittings, wires and apparatus and to the promotion and encouragement of the use of electricity. [(3) Moneys received and expended in connection with additional functions specified in](http://indiankanoon.org/doc/730087/) sub-sections (1) and (2) shall be shown separately in the accounts. **[197. Council to have powers and obligations of licensee under Act 9 of 1910.—Subject to the](http://indiankanoon.org/doc/1963822/)** provision of this Act the Council shall in respect of the New Delhi areas under its jurisdiction have all the powers and obligations of a licensee under the Electricity Act, 1910, and this Chapter shall be deemed to be the licence of the Council for the purposes of that Act: Provided that nothing in sections 3 to 12 of, or in clauses I to IX of the Schedule to, that Act relating to the duties and obligations of a licensee shall apply to the Council. **[198. Restriction on building and other acts interfering with the works of electric supply.—](http://indiankanoon.org/doc/449141/)** [(1) No building, wall or other structure shall be newly erected and no street or railway shall be](http://indiankanoon.org/doc/1965095/) constructed over, or in such a manner as to interfere with, any work constructed or maintained for the purposes of the electric supply except with the written permission of the Chairperson. [(2) The Chairperson may cause any building, wall or other structure erected, or any street or railway](http://indiankanoon.org/doc/265961/) constructed in contravention of sub-section (1), to be removed or otherwise dealt with as he deems fit, and the expenses incurred therefor shall be paid by the person or authority responsible and shall be recoverable from such person or authority as an arrear of tax under this Act. **[199. Power of Council to make arrangements with licensees.—(1) The Council may enter into an](http://indiankanoon.org/doc/609018/)** agreement with any licensee within or outside New Delhi in regard to the purchase of electricity and price thereof and within New Delhi in regard to sale and price thereof or in regard to operation or control of any generating station or main transmission line and notwithstanding anything contained in any law or in any licence, memorandum of association or other instrument regulating the constitution and powers of the licensee, it shall be lawful for the licensee to enter into and carry out any agreement. [(2) In entering into an agreement under this section the Council shall not show any undue preference](http://indiankanoon.org/doc/1643878/) to any licensee. **[200. Charges for supply of electricity.—Subject to the provisions of any law for the time being in](http://indiankanoon.org/doc/880792/)** force, charges shall be leviable for the supply of electricity by the Council at such rates as may, from time to time, be fixed by the Council. **[201. Bulk receipt of electricity by the Council.—(1) The Council shall receive bulk supply of](http://indiankanoon.org/doc/1522379/)** electricity from the authority which may be prescribed by the Central Government. [(2) The Council shall be entitled to receive bulk supply of electricity from that authority prescribed by](http://indiankanoon.org/doc/304625/) the Central Government subject to such terms and conditions as may be determined by means of a contract entered into between that other authority and the Council. The contract mentioned in this sub-section shall provide also for a stipulation therein that disputes between that other authority and the Council in regard to any matter relating to the bulk supply of electricity to the Council shall be referred to the Central Government whose decision thereon shall be final and binding on both parties. CHAPTER XIII STREETS _Construction, maintenance and improvement of streets_ **[202. Vesting of public streets in the Council.—(1) All streets within New Delhi which are or at any](http://indiankanoon.org/doc/989648/)** time become public streets and the pavements, stones and other materials thereof shall vest in the Council: Provided that no public street which immediately before the commencement of this Act vested in the Union shall, unless the Central Government with the consent of the Council so directs, vest in the Council by virtue of this sub-section. ----- [(2) All public streets vesting in the Council shall be under the control of the Chairperson and shall be](http://indiankanoon.org/doc/1205620/) maintained, controlled and regulated by him in accordance with the bye-laws made in this behalf. **[203. Functions of Chairperson in respect of public streets.—(1) The Chairperson shall, from time](http://indiankanoon.org/doc/1656667/)** to time, cause all public streets vested in the Council to be levelled, metalled or paved, channelled, altered or repaired, and may widen, extend or otherwise improve any such street or cause the soil thereof to be raised, lowered or altered or may place and keep in repair fences and posts for the safety of foot passengers: Provided that no widening, extension or other improvement of a public street, the aggregate cost of which will exceed one lakh rupees, shall be undertaken by the Chairperson except with the previous sanction of the Council. [(2) With the previous sanction of the Council, the Chairperson may permanently close the whole or](http://indiankanoon.org/doc/401903/) any part of a public street: Provided that before according such sanction the Council shall by notice, published in the manner specified by bye-laws give reasonable opportunity to the residents likely to be affected by such closure to make suggestions or objections with respect to such closure and shall consider all such suggestions or objections which may be made within one month from the date of publication of the said notice. **[204. Disposal of land forming site of public streets permanently closed.—Whenever any public](http://indiankanoon.org/doc/562124/)** street or a part thereof is permanently closed under sub-section (2) of section 203 the site of such street or of the portion thereof may be disposed of as land vesting in the Council. **[205. Power to make new public streets.—The Chairperson may at any time with the previous](http://indiankanoon.org/doc/339075/)** sanction of the Council,— [(a) lay out and make new public streets;](http://indiankanoon.org/doc/98776/) [(b) construct bridges and sub-ways;](http://indiankanoon.org/doc/1125813/) [(c) turn or divert any existing public street; and](http://indiankanoon.org/doc/243737/) [(d) lay down and determine the position and direction of a street or streets in any part of New](http://indiankanoon.org/doc/236582/) Delhi notwithstanding that no proposal for the erection of any building in the vicinity has been received. **[206. Minimum width of new public streets.—The Chairperson shall, from time to time, with the](http://indiankanoon.org/doc/844350/)** sanction of council, specify the minimum width of different classes of new public streets according to the nature of the traffic likely to be carried thereon, and the streets with which they join at one or both ends, the localities in which they are situated, the heights up to which buildings abutting thereon may be erected and other similar considerations. **[207. Power to prohibit or regulate use of public streets for certain kind of traffic.—(1) The](http://indiankanoon.org/doc/1146380/)** Chairperson may— [(a) prohibit or regulate vehicular traffic in any public street or any portion thereof so as to prevent](http://indiankanoon.org/doc/424548/) danger, obstruction or inconvenience to the public or to ensure decongestion or smooth flow or quietness in any locality; [(b) prohibit or regulate in respect of all public streets, or any particular public street, the transit of](http://indiankanoon.org/doc/1311980/) any vehicle of such form, construction weight or size or laden with such heavy or unwieldly objects as may be likely to cause injury to the road-ways or any construction thereon, except under such conditions as to time, mode of traction or locomotion, use of appliances for the protection of roadways, number of lights and assistants and other general precautions and upon the payment of such charges as may be specified by the Chairperson generally or specially in each case; and [(c) prohibit or regulate access to premises from any particular public street carrying high speed](http://indiankanoon.org/doc/523766/) vehicular traffic: Provided that the Chairperson shall not take action without sanction of the Council in cases under clauses (a) and (c). ----- [(2) Notices of such prohibition as are imposed under sub-section (1) shall be posted in conspicuous](http://indiankanoon.org/doc/252110/) places at or near both ends of public streets or portions thereof to which they relate, unless such prohibition applies generally to all public streets. **[208. Power to acquire lands and buildings for public streets and for public parking places.—](http://indiankanoon.org/doc/1286132/)** (1) Subject to the provisions contained in Chapter X, the Chairperson may— [(a) acquire any land required for the purpose of opening, widening, extending or otherwise](http://indiankanoon.org/doc/1930088/) improving any public street or of making any new public street, and any building standing upon such land; [(b) acquire in relation to any such land or building, all such land with buildings, if any, thereon as](http://indiankanoon.org/doc/699379/) the Council may think expedient to acquire outside of the regular line, or of the intended regular line, of such street; [(c) acquire any land for the purpose of laying out or making a public parking place.](http://indiankanoon.org/doc/573974/) **[209. Defining the regular line of streets.—(1) The Chairperson may define a line on one or both](http://indiankanoon.org/doc/603435/)** sides of any public street in accordance with the bye-laws made in this behalf and may, with the previous sanction of the Council, redefine at any time any such regular line: Provided that, before according sanction the Council shall by public notice afford reasonable opportunity to the residents or premises abutting on such public street to make suggestions or objections with respect to the proposed redefined line of the street and shall consider all such suggestions or objections which may be made within one month from the date of the publication of the said notice: Provided further that the regular line of any public street operative under any law in force in any part of New Delhi immediately before the commencement of this Act shall be deemed to be a line defined by the Chairperson under this sub-section. [(2) The line for the time being defined or redefined shall be called the regular line of street.](http://indiankanoon.org/doc/675195/) [(3) No person shall construct or reconstruct any building or a portion thereof or any boundary wall or](http://indiankanoon.org/doc/1022862/) other structure whatsoever within the regular line of a street except with the written permission of the Chairperson: Provided that if within sixty days after the receipt of application from any person for permission to construct or reconstruct a boundary wall or portion thereof, the Chairperson fails to take steps to acquire the land within the regular line of the street in the accordance with section 212, then that person may, subject to any other provisions of this Act and the bye-laws made thereunder, proceed with the work of construction or reconstruction of such boundary wall or portion thereof. [(4) When the Chairperson grants permission for the construction or reconstruction of any building or](http://indiankanoon.org/doc/324463/) any boundary wall or other structure within the regular line of a street, he may require the owner of the building to execute an agreement binding himself and his successors-in-interest not to claim compensation in the event of the Chairperson at any time thereafter calling upon him or any of his successors by written notice to remove any work carried out in pursuance of such permission and to pay the expenses of such removal if, in default, such removal is carried out by the Chairperson and may for that purpose require such owner to deposit in the New Delhi Municipal Fund such sum as may be determined by him. [(5) The Chairperson shall maintain—](http://indiankanoon.org/doc/860151/) [(a) a register containing such particulars as may be specified by him in this behalf with plans](http://indiankanoon.org/doc/1526213/) attached thereto showing all public streets in respect of which the regular line of the street has been defined or redefined and containing any other particulars which the Chairperson may deem necessary; [(b) a register of all agreements executed under sub-section (4) and of all deposits made](http://indiankanoon.org/doc/1526736/) thereunder. [(6) All such registers shall be open to inspection by any person on payment of such fee as may be](http://indiankanoon.org/doc/943597/) prescribed by the Chairperson with the sanction of Council. [(7) Any agreement entered into in pursuance of sub-section (4) shall be in writing, shall be registered](http://indiankanoon.org/doc/478968/) under the Registration Act, 1908 (16 of 1908), and shall be deemed to be an agreement in respect of the ----- land to which it relates and any condition contained in such agreement shall be deemed to be an obligation annexed to the ownership of the said land and enforceable against the successors-in-interest of the owner of such land. **[210. Setting back building to regular line of street.—(1) If any part of a building abutting on a](http://indiankanoon.org/doc/1934040/)** public street is within the regular line of that street, the Chairperson may, whenever it is proposed— [(a) to repair, rebuild or construct such building or to take down such building to an extent](http://indiankanoon.org/doc/157963/) exceeding one-half thereof above the ground level, such half to be measured in cubic metres; or [(b) to repair, remove, construct or reconstruct or make any additions to, or structural alterations](http://indiankanoon.org/doc/1189799/) of, any portion of such building which is within the regular line of the street, by any order which he issues concerning the addition to, rebuilding construction, repair or alterations of, such building, require such building to be set back to the regular line of the street. [(2) When any building or any part thereof within the regular line of a public street falls down or is](http://indiankanoon.org/doc/183989/) burnt down or is, whether by the order of the Chairperson or otherwise, taken down, the Chairperson may forthwith take possession on behalf of the Council of the portion of the land within the regular line of the street therefor occupied by the said building and, if necessary, clear the same. [(3) Land acquired under this section shall be deemed to be part of the public street and shall vest in](http://indiankanoon.org/doc/1341881/) the Council. **[211. Compulsory setting back of building to regular line of street.—(1) Where any building or](http://indiankanoon.org/doc/888569/)** any part thereof is within the regular line of a public street and in the opinion of the Chairperson it is necessary to set back the building or part thereof to the regular line of the street he may, by notice served on the owner in accordance with the provisions of this Act, require him to show cause within such period as may be specified in the notice as to why such building or part thereof which is within the regular line of the street should not be pulled down and the land within the regular line acquired by the Chairperson on behalf of the Council. [(2) If such owner fails to show cause as required by sub-section (1) the Chairperson may require the](http://indiankanoon.org/doc/1871361/) owner by another notice to be served on him in accordance with the provisions of this Act, to pull down the building or part thereof which is within the regular line of the street within such period as is specified in the notice. [(3) If within such period the owner of the building fails to pull down the building or part thereof as](http://indiankanoon.org/doc/1224879/) required by the Chairperson, the Chairperson may pull down the same and all the expenses incurred in so doing shall be paid by the owner and recoverable from him as an arrear of tax under this Act. [(4) The Chairperson shall at once take possession on behalf of the Council of the portion of the land](http://indiankanoon.org/doc/1915544/) within the regular line of the street occupied by the said building or part thereof and such land shall thereupon be deemed to be part of the public street and shall vest in the Council. **[212. Acquisition of open land and land occupied by platform, etc., within the regular line of](http://indiankanoon.org/doc/652718/)** **street.—If any land, whether open or enclosed, not vesting in the Council and not occupied by any** building is within the regular line of a public street or if a platform, verandah, step, compound wall, hedge or fence or some other structure external to a building abutting on a public street or a portion of such platform, verandah, step, compound wall, hedge, fence or other structure is within the regular line of such street, the Chairperson may, after giving to the owner of the land or building not less than seven clear days‟ notice of his intention so to do, take possession on behalf of the Council of the said land with its enclosing wall, hedge or fence, if any, or of the said platform, verandah, step, compound wall, hedge, fence or other structure or of any portion thereof which is within the regular line of the public street and, if necessary, clear the same and the land so acquired shall thereupon be deemed to be a part of the public street and shall vest in the Council: Provided that where the land or building is vested in the Union or a State the Chairperson shall not take possession thereof without the previous sanction of the Central Government. **[213. Acquisition of the remaining part of a building and land after their portions within a](http://indiankanoon.org/doc/1917741/)** **[regular line of street have been acquired.—(1) Where a land or building is partly within the regular line](http://indiankanoon.org/doc/1221930/)** of a public street and the Chairperson is satisfied that the land remaining after the excision of the portion within the said line will not be suitable or fit for any beneficial use, he may, at the request of the owner, ----- acquire such land in addition to the land within the said line and such surplus land shall be deemed to be a part of the public street and shall vest in the Council. [(2) Such surplus land may thereafter, be utilised for the purpose of setting forward a building under](http://indiankanoon.org/doc/1386920/) section 214. **[214. Setting forward of buildings to the regular line of street.—The Chairperson may, upon such](http://indiankanoon.org/doc/1086795/)** terms as he thinks fit, allow any building to be set forward for the purpose of improving the regular line of a public street and may, with the approval of the Council, by notice require any building to be set forward in the case of reconstruction thereof or of a new construction. _Explanation.—For the purpose of this section a wall separating any premises from a public street_ shall be deemed to be a building, and it shall be deemed a sufficient compliance with permission or requisition to set forward a building to the regular line of a street if a wall of such material and dimensions as are approved by the Chairperson is erected along the said line. **[215. Compensation to be paid in certain cases of setting back or setting forward of buildings,](http://indiankanoon.org/doc/780473/)** **[etc.—(1) Compensation shall be paid by the Chairperson to the owner of any building or land acquired](http://indiankanoon.org/doc/363958/)** for a public street under the provisions of sections 210, 211 and 212 for any loss which such owner may sustain in consequence of his building or land being so acquired and for any expense incurred by such owner in consequence of any order made by the Chairperson: Provided that— [(a) any increase or decrease in the value of the remainder of the property of which the building or](http://indiankanoon.org/doc/921356/) land so acquired formed part, likely to accrue from the setting back to the regular line of the street shall be taken into consideration and allowed for in determining the amount of such compensation; [(b) if any such increase in the value exceeds the amount of loss sustained or expenses incurred by](http://indiankanoon.org/doc/89642/) the owner, the Chairperson may recover from him half the amount of such excess as a betterment charge. [(2) If in consequence of any order to set forward a building made by the Chairperson the owner of](http://indiankanoon.org/doc/930523/) such building sustains any loss or damage, compensation shall be paid to him by the Chairperson for such loss or damage after taking into account any increase in value likely to accrue from the setting forward. [(3) If the additional land which will be included in the premises of any person required or permitted](http://indiankanoon.org/doc/840714/) under sub-section (2) to set forward a building belongs to the Council, the order or permission of the Chairperson to set forward the building shall be a sufficient conveyance to the said owner of the said land; and the price to be paid to the Council by the owner for such additional land and the other terms and conditions of the conveyance shall be set forth in the order or permission. [(4) If, when the Chairperson requires any building to be set forward, the owner of the building is](http://indiankanoon.org/doc/1721919/) dissatisfied with the price fixed to be paid to the Council or with any of the terms or conditions of conveyance, the Chairperson shall, upon the application of the owner at any time within fifteen days after the said terms and conditions are communicated to him, refer the case for the determination of the court of the district judge of Delhi whose decision thereon shall be final. _Private streets_ **[216. Owner’s obligation when dealing with land as building sites.—If the owner of any land](http://indiankanoon.org/doc/13636/)** utilises, sells, leases out or otherwise disposes of such land for the construction of buildings thereon he shall lay down and make a street or streets giving access to the plots into which the land may be divided and connecting with an existing public or private street. **[217. Lay-out plans.—(1) Before utilising, selling or otherwise dealing with any land under](http://indiankanoon.org/doc/1207088/)** section 216, the owner thereof shall send to the Chairperson a written application with a layout plan of the land showing the following particulars, namely:— [(a) the plots into which the land is proposed to be divided for the erection of buildings thereon](http://indiankanoon.org/doc/780038/) and the purpose or purposes for which such buildings are to be used; ----- [(b) the reservation or allotment of any site for any street, open space, park, recreation ground,](http://indiankanoon.org/doc/715334/) school, market or any other public purpose; [(c) the intended level, direction and width of street or streets;](http://indiankanoon.org/doc/1621637/) [(d) the regular line of street or streets;](http://indiankanoon.org/doc/38850/) [(e) the arrangement to be made for levelling, paving, metalling, flagging, channelling, sewering,](http://indiankanoon.org/doc/1689158/) draining, conserving and lighting street or streets. [(2) The provisions of this Act and the bye-laws made thereunder as to width of the public streets and](http://indiankanoon.org/doc/672268/) the height of buildings abutting thereon, shall apply in the case of streets referred to in sub-section (1) and all the particulars referred to in that sub-section shall be subject to the sanction of the Council. [(3) Within sixty days after the receipt of any application under sub-section (1) the Council shall either](http://indiankanoon.org/doc/918905/) accord sanction to the layout plan on such conditions as it may think fit or disallow it or ask for further information with respect to it. [(4) Such sanction shall be refused—](http://indiankanoon.org/doc/671890/) [(a) if the particulars shown in the lay-out plan would conflict with any arrangements which have](http://indiankanoon.org/doc/959100/) been made or which are in the opinion of the Council likely to be made for carrying out any general scheme of development of New Delhi whether contained in the master plan or a zonal development plan prepared for New Delhi or not; or [(b) if the said lay-out plan does not conform to the provisions of this Act and bye-laws made](http://indiankanoon.org/doc/109539/) thereunder; or [(c) if any street proposed in the plan is not designed so as to connect at one end with a street](http://indiankanoon.org/doc/951233/) which is already open. [(5) No person shall utilise, sell or otherwise deal with any land or lay-out or make any new street](http://indiankanoon.org/doc/1173438/) without or otherwise than in conformity with the orders of the Council and if further information is asked for, no step shall be taken to utilise, sell or otherwise deal with the land or to lay-out or make the street until orders have been passed upon receipt of such information: Provided that the passing of such orders shall not be in any case delayed for more than sixty days after the Council has received the information which it considers necessary to enable it to deal with the said application. [(6) The lay-out plan referred to earlier in this section, shall be prepared by an architect.](http://indiankanoon.org/doc/1102292/) **[218. Alteration or demolition of street made in breach of section 217.—(1) If any person lays-out](http://indiankanoon.org/doc/33059/)** or makes any street referred to in section 217 without or otherwise than in conformity with the orders of the Council, the Chairperson may, whether or not the offender be prosecuted under this Act, by notice— [(a) require the offender to show cause by a written statement signed by him and sent to the](http://indiankanoon.org/doc/28269/) Chairperson on or before such date as may be specified in the notice, why such street should not be altered to the satisfaction of the Chairperson or if such alteration be impracticable, why such street should not be demolished; or [(b) require the offender to appear before the Chairperson either personally or by a duly authorised](http://indiankanoon.org/doc/1668988/) agent on such day and at such time and place as may be specified in the notice and show cause as aforesaid. [(2) If any person on whom such notice is served fails to show cause to the satisfaction of the](http://indiankanoon.org/doc/372579/) Chairperson why such street should not be so altered or demolished, the Chairperson may pass an order directing the alternation or demolition of such street. **[219. Power of Chairperson to order work to be carried out or to carry it out himself in](http://indiankanoon.org/doc/551804/)** **[default.—(1) If any private street or part thereof is not levelled, paved, metalled, flagged, chanelled,](http://indiankanoon.org/doc/401745/)** sewered, drained, conserved or lighted to the satisfaction of Chairperson, he may by notice require the owners of such street or part and the owners of the lands and buildings fronting or abutting on such street or part to carry out any work which in his opinion may be necessary, and within such time as may be specified in such notice. ----- [(2) If such work is not carried out within the time specified in the notice, the Chairperson, may, if he](http://indiankanoon.org/doc/1535466/) thinks fit, execute it and the expenses incurred shall be paid by the owners referred to in sub-section (1) in such proportion as may be determined by the Chairperson and shall be recoverable from them as an arrear of tax under this Act. **[220. Right of owner to require streets to be declared public.—If any street has been levelled,](http://indiankanoon.org/doc/1917588/)** paved, metalled, flagged, channelled, sewered, drained, conserved and lighted under the provisions of section 219, the Chairperson may, and on the requisition of a majority of the owners referred to in [sub-section (1) of that section shall, declare such a street to be a public street and thereupon the street](http://indiankanoon.org/doc/1463712/) shall vest in the Council. _Encroachments on streets_ **[221. Prohibition of projections upon streets, etc.—(1) Except as provided in section 222, no person](http://indiankanoon.org/doc/1220640/)** shall erect, set up, add to, or place against or in front of any premises any structure or fixture which will— [(a) overhang, jut or project into, or in any way encroach upon, and obstruct in any way the safe or](http://indiankanoon.org/doc/479289/) convenient passage of the public along any street, or [(b) jut or project into or encroach upon any drain or open channel in any street so as in any way to](http://indiankanoon.org/doc/1771560/) interfere with the use or proper working of such drain or channel or to impede the inspection or cleansing thereof. [(2) The Chairperson may by notice require the owner or occupier of any premises to remove, or to](http://indiankanoon.org/doc/1214347/) take such other action as he may direct in relation to, any structure or fixture which has been erected, set up, added to or placed against, or in front of, the said premises in contravention of this section. [(3) If the occupier of the said premises removes or alters any structure or fixture in accordance with](http://indiankanoon.org/doc/506184/) such notice, he shall be entitled, unless the structure or fixture was erected, set up or placed by himself, to credit into account with the owner of the premises for all reasonable expenses incurred by him in complying with the notice. **[222. Projections over streets may be permitted in certain cases.—(1) The Chairperson may give a](http://indiankanoon.org/doc/1577450/)** written permission, on such terms and on payment of such fee as he in each case thinks fit, to the owner or occupier of the building abutting on any street— [(i) to erect an arcade over such street or any portion thereof; or](http://indiankanoon.org/doc/903225/) [(ii) to put up a verandah, balcony, arch, connecting passage, sun-shade, weather frame, canopy,](http://indiankanoon.org/doc/32816/) owning or other such structure or thing projecting from any storey over or across any street or portion thereof: Provided that no permission shall be given by the Chairperson for the erection of an arcade in any public street in which construction of an arcade has not been generally sanctioned by the Council. [(2) The Chairperson may at any time by notice require the owner or occupier of any building to](http://indiankanoon.org/doc/598659/) remove a verandah, balcony, sun-shade, weather frame or the like put up in accordance with the provisions of any law and such owner or occupier shall be bound to take action accordingly but shall be entitled to compensation for the loss caused to him by such removal and the cost incurred thereon. **[223. Ground floor doors, etc., not to open outwards on streets.—The Chairperson may at any time](http://indiankanoon.org/doc/907852/)** by notice require the owner of any premises on the ground floor of which any door, gate, bar, or window opens outwards upon a street or upon any land required for the improvement of a street in such manner, as in the opinion of the Chairperson, to obstruct the safe or convenient passage of the public along such street, to have the said door, gate, bar or window altered so as not to open outwards. **[224. Prohibition of structures or fixtures which cause obstruction in street.—(1) No person shall,](http://indiankanoon.org/doc/965494/)** except with the permission of the Chairperson granted in this behalf, erect or set up any wall, fence, rail, post, step, booth or other structure whether fixed or movable or whether of a permanent or temporary nature, or any fixture in or upon any street or upon or over any open channel, drain, well or tank in any street so as to form an obstruction to, or an encroachment upon, or a projection over, or to occupy any portion of such street, channel, drain, well or tank. ----- [(2) Nothing in this section shall apply to any erection or thing to which clause (c) of sub-section (1) of](http://indiankanoon.org/doc/384702/) section 229 applies. **[225. Prohibition of deposit, etc., of things in streets.—(1) No person shall, except with the](http://indiankanoon.org/doc/295925/)** permission of the Chairperson and on payment of such fee as he in each case thinks fit, place or deposit upon any street, or upon any open channel, drain or well in any street or upon any public place any stall, chair, bench, box, ladder, bale, or other thing whatsoever so as to form an obstruction thereto or encroachment thereon. [(2) Nothing in sub-section (1) applies to building material.](http://indiankanoon.org/doc/512047/) **[226. Power to remove anything deposited or exposed for sale in contravention of this Act.—The](http://indiankanoon.org/doc/561772/)** Chairperson may, without notice, cause to be removed— [(a) any stall, chair, bench, box, ladder, bale, or other thing whatsoever, placed, deposited,](http://indiankanoon.org/doc/439783/) projected, attached or suspended in, upon, from or to any place in contravention of this Act. [(b) any article whatsoever hawked or exposed for sale on any public street or in other public place](http://indiankanoon.org/doc/128817/) in contravention of this Act and any vehicle, package, box or any other thing in or on which such article is placed. **[227. Prohibition of the tethering of animals and milking of cattle.—(1) No person shall tether any](http://indiankanoon.org/doc/520344/)** animal or cause or permit the same to be tethered in any public street or public place. [(2) No person shall milk or cause or permit to be milked any cow or buffalo in any street or public](http://indiankanoon.org/doc/971245/) place. [(3) Any animal tethered or any cow or buffalo found being milked as aforesaid in any street may be](http://indiankanoon.org/doc/1285120/) removed by the Chairperson or any municipal officer or employee and be impounded and dealt with under the provisions of the Cattle-trespass Act, 1871 (1 of 1871). _Provision concerning execution of works in or near to streets_ **[228. Precautions during repair of streets.—(1) The Chairperson shall, so far as is practicable,](http://indiankanoon.org/doc/1165775/)** during the construction or repair of any public street, or any municipal drain or any premises vested in the Council— [(a) cause the same to be fenced and guarded,](http://indiankanoon.org/doc/1862619/) [(b) take proper precautions against accident by shoring up and protecting the adjoining buildings,](http://indiankanoon.org/doc/1536785/) [(c) cause such bars, chains or posts to be fixed across or in any street in which any such work of](http://indiankanoon.org/doc/879243/) construction or repair is under execution as are necessary in order to prevent the passage of vehicles or animals and avert danger. [(2) The Chairperson shall cause such street, drain or premises to be sufficiently lighted or guarded](http://indiankanoon.org/doc/1018043/) during night while under construction or repair. [(3) The Chairperson shall, with all reasonable speed, cause the said work to be completed, the ground](http://indiankanoon.org/doc/1168583/) to be filled in, the street, drain or premises to be repaired and the rubbish occasioned thereby to be removed. [(4) No person shall, without the permission of the Chairperson or other lawful authority, remove any](http://indiankanoon.org/doc/26746/) bar, chain, post or shorting, timber, or remove or extinguish any light set up under this section. **[229. Streets not to be opened or broken up and building materials not to be deposited thereon](http://indiankanoon.org/doc/422588/)** **[without permission.—(1) No person other than the Chairperson or a municipal officer or other municipal](http://indiankanoon.org/doc/980700/)** employee shall, without the written permission of the Chairperson— [(a) open, break up, displace, take up or make any alteration in, or cause any injury to the soil or](http://indiankanoon.org/doc/570019/) pavement or any wall, fence, post, chain or other materials or thing forming part of any street; or [(b) deposit any building materials in any street; or](http://indiankanoon.org/doc/85173/) ----- [(c) set up in any street any scaffold or any temporary erection for the purpose of any work](http://indiankanoon.org/doc/608113/) whatever, or any posts, bars, rails, boards or other things by way of an enclosure, for the purpose of making mortar or depositing bricks, lime, rubbish or other materials. [(2) Any permission granted under clause (b) or clause (c) of sub-section (1) shall be terminable at the](http://indiankanoon.org/doc/375856/) discretion of the Chairperson on his giving not less than twenty-four hours‟ notice of such termination to the person to whom such permission was granted. [(3) The Chairperson may, without notice, cause to be removed any of the things referred to in](http://indiankanoon.org/doc/1687789/) clause (b) of sub-section (1) which has been deposited or set up in any street without the permission specified in that sub-section or which having been deposited or set up with such permission has not been removed within the period specified in the notice issued under sub-section (2): Provided that nothing in this sub-section shall apply to cases under clause (b) or clause (c) of sub-section (1) in which an application for permission has been made with such fee as may be prescribed by the Chairperson in this behalf but no reply has been sent to the applicant within seven days from the date of the application. **[230. Disposal of things removed under this Chapter.—(1) Any of the things caused to be removed](http://indiankanoon.org/doc/1671147/)** by the Chairperson under this Chapter shall, unless the owner thereof turns up to take back such thing and pays to the Chairperson the charges for the removal and storage of such thing, be disposed of by the Chairperson by public auction or in such other manner and within such time as the Chairperson thinks fit. [(2) The charges for removal and storage and sale of the thing sold under sub-section (1) shall be paid](http://indiankanoon.org/doc/98767/) out of the proceeds of the sale thereof and the balance, if any, shall be paid to the owner of the thing sold on a claim being made therefor within a period of one year from the date of sale, and if no such claim is made within the said period, shall be credited to the New Delhi Municipal Fund. _Naming and numbering of streets and numbering of buildings_ **[231. Naming and numbering of streets.—(1) The Chairperson may—](http://indiankanoon.org/doc/392114/)** [(a) with the sanction of the Council determine the name or number by which any street or public](http://indiankanoon.org/doc/337097/) place vested in the Council shall be known; [(b) cause to be put up or painted at a conspicuous part of any building, wall or place at or near](http://indiankanoon.org/doc/1996610/) each end, corner or entrance of such street or on some convenient part of such street, the name or number by which it is to be known; [(c) cause to be put up or painted on boards of suitable size the name of any public place vested in](http://indiankanoon.org/doc/1326944/) the Council; [(d) determine the number or sub-number by which any premises or part of such premises shall be](http://indiankanoon.org/doc/803043/) known and cause such number or sub-number to be fixed to the side or outer door of such premises or to some place at the entrance of the enclosure thereof. [(2) No person shall destroy, remove, deface or in any way injure or alter any such name or number or](http://indiankanoon.org/doc/886077/) sub-number or put up or paint any name or number or sub-number different from that put up or painted by order of the Chairperson. _Repair or enclosure of dangerous places_ **[232. Chairperson to take steps for repairing or enclosing dangerous places.—(1) If any place is,](http://indiankanoon.org/doc/951627/)** in the opinion of the Chairperson, for want of sufficient repair or protection or enclosure, or owing to some work being carried on thereupon, dangerous or causing inconvenience to passengers along a street or to other persons including the owner or occupier of the said place, who have legal access thereto or to the neighbourhood thereof, the Chairperson may by notice in writing require the owner or occupier of such place to repair, protect or enclose the same or take such other step as shall appear to the Chairperson necessary in order to prevent the danger or inconvenience arising therefrom. [(2) The Chairperson may before giving any such notice or before the period of any such notice has](http://indiankanoon.org/doc/281156/) expired, take such temporary measures as he thinks fit to prevent the danger or inconvenience arising ----- therefrom; and any expense incurred by the Chairperson in taking such temporary measures shall be recoverable from the owner or occupier of the place as an arrear of tax under this Act. _Lighting of streets_ **[233. Measures for lighting.—The Chairperson shall—](http://indiankanoon.org/doc/1981305/)** [(a) take measures for lighting in a suitable manner all such public streets and public places as](http://indiankanoon.org/doc/760479/) may be specified by him; [(b) procure, erect and maintain such number of lamps, lamp posts and other appurtenances as](http://indiankanoon.org/doc/1169002/) may be necessary for the said purpose; [(c) cause such lamps to be lighted by means of oil, electricity or such other light as he may](http://indiankanoon.org/doc/181767/) determine. **[234. Prohibition of removal, etc., of lamps.—(1) No person shall, without lawful authority, take](http://indiankanoon.org/doc/1078158/)** away or wilfully or negligently break or throw down or damage— [(a) any lamp or any appurtenance of any lamp or lamp post or lamp iron set up; in any public](http://indiankanoon.org/doc/789832/) street or any public place; [(b) any electric wire for lighting such lamp;](http://indiankanoon.org/doc/29172/) [(c) any post, pole, standard, stay, strut, bracket or other contrivance for carrying, suspending or](http://indiankanoon.org/doc/1986377/) supporting any electric wire or lamp. [(2) No person shall wilfully or negligently extinguish the light of any lamp set up in any public street](http://indiankanoon.org/doc/707208/) or any public place. [(3) If any person wilfully or through negligence or accident breaks, or causes any damage to any of](http://indiankanoon.org/doc/1597288/) the things described in sub-section (1), he shall in addition to any penalty to which he may be subjected under this Act, pay the expenses of repairing the damage so done by him. CHAPTER XIV BUILDING REGULATIONS **[235. General superintendence, etc., of the Central Government.—Notwithstanding anything](http://indiankanoon.org/doc/1875613/)** contained in any other provision of this Act, the Chairperson shall exercise his powers and discharge his functions under this Chapter, under the general superintendence, direction and control of the Central Government. **[236. Definition.—In this Chapter, unless the context otherwise requires, the expression “to erect a](http://indiankanoon.org/doc/916591/)** building” means— [(a) to erect a new building on any site whether previously built upon or not;](http://indiankanoon.org/doc/1159137/) [(b) to re-erect—](http://indiankanoon.org/doc/1658766/) [(i) any building of which more than one-half of the cubical contents above the level of the](http://indiankanoon.org/doc/1586546/) plinth have been pulled down, burnt or destroyed; or [(ii) any building of which more than one-half of the superficial area of the external walls](http://indiankanoon.org/doc/1888915/) above the level of the plinth has been pulled down; or [(iii) any frame building of which more than-half of the number of the columns or beams in](http://indiankanoon.org/doc/524962/) the external walls have been pulled down; [(c) to convert into a dwelling house any building or any part of a building not originally](http://indiankanoon.org/doc/118623/) constructed for human habitation or, if originally so constructed, subsequently appropriated for any other purpose; [(d) to convert into more than one dwelling house a building originally constructed as one](http://indiankanoon.org/doc/1913949/) dwelling house only; [(e) to convert into a place of religious worship or into a sacred building any place or building not](http://indiankanoon.org/doc/1266979/) originally constructed for such purpose; ----- [(f) to roof or cover an open space between walls or buildings to the extent of the structure which](http://indiankanoon.org/doc/1671084/) is formed by the roofing or covering of such space; [(g) to convert two or more tenements in a building into a greater or lesser number;](http://indiankanoon.org/doc/1099339/) [(h) to convert into a stall, shop, warehouse or godown, stable, factory or garage any building not](http://indiankanoon.org/doc/1205957/) originally constructed for use as such or which was not so used before the change; [(i) to convert a building which when originally constructed was legally exempt from the](http://indiankanoon.org/doc/1796836/) operations of any building regulations contained in this Act or in any bye-laws made thereunder or in any other law, into a building which had it been originally erected in its converted form, would have been subject to such building regulations; [(j) to convert into or use as a dwelling house any building which has been discontinued as or](http://indiankanoon.org/doc/1437659/) appropriated for any purpose other than, a dwelling house. **[237. Prohibition of building without sanction.—(1) No person shall erect or commence to erect any](http://indiankanoon.org/doc/1540092/)** building or execute any of the works specified in section 239 except with the previous sanction of the Chairperson not otherwise than in accordance with the provisions of this Chapter and of the bye-laws made under this Act in relation to the erection of buildings or execution of works. [(2) In such areas as may be specified by bye-laws made in this behalf, no roof, verandah, pandal or](http://indiankanoon.org/doc/1625156/) wall of a building or no shed or fence shall be constructed or reconstructed of cloth, grass leaves, mats or other inflammable materials except with the written permission of the Chairperson, nor shall any such roof, verandah, pandal, wall, shed or fence constructed or reconstructed in any year be retained in a subsequent year except with fresh permission obtained in this behalf. **[238. Erection of building.—(1) Every person who intends to erect a building shall apply for sanction](http://indiankanoon.org/doc/312119/)** by giving notice in writing of his intention to the Chairperson in such form and containing such information as may be prescribed by bye-laws made in this behalf. [(2) Every such notice shall be accompanied by such documents and plans as may be so prescribed.](http://indiankanoon.org/doc/179282/) **[239. Applications for additions to, or repairs of, buildings.—(1) Every person who intends to](http://indiankanoon.org/doc/815372/)** execute any of the following works, that is to say,— [(a) to make any addition to a building;](http://indiankanoon.org/doc/260132/) [(b) to make any alteration or repairs to a building involving the removal or re-erection of any](http://indiankanoon.org/doc/972244/) external or partly wall thereof or of any wall which supports the roof thereof to an extent exceeding one-half of such wall above the plinth level, such half to be measured in superficial metres; [(c) to make any alteration or repairs to a frame building involving the removal or re-erection of](http://indiankanoon.org/doc/776546/) more than one-half of the columns or posts in any such wall thereof as aforesaid; or involving the removal or re-erection of any such wall thereof as aforesaid to an extent exceeding one-half of such wall above plinth level, such half to be measured in superficial metres; [(d) to make any alteration in a building involving—](http://indiankanoon.org/doc/462038/) [(i) the sub-division of any room in such building so as to convert the same into two or more](http://indiankanoon.org/doc/107592/) separate rooms; or [(ii) the conversion of any passage or space in such building into a room or rooms;](http://indiankanoon.org/doc/1056388/) [(e) to repair, remove, construct, reconstruct or make any addition to or structural alteration in any](http://indiankanoon.org/doc/33442/) portion of a building abutting on a street which stands within the regular line of such street; [(f) to close permanently any door or window in an external wall;](http://indiankanoon.org/doc/591581/) [(g) to remove or reconstruct the principal staircase or to alter its position;](http://indiankanoon.org/doc/1489010/) shall apply for sanction by giving notice in writing of his intention to the Chairperson in such form and containing such information as may be prescribed by bye-laws made in this behalf. [(2) Every such notice shall be accompanied by such documents and plans as may be so prescribed.](http://indiankanoon.org/doc/338608/) ----- **[240. Conditions of valid notice.—(1) A person giving the notice required by section 238 shall](http://indiankanoon.org/doc/1996656/)** specify the purpose for which it is intended to use the building to which such notice relates; and a person giving the notice required by section 239, shall specify whether the purpose for which the building is being used is proposed or likely to be changed by the execution of the proposed work. [(2) No notice shall be valid until the information required under sub-section (1) and any further](http://indiankanoon.org/doc/973125/) information and plans which may be required by bye-laws made in this behalf have been furnished to the satisfaction of the Chairperson alongwith the notice. **[241. Sanction or refusal of building or work.—(1) The Chairperson shall sanction the erection of a](http://indiankanoon.org/doc/1868594/)** building or the execution of a work unless such building or work would contravene any of the provisions of sub-section (2) of this section or the provisions of section 245. [(2) The grounds on which the sanction of a building or work may be refused shall be the following,](http://indiankanoon.org/doc/240624/) namely:— [(a) that the building or work or the use of the site for the building or work or any of the](http://indiankanoon.org/doc/1299517/) particulars comprised in the site plan, ground plan, elevation, section or specification would contravene the provisions of any bye-law made in this behalf or of any other law or rule, bye-law or order made under such other law; [(b) that the notice for sanction does not contain the particulars or is not prepared in the manner](http://indiankanoon.org/doc/1292033/) required under the bye-laws made in this behalf; [(c) that any information or documents required by the Chairperson under this Act or any bye-laws](http://indiankanoon.org/doc/896277/) made thereunder has or have not been duly furnished; [(d) that in cases falling under section 216, lay-out plans have not been sanctioned in accordance](http://indiankanoon.org/doc/50211/) with section 217; [(e) that the building or work would be an encroachment on Central Government or Government](http://indiankanoon.org/doc/1844125/) land or land vested in the Council; [(f) that the site of the building or work does not abut on a street or projected street and that there](http://indiankanoon.org/doc/88929/) is no access to such building or work from any such street by a passage or pathway appertaining to such site; [(g) that the land on which it is proposed to erect or re-erect such building is vested in the Central](http://indiankanoon.org/doc/1171164/) Government or Government or in the Council, and the consent of the Government concerned or, as the case may be, of the Council has not been obtained, or if the title of the land is in dispute between such person and the Council or any Government, or for any other reason, to be communicated in writing to the person, which is deemed to be just and sufficient as effecting such building. [(3) The Chairperson shall communicate the sanction to the person who has given the notice; and](http://indiankanoon.org/doc/1407003/) where he refuses sanction on any of the grounds specified in sub-section (2) or under section 245 he shall record a brief statement of his reasons for such refusal and the Chairperson shall communicate the refusal alongwith the reasons therefor to the person who has given the notice. [(4) The sanction or refusal as aforesaid shall be communicated in such manner as may be specified in](http://indiankanoon.org/doc/1961886/) the bye-laws made in this behalf. **[242. When building or work may be proceeded with.—(1) Where within a period of sixty days or](http://indiankanoon.org/doc/901348/)** in cases falling under clause (b) of section 236 within a period of thirty days, after the receipt of any notice under section 238 or section 239 or of the further information, if any, required under section 240, the Chairperson does not refuse to sanction the building or work or upon refusal, does not communicate the refusal to the person who has given the notice, the Chairperson shall be deemed to have accorded sanction to the building or work and the person by whom the notice has been given shall be free to commence and proceed with the building or work in accordance with his intention as expressed in the notice and the documents and plans accompanying the same: Provided that if it appears to the Chairperson that the site of the proposed building or work is likely to be affected by any scheme of acquisition of land for any public purpose or by any proposed regular line of a public street or extension, improvement, widening or alteration of any street, the Chairperson may withhold sanction of the building or work for such period not exceeding three months as he deems fit and ----- the period of sixty days or as the case may be, the period of thirty days specified in this sub-section shall be deemed to commence from the date of the expiry of the period for which the sanction has been withheld. [(2) Where a building or work is sanctioned or is deemed to have been sanctioned by the Chairperson](http://indiankanoon.org/doc/551232/) under sub-section (1), the person who has given the notice shall be bound to erect the building or execute the work in accordance with such sanction but not so as to contravene any of the provisions of this Act or any other law or of bye-law made thereunder. [(3) If the person or anyone lawfully claiming under him does not commence the erection of the](http://indiankanoon.org/doc/1065880/) building or the execution of the work within one year of the date on which the building or work is sanctioned or is deemed to have been sanctioned, he shall have to give notice under section 238 or, as the case may be, under section 239 for fresh sanction of the building or the work and the provisions of this section shall apply in relation to such notice as they apply in relation to the original notice. [(4) Before commencing the erection of a building or execution of a work within the period specified](http://indiankanoon.org/doc/1006580/) in sub-section (3), the person concerned shall give notice to the Chairperson of the proposed date of the commencement of the erection of the building or the execution of the work: Provided that if the commencement does not take place within seven days of the date so notified, the notice shall be deemed not to have been given and a fresh notice shall be necessary in this behalf. **[243. Sanction accorded under misrepresentation.—If at any time after the sanction of any building](http://indiankanoon.org/doc/102559/)** or work has been accorded, the Chairperson is satisfied that such sanction was accorded in consequence of any material misrepresentation or fraudulent statement contained in the notice given or information furnished under sections 238, 239 and 240, he may by order in writing cancel for reasons to be recorded such sanction and any building or work commenced, erected or done shall be deemed to have been commenced, erected or done without such sanction: Provided that before making any such order the Chairperson shall give reasonable opportunity to the person affected as to why such order should not be made. **[244. Buildings at corners of streets.—The Chairperson may require any building intended to be](http://indiankanoon.org/doc/169880/)** erected at the corner of two streets to be rounded off or splayed or cut off to such height and to such extent as he may determine, and may acquire such portion of the site at the corner as he may consider necessary for public convenience or amenity. **[245. Provisions as to buildings and works on either side of new streets.—(1) The erection of any](http://indiankanoon.org/doc/1625429/)** building on either side of a new street may be refused by the Chairperson unless and until such new street has been levelled, and wherever in the opinion of the Chairperson practicable, metalled or paved, drained, lighted and laid with a water main to its satisfaction. [(2) The erection of any such building or the execution of any such work may be refused by the](http://indiankanoon.org/doc/974462/) Chairperson if such building or any portion thereof or such work comes within the regular line of any street, the position and direction of which has been laid down by the Chairperson but which has not been actually constructed or if such building or any portion thereof or such work is in contravention of any building or any other scheme or plan prepared under this Act or any other law for the time being in force. **[246. Period for completion of building or work.—The Chairperson, when sanctioning the erection](http://indiankanoon.org/doc/1242705/)** of a building or execution of a work, shall specify a reasonable period after the commencement of the building or work within which the building or work is to be completed and if the building or work is not completed within the period so specified, it shall not be continued thereafter without fresh sanction obtained in the manner hereinbefore provided, unless the Chairperson on application made therefor has allowed an extension of that period. **[247. Order of demolition and stoppage of buildings or works in certain cases and appeal.—](http://indiankanoon.org/doc/1323936/)** [(1) Where the erection of any building or execution of any work has been commenced, or is being carried](http://indiankanoon.org/doc/443826/) on, or has been completed without or contrary to the sanction referred to in section 241 or in contravention of any condition subject to which such sanction has been accorded or in contravention of any of the provisions of this Act or bye-laws made thereunder, the Chairperson may, in addition to any other action that may be taken under this Act, make an order directing that such erection or work shall be demolished by the person at whose instance the erection or work has been commenced or is being carried ----- on or has been completed, within such period (not being less than five days and more than fifteen days from the date on which a copy of the order of demolition with a brief statement of the reasons therefor has been delivered to that person), as may be, specified in the order of demolition: Provided that no order of demolition shall be made unless the person has been given by means of a notice served in such manner as the Chairperson may think fit, a reasonable opportunity of showing cause why such order shall not be made: Provided further that where the erection or work has not been completed, the Chairperson may by the same order or by a separate order, whether made at the time of the issue of the notice under the first proviso or at any other time, direct the person to stop the erection or work until the expiry of the period within which an appeal against the order of demolition, if made, may be preferred under sub-section (2). [(2) Any person aggrieved by an order of the Chairperson made under sub-section (1) may prefer an](http://indiankanoon.org/doc/1658938/) appeal against the order to the Appellate Tribunal within the period specified in the order for the demolition of the erection or work to which it relates. [(3) Where an appeal is preferred under sub-section (2) against an order of demolition the Appellate](http://indiankanoon.org/doc/1975132/) Tribunal may, subject to the provisions of sub-section (3) of section 255 stay the enforcement of that order on such terms, if any, and for such period, as it may think fit: Provided that where the erection of any building or execution of any work has not been completed at the time of the making of the order of demolition, no order staying the enforcement of the order of demolition shall be made by the Appellate Tribunal unless security, sufficient in the opinion of the said Tribunal has been given by the appellant for not proceeding, with such erection or work pending the disposal of the appeal. [(4) No court shall entertain any suit, application or order proceeding for injunction or other relief](http://indiankanoon.org/doc/1723852/) against the Chairperson to restrain him from taking any action or making any order in pursuance of the provisions of this section. [(5) Subject to an order made by the Administrator on appeal under section 256, every order made by](http://indiankanoon.org/doc/1280053/) the Appellate Tribunal on appeal under this section, and subject to the orders of the Administrator and the Appellate Tribunal on appeal, the order of demolition made by the Chairperson shall be final and conclusive. [(6) Where no appeal has been preferred against an order of demolition made by the Chairperson](http://indiankanoon.org/doc/82801/) under sub-section (1) or where an order of demolition made by the Chairperson under that sub-section has been confirmed on appeal, whether with or without variation, by the Appellate Tribunal and by the Administrator in a case where an appeal has been preferred against the order of the Appellate Tribunal, the person against whom the order has been made shall comply with the order within the period specified therein, or as the case may be, within the period, if any fixed by the Appellate Tribunal or the Administrator on appeal and on the failure of the person to comply with the order within such period, the Chairperson may himself cause the erection or the work to which the order relates to be demolished and the expenses of such demolition shall be recoverable from such person as an arrear of tax under this Act. **[248. Order of stoppage of buildings or works in certain cases.—(1) Where the erection of any](http://indiankanoon.org/doc/598716/)** building or execution of any work has been commenced or is being carried on (but has not been completed) without or contrary to the sanction referred to in section 241, or in contravention of any condition subject to which such sanction has been accorded or in contravention of any provisions of this Act or bye-laws made thereunder, the Chairperson may in addition to any other action that may be taken under this Act, by order require the person at whose instance the building or the work has been commenced or is being carried on to stop the same forthwith. [(2) If an order made by the Chairperson under section 247 or under sub-section (1) of this section](http://indiankanoon.org/doc/1289044/) directing any person to stop the erection of any building or execution of any work is not complied with, the Chairperson may require any police officer to remove such person and all his assistants and workmen from the premises or to seize any construction material, tool, machinery, scaffolding or other things used in the erection of any building or execution of any work within such time as may be specified in the requisition and such police officer shall comply with the requisition accordingly. ----- [(3) Any of the things caused to be seized by the Chairperson under sub-section (2) shall be disposed](http://indiankanoon.org/doc/1116777/) of by him in the manner specified in section 230. [(4) After the requisition under sub-section (2) has been complied with, the Chairperson may, if he](http://indiankanoon.org/doc/891101/) thinks fit, depute by a written order a police officer or a municipal officer or other municipal employee of the Council to watch the premises in order to ensure that the erection of the building or the execution of the work is not continued. [(5) Where a police officer or a municipal officer or other municipal employee has been deputed under](http://indiankanoon.org/doc/247261/) sub-section (4) to watch the premises, the cost of such deputation shall be paid by the person at whose instance such erection or execution is being continued or to whom notice under sub-section (1) was given and shall be recoverable from such person as an arrear of tax under this Act. **[249. Power of Chairperson to require alteration of work.—(1) The Chairperson may at any time](http://indiankanoon.org/doc/1083512/)** during the erection of any building or execution of any work or at any time after the completion thereof by a written notice of not less than seven days specify any matter in respect of which such erection or execution is without or contrary to the sanction referred to in section 241 or is in contravention of any condition of such sanction or any of the provisions of this Act or any bye-laws made thereunder and require the person who gave the notice under section 238 or section 239 or the owner of such building or work either— [(a) to make such alterations as may be specified in the said notice with the object of bringing the](http://indiankanoon.org/doc/723934/) building or work in conformity with the said sanction, condition or provisions, or [(b) to show cause why such alterations should not be made, within a period stated in the notice.](http://indiankanoon.org/doc/245009/) [(2) If the person or the owner does not show cause as aforesaid, he shall be bound to make the](http://indiankanoon.org/doc/58093/) alterations specified in the notice. [(3) If the person or the owner shows cause as aforesaid, the Chairperson shall by an order either](http://indiankanoon.org/doc/742790/) cancel the notice issued under sub-section (1) or confirm the same subject to such modifications as he thinks fit. **[250. Power to seal unauthorised constructions.—(1) It shall be lawful for the Chairperson, at any](http://indiankanoon.org/doc/1684967/)** time, before or after making an order of demolition under section 247 or of the stoppage of the erection of any building or execution of any work under section 247 or under section 248, to make an order directing the sealing of such erection or work or of the premises in which such erection or work is being carried on or has been completed in the manner prescribed by rules, for the purpose of carrying out the provisions of this Act, or for preventing any dispute as to the nature and extent of such erection or work. [(2) Where any erection or work or any premises in which any erection or work is being carried on,](http://indiankanoon.org/doc/445992/) has or have been sealed, the Chairperson may, for the purpose of demolishing such erection or work in accordance with the provisions of this Act, order such seal to be removed. [(3) No person shall remove such seal except—](http://indiankanoon.org/doc/1619648/) [(a) under an order made by the Chairperson under sub-section (2); or](http://indiankanoon.org/doc/1647610/) [(b) under an order of an Appellate Tribunal or the Administrator, made in an appeal under this](http://indiankanoon.org/doc/1529134/) Act. **[251. Completion certificates.—(1) Every person who employs an architect registered with the](http://indiankanoon.org/doc/618295/)** Council or an architects or an engineer or a person approved by the Chairperson to design or erect a building or execute any work shall, within one month after the completion of the erection of the building or execution of the work, deliver or send or cause to be delivered or sent to the Chairperson a notice in writing of such completion accompanied by a certificate in the form prescribed by bye-laws made in this behalf and shall give to the Chairperson all necessary facilities for the inspection of such building or work. [(2) No person shall occupy or permit to be occupied any such building or use or permit to be used any](http://indiankanoon.org/doc/1685180/) building or a part thereof effected by any such work until permission has been granted by the Chairperson in this behalf in accordance with bye-laws made under this Act: Provided that if the Chairperson fails within a period of thirty days after the receipt of the notice of completion to communicate its refusal to grant such permission, such permission shall be deemed to have been granted. ----- **[252. Restrictions on uses of buildings.—No person shall, without the written permission of the](http://indiankanoon.org/doc/1325345/)** Chairperson, or otherwise than in conformity with the conditions, if any, of such permission— [(a) use or permit to be used for human habitation any part of a building not originally erected or](http://indiankanoon.org/doc/1885292/) authorised to be used for that purpose or not used for that purpose before any alteration has been made therein by any work executed in accordance with the provisions of this Act and the bye-laws made thereunder; [(b) change or allow the change of the use of any land or building;](http://indiankanoon.org/doc/840020/) [(c) convert or allow the conversion of one kind of tenement into another kind.](http://indiankanoon.org/doc/1848588/) **[253. Appellate Tribunal.—(1) The Central Government shall, by notification in the Official Gazette,](http://indiankanoon.org/doc/1364933/)** constitute one or more Appellate Tribunals with headquarters at Delhi or New Delhi, for deciding appeals preferred under section 247 or section 254. [(2) An Appellate Tribunal shall consist of one person to be appointed by the Central Government on](http://indiankanoon.org/doc/1688896/) such terms and conditions of service as may be prescribed by rules. [(3) A person shall not be qualified for appointment as the presiding officer of an Appellate tribunal](http://indiankanoon.org/doc/1352558/) unless he is, or has been, a district judge or an additional district judge or has, for at least ten years, held a judicial office in India. [(4) The Central Government may, if it so thinks fit, appoint one or more persons having special](http://indiankanoon.org/doc/587396/) knowledge of, or experience in, matters involved in such appeals, to act as assessors to advise the Appellate Tribunal in the proceedings before it, but no advice of the assessors shall be binding on the Appellate Tribunal. [(5) The Central Government shall, by notification in the Official Gazette, define the territorial limits](http://indiankanoon.org/doc/1314041/) within which an Appellate Tribunal shall exercise its jurisdiction, and where different Appellate Tribunals have jurisdiction over the same territorial limits, the Central Government shall also provide for the distribution and allocation of work to be performed by such Tribunals. [(6) For the purpose of enabling it to discharge its functions under this Act, every Appellate Tribunal](http://indiankanoon.org/doc/1735842/) shall have a Registrar and such other staff on such terms and conditions of service as may be prescribed by rules: Provided that the Registrar and staff may be employed jointly for all or any number of such Tribunals in accordance with the rules. **[254. Appeals against certain orders or notices issued under the Act.—(1) Any person aggrieved](http://indiankanoon.org/doc/1897632/)** by any of the following orders made or notices issued under this Act, may prefer an appeal against such order or notice to the Appellate Tribunal, namely:— [(a) an order according or disallowing sanction to a lay-out plan under section 217;](http://indiankanoon.org/doc/315151/) [(b) an order directing the alteration or demolition of any street under section 218;](http://indiankanoon.org/doc/1465425/) [(c) a notice under sub-section (1) of section 219;](http://indiankanoon.org/doc/1753011/) [(d) a notice under sub-section (2) of section 221;](http://indiankanoon.org/doc/1050566/) [(e) an order directing the disposal of things removed under Chapter XIII or seized under section](http://indiankanoon.org/doc/689041/) 248, or an order rejecting the claim of any person for the balance of the proceeds of sale of things so disposed of; [(f) an order sanctioning or refusing to sanction the erection of any building or the execution of](http://indiankanoon.org/doc/210902/) any work under section 241; [(g) an order withholding sanction under the proviso to sub-section (1) of section 242;](http://indiankanoon.org/doc/138442/) [(h) an order cancelling a sanction under section 243;](http://indiankanoon.org/doc/582917/) [(i) an order requiring the rounding off, splaying or cutting off the height of a building intended to](http://indiankanoon.org/doc/249767/) be erected, or for the acquisition of any portion of a site, under section 244; ----- [(j) an order disallowing the erection of any building or the execution of any work under](http://indiankanoon.org/doc/1092337/) section 245; [(k) an order requiring the stoppage of any erection or work under section 248;](http://indiankanoon.org/doc/119366/) [(l) an order requiring the alteration of any building or work under section 249;](http://indiankanoon.org/doc/1139733/) [(m) an order directing the sealing of unauthorised constructions under section 250;](http://indiankanoon.org/doc/1202162/) [(n) an order refusing to grant permission under sub-section (2) of section 251;](http://indiankanoon.org/doc/473113/) [(o) an order granting or refusing permission under section 252;](http://indiankanoon.org/doc/629491/) [(p) any such other order or notice relating to or arising out of planned development under the](http://indiankanoon.org/doc/256012/) provisions of this Act as may be prescribed by rules. [(2) An appeal under this section shall be filed within thirty days from the date of the order or notice](http://indiankanoon.org/doc/54880/) appealed against: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period. [(3) An appeal to the Appellate Tribunal shall be made in such form and shall be accompanied by a](http://indiankanoon.org/doc/409064/) copy of the order or notice appealed against and by such fees as may be prescribed by rules. **[255. Procedure of the Appellate Tribunal.—(1)](http://indiankanoon.org/doc/1126878/)** The Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the order or notice appealed against or may refer the case back to the authority or officer against whose order or notice the appeal is filed, for a fresh order or notice, after taking additional evidence, if necessary, or such other action as the Appellate Tribunal may specify. [(2) The Appellate Tribunal shall send a copy of every order passed by it to the parties to the appeal.](http://indiankanoon.org/doc/1435624/) [(3) No Appellate Tribunal shall, in any appeal pending before it in respect of any order or notice](http://indiankanoon.org/doc/727360/) under this Act, make an interim order (whether by way of injunction or stay) against the Council or against any officer or servant of the Council acting or purporting to act in his official capacity, unless an opportunity is given to the Council or its officer or servant to be heard in the matter: Provided that the Appellate Tribunal may without giving an opportunity as aforesaid make an interim order as an exceptional measure if it is satisfied for reasons to be recorded by it in writing that it is necessary so to do for preventing any loss being caused to the person filing the appeal which cannot be adequately compensated in money: Provided further that every such interim order shall, if it is not vacated earlier, cease to have effect on the expiry of a period of fourteen days from the date on which it is made unless before the expiry of that period, the Appellate Tribunal confirms or modifies that order after giving to the Council or its officer or servant an opportunity of being heard. [(4) Subject to rules that may be made by the Central Government in this behalf, the awarding of](http://indiankanoon.org/doc/1129300/) damages in and the costs of, and incidental to, any appeal before an Appellate Tribunal, shall be in its discretion and it shall have full power to determine by and to whom and to what extent and subject to what conditions, if any, such damages or costs are to be paid and to give, in its order disposing of an appeal, necessary directions for the purposes aforesaid. [(5) An order of the Appellate Tribunal made under this section may be executed or caused to be](http://indiankanoon.org/doc/41615/) executed by it on the application of the person in whose favour the order has been made. [(6) In hearing and deciding an appeal or in the execution of an order, an Appellate Tribunal shall](http://indiankanoon.org/doc/1816909/) follow such procedure as may be prescribed by rules. [(7) Every Appellate Tribunal, shall in addition to the powers conferred on it under this Act, have the](http://indiankanoon.org/doc/1161523/) same power as are vested in a Civil Court while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:— [(a) summoning and enforcing the attendance of persons and examining them on oath;](http://indiankanoon.org/doc/1254506/) [(b) requiring the discovery and inspection of documents;](http://indiankanoon.org/doc/1653307/) ----- [(c) receiving evidence on affidavits;](http://indiankanoon.org/doc/1296998/) [(d) requisitioning any public record or copies thereof from any court or office;](http://indiankanoon.org/doc/1965545/) [(e) issuing commissions for the examination of witnesses or documents; and](http://indiankanoon.org/doc/1147960/) [(f) any other matter which may be prescribed by rules.](http://indiankanoon.org/doc/262109/) and every proceeding of an Appellate Tribunal in hearing or deciding an appeal or in connection with the execution of its order, shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purpose of section 196 of the Indian Penal Code (45 of 1860), and every Appellate Tribunal shall be deemed to be a Civil Court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **[256. Appeal against orders of Appellate Tribunal.—(1) An appeal shall lie to the Administrator,](http://indiankanoon.org/doc/95712/)** against an order of the Appellate Tribunal made in an appeal under section 247 or section 254, confirming, modifying or annulling an order made or notice issued under this Act. [(2) The provisions of sub-sections (2) and (3) of section 254 and section 255 and the rules made](http://indiankanoon.org/doc/866624/) thereunder, shall, so far as may be, apply to the filing and disposal of an appeal under this section as they apply to the filing and disposal of an appeal under those sections. [(3) An order of the Administrator on an appeal under this section, and subject only to such order, an](http://indiankanoon.org/doc/884352/) order of the Appellate Tribunal under section 254, and subject to such orders of the Administrator or an Appellate Tribunal, an order or notice referred to in sub-section (1) of that section, shall be final. **[257. Bar of jurisdiction of courts.—(1) After the commencement of this Act, no court shall entertain](http://indiankanoon.org/doc/1561570/)** any suit, application or other proceedings in respect of any order or notice appealable under section 247 or section 254 and no such order or notice shall be called in question otherwise than by preferring an appeal under those sections. [(2) Notwithstanding anything contained in sub-section (1), every suit, application or other proceeding](http://indiankanoon.org/doc/1447537/) pending in any court immediately before the commencement of this Act, in respect of any order or notice appealable under section 247 or section 254, shall continue to be dealt with and disposed of by that court as if the said section had not been brought into force. **[258. Removal of dangerous buildings.—(1) If it appears to the Chairperson at any time that any](http://indiankanoon.org/doc/1454738/)** building is in a ruinous condition, or likely to fall, or in any way dangerous to any person occupying, resorting to or passing by such building or any other building or place in the neighbourhood of such building, the Chairperson may, by order in writing, require the owner or occupier of such building to demolish, secure or repair such building or do one or more of such things within such period as may be specified in the order, so as to prevent all cause of danger therefrom. [(2) The Chairperson may also, if he thinks fit, require such owner or occupier by the said order either](http://indiankanoon.org/doc/177693/) forthwith or before proceeding to demolish, secure or repair the building, to set up a proper and sufficient hoard or fence for the protection of passers-by and other persons, with a convenient platform and hand-rail wherever practicable to serve as a foot-way for passengers outside of such hoard or fence. [(3) If it appears to the Chairperson that danger from a building which is in a ruinous condition or](http://indiankanoon.org/doc/653029/) likely to fall is imminent, he may, before making the order aforesaid, fence off, demolish, secure or repair the said building or take such steps as may be necessary to prevent the danger. [(4) If the owner or occupier of the building does not comply with the order within the period specified](http://indiankanoon.org/doc/518070/) therein, the Chairperson shall take such steps in relation to the building as to prevent all cause of danger therefrom. [(5) All expenses incurred by the Chairperson in relation to any building under this section shall be](http://indiankanoon.org/doc/977965/) recoverable from the owner or occupier thereof as an arrear of tax under this Act. **[259. Power to order building to be vacated in certain circumstances.—(1) The Chairperson may](http://indiankanoon.org/doc/938435/)** by order in writing direct that any building which in his opinion is in a dangerous condition or is not provided with sufficient means of egress in case of fire or is occupied in contravention of section 251 be vacated forthwith or within such period as may be specified in the order: Provided that at the time of making such order the Chairperson shall record a brief statement of the reasons therefor. ----- [(2) If any person fails to vacate the building in pursuance of such order the Chairperson may direct](http://indiankanoon.org/doc/1693756/) any police officer to remove such person from the building and the police officer shall comply with such direction accordingly. [(3) The Chairperson shall, on the application of any person who has vacated, or been removed from](http://indiankanoon.org/doc/23982/) any building in pursuance of an order made by him, re-instate such person in the building on the expiry of the period for which the order has been in force according as the circumstances prevailing at that time permit. **[260. Power of the Central Government to make bye-laws.—(1) The Central Government may, by](http://indiankanoon.org/doc/1694004/)** notification in the Official Gazette, make bye-laws for carrying out the provisions of this Chapter: Provided that all bye-laws made by the New Delhi Municipal Committee under sub-section (3) of section 189 of the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911) and in force immediately before such commencement, shall be deemed to have been made under the provision of this section and shall continue to have the same force and effect after such commencement until it is amended, varied, rescinded or superseded under the provision of this section. [(2) In particular and without prejudice to the generality of the foregoing power, such bye-laws may](http://indiankanoon.org/doc/1948060/) provide for all or any of the following matters, namely:— [(a) the regulation or restriction of the use of sites for buildings for different areas;](http://indiankanoon.org/doc/499342/) [(b) the regulation or restriction of buildings in different areas;](http://indiankanoon.org/doc/610470/) [(c) the form of notice of erection of any building or execution of any work and the fee in respect](http://indiankanoon.org/doc/906785/) of the same; [(d) the plans and documents to be submitted together with such notice and the information and](http://indiankanoon.org/doc/728756/) further information to be furnished; [(e) the level and width of foundation, level of lowest floor and stability of structure;](http://indiankanoon.org/doc/576569/) [(f) the construction of buildings and the materials to be used in the construction of buildings;](http://indiankanoon.org/doc/1731643/) [(g) the height of buildings whether absolute or relative to the width of streets or to different areas;](http://indiankanoon.org/doc/1850043/) [(h) the number and height of storeys composing a building and the height of rooms and the](http://indiankanoon.org/doc/546560/) dimensions of rooms intended for human habitation; [(i) the provision of open spaces external and internal, and adequate means of light and ventilation;](http://indiankanoon.org/doc/334484/) [(j) the provision of means of egress in case of fire, fire-escapes and water lifting devices;](http://indiankanoon.org/doc/1347203/) [(k) the provision of secondary means of access for the removal of house refuse;](http://indiankanoon.org/doc/717301/) [(l) the materials and methods of construction of external and party walls, roofs and floors;](http://indiankanoon.org/doc/1758606/) [(m) the position, materials and methods of construction of hearths, smoke-escapes, chimneys,](http://indiankanoon.org/doc/1119147/) stair-cases, latrines, drains and cesspools; [(n) the provision of lifts;](http://indiankanoon.org/doc/1427291/) [(o) the paving of yards;](http://indiankanoon.org/doc/1496839/) [(p) the restrictions on the use of inflammable materials in buildings;](http://indiankanoon.org/doc/1570763/) [(q) the restriction on construction of foundation on certain sites;](http://indiankanoon.org/doc/865767/) [(r) the measures to be taken to protect building from dump arising from sub-soil;](http://indiankanoon.org/doc/529045/) [(s) the wells, tanks and cisterns and pumps for the supply of water for human consumption in](http://indiankanoon.org/doc/1846129/) connection with buildings; [(t) in the case of wells, the dimensions of the well, the manner of enclosing it and; if the well is](http://indiankanoon.org/doc/809872/) intended for drinking purposes, the means which shall be used to prevent pollution of the water; [(u) the supervision of buildings;](http://indiankanoon.org/doc/42892/) [(v) the setting back of garages and shops from the regular line of a street;](http://indiankanoon.org/doc/1551184/) ----- [(w) the construction of partable structures and permission for such construction.](http://indiankanoon.org/doc/1492563/) [(3) The draft of the bye-laws referred to in sub-section (1) shall be forwarded to the Chairperson, who](http://indiankanoon.org/doc/1011023/) shall cause the same to be published in the Official Gazette for inviting objections and suggestions from the public within thirty days from the date of such publication. [(4) The Chairperson shall forward the draft bye-laws to the Central Government along with his](http://indiankanoon.org/doc/1512820/) recommendations and the objections and suggestions received from the public, within three months of their publication in the Official Gazette. [(5) The Central Government may issue such directions to the Chairperson as it thinks fit, for ensuring](http://indiankanoon.org/doc/512034/) proper implementation of the bye-laws made under this section. CHAPTER XV SANITATION AND PUBLIC HEALTH _Conservancy and sanitation_ **[261. Provision for daily cleansing of streets and removal of rubbish and filth.—(1) For the](http://indiankanoon.org/doc/1673874/)** purpose of securing the efficient scavenging and cleansing of all streets and premises, the Chairperson shall provide— [(a) for the daily surface-cleansing of all streets and the removal of the sweepings therefrom, and](http://indiankanoon.org/doc/1037551/) [(b) for the removal of the contents of all receptacles and depots and of the accumulations at all](http://indiankanoon.org/doc/243891/) places provided or appointed by him under the provisions of this Act for the temporary deposit of rubbish, filth and other polluted and obnoxious matter. [(2) The Chairperson may, by public notice, issue directions as to the time at which, the manner in](http://indiankanoon.org/doc/1312372/) which, and the conditions subject to which, any matter referred to in sub-section (1) may be removed along a street or may be deposited or otherwise disposed of. **[262. Rubbish, etc., to be the property of the Council.—All matters deposited in public receptacles,](http://indiankanoon.org/doc/701761/)** depots and places provided or appointed under section 263 and all matters collected by municipal employees or contractors in pursuance of section 261 and section 265 shall be the property of the Council. **[263. Provision or appointment of receptacles, depots and places for rubbish, etc.—(1) The](http://indiankanoon.org/doc/1868619/)** Chairperson shall— [(a) provide or appoint in proper and convenient situations public receptacles, depots or places for](http://indiankanoon.org/doc/980702/) the temporary deposit of rubbish, filth and other polluted and obnoxious matter and for the final disposal of rubbish, filth and other polluted and obnoxious matter; [(b) provide dustbins for the temporary deposit of rubbish;](http://indiankanoon.org/doc/1218125/) [(c) provide vehicles or other suitable means for the removal of rubbish and offensive matter; and](http://indiankanoon.org/doc/1423329/) (d) provide covered vehicles or vessels for the removal of filth and other polluted and obnoxious matter. [(2) Different receptacles, depots or places may be provided or appointed for the temporary deposit or](http://indiankanoon.org/doc/451214/) final disposal of any of the matters specified in sub-section (1). [(3) The Chairperson shall make adequate provision for preventing receptacles, depots, places,](http://indiankanoon.org/doc/1421078/) dustbins, vehicles and vessels referred to in sub-section (1) from becoming sources of nuisance. **[264. Duty of owners and occupiers to collect and deposit rubbish, etc.—It shall be the duty of the](http://indiankanoon.org/doc/560950/)** owners and occupiers of all premises— [(a) to have the premises swept and cleaned;](http://indiankanoon.org/doc/1499537/) [(b) to cause all filth, rubbish and other polluted and obnoxious matter to be collected from their](http://indiankanoon.org/doc/805767/) respective premises and to be deposited at such times as the Chairperson, by public notice prescribes, in public receptacles, depots or places provided or appointed under section 263 for the temporary deposit or final disposal thereof; ----- [(c) to provide receptacles of the type and in the manner prescribed by the Chairperson for the](http://indiankanoon.org/doc/312401/) collection therein of all filth, rubbish and other polluted and obnoxious matter from such premises and to keep such receptacles in good condition and repair. **[265. Collection and removal of filth and polluted matter.—(1) It shall be the duty of the owner](http://indiankanoon.org/doc/207424/)** and occupier of every premises situate in any portion of New Delhi in which there is not a latrine, or urinal connected by a drain with a municipal drain, to cause all filth and polluted and obnoxious matter accumulating upon such premises to be collected and removed to the nearest receptacle or depot provided for this purpose under section 263 at such times, in such vehicle or vessel by such route and with such precautions as the Chairperson may by public notice prescribe. [(2) It shall be lawful for the Chairperson to take or cause to be taken measures for the daily collection,](http://indiankanoon.org/doc/1463925/) removal and disposal of all filth and polluted and obnoxious matters from latrines, urinals and cesspools not connected by a drain with a municipal drain from all premises situate in any portion of New Delhi. [(3) In such portion of New Delhi and in any premises where situate in which there is a latrine or](http://indiankanoon.org/doc/1686211/) urinal connected with a municipal drain, it shall not be lawful, except with the written permission of the Chairperson, for any person who is not employed by or on behalf of the Chairperson to discharge any of the duties of scavengers. **[266. Removal of rubbish, etc., accumulated on premises used as factories, workshop, etc.—The](http://indiankanoon.org/doc/1457501/)** Chairperson may, if he thinks fit,— [(a) by written notice require the owner or occupier of any premises used for carrying on any](http://indiankanoon.org/doc/677754/) manufacture, trade or business or used as a factory, workshop, trade premises or market or in any way so that rubbish, filth and other polluted and obnoxious matter are accumulated in large quantities, to collect all such rubbish, filth and other polluted and obnoxious matter accumulating thereon and to remove the same at such times and in such carts or receptacles and by such routes as may be specified in the notice to a depot or place provided or appointed under section 263, or [(b) after giving such owner or occupier notice of his intention, cause all rubbish, filth and other](http://indiankanoon.org/doc/564862/) polluted and obnoxious matter accumulated in such premises to be removed, and charge the said owner or occupier for such removal such fee as may, with the sanction of the Council be specified in the notice issued under clause (a). **[267. Prohibition against accumulation of rubbish, etc.—(1) No owner or occupier of any premises](http://indiankanoon.org/doc/497192/)** shall keep or allow to be kept for more than twenty-four hours or otherwise than in a receptacle approved by the Chairperson, any rubbish, filth and other polluted and obnoxious matter on such premises or any place belonging thereto or neglect to employ proper means to remove such rubbish, filth and other polluted and obnoxious matter from, or to cleanse, such receptacle and to dispose of such rubbish, filth and other polluted and obnoxious matter in the manner directed by the Chairperson, or fail to comply with any requisition of the Chairperson as to the construction, repair, pavement or cleansing of any latrine, or urinal on or belonging to the premises. [(2) No owner or occupier shall allow the water of any sink, drain, latrine or urinal or any rubbish, filth](http://indiankanoon.org/doc/1462774/) and other polluted and obnoxious matter to run down on or to, or be thrown or put upon, any street or into any drain in or along the side of any street except in such manner as shall prevent any avoidable nuisance from any such water, rubbish, filth or other polluted and obnoxious matter. [(3) No person shall, after due provision has been made in this respect under the foregoing provisions](http://indiankanoon.org/doc/475410/) of this Chapter for the deposit and removal of the same— [(a) deposit any rubbish, filth and other polluted and obnoxious matter in any street or on the](http://indiankanoon.org/doc/954954/) verandah of any building or on any unoccupied ground alongside any street or on the bank of a water course; or [(b) deposit any filth or other polluted and obnoxious matter in any dustbin or in any vehicle not](http://indiankanoon.org/doc/1348373/) intended for the removal of the same; or [(c) deposit rubbish in any vehicle or vessel intended for the removal of filth and other polluted](http://indiankanoon.org/doc/1677591/) and obnoxious matter. ----- **[268. Prohibition in respect of air pollutant.—No owner or occupier of any premises shall allow or](http://indiankanoon.org/doc/1328124/)** [cause to be allowed any air pollutant above the standards, laid down under clause (g) of sub-section (1) of](http://indiankanoon.org/doc/878605/) section 17 of the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981). **[269. Chairperson’s power to get premises scavenged and cleansed.—If any premises are not](http://indiankanoon.org/doc/395721/)** properly and regularly scavenged or cleansed or are in a filthy and unwholesome condition, the Chairperson may cause them to be scavenged and cleansed and recover the expenses from the owner or, as the case may be, occupier as an arrear of tax under this Act. **[270. Public latrines, urinals, etc.—(1) The Chairperson shall provide and maintain in proper and](http://indiankanoon.org/doc/1564396/)** convenient places a sufficient number of public latrines and urinals. [(2) Such public latrines and urinals shall be so constructed as to provide separate compartments for](http://indiankanoon.org/doc/1445534/) each sex and not to be a nuisance, and shall be provided with all necessary conservancy establishments, and shall regularly be cleansed and kept in proper order. _Latrines and urinals_ **[271. Construction of latrines and urinals.—(1) It shall not be lawful to construct any latrine or](http://indiankanoon.org/doc/1061306/)** urinal for any premises except with the written permission of the Chairperson and in accordance with such terms not inconsistent with the provisions of this Act or any bye-laws made thereunder as he may prescribe. [(2) In prescribing any such terms the Chairperson may determine in such case—](http://indiankanoon.org/doc/435925/) [(a) whether the premises shall be served by the service system or by the flush system or partly by](http://indiankanoon.org/doc/712576/) the one and partly by the other; and [(b) what shall be the site or position of each latrine or urinal.](http://indiankanoon.org/doc/1817247/) [(3) If any latrine or urinal is constructed on any premises in contravention of the foregoing provisions,](http://indiankanoon.org/doc/993184/) the Chairperson may, after giving not less than ten days‟ notice to the owner or occupier of such premises, alter, reconstruct, close or demolish such latrine or urinal and the expenditure incurred by the Chairperson in so doing shall be recoverable from the owner or occupier as an arrear of tax under this Act. **[272. Latrines and urinals, etc., in new buildings.—(1) It shall not be lawful to erect any building or](http://indiankanoon.org/doc/1236285/)** execute any work on or in relation to such building without providing such latrine accommodation and urinal accommodation and accommodation for bathing or for washing clothes and utensils on each floor of such building as the Chairperson may prescribe. [(2) In prescribing any such accommodation, the Chairperson may determine in each case—](http://indiankanoon.org/doc/278993/) [(a) that such building shall be served by the flush system only;](http://indiankanoon.org/doc/1781196/) [(b) what shall be the site or position of each latrine, urinal, bathing or washing place or site and](http://indiankanoon.org/doc/579285/) their number on each floor and their clear internal dimensions. [(3) It shall not be lawful to erect a residential building composed of separate tenements on the flat](http://indiankanoon.org/doc/857643/) system without providing at least one latrine and one bathing or washing place for servants on the ground floor of such building or at any other suitable place in the same premises. [(4) In this section, the expression “to erect a building” has the same meaning as in section 236.](http://indiankanoon.org/doc/630138/) **[273. Latrines and urinals for labourers, etc.—Every person employing workmen, labourers or](http://indiankanoon.org/doc/1148848/)** other persons exceeding twenty in number shall provide and maintain for the separate use of persons of each sex so employed, latrines and urinals of such description and number as the Chairperson may by notice require and within such time as may be fixed in the notice and shall keep the same in clean and proper order. **[274. Provision of latrines and urinals for markets, etc.—The Chairperson may by notice require](http://indiankanoon.org/doc/731360/)** any owner or manager of a market, cart stand, cattle shed, theatre, railway station and other places of public resort within such time as may be specified in such notice to provide and maintain for the separate use of persons of each sex, latrines and urinals of such description and number and in such position as may be specified and to keep the same in clean and proper order. ----- **[275. Other provisions as to private latrines.—The Chairperson may, by written notice—](http://indiankanoon.org/doc/370566/)** [(a) require the owner or other person having the control of any private latrine or urinal not to put](http://indiankanoon.org/doc/1313176/) the same to public use; or [(b) require the owner or other person having the control of such private latrine or urinal which in](http://indiankanoon.org/doc/268954/) the opinion of the Chairperson constitutes a nuisance, to remove the latrine or the urinal; or [(c) require any person having the control whether as owner, lessee or occupier of any land or](http://indiankanoon.org/doc/246290/) building— [(i) to have any latrine provided for the same shut out by a sufficient roof, wall or fence from](http://indiankanoon.org/doc/1876905/) the view of persons passing by or dwelling in the neighbourhood; or [(ii) to clean in such manner as the Chairperson may prescribe in the notice any latrine or](http://indiankanoon.org/doc/447821/) urinal belonging to the land or building; or [(d) where any premises intended or used for human habitation are without any latrine or urinal](http://indiankanoon.org/doc/519238/) accommodation or are provided with insufficient latrine or urinal accommodation, require the owner, lessee or occupier of such premises to provide such or such additional latrine or urinal accommodation as he may prescribe, if necessary by causing any part of such premises to be vacated and demolished in accordance with bye-laws made in this behalf. _Removal of congested buildings and buildings unfit for human habitation_ **[276. Removal of congested buildings.—(1) Where it appears to the Chairperson that any block of](http://indiankanoon.org/doc/211928/)** buildings is in an unhealthy condition by reasons of the manner in which the buildings are crowded together, or of the narrowness, closeness, or faulty arrangement of streets, or of the want of proper drainage and ventilation, or of the impracticability of cleansing the buildings or other similar cause, he shall cause the block to be inspected to by the officer authorised by him and such officer shall make a report in writing the Chairperson regarding the sanitary condition of the block. [(2) If upon receipt of such report the Chairperson considers that the sanitary condition of the block is](http://indiankanoon.org/doc/14864/) likely to cause risk of disease to the inhabitants of the buildings or of the neighbourhood or otherwise to endanger the public health, he shall with the approval of the Council select the buildings which in his opinion should wholly or in part be removed in order to abate the unhealthy condition of the block and may thereupon by notice in writing require the owners of such building remove them within such period as may be specified in the notice: Provided that before issuing the notice reasonable opportunity shall be afforded to the owners to show cause why the buildings should not be removed: Provided further that the Chairperson shall make compensation to the owners for any buildings so removed which may have been erected under proper authority. [(3) If a notice under sub-section (2) requiring any owner of a building to remove it is not complied](http://indiankanoon.org/doc/1147579/) with, then, after the expiration of the time specified in the notice the Chairperson may himself remove or cause to be removed the building required to be removed by the notice and recover from owner of the building the expenses of such removal as an arrear of tax under this Act. **[277. Power of Chairperson to require improvement of building unfit for human habitation.—](http://indiankanoon.org/doc/1942180/)** [(1) Where the Chairperson upon information in his possession is satisfied that any building is in any](http://indiankanoon.org/doc/1074551/) respect unfit for human habitation, he may, unless in his opinion the building is not capable at a reasonable expense of being rendered fit, serve upon the owner of the building a notice requiring him within such time not being less than thirty days as may be specified in the notice to execute the works of improvement specified therein and stating that in his opinion those works will render the building fit for human habitation. [(2) In addition to serving a notice under this section on the owner the Chairperson may serve a copy](http://indiankanoon.org/doc/873702/) of the notice on any other person having an interest in the building whether as a lessee, mortgagee or otherwise. [(3) In determining whether a building can be rendered fit for human habitation at a reasonable](http://indiankanoon.org/doc/1268721/) expense regard shall be had to the estimated cost of the work necessary to render it so fit and the value which it is estimated that the building will have when the works are completed. ----- **[278. Enforcement of notice requiring execution of works of improvement.—If a notice under](http://indiankanoon.org/doc/785096/)** section 277 requiring the owner of the building to execute works of improvement is not complied with, then after the expiration of the time specified in the notice the Chairperson may himself do or cause to be done the works required to be done by the notice and recover the expenses incurred in connection therewith as an arrear of tax under this Act. **[279. Power of Chairperson to order demolition of buildings unfit for human habitation.—](http://indiankanoon.org/doc/1284018/)** [(1) Where the Chairperson upon any information in his possession is satisfied that any building is unfit](http://indiankanoon.org/doc/1976160/) for human habitation and is not capable at a reasonable expense of being rendered so fit he shall serve upon the owner of the building and upon any other person having an interest in the building, whether as a lessee, mortgagee or otherwise a notice to show cause within such time as may be specified in the notice as to why an order of demolition of the building should not be made. [(2) If any of the person upon whom a notice has been served under sub-section (1) appears in](http://indiankanoon.org/doc/1059303/) pursuance thereof before the Chairperson and gives an undertaking to him that such person shall, within a period specified by the Chairperson, execute such works of improvement in relation to the building as will, in the opinion of the Chairperson, render the building fit for human habitation or an undertaking that the building shall not be used for human habitation until the Chairperson on being satisfied that it has been rendered fit for that purpose, cancels the undertaking, the Chairperson shall not make an order of demolition of the building. [(3) If no such undertaking as is mentioned in sub-section (2) is given or if in a case where any such](http://indiankanoon.org/doc/1150085/) undertaking has been given, any work of improvement to which the undertaking relates is not carried out within the specified period, or the building is at any time used in contravention of the terms of the undertaking, the Chairperson shall, forthwith make an order of demolition of the building requiring that the building shall be vacated within a period to be specified in the order not being less than thirty days from the date of the order, and that it shall be demolished within six weeks after the expiration of that period. [(4) Where an order of demolition of building under this section has been made, the owner of the](http://indiankanoon.org/doc/681472/) building or any other person having an interest therein, shall demolish that building within the time specified in that behalf by the order, and if the building is not demolished within that time, the Chairperson shall demolish or cause to be demolished the building and sell the materials thereof. [(5) Any expenses incurred by the Chairperson under sub-section (4) if not satisfied out of the](http://indiankanoon.org/doc/131325/) proceeds of the sale of materials of the building shall be recovered from the owner of the building or any other person having an interest therein as an arrear of tax under this Act. [(6) In determining for the purposes of section 277 and this section whether a building is unfit for](http://indiankanoon.org/doc/1097337/) human habitation, regard shall be had to its condition in respect of the following matters, that is to say,— [(a) repair;](http://indiankanoon.org/doc/1510491/) [(b) stability;](http://indiankanoon.org/doc/1268880/) [(c) freedom from damp;](http://indiankanoon.org/doc/1200229/) [(d) natural light and air;](http://indiankanoon.org/doc/860582/) [(e) water supply;](http://indiankanoon.org/doc/1397364/) [(f) drainage and sanitary conveniences;](http://indiankanoon.org/doc/1876762/) [(g) facilities for storage, preparation and cooking of food and for the disposal of rubbish, filth and](http://indiankanoon.org/doc/686312/) other polluted matter, and the building shall be deemed to be unfit as aforesaid if it is so far defective, in one or more of the said matters that it is not reasonably suitable for occupation in that condition. [(7) For the purpose of section 277, section 278 and this section, “work of improvement” in relation to](http://indiankanoon.org/doc/1523632/) a building includes any one or more of the following works, namely:— [(a) necessary repairs;](http://indiankanoon.org/doc/1882258/) [(b) structural alterations;](http://indiankanoon.org/doc/421586/) ----- [(c) provision of light points and water taps;](http://indiankanoon.org/doc/94429/) [(d) construction of drains, open or covered;](http://indiankanoon.org/doc/1770561/) [(e) provision of latrines and urinals;](http://indiankanoon.org/doc/1237501/) [(f) provision of additional or improved fixtures and fittings;](http://indiankanoon.org/doc/1997803/) [(g) opening up or paving of courtyard;](http://indiankanoon.org/doc/1327749/) [(h) removal of rubbish, filth and other polluted and obnoxious matter;](http://indiankanoon.org/doc/1474413/) [(i) any other work including the demolition of any building or any part thereof which, in the](http://indiankanoon.org/doc/1245331/) opinion of the Chairperson, is necessary for executing any of the works specified above. [(8) The provisions of section 276, section 277, section 278 and this section shall not apply in relation](http://indiankanoon.org/doc/1469823/) to any building in any area which has been declared to be a slum area under the Slum Areas (Improvement and Clearance) Act, 1956 (96 of 1956). **[280. Insanitary huts and sheds.—Where the Chairperson upon any information in his possession is](http://indiankanoon.org/doc/256872/)** satisfied that any hut or shed used as a dwelling house or as a stable or for any other purpose, is likely, by reason of its being constructed without a plinth or upon a plinth of insufficient height or without proper means of drainage or on account of the impracticability of scavenging and cleansing it or owing to the manner in which it and other huts or sheds are crowded together, to cause risk of disease to the inmates thereof or to the inhabitants of the neighbourhood, or is for any reason likely to endanger public health or safety, he may by notice in writing require the owner or occupier of the hut or shed or the owner or occupier of the land on which the hut or shed stands to remove or alter the hut or shed or carry out such improvement thereof as the Chairperson may deem necessary within such time as may be specified in the notice. _Regulation of washing by washermen_ **[281. Prohibition against washing by washerman.—(1) The Chairperson may by public notice](http://indiankanoon.org/doc/223336/)** prohibit the washing of clothes by washermen in the exercise of their callings except at such places as he may appoint for the purpose. [(2) When any such prohibition has been made, no person who is by calling a washerman shall in](http://indiankanoon.org/doc/1747010/) contravention of such prohibition wash clothes except for himself or for personal and family service or for hire on or within the premises of the hirer, at any place other than a place appointed under sub-section (1). _Prevention of Dangerous Diseases_ **[282. Obligation to give information of dangerous disease.—Any person being in charge of, or in](http://indiankanoon.org/doc/461231/)** attendance, whether as a medical practitioner or otherwise, upon any person whom he knows or has reason to believe to be suffering from a dangerous disease, or being the owner, lessee, or occupier of any building in which he knows that any such person is so suffering shall forthwith give information respecting the existence of such disease to the officer specified by the Chairperson for the said purpose. **[283. Removal to hospital of patients, suffering from dangerous disease.—(1) When any person](http://indiankanoon.org/doc/470800/)** suffering from any dangerous disease is found to be— [(a) without proper lodging or accommodation; or](http://indiankanoon.org/doc/1003558/) [(b) living in a room or house which he neither owns or pays rent for nor occupies as the guest or](http://indiankanoon.org/doc/767490/) relative of any person who owns, or pays rent for it; or [(c) living in a sarai, dharamshala, hotel, boarding house, hostel, guest house, lodging house, club;](http://indiankanoon.org/doc/451756/) or [(d) lodged in premises occupied by members of two or more families,](http://indiankanoon.org/doc/1630671/) the Chairperson or any person authorised by him in this behalf, may on the advice of any medical officer of the rank not inferior to that of a general duty medical officer remove the patient to any hospital or place at which persons suffering from such diseases are received for medical treatment and may do anything necessary for such removal. ----- [(2) The Council shall if required by the Central Government erect an infectious disease hospital of](http://indiankanoon.org/doc/1195427/) such type and dimension as that Government may direct. **[284. Disinfection of buildings and articles.—Where the Chairperson is of opinion that the cleansing](http://indiankanoon.org/doc/289819/)** and disinfection of any building or part of a building or of any articles in such building or part which are likely to retain infection, or the renewal of flooring of any building or part of such building, and the renewal of plastering of the walls thereof, would tend to prevent or check the spread of any dangerous disease; he may, by notice in writing, require the owner or occupier to cleanse and disinfect the said building, part or articles, as the case may be, or to renew the said flooring and if necessary, the said plastering also within such time as may be specified in the notice: Provided that where in the opinion of the Chairperson the owner or occupier is from poverty or any other cause unable effectually to carry out any such requisition, the Chairperson may at the expense of the New Delhi Municipal Fund cleanse and disinfect the building, part or articles, or, as the case may be, renew the flooring and if necessary, the plastering also. **[285. Destruction of infectious huts or sheds.—(1) Where the destruction of any hut or shed is in the](http://indiankanoon.org/doc/1141629/)** opinion of the Chairperson necessary to prevent the spread of any dangerous disease, the Chairperson may by notice in writing require the owner to destroy the hut or shed and the materials thereof within such time as may be specified in the notice. [(2) Where the Chairperson is satisfied that the destruction of any hut or shed is immediately necessary](http://indiankanoon.org/doc/1807723/) for the purpose of preventing the spread of any dangerous disease, he may order the owner or occupier of the hut or shed to destroy the same forthwith or may himself cause it to be destroyed after giving not less than six hours‟ notice to the owner or occupier. [(3) Compensation may be paid by the Chairperson, in any case which he thinks fit, to any person who](http://indiankanoon.org/doc/1217986/) sustains substantial loss by the destruction of any such hut or shed, but, except as so allowed by the Chairperson, no claim for compensation shall lie for any loss or damage caused by any exercise of the power conferred by this section. **[286. Means of disinfection.—(1) The Chairperson shall—](http://indiankanoon.org/doc/1525901/)** [(a) provide proper places with necessary attendants and apparatus for the disinfection of](http://indiankanoon.org/doc/1010055/) conveyances, clothing, bedding and other articles which have been exposed to infection; [(b) cause conveyances, clothing and other articles brought for disinfection to be disinfected either](http://indiankanoon.org/doc/1556489/) free of charge or on payment of such charges as he may fix. [(2) The Chairperson may notify places at which articles of clothing, bedding and the conveyances or](http://indiankanoon.org/doc/825522/) other articles which have been exposed to infection shall be washed and if he does so, no person shall wash any such thing at any place not so notified without having previously disinfected such thing. [(3) The Chairperson may direct the destruction of any clothing, bedding or other article likely to](http://indiankanoon.org/doc/1050130/) retain infection and may give such compensation as he thinks fit for any article so destroyed. **[287. Special measures in case of out-break of dangerous or epidemic diseases.—(1) In the event](http://indiankanoon.org/doc/1828574/)** of New Delhi or any part thereof being visited or threatened by an outbreak of any dangerous disease among the inhabitants thereof or any epidemic disease among any animals therein, the Chairperson, if he thinks that the other provisions of this Act and the provisions of any other law for the time being in force are insufficient for the purpose, may, with the previous sanction of the Council— [(a) take such special measures; and](http://indiankanoon.org/doc/384479/) [(b) by public notice, give such directions to be observed by the public or by any class or section](http://indiankanoon.org/doc/601490/) of the public, as he thinks necessary to prevent the outbreak or spread of the disease: Provided that where in the opinion of the Chairperson immediate measures are necessary, he may take action, without such sanction as aforesaid and if he does so, shall forthwith report such action to the Council. [(2) No person shall commit a breach of any direction given under sub-section (1) and if he does so he](http://indiankanoon.org/doc/400674/) shall be deemed to have committed an offence under section 188 of the Indian Penal Code (45 of 1860). ----- **[288. Infected clothes not to be sent to washerman or to laundry.—(1) A person shall not send or](http://indiankanoon.org/doc/1686851/)** take to any washerman or to any laundry or place set apart for the exercise by washerman of their calling, for the purpose of being washed or to any place for the purpose of being cleansed, any cloth or other article which he knows to have been exposed to infection from a dangerous disease unless that cloth or article has been disinfected by or to the satisfaction of the officer authorised in this behalf. [(2) The occupier of any building in which a person is suffering from a dangerous disease shall, if](http://indiankanoon.org/doc/415291/) required by the officer authorised by the Chairperson, furnish to him the address of any washerman to whom or any laundry or other place to which clothes and other articles from the building have been, or will be, sent during the continuance of the disease, for the purpose of being washed or cleaned. **[289. Contamination and disinfection of public conveyance.—(1) Whoever—](http://indiankanoon.org/doc/1925035/)** [(a) uses a public conveyance while suffering from a dangerous disease; or](http://indiankanoon.org/doc/299851/) [(b) uses a public conveyance for the carriage of a person who is suffering from any dangerous](http://indiankanoon.org/doc/908167/) disease; or [(c) uses a public conveyance for the carriage of the corpse of a person who has died from any](http://indiankanoon.org/doc/1324247/) such disease, shall be bound to take proper precautions against the communication of the disease to other persons using or who may thereafter use the conveyance and to notify such use to the owner, driver, or person in charge of the conveyance, and further report without delay to the Chairperson the number of the conveyance and the name of the person so notified. [(2) Where any person suffering from, or the corpse of any person who has died from, a dangerous](http://indiankanoon.org/doc/1037309/) disease has been carried in public conveyance which ordinarily plies in New Delhi or any part thereof, the driver thereof shall forthwith report the fact to the Chairperson who shall forthwith cause the conveyance to be disinfected if that has not already been done. [(3) No such conveyance shall be again brought into use until the officer authorised by the](http://indiankanoon.org/doc/1891712/) Chairperson has granted a certificate stating that it can be used without causing risk of infection. [(4) Whoever fails to make to the Chairperson any report which he is required to make under this](http://indiankanoon.org/doc/1634272/) section shall be guilty of an offence. **[290. Driver of conveyance not bound to carry persons suffering from dangerous disease.—](http://indiankanoon.org/doc/86409/)** Notwithstanding anything contained in any law for the time being in force no owner, driver or person in charge of a public conveyance shall be bound to convey or to allow to be conveyed in such conveyance in or in the vicinity of New Delhi any person suffering from a dangerous disease or the corpse of any person who has died from such disease unless and until such person pays or tenders a sum sufficient to cover any loss and expense which would ordinarily be incurred in disinfecting the conveyance. **[291. Disinfection of buildings before letting the same.—(1) Where any building or part of a](http://indiankanoon.org/doc/1909374/)** building is intended to be let in which any person has, within six weeks immediately preceding, been suffering from a dangerous disease, the person letting the building or part shall, before doing so, disinfect the same in such manner as the Chairperson may by general or special notice direct together with all articles therein liable to retain infection. [(2) For the purposes of this section the keeper of a hostel, lodging house, dharamshala, sarai, boarding](http://indiankanoon.org/doc/379316/) house, guest house, hotel or club shall be deemed to have let to any person who is admitted as a guest therein that part of the building in which such person is permitted to reside. **[292. Disposal of infected articles without disinfection.—No person shall, without previous](http://indiankanoon.org/doc/884918/)** disinfection of the same, give, lend, sell, transmit or otherwise dispose of to another person any article or thing which he knows or has reason to believe has been exposed to contamination by any dangerous disease and is likely to be used in or taken into New Delhi or any part thereof. **[293. Prohibition of making or selling of food, etc., or washing of clothes by infected persons.—](http://indiankanoon.org/doc/1238586/)** No person while suffering from, or in circumstances in which he is likely to spread, any dangerous disease, shall— [(a) make, carry or offer for sale or take any part in the business of making, carrying or offering](http://indiankanoon.org/doc/402843/) for sale, any article of food or drink or any medicine or drug for human consumption, or any article of clothing or bedding for personal use or wear; or ----- [(b) take any part in the business of the washing or carrying of clothes.](http://indiankanoon.org/doc/78719/) **[294. Power to restrict or prohibit sale of food or drink.—When New Delhi or any part thereof is](http://indiankanoon.org/doc/1864122/)** visited or threatened by an outbreak of any dangerous disease the Chairperson may, by public notice, restrict in such manner or prohibit for such period as may be specified in the notice, the sale or preparation of any article of food or drink for human consumption specified in the notice or the sale of any flesh of any description of animal so specified. **[295. Control over wells and tanks, etc.—(1) If the Chairperson is of opinion that the water in any](http://indiankanoon.org/doc/1262751/)** well, tank or other place, is likely, if used for drinking, to endanger, or cause the spread of, any disease, he may— [(a) by public notice, prohibit the removal or use of such water for drinking; or](http://indiankanoon.org/doc/772945/) [(b) by notice in writing require the owner or person having control of such well, tank or place to](http://indiankanoon.org/doc/1004605/) take such steps as may be directed by the notice to prevent the public from having access to or using such water; or [(c) take such other steps as he may consider expedient to prevent the outbreak or spread of any](http://indiankanoon.org/doc/1497688/) such disease. [(2) In the event of New Delhi or any part thereof being visited or threatened by an outbreak or a](http://indiankanoon.org/doc/951416/) dangerous disease the officer authorised by the Chairperson in this behalf may, without notice and at any time, inspect and disinfect any well, tank or other place from which water is, or is likely to be, taken for the purposes of drinking and may further take such steps as he may think fit to ensure the purity of the water or to prevent the use of the same for drinking purposes. **[296. Duty of persons suffering from dangerous disease.—No person shall—](http://indiankanoon.org/doc/501199/)** [(a) knowing that he is suffering from a dangerous disease expose other persons to the risk of](http://indiankanoon.org/doc/660141/) infection by his presence or conduct in any public street or public place; [(b) having the care of a person whom he knows to be suffering from a dangerous disease, cause](http://indiankanoon.org/doc/1406434/) or permit that person to expose other persons to the risk of infection by his presence or conduct in any such street or place as aforesaid; [(c) place or cause to be placed in a dustbin or other receptacle for the deposit of rubbish, any](http://indiankanoon.org/doc/660681/) matter which he knows to have been exposed to infection from a dangerous disease and which has not been disinfected properly; [(d) throw or cause to be thrown into any latrine or urinal any matter which he knows to have been](http://indiankanoon.org/doc/668162/) exposed to infection from a dangerous disease and which has not been disinfected properly. **[297. Disposal of infectious corpses where any person has died from any dangerous disease.—](http://indiankanoon.org/doc/1572385/)** Where any person has died from any dangerous disease the Chairperson may, by notice in writing,— [(a) require any person having charge of the corpse to convey the same to mortuary thereafter to](http://indiankanoon.org/doc/1797234/) be disposed of in accordance with law, or [(b) prohibit the removal of corpses from the place where death occurred except for the purpose of](http://indiankanoon.org/doc/1580558/) being burnt, buried or for being conveyed to a mortuary. _Special conditions regarding essential services_ **[298. Conditions of service of sweepers and certain other class of persons employed in municipal](http://indiankanoon.org/doc/268354/)** **[service.—(1) No person being a sweeper employed by the Council shall in the absence of any contract](http://indiankanoon.org/doc/1055838/)** authorising him so to do and without reasonable cause, resign his employment or absent himself from his duty without having given one month‟s notice to the Chairperson or shall neglect or without reasonable cause refuse to perform his duties. [(2) The Council may by resolution direct that on or from such date as may be specified in the](http://indiankanoon.org/doc/1603827/) resolution, the provisions of this section shall apply in the case of any specified class of persons employed by the Council whose functions are intimately concerned with public health or safety. ----- **[299. Conditions of service of sweepers employed for doing house scavenging.—No sweeper,](http://indiankanoon.org/doc/1427415/)** being employed for doing house scavenging of any building shall discontinue to do such house scavenging without reasonable cause or without having fourteen days‟ notice to his employer. _Burning and burial grounds_ **[300. Power to call for information regarding burning and burial grounds.—The Chairperson](http://indiankanoon.org/doc/1720767/)** may, by notice in writing, require the owner or person in charge of any burning or burial ground to supply such information as may be specified in the notice concerning the condition, management or position of such ground. **[301. Permission for use of new burning or burial ground.—(1) No place which has not been used](http://indiankanoon.org/doc/841919/)** as a burning or burial ground before the commencement of this Act shall be so used without the permission in writing of the Chairperson. [(2) Such permission may be granted subject to any conditions which the Chairperson may think fit to](http://indiankanoon.org/doc/987406/) impose for the purpose of preventing any annoyance to, or danger to the health of, any person residing in the neighbourhood. **[302. Power to require closing of burning and burial grounds.—(1) Where the Chairperson, after](http://indiankanoon.org/doc/18791/)** making or causing to be made local inquiry is of opinion that any burning or burial ground has become offensive to, or dangerous to the health of, persons residing in the neighbourhood, he may, with the previous sanction of the Council, by notice in writing, require the owner or person in charge of such ground to close the same from such date as may be specified in the notice. [(2) No corpse shall be burnt or buried at the burning or burial ground in respect of which a notice has](http://indiankanoon.org/doc/1211978/) been issued under this section. **[303. Removal of corpses.—The Chairperson may by public notice prescribe routes by which alone](http://indiankanoon.org/doc/1161618/)** corpses may be removed to burning or burial ground. _Disposal of dead animals_ **[304. Disposal of dead animals.—Whenever any animal in the charge of any person dies, the person](http://indiankanoon.org/doc/271975/)** in charge thereof shall within twenty-four hours either— [(a) convey the carcass to a place provided or appointed under section 263 for the final disposal of](http://indiankanoon.org/doc/791502/) the carcasses of dead animals, or [(b) give notice of the death to the Chairperson whereupon he shall cause the carcass to be](http://indiankanoon.org/doc/852732/) disposed of on such fee as may be prescribed by the Council. CHAPTER XVI VITAL STATISTICS **[305. Appointment of Chief Registrar, etc.—(1) Notwithstanding anything contained in the](http://indiankanoon.org/doc/642505/)** Registration of Births and Deaths Act, 1969 (18 of 1969), but subject to the provisions to this Act and to any directions that the Central Government may give in this behalf, the officer specified in the Official Gazette by the Chairperson, shall be the Chief Registrar of Births and Deaths for New Delhi and shall keep in such form as may be prescribed by bye-laws a register of all births and deaths occurring in New Delhi. [(2) The Chairperson shall for the purposes of this Chapter appoint an additional chief registrar and](http://indiankanoon.org/doc/191118/) such number of persons to be registrars of births and deaths for New Delhi as he deems necessary and define the respective areas which shall be under the charge of such registrars. **[306. Duties of registrar.—The registrar shall keep himself informed of every birth or death](http://indiankanoon.org/doc/1771029/)** occurring within the area under his charge and shall ascertain and register as soon as conveniently may be after the event, and without fee or reward such particulars in respect of every birth or death as may be prescribed by bye-laws made in this behalf. ----- **[307. Information of births and deaths.—(1) It shall be the duty of the father or mother of every](http://indiankanoon.org/doc/490843/)** child born in New Delhi and in default of the father or mother, of any relation of the child living in the same premises, and in default of such relation, of the person having charge of the child, to give to the best of his knowledge and belief to the registrar of the area concerned within eight days after such birth, information containing such particulars as may be prescribed by bye-laws made in this behalf. [(2) It shall be the duty of the nearest relation present at the time of the death or in attendance during](http://indiankanoon.org/doc/1724102/) the last illness of any person dying in New Delhi and in default of such relation, of any person present or in attendance at the time of the death and of the occupier of the premises in which to his knowledge the death took place and in default of the person hereinbefore mentioned, of each inmate of such premises and of the undertaker or other person causing the corpse of the deceased person to be disposed of, to give to the best of his knowledge and belief to the registrar of the area within which the death place information containing such particulars as may be prescribed by bye-laws made in this behalf. [(3) If a birth or death occurs in the hospital, none of the persons mentioned in sub-section (1) or, as](http://indiankanoon.org/doc/274253/) the case may be, in sub-section (2) shall be bound to give information required by that sub-section, but it shall be the duty of the medical officer in charge of the hospital within twenty-four hours after the birth or death, to send to the officer authorised by the Chairperson, a notice containing such particulars as may be prescribed by bye-laws made in this behalf. CHAPTER XVII PUBLIC SAFETY AND SUPPRESSION OF NUISANCES _Nuisances_ **[308. Prohibition of nuisances.—(1) No person shall—](http://indiankanoon.org/doc/708097/)** [(a) in any public street or public place—](http://indiankanoon.org/doc/1613744/) [(i) ease himself; or](http://indiankanoon.org/doc/1524284/) [(ii) carry meat exposed to public view; or](http://indiankanoon.org/doc/494179/) [(iii) picket animals or collect carts; or](http://indiankanoon.org/doc/1051437/) [(iv) being engaged in the removal of rubbish, filth or other polluted and obnoxious matter](http://indiankanoon.org/doc/1250325/) wilfully or negligently permit any portion thereof to spill or fall, or neglect to sweep away or otherwise effectually to remove any portion thereof which may spill or fall in such street or place; or [(v) without proper authority affix, upon any building, monument, post, wall, fence, tree or](http://indiankanoon.org/doc/1537609/) other thing, any bill, notice or other document; or [(vi) without proper authority deface or write upon or otherwise mark any building,](http://indiankanoon.org/doc/295391/) monument, post, wall, fence, tree or other thing; or [(vii) without proper authority remove, destroy, deface or otherwise obliterate any notice or](http://indiankanoon.org/doc/163632/) other document put up or exhibited under this Act or the rules or bye-laws made thereunder; or [(viii) without proper authority displace, damage, make any alteration in, or otherwise interfere](http://indiankanoon.org/doc/168392/) with, the pavement, gutter, storm, water-drain, flags or other materials of any such street, or any lamp bracket, direction-post, hydrant or water-pipe maintained by the Council in any such street or place or extinguish a public light; or [(ix) carry rubbish, filth or other polluted and obnoxious matter at any hour prohibited by the](http://indiankanoon.org/doc/1124114/) Chairperson by public notice, or in any pattern of cart or receptacle which has not been approved for the purpose by the Chairperson, or fail to close such cart or receptacle when in use; or [(b) carry rubbish, filth or other polluted and obnoxious matter along any route in contravention of](http://indiankanoon.org/doc/204696/) any prohibition made in this behalf by the Chairperson by public notice; or ----- [(c) deposit or cause or permit to be deposited, earth or materials of any description or any rubbish](http://indiankanoon.org/doc/1995412/) or polluted and obnoxious matter in any place not intended for the purpose in any public street or public place or waste or unoccupied land under the control and management of the Council; or [(d) make any grave or burn or bury any corpse at any place not set apart for such purpose; or](http://indiankanoon.org/doc/541682/) [(e) at any time or place at which the same has been prohibited by the Chairperson by public or](http://indiankanoon.org/doc/1762924/) special notice, beat a drum or tom-tom, or blow a horn or trumpet, or beat any utensil, or sound any brass or other instrument, or play any music; or [(f) disturb the public peace or order by singing, screaming or shouting, or by using any apparatus](http://indiankanoon.org/doc/1513342/) for amplifying or reproducing the human voice, such as a megaphone or a loudspeaker; or [(g) let loose any animal so as to cause, or negligently allow any animal to cause injury, danger,](http://indiankanoon.org/doc/727933/) alarm or annoyance to any person; or [(h) save with the written permission of the Chairperson and in such manner as he may authorise,](http://indiankanoon.org/doc/237889/) store or use night-soil, cowdung, manure, rubbish or any other substance emitting an offensive smell; or [(i) use or permit to be used as a latrine or urinal any place not intended for that purpose.](http://indiankanoon.org/doc/1019808/) [(2) Every person shall take all reasonable means to prevent every child under the age of twelve years](http://indiankanoon.org/doc/4673/) being in his charge from easing himself in any public street or public place. [(3) The owner or keeper of any animal shall not allow it straying in a public street or public place](http://indiankanoon.org/doc/922282/) without a keeper. [(4) Any animal found straying as aforesaid may be removed by an officer or employee of the Council](http://indiankanoon.org/doc/1040327/) or by any police officer to a pound. [(5) Swine found straying in a public street or public place shall be liable to be destroyed by any](http://indiankanoon.org/doc/1444955/) officer or other employee of the Council appointed in this behalf. **[309. Power of Chairperson to require removal or abatement of nuisance.—Where the](http://indiankanoon.org/doc/1232862/)** Chairperson is of opinion that there is a nuisance on any land or building, he may, by notice in writing, require the person by whose act, default or sufferance the nuisance arises or continues or the power, lessee or occupier of the land or building, or any or more or these persons, to remove or abate the nuisance by taking such measures in such manner and within such period as may be specified in the notice. _Dogs_ **[310. Registration and control of dogs.—(1) The Council may, by bye-laws made in this behalf,—](http://indiankanoon.org/doc/155103/)** [(a) require the registration, by the registration authority appointed by the Chairperson in this](http://indiankanoon.org/doc/757159/) behalf of all dogs kept within New Delhi; [(b) require that every registered dog shall wear a collar to which shall be attached a metal token to](http://indiankanoon.org/doc/1154105/) be issued by the registration authority, and fix and fee payable for the issue thereof; [(c) require that any dog which has not been registered or which is not wearing such token shall, if](http://indiankanoon.org/doc/1564551/) found in any public place, be detained at a place set apart for the purpose; and [(d) fix the fee which shall be charged for such detention and provide that any such dog shall be](http://indiankanoon.org/doc/1140455/) liable to be destroyed or otherwise disposed of unless it is claimed and the fee in respect thereof is paid within one week. [(2) The Chairperson may—](http://indiankanoon.org/doc/1692964/) [(a) cause to be destroyed, or to be confined for such period as he may direct, any dog or other](http://indiankanoon.org/doc/1117958/) animal which is, or is reasonably suspected to be, suffering from rabies, or which has been bitten by any dog or other animal suffering or suspected to be suffering from rabies; [(b) by public notice direct that, after such date as may be specified in the notice, dogs which are](http://indiankanoon.org/doc/1882833/) without collars or without marks distinguishing them as private property and are found straying on the ----- streets or beyond the enclosures of the houses of their owners, if any, may be destroyed and cause them to be destroyed accordingly. [(3) No damages shall be payable in respect of any dog or other animal destroyed or otherwise](http://indiankanoon.org/doc/594348/) disposed of under this section. [(4) No one, being the owner or person in charge of any dog, shall allow it to be at large in any public](http://indiankanoon.org/doc/1855154/) street or public place without being muzzled and without being secured by a chain lead in any case in which— [(a) he knows that the dog is likely to annoy or intimidate any person, or](http://indiankanoon.org/doc/1519092/) [(b) the Chairperson has, by public notice during the prevalence of rabies, directed that dogs shall](http://indiankanoon.org/doc/803810/) not be at large without muzzles and chain leads. [(5) No one shall—](http://indiankanoon.org/doc/1248841/) [(a) allow any ferocious dog which belongs to him or is in his charge to be at large without being](http://indiankanoon.org/doc/1497994/) muzzled; or [(b) set on or urge any dog or other animal to attack, worry or intimidate any person; or](http://indiankanoon.org/doc/1259030/) [(c) knowing or having reason to believe that any dog or animal belonging to him or in his charge](http://indiankanoon.org/doc/1942999/) has been bitten by an animal suffering or reasonably suspected to be suffering from rabies, fail or neglect to give immediate information of the fact to the Chairperson or give information which is false. _Prevention of fire, etc._ **[311. Stacking or collecting inflammable materials.—The Chairperson may, by public notice,](http://indiankanoon.org/doc/1723432/)** prohibit in any case where such prohibition appears to him to be necessary for the prevention of danger to life or property, the stacking or collecting of wood, dry grass, straw or other inflammable materials, or the placing of mats or thatched huts or the lighting of fires in any place which may be specified in the notice. **[312. Care of naked lights.—No person shall set a naked light on or near any building in any public](http://indiankanoon.org/doc/892598/)** street or other public place in such manner as to cause danger of fire: Provided that nothing in this section shall be deemed to prohibit the use of lights for the purposes of illumination on the occasion of a festival or public or private entertainment. **[313. Discharging fireworks, fire-arms, etc.—No one shall discharge any fire-arm or let off](http://indiankanoon.org/doc/418902/)** fire-works or fire-baloons, or engage in any game in such manner as to cause or to be likely to cause danger to persons passing by or dwelling or working in the neighbourhood or risk of injury to property. **[314. Power to require buildings, wells, etc., to be rendered safe.—Where any building, or wall, or](http://indiankanoon.org/doc/629406/)** anything affixed thereto, or any well, tank, reservoir, pool, depression, or excavation, or any bank or tree, is in the opinion of the Chairperson, in a ruinous state, for want of sufficient repairs, protection or enclosure, a nuisance or dangerous to persons passing by or dwelling or working in the neighbourhood, the Chairperson may by notice in writing require the owner or part-owner or person claiming to be the owner or part-owner thereof or failing any of them the occupier thereof to remove the same or may require him to repair, protect or enclose the same in such manner as he thinks necessary; and if the danger is, in the opinion of the Chairperson, imminent, he shall forthwith take such steps as he thinks necessary to avert the same. **[315. Enclosure of waste land used for improper purpose.—The Chairperson may, by notice in](http://indiankanoon.org/doc/960002/)** writing, require the owner or part-owner, or person claiming to be the owner or part-owner of any land or building, or the lessee, or the person claiming to be the lessee of any such land which, by reason of disuse or disputed ownership or other cause, has remained unoccupied and has become the resort of idle and disorderly persons or of persons who have no ostensible means of subsistence or cannot give a satisfactory account of themselves or is used for gaming or immoral purposes or otherwise occasions or is likely to occasion a nuisance, to secure and enclose the same within such time as may be specified in the notice. ----- CHAPTER XVIII MARKETS, TRADES AND OCCUPATIONS _Maintenance and regulations of markets_ **[316. Provision of municipal market.—(1) The Chairperson, when authorised by the Council in this](http://indiankanoon.org/doc/1884142/)** behalf, may provide and maintain municipal markets and slaughter houses in such number as he thinks fit together with stalls, shops, sheds, pens, and other buildings and conveniences for the use of persons carrying on trade or business in, or frequenting such markets or slaughter house, and may provide and maintain in any such markets buildings and places, machines, weights, scales and measures for the weighment or measurement of goods sold therein. [(2) Municipal markets and slaughter houses shall be under the control of the Chairperson who may, at](http://indiankanoon.org/doc/586676/) any time, by public notice, close any municipal market, slaughter house or any part thereof. **[317. Use of municipal markets and slaughter house.—(1) No person shall, without the general or](http://indiankanoon.org/doc/1533772/)** special permission in writing of the Chairperson, sell or expose for sale any animal or article in any municipal market. [(2) Any person contravening the provisions of sub-section (1), and any animal or article exposed for](http://indiankanoon.org/doc/122396/) sale by such person, may be summarily removed from the market by or under the orders of the Chairperson or any officer or employee of the Council authorised by the Chairperson in this behalf. **[318. Private markets.—(1) No place other than a municipal market shall be used as a market unless](http://indiankanoon.org/doc/1513533/)** such place has been licensed as a market by the Council. [(2) No place other than a municipal slaughter house shall be used as a slaughter house:](http://indiankanoon.org/doc/355383/) Provided that nothing in this sub-section shall be deemed— [(i) to restrict the slaughter of any animal in any place on the occasion of any religious festival or](http://indiankanoon.org/doc/1993859/) ceremony, subject to such conditions (non-compliance with which shall be punishable under this Act) as the Chairperson may, by public or special notice, impose in this behalf, or [(ii) to prevent the Chairperson, with the sanction of the Council, from setting apart place for the](http://indiankanoon.org/doc/612527/) slaughter of animal in accordance with religious custom. **[319. Conditions of grant of licence for private market.—(1) The Chairperson may charge such](http://indiankanoon.org/doc/413325/)** fees as the Council may prescribe in this behalf for the grant of a licence to any person to open a private market and may grant such licence subject to such conditions, consistent with this Act and any bye-laws made thereunder. [(2) When the Council refuses to grant any licence, it shall record a brief statement of the reasons for](http://indiankanoon.org/doc/1556407/) such refusal. [(3) The Chairperson may, for reasons to be recorded, suspend a licence in respect of a private market](http://indiankanoon.org/doc/837479/) for such period as he thinks fit, or cancel his licence. [(4) A private market of which the licence has been suspended or cancelled as aforesaid shall be closed](http://indiankanoon.org/doc/431425/) with effect from such date as may be specified in the order of suspension or cancellation. **[320. Prohibition of keeping market open without licence, etc.—(1) No person shall keep open for](http://indiankanoon.org/doc/31219/)** public use any market in respect of which a licence is required by or under this Act without obtaining a licence therefor, or while the licence therefor is suspended or after the same has been cancelled. [(2) When a licence to open a private market is granted or refused or is suspended or cancelled the](http://indiankanoon.org/doc/766662/) Chairperson shall cause a notice of the grant, refusal, suspension or cancellation to be posted in such language or languages as he thinks necessary in some conspicuous place by or near the entrance to the place to which the notice relates. **[321. Prohibition of use of unlicensed markets.—No person knowing that market has been opened](http://indiankanoon.org/doc/554116/)** to the public without a licence having been obtained therefor when such licence is required by or under this Act or that the licence granted therefor is for the time being suspended or that it has been cancelled, shall sell or expose for sale any animal or article in such market. ----- **[322. Prohibition of business and trade near a market.—(1) No animal or article shall be sold or](http://indiankanoon.org/doc/177613/)** exposed for sale within a distance of one hundred metres of any municipal market or licensed private market without the permission of the Chairperson. [(2) Any person contravening the provisions of sub-section (1) and any animal or article exposed for](http://indiankanoon.org/doc/898553/) sale by such person may be summarily removed by or under the orders of the Chairperson or any officer or employee of the Council appointed by him in this behalf. **[323. Levy of stallages, rents and fees.—(1) The Chairperson, with the previous approval of the](http://indiankanoon.org/doc/1043263/)** Council may— [(a) charge such stallages, rents and fees as may from time to time be fixed by him in this behalf—](http://indiankanoon.org/doc/362221/) [(i) for the occupation or use of any stall, shop, stand, shed or pen in a municipal market or](http://indiankanoon.org/doc/1974813/) municipal slaughter house; [(ii) for the right to expose articles for sale in a municipal market;](http://indiankanoon.org/doc/1756127/) [(iii) for the use of machines, weights, scales and measures provided for in any municipal](http://indiankanoon.org/doc/1839083/) market; and [(iv) for the right to slaughter animals in any municipal slaughter house, and for the feed of](http://indiankanoon.org/doc/1713756/) such animals before they are ready for slaughter; or [(b) farm the stallages, rents and fees chargeable as aforesaid or any portion thereof for such](http://indiankanoon.org/doc/890557/) period as he thinks fit; or [(c) put up to public auction or dispose by the private sale the privilege of occupying or using any](http://indiankanoon.org/doc/740074/) stall, shop, shed or pen in a municipal market or municipal slaughter house for such period and on such conditions as he may think fit. [(2) A copy of the table of stallages and fees, if any, chargeable in any municipal market in New Delhi](http://indiankanoon.org/doc/596765/) and of the bye-laws made under this Act for the purpose of regulating the use of such market printed in such language or languages as the Chairperson may direct, shall be affixed in some conspicuous place in the market. **[324. Power to expel disturbers, etc., from markets.—The Chairperson may prevent the entry in any](http://indiankanoon.org/doc/347301/)** market and shall expel therefrom, any person suffering from any dangerous disease, who sells or exposes for sale therein any article or who, not having purchased the same handles any article exposed for sale therein; and he may expel therefrom any person who is creating a disturbance therein. **[325. Butcher’s fish-monger’s and poulter’s licence.—(1) No person shall without or otherwise than](http://indiankanoon.org/doc/141393/)** in conformity with a licence from the Chairperson carry on the trade of a butcher, fish-monger, poulterer or importer of flesh intended for human consumption or use any place for the sale of flesh, fish or poultry intended for human consumption: Provided that no licence shall be required for any place used for the sale or storage for sale of preserved flesh or fish contained in air-tight or hermetically sealed receptacles. [(2) The Chairperson may order and subject to such conditions as to supervision and inspection as he](http://indiankanoon.org/doc/442768/) thinks fit to impose grant a licence or may by order refuse for reasons to be recorded, to grant the same. [(3) Every such licence shall expire at the end of the year for which it is granted or at such earlier date](http://indiankanoon.org/doc/1293325/) as the Chairperson may, for special reasons, specify in the licence. [(4) If any place is used for the sale of flesh, fish or poultry in contravention of the provisions of this](http://indiankanoon.org/doc/320354/) section, the Chairperson may stop the use thereof by such means as he may consider necessary. [(5) (i) If the Chairperson or any person authorised by him in this behalf has reason to believe that any](http://indiankanoon.org/doc/146578/) animal intended for human consumption is being slaughtered or that the flesh of any such animals is being sold or exposed for sale, in any place or manner not duly authorised under this Act, he may at any time by day or night without notice inspect such place for the purpose of satisfying himself as to whether any provision of this Act or of any bye-law under this Act at the time in force is being contravened thereat and may seize any such animal or the carcass of such animal or such flesh found therein. ----- [(ii) The Chairperson may remove and sell by auction or otherwise dispose of any animal or carcass of](http://indiankanoon.org/doc/152064/) any animal or any flesh seized under clause (i) of this sub-section. [(iii) If within one month of such seizure the owner of the animal, carcass or flesh fails to appear and](http://indiankanoon.org/doc/201567/) prove his claim to the satisfaction of the Chairperson or if the owner is convicted of an offence under this Act in respect of such animal, carcass or flesh, the proceeds of any sale under clause (i) of this sub-section shall vest in the Council. [(iv) Any person slaughtering any animal or selling or exposing for sale the flesh of any such animal in](http://indiankanoon.org/doc/1943512/) any place or manner not duly authorised under the provisions of this Act may be arrested by any police officer without a warrant. [(v) No claim shall lie against any person for compensation for any damage necessarily caused by any](http://indiankanoon.org/doc/1544936/) such entry or by the use of any force necessary for affecting such entry. _Trades and occupations_ **[326. Factory, etc., not to be established without permission of the Chairperson.—(1) No person](http://indiankanoon.org/doc/648582/)** shall, without the previous permission in writing of the Chairperson, establish in any premises, or materially alter, enlarge or extend, any factory, workshop or trade premises in which it is intended to employ steam, electricity, water or other mechanical power. [(2) The Chairperson may refuse to give such permission, if he is of the opinion that the establishment,](http://indiankanoon.org/doc/62174/) alteration, enlargement or extension of such factory, workshop or trade premises, in the proposed position would be objectionable by reason of the density of the population in the neighbourhood thereof, or would be a nuisance to the inhabitants of the neighbourhood. **[327. Premises not to be used for certain purposes without licence.—(1) No person shall use or](http://indiankanoon.org/doc/335912/)** permit to be used any premises for any of the following purposes without or otherwise than in conformity with the terms of a licence granted by the Chairperson in this behalf, namely:— [(a) any of the purposes specified in Part I of the Ninth Schedule;](http://indiankanoon.org/doc/1751491/) [(b) any purpose which is, in the opinion of the Chairperson dangerous to life, health or property](http://indiankanoon.org/doc/1647500/) or likely to create a nuisance; [(c) keeping horses, cattle or other quadruped animals or birds for transportation, sale or hire or for](http://indiankanoon.org/doc/418151/) sale of the produce thereof; or [(d) storing any of the articles specified in Part II of the Ninth Schedule except for domestic use of](http://indiankanoon.org/doc/1247247/) any of those articles: Provided that the Council may declare that premises in which the aggregate quantity of articles stored for sale does not exceed such quantity as may be prescribed by bye-laws in respect of any such articles shall be exempted from the operation of clause (d). [(2) In prescribing the terms of a licence granted under this section for the use of premises as mills or](http://indiankanoon.org/doc/628321/) iron yards or for similar purposes the Chairperson may, when he thinks fit, require the licensee to provide a space or passage within the premises for carts for loading and unloading purposes. [(3) The Council shall fix a scale of fees to be paid in respect of premises licensed under](http://indiankanoon.org/doc/188512/) sub-section (1): Provided that no such fee shall exceed five hundred rupees. **[328. Seizure of certain animals.—(1) If any horses, cattle or other quardruped animals or birds are](http://indiankanoon.org/doc/635223/)** kept on any premises in contravention of the provisions of section 327, or are found abandoned and roaming or tethered on any street or public place or on any land belonging to the Council, the Chairperson or any officer empowered by him may seize them and may cause them to be impounded or removed to such place as may be appointed by the Government or the Council for this purpose and the cost of seizure of these animals or birds and of impounding or removing them and of feeding and watering them shall be recoverable by sale by auction of these animals or birds: Provided that anyone claiming such animal or bird may, within seven days of the seizure get them released on his paying all expenses incurred by the Chairperson in seizing, impounding or removing and ----- in feeding and watering such animal or bird, and on his producing a licence for keeping these animals and birds issued under the provisions of section 327. [(2) Whenever the Chairperson is of opinion that the user or any premises for any of the purposes](http://indiankanoon.org/doc/272139/) referred to in sub-section (1) of section 327 is causing a nuisance and such nuisance should be immediately stopped, the Chairperson may order the owner or the occupier of the premises to stop such nuisance within such time as may be specified in the order and in the event of the failure of the owner or occupier to comply with such order, the Chairperson may himself or by an officer subordinate to him cause such user to be stopped. [(3) Without prejudice to the foregoing provisions of this section any person by whom or at whose](http://indiankanoon.org/doc/836544/) instance any horses, cattle or other quadruped animals or birds are so kept, abandoned or tethered, shall also be punishable under this Act. **[329. Power of Chairperson to prevent use of premises in particular areas for purposes referred](http://indiankanoon.org/doc/1526491/)** **[to in section 327.—(1) The Chairperson may give public notice of his intention to declare that in any area](http://indiankanoon.org/doc/1859762/)** specified in the notice no person shall use any premises for any of the purposes referred to in sub-section (1) of section 327, which may be specified in such notice. [(2) No objections to any such declaration shall be received after a period of one month from the](http://indiankanoon.org/doc/829890/) publication of the notice. [(3) The Chairperson shall consider all objections received within the said period, giving any person](http://indiankanoon.org/doc/1514477/) affected by the notice an opportunity of being heard during such consideration, and may thereupon make a declaration in accordance with the notice published under sub-section (1), with such modifications, if any, as he may think but not so as to extend its application. [(4) Every such declaration shall be published in the Official Gazette and in such other manner as the](http://indiankanoon.org/doc/934224/) Chairperson may determine, and shall take effect from the date of its publication in the Official Gazette. [(5) No person shall, in any area specified in any declaration published under sub-section (4) use any](http://indiankanoon.org/doc/1205541/) premises for any of the purposes referred to in section 327 specified in the declaration and the Chairperson shall have the power to stop the use of any such premises by such means as he considers necessary. **[330. Licences for hawking articles, etc.—No person shall, without or otherwise than in conformity](http://indiankanoon.org/doc/1984538/)** with the terms of a licence granted by the Chairperson in this behalf,— [(a) hawk or expose for sale in any place any article whatsoever whether it be for human](http://indiankanoon.org/doc/1299561/) consumption or not; [(b) use in any place his skill in any handicraft or for rendering services to and for the convenience](http://indiankanoon.org/doc/1704539/) of the public for the purposes of gain or making a living. **[331. Eating houses, etc., not to be used without licence from the Chairperson.—(1) No person](http://indiankanoon.org/doc/6700/)** shall, without or otherwise than in conformity with the terms of a licence granted by the Chairperson in this behalf, keep any eating house, lodging house, hotel, boarding house, tea shop, coffee house, cafe, restaurant, refreshment room or any place where the public are admitted for repose or for the consumption of any food or drink or any place, where food is sold or prepared for sale. [(2) The Chairperson may at any time cancel or suspend any licence granted under sub-section (1) if](http://indiankanoon.org/doc/1217616/) he is of the opinion that the premises covered thereby are not kept in conformity with the conditions of such licence or with the provisions of any bye-law made in this behalf, whether the licensee is prosecuted under this Act or not. **[332. Licensing and control of theatres, circuses and places of public amusement.—No person](http://indiankanoon.org/doc/1773291/)** shall, without or otherwise than in conformity with the terms of a licence granted by the Chairperson in this behalf, keep open any theatre, circus, cinema house, dancing hall or other similar place of public resort, recreation or amusement: Provided that nothing in this section shall apply to private performances in any such place. **[333. Power of Chairperson to stop use of premises used in contravention of licences.—If the](http://indiankanoon.org/doc/836722/)** Chairperson is of opinion that any eating house, lodging house, hotel, boarding house, tea shop, coffee ----- house, cafe, restaurant, refreshment room or other place where the public are admitted for repose or for consumption of any food or drink or where food is sold or prepared for sale or any theatre, circus, cinema house, dancing hall or similar other place of public resort, recreation or amusement is kept open without a licence or otherwise than in conformity with the terms of a licence granted in respect thereof, he may stop the use of any such premises for any such purpose for a specified period by such means as he may consider necessary. CHAPTER XIX IMPROVEMENT **[334. Improvement scheme.—Where the Chairperson upon information in his possession is satisfied](http://indiankanoon.org/doc/139441/)** as respects any area— [(a) that the buildings in that area are by reason of disrepair or sanitary defects unfit for human](http://indiankanoon.org/doc/1635772/) habitation or are by reason of their bad arrangement, or the narrowness or bad arrangement of the streets or the want of light, air, ventilation or proper conveniences, dangerous or injurious to the health of the inhabitants of the area; and [(b) that the most satisfactory method of dealing with the conditions in the area is the](http://indiankanoon.org/doc/577881/) re-arrangement and reconstruction of the streets and buildings in the area in accordance with an improvement scheme, he may frame an improvement scheme in respect of the area in accordance with the bye-laws made in this behalf. **[335. Matters to be provided for in an improvement scheme.—(1) An improvement scheme may](http://indiankanoon.org/doc/616526/)** provide for all or any of the following matters, namely:— [(a) the acquisition by agreement or under the Land Acquisition Act, 1894 (1 of 1894), of any](http://indiankanoon.org/doc/1404044/) property necessary for or affected by the execution of the scheme; [(b) the relaying out of any land comprised in the scheme;](http://indiankanoon.org/doc/1405450/) [(c) the redistribution of sites belonging to owners of property comprised in the scheme;](http://indiankanoon.org/doc/1117959/) [(d) the closure or demolition of buildings or portions of buildings unfit for human habitation;](http://indiankanoon.org/doc/1126278/) [(e) the demolition of obstructive buildings or portions thereof;](http://indiankanoon.org/doc/523605/) [(f) the construction and reconstruction of buildings;](http://indiankanoon.org/doc/23731/) [(g) the construction and alteration of streets;](http://indiankanoon.org/doc/1920991/) [(h) the water supply, street lighting, electric supply, drainage and other conveniences;](http://indiankanoon.org/doc/600279/) [(i) the provision of open spaces for the benefit of any area comprised in the scheme;](http://indiankanoon.org/doc/1713860/) [(j) the sanitary arrangements required for the area comprised in the scheme;](http://indiankanoon.org/doc/1314804/) [(k) the provision of accommodation for any class of the inhabitants;](http://indiankanoon.org/doc/804025/) [(l) the provision of facilities for communication;](http://indiankanoon.org/doc/486472/) [(m) the sale, letting or exchange of any property comprised in the scheme;](http://indiankanoon.org/doc/272118/) [(n) any other matter for which, in the opinion of the Chairperson it is expedient to make provision](http://indiankanoon.org/doc/1160546/) with a view to the improvement of the area to which the scheme relates. [(2) Where any land is designated in an improvement scheme as subject to acquisition or is required by](http://indiankanoon.org/doc/199008/) the scheme to be kept as an open space, then, if at the expiration of ten years from the date of sanction of the scheme by the Central Government under sub-section (2) of section 336 the land is not acquired by the Chairperson, the owner of the land may serve on the Chairperson a notice requiring his interest in the land to be so acquired. [(3) If the Chairperson fails to acquire the land within a period of six months from the receipt of the](http://indiankanoon.org/doc/1781799/) notice, the improvement scheme shall have effect after the expiration of the said six months as if the land were not designated as subject to acquisition by the Chairperson or were not required to be kept as an open space. ----- **[336. Submission of improvement scheme to the Council for approval and to the Central](http://indiankanoon.org/doc/1640196/)** **[Government for sanction.—(1) Every improvement scheme shall, as soon as may be after it has been](http://indiankanoon.org/doc/337260/)** framed, be submitted by the Chairperson for approval to the Council and the Council may either approve the scheme without modifications or with such modifications as it may consider necessary or reject the scheme with directions to the Chairperson to have a fresh scheme framed according to such directions. [(2) No improvement scheme approved by the Council under sub-section (1) shall be valid unless it](http://indiankanoon.org/doc/1753305/) has been sanctioned by the Central Government. **[337. Rehousing scheme.—The Chairperson while framing an improvement scheme under this](http://indiankanoon.org/doc/1100103/)** Chapter for any area may also frame a scheme (hereafter in this Act referred to as the rehousing scheme) for the construction, maintenance and management of such area and so many buildings as he may consider necessary for providing accommodation for persons who are likely to be displaced by the execution of the improvement scheme. **[338. Improvement scheme and rehousing scheme to comply with the master plan and zonal](http://indiankanoon.org/doc/48489/)** **development plan.—No improvement scheme or rehousing scheme framed under this Chapter shall be** valid unless such scheme is in conformity with the provisions of the master plan for Delhi or a zonal development plan for New Delhi or any part thereof. CHAPTER XX POWERS, PROCEDURE, OFFENCES AND PENALTIES _Licences and written permissions_ **[339. Signature, conditions, duration, suspension, revocation, etc., of licences and written](http://indiankanoon.org/doc/1203019/)** **[permissions.—(1) Whenever it is provided in this Act or any bye-law made thereunder that a licence or a](http://indiankanoon.org/doc/313244/)** written permission may be granted for any purpose, such licence or written permission shall be signed by the Chairperson or by the officer empowered to grant the same under this Act or the bye-laws made thereunder or by any officer authorised by the Chairperson or such officer in this behalf and shall specify in addition to any other matter required to be specified under any other provision of this Act or any provision of any bye-law made thereunder— [(a) the date of the grant thereof;](http://indiankanoon.org/doc/149959/) [(b) the purpose and the period (if any) for which it is granted;](http://indiankanoon.org/doc/1014144/) [(c) restrictions or conditions, if any, subject to which it is granted;](http://indiankanoon.org/doc/789336/) [(d) the name and address of the person to whom it is granted; and](http://indiankanoon.org/doc/699882/) [(e) the fee, if any, paid for the licence or written permission.](http://indiankanoon.org/doc/835536/) [(2) Except as otherwise provided in this Act or any bye-law made thereunder, for every such licence](http://indiankanoon.org/doc/118521/) or written permission a fee may be charged at such rate as may from time to time be fixed by the Chairperson with the sanction of the Council and such fee shall be payable by the person to whom the licence or written permission is granted. [(3) Save as otherwise provided in this Act or any bye-law made thereunder any licence or written](http://indiankanoon.org/doc/1775839/) permission granted under this Act any bye-law made thereunder may at any time be suspended or revoked by the Chairperson or by the officer by whom it was granted, if he is satisfied that it has been secured by the grantee through misrepresentation or fraud or if any of its restrictions or conditions have been infringed or evaded by the grantee, or if the grantee has been convicted for the contravention of any of the provisions of this Act or any bye-law made thereunder relating to any matter for which the licence or permission has been granted: Provided that— [(a) before making any order of suspension or revocation reasonable opportunity shall be accorded](http://indiankanoon.org/doc/368676/) to the grantee of the licence or the written permission to show cause why it should not be suspended or revoked; ----- [(b) every such order shall contain a brief statement of the reasons for the suspension or revocation](http://indiankanoon.org/doc/43307/) of the licence or the written permission. [(4) When any such licence or written permission is suspended or revoked, or when the period for](http://indiankanoon.org/doc/248684/) which the same was granted has expired, the grantee shall, for all purposes of this Act or any bye-law made thereunder, be deemed to be without a licence or written permission until such time as the order suspending or revoking the licence or written permission is rescinded or until the licence or written permission is renewed. [(5) Every grantee of any licence or written permission granted under this Act shall at all reasonable](http://indiankanoon.org/doc/1638366/) times, while such licence or written permission remains in force, if so required by the Chairperson or the authority by whom it was granted, produce such licence or written permission. _Entry and inspection_ **[340. Powers of entry and inspection.—The Chairperson or any officer or other employee authorised](http://indiankanoon.org/doc/349135/)** in this behalf by him or empowered in this behalf by or under any provision of this Act, rules, regulations or bye-laws made thereunder, may enter into or upon any land or building with or without assistants and workmen— [(a) for the purpose of ascertaining whether there is or has been on or in connection with the land](http://indiankanoon.org/doc/449351/) or building any contravention of the provisions of this Act, rules, regulations or any bye-law made there-under; [(b) for the purpose of ascertaining whether or not circumstances exist which would authorise or](http://indiankanoon.org/doc/17245/) require the Chairperson or any municipal officer or employee authorised or empowered in this behalf to take any action or execute any work under this Act, rules, regulations or any bye-law made thereunder; [(c) for the purpose of taking any action or executing any work authorised or required by this Act,](http://indiankanoon.org/doc/1883244/) rules, regulations or bye-laws made thereunder; [(d) to make any inquiry, inspection, examination, measurement, valuation or survey authorised or](http://indiankanoon.org/doc/200602/) required by or under this Act, rules, regulations or bye-laws made thereunder or necessary for the proper administration of this Act; [(e) generally for the purpose of efficient discharge of the functions by the Council under this Act,](http://indiankanoon.org/doc/1861623/) rules, regulations or any bye-law made thereunder. **[341. Power to enter land adjoining land in relation to any work.—(1) The Chairperson or any](http://indiankanoon.org/doc/1203556/)** person authorised in this behalf by him or empowered in this behalf by or under any provision of this Act, rules, regulations or bye-laws made thereunder, may enter on any land within fifty metres of any work authorised by or under this Act, rules, regulations or bye-laws made thereunder with or without assistants and workmen for the purpose of depositing thereon any soil, gravel, stone or other materials or for obtaining access to such work or for any other purposes connected with the execution of the same. [(2) The person so authorised shall, before entering on any such land, state the purpose thereof, and](http://indiankanoon.org/doc/898683/) shall, if so required by the owner or occupier thereof, fence off so much of the land as may be required for such purpose. [(3) The person so authorised shall, in exercising any power conferred by this section, do as little](http://indiankanoon.org/doc/1039377/) damage as may be and compensation shall be payable by the Council in accordance with bye-laws made in this behalf to the owner or occupier of such land or to both for any such damage, whether permanent or temporary. **[342. Breaking into building.—(1) It shall be lawful for the Chairperson or any person authorised in](http://indiankanoon.org/doc/1146805/)** this behalf by him or empowered in this behalf by or, under any provision of this Act, rules, regulations or bye-laws made thereunder to make any entry into any place, and to open or cause to be opened any door, gate or other barrier— [(a) if he considers the opening thereof necessary for the purpose of such entry; and](http://indiankanoon.org/doc/1564226/) [(b) if the owner or occupier is absent or being present refuses to open such door, gate or barrier.](http://indiankanoon.org/doc/367550/) [(2) Before making any entry into any such place, or opening or causing to be opened any such door,](http://indiankanoon.org/doc/1249050/) gate or other barrier, the Chairperson or the person authorised or empowered in this behalf, shall call upon ----- two or more respectable inhabitants of the locality in which the place to be entered into is situate, to witness the entry or opening and may issue an order in writing to them or any of them so to do. **[343. Time of making entry.—Save as otherwise provided in this Act, rules, regulations or any](http://indiankanoon.org/doc/1869549/)** bye-law made thereunder, no entry authorised by or under this Act shall be made except between the hours of sunrise and sunset. **[344. Consent ordinarily to be obtained.—Save as otherwise provided in this Act, rules, regulations](http://indiankanoon.org/doc/1962079/)** or any bye-law made thereunder, no land or building shall be entered without the consent of the occupier, or if there is no occupier, of the owner thereof and no such entry shall be made without giving the said owner or occupier, as the case may be, not less than twenty-four hours‟ written notice of the intention to make such entry: Provided that no such notice shall be necessary if the place to be inspected is a factory or workshop or trade premises or a place used for any of the purposes specified in section 327 or a stable for horses or a shed for cattle or a latrine or urinal or a work under construction, or for the purpose of ascertaining whether any animal intended for human consumption is slaughtered in that place in contravention of this Act or any bye-law made thereunder. **[345. Regard to be had to social or religious usages.—When any place used as a human dwelling is](http://indiankanoon.org/doc/912574/)** entered under this Act, due regard shall be paid to the social and religious customs and usages of the occupants of the place entered, and no apartment in the actual occupancy of a female shall be entered or broken open until she has been informed that she is at liberty to withdraw and every reasonable facility has been afforded to her withdrawing. **[346. Prohibition of obstruction or molestation in execution of work.—No person shall obstruct or](http://indiankanoon.org/doc/575848/)** molest any person authorised or empowered by or under this Act or any person with whom the Council has lawfully contracted, in the execution of his duty or of anything which he is authorised or empowered or required to do by virtue or in consequence of any of the provisions of this Act, rules, regulations or any bye-law made thereunder, or in fulfilment of his contract, as the case may be. _Public notices and advertisements_ **[347. Public notices how to be made known.—Every public notice given under this Act, rules,](http://indiankanoon.org/doc/727514/)** regulations or any bye-law made thereunder shall be in writing under the signature of the Chairperson or of any officer authorised in this behalf by him and shall be widely made known in the locality to be affected thereby, by affixing copies thereof in conspicuous public places within the said locality or by publishing the same by beat of drum or by advertisement in local newspapers or by any two or more of these means and by any other means that the Chairperson may think fit. **[348. Newspapers in which advertisements or notices to be published.—Whenever it is provided](http://indiankanoon.org/doc/1469413/)** by this Act or any bye-law made thereunder that notice shall be given by advertisement in local newspapers, or that a notification or information shall be published in local newspapers, such notice, notification or information shall be inserted, if practicable, in at least three newspapers in such languages as the Council may from time to time specify in this behalf: Provided that if the Council publishes a municipal journal, a publication in that journal shall be deemed to be a publication in a newspaper of the language in which the said journal may be published. _Evidence_ **[349. Proof of consent, etc., of Chairperson.—Whenever, under this Act or any rule, regulation or](http://indiankanoon.org/doc/38297/)** bye-law made thereunder, the doing of, or the omission to do, anything or the validity of anything depends upon the approval, sanction, consent, concurrence, declaration, opinion or satisfaction of the Chairperson or of any municipal officer, a written document signed by the Chairperson or officer purporting to convey or set forth such approval, sanction, consent, concurrence, declaration, opinion or satisfaction shall be sufficient evidence thereof. ----- _Notices, etc._ **[350. Notices, etc., to fix reasonable time.—Where any notice, bill, order or requisition issued or](http://indiankanoon.org/doc/827971/)** made under this Act or any rule, regulation or bye-law made thereunder requires anything to be done for the doing of which no time is fixed in this Act or the rule, regulation or bye-law, the notice bill, order or requisition shall specify a reasonable time for doing the same. **[351. Signature on notices, etc., may be stamped.—(1) Every licence, written permission, notice,](http://indiankanoon.org/doc/1627411/)** bill, summons or other document which is required by this Act or any rule, regulation or bye-law made thereunder to bear the signature of the Chairperson or of any officer, shall be deemed to be properly signed if it bears a facsimile of the signature of the Chairperson or Officer, as the case may be, stamped thereupon. [(2) Nothing in sub-section (1) shall be deemed to apply to a cheque drawn upon the New Delhi](http://indiankanoon.org/doc/46081/) Municipal Fund under section 46. **[352. Notices, etc., by whom to be served or issued.—All notices, bills, summons and other](http://indiankanoon.org/doc/230214/)** documents required by this Act or any rule, regulation or bye-law made thereunder to be served upon, or issued to, any person, shall be served or issued by Municipal officers or other Municipal employees or by other persons authorised by the Chairperson. **[353. Services of notices, etc.—(1) Every notice, bill, summons order, requisition or other document](http://indiankanoon.org/doc/452136/)** required or authorised by this Act or any rule, regulation or bye-law made thereunder to be served or issued by or on behalf of the Council, or by the Chairperson or any officer, of any person shall, save as otherwise provided in this Act or such rule, regulation or bye-law, be deemed to be duly served— [(a) where the person to be served is a company, if the document is addressed to the secretary of](http://indiankanoon.org/doc/997677/) the company at its registered office or at its principal office or place of the business and is either— [(i) sent by registered post, or](http://indiankanoon.org/doc/466228/) [(ii) delivered at the registered office or at the principal office or place of business of the](http://indiankanoon.org/doc/1316383/) company; [(b) where the person to be served is a partnership firm, if the document is addressed to the](http://indiankanoon.org/doc/1016866/) partnership firm at its principal place of business, identifying it by the name or style under which its business is carried on, and is either— [(i) sent by registered post, or](http://indiankanoon.org/doc/1759956/) [(ii) delivered at the said place of business;](http://indiankanoon.org/doc/1762674/) [(c) where the person to be served is a public body, or a corporation, society or other body, if the](http://indiankanoon.org/doc/762833/) document is addressed to the secretary, treasurer or other head officer of that body, corporation or society as its principal office, and is either— [(i) sent by registered post, or](http://indiankanoon.org/doc/1261657/) [(ii) delivered at that office;](http://indiankanoon.org/doc/882781/) [(d) in any other case, if the document is addressed to the person to be served and—](http://indiankanoon.org/doc/1043752/) [(i) is given or tendered to him, or](http://indiankanoon.org/doc/1545965/) [(ii) if such person cannot be found, is affixed on some conspicuous part of his last known](http://indiankanoon.org/doc/831374/) place of residence or business, if within the National Capital Territory of Delhi, or is given or tendered to some adult member of his family or is affixed on some conspicuous part of the land or building, if any, to which it relates, or [(iii) is sent by registered post to that person.](http://indiankanoon.org/doc/1028003/) [(2) Any document which is required or authorised to be served on the owner or occupier of any land](http://indiankanoon.org/doc/1070957/) or building may be addressed “the owner” or “the occupier”, as the case may be, of that land or building (naming that land or building) without further name or description, and shall be deemed to be duly served— [(a) if the document so addressed is sent or delivered in accordance with clause (d) of](http://indiankanoon.org/doc/173829/) sub-section (1); or ----- [(b) if the document so addressed or a copy thereof so addressed, is delivered to some person on](http://indiankanoon.org/doc/1460506/) the land or building or, where there is no person on the land or building to whom it can be delivered, is affixed to some conspicuous part of the land or building. [(3) Where a document is served on a partnership firm in accordance with this section, the document](http://indiankanoon.org/doc/1742415/) shall be deemed to be served on each partner. [(4) For the purpose of enabling any document to be served on the owner of any premises the](http://indiankanoon.org/doc/856841/) Chairperson may by notice in writing require the occupier of the premises to state the name and address of the owner thereof. [(5) Where the person on whom a document is to be served is a minor, the service upon his guardian or](http://indiankanoon.org/doc/1246652/) any adult member of his family shall be deemed to be service upon the minor. [(6) Nothing in sections 351 and 352 and in this section shall apply to any summons issued under this](http://indiankanoon.org/doc/1217929/) Act by a court. [(7) A servant is not a member of the family within the meaning of this section.](http://indiankanoon.org/doc/459388/) **[354. Service of bills for tax or notice of demand by ordinary post.—Notwithstanding anything](http://indiankanoon.org/doc/165272/)** contained in sections 352 and 353 a bill for any tax or a notice of demand may be served by sending it by ordinary post with a prepaid letter under a certificate of posting addressed to the appropriate person specified in section 353 at his last known place of residence or business and in proving the service of every bill or notice so sent it shall be sufficient to prove that the letter was properly addressed and posted under a certificate of posting. **[355. Powers in case of non-compliance with notice, etc.—In the event of non-compliance with the](http://indiankanoon.org/doc/1708931/)** terms of any notice, order or requisition issued to any person under this Act or any rule, regulation or bye-law made thereunder; requiring such person to execute any work or to do any act it shall be lawful for the authority or officer at whose instance the notice, order or requisition has been issued, whether or not the person in default is liable to punishment for such default or has been prosecuted or sentenced to any punishment therefor, after giving notice in writing to such person, to take such action or such steps as may be necessary for the completion of the act or the work required to be done or executed by such person and all the expenses incurred on such account shall be payable to the Chairperson on demand and if not paid within ten days after such demand, shall be recoverable as an arrear of tax under this Act. _Recovery of expenses_ **[356. Liability of occupier to pay in default of owner.—(1) If any notice, order or requisition has](http://indiankanoon.org/doc/1258146/)** been issued to any person in respect of property of which he is the owner, the authority or the officer at whose instance such notice, order or requisition has been issued, may require the occupier of such property or of any part thereof to pay to him, instead of to the owner, any rent payable by him in respect of such property, as it falls due upto the amount recoverable from the owner under section 355: Provided that if the occupier refuses to disclose the correct amount of the rent payable by him or the name or address of the person to whom it is payable, the officer may recover from the occupier the whole amount recoverable under section 355 as an arrear of tax under this Act. [(2) Any amount recovered from an occupier instead of from an owner under sub-section (1), shall, in](http://indiankanoon.org/doc/356044/) the absence of any contract between the owner and the occupier to the contrary, be deemed to have been paid to the owner. **[357. Execution of work by occupier in default of owner and deduction of expenses from rent.—](http://indiankanoon.org/doc/978160/)** Whenever the owner of any land or building fails to execute any work which he is required to execute under this Act, or any bye-law made thereunder, the occupier, if any, of such land or building may, with the approval of the Chairperson, execute the said work and he shall, subject to any contract, between the owner and occupier to the contrary, be entitled to recover from the owner the reasonable expenses incurred by him in the execution of the work and may deduct the amount thereof from the rent payable by him to the owner. **[358. Relief to agents and trustees.—(1) Where any person, by reason of his receiving rent of](http://indiankanoon.org/doc/130512/)** immovable property as a receiver, agent or trustee, or of his being as a receiver, agent or trustee the ----- person who would receive the rent if the property were let to a tenant, would under this Act, or any bye-law made thereunder, be bound to discharge any obligation imposed on the owner of the property for the discharge of which money is required, he shall not be bound to discharge the obligation unless he has, or but for his own improper act or default might have had funds in his hands belonging to the owner sufficient for the purpose. [(2) The burden of proving any fact entitling a receiver, agent or trustee to relief under sub-section (1)](http://indiankanoon.org/doc/1486147/) shall lie upon him. [(3) Where any receiver, agent or trustee has claimed and established his right to relief under this](http://indiankanoon.org/doc/731879/) section, the Chairperson may, by notice in writing require him, to apply to the discharge of his obligation as aforesaid the first moneys which may come to his hands on behalf, or for the use, of the owner and on failure to comply with the notice, he shall be deemed to be personally liable to discharge the obligation. _Payment of compensation_ **[359. General power to compensation.—In any case not otherwise provided for in this Act or in any](http://indiankanoon.org/doc/1866776/)** bye-law made thereunder, the Chairperson with the previous approval of the Council, may pay compensation to any person who sustains damage by reason of the exercise of any of the powers vested by this Act or any bye-law in the Chairperson or in any municipal officer or other municipal employee. **[360. Compensation to be paid by offenders for damage caused by them.—(1) Any person who](http://indiankanoon.org/doc/948682/)** has been convicted of an offence against this Act or any bye-law made thereunder shall, notwithstanding any punishment to which he may have been sentenced for the said offence, be liable to pay such compensation for any damage to the property of the Council resulting from the said offence as the Chairperson may consider reasonable. [(2) In the event of a dispute regarding the amount of compensation payable under sub-section (1)](http://indiankanoon.org/doc/1508669/) such amount shall, on application made to him, be determined by the magistrate before whom the said person was convicted of the said offence; and on non-payment of the amount of compensation so determined the same shall be recovered under a warrant issued by the said magistrate as if it were a fine imposed by him on the person liable therefor. _Recovery of expenses or compensation in case of dispute_ **[361. Reference to the court of the district judge in certain cases.—(1) If, when the Chairperson](http://indiankanoon.org/doc/1136908/)** demands payment of any expenses referred to in section 355, his right to demand the same or the amount of the demand is disputed within ten days after such demand, the Chairperson shall refer the case for determination— [(a) to the Appellate Tribunal, if such demand relates to the expenses incurred in taking necessary](http://indiankanoon.org/doc/1892710/) action or steps for the completion of any act or work required to be done or executed in the event of non-compliance with any notice, order or requisition under sections 221, 229, 247, 248 and 249; [(b) to the court of the district judge of Delhi, in any other case.](http://indiankanoon.org/doc/769947/) [(2) The Chairperson shall, pending the decision on any such reference, defer further proceedings for](http://indiankanoon.org/doc/822146/) the recovery of the sum claimed by him, and shall, after the decision, proceed to recover only such amount, if any, as is thereby declared to be due in the manner referred to in section 355. **[362. Application to the court of the district judge in other cases.—(1) Where, in any case not](http://indiankanoon.org/doc/162905/)** provided for by section 361, the Council or the Chairperson or any officer or other employee is required by this Act or by any bye-law made thereunder to pay any expenses or any compensation, the amount to be so paid and if necessary, the apportionment of the same, shall, in case of dispute, be determined by the court of the district judge of Delhi on an application having been made to it for this purpose at any time within one year from the date when such expenses or compensation first became claimable. [(2) If the amount of any expenses or compensation ascertained in accordance with sub-section (1) is](http://indiankanoon.org/doc/135811/) not paid by the person liable therefor on demand, it shall be recoverable as if the same were due under a decree passed by the court of the district judge in an original suit tried by it. ----- [(3) Instead of proceeding in the manner aforesaid for the recovery of any expenses or compensation](http://indiankanoon.org/doc/1746813/) of which the amount due has been ascertained as hereinbefore provided, or after such proceedings have been taken unsuccessfully or with only partial success, the sum due or the balance of the sum due, as the case may be, may be recovered by a suit brought against the person liable for same in any court of competent jurisdiction. _Recovery of certain dues_ **[363. Mode of recovery of certain dues.—In any case not expressly provided for in this Act or any](http://indiankanoon.org/doc/1787269/)** bye-law made thereunder any sum due to the Council on account of any charge, costs, expenses, fees, rates or rent or on any other account under this Act or any such bye-law may be recoverable from any person from whom such sum is due as an arrear of tax under this Act: Provided that no proceedings for the recovery of any sum under this section shall be commenced after the expiry of three years from the date on which such sum becomes due. _Obstruction of owner by occupier_ **[364. Right of owner to apply to the court of the district judge in case of obstruction by](http://indiankanoon.org/doc/678674/)** **[occupier.—(1) The owner of any land or building may, if he is prevented by the occupier thereof from](http://indiankanoon.org/doc/989202/)** complying with— [(a) the provisions of section 221, section 229, section 247, section 248, section 249, or](http://indiankanoon.org/doc/551360/) section 252, or any bye-law made thereunder or with any notice or order issued under any such provision apply to the Appellate Tribunal; and [(b) any other provision or any bye-law made thereunder or with any notice, order or requisition](http://indiankanoon.org/doc/1320574/) issued under such provision, apply to the court of the district judge of Delhi and where such application is made within any time that may be fixed for the compliance with such provision or notice, order or requisition the owner shall not be liable for his failure to comply with the provision, or notice, order or requisition within the time so fixed. [(2) The Appellate Tribunal or the court, as the case may be, on receipt of such application, may make](http://indiankanoon.org/doc/481082/) a written order requiring the occupier of the land or building to afford all reasonable facilities to the owner for complying with the said provision or notice, order or requisition and may also, if it thinks fit direct that the costs of such application and order be paid by the occupier. [(3) After eight days from the date of the order referred to in sub-section (2), the occupier shall afford](http://indiankanoon.org/doc/383700/) all such reasonable facilities to the owner for the purpose aforesaid as may be specified in the order; and in the event of his continued refusal to do so, the owner shall be discharged during the continuance of such refusal, from any liability which may have been otherwise incurred by reason of his failure to comply with the said provision or notice, order or requisition. _Proceedings before the court of the district judge_ **[365. General powers and procedure of the court of the district judge.—The procedure provided](http://indiankanoon.org/doc/1671402/)** in the Code of Civil Procedure, 1908 (5 of 1908), in regard to suits shall be followed, as far as it can be made applicable, in the disposal of applications, appeals or references that may be made to the court of the district judge of Delhi under this Act or any bye-law made thereunder. **[366. Fees in proceedings before the court of the district judge.—(1) The Government may, by](http://indiankanoon.org/doc/1488290/)** notification in the Official Gazette, prescribe what fee shall be paid— [(a) on any application, appeal or reference under this Act or any bye-law made thereunder to the](http://indiankanoon.org/doc/331474/) court of the district judge of Delhi; and [(b) for the issue, in connection with any inquiry or proceedings before that court under this Act or](http://indiankanoon.org/doc/554056/) such bye-law, of any summons or other process: Provided that the fee, if any, prescribed under clause (a) shall not, in cases in which the value of the claim or subject matter is capable of being estimated in money, exceed the fees leviable for the time being under the provisions of the Court-fees Act, 1870 (7 of 1870), in cases in which the amount of the claim or subject matter is of a like amount. ----- [(2) The Government may, by like notification, determine the person by whom the fee, if any,](http://indiankanoon.org/doc/1637377/) prescribed under clause (a) of sub-section (1), shall be payable. [(3) No application, appeal or reference shall be received by the court of the district judge until the fee,](http://indiankanoon.org/doc/1561939/) if any, prescribed therefor under clause (a) of sub-section (1) has been paid: Provided that the court may, in any case in which it thinks fit so to do,— [(i) receive an application, appeal or reference made by or on behalf of a poor person, and](http://indiankanoon.org/doc/1624221/) [(ii) issue process on behalf of any such person,](http://indiankanoon.org/doc/1959542/) without payment or on part payment of the fees prescribed under this section. **[367. Repayment of half fees on settlement before hearing.—Whenever any application, appeal or](http://indiankanoon.org/doc/1510623/)** reference made under this Act or any bye-law made thereunder to the court of the district judge is settled by agreement between the parties before the hearing, half the amount of all fees paid up to that time shall be repaid by the court to the parties by whom the same have respectively been paid. **[368. Power of the court of the district judge to delegate certain powers and to make rules.—The](http://indiankanoon.org/doc/1069091/)** court of the district judge of Delhi may— [(a) delegate, either generally or specially, to the court of an additional district judge, power to](http://indiankanoon.org/doc/1446540/) receive applications, appeals and references under this Act or any rule, regulation or bye-law made thereunder, and to hear and determine such applications, appeals and references; [(b) with the approval of the Government, make rules not inconsistent with this Act or any rule,](http://indiankanoon.org/doc/1512975/) regulation or bye-law made thereunder, providing for any matter connected with the exercise of the jurisdiction conferred upon the court by this Act which is not herein specifically provided for. _Offences and penalties_ **[369. Punishment for certain offences.—(1) Whoever—](http://indiankanoon.org/doc/1998823/)** [(a) contravenes any provision of any of the sections, sub-sections, clauses, provisos or other](http://indiankanoon.org/doc/852431/) provisions of this Act mentioned in the first column of the Table in the Tenth Schedule; or [(b) fails to comply with any order or direction lawfully given to him or any requisition lawfully](http://indiankanoon.org/doc/209202/) made upon him under any of the said sections, sub-sections, clauses, provisos or other provisions, shall be punishable— [(i) with fine which may extend to the amount or with imprisonment for a term which may extend](http://indiankanoon.org/doc/1419669/) to the period, specified in that behalf in third column of the said Table or with both; and [(ii) in the case of a continuing contravention or failure, with an additional fine which may extend](http://indiankanoon.org/doc/1834895/) to the amount specified in the fourth column of that Table for every day during which such contravention or failure continues after conviction for the first such contravention or failure. [(2) Notwithstanding anything contained in sub-section (1), whoever contravenes the provisions of](http://indiankanoon.org/doc/916725/) sub-section (1) of section 221, or sub-section (1) of section 224, or sub-section (1) of section 225 or sub-section (1) of section 229 or section 244, in relation to any street which is a public street, shall be punishable with simple imprisonment which may extend to six months or with fine which may extend to five thousand rupees or with both. [(3) Any member, referred to in clauses (b) and (d) of sub-section (1) of section 4, who knowingly](http://indiankanoon.org/doc/901121/) acquires, directly or indirectly, any share or interest in any contract made with, or any work done for the Council, shall be deemed to have committed offence made punishable under section 168 of the Indian Penal Code (45 of 1860). **[370. General penalty.—Whoever, in any case in which a penalty is not expressly provided by this](http://indiankanoon.org/doc/679056/)** Act, fails to comply with any notice, order or requisition issued under any provision thereof, or otherwise contravenes any of the provisions of this Act, shall be punishable with fine which may extend to one hundred rupees, and in the case of a continuing failure or contravention, with an additional fine which may extend to twenty rupees for every day after the first during which he has persisted in the failure or contravention. ----- **[371. Offences by companies.—(1) Where an offence under this Act has been committed by a](http://indiankanoon.org/doc/497158/)** company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence has been committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. [(2) Notwithstanding anything contained in sub-section (1) where an offence under this Act has been](http://indiankanoon.org/doc/1646704/) committed by a company and it is proved that the offence has been committed with the consent or connivance of or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ [(a) “company” means a body corporate, and includes a firm or other association of individuals;](http://indiankanoon.org/doc/1323376/) and [(b) “director” in relation to a firm means a partner in the firm.](http://indiankanoon.org/doc/404025/) **[372. Certain offences to be cognizable.—The Code of Criminal Procedure, 1973 (2 of 1974) shall](http://indiankanoon.org/doc/1925174/)** apply to,— [(a) an offence under sub-section (5) of section 217 or section 237 or sub-section (1) of section](http://indiankanoon.org/doc/1924465/) 238 or sub-section (1) of section 239 or section 247 or section 248 or section 249 or section 252; [(b) an offence under sub-section (1) of section 221 or sub-section (1) of section 224 or](http://indiankanoon.org/doc/237111/) sub-section (1) of section 225 or sub-section (1) of section 229 or section 244 in relation to any street which is a public street. as if it were a cognizable offence— [(i) for the purposes of investigation of such offence; and](http://indiankanoon.org/doc/25303/) [(ii) for the purposes of all matters other than—](http://indiankanoon.org/doc/1332608/) [(1) matters referred to in section 42 of that Code, and](http://indiankanoon.org/doc/1272900/) [(2) arrest of a person, except on the complaint of, or upon information received from, such](http://indiankanoon.org/doc/1782890/) officer of the Council, not being below the rank of a Secretary as may be appointed by the Chairperson: Provided that no offence of the contravention of any condition subject to which sanction was accorded for the erection of any building or the execution of any work shall be cognizable, if such contravention relates to any deviation from any plan of such erection or execution sanctioned by the Chairperson which is compoundable on payment of any amount under the bye-laws relating to buildings made under this Act. **[373. Prosecutions.—Save as otherwise provided in this Act, no court shall proceed to the trial of any](http://indiankanoon.org/doc/7732/)** offence,— [(a) under sub-section (5) of section 217 or section 237 or sub-section (1) of section 238 or](http://indiankanoon.org/doc/3617/) sub-section (1) of section 239 or section 247 or section 248 or section 249 or section 252 except on the complaint of or upon information received from, such officer of the Council, not being below the rank of a Secretary as may be appointed by the Chairperson. [(b) under sub-section (1) of section 221 or sub-section (1) of section 224 or sub-section (1) of](http://indiankanoon.org/doc/1059072/) section 225 or sub-section (1) of section 229 or section 244, if any such offence was committed in relation to any street which is a public street, except on the complaint of, or upon information received from, such officer of the Council, not being below the rank of a Secretary as may be appointed by the Chairperson; ----- [(c) other than those specified in clauses (a) and (b) except on the complaint of, or upon](http://indiankanoon.org/doc/1944990/) information received from the Chairperson or a person authorised by him by a general or special order in this behalf. **[374. Composition of offences.—(1) The Chairperson or any person authorised by him by general or](http://indiankanoon.org/doc/1613528/)** special order in this behalf may, either before or after the institution of the proceedings, compound any offence made punishable by or under this Act: Provided that no offence shall be compoundable which is committed by failure to comply with a notice, order or requisition issued by or on behalf of the Council or of the Chairperson unless and until the same has been complied with so far as the compliance is possible. [(2) Where an offence has been compounded, the offender, if in custody shall be discharged, and no](http://indiankanoon.org/doc/1600814/) further proceedings shall be taken against him in respect to the offence so compounded. _Magistrates and proceedings before magistrates_ **[375. Municipal magistrates.—(1) The Government may appoint one or more metropolitan](http://indiankanoon.org/doc/1849838/)** magistrates for the trial of offences against this Act and against any rule, regulation or bye-law made thereunder and may prescribe the time and place at which such magistrate or magistrates shall sit for the despatch of business. [(2) Such magistrates shall be called municipal magistrates and shall besides the trial of offences as](http://indiankanoon.org/doc/1746550/) aforesaid, exercise all other powers and discharge all other functions of a magistrate as provided in this Act or any rule, regulation of bye-law made thereunder. [(3) Such magistrates and the members of their staff shall be paid such salary, pension, leave and other](http://indiankanoon.org/doc/1061483/) allowances as may, from to time, be fixed by the Government. [(4) The Council shall, out of the New Delhi Municipal Fund, pay to the Government the amounts of](http://indiankanoon.org/doc/1974923/) the salary, pension, leave and other allowances as fixed under sub-section (3) together with all other incidental charges in connection with the establishments of the said magistrates. [(5) Each such magistrate shall have jurisdiction over the whole of New Delhi.](http://indiankanoon.org/doc/931963/) [(6) For the purpose of the Code of Criminal Procedure, 1973 (2 of 1974), all municipal magistrates](http://indiankanoon.org/doc/1092135/) appointed under this Act shall be deemed to be magistrates appointed under section 16 of the said Code. [(7) Nothing in this section shall be deemed to preclude any magistrate appointed hereunder from](http://indiankanoon.org/doc/675091/) trying any offence under any other law. **[376. Cognizance of offences.—All offences against this Act or any rule, regulation or bye-law made](http://indiankanoon.org/doc/891833/)** thereunder, whether committed within or without the limits of New Delhi, shall be cognizable by a municipal magistrate and such magistrate shall not be deemed to be incapable of taking cognizance of any such offence or of any offence under any enactment which is repealed by, or which ceases to have effect under this Act by reason only of his being liable to pay any municipal tax or rate or benefited out of the New Delhi Municipal Fund. **[377. Limitation of time for prosecution.—No person shall be liable to punishment for any offence](http://indiankanoon.org/doc/762989/)** against this Act or any rule, regulation or bye-law made thereunder, unless complaint of such offence is made before a municipal magistrate within six months next after— [(a) the date of the commission of the offence; or](http://indiankanoon.org/doc/315715/) [(b) the date on which the commission or existence of such offence was first brought to the notice](http://indiankanoon.org/doc/1223666/) of the complainant. **[378. Power of magistrate to hear cases in absence of accused when summoned to appear.—If](http://indiankanoon.org/doc/1930947/)** any person summoned to appear before a magistrate to answer a charge of an offence against this Act or any rule, regulation or bye-law made thereunder fails to appear at the time and place mentioned in the summons, or on any date to which the hearing of the case is adjourned, the magistrate may hear and determine the case in his absence, if— [(a) service of the summons is proved to his satisfaction, and](http://indiankanoon.org/doc/14019/) ----- [(b) no sufficient cause is shown, for the non-appearance of such person.](http://indiankanoon.org/doc/210079/) **[379. Complaints concerning nuisances.—The Chairperson or any municipal officer or other](http://indiankanoon.org/doc/411430/)** municipal employee authorised by him in this behalf or any person who resides or owns property in New Delhi, may complain to a municipal magistrate of the existence of any nuisance. **[380. Procedure to be followed by magistrate regarding complaints concerning nuisances.—](http://indiankanoon.org/doc/1908961/)** [(1) Upon the receipt of any complaint under section 379, the magistrate, after making such inquiry as he](http://indiankanoon.org/doc/1349375/) thinks necessary, may by written order direct the person responsible for the nuisance or the owner of the land or building on which the nuisance has taken place, to take such measures as to such magistrate may seem practicable and reasonable, and within such period as may be specified in the order for abating, preventing, removing or remedying such nuisance and may direct the Chairperson to put into force any of the provisions of this Act or any bye-law made thereunder. [(2) The magistrate may further direct the person found responsible for the nuisance to pay to the](http://indiankanoon.org/doc/885583/) complainant such reasonable costs of and relating to the said complaint as he shall determine, inclusive of compensation for the complainant‟s loss of time in prosecuting such complaint. [(3) Where in the opinion of the magistrate immediate action to prevent the nuisance is necessary he](http://indiankanoon.org/doc/1120971/) may dispense with the inquiry as required by sub-section (1) and make such order as he considers necessary forthwith. [(4) If the person directed to take action by an order under sub-section (1) or sub-section (2) fails to do](http://indiankanoon.org/doc/173101/) so within the period specified in the order, the Chairperson may on the expiry of the said period proceed to take action as directed in the order or may take such other measures to abate, prevent, remove or remedy the nuisance as he considers necessary, and all expenses incurred in that connection shall be recoverable from the person against whom the magistrate has made the order as an arrear of tax under this Act. _Powers and duties of police officers_ **[381. Arrest of offenders.—(1) Any police officer, may arrest any person who commits in his view](http://indiankanoon.org/doc/1931548/)** any offence against this Act or against any rule, regulation or bye-law made thereunder if— [(a) the name and address of such person be unknown to him, and](http://indiankanoon.org/doc/887730/) [(b) such person on demand declines to give his name and address or gives a name and address](http://indiankanoon.org/doc/1737874/) which such officer has reason to believe to be false. [(2) No person so arrested shall be detained in custody after his true name and address are ascertained](http://indiankanoon.org/doc/681463/) or, without the order of the nearest magistrate for a period longer than twenty-four hours from the time of arrest exclusive of the time necessary for the journey from the place of arrest to the court of such magistrate. **[382. Duties of police officers.—It shall be the duty of all police officers, to give immediate](http://indiankanoon.org/doc/220630/)** information to the Chairperson of the commission of, or the attempt to commit any offence against this Act or any rule, regulation or bye-law made thereunder and to assist all municipal officers and other municipal employees in the exercise of their lawful authority. _Legal proceedings_ **[383. Power to institute, etc., legal proceedings and obtain legal advice.—(1)](http://indiankanoon.org/doc/1074309/)** The Chairperson may— [(a) take, or withdraw from, proceedings against any person who is charged with—](http://indiankanoon.org/doc/1951834/) [(i) any offence against this Act or any rules, regulation or bye-law made thereunder; or](http://indiankanoon.org/doc/196836/) [(ii) any offence which affects or is likely to affect any property or interest of the Council or](http://indiankanoon.org/doc/1942428/) the due administration of this Act; or [(iii) committing any nuisance whatsoever;](http://indiankanoon.org/doc/929891/) [(b) contest or compromise any appeal against rateable value or assessment of any tax or rate;](http://indiankanoon.org/doc/627252/) ----- [(c) take, or withdraw from, compromise proceedings under sections 360, 361 and 362 for](http://indiankanoon.org/doc/520913/) recovery of expenses or compensation claimed to be due to the Council; [(d) withdraw or compromise any claim for a sum not exceeding one thousand rupees against any](http://indiankanoon.org/doc/459143/) person; [(e) defend any suit or other legal proceeding brought against the Council or against the](http://indiankanoon.org/doc/1757445/) Chairperson or a municipal officer or municipal employee in respect of anything done or omitted to be done by any one of them in his official capacity; [(f) with the approval of the Council admit or compromise any claim, suit or other legal](http://indiankanoon.org/doc/1156578/) proceeding brought against the Council or against the Chairperson or any officer or other employee in respect of anything done or omitted to be done as aforesaid; [(g) withdraw or compromise any claim against any person in respect of a penalty payable under a](http://indiankanoon.org/doc/241922/) contract entered into with such person by the Chairperson on behalf of the Council; [(h) institute and prosecute any suit or other legal proceeding, or with the approval of the Council](http://indiankanoon.org/doc/788199/) withdraw from or compromise any suit or any claim for any sum not exceeding five hundred rupees which has been instituted or made in the name of the Council or the Chairperson; [(i) obtain such legal advice and assistance as he from time to time thinks necessary or expedient](http://indiankanoon.org/doc/1270785/) to obtain or as he may be required by the Council to obtain for any of the purposes mentioned in the foregoing clauses or for securing lawful exercise or discharge of any power or duty vesting in or imposed upon any municipal officer or other municipal employee. **[384. Protection of action of the Council, etc.—No suit or prosecution shall be entertained in any](http://indiankanoon.org/doc/11985/)** court against the Council or against any municipal officer or other municipal employee or against any person acting under the order or direction of the Chairperson or any municipal officer or other municipal employee, for anything which is in good faith done or intended to be done, under this Act or any rule, regulation or bye-law made thereunder. **[385. Notice to be given of suits.—(1) No suit shall be instituted against the Council or against the](http://indiankanoon.org/doc/790975/)** Chairperson or against any municipal officer or other municipal employee or against any person acting under the order or direction of the Chairperson or any municipal officer or other municipal employee, in respect of any act done, or purporting to have been done, in pursuance of this Act or any rule, regulation or bye-law made thereunder until the expiration of two months after notice in writing has been delivered at the municipal office and, in the case of such officer, employee or person, unless notice in writing has also been delivered to him at his office or place of residence, and unless such notice states explicitly the cause of action, the nature of the relief sought, the amount of compensation claimed, and the name and place of residence of the intending plaintiff, and unless the plaint contains a statement that such notice has been so left or delivered. [(2) No suit, such as is described in sub-section (1), shall unless it is a suit for the recovery of](http://indiankanoon.org/doc/189669/) immovable property or for a declaration of title thereto, be instituted after the expiry of six months from the date on which the cause of action arises. [(3) Nothing in sub-section (1) shall be deemed to apply to a suit in which the only relief claimed is an](http://indiankanoon.org/doc/925655/) injunction of which the object would be defeated by the giving of the notice or the postponement of the institution of the suit. CHAPTER XXI RULES, REGULATIONS AND BYE-LAWS **[386. Supplemental provisions respecting rules.—(1) Any rule which the Central Government is](http://indiankanoon.org/doc/488875/)** empowered to make under this Act may provide that any contravention thereof shall be punishable with fine which may extend to one hundred rupees. [(2) Every rule made under this Act and bye-laws made by the Central Government under section 260](http://indiankanoon.org/doc/290760/) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions ----- aforesaid, both Houses agree in making any modification in the rule or bye-laws or both Houses agree that the rule or bye-laws, should not be made, the rule or bye-laws, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or bye-laws. **[387. Supplemental provisions respecting regulations.—(1) Any regulation which may be made by](http://indiankanoon.org/doc/795750/)** the Council under this Act may be made by the Central Government within one year of the establishment of the Council; and any regulation so made may be altered or rescinded by the Council in the exercise of its powers under this Act. [(2) No regulation made by the Council under this Act shall have effect until it has been approved by](http://indiankanoon.org/doc/1995423/) the Central Government and published in the Official Gazette. **[388. Power to make bye-laws.—(1) Subject to the provisions of this Act, the Council may, in](http://indiankanoon.org/doc/1799348/)** addition to any bye-laws which it is empowered to make by any other provision of this Act, make bye-laws to provide for all or any of the following matters, namely:— _A. Bye-laws relating to taxation_ [(1) the maintenance of tax books and registers by the Chairperson and the particulars which such](http://indiankanoon.org/doc/1348761/) books and registers should contain; [(2) the inspection of and the obtaining of copies and extracts from such books and registers and fees,](http://indiankanoon.org/doc/1885949/) if any, to be charged for the same; [(3) the publication of rates of taxes as determined by the Council from time to time;](http://indiankanoon.org/doc/1359887/) [(4) the requisition by the Chairperson of information and returns from persons liable to pay taxes;](http://indiankanoon.org/doc/1091145/) [(5) the notice to be given to the Chairperson by any person who becomes the owner or possessor of a](http://indiankanoon.org/doc/995991/) vehicle or animal in respect of which any tax is payable under this Act; [(6) the wearing of badge by the driver of any such vehicle and the display of number plate on such](http://indiankanoon.org/doc/241424/) vehicle; [(7) the submission of returns by persons liable to pay any tax under this Act;](http://indiankanoon.org/doc/1588917/) [(8) the collection by the registrar or sub-registrar of Delhi appointed under the Registration Act, 1908](http://indiankanoon.org/doc/79859/) (16 of 1908) of the additional stamp duty payable to the Council under this Act, the periodical payment of such duty to the Council and the maintenance by such registrar or sub-registrar of separate accounts in relation thereto; [(9) any other matter relating to the levy, assessment, collection, refund or remission of taxes under](http://indiankanoon.org/doc/246586/) this Act. _B. Bye-laws relating to water supply, drainage and sewage collection_ [(1) the power of the Chairperson to close water works for the supply of water, whether for domestic](http://indiankanoon.org/doc/1348761/) purposes or not, or for gratuitous use and to prohibit the sale and use of water for purpose of business; [(2) the connection of supply pipes for conveying to any premises a supply of water from a municipal](http://indiankanoon.org/doc/1885949/) water works; [(3) the making and renewing connections with municipal water works;](http://indiankanoon.org/doc/1359887/) [(4) the power of the Chairperson to take charge of private connections;](http://indiankanoon.org/doc/1091145/) [(5) the power of the Chairperson to alter the position of connections;](http://indiankanoon.org/doc/995991/) [(6) the equitable distribution of water supplied to occupiers;](http://indiankanoon.org/doc/241424/) [(7) the size, material, quality, description and position of the pipes and fittings to be used for the](http://indiankanoon.org/doc/1588917/) purpose of any connection with or any communication from any municipal water works and the stamping of pipes and fittings and fees for such stamping; ----- [(8) the size, material, quality and description of pipes, cisterns and fittings which are found on an](http://indiankanoon.org/doc/79859/) examination under the provisions of this Act to be so defective that they cannot be effectively repaired; [(9) the provision and maintenance of meters when water is supplied by measurement;](http://indiankanoon.org/doc/246586/) [(10) the prohibition of fraudulent and unauthorised use of water and the prohibition of fraud in](http://indiankanoon.org/doc/1769525/) connection with meters; [(11) the maintenance of pipes; cisterns and other water works;](http://indiankanoon.org/doc/395493/) [(12) the regulation or prohibition of the discharge or deposit of offensive or obstructive matter,](http://indiankanoon.org/doc/1513823/) polluted water or other polluted and obnoxious matter into sewers; [(13) the regulation in any manner not specifically provided for in this Act of the construction,](http://indiankanoon.org/doc/1699181/) alteration, maintenance, preservation, cleaning and repairs of drains, ventilation shafts, pipes, latrines, urinals, cesspools and other drainage works; [(14) the cleansing of drains;](http://indiankanoon.org/doc/391049/) [(15) the prohibition of erection of buildings over drains without the permission of the Chairperson;](http://indiankanoon.org/doc/1547407/) [(16) the connection of private drains with municipal drains;](http://indiankanoon.org/doc/1534434/) [(17) the location and construction of cesspools;](http://indiankanoon.org/doc/8728/) [(18) the covering and ventilation of cesspools;](http://indiankanoon.org/doc/701582/) [(19) the period or periods of the day during which trade effluent may be discharged from any trade](http://indiankanoon.org/doc/551846/) premises into municipal drains; [(20) the exclusion from trade effluent of all condensing water;](http://indiankanoon.org/doc/143747/) [(21) the elimination from trade effluent, before it enters a municipal drain, of any constituent which in](http://indiankanoon.org/doc/1766825/) the opinion of the Council would either alone or in combination with any matter with which it is likely to come into contact while passing through municipal drains injure or obstruct those drains or make specially difficult or expensive the treatment or disposal of the sewage from those drains; [(22) the maximum quantity of trade effluent which may without any consent or permission, be](http://indiankanoon.org/doc/573812/) discharged from any trade premises into municipal drains on any one day and the highest rate at which trade effluent may, without such consent or permission, be discharged from any trade premises into municipal drains; [(23) the regulation of the temperature of trade effluent at the time of its discharge into municipal](http://indiankanoon.org/doc/976568/) drains and the securing of the neutrality of trade effluent (that is to say, that it is neither acid nor alkaline) at the time of such discharge; [(24) the charges to be paid to the Council by occupiers of trade premises for the reception of trade](http://indiankanoon.org/doc/54778/) effluent into municipal drains and disposal thereof; [(25) the provision and maintenance of such an inspection chamber or mainhole as will enable a](http://indiankanoon.org/doc/273540/) person readily to take at any time samples of what is passing into municipal drains from trade premises; [(26) the provision and maintenance of such meters as may be required to measure the volume of any](http://indiankanoon.org/doc/1599262/) trade effluent being discharged from any trade premises into municipal drains and the testing of such meters. _C. Bye-laws relating to electric supply_ [(1) all matters relating to the conduct and management in respect of electricity supply;](http://indiankanoon.org/doc/1348761/) [(2) the provisions for electric sub-stations in New Delhi.](http://indiankanoon.org/doc/1885949/) _D. Bye-laws relating to streets_ [(1) the closure of streets when any work is in progress and alternative passage during the progress](http://indiankanoon.org/doc/1348761/) of such work; ----- [(2) the erections of a temporary nature during festivals;](http://indiankanoon.org/doc/1885949/) [(3) the setting up of hoards on buildings adjacent to streets during their construction or repair;](http://indiankanoon.org/doc/1359887/) [(4) the precautions to be taken when permission is granted to any private individual for opening](http://indiankanoon.org/doc/1091145/) or breaking up any public street and the fees to be paid for the restoration of a street in its original condition; [(5) the permission, regulation or prohibition or use or occupation of any street or place by it,](http://indiankanoon.org/doc/995991/) itinerant vendors or hawkers or by any person for the sale of articles or the exercise of any calling or the setting up of any booth or stall and the fees chargeable for such occupation; [(6) any other matter in connection with the construction, repair, maintenance, naming, numbering](http://indiankanoon.org/doc/241424/) and lighting of streets for which provision is necessary or should be made. _E. Bye-laws relating to sanitation and public health_ [(1) the position of latrines and urinals;](http://indiankanoon.org/doc/1348761/) [(2) the provision of air spaces between latrines and buildings or places used for various purposes;](http://indiankanoon.org/doc/1885949/) [(3) the white-washing of buildings;](http://indiankanoon.org/doc/1359887/) [(4) the regulation or prohibition of the stabling or herding of animals or any class of animals so as](http://indiankanoon.org/doc/1091145/) to prevent danger to public health; [(5) the seizure of ownerless animals straying within the limits of New Delhi and the regulation](http://indiankanoon.org/doc/995991/) and control of pounds; [(6) the fixing and regulation of the use of public bathing and washing places;](http://indiankanoon.org/doc/241424/) [(7) the prevention of the spread of dangerous disease;](http://indiankanoon.org/doc/1588917/) [(8) the segregation in or the removal or exclusion from any part of New Delhi or the destruction](http://indiankanoon.org/doc/79859/) of animals suffering or reasonably suspected to be suffering from any infectious or contagious disease; [(9) the supervision, regulation, conservation and protection from injury, contamination or](http://indiankanoon.org/doc/246586/) trespass, of sources and means of public water supply and of appliances for the distribution of water; [(10) the enforcement of compulsory vaccination and inoculation;](http://indiankanoon.org/doc/1769525/) [(11) the proper disposal of corpses, the regulation and management of burning and burial places](http://indiankanoon.org/doc/395493/) and other places for the disposal of corpses and the fees chargeable for the use of such places where the same are provided or maintained at the expense of the New Delhi Municipal Fund; [(12) the provision of living accommodation for sweepers in buildings newly erected requiring ten](http://indiankanoon.org/doc/1513823/) or more latrines. _F. Bye-laws relating to vital statistics_ [(1) the prescribing of qualifications of persons to be appointed as chief registrar, additional chief](http://indiankanoon.org/doc/1348761/) registrar and registrar under Chapter XVI; [(2) the registration of births and deaths and marriages and taking of a census.](http://indiankanoon.org/doc/1885949/) _G. Bye-laws relating to public safety and suppression of nuisances_ The regulation or prohibition for the purpose of sanitation or the prevention of disease or the promotion of public safety or convenience, of any act which occasions or is likely to occasion a nuisance and for the regulation or prohibition of which no provision is made elsewhere by this Act. _H. Bye-laws relating to markets, slaughter houses, trades and occupations_ [(1) the days on, and hours during which any market or slaughter house may be kept open for use;](http://indiankanoon.org/doc/1348761/) [(2) the regulation of the design, ventilation and drainage of markets and slaughter house the](http://indiankanoon.org/doc/1885949/) materials to be used in the construction thereof; ----- [(3) the keeping of markets and the slaughter house and the lands and buildings appertaining](http://indiankanoon.org/doc/1359887/) thereto in a clean and sanitary condition, the removal of filth, rubbish and other polluted and obnoxious matter therefrom and the supply therein of pure water and of a sufficient number of latrines and urinals for the use of persons using or frequenting the same; [(4) the provision of passages of sufficient width between the stalls in market buildings and market](http://indiankanoon.org/doc/1091145/) places for the convenient use of the public and the prevention of encroachment of such passages; [(5) the setting apart of separate areas for different classes of article in market buildings and](http://indiankanoon.org/doc/995991/) market places; [(6) the proper custody and care of animals for the keeping of which licences are granted under](http://indiankanoon.org/doc/241424/) section 327; [(7) the regulation of the import of animals and flesh within New Delhi;](http://indiankanoon.org/doc/1588917/) [(8) the rendering necessary of licences for the use of premises within New Delhi as stables or](http://indiankanoon.org/doc/79859/) cow-houses or as an accommodation for sheep, goat or buffalo and the fees payable, for such licences and the conditions subject to which such licences may be granted, refused, suspended or revoked; [(9) the regulation of sarais, hotels, hostels, guest houses, dak bungalows, lodging houses,](http://indiankanoon.org/doc/246586/) boarding houses, buildings, let-in-tenements, residential clubs, restaurants, eating houses, cafes, refreshment rooms and places of public recreation, entertainment or resort; [(10) the control and supervision of places where dangerous or offensive trades are carried on so](http://indiankanoon.org/doc/1769525/) as to secure cleanliness therein or to minimise injurious, offensive or dangerous effects arising or likely to arise therefrom; [(11) the regulation of the posting of bills and advertisements and of the position, size, shade or](http://indiankanoon.org/doc/395493/) style of the name boards, sign boards, hoarding and sign-posts; [(12) the fixation of a method for the sale of articles whether by measure, weight, piece or any](http://indiankanoon.org/doc/1513823/) other method; [(13) the procedure regarding the grant of permit to establish a factory, workshop or trade](http://indiankanoon.org/doc/1699181/) premises; [(14) the regulation of smoke in factories, workshops and trade premises;](http://indiankanoon.org/doc/391049/) [(15) the regulation of sanitary conditions in factories, workshops, and trade premises;](http://indiankanoon.org/doc/1547407/) [(16) the regulation of the use in any factory, workshop or trade premises of whistle, trumpet,](http://indiankanoon.org/doc/1534434/) siren, or horn worked by steam, compressed air, electricity or other mechanical means; [(17) the prevention of nuisance in any market building, market place, or any factory, workshop or](http://indiankanoon.org/doc/8728/) trade premises. _I. Bye-laws relating to improvement_ [(1) the form and content of an improvement scheme or a rehousing scheme;](http://indiankanoon.org/doc/1348761/) [(2) the procedure to be followed in connection with the framing, submission, approval and](http://indiankanoon.org/doc/1885949/) sanction of such schemes; [(3) the local enquiries and other hearings that may be held before a scheme is framed, approved](http://indiankanoon.org/doc/1359887/) or sanctioned; [(4) the alteration of an improvement scheme or a rehousing scheme after approval and sanction.](http://indiankanoon.org/doc/1091145/) _J. Bye-laws relating to miscellaneous matters_ [(1) the circumstances and the manner in which owners of land or building in New Delhi](http://indiankanoon.org/doc/1348761/) temporarily absent therefrom or not resident therein may be required to appoint as their agents for all or any of the purposes of this Act or of any bye-laws made thereunder, persons residing within or near New Delhi; [(2) the maintenance of schools and the furtherance of education generally;](http://indiankanoon.org/doc/1885949/) [(3) the regulation and control of municipal dispensaries;](http://indiankanoon.org/doc/1359887/) ----- [(4) the rendering necessary of licences—](http://indiankanoon.org/doc/1091145/) [(a) for the proprietors or drivers of hackney-carriages; cycle-rickshaws, thelas and rehries](http://indiankanoon.org/doc/993270/) kept or plying for hire or used for hawking articles; [(b) for persons working as job-porters for the conveyance of goods;](http://indiankanoon.org/doc/1467756/) [(5) the classification of cinema theatres for the purpose of the Third Schedule;](http://indiankanoon.org/doc/995991/) [(6) any other matter which is to be or may be prescribed by bye-laws made under this Act or in](http://indiankanoon.org/doc/241424/) respect of which this Act makes no provisions or makes insufficient provision and provision is, in the opinion of the Council necessary for the efficient municipal government of New Delhi. [(2) Any bye-law which may be made under sub-section (1) may be made by the Central Government](http://indiankanoon.org/doc/1885949/) within one year of the establishment of the Council, and any bye-law so made may be altered or rescinded by the Council in exercise of its powers under sub-section (1). **[389. Regulations and bye-laws to be laid before Parliament.—The Central Government shall](http://indiankanoon.org/doc/1214839/)** cause every regulation made under this Act and every bye-law made under section 388 to be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or bye-law or both Houses agree that the regulation or bye-law should not be made, the regulation or bye-law shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation or bye-law. **[390. Penalty for breaches of bye-laws.—(1) Any bye-law made under this Act may provide that a](http://indiankanoon.org/doc/1912164/)** contravention thereof shall be punishable— [(a) with fine which may extend to five hundred rupees; and](http://indiankanoon.org/doc/875837/) [(b) with fine which may extend to five hundred rupees and in the case of a continuing](http://indiankanoon.org/doc/194559/) contravention, with an additional fine which may extend to twenty rupees for every day during which such contravention continues after conviction for the first such contravention; [(c) with fine which may extend to twenty rupees for every day during which the contravention](http://indiankanoon.org/doc/1764600/) continues, after the receipt of a notice from the Chairperson or any municipal officer duly authorised in that behalf, by the person contravening the bye-law requiring such person to discontinue such contravention: Provided that a contravention of any bye-law relating to the road transport services may be punishable with imprisonment which may extend to three months, or with fine which may extend to fifteen hundred rupees, or with both. [(2) Any such bye-law may also provide that a person contravening the same shall be required to](http://indiankanoon.org/doc/916895/) remedy so far as lies in his power, the mischief, if any, caused by such contravention. **[391. Supplemental provisions respecting bye-laws.—(1) Any power to make bye-laws conferred](http://indiankanoon.org/doc/1969665/)** by this Act is conferred subject to the condition of the bye-laws being made after previous publication and in the case of such bye-laws being made by the Council of their not taking effect until they have been approved by the Government and published in the Official Gazette. [(2) The Government in approving a bye-law may make any change therein which appears to it to be](http://indiankanoon.org/doc/1529405/) necessary. [(3) The Government may, after previous publication of its intention, cancel any bye-law which it has](http://indiankanoon.org/doc/205137/) approved, and thereupon the bye-law shall cease to have effect. **[392. Bye-laws to be available for inspection and purchase.—(1) A copy of all bye-laws made](http://indiankanoon.org/doc/837786/)** under this Act shall be kept at the municipal office and shall, during office hours, be open free of charge to inspection by any inhabitant of New Delhi. [(2) Copies of all such bye-laws shall be kept at the municipal office and shall be sold to the public at](http://indiankanoon.org/doc/585337/) cost price either singly or in collections at the option of the purchaser. ----- CHAPTER XXII CONTROL **[393. Government to require production of documents.—The Central Government may at any time](http://indiankanoon.org/doc/1501620/)** require the Chairperson— [(a) to produce any record, correspondence, plan or other document in his possession or under his](http://indiankanoon.org/doc/523609/) control; [(b) to furnish any return, plan, estimate, statement, account or statistics relating to the](http://indiankanoon.org/doc/844802/) proceedings, duties or works of the Council; [(c) to furnish or obtain and furnish any report.](http://indiankanoon.org/doc/322988/) **[394. Inspection.—The Central Government may depute any person in the service of that Government](http://indiankanoon.org/doc/1596919/)** to inspect or examine any municipal department or office or any service or work undertaken by the Council or any property belonging to the Council and to report thereon and the Council, the Chairperson and all municipal officers and other municipal employees shall be bound to afford the person so deputed access at all reasonable time to the premises and properties of the Council and to all records, accounts and other documents the inspection of which he may consider necessary to enable him to discharge his duties. **[395. Directions by Central Government.—If, whether on receipt of a report or on receipt of any](http://indiankanoon.org/doc/1123018/)** information or report obtained under section 393 or section 394 or otherwise, the Central Government is of opinion,— [(a) that any duty imposed on the Council by or under this Act has not been performed or has been](http://indiankanoon.org/doc/1409620/) performed in an imperfect, insufficient or unsuitable manner; or [(b) that adequate financial provision has not been made for the performance of any such duty,](http://indiankanoon.org/doc/887912/) it may direct the Council within such period as it thinks fit, to make arrangements to its satisfaction for the proper performance of the duty, or as the case may be, to make financial provision, to its satisfaction for the performance of the duty and the Council shall comply with such direction: Provided that unless in the opinion of the Central Government the immediate execution of such order is necessary, it shall before making any direction under this section give the Council an opportunity of showing cause why such direction should not be made. **[396. Power to provide for enforcement of direction under section 395.—If, within the period fixed](http://indiankanoon.org/doc/1165158/)** by a direction made under section 395, any action the taking of which has been directed under that section has not been duly taken, the Central Government may make arrangements for the taking of such action and may direct that all expenses connected therewith shall be defrayed out of the New Delhi Municipal Fund. **[397. Power of Central Government to give directions in relation to primary schools, etc.—](http://indiankanoon.org/doc/165841/)** [(1) The Central Government may give the Council all such directions as it considers necessary in respect](http://indiankanoon.org/doc/475138/) of subjects, curricula, text books, standards and methods of teaching in primary schools vested in the Council or maintained wholly or partly by grants paid out of the New Delhi Municipal Fund and in respect of such other matters as that Government considers necessary and the Council shall comply with all such directions. [(2) It shall be lawful for any officer appointed by the Central Government in this behalf to inspect any](http://indiankanoon.org/doc/1630493/) such school; and all reasonable facilities shall be given to such officer in connection with the inspection. [(3) The Central Government, after considering the report of inspection made by such officer, may](http://indiankanoon.org/doc/1792214/) give the Council such directions as it considers necessary and the Council shall comply with such directions. **[398. Dissolution of the Council.—(1) If, in the opinion of the Central Government, the Council is](http://indiankanoon.org/doc/1817257/)** not competent to perform, or persistently makes default— [(a) in the performance of, the duties imposed on it by or under this Act or any other law, or](http://indiankanoon.org/doc/1753896/) exceeds or abuses its power; or [(b) fails to deliver efficient service to the public and generally in regard to the municipal](http://indiankanoon.org/doc/1772764/) administration; or ----- [(c) to comply with the directions given to the Council by the Central Government in regard to](http://indiankanoon.org/doc/919970/) matters relating to clauses (a) and (b), the Central Government may by an order published, together with a statement of the reasons therefor, in the Official Gazette, dissolve the Council: Provided that the Council shall be given reasonable opportunity of being heard before its dissolution. [(2) When the Council is dissolved by an order under sub-section (1)—](http://indiankanoon.org/doc/120832/) [(a) all members shall, on the date of dissolution, vacate their offices as such members;](http://indiankanoon.org/doc/1177753/) [(b) during the period of dissolution of the Council, all powers and duties conferred and imposed](http://indiankanoon.org/doc/393438/) upon the Council by or under this Act or any other law, shall be exercised and performed by such officer or authority as the Central Government may appoint in that behalf; and [(c) all property vested in the Council shall, until it is reconstituted, vest in the Central](http://indiankanoon.org/doc/240476/) Government. [(3) An order of dissolution made under this section together with a statement of the reasons therefor](http://indiankanoon.org/doc/577678/) shall be laid before each House of Parliament and the Legislative Assembly of the National Capital Territory of Delhi as soon as may be, after it has been made. CHAPTER XXIII MISCELLANEOUS **[399. Delegation of power by the Central Government.—The Central Government may, by](http://indiankanoon.org/doc/783128/)** notification in the Official Gazette, direct that any power exercisable by it under this Act shall, subject to such conditions, if any, as may be specified in the notification be exercisable by the Government or any of its officers or by the Chairperson or any other authority. **[400. Power to delegate functions of Chairperson.—The Chairperson may by order direct that any](http://indiankanoon.org/doc/1450101/)** power conferred or any duty imposed on him by or under this Act shall, in such circumstances and under such conditions, if any, as may be specified in the order, be exercised and performed also by any municipal officer or other municipal employee specified in the order. **[401. Validity of notices and other documents.—No notice, order, requisition, licence, permission in](http://indiankanoon.org/doc/1780061/)** writing or any other document issued under this Act shall be invalid merely by reason of defect of form. **[402. Admissibility of document or entry as evidence.—A copy of any receipt, application, plan,](http://indiankanoon.org/doc/1747054/)** notice, order or other document or of any entry in a register in the possession of the Council or the Chairperson shall, if duly certified by the legal keeper thereof or other person authorised by the Chairperson in this behalf, be admissible in evidence of the existence of the document or entry, and shall be admitted as evidence of the matters and transactions therein recorded in every case where, and to the same extent to which, the original document or entry would, if produced, have been admissible to prove such matters and transactions. **[403. Evidence of Municipal officer or employee.—No municipal officer or other municipal](http://indiankanoon.org/doc/1230290/)** employee shall, in any legal proceedings to which the Council is not a party, be required to produce any register or document the contents of which can be proved under section 402 by a certified copy, or to appear as a witness to prove any matter or transaction recorded therein save by order of the court made for special cause. **[404. Prohibition against obstruction of any municipal authority.—No person shall obstruct or](http://indiankanoon.org/doc/1068624/)** molest the Council or the Chairperson or the Vice-Chairperson or any member or any person employed by the Council or any person with whom the Chairperson has entered into a contract on behalf of the Council in the performance of their duty or of anything which they are empowered or required to do by virtue or in consequence of any provision of this Act or of any rule, regulation or bye-law made thereunder. **[405. Prohibition against removal of mark.—No person shall remove any mark set up for the](http://indiankanoon.org/doc/1800193/)** purpose of indicating any level or direction incidental to the execution of any work authorised by this Act or of any rule or bye-law made thereunder. **[406. Prohibition against removal or obliteration of notice.—No person shall, without authority in](http://indiankanoon.org/doc/1390162/)** that behalf, remove, destroy, deface or otherwise obliterate any notice exhibited by or under orders of the ----- Council or the Chairperson or any municipal officer or other municipal employee specified by the Chairperson in this behalf. **[407. Prohibition against unauthorised dealings with public place or materials.—No person shall,](http://indiankanoon.org/doc/1711460/)** without authority in that behalf, remove earth, sand or other material or deposit any matter or make any encroachment from, in or on any land vested in the Council or in any way obstruct the same. **[408. Liability of Chairperson, etc., for loss, waste or misapplication of New Delhi Municipal](http://indiankanoon.org/doc/1705267/)** **[Fund or property.—(1) Every member, Chairperson, and every municipal officer and other municipal](http://indiankanoon.org/doc/886608/)** employee shall be liable for the loss, waste, or misapplication of any money or other property owned by or vested in the Council, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct and a suit for compensation may be instituted against him by the Council with the previous sanction of the Central Government or by the Government. [(2) Every such suit shall be instituted within three years after the date on which the cause of action](http://indiankanoon.org/doc/805446/) arose. **[409. Members and municipal officers and employees to be public servants.—Every member, the](http://indiankanoon.org/doc/961782/)** Chairperson, and every municipal officer and other municipal employee shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860), and in the definition of “legal remuneration” in section 161 of that Code the word “Government” shall, for the purpose of this section, be deemed to include the Council. **[410. Annual administration report.—(1) As soon as may be after the first day of April in every](http://indiankanoon.org/doc/1207449/)** year and not later than such date as may be fixed by the Central Government in this behalf, the Council shall submit to that Government a detailed report of the municipal government of New Delhi during the preceding year in such form as that Government may direct. [(2) The Chairperson shall prepare such report and the Council shall consider it and forward the same](http://indiankanoon.org/doc/1905346/) to the Central Government with its resolution thereon, if any. [(3) Copies of the report shall be kept for sale at the municipal office.](http://indiankanoon.org/doc/1115565/) **[411. Other laws not to be disregarded.—Save as provided in this Act nothing contained in this Act](http://indiankanoon.org/doc/975437/)** shall be construed as authorising the disregard by the Council or the Chairperson or any municipal officer or other municipal employee of any laws for the time being in force. **[412. Exemption of diplomatic or consular missions from payment of tax, etc.—The Central](http://indiankanoon.org/doc/1663439/)** Government may, by order in the Official Gazette, exempt from the payment of any tax, rate, fee or other charge payable under the provisions of this Act, any diplomatic or consular mission of a foreign State or the High Commission of a Commonwealth country and any official of such mission or High Commission. **[413. Construction of references.—After the establishment of the Council any reference in any](http://indiankanoon.org/doc/806549/)** enactment, rule, bye-law, order, scheme, notification or other instrument having the force of law, to New Delhi Municipal Committee shall, unless the context or subject otherwise requires, be construed as a reference to the Council. **[414. Council to undertake work on agency basis.—Notwithstanding anything contained in any](http://indiankanoon.org/doc/1843512/)** other provision of this Act, the Council may on such terms and conditions as may be determined by agreement between the Council and any other authority, body or person, carry out any work which is not connected with its functions on agency basis. **[415. Power to remove difficulties.—If any difficulty arises in relation to the transition from the](http://indiankanoon.org/doc/1516975/)** provisions of any of the laws repealed by this Act, or in giving effect to the provisions of this Act, the Central Government may, by order as occasion requires, do anything which appears to it to be necessary for the purpose of removing the difficulty: Provided that no such order shall be made after the expiration of two years from the date of establishment of the Council. **[416. Repeal and savings.—(1) As from the date of the establishment of the Council, the Punjab](http://indiankanoon.org/doc/1572515/)** Municipal Act, 1911 (Punjab Act 3 of 1911), as applicable to New Delhi, shall cease to have effect within New Delhi. ----- [(2) Notwithstanding the provisions of sub-section (1) of this section,—](http://indiankanoon.org/doc/443285/) [(a) any appointment, notification, order, scheme, rule, form, notice or bye-law made or issued,](http://indiankanoon.org/doc/766685/) and any licence or permission granted under the Act referred to in sub-section (1) of this section and in force immediately before the establishment of the Council, shall, in so far as it is not inconsistent with the provisions of this Act continue in force and be deemed to have been made, issued or granted, under the provisions of this Act, unless and until it is superseded by any appointment, notification, order, scheme, rule, form, notice or bye-law made or issued or any licence or permission granted under the said provisions; [(b) all debts, obligations and liabilities incurred, all contracts entered into and all matters and](http://indiankanoon.org/doc/1044807/) things engaged to be done by, with or for the New Delhi Municipal Committee before the establishment of the Council shall be deemed to have been incurred, entered into or engaged to be done by, with or for the Council under this Act; [(c) all budget estimates, assessments, valuations, measurements or divisions made by the New](http://indiankanoon.org/doc/596311/) Delhi Municipal Committee shall in so far as they are not inconsistent with the provisions of this Act, continue in force and be deemed to have been made under the provisions of this Act unless and until they are superseded by any budget estimate, assessment, valuation, measurement or division made by the Council under the said provisions; [(d) all properties, movable and immovable and all interests of whatsoever nature and kind therein,](http://indiankanoon.org/doc/1075288/) vested in the New Delhi Municipal Committee immediately before the establishment of the Council shall with all rights of whatsoever description, use, enjoyed or possessed by New Delhi Municipal Committee vest in the Council; [(e) all rates, taxes, fees, rents and other sums of money due to the New Delhi Municipal](http://indiankanoon.org/doc/1689704/) Committee immediately before the establishment of the Council shall be deemed to be due to the Council; [(f) all rates, taxes, fees, rents, fares and other charges shall, until and unless they are varied by the](http://indiankanoon.org/doc/82569/) Council continue to be levied at the same rate at which they were being levied by the New Delhi Municipal Committee immediately before the commencement of this Act; [(g) all suits, prosecutions and other legal proceedings instituted or which might have been](http://indiankanoon.org/doc/1971762/) instituted by or against the New Delhi Municipal Committee may be continued or instituted by or against the Council. **[417. Expenditure in connection with the Council from the commencement of this Act to the](http://indiankanoon.org/doc/1437512/)** **[adoption of the budget by the Council.—(1) Any expenditure incurred during the period between the](http://indiankanoon.org/doc/1482794/)** commencement of this Act and establishment of the Council under any of the provisions of this Act shall be borne by the Central Government and the amount of the expenditure so incurred shall on such establishment be recoverable by that Government from out of the New Delhi Municipal Fund. [(2) If in respect of the period between the establishment of the Council and the adoption of the first](http://indiankanoon.org/doc/1325903/) budget by the Council further expenditure from the New Delhi Municipal Fund becomes necessary over and above the expenditure thereto authorised for that year by the sanctioned budget estimate, the Council shall adopt a supplementary statement showing the estimated amount of that expenditure. [(3) Every item of expenditure shown in the supplementary statements adopted by the Council shall be](http://indiankanoon.org/doc/939264/) deemed to be expenditure covered by a current budget-grant within the meaning of section 47. [(4) The supplementary statement shall be prepared, presented, and adopted in such manner and shall](http://indiankanoon.org/doc/1674909/) provide for such matter as may be determined by the Council. **[418. Transitory provision.—Notwithstanding anything contained in this Act, the Central](http://indiankanoon.org/doc/1261914/)** Government may, if necessary, appoint a person to be called the Special Officer, to exercise the powers and discharge the functions of the Council until the day on which the first meeting of the Council is held after the commencement of this Act. **[419. Repeal of Ordinance 8 of 1994.—(1) The New Delhi Municipal Council Ordinance, 1994](http://indiankanoon.org/doc/256822/)** (Ordinance 8 of 1994), is hereby repealed. [(2) Notwithstanding such repeal anything done or any action taken under the said Ordinance shall be](http://indiankanoon.org/doc/1954327/) deemed to have been done or taken under the corresponding provision of this Act. ----- THE FIRST SCHEDULE [See section 2(27)] BOUNDARIES OF NEW DELHI The area bounded by— The junction of the Pusa Road and Upper Ridge Road towards east along the New Link Road, the Panchkuian Road upto its junction with the Old Gurgaon Road; thence towards north-east along the Old Gurgaon Road and Chelmsford Road; upto the New Delhi Railway Station; thence towards south and south east along the railway line upto its junction with the Harding Bridge; thence towards south along the Mathura Road upto its junction with Lodi Road; thence towards south along the Lodi Road upto its junction with the first road leading to Lodi Colony; thence towards south along the first road leading to Lodi Colony upto its junction with the Ring Railway; thence towards west along the railway line upto its junction with Qutab Road; thence towards south along the Qutab Road upto to its junction with Kaushak Nulla; thence towards east along the Kaushak Nulla up to its junction with the Boundary of the Corporation; thence towards south and thence towards west along the boundary of the Corporation and along the south boundary of the Medical Enclave upto its junction with the Ring Road near Gwalior Potteries; thence towards north-west along the Ring Road upto its junction with Kitchner Road, thence towards north along the Upper Ridge Road up to the starting point. ___________ THE SECOND SCHEDULE (See section 82) RATES OF TAXES LEVIABLE ON VEHICLES AND ANIMALS Maximum amount of tax per annum for vehicles with pneumatic tyres. for vehicles without pneumatic tyres. Rs. Rs. 1. Each fourwheeled vehicle drawn by camels, horses, ponies, mules, donkeys bullocks or buffaloes— (a) Labour carts 12 24 (b) Other vehicles in this class 32 48 2. Each two wheeled vehicle drawn by camels, horses, ponies, mules donkeys, bullocks or buffaloes— (a) Labour carts 8 16 (b) Other vehicles in this class 16 24 3. Each vehicle drawn or impelled otherwise than by camels, horses, ponies, mules, donkeys, buffaloes or machinery. 8 12 Maximum amount of tax per annum 4. Each cycle rickshaw 6 5. Each bicycle 3 6. Each camel 10 7. Each horse, pony or mule of a height of 12 hand or upwards 20 8. Each horse, pony or mule of a height of less than 12 hands 10 9. Each bullock or buffalo kept for draught or pack purposes 8 10. Each donkey/ass kept for draught or pack purposes or for riding 6 11. Each pig 4 12. Each dog 5 13. Each she-buffalo kept for milking 50 14. Each cow kept for milking 30 ----- THE THIRD SCHEDULE (See section 86) THEATRE-TAX Type of entertainment Maximum amount of tax 1. Class I cinema theatre Rs. 10 per show. 2. Class II cinema theatre Rs. 7 per show. 3. Drama, concert, circus, variety entertainment or tamasha Rs. 7 per show. 4. Carnival or fete Rs. 10 per day. 5. Any other entertainment Rs. 7 per show or if there are no separate shows Rs. 7 per day. _Explanation.—For the purposes of this Schedule Class I cinema theatres and Class II cinema theatres_ mean theatres classified respectively as Class I cinema theatres and Class II cinema theatres by bye-laws made in this behalf. ______________ THE FOURTH SCHEDULE [See section 88(1)] TAX ON ADVERTISEMENTS OTHER THAN ADVERTISEMENTS PUBLISHED IN THE NEWSPAPERS S. No. Particulars Maximum amount of tax per annum Rs. 1. Non-illuminated advertisements on land, building, wall, hoardings, frame post, structures, etc.:— (a) For a space upto 10 sq. ft. 18 (b) For a space over 10 sq. ft. and upto 25 sq. ft. 30 (c) For every additional 25 sq. ft. or less 30 2. Non-illuminated advertisements carried on vehicles, drawn by bullocks, horses or other animal, human beings, cycle or any other device, carried on any vehicle or tramcar— (a) For space upto 50 sq. ft. 120 (b) For every additional 50 sq. ft. or less 120 3. Illuminated advertisement boards carried on vehicles— (a) For a space upto 50 sq. ft. 240 (b) For every additional 50 sq. ft. or less 240 4. Non-illuminated advertisement boards, carried by sandwich boardmen— (a) For each board not exceeding 10 sq. ft. 24 (b) For each board exceeding 10 sq. ft. and upto 35 sq. ft. 48 (c) For each additional 10 sq. ft. in area or less 24 ----- S. No. Particulars Maximum amount of tax per annum Rs. 5. Illuminated advertisement boards, carried by sandwich boardmen— (a) For each board not exceeding 10 sq. ft. 48 (b) For each board exceeding 10 sq. ft. and upto 25 sq. ft. 96 (c) For each additional 10 sq. ft. or less. 48 6. Illuminated advertisements on land, building, wall or hoarding, frame, post, structures, etc.— (a) For a space over 2 sq. ft. 24 (b) For a space over 2 sq. ft. and upto 5 sq. ft. 48 (c) For a space over 5 sq. ft. and upto 25 sq. ft. 60 (d) For every additional 25 sq. ft. or less. 60 7. Advertisements exhibited on screen in cinema houses and other public places by means of lantern slides or similar devices— (a) For a space upto 5 sq. ft. 96 (b) For a space over 5 sq. ft. and upto 25 sq. ft. 120 (c) For every additional 25 sq. ft. or less 120 8. Non-illuminated advertisements suspended across streets— (a) For a space upto 10 sq. ft. 18 (b) For a space over 10 sq. ft. and upto 25 sq. ft. 30 (c) For every additional 25 sq. ft. or less 30 N.B. The tax for item 8 will be in addition to the space will be chargeable according to the scale to be determined by the Chairperson. 9. Non-illuminated advertisements hoarding standing blank but bearing the name of the advertiser or with the announcement “To be let” displayed thereon— (a) For a space upto 10 sq. ft. 9 (b) For a space over 10 sq. ft. and upto 25 sq. ft. 15 (c) For every additional 25 sq. ft. or less 15 10. Permission to auctioneers to put up not more than two boards or reasonable size advertising each auction sale, other than those in premises where the auction is held, one on a prominent site in the locality and one on municipal lamp post. ________________ 200 including the rent for exhibiting the board on a municipal lamp post. ----- THE FIFTH SCHEDULE [See section 95(1)] TAX ON BUILDING APPLICATIONS S. No. Area For the first storey For the second storey or any subsequent storey Rs. Rs. per storey 1. For a ground area up to 100 sq. yds. 20 40 2. For a ground area of more than 100 sq. yds. but not exceeding 250 sq. yds. 3. For a ground area of more than 250 sq. yds. but not exceeding 500 sq. yds. 4. For a ground area of more than 500 sq. yds. but not exceeding 1,000 sq. yds. 60 120 150 300 300 600 5. For a ground area of more than 1,000 sq. yds. 600 1500 _N.B. 1.—For purposes of assessment and calculation of the tax, ground area shall mean the area of the_ portion which is proposed to be built upon including the internal courtyard. _N.B. 2.—For purposes of the above Schedule, the basement where provided will be regarded as the_ first storey, the ground floor over the basement as the second storey and so on. _N.B. 3.—In cases where an application is deemed to have been sanctioned under the provisions of_ section 282 the tax shall become payable in the same manner as in cases where an application is sanctioned. _N.B. 4.—In case an application is rejected 5 per cent. of the tax due shall be retained and the balance_ shall be refunded to the applicant, under the orders of the Chairperson. _____________ THE SIXTH SCHEDULE [See section 100(1)] NOTICE OF DEMAND To Shri/Shrimati residing at Please take notice that the Chairperson, New Delhi Municipal Council demands from the sum of Rs. due from on account of (here describe the property, occupation, circumstance or thing in respect of which the sum is payable) leviable under for the period of commencing on the day of 19 , and ending on the day of 19 , and that if, within thirty days from the service of this notice, the said sum is not paid to the Chairperson at or sufficient cause for non-payment is not shown to the satisfaction of the Chairperson a warrant of distress or attachment will be issued for the recovery of the same with costs. Dated this day of 19 (Signed) Chairperson New Delhi Municipal Council ----- THE SEVENTH SCHEDULE [See section 102(1)] FORM OF WARRANT (Here insert the name of the Officer charged with the execution of the warrant) WHEREAS A.B. of has not paid, and has not shown satisfactory cause for the non-payment of, the sum of due on account of (here describe the liability) for the period of commencing on the day of 19 , and ending with day of 19 , which sum is leviable under ; AND WHEREAS thirty days have elapsed since the service on him of notice of demand for the same. This is to direct you to distrain/attach the movable/immovable property (described below) of the said A.B. of a value approximately equal to the said sum of Rs. subject to the provisions of the New Delhi Municipal Council Act, 1994, and the bye-laws made thereunder and forthwith to certify to me, together with this warrant, all particulars of the property seized/attached by you thereunder. Dated this day of 19 (Signed) Chairperson New Delhi Municipal Council Description of immovable property. _______________ THE EIGHTH SCHEDULE [See section 103(2)] FORM OF INVENTORY OF PROPERTY DISTRAINED AND NOTICE OF SALE To Shri / Shrimati residing at . Please take notice that I have this day seized the property specified in the inventory annexed hereto for the value of due for the liability* (Here describe liability*) mentioned in the margin for the period commencing on the day of , 19 , and ending with the day of 19 , together with Rs. due for service of notice of demand, and that unless within ten days from the date of the service of this notice you pay to the Chairperson the said amount, together with the costs of recovery, the said property will be sold by public auction. Dated this day of , 19 (Signature of Officer executing the warrant) Inventory *Here state particulars of property seized. ----- THE NINTH SCHEDULE [See section 327(1)] PURPOSES FOR WHICH PREMISES MAY NOT BE USED WITHOUT A LICENCE Carrying out any of the following trades or operations connected with trades:— 1. Baking 2. Cinematograph films, Shooting of— 3. Cinematograph films by any process whatsoever. Treating of— 4. Chillies or masala or corn or seeds. Grinding of by mechanical means— 5. Cloth, yarn or leather in indigo or in other colours. Dyeing or printing of— 6. Cloth or yarn Bleaching— 7. Eating house or a catering establishment. Keeping of an— 8. Grain. Parching— 9. Ground-nut-seeds, tamarind seeds or any other seeds. Parching— 10. Hair dressing saloon or a barber's shop. Keeping of a— 11. Hides or skins, whether raw or dried. Tanning, pressing or packing— 12. Laundry shop. Keeping a— 13. Leather goods. Manufacturing of by mechanical means— 14. Litho press. Keeping a— 15. Lodging house. Keeping of a— 16. Metal. Casting— 17. Precious metals. Refining of or recovering of them from embroideries— 18. Printing press. Keeping a— 19. Sweetmeat shop except in premises already licensed as an eating house. Keeping— 20. Carrying on the trade or business of or any operation connected with the trade of— _(i)_ Autocar or autocycle servicing or repairing. _(ii)_ Blacksmithy. _(iii)_ Coppersmithy. _(iv)_ Electroplating. _(v)_ Glass beveling. _(vi)_ Glass cutting. _(vii)_ Glass polishing. _(viii)_ Goldsmithy. _(ix)_ Marble cutting, grinding, dressing or polishing. _(x)_ Metal (ferrous or non-ferrous or antimony but excluding previous metal) cutting or treating metal by hammering, drilling, pressing, filling, polishing, heating or by any other process whatever or assembling parts of metal. _(xi)_ Photography-studio. _(xii)_ Radio (wireless receiving set) selling, repairing, servicing or manufacturing. _(xiii)_ Silversmithy. _(xiv)_ Spinning or weaving cotton, silk, art silk, or jute or wool with the aid of power. _(xv)_ Stone grinding, cutting, dressing or polishing. _(xvi)_ Timber or wood sawing or cutting by mechanical or electrical power. _(xvii)_ Tinsmithy. _(xviii)_ Washerman‟s trade. _(xix)_ Welding or metal by electric, gas or any process whatsoever. 21. Manufacturing, parching, packing, pressing, cleaning, cleansing, boiling, melting, grinding or preparing by any process whatever any of the following articles— _(i)_ Aerated waters. _(ii)_ Bakelite goods. _(iii)_ Bidis (indigenous cigarettes), snuff, cigars or cigarettes. _(iv)_ Bitumen. _(v)_ Blasting powder. _(vi)_ Bones. ----- _(vii)_ Bricks or tiles by hand power. _(viii)_ Bricks or tiles by mechanical power. _(ix)_ Brushes. _(x)_ Candles. _(xi)_ Catgut. _(xii)_ Celluloid or celluloid goods. _(xiii)_ Cement concrete designs or models. _(xiv)_ Charcoal. _(xv)_ Chemicals. _(xvi)_ Cinematograph films stripping in connection with any trade. _(xvii)_ Cosmetics or toilet goods. _(xviii)_ Cotton, cotton refuse, cotton waste, cotton yarn, silk, silk yarn, silk inclusive of waste yarn, art silk, art silk waste, art silk yarn, wool or woollen refuse or waste. _(xix)_ Cotton seeds. _(xx)_ Dammar. _(xxi)_ Dynamite. _(xxii)_ Fat. _(xxiii)_ Fireworks. _(xxiv)_ Flax. _(xxv)_ Ink for printing, writing, stamping, etc. _(xxvi)_ Gas. _(xxvii)_ Ghee. _(xxviii)_ Glass or glass articles. _(xxix)_ Gunpowder. _(xxx)_ Hemp. _(xxxi)_ Ice (including dry ice). _(xxxii)_ Insecticide or disinfectants. _(xxxiii)_ Leather cloth or rexine cloth or water proof cloth. _(xxxiv)_ Lime. _(xxxv)_ Linseed oil. _(xxxvi)_ Matches for lighting (including Bengal matches). _(xxxvii)_ Mattresses and pillows. _(xxxviii)_ Offal. _(xxxix)_ Oil-cloth. _(xl)_ Oil other than petroleum (either by mechanical power or by hand power or ghani driven by bullock or any other animal). _(xli)_ Pharmaceutical or medical products. _(xlii)_ Rubbers or rubber goods. _(xliii)_ Paints. _(xliv)_ Paper or cardboard. _(xlv)_ Pickers from hides. _(xlvi)_ Pitch. _(xlvii)_ Plastic goods. _(xlviii)_ Pottery by hand power. _(xlix)_ Pottery by mechanical or any power other than hand power. _(l)_ Sanitary-ware or china-ware. _(li)_ Soap. _(lii)_ Sugar. _(liii)_ Sweetmeat and confectionery goods. _(liv)_ Tallow. _(lv)_ Tar. _(lvi)_ Varnishes. _(lvii)_ Wooden furniture, boxes, barrels, khokas, or other articles of wood or of plywood or sandalwood. ----- PART II ARTICLES WHICH MAY NOT BE STORED IN ANY PREMISES WITHOUT A LICENCE 1. Asafoetida. 2. Ashses. 3. Bamboos. 4. Bidi leaves. 5. Blasting powder. 6. Blood. 7. Bones, bone meal or bone powder. 8. Champhor. 9. Carbide of calcium. 10. Cardboard. 11. Celluloid or celluloid goods. 12. Charcoal. 13. Chemicals, liquid. 14. Chemicals, non-liquid. 15. Chillies. 16. Chlorate mixture. 17. Cinematograph films-non-inflammable or accetate or safety base. 18. Cloth in pressed bales or boras. 19. Cloth or clothes of cotton, wool silk, art silk, etc. 20. Coal. 21. Coconut fibre. 22. Coke. 23. Compound gas, such as oxygen gas, hydrogen gas, nitrogen gas, carbon dioxide gas, sulphur dioxide gas, chlorine gas, acetylene gas, etc. 24. Copra. 25. Cotton including Kahok, surgical cotton and silky cotton. 26. Cotton refuse or waste or cotton yarn refuse or waste. 27. Cotton seed. 28. Detonators. 29. Dry leaves. 30. Dynamite. 31. Explosive paint such as nitro-cellulose paint, lacquer paint, enamel paint, etc. 32. Fat. 33. Felt. 34. Fines. 35. Firewood. 36. Fireworks. 37. Fish (dried). 38. Flax. 39. Fulminate. 40. Fulminate of mercury. 41. Fulminate of silver. 42. Gelatine. 43. Gelignite. 44. Grass. 45. Gun-cotton. 46. Gunpowder. 47. Gunny Bags. 48. Hair. 49. Hay or fodder. 50. Hemp. 51. Hessain cloth (gunny-bag cloth). 52. Hides (dried). 53. Hides (raw). ----- 54. Hoofs. 55. Horns. 56. Incense or esas. 57. Jute. 58. Khokas, boxes barrels, furniture or any other article of wood. 59. Lacquer. 60. Lether. 61. Matches for lighting (including Bengal matches). 62. Methylated spirit, denatured spirit or French polish. 63. Netro-cellulose. 64. Netro-compound. 65. Netro-glycerine. 66. Netro-mixture. 67. Offal. 68. Oil, other than petroleum. 69. Oilseeds including almonds, but excluding cotton seeds. 70. Old paper or waste paper including old newspaper, periodicals, magazines, etc. 71. Packing stuff (paper cuttings, husk, saw dust, etc.). 72. Paints. 73. Paper other than old paper in pressed bales or loose or in reams. 74. Petroleum, other than dangerous petroleum, as defined in the Petroleum Act, 1934. 75. Phosphorus. 76. Plastic or plastic goods. 77. Plywood. 78. Rags, including small pieces or cuttings of cloth, hessian cloth, gunny-bag cloth, silk, art silk or woollen cloth. 79. Rosin or dammar Battar otherwise known as Ral. 80. Safety fuses, fog signals, cartridges, etc. 81. Saltpetre. 82. Sandalwood. 83. Silk waste, or silk yarn waste, art silk waste, or art silk yarn waste. 84. Sisal fibre. 85. Skins (raw or dried). 86. Straw. 87. Sulphur. 88. Tallow. 89. Tar, pitch, dammar or bitumen. 90. Tarpauline. 91. Thinner. 92. Timber. 93. Turpentine. 94. Varnish. 95. Wool (raw). 96. Yarn other than waste yarn. ----- THE TENTH SCHEDULE [See section 369 (1)] PENALTIES _Explanation.—The entries in the second column of the following table headed “Subject” are not_ intended as definitions of the offences prescribed in the provisions mentioned in the first column or even as abstracts of those provisions, but are inserted merely as reference to the subject thereof:— **Table** Section, sub-section, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed 1 2 3 4 Rs. Rs. Section 74, sub-sections (1) and (2) Section 74, sub-section (3) Failure to give notice of transfer or devolution of land or building 50 **—** Failure to produce instrument of transfer 50 **—** Section 75 Failure to give notice of erection of new building, etc. Section 76 Failure to give notice of demolition or removal of building Section 77 Failure to comply with requisition to furnish information, etc. 50 **—** 50 **—** 50 **—** Section 81, sub-section (2) Wilful delay or obstruction of valuers 50 **—** Section 89 Prohibition of advertisement without permission Section 114 Failure to give notice of vacant land or building Section 119, sub-section (2) Non-compliance with the requisition of attendance before the Chairperson 200 5 50 5 50 **—** Section 122 Failure to disclose liability 100 **—** Section 148 Use for non-domestic purposes of water supplied for domestic purposes Section 152, sub-section (1) Non-compliance with the requisition to take water supply 100 5 200 20 200 20 Section 153 Prohibition to occupy new premises without arrangement for water supply Section 164 Waste or misuse of water 50 **—** Section 165 Refusal of admittance, etc. 100 **—** Section 168, sub-section (1) Laying of water pipes, etc., in a position where pipes may be injured or water therein polluted 100 10 ----- Section, sub-section, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed 1 2 3 4 Section 168, sub-section (2) Construction of latrines, etc., in a position where pipes may be injured or water therein polluted Section 173 Injury to, or interference with free flow of contents of municipal drain of drains communicating with municipal drain Section 174, sub-section (2) Private drain not to be connected with municipal drain without notice 100 **—** 50 **—** 50 **—** 100 25 Section 175 Non-compliance with requisition for drainage of undrained premises Section 176 Erection of new premises without drain 1000 **—** Section 177 Non-compliance with requisition of maintenance of drainage works for any group or block of premises Section 178 Non-compliance with directions to close or limit the use of private drains in certain cases Section 179 Non-compliance with Chairperson‟s orders regarding the use of a drain by a person other than the owner thereof Section 180 Non-compliance with requisition for keeping sewage and rain water drains distinct Section 181 Non-compliance with requisition for the pavement of courtyard, etc. Section 183 Connection with municipal water works or drains without written permission Section 186, sub-section (4) Section 193, sub-section (1) Section 193, sub-section (2) Section 193, sub-section (6) Section 193, sub-section (8) Non-compliance with requisition to close, remove or divert a pipe or drain Execution of work by a person other than a licensed plumber Failure to furnish when required, name of licensed plumber employed Licensed plumbers not to demand more than the charges prescribed Licensed plumbers not to contravene byelaws or execute work carelessly or negligently, etc. Section 194 Prohibition of wilful or neglectful acts relating to water or sewage works Section 209, sub-section (3) Construction of building within the regular line of street without permission 50 5 50 5 50 **—** 50 **—** 50 **—** 200 50 50 5 200 **—** 100 **—** 100 **—** 100 **—** 100 **—** 1000 10 ----- Section, sub-section, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed 1 2 3 4 Section 211 Failure to comply with requisition to set back buildings to regular line of street Section 214 Failure to comply with requisition to set forward buildings to regular line of street 200 50 200 10 Section 217, sub-sections (5) Section 218, sub-section (1), clauses (a) and (b) Section 219, sub-section (1) Section 221, sub-section (1) Section 221, sub-section (2) Section 222, sub-section (2) Utilising, selling or otherwise dealing with any land or laying out a private street otherwise than in conformity with orders of the Council Failure to comply with requisition to show cause for alteration of street or for a appearance before the Chairperson Failure to comply with requisition on owner of private street or owner of adjoining land or building to level, etc., such street Failure to comply with requisition to remove projections from streets Failure to comply with requisition to remove a verandah, balcony, etc., put up in accordance with section 221(1) Rigorous imprisonment which may extend to three years **—** 50 5 100 10 Prohibition of projections upon streets, etc. 200 **—** Section 223 Failure to comply with requisition to have ground floor doors, etc., so altered as not to open outwards Section 224, sub-section (1) Erection, etc., of structures of fixtures which cause obstruction in streets 200 **—** 200 **—** 50 **—** 200 10 Section 225 Deposit, etc., of things in streets 100 **—** Section 227, sub-sections (1) and (2) Section 228, sub-section (4) Section 229, sub-section (1) Section 231, sub-section (2) Section 232, sub-section (1) Section 234, sub-section (1) Tethering of animals and milking of cattle in public streets Unlawful removal of bar or shorting timber, etc., or removal or extinction of light Streets not to be opened or broken and building materials not to be deposited thereon without permission Name of street and number of house not to be destroyed or defaced, etc. Failure to comply with requisition to repair, protect or enclose a dangerous place 100 5 50 **—** 200 10 50 **—** 100 25 Removal, etc., of lamps 100 **—** ----- Section, sub-section, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed 1 2 3 4 Section 234, sub-section (2) Section 237, sub-section (1) Section 237, sub-section (2) Section 238, sub-section (1) Section 239, sub-section (1) Section 242, sub-section (4) Wilfully and negligently extinguishing lights in public streets, etc. Erection of a building without the sanction of the Chairperson Use of inflammable materials without permission Failure to give notice of intention to erect a building Failure to give notice of intention to make additions, etc., to buildings Simple imprisonment which may extend to six months or with fine which may extend to Rs. 5000 or with both Simple imprisonment which may extend to six months or with fine which may extend to Rs. 5000 or with both 50 **—** Simple imprisonment which may extend to six months or with fine which may extend to Rs. 5000 or with both **—** 100 **—** **—** **—** Commencement to work without notice, etc. 10000 500 Section 244 Failure to comply with requisition to round off buildings at corners of streets Section 245, sub-section (1) Section 245, sub-section (1) Erection of buildings on new streets without levelling Erection of buildings or execution of work within regular line of street or in contravention of any scheme or plan 100 5 1000 **—** 1000 **—** Section 247 Failure to demolish buildings erected without sanction or erection of buildings in contravention of order Simple imprisonment which may extend to six months or with fine which may extend to Rs. 5000 or with both **—** ----- Section, sub-section, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed 1 2 3 4 Section 248 Erection of buildings in contravention of conditions of sanction, etc. Simple imprisonment which may extend to six months or with fine which may extend to Rs. 5000 or with both **—** **—** Section 249 Failure to carry out a alterations Simple imprisonment which may extend to six months or with fine which may extend to Rs. 5000 or with both Section 251, sub-sections (1) and (2) Non-compliance with provision as to completion certificates, occupation or use, etc., without permission 200 10 Section 252 Non-compliance with restrictions on user of buildings Simple imprisonment which may extend to six months or with fine which may extend to Rs. 5000 or with both **—** Section 258, sub-sections (1) and (2) Section 259, sub-section (1) Failure to comply with requisition to remove structures which are in ruins or likely to fall Failure to comply with requisition to vacate buildings in dangerous conditions, etc. Section 264 Failure to provide for collection, removal and deposit of refuse and provision of receptacles Section 265, sub-section (1) Section 265, sub-section (3) Failure to collect and remove filth and polluted matter Scavenger‟s duties in certain cases not to be discharged by any person without permission Section 266 Failure to comply with requisition for removal of rubbish, etc., from premises used as market, etc. Section 267, sub-section (1) Section 267, sub-section (2) Section 267, sub-section (3) Keeping rubbish and filth for more than twenty-four hours, etc. 500 20 200 **—** 50 **—** 50 **—** 25 **—** 100 **—** 50 10 Allowing filth to flow in streets 50 **—** Depositing rubbish or filth, etc., in street, etc. 50 **—** ----- Section, sub-section, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed 1 2 3 4 Section 271, sub-section (1) Section 272, sub-section (1) Section 272, sub-section (3) Latrines and urinals not to be constructed without permission or in contravention of terms prescribed Failure to provide buildings newly erected or re-erected with latrine, urinal and other accommodation Failure to provide residential buildings composed of separate tenements with latrine, bathing or washing place for servants on the ground floor Section 273 Failure to provide latrines for premises used by large number of people and to keep them clean and in proper order Section 274 Failure to comply with requisition to provide latrines for market, cattle shed, cart stand, etc., and to keep them clean and in proper order Section 275, clauses (a), (b), (c) and (d) Section 276, sub-section (2) Failure to comply with requisition to enforce provision of latrine or urinal accommodation, etc. Failure to comply with requisition for removal of congested buildings Section 277 Failure to comply with requisition to improve buildings unfit for human habitation Section 279, sub-sections (1), (2), (3) and (4) Failure to comply with order of demolition of buildings unfit for human habitation 200 **—** 500 **—** 500 **—** 100 20 100 20 100 10 1000 **—** 1000 **—** 1000 **—** 100 15 Section 280 Failure to comply with requisition of the Chairperson to remove insanitary huts and sheds, etc. Section 281, sub-section (1) Prohibition against washing by washerman 25 **—** Section 282 Failure to give information of dangerous disease Section 284 Failure to comply with requisition to cleanse and disinfect buildings or articles Section 285 Failure to comply with requisition to destroy infectious huts or sheds Section 286 Washing of clothing, bedding, etc., at any place not notified by the Chairperson 100 **—** 50 **—** 50 **—** 25 **—** ----- Section, sub-section, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed 1 2 3 4 Section 288, sub-section (1) Section 288, sub-section (2) Section 289, sub-sections (1), (2) and (3) Sending infected clothes to washerman or laundry Failure to furnish address of washerman or laundry to which clothes have been sent Use of public conveyances by persons suffering from a dangerous disease, etc. 25 **—** 25 **—** 50 **—** 100 **—** 50 **—** 50 **—** 50 **—** 50 **—** 100 **—** 50 **—** Section 291 Failure to disinfect buildings before letting the same Section 292 Disposal of infected articles without disinfection Section 293 Making or selling of food, etc., or washing of clothes by infected persons Section 294 Sale of food or drink in contravention of restriction or prohibition of Chairperson Section 295 Removal or use of water from wells and tanks in contravention of prohibition of Chairperson Section 296 Exposure of persons to risk of infection by the presence or conduct of a person suffering from a dangerous disease, etc. Section 297 Removal of infectious corpses in contravention of the provisions of the section Section 298, sub-sections (1) and (2) Absence of sweepers, etc., from duty without notice Imprisonment which may extend to one month **—** Section 299 A sweeper employed for doing house scavenging not to discontinue work without notice Section 300 Failure to supply information by persons incharge of burning or burial grounds Section 301 Use of new burning or burial ground without permission Section 302, sub-section (1) Section 302, sub-section (2) Failure to comply with requisition to close a burning or burial ground Burning or burial of corpses in a burning or burial ground after it has been closed Section 303 Removal of corpses by other than prescribed routes Section 304, clause (b) Failure to give notice for removal of carcasses of dead animals 10 **—** 50 **—** 50 **—** 50 **—** 50 **—** 25 **—** 10 **—** ----- Section, sub-section, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed 1 2 3 4 Section 307, sub-sections (1) and (2) Section 308, sub-sections (1), (2) and (3) Failure to give information of births and deaths 50 **—** Commission of nuisances 50 **—** Section 309 Failure to comply with requisition for removal or abatement of nuisance Section 310, sub-section (4) Section 310, sub-section (5) Dogs not to be at large in a street without being secured by a chain lead Ferocious dogs at large without being muzzled, etc. 500 25 50 **—** 100 **—** 50 **—** Section 311 Staking inflammable material in contravention of prohibition Section 312 Setting a naked light 50 **—** Section 313 Discharging fireworks, firearms, etc., likely to cause danger Section 314 Failure to comply with requisition to render buildings, wells, etc., safe Section 315 Failure to comply with requisition to enclose land used for improper purposes Section 317, sub-section (1) Section 318, sub-sections (1) and (2) Section 318, sub-section (2) proviso (a) Sale in municipal markets without permission Use of places as private markets without a licence and use of places other than a municipal slaughter house as slaughter houses Non-compliance with conditions imposed by Chairperson 50 **—** 50 **—** 50 **—** 200 **—** 500 25 50 **—** Section 320 Keeping market open without licence, etc. 2000 **—** Section 321 Sale in unlicensed market 50 **—** Section 322 Carrying on business or trade near a market 50 **—** Section 324 Failure of person in charge of markets to expel lepers and disturbers from the market Section 325 Carrying on butcher‟s, fishmonger‟s or poluterer‟s trade without licence, etc. Section 326 Establishment of factory, etc., without permission 50 **—** 100 10 5000 50 ----- Section, sub-section, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed 1 2 3 4 Section 327 Certain things not to be kept and certain trades and operations not to be carried on without a licence Section 328, sub-section (3) Section 329, sub-section (5) Keeping, abandonment or tethering of animals, etc. Use of premises in contravention of declaration Section 330 Hawking articles for sale without a licence, etc. Section 331 Keeping a lodging house, eating house, tea shop, etc., without licence or contrary to licence Section 332 Keeping open theatre, circus or other place of public amusement without licence or contrary to terms of licence Section 339, sub-section (5) Failure to produce licence or written permission Section 340 Preventing the Chairperson or any person authorised in this behalf from exercising his powers of entry, etc. Section 341 Preventing the Chairperson or any person authorised in this behalf from exercising his power of entry upon any adjoining land Section 346 Obstruction or molestation in execution of work Section 353, sub-section (4) Section 364, sub-section (3) Failure to comply with requisition to state the name and address of owner of premises Failure of occupier of land or building to afford owner facilities for complying with provisions of the Act, etc., after eight days from issue of order by district judge 1000 100 100 **—** 500 **—** 100 **—** 100 **—** 500 50 50 5 50 **—** 50 **—** 200 **—** 50 **—** 200 50 Section 404 Obstruction of Chairperson or a member, etc. 200 **—** Section 405 Removal of any mark set up for indicating level, etc. Section 406 Removal, etc., of notice exhibited by or under orders of the Council, Chairperson, etc. Section 407 Unlawful removal of earth, sand or other material or deposit of any matter or making of any encroachment from any land vested in the Council. 100 **—** 50 **—** 50 **—** -----
22-Jul-1994
45
The Punjab Municipal Corporation Law (Extension to Chandigarh) Act, 1994
https://www.indiacode.nic.in/bitstream/123456789/1926/1/A1994-45.pdf
central
# THE PUNJAB MUNICIPAL CORPORATION LAW (EXTENSION TO CHANDIGARH) ACT, 1994 __________ ARRANGEMENT OF SECTIONS ___________ SECTIONS 1. Short title and commencement. 2. Extension and amendments of Punjab Act 42 of 1976. 3. Repeal of Punjab Act III of 1911 and savings. 4. Transitory provision. 5. Repeal of Ordinance 7 of 1994 and saving. THE SCHEDULE. 1 ----- # THE PUNJAB MUNICIPAL CORPORATION LAW (EXTENSION TO CHANDIGARH) ACT, 1994 ACT NO. 45 OF 1994 [22nd July, 1994.] # An Act to provide for the extension of the Punjab Municipal Corporation Act, 1976 to the Union territory of Chandigarh. BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:― **1. Short title and commencement.―(1) This Act may be called the Punjab Municipal Corporation** Law (Extension to Chandigarh) Act, 1994. (2) It shall be deemed to have come into force on the 24th day of May, 1994. **2. Extension and amendments of Punjab Act 42 of 1976.–(1) The Punjab Municipal Corporation** Act, 1976 is hereby extended to, and shall be in force in, the Union territory of Chandigarh. (2) With effect from the commencement of this Act,― (a) the references, in the Punjab Municipal Corporation Act, 1976 (Pun. Act 42 of 1976), to State, authorities, or City mentioned in column 1 of Part I of the Schedule annexed to this Act shall be construed as if references therein to State, authorities, or City respectively mentioned or referred to opposite thereto in column 2 of that Part; (b) the Punjab Municipal Corporation Act, 1976 (Pun. Act 42 of 1976) shall be amended as specified in Part II of the Schedule. **3. Repeal of Punjab Act III of 1911 and savings.―(1) The Punjab Municipal Act, 1911 in so far as** it applies to the Union territory of Chandigarh or any part thereof shall stand repealed on the coming into force of this Act: Provided that the repeal shall not affect― (a) the previous operation of the Punjab Municipal Act, 1911 (Pun. Act III of 1911) so repealed or anything duly done or suffered thereunder, or (b) any right, privilege, obligation or liability acquired, accrued or incurred under the said Act so repealed, or (c) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation or liability as aforesaid, and any such investigation, legal proceeding or remedy may be instituted, continued or enforced as if this Act had not been passed: Provided further that, subject to the preceding proviso, anything done or any action taken (including any appointment or delegation made, notification, instruction or direction issued, form or bye-law framed, certificate obtained, permit or licence granted or registration effected) under such Act shall be deemed to have been done or taken under the corresponding provisions of the Act now extended to that Union territory, and shall continue to be in force accordingly unless and until superseded by anything done or any action taken under the said Act. (2) In every law or notification passed or issued before the commencement of this Act in which reference is made to or to any Chapter or section or provision of the said Act hereby repealed, such references shall, so far as may be practicable, be taken to be made to the said Act or, their corresponding Chapter or section. 2 ----- **4. Transitory provision.―Notwithstanding anything contained in this Act, the Central Government** may, if necessary, appoint a person to be called the Special Officer, to exercise the powers and discharge the functions of the Municipal Corporation of Chandigarh until the day on which the first meeting of the Corporation is held after the commencement of this Act. **5. Repeal of Ordinance 7 of 1994 and saving.―(1) The Punjab Municipal Corporation Law** (Extension to Chandigarh) Ordinance, 1994 is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed shall be deemed to have been done or taken under the corresponding provisions of this Act. 3 ----- THE SCHEDULE (See section 2) THE PUNJAB MUNICIPAL CORPORATION ACT, 1976 (PUNJAB ACT 42 OF 1976) PART I References Constructions 1 2 1. Punjab State 2. State of Punjab 3. Whole of Punjab State 4. Whole of the State of Punjab 5. Punjab where it refers to the State of Punjab 6. Punjab Government 7. Government of Punjab 8. Government of the State of Punjab 9. State Government 10. The Government of Punjab 11. Government 12. Divisional Commissioner 13. Director 14. Associate councillor 15. City Section 2,― (a) for clause (1), substitute― Union territory of Chandigarh Administrator prescribed authority Councillor Chandigarh. PART II ‗(1) ―Administrator‖ means the administrator of the Union territory of Chandigarh appointed by the President under article 239 of the Constitution; (1A) ―backward classes‖ means any of the backward classes specified from time to time by the Administrator and whose names are published in the Official Gazette;‘; (b) omit clause (6); (c) after clause (7), insert― ‗(7A) ―Corporation‖ means the Municipal Corporation of Chandigarh constituted under this Act;‘; 4 ----- (d) after clause (8), insert― ‗(8A) ―councillor‖, in relation to the Corporation, means a person elected or nominated under sub-section (3) of section 4;‘; (e) for clause (10), substitute― ‗(10)―district‖ means district of Chandigarh covering the entire area of the Union territory of Chandigarh; (10A) ―District Planning Committee‖ means a Committee constituted under article 243ZD of the Constitution;‘; (f) omit clause (12); (g) after clause (14), insert― ‗(14A) ―Election Commission‖ means the Election Commission of the Union territory of Chandigarh referred to in section 10;‘; (h) after clause (17), insert― ‗(17A) ―Finance Commission‖ means the Finance Commission of the Union territory of Chandigarh referred to in section 84A;‘; (i) for clause (23), substitute― ‗(23) ―licensed architect‖, ―licensed engineer‖ and ―licensed plumber‖ mean respectively a person registered and licensed as architect, engineer and plumber under section 16 of the Capital of Punjab (Development and Regulation) Act, 1952 (Punjab Act XXVII of 1952);‘; (j) after clause (26), insert― ‗(26A) ―Municipality‖ means an institution of self-government constituted under article 243Q of the Constitution; (26B) ―Municipal area‖ means the territorial area of the Municipality as is notified by the Administrator under section 3 of the Act;‘; (k) after clause (36), insert― ‗(36A) ―population‖ means the population as ascertained at the last preceding census of which the relevant figures have been published;‘; (l) after clause (37), insert― ‗(37A) ―prescribed authority‖ means such authority or officer as the Administrator may, from time to time, by order to be published in the Official Gazette, prescribe: Provided that the Administrator may prescribe different authorities or officers for different provisions of this Act;‘; (m) for clause (43), substitute― ‗(43) ―public street‖ means any street or the soil below the surface thereof which is specifically vested in the Corporation by an order of the Administrator issued in this behalf;‘; (n) for clause (51), substitute― ‗(51) ―rural areas‖ means the areas of the Union territory of Chandigarh which are not urban areas;‘; 5 ----- (o) for clause (52), substitute― ‗(52) ―Scheduled Caste‖ means any of the Scheduled Castes specified in Part II of the Schedule to the Constitution (Scheduled Castes) (Union territories) Order, 1951;‘; (p) for clause (60), substitute― ‗(60) ―urban areas‖ means such areas as the Administrator, may, having regard to the population of the area, density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify to be urban area by notification in the Official Gazette;‘. After section 2, insert― ―2A. The application of certain definitions of the Capital of Punjab (Development and **Regulation) Act, 1952.―The words used and not defined in this Act but defined in the Capital of** Punjab (Development and Regulation) Act, 1952 (Punjab Act XXVII of 1952) shall have the meanings respectively assigned to them in that Act.‖. For section 3, substitute― ―3. Declaration of area to be municipal area.―(1) For the purposes of this Act, the Administrator shall, by notification, specify such territorial area of the Union territory of Chandigarh to be the Municipal area of the Municipal Corporation of Chandigarh. (2) The Administrator may, from time to time, after consultation with the Corporation, by notification, alter the limit specified under sub-section (1) so as to include therein or to exclude therefrom such area as may be specified in the notification. The Corporation shall send its views to the Administrator within a period of three months of the date on which it is first consulted. (3) The power to issue a notification under sub-section (2) shall be subject to the condition of previous publication. (4) When the limits specified under sub-section (1) are altered so as to include therein any area, this Act and, except as the Administrator may otherwise by notification direct, all rules, notifications, bye-laws, orders, directions and powers made, issued or conferred and all taxes and fees imposed under this Act and in force throughout the area specified under sub-section (1) shall apply to such included area.‖. Section 4,― (a) for sub-section (1), substitute― ―(1) For the purposes of carrying out the provisions of this Act, there shall be a corporation charged with the municipal government, to be known as the Municipal Corporation of Chandigarh.‖; (b) in sub-section (2), for ―Every‖, substitute ―The‖; (c) for sub-section (3), substitute― ―(3) The Corporation shall be composed of the following members, namely:― (i) members to be directly elected, representing wards; (ii) nine members with voting rights to be nominated by the Administrator, from amongst the persons who are eminent or distinguished in public affairs or those who have special knowledge or practical experience in respect of [1][municipal administration; and] 1. Subs. by Act 50 of 2000, s. 2, for ―municipal administration‖ (w.e.f. 11-12-2000). 6 ----- 1[(iii) the member of House of the People representing the constituency which comprises wholly or partly, the municipal area, with the right to vote.] Section 5.―In sub-section (2),― (i) in the first proviso, for ―forty and more than fifty‖, substitute ―twenty‖; (ii) omit second proviso. For section 6, substitute― ―6. Reservation of seats for women, Scheduled Castes and backward classes.―(1) Seats shall be reserved for women belonging to the Scheduled Castes, from amongst the seats reserved under sub-section (4) of section 5 for the Scheduled Castes, the number of such seats being determined by the Administrator by an order published in the Official Gazette, which shall not be less than one-third of the total number of seats reserved for the Scheduled Castes. (2) Seats shall be reserved for women, the number of such seats being determined by an order published in the Official Gazette by the Administrator which shall not be less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes) of the total number of seats to be filled up by direct election: Provided that the seats reserved for the Scheduled Castes or for women (including those belonging to the Scheduled Castes) shall be allotted by rotation to different wards in such a manner as the Administrator may, by order published in the official Gazette in this behalf, determine. (3) The reservation of seats under sub-section (4) of section 5 and under sub-section (1) of this section shall cease to have effect on the expiration of the period specified in article 334 of the Constitution. (4) The Administrator may, if he considers it necessary, by an order published in the Official Gazette, direct that such number of seats as may be specified in the order shall be reserved in favour of backward classes of citizens: Provided that, when a backward class is deleted by an order of the Administrator, the member elected from such class shall not cease to hold office merely as a result of such deletion and shall hold office as he would have held had the deletion not been made.‖. For section 7, substitute― ―7. Duration of the Corporation.―(1) The Corporation, unless sooner dissolved under section 407, shall continue for five years from the date appointed for its first meeting and no longer. (2) An election to constitute the Corporation shall be completed– (a) before the expiry of its duration specified in sub-section (1); (b) before the expiration of a period of six months from the date of its dissolution: Provided that where the reminder of the period for which the dissolved Corporation would have continued is less than six months, it shall not be necessary to hold any election under this sub-section for constituting the Corporation for such period. (3) The Corporation constituted upon its dissolution before the expiration of its duration shall continue only for the reminder of the period for which the dissolved Corporation would have continued under sub-section (1) had it not been so dissolved.‖. 1. Ins. by Act 50 of 2000, s. 2 (w.e.f. 11-12-2000). 7 ----- Section 8.―For sub-section (2), substitute― ―(2) The Administrator shall, by an order in the Official Gazette, determining,― (a) the number of wards; and (b) extent of each ward. (3) The Election Commission shall, by an order in the Official Gazette, determine the wards in which seats shall be reserved for the Scheduled Castes, for women and the manner in which seats shall be rotated under the proviso to sub-section (2) of section 6.‖. For section 10, substitute― ―10. Elections to the Corporation.―(1) The superintendence, direction and control of preparation of the electoral rolls for, and the conduct of all elections to the Corporation shall be vested in the Election Commission appointed under section 7 of the Delhi Municipal Corporation Act, 1957 (66 of 1957), and the Election Commission so appointed under that section shall be responsible for the functions conferred on the Election Commission under this sub-section. (2) The Administrator shall, when so requested by the Election Commission, make available to that Commission such staff which the Administrator considers necessary for the discharge of the functions conferred on the Commission by sub-section (1).‖. Section 12.―In clause (a), for ―twenty-five years‖, substitute ―twenty-one years‖. Section 13,― (i) in sub-section (1), after clause (1), insert― ―(m) if he is so disqualified by or under any law for the time being in force for the purposes of elections to the House of the People: Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has attained the age of twenty-one years; (n) if he is so disqualified by or under any law made by Parliament.‖; (ii) in sub-section (2), after clause (c), insert― ―(d) a person shall not be disqualified for being nominated as a member of the Corporation on the ground that he holds office of profit for the purposes of election to the House of the People under any law for the time being in force.‖. After section 13, insert― ―13A. Decisions on questions as to disqualification of members.―(1) If any question arises as to whether a member has become subject to any disqualifications mentioned in section 13, the question shall be referred for the decision of the Administrator and his decision shall be final.‖. Section 15,― (i) omit sub-section (2); (ii) in sub-section (3), for ―Director‖, substitute ―Administrator‖. Section 16,― (i) in sub-section (1), for ―Director‖, substitute ―Administrator‖; (ii) in the proviso to sub-section (1), for ―four‖, substitute ―six‖; (iii) in sub-section (2),― (a) in the opening portion, for ―Scheduled Castes‖, substitute ―Scheduled Castes, backward classes or for the women, as the case may be,‖; 8 ----- (b) after the words ―Scheduled Castes‖ occurring at the end, add ―backward classes or be a woman‖. Section 17,― (a) omit ―or co-opted‖ and ―or co-option‖; (b) for ―Director‖, substitute ―Election Commision‖. Section 35.―In sub-section (1), omit ―other than an associated councillor‖. After section 35, insert― ―35A. Vacation of seats in case of multiple membership.―No councillor shall be a member both of the Corporation and Parliament and if a person is so chosen, then at the expiration of fourteen days from the date of the publication in the Gazette of India, or as the case may be, in the Official Gazette whichever is later, that he has been so chosen, that person‘s seat in Parliament shall become vacant unless he has previously resigned his seat in the Corporation.‖. Section 36.―For sub-section (1), substitute― ―(1) If a councillor becomes subject to any of the disqualifications mentioned in section 13, his seat shall thereupon become vacant. (1A) If during three successive months, a councillor is, without permission of the Corporation, absent from all meetings thereof, the Corporation may declare his seat vacant.‖. Section 38,― (a) for sub-sections (1), (2) and (2A), substitute― ―(1) The Corporation shall, at its first meeting in each year, elect one of its elected members to be the Chairperson to be known as the Mayor and the other two such members to be the Senior Deputy Mayor and the Deputy Mayor of the Corporation: Provided that during the duration of the Corporation, the office of the Mayor shall be reserved in favour of a member who is a woman for the first and the fourth year of the Corporation and in favour of a member belonging to a Scheduled Caste in the third year of the Corporation.‖; (b) after sub-section (3), insert― ―(3A) If the vacancy be a casual vacancy in the office of the Mayor and is reserved for a woman or for a member belonging to the Scheduled Caste, the vacancy shall be filled by electing one of the councillors from amongst women or members of the Scheduled Castes, as the case may be.‖; (c) for sub-section (6), substitute― (6) The Mayor may obtain reports from the Commissioner on any matter connected with the municipal government of Chandigarh.‖. After section 41, insert― ―41A. Wards Committees.―(1) There shall be constituted such number of Wards Committees consisting of one or more wards, within the territorial area of the Corporation, as the Administrator may, from time to time, by order published in the Official Gazette, determine. The order shall indicate the name of the Wards Committee and also the extent of the area comprised within the jurisdiction of such Committee. (2) Each Wards Committee shall consist of― (a) all the councillors, elected from the wards in the territorial jurisdiction of the Committee; 9 ----- (b) the person, if any, nominated by the Administrator, under clause (ii) of sub-section (3) of section 4 if his name is registered as an elector within the territorial limits of the Committee; (c) such number of persons, as may be prescribed, to be nominated by the Administrator. **41B. Chairperson of Wards Committee.―(1) The Wards Committee shall, at its first meeting** in each year, elect one of its members who is a councillor to be Chairperson: Provided that where a Wards Committee consists of one ward only, the councillor representing that ward in the Corporation shall be the Chairperson of that Committee. (2) The Chairperson of the Wards Committee shall hold office from the date of his election until the election of his successor in office unless in the meantime, he resigns his office as Chairperson. (3) On the occurrence of any casual vacancy in the office of the Chairperson, the Wards Committee shall, within one month of occurrence of such a vacancy, elect one of its members who is a councillor as Chairperson: Provided that where a vacancy has arisen on the resignation or death of the only councillor on the Committee, the Administrator may appoint any other councillor as Chairperson of the Ward Committee till election is held to fill the vacancy in due course. **41C. Resignation of Chairperson and members of Wards Committee.―(1) Any member of** the Wards Committee, may resign his office by writing under his hand addressed to the Chairperson and delivered to the Commissioner; and the Chairperson may resign his office by writing under his hand addressed to the Mayor and delivered to the Commissioner. (2) A resignation under sub-section (1) shall take effect from the date specified for the purpose in writing referred to in that sub-section, or if no such date is specified, from the date of its receipt by the Chairperson or the Commissioner, whichever is later. **41D. Functions of Wards Committee.―(1) Subject to the provisions of this Act, a Wards** Committee shall exercise the powers and perform the functions as may be determined from time to time by the Corporation by resolution. (2) When any question arises as to whether any matter falls within the purview of the Wards Committee or the Corporation, it shall be referred to the Corporation and its decision thereon shall be final. **41E. Special Committees.―(1) The Administrator may, by order published in the Official** Gazette, constitute one or more Special Committees in addition to Wards Committees and the Committees referred to in section 42, as he thinks fit for the exercise of any power or discharge of any function which the Corporation, may, by resolution, delegate to them or for inquiring into, reporting or advising upon any matter which the Corporation may refer to them. (2) Any such Committee may consist of one or more councillors and such other persons having special knowledge or practical experience as the Administrator may nominate representing various interests which he may think fit, such as industry, commerce, labour, literature, science, art and social services. **41F. Constitution of District Planning Committees.―(1) There shall be constituted in the** district, a District Planning Committee to consolidate the plans prepared by the Corporation and the Panchayats in the District, and to prepare a draft development plan for the district as a whole. (2) The manner in which the seats in the District Planning Committee constituted under sub-section (1) shall be filled, the functions which may be assigned to such Committee and the manner in which the Chairperson of such Committee shall be chosen, shall be as prescribed by the Government, subject, however, to the provisions of article 243ZD of the Constitution. 10 ----- (3) In preparing the draft development plan of the district, the District Planning Committee shall have regard to― (i) the matter of common interest between the Panchayats and Municipalities in the district including spatial planning, sharing of water and other physical and natural resources, the integrated development of infrastructure and environment conservation; and (ii) the extent and type of available resources whether financial or otherwise. (4) While preparing the draft development plan of the district, the District Planning Committee shall consult such institutions and organizations as the Government may, by order, specify. (5) The Chairperson of District Planning Committee shall forward the draft development plan as recommended by such Committee to the Government. (6) Any matter relating to a Committee constituted under section 41A or this section, not expressly provided in this Act, the same may be provided in the rules made in this behalf.‖. Section 42,― (a) omit sub-sections (1), (2), (4) and proviso to sub-section (5); (b) in sub-section (3), omit ―a Building and‖. Section 44,― (a) in clause (q), add at the end ―except such important parks and stadia as may be specified by the Administrator by an order issued in this behalf‖; (b) after clause (t), insert― ―(tt) the preparation of plans for economic development and social justice;‖. Section 45.―In the opening portion, for ―The Corporation‖, substitute― ―Subject to any general or special orders of the Administrator from time to time, the Corporation‖. Section 47,― (i) for sub-section (1), substitute― ―(1) The Administrator shall, by notification in the Official Gazette, appoint a suitable officer as the Commissioner of the Corporation. (1A) The reporting authority on the work and conduct of the Commissioner shall be the Adviser to the Administrator and reviewing and accepting authority shall be the Administrator.‖; (ii) after second proviso to sub-section (2), add― ―Provided also that where the Commissioner holds a lien on any service under any Government, the Administrator may at any time replace his services at the disposal of that Government.‖; (iii) in sub-section (3),― (a) omit clause (a); (b) omit ―by giving a notice of at least one month to the Corporation‖. Section 50.―Omit ―for a term not exceeding two months‖. Sections 65 and 66.―Omit ―ad hoc‖ wherever it occurs. 11 ----- For section 71, substitute― **“71. Appointment of certain officers.―(1) The Administrator shall appoint suitable officers to** be respectively, the Municipal Engineer, the Municipal Health Officer, the Municipal Chief Accountant, the Municipal Secretary and the Municipal Chief Auditor and may appoint one or more Assistant Commissioners and such other officer or officers of a status equivalent to or higher than the status of any of the officers specified earlier in this sub-section as the Administrator may deem fit on such monthly salaries and allowances, if any, as may be fixed by the Administrator. (2) The Municipal Chief Auditor shall not be eligible for any office under the Corporation after he has ceased to hold his office. **71A. Schedule of permanent posts and creation of temporary posts.―(1) The Commissioner** shall, from time to time, prepare and lay before the Corporation two Schedules of posts other than those specified in section 71 setting forth the designations and grades of municipal officers and other municipal employees who should be maintained permanently in the service of the Corporation indicating therein the salaries, fees and allowances which are proposed to be paid to such officers and other employees. (2) Of the two Schedules referred to in sub-section (1), the first Schedule shall deal with category ‗A‘ posts and the Second Schedule with other posts. (3) The Corporation may sanction the two Schedules either without modifications or with such modifications as it thinks fit and thereafter may amend them if it thinks it necessary. Such sanction or amendment shall be subject to the approval of the Administrator. (4) The Commissioner may create for a period not exceeding six months any group ‗B‘, ‗C‘ and ‗D‘ posts. **71B. Power to make appointments.―(1) Subject to the provisions of section 71, the power of** appointing municipal officers and other municipal employees whether temporarily or permanent shall vest in the Commissioner. (2) The claims of the members of the Scheduled Castes and backward classes of citizens shall be taken into consideration consistently with the maintenance of efficiency of administration, in the making of appointment of municipal officers and other municipal employees. **71C. Recruitment.―(1) Notwithstanding anything contained in section 71B, the direct** recruitment to various posts may be made by the Administrator through such agencies as may be prescribed by him.‖. Section 75.―In clause (b), for ―sub-section (7) of section 71‖, substitute― ―the Schedules referred to in section 71A‖. After section 84, insert― ―84A. The Finance Commission.―(1) The Finance Commission constituted under section 107A of the Delhi Municipal Corporation Act, 1957 (66 of 1957) shall also be responsible, for the purposes of this Act, to review the financial position of the Corporation and to make recommendations to the Administrator as to― (a) the principles which should govern,― (i) the determination of taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Corporation; (ii) the grant-in-aid to the Corporation from the Consolidated Fund of India; (b) the measures needed to improve the financial position of the Corporation; 12 ----- (c) any other matter referred to the Finance Commission by the Administrator in the interest of sound functioning of the Corporation. (2) The Commission shall determine their procedure and shall have such powers in the performance of their functions as may be prescribed. (3) The Administrator shall cause every recommendation made by the Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before each House of Parliament.‖. Section 87,― (a) in sub-section (3), in clause (b), in the proviso, for ―five hundred rupees‖, substitute ―ten thousand rupees‖; (b) in sub-section (4), for ―five thousand rupees‖, substitute ―one lakh rupees‖. Section 90,― 1[(a) in sub-section (1),— (i) clauses (b) and (c) shall be omitted; (ii) in clause (e), the word ―and‖ occurring at the end, shall be omitted; (iii) after clause (f), the following clause shall be inserted, namely:— ―(g) a tax on entertainments and amusements.‖ ]; 2[(b) in sub-section (6),— (i) after the words and figures ―Punjab Motor Vehicles Taxation Act, 1924, the words ―as applicable to the Union territory of Chandigarh‖, shall be inserted; (ii) clauses (d) and (e) shall be omitted.]. Omit sections 113 to 117 (both inclusive). After section 126, insert― ―126A. Prior approval of the Chief Administrator.―Notwithstanding anything contained in sections 122 to 125, every permission given by the Commissioner shall be subject to the prior approval of the Chief Administrator appointed under clause (e) of section 2 of the Capital of Punjab (Development and Regulation) Act, 1952, (Punjab Act XXVII of 1952) and subject to such conditions as the Chief Administrator may impose in this behalf.‖. Omit section 127 Section 152.―In the proviso to sub-section (1), for ―one thousand rupees‖, substitute ―ten thousand rupees‖. Section 174.―Omit clause (c). Section 225.―Omit sub-section (2). Omit sections 226 to 275 (both inclusive). Omit sections 286 to 312 (both inclusive). Omit sections 343 to 346 (both inclusive). 1. Subs. by Act 31 of 2017, s. 2, for clause (a) (w.e.f. 1-7-2017). 2. Subs. by s. 2, ibid., for clause (b) (w.e.f. 1-7-2017). 13 ----- Section 397.―For sub-section (2), substitute― ―(2) Every rule, regulation or bye-law made under this Act shall be laid as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, regulation or bye-law or both the Houses agree that the rule, bye-law or regulation should not be made, the rule, bye-law or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule, regulation or bye-law.‖. Section 399.―In sub-section (1), omit Parts B, C and D. For section 407, substitute― **“407. Dissolution of Corporation.―(1) If, in the opinion of the Government, the Corporation is** not competent to perform its duties or persistently makes default in the performance of duties imposed on it by or under this Act or any other law for the time being in force or exceeds or abuses any of its powers, the Government may, by an order published, alongwith the reasons therefor, in the Official Gazette, dissolve such Corporation: Provided that the Corporation shall be given a reasonable opportunity of being heard before its dissolution. (2) When the Corporation is dissolved under sub-section (1),― (i) all Councillors of the Corporation shall vacate their offices forthwith; (ii) all powers and duties of the Corporation during its dissolution shall be exercised and performed by such persons or authority as the Government may, by notification, appoint in this behalf; and (iii) all property in possession of the Corporation shall be held by the Government. (3) Upon dissolution of the Corporation under sub-section (1), the Government shall reconstitute the Corporation as specified under sub-section (1) of section 4, and election to reconstitute such Corporation shall be completed before the expiration of a period of six months from the date of dissolution: Provided that where the remainder of the period for which the dissolved Corporation would have continued, is less than six months, it shall not be necessary to hold any election under this sub-section for reconstituting the Corporation for such period. (4) The Corporation reconstituted upon the dissolution of the existing Corporation before the expiration of its duration, shall continue only for the remainder of the period for which the dissolved Corporation would have continued under section 7 had it not been so dissolved.‖. After section 407, insert― ―407A. Appointment of a person to carry out the work of Corporation in certain **cases.―(1) All powers and duties of the Corporation may, till it remains dissolved and is** reconstituted shall be exercised and performed by such persons or authority as the Government may appoint in this behalf. (2) All properties vested in the Corporation shall till the Corporation remains dissolved and is reconstituted shall vest in and devolve upon the Government.‖. 14 ----- After section 424, insert― **“424A. Application of the Capital of Punjab (Development and Regulation) Act, 1952 and** **the Punjab New Capital (Periphery) Control Act, 1952.―Notwithstanding anything contained in** this Act, the provisions of the Capital of Punjab (Development and Regulation) Act, 1952 (Punjab Act XXVII of 1952) and of the Punjab New Capital (Periphery) Control Act, 1952 (Punjab Act 1 of 1952) and the rules, regulations, bye-laws, notifications, orders, scheme, form or notice, made thereunder shall continue to be applicable in relation to the development and regulation of the Union territory of Chandigarh as immediately before the commencement of the Punjab Municipal Corporation Law (Extension to Chandigarh) Act, 1994.‖. After section 428, insert― ‗428A. Special provision as to transferred functions.―(1) In this section ―transferred functions‖ means such functions of the administration which on the commencement of the Punjab Municipal Corporation Law (Extension to Chandigarh) Act, 1994, become the functions of the Corporation. (2) On and from the commencement of the Punjab Municipal Corporation Law (Extension to Chandigarh) Act, 1994,― (a) all stores, articles and other movable properties belonging to the administration immediately before the specified date and utilised for or in connection with the transferred functions shall pass to and vest in the Corporation; (b) all appointments, notifications, orders, schemes, rules, forms, notices or bye-laws made or issued or any licence or permission granted by the administration immediately before such specified date in connection with the transferred functions shall continue in force and be deemed to have been made, issued or granted by the Corporation unless and until they are superseded by any appointment, notification, order, scheme, rule, form, notice or bye-law made or issued or any licence or permission granted by the Corporation; (c) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the administration immediately before such specified date for or in connection with the transferred functions shall be deemed to have been incurred, entered into, engaged to be done by, with or for, the Corporation; (d) all assessments, valuations, measurements or divisions made by the administration immediately before such commencement or in connection with the transferred functions shall continue in force and be deemed to have been made by the Corporation unless and until they are superseded by any assessment, valuation, measurement or division made by the Corporation; (e) all rates, taxes, fees, rents and other sums of money due to the administration in relation to the transferred functions immediately before such commencement shall be deemed to be due to the Corporation; (f) all rates, fees, rents and other charges leviable in, or in relation to, the transferred functions shall, unless and until they are carried by the Corporation continue to be levied at the same rate at which they are being levied by the administration immediately before such commencement; (g) all suits and transactions and other legal proceedings instituted or which might have been instituted by or against the administration immediately before such commencement for any matter in relation to the transferred functions may be continued or instituted by or against the Corporation; (h) every officer and other employee serving under the administration immediately before such commencement in connection with the transferred functions shall be transferred to and 15 ----- become an officer or other employee of the Corporation with such designation as the Corporation may determine and hold office by the same tenure and at the same remuneration and on the same terms and conditions of service as he would have held the same if the Corporation had not been established and shall continue to do so unless and until such tenure, remuneration and terms and conditions are duly altered by the Corporation: Provided that the tenure, remuneration and terms and conditions of service of any such officer or other employee shall not be altered to the disadvantage without the previous sanction of the Administrator: Provided further that the Corporation may employ any such officer or employee in the discharge of such functions as it may think proper and every such officer or other employee shall discharge those functions accordingly. (3) As soon as may be after the commencement of the Punjab Municipal Corporation Law (Extension to Chandigarh) Act, 1994, the Administrator shall decide,― (a) which stores, articles and other movable properties referred to in clause (a) of sub-section (2) have been utilised by the administration for or in connection with the transferred functions; (b) which debts, obligations, liabilities, contracts, matters and things referred to in clause (c) of the said sub-section have been incurred, entered into, or engaged to be done by, with or for the administration or in connection with the transferred functions; (c) which officers and other employees referred to in clause (h) of that sub-section served under the administration in connection with the transferred functions.‘. Omit section 431. Omit Schedule I. Third Schedule.―Omit ―sections 258, 259 (1), 260 (1), 263 (4), 265, 266 (1) and (2), 268, 269, 270, 271, 272 (1) and (2), 273 (1), (2) and (3) and section 274 (1), and the entries there against in the second, third and fourth columns‖. AMENDMENT OF THE CAPITAL OF PUNJAB (DEVELOPMENT AND REGULATION) ACT, 1952 (PUNJAB ACT No. XXVII OF 1952) For section 7A, substitute― **“7A. Power to apply certain provisions of Punjab Act 42 of 1976 to Chandigarh.―(1) The** Chief Administrator may, from time to time by notification in the Official Gazette, and with the previous approval of the Administrator of the Union territory of Chandigarh, apply to Chandigarh or any part thereof with such adaptations and modifications not affecting the substance as may be specified in the notification, all or any of the provisions of the Punjab Municipal Corporation Act, 1976 (Punjab Act 42 of 1976), in so far as such provisions are applicable to Chandigarh. (2) While exercising the powers or performing the functions under the provisions of the Punjab Municipal Corporation Act, 1976 (Punjab Act 42 of 1976) applied to Chandigarh by a notification under sub-section (1), the Chief Administrator shall be subject to the control of the Administrator and not to that of the Commissioner or Deputy Commissioner. (3) Notwithstanding the substitution of section 7A of the Capital of Punjab (Development and Regulation) Act, 1952 (hereinafter referred to as substituted section) the substituted section shall not― 16 ----- (a) affect the previous operation of the substituted section or anything duly done or suffered thereunder; or (b) affect any right, privilege, obligation or liability acquired accured or incurred under the substituted section; or (c) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against substituted section; affect any investigation, legal proceedings or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid and any such investigation, legal proceedings or remedy may be instituted, continued or enforced, and any such privilege, forfeiture or punishment may be imposed as if this substitution has not been made.‖. 17 -----
12-Sep-1994
55
The Airports Authority of India Act, 1994
https://www.indiacode.nic.in/bitstream/123456789/1979/1/AAairpoert1994__55.pdf
central
# THE AIRPORTS AUTHORITY OF INDIA ACT, 1994 _______ ARRANGEMENT OF SECTIONS Last updated: 9-9-2021 CHAPTER I PRELIMINARY SECTIONS 1. Short title, commencement and application. 2. Definitions. CHAPTER II THE AIRPORTS AUTHORITY OF INDIA 3. Constitution and incorporation of the Authority. 4. Disqualification for office of member. 5. Term of office and conditions of service of members. 6. Vacation of office of member. 7. Eligibility of member for re-appointment. 8. Meetings. 9. Vacancies, etc., not to invalidate proceedings of the Authority. 10. Appointment of officers and other employees of the Authority. 11. Authority to act on business principles. CHAPTER III FUNCTIONS OF THE AUTHORITY 12. Functions of the Authority. 12A. Lease by the Authority. CHAPTER IV PROPERTY AND CONTRACT 13. Undertakings of the International Airports Authority and the National Airports Authority to vest in the Authority. 14. General effect of vesting of undertaking in the Authority. 15. Licences, etc., to be deemed to have been granted to the Authority. 16. Tax exemption or benefit to continue to have effect. 17. Guarantee to be operative. 18. Provisions in respect of officers and other employees of the International Airports Authority and the National Airports Authority. 19. Compulsory acquisition of land for the Authority. 20. Contracts by the Authority. 21. Mode of executing contracts on behalf of the Authority. CHAPTER V FINANCE, ACCOUNTS AND AUDIT 22. Power of the Authority to charge, fees, rent, etc. 22A. Power of Authority to levy development fees at airports. 1 ----- SECTIONS 23. Additional capital and grant to the Authority by the Central Government. 24. Fund of the Authority and its investment. 25. Allocation of surplus funds. 26. Submission of programme of activities and financial estimates. 27. Borrowing powers of the Authority. 28. Accounts and audit. CHAPTER VA EVICTION OF UNAUTHORISED OCCUPANTS, ETC., OF AIRPORT PREMISES 28A. Definitions. 28B. Appointment of eviction officers. 28C. Issue of notice to show cause against order of eviction. 28D. Eviction of unauthorised occupants. 28E. Disposal of property left on airport premises by unauthorised occupants. 28F. Power to remove unauthorised constructions, etc. 28G. Power to require payment of rent or damages in respect of airport premises. 28H. Powers of eviction officers. 28-I. [Omitted.] 28J. [Omitted.] 28JA. [Omitted.] 28K. Appeals to Tribunal. 28L. [Omitted.] 28M. Finality of orders. 28N. Offences under this Chapter. 28-O. Offences by companies. 28P. Congizance of offences. 28Q. Power to obtain information. 28R. Officers, etc., to aid and assist. CHAPTER VI MISCELLANEOUS 29. Submission of annual report. 30. Delegation. 31. Authentication of orders and other instruments of the Authority. 32. Officers and employees of the Authority to be public servants. 33. Protection of action taken in good faith. 34. Custody and disposal of lost property. 35. Provisions relating to income-tax. 36. Power of the Authority to undertake certain works. 37. Power to issue directions. 38. Power of the Central Government to temporarily divest the Authority of the management of any airport. 39. Power of the Central Government to supersede the Authority. 40. Power of the Central Government to issue directions. 41. Power to make rules. 42. Power to make regulations. 43. Rules and regulations to be laid before Parliament. 44. Power to remove difficulties. 45. [Repealed.] 46. Repeal and saving. 2 ----- # THE AIRPORTS AUTHORITY OF INDIA ACT, 1994 ACT NO. 55 OF 1994 [12th September, 1994.] # An Act to provide for the constitution of the Airports Authority of India and for the transfer and vesting of the undertakings of the International Airports Authority of India and the National Airports Authority to and in the Airports Authority of India so constituted for the better administration and cohesive management of airports and civil enclaves whereat air transport services are operated or are intended to be operated and of all aeronautical communication stations [1][for the purposes of establishing or assisting in the establishment of airports] and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, commencement and application.—(1) This Act may be called the Airports Authority** of India Act, 1994. (2) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. (3) It applies to— (a) all airports whereat air transport services are operated or are intended to be operated, other than airports and airfields belonging to, or subject to the control of, any armed force of the Union; 3[(aa) all private airports insofar as it relates to providing air traffic service, to issue directions under section 37 to them and for the purposes of Chapter VA;] (b) all civil enclaves; (c) all aeronautical communication stations; and (d) all training stations, establishments and workshops relating to air transport services. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “aeronautical communication station” means a station in the aeronautical communication service which includes aeronautical practising service, aeronautical fixed service, aeronautical mobile service and aeronautical radio communication service; (b) “airport” means a landing and taking off area for aircrafts, usually with runways and aircraft maintenance and passenger facilities and includes aerodrome as defined in clause (2) of section 2 of the Aircraft Act, 1934 (22 of 1934); (c) “airstrip” means an area used or intended to be used for the landing and take-off of aircrafts with short take-off and landing characteristics and includes all buildings and structures thereon or appertaining thereto; (d) “air traffic service” includes flight information service, alerting service, air traffic advisory service, air traffic control service, area control service, approach control service and airport control service; (e) “air transport service” means any service, for any kind of remuneration, whatsoever, for the transport by air of persons, mail or any other thing, animate or inanimate, whether such service relates to a single flight or series of flights; 1. Ins. by Act of 43 of 2003, s. 2 (w.e.f. 1-7-2004). 2.1st April, 1995, _vide notification No. S.O. 285(E), dated 30th March, 1995,_ _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). 3. Ins. by Act 43 of 2003, s. 3 (w.e.f. 1-7-2004). 3 ----- (f) “appointed day” means such date as the Central Government may, by notification in the Official Gazette, appoint for the purposes of section 3; (g) “Authority” means the Airports Authority of India constituted under section 3; (h) “Chairperson” means the Chairperson of the Authority appointed under clause (a) of sub-section (3) of section 3; (i) “civil enclave” means the area, if any, allotted at an airport belonging to any armed force of the Union, for use by persons availing of any air transport services from such airport or for the handling of baggage or cargo by such service, and includes land comprising of any building and structure on such area; (j) “heliport” means an area, either at ground level or elevated on a structure, used or intended to be used for the landing and take-off helicopters and includes any area for parking helicopters and all buildings and structures thereon or appertaining thereto; (k) “International Airports Authority” means the International Airports Authority of India constituted under section 3 of the International Airports Authority Act, 1971 (43 of 1971); (l) “member” means a member of the Authority and includes the Chairperson, but does not include, for the purposes of sections 4, 5, 6 and 7, an ex officio member referred to in clause (b) of sub-section (3) of section 3; (m) “National Airports Authority” means the National Airports Authority constituted under section 3 of the National Airports Authority Act, 1985 (64 of 1985); (n) “prescribed” means prescribed by rules made under this Act; [1][(nn) ‘private airport’ means an airport owned, developed or managed by— (i) any person or agency other than the Authority or any State Government, or (ii) any person or agency jointly with the Authority or any State Government or both where the share of such person or agency, as the case may be, in the assets of the private airport is more than fifty per cent.] (o) “regulations” means regulations made under this Act. CHAPTER II THE AIRPORTS AUTHORITY OF INDIA **3. Constitution and incorporation of the Authority.—(1) With effect from the appointed day, the** Central Government shall, by notification in the Official Gazette, constitute an Authority to be called the Airports Authority of India. (2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property both movable and immovable, and to contract and shall by the said name sue and be sued. (3) The Authority shall consist of— (a) a Chairperson to be appointed by the Central Government; (b) the Director General of Civil Aviation, or an officer not below the rank of the Deputy Director General of Civil Aviation, to be appointed by the Central Government, ex officio; (c) not less than eight and not more than fourteen members to be appointed by the Central Government. (4) The Chairperson shall be a whole-time member and other members referred to in clause (c) of sub-section (3) may be appointed as whole-time or part-time members as the Central Government may think fit. 1. Ins. by Act of 43 of 2003, s. 4 (w.e.f. 1-7-2004). 4 ----- (5) The Chairperson and the members referred to in clause (c) of sub-section (3) shall be chosen from among persons who have special knowledge and experience in air transport of any other transport services, industry, commercial or financial matters or administration and from among persons who are capable of representing organisations of workers and consumers. **4. Disqualification for office of member.—A person shall be disqualified for being appointed as a** member if he— (a) has been convicted and sentenced to imprisonment for an offence, which, in the opinion of the Central Government, involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or (d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e) has in the opinion of the Central Government such financial or other interest in the Authority as is likely to affect prejudicially the discharge by him of his functions as a member. **5. Term of office and conditions of service of members.—(1) Subject to the provisions of** section 6,— (i) every whole-time member (other than the ex officio member) shall hold office for a period of five years from the date on which he assumes office or till he attains the age of sixty years, whichever is earlier, and (ii) every part-time member (other than the ex officio member) shall hold office for a period of three years from the date on which he assumes office: Provided that the Central Government may— (a) terminate the appointment of any whole-time member, who is not a servant of the Government, after giving him notice for a period of not less than three months or, in lieu thereof, on payment of an amount equal to his salary and allowances, if any, for a period of three months; (b) terminate the appointment of any part-time member who is not a servant of the Government after giving him notice for such period as may be prescribed; and (c) terminate at any time the appointment of any member who is a servant of the Government. (2) The other conditions of service of the members shall be such as may be prescribed. (3) Any member may resign his office by giving notice in writing for such period as may be prescribed, to the Central Government and, on such resignation being notified in the Official Gazette by the Government, such member shall be deemed to have vacated his office. **6. Vacation of office of member.—The Central Government shall remove a member if he—** (a) becomes subject to any of the disqualifications mentioned in section 4: Provided that no member shall be removed on the ground that he has become subject to the disqualification mentioned in clause (e) of that section, unless he has been given a reasonable opportunity of being heard in the matter; or (b) refuses to act or becomes incapable of acting; or (c) is, without obtaining leave of absence from the Authority, absent from three consecutive meetings of the Authority; or (d) in the opinion of the Central Government, has so abused his position as to render his continuance in office detrimental to the public interest: Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter. 5 ----- **7. Eligibility of member for re-appointment.—Any person ceasing to be a member shall, unless** disqualified under section 4, be eligible for re-appointment. **8. Meetings.—(1) The Authority shall meet at such times and places, and shall observe such rules of** procedure in regard to the transaction of the business at its meetings (including the quorum at such meetings) as may be provided by regulations. (2) The Chairperson, or, if for any reason he is unable to attend any meeting of the Authority, any other member chosen by the members present at the meeting shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of the votes of the members present and voting, and, in the event of an equality of votes, the Chairperson, or in his absence, the person presiding, shall have and exercise a second or casting vote. **9. Vacancies, etc., not to invalidate proceedings of the Authority.—No act or proceeding of the** Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. **10. Appointment of officers and other employees of the Authority.—(1) For the purpose of** enabling it efficiently to discharge its functions under this Act, the Authority shall, subject to the provisions of section 18 and to such rules as may be made in this behalf, appoint (whether on deputation or otherwise) such number of officers and other employees as it may consider necessary: Provided that the appointment of such category of officers, as may be specified after consultation with the Chairperson in such rules, shall be subject to the approval of the Central Government. (2) Subject to the provisions of section 18, every officer or other employee appointed by the Authority shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations. **11. Authority to act on business principles.—In the discharge of its functions under this Act, the** Authority shall act, so far as may be, on business principles. CHAPTER III FUNCTIONS OF THE AUTHORITY **12. Functions of the Authority.—(1) Subject to the rules, if any, made by the Central Government in** this behalf, it shall be the function of the Authority to manage the airports, the civil enclaves and the aeronautical communication stations efficiently. (2) It shall be the duty of the Authority to provide air traffic service and air transport service at any airport and civil enclaves. (3) Without prejudice to the generality of the provisions contained in sub-sections (1) and (2), the Authority may— (a) plan, develop, construct and maintain runways, taxiways, aprons and terminals and ancillary buildings at the airports and civil enclaves; 1[(aa) establish airports, or assist in the establishment of private airports, by rendering such technical, financial or other assistance which the Central Government may consider necessary for such purpose;] (b) plan, procure, instal and maintain navigational aids, communication equipment, beacons and ground aids at the airports and at such locations as may be considered necessary for safe navigation and operation of aircrafts; (c) provide air safety services and search and rescue, facilities in co-ordination with other agencies; 1. Ins. by Act of 43 of 2003, s. 5 (w.e.f. 1-7-2004). 6 ----- (d) establish schools or institutions or centres for the training of its officers and employees in regard to any matter connected with the purposes of this Act; (e) construct residential buildings for its employees; (f) establish and maintain hotels, restaurants and restrooms at or near the airports; (g) establish warehouses and cargo complexes at the airports for the storage or processing of goods; (h) arrange for postal, money exchange, insurance and telephone facilities for the use of passengers and other persons at the airports and civil enclaves; (i) make appropriate arrangements for watch and ward at the airports and civil enclaves; (j) regulate and control the plying of vehicles, and the entry and exit of passengers and visitors, in the airports and civil enclaves with due regard to the security and protocol functions of the Government of India; (k) develop and provide consultancy, construction or management services, and undertake operations in India and abroad in relation to airports, air-navigation services, ground aids and safety services or any facilities thereat; (l) establish and manage heliports and airstrips; (m) provide such transport facility as are, in the opinion of the Authority, necessary to the passengers travelling by air; (n) form one or more companies under the Companies Act, 1956 (1 of 1956) or under any other law relating to companies to further the efficient discharge of the functions imposed on it by this Act; (o) take all such steps as may be necessary or convenient for, or may be incidental to, the exercise of any power or the discharge of any function conferred or imposed on it by this Act; (p) perform any other function considered necessary or desirable by the Central Government for ensuring the safe and efficient operation of aircraft to, from and across the air space of India; (q) establish training institutes and workshops; (r) any other activity at the airports and the civil enclaves in the best commercial interests of the Authority including cargo handling, setting up of joint ventures for the discharge of any function assigned to the Authority. (4) In the discharge of its functions under this section, the Authority shall have due regard to the development of air transport service and to the efficiency, economy and safety of such service. (5) Nothing contained in this section shall be construed as— (a) authorising the disregard by the Authority of any law for the time being in force; or (b) authorising any person to institute any proceeding in respect of duty or liability to which the Authority or its officers or other employees would not otherwise be subject. 1[12A. Lease by the Authority.—(1) Notwithstanding anything contained in this Act, the Authority may, in the public interest or in the interest of better management of airports, make a lease of the premises of an airport (including buildings and structures thereon and appertaining thereto) to carry out some of its functions under section 12 as the Authority may deem fit: Provided that such lease shall not affect the functions of the Authority under section 12 which relates to air traffic service or watch and ward at airports and civil enclaves. (2) No lease under sub-section (1) shall be made without the previous approval of the Central Government. (3) Any money, payable by the lessee in terms of the lease made under sub-section (1), shall form part of the fund of the Authority and shall be credited thereto as if such money is the receipt of the Authority for all purposes of section 24. 1. Ins. by Act of 43 of 2003, s. 6 (w.e.f. 1-7-2004). 7 ----- (4) The lessee, who has been assigned any function of the Authority under sub-section (1) shall have all the powers of the Authority necessary for the performance of such function in terms of the lease.] CHAPTER IV PROPERTY AND CONTRACT **13. Undertakings of the International Airports Authority and the National Airports Authority** **to vest in the Authority.—(1) On and from the appointed day, there shall be transferred to, and vest in,** the Authority constituted under section 3, the undertakings of the International Airports Authority and the National Airports Authority. (2) The undertaking of the International Airports Authority or the National Airports Authority which is transferred to, and which vests in, the Authority under sub-section (1) shall be deemed to include all assets, rights, powers, authorities and privileges and all property movable and immovable, real or personal, corporeal or incorporeal, present or contingent, of whatever nature and wheresoever situate, including lands, buildings, machinery, equipments, works, workshops, cash balances, capital, reserves, reserve funds, investments, tenancies, leases and book debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership, possession or power of the International Airports Authority, or as the case may be, the National Airports Authority, in relation to its undertaking, whether within or outside India, all books of account and documents relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the International Airports Authority, or as the case may be, the National Airports Authority in relation to its undertaking. **14. General effect of vesting of undertaking in the Authority.—(1) All contracts, agreements and** working arrangements subsisting immediately before the appointed day and affecting the International Airports Authority, or as the case may be, the National Airports Authority shall, in so far as they relate to the International Airports Authority, or as the case may be, the National Airports Authority, cease to have effect or be enforceable against the International Airports Authority, or as the case may be, the National Airports Authority and shall be of as full force and effect against or in favour of the Authority in which the undertakings have vested by virtue of this Act and enforceable as fully and effectually as if, instead of the International Airports Authority, or as the case may be, the National Airports Authority, the Authority had been named therein or had been a party thereto. (2) Any proceeding, suit or cause of action pending or existing immediately before the appointed day by or against the International Airports Authority or the National Airports Authority in relation to its undertakings may, as from that day, be continued and enforced by or against the Authority in which it has vested by virtue of this Act, as it might have been enforced by or against the International Airports Authority or the National Airports Authority if this Act had not been passed, and shall cease to be enforceable by or against the International Airports Authority, or as the case may be, the National Airports Authority. **15. Licences, etc., to be deemed to have been granted to the Authority.—With effect from the** appointed day, all licences, permits, quotas and exemptions, granted to the International Airports Authority or the National Airports Authority in connection with the affairs and business of the International Airports Authority, or as the case may be, the National Airports Authority, under any law for the time being in force, shall be deemed to have been granted to the Authority in which the undertakings of the International Airports Authority and the National Airports Authority have vested by virtue of this Act. **16. Tax exemption or benefit to continue to have effect.—(1) Where any exemption from, or any** assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry forward, as the case may be, of any unabsorbed depreciation or investment allowance or other allowance 8 ----- or loss has been extended or is available to the International Airports Authority or the National Airports Authority, under the Income-tax Act, 1961 (43 of 1961), such exemption, assessment or benefit shall continue to have effect in relation to the Authority in which the undertakings of the International Airports Authority and the National Airports Authority have vested by virtue of this Act. (2) Where any payment made by the International Airports Authority or the National Airports Authority is exempt from deduction of the tax at source under any provision of the Income-tax Act, 1961 (43 of 1961), the exemption from tax will continue to be available as if the provisions of the said Act made applicable to the International Airports Authority or the National Airports Authority were operative in relation to the Authority in which the undertakings of the International Airports Authority and the National Airports Authority have vested by virtue of this Act. (3) The transfer and vesting of the undertakings or any part thereof in terms of section 13 shall not be construed as a transfer within the meaning of the Income-tax Act, 1961 (43 of 1961) for the purposes of capital gains. **17.** **Guarantee to be operative.—Any guarantee given for or in favour of the International Airports** Authority or the National Airports Authority with respect to any loan or lease finance shall continue to be operative in relation to the Authority in which the undertakings of the International Airports Authority and the National Airports Authority have vested by virtue of this Act. **18. Provisions in respect of officers and other employees of the International Airports Authority** **and the National Airports Authority.—(1) (a) Every officer or other employee of the International** Airports Authority serving in its employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the undertaking which has vested in the Authority by virtue of this Act, becomes, as from the appointed day, an officer or, as the case may be, other employee of the International Airports Division of the Authority. (b) Every officer or other employee of the National Airports Authority serving in its employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the undertaking which has vested in the Authority by virtue of this Act, becomes, as from the appointed day, an officer or, as the case may be, other employee of the National Airports Division of the Authority. (2) Every officer or other employee of the International Airports Authority or the National Airports Authority who becomes an officer or, as the case may be, other employee of the Authority, as referred to in sub-section (1), shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same obligations and with the same rights and privileges as to leave, passage, insurance, superannuation scheme, provident fund, other funds, retirement, pension, gratuity and other benefits as he would have held under the International Airports Authority or, as the case may be, the National Airports Authority if its undertaking had not vested in the Authority and shall continue to do so as an officer or other employee, as the case may be, of the Authority or until the expiry of a period of one year from the appointed day if such officer or other employee opts not to be the officer or other employee of the Authority within such period: Provided that if the Authority thinks it expedient to extend the period so fixed, it may extend the same up to a maximum period of one year. (3) Where an officer or other employee of the International Airports Authority or the National Airports Authority opts under sub-section (2) not to be in the employment or service of the Authority in which the undertakings of the International Airports Authority and the National Airports Authority have vested, such officer or other employee shall be deemed to have resigned from the respective cadre. (4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, the transfer of the services of any officer or other employee of the International Airports Authority or the National Airports Authority to the Authority shall not entitle such officer or other employee to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. (5) The officers and other employees who have retired before the appointed day from the service of the International Airports Authority or the National Airports Authority and are entitled to any benefits, 9 ----- rights or privileges shall be entitled to receive the same benefits, rights or privileges from the Authority in which the undertakings of the International Airports Authority and the National Airports Authority have vested. (6) The trusts of the Provident Fund and Group Insurance and Superannuation Scheme of the International Airports Authority or the National Airports Authority and any other bodies created for the welfare of officers or employees would continue to discharge their functions in the Authority as was being done hitherto in the International Airports Authority or the National Airports Authority and tax exemption granted to Provident Fund or Group Insurance and Superannuation Scheme would continue to be applied to the Authority. (7) After the expiry of the period of one year, or the extended period, as referred to in sub-section (2), all the officers and other employees transferred and appointed to the Authority, other than those opting not to be the officers or employees of the Authority within such period, shall be governed by the rules and regulations made by the Authority in respect of the service conditions of the officers and other employees of the said Authority. **19. Compulsory acquisition of land for the Authority.—Any land required by the Authority for the** discharge of its functions under this Act shall be deemed to be needed for a public purpose and such land may be acquired for the Authority under the provisions of the Land Acquisition Act, 1894 (1 of 1894) or of any other corresponding law for the time being in force. **20. Contracts by the Authority.—Subject to the provisions of section 21, the Authority shall be** competent to enter into and perform any contract necessary for the discharge of its functions under this Act. **21. Mode of executing contracts on behalf of the Authority.—(1) Every contract shall, on behalf of** the Authority, be made by the Chairperson or such other member or such officer of the Authority as may be generally or specially empowered in this behalf by the Authority and such contracts or class of contracts as may be specified in the regulations shall be sealed with the common seal of the Authority: Provided that no contract exceeding such value or amount as the Central Government may, from time to time, by order, fix in this behalf shall be made unless it has been previously approved by the Authority: Provided further that no contract for the acquisition or sale of immovable property or for the lease of any such property for a term exceeding thirty years and no other contract exceeding such value or amount as the Central Government may, from time to time, by order, fix in this behalf shall be made unless it has been previously approved by the Central Government. (2) Subject to the provisions of sub-section (1), the form and manner in which any contract shall be made under this Act shall be such as may be specified by regulations. (3) No contract which is not in accordance with the provisions of this Act and the regulations shall be binding on the Authority. CHAPTER V FINANCE, ACCOUNTS AND AUDIT **22. Power of the Authority to charges fees, rent, etc.—The Authority may,—** (i) with the previous approval of the Central Government, charge fees or rent— (a) for the landing, housing or parking of aircraft or for any other service or facility offered in connection with aircraft operations at any airport, heliport or airstrip. _Explanation.—In this sub-clause “aircraft” does not include an aircraft belonging to any_ armed force of the Union and “aircraft operations” does not include operations of any aircraft belonging to the said force; (b) for providing air traffic services, ground safety services, aeronautical communications and navigational aids and meteorological services at any airport and at any aeronautical communication station; 10 ----- (c) for the amenities given to the passengers and visitors at any airport, civil enclave, heliport or airstrip; (d) for the use and employment by persons of facilities and other services provided by the Authority at any airport, civil enclave, heliport or airstrip; (ii) with due regard to the instructions that the Central Government may give to the Authority, from time to time, charge fees or rent from persons who are given by the Authority any facility for carrying on any trade or business at any airport, heliport or airstrip. 1[22A. Power of Authority to levy development fees at airports.—2[The Authority may,— (i) after the previous approval of the Central Government in this behalf, levy on, and collect from, the embarking passengers at an airport other than major airports referred to in clause (h) of section 2 of the Airports Economic Regulatory Authority of India Act, 2008 (27 of 2008) the development fees at the rate as may be prescribed; (ii) levy, on, and collect from, the embarking passengers at major airport referred to in clause (h) of section 2 of the Airports Economic Regulatory Authority of India Act, 2008 (27 of 2008) the development fees at the rate as may be determined under clause (b) of sub-section (1) of section 13 of the Airports Economic Regulatory Authority of India Act, 2008, and such fees shall be credited to the Authority and shall be regulated and utilised in the prescribed manner, for the purposes of—] (a) funding or financing the costs of upgradation, expansion or development of the airport at which the fee is collected; or (b) establishment or development of a new airport in lieu of the airport referred to in clause (a); or (c) investment in the equity in respect of shares to be subscribed by the Authority in companies engaged in establishing, owning, developing, operating or maintaining a private airport in lieu of the airport referred to in clause (a) or advancement of loans to such companies or other persons engaged in such activities.] **23. Additional capital and grant to the Authority by the Central Government.—The Central** Government may, after due appropriation made by Parliament, by law in this behalf,— (a) provide any capital that may be required by the Authority for the discharge of its functions under this Act or for any purpose connected therewith on such terms and conditions as that Government may determine; (b) pay to the Authority, on such terms and conditions as the Central Government may determine, by way of loans or grants such sums of money as that Government may consider necessary for the efficient discharge by the Authority of its functions under this Act. **24. Fund of the Authority and its investment.—(1) The Authority shall have its own fund and all** receipts of the Authority shall be credited thereto and all payments of the Authority shall be made therefrom. (2) The Authority shall have power, subject to the provisions of this Act, to spend such sums as it thinks fit to cover all administrative expenses of the Authority and on objects or for purposes authorised by this Act and such sums shall be treated as expenditure out of the fund of the Authority. (3) All moneys standing at the credit of the Authority which cannot immediately be applied as provided in sub-section (2), shall be— (a) deposited in the State Bank of India or any such Scheduled bank or banks or other public financial institutions subject to such conditions as may, from time to time, be specified by the Central Government; and 1. Ins. by Act of 43 of 2003, s.7 (w.e.f. 1-7-2004). 2. Subs. by Act of 27 of 2008, s. 54 and the Schedule, for certain words (w.e.f. 30-11-2008). 11 ----- (b) invested in the securities of the Central Government or in such manner as may be prescribed. _Explanation—In this sub-section, “Scheduled bank” has the same meaning as in clause (e) of_ section of the Reserve Bank of India Act, 1934 (2 of 1934). **25. Allocation of surplus funds.—(1) The Authority may, from time to time, set apart such amounts** as it thinks fit as a reserve fund or funds for the purpose of expanding existing facilities or services or creating new facilities or services at any airport, civil enclave, heliport or airstrip or for the purpose of providing against any temporary decrease of revenue or increase of expenditure from transient causes or for purposes of replacement or for meeting expenditure arising from loss or damage from fire, cyclone, air-crash or other accident or for meeting any liability arising out of any act or commission in the discharge of its functions under this Act: Provided that without prejudice to the right of the Authority to establish specific reserves for one or more specific purposes, the Authority shall also have the power to establish a general reserve: Provided further that the sums set apart annually in respect of each or any of the specific and general reserves and the aggregate at any time of such sums shall not exceed such limits as may, from time to time, be fixed in that behalf by the Central Government. (2) After making provision for such reserve fund or funds and for bad and doubtful debts, depreciation in assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956 (1 of 1956) the Authority shall pay the balance of its annual net profits to the Central Government. **26. Submission of programme of activities and financial estimates.—(1) The Authority shall,** before the commencement of each financial year, prepare a statement of the programme of its activities during the forthcoming financial year as well as financial estimate in respect thereof. (2) The statement prepared under sub-section (1) shall, not less than three months before the commencement of each financial year, be submitted for approval to the Central Government. (3) The statement and the financial estimates of the Authority may, with the approval of the Central Government, be revised by the Authority. **27. Borrowing powers of the Authority.—(1) The Authority may, with the consent of the Central** Government or in accordance with the terms of any general or special authority given to it by the Central Government, borrow money from any source by the issue of bonds, debentures or such other instruments as it may deem fit for discharging all or any of its functions under this Act. (2) The Central Government may guarantee in such manner as it thinks fit, the repayment of the principal and the payment of interest thereon with respect to the loans borrowed by the Authority under sub-section (1). (3) Subject to such limits as the Central Government may, from time to time, lay down, the Authority may borrow temporarily by way of overdraft or otherwise such amounts as it may require for discharging its functions under this Act. **28. Accounts and audit.—(1) The Authority shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts including the profit and loss account and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Authority shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers, documents and papers and inspect any of the offices of the Authority. 12 ----- (4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament. 1[CHAPTER VA EVICTION OF UNAUTHORISED OCCUPANTS, ETC., OF AIRPORT PREMISES **28A. Definitions.—In this Chapter, unless the context otherwise requires,—** (a) “airport premises” means any premises— (i) belonging to airport; (ii) taken on lease for the purposes of airport; (iii) acquired for the Authority under the provisions of the Land Acquisition Act, 1894 (1 of 1894) or any other corresponding law for the time being in force. _Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this clause,_ “airport” includes private airport; (b) “eviction officer” means an officer of the Authority appointed as such by it under section 28B; (c) “premises” means any land or building or part of a building, and includes— (i) the garden, grounds and outhouses, if any, appertaining to such building or part of a building; and (ii) any fittings affixed to such building or part of a building for more beneficial enjoyment thereof; (d) “rent”, in relation to any airport premises, means the consideration payable periodically for the authorised occupation of the premises, and includes— (i) any charge for electricity, water or any other service in connection with the occupation of the premises; and (ii) any tax, by whatever name called, payable in respect of the premises; 2* - - - (f) “unauthorised occupation”, in relation to any airport premises, means the occupation by any person of the airport premises without authority for such occupation and includes the continuance in occupation by any person of the airport premises after the authority (whether by way of grant or any other mode of transfer) under which he was allowed to occupy the premises has expired or has been determined for any reason whatsoever. **28B. Appointment of eviction officers.—The Authority may, by general or special order in writing,** appoint such number of its officers, as it thinks fit, to be eviction officers for the purposes of this Chapter, and define the local limits within which, or the categories of airport premises in respect of which, the eviction officers shall exercise the powers conferred and perform the duties imposed, on eviction officers by or under this Chapter. **28C. Issue of notice to show cause against order of eviction.—(1) If the eviction officer is of the** opinion that any persons are in unauthorised occupation of any airport premises and that they should be evicted, the eviction officer shall, in the manner hereinafter provided, issue a notice in writing calling upon all persons concerned to show cause why an order of eviction should not be made. (2) The notice shall— (a) specify the grounds on which the order of eviction is proposed to be made; and 1. Ins. by Act of 43 of 2003, s. 8 (w.e.f. 1-7-2004). 2. Clause (e) omitted by Act 33 of 2021, s. 19 (w.e.f. 4-4-2021). 13 ----- (b) require all persons concerned, that is to say, all persons who are or may be, in occupation of, or claim interest in, the airport premises— (i) to show cause, if any, against the proposed order on or before such date as is specified in the notice, being a date not earlier than seven days from the date of issue thereof, and (ii) to appear before the eviction officer on the date specified in the notice along with the evidence which they intend to produce in support of the cause shown and also for personal hearing, if such hearing is desired. (3) The eviction officer shall cause the notice to be served by having it affixed on the outer door or some other conspicuous part of the airport premises and in such other manner as may be prescribed, whereupon the notice shall be deemed to have been duly given to the persons concerned. (4) Where the eviction officer knows or has reasons to believe that any person is in occupation of the airport premises, then, without prejudice to the provisions of sub-section (3), he shall cause a copy of the notice to be served on every such person by post or by delivering or tendering it to that person or in such other manner as may be prescribed. **28D. Eviction of unauthorised occupants.—(1) If, after considering the cause, if any, shown by any** person in pursuance of a notice under section 28C and any evidence produced by him in support of the same and after personal hearing, if any, given under sub-clause (ii) of clause (b) of sub-section (2) of section 28C, the eviction officer is satisfied that the airport premises are in unauthorised occupation, the eviction officer may make an order of eviction, for reasons to be recorded therein, directing that the airport premises shall be vacated, on such date as may be specified in the order, by the persons who may be in occupation thereof, and cause a copy of the order to be affixed on the outer door or some other conspicuous part of the airport premises. (2) If any person refuses or fails to comply with the order of eviction on or before the date specified in the order or within fifteen days of the date of publication under sub-section (1), whichever is earlier, the eviction officer or any other officer duly authorised by the eviction officer in this behalf may, after the date so specified or after the expiry of the period aforesaid, whichever is earlier, evict that person from, and take possession of, the airport premises and may, for that purpose, use such force as may be necessary. **28E. Disposal of property left on airport premises by unauthorised occupants.—(1) Where any** persons have been evicted from any airport premises under section 28D, the eviction officer may, after giving ten days’ notice to the persons from whom possession of the airport premises has been taken and after publishing the notice in at least one newspaper having circulation in the locality, remove or cause to be removed or dispose of by public auction any property remaining on such premises. (2) Where any property is sold under sub-section (1), the sale proceeds thereof shall, after deducting the expenses of the sale and the amount, if any, due to the Central Government or the corporate authority on account of arrears of rent or damages or costs, be paid to such person or persons as may appear to the eviction officer to be entitled to the same: Provided that where the eviction officer is unable to decide as to the person or persons to whom the balance of the amount is payable or as to the apportionment of the same, he may refer such dispute to the 1[Central Government]and the decision of the 1[Central Government] thereon shall be final. **28F. Power to remove unauthorised constructions, etc.—(1) No person shall—** (a) erect or place or raise any building or any movable or immovable structure or fixture; (b) display or spread any goods; (c) bring or keep any cattle or other animal, on or against or in front of any airport premises except in accordance with the authority (whether by way of grant or any other mode of transfer) under which he was allowed to occupy such airport premises. 1. Subs. by Act 33 of 2021, s. 19, for “Tribunal” (w.e.f. 4-4-2021). 14 ----- (2) Where any building or other immovable structure or fixture has been erected, placed or raised in any airport premises in contravention of the provisions of sub-section (1), the eviction officer may serve on the person erecting such building or other structure or fixture, a notice requiring him either to remove or show cause why he shall not remove such building or other structure or fixture to or from the airport premises within such period, not being less than seven days but not exceeding thirty days as may be specified in the notice, and on the omission or refusal of such person to show cause, or to remove such building or other structure or fixture from the airport premises, or where the cause shown is not, in the opinion of the eviction officer, sufficient, the eviction officer may, by order, remove or cause to be removed the building or other structure or fixture from the airport premises and the cost of such removal shall be recoverable from such person as an arrear of land revenue. (3) Where any movable structure or fixture has been erected, placed or raised, or any goods have been displayed or spread or any cattle or other animal has been brought or kept on any airport premises in contravention of the provisions of sub-section (1) by any person, the eviction officer may, by order, remove or cause to be removed without notice, such structure, fixture, goods, cattle or other animal, as the case may be, from the airport premises and the cost of such removal shall be recoverable from such person as an arrear of land revenue. **28G. Power to require payment of rent or damages in respect of airport premises.—(1) Where** any person is in arrears of rent payable in respect of airport premises, the eviction officer may, by order, require that person to pay the same within such time and in such instalments as may be specified in the order. (2) Where any person is, or has at any time been, in unauthorised occupation of any airport premises, the eviction officer may, having regard to such principles of assessment of damages as may be prescribed, assess the damages on account of the use and occupation of such premises and may, by order, require that person to pay the damages within such time and in such instalments as may be specified in the order. (3) While making an order under sub-section (1) or sub-section (2), the eviction officer may direct that the arrears of rent or, as the case may be, damages shall be payable together with simple interest at such rate as may be prescribed. (4) No order under sub-section (1) or sub-section (2) shall be made against any person until after the issue of a notice in writing to the person calling upon him to show cause within such period not being less than seven days but not exceeding thirty days as may be specified in the notice as to why such order should not be made, and until his objections, if any, and any evidence he may produce in support of the same have been considered by the eviction officer. **28H. Powers of eviction officers.—An eviction officer shall, for the purpose of holding any inquiry** into this Chapter, have the same powers, as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) any other matter which may be prescribed. [28-I. Establishment of Tribunal.]—Omitted by The Tribunals Reforms Act, 2021 (33 of 2021), s. 19 (w.e.f. 4-4-2021). [28J. Resignation and removal.]—Omitted by ibid., s. 19 (w.e.f. 4-4-2021). 1[28JA. Qualifications, terms and conditions of service of Chairperson.]—Omitted by ibid., s. 19 (w.e.f. 4-4-2021). **28K. Appeals to Tribunal.—(1) Any person aggrieved by an order of the eviction officer under this** Chapter may, within fifteen days from the date of such order, prefer an appeal to the [2][High Court]: 1. Ins. by Act 7 of 2017, s. 166 (w.e.f. 26-5-2017). 2. Subs. by Act 33 of 2021, s. 19, for “Tribunal in such form as may be prescribed” (w.e.f. 4-4-2021). 15 ----- Provided that the [1][High Court] may entertain any appeal after the expiry of the said period of fifteen days, but not after the period of thirty days from the date aforesaid, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time. 2* - - - **[28L.** Procedure and powers of Tribunal.]—Omitted by _The Tribunals Reforms Act, 2021 (33_ _of_ 2021), s. 19 (w.e.f. 4-4-2021). **28M. Finality of orders.—Subject to the provisions of this Act, every order made by an eviction** officer [3]*** under this Chapter shall be final and shall not be called in question in any suit, application, execution or other proceeding and no injunction shall be granted by any court or other authority in respect of any action taken or intended to be taken in pursuance of any power conferred by or under this Chapter. **28N. Offences under this Chapter.—(1) Whoever, unlawfully occupies any airport premises, shall** be punishable with imprisonment for a term which may extend to six years and with fine. (2) Whoever fails to comply with any order of the eviction officer or the [1][High Court]under this Chapter shall be punishable with imprisonment for a term which may extend to seven years and with fine. (3) If any person who has been evicted from any airport premises under this Chapter again occupies the premises without authority for such occupation, he shall be punishable with imprisonment for a term which may extend to ten years and with fine. (4) The court may, while convicting a person under sub-section (3), make an order for evicting that person summarily and he shall be liable to such eviction without prejudice to any other action that may be taken under this Chapter. **28-O. Offences by companies.—(1) Where any offence under this Chapter has been committed by a** company, every person who, at the time the offence was committed, was directly in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Chapter, if he proves that the offence was committed without his knowledge or he has exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Chapter has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation —For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **28P. Cognizance of offences.—No court shall take cognizance of any offence under this Chapter** except on a complaint made by the Authority, eviction officer or any other officer authorised by it and no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Chapter. **28Q. Power to obtain information.—If the eviction officer has reason to believe that any persons** are in an unauthorised occupation of any airport premises, he or any other officer authorised by him in this behalf may require those persons or any other person to furnish information in relation to the names 1. Subs. by Act 33 of 2021, s. 19, for “Tribunal” (w.e.f. 4-4-2021). 2. Sub-sections (2), (3), (4) and (5) omitted by s. 19, ibid. (w.e.f. 4-4-2021). 3. The words “or the Tribunal” omitted by s. 19, ibid. (w.e.f. 4-4-2021). 16 ----- and other particulars of the persons in occupation of the airport premises and every person so required shall be bound to furnish the information in his possession. **28R. Officers, etc., to aid and assist.—It shall be the duty of all the officers of the Government** including police officers and any local authority to aid and assist the eviction officer or other officers of the Authority in the discharge of their functions under this Chapter.] CHAPTER VI MISCELLANEOUS **29. Submission of annual report.—(1) The Authority shall, as soon as may be after the end of each** financial year, prepare and submit to the Central Government in such form as may be prescribed a report giving an account of its activities during that financial year and the report shall also give an account of the activities which are likely to be undertaken by the Authority during the next financial year. (2) The Central Government shall cause such report to be laid before both Houses of Parliament as soon as may be after it is submitted. **30. Delegation.—The Authority may, by general or special order in writing, delegate to the** Chairperson or any other member or to any officer of the Authority, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act, (except the powers under section 42) as it may deem necessary. **31. Authentication of orders and other instruments of the Authority.—All orders and decisions** of the Authority shall be authenticated by the signature of the Chairperson or any other member authorised by the Authority in this behalf and all other instruments executed by the Authority shall be authenticated by the signature of an officer of the Authority authorised by it in this behalf. **32. Officers and employees of the Authority to be public servants.—All officers and employees of** the Authority shall, while acting or purporting to act in pursuance of the provisions of this Act or of any rule or regulation made thereunder, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **33. Protection of action taken in good faith.— No suit, prosecution or other legal proceeding shall** lie against the Authority or any member or any officer or other employee of the Authority [1]*** for anything which is in good faith done or intended to be done in pursuance of this Act or of any rule or regulation made thereunder or for any damage sustained by any aircraft or vehicle in consequence of any defect in any of the airports, civil enclaves, heliports, airstrips, aeronautical communication stations or other things belonging to or under the control of the Authority. **34. Custody and disposal of lost property.—Subject to such regulations as the Authority may make** in this behalf, the authority shall provide for securing the safe custody and restoration of any property which, while not in proper custody, is found on any premises belonging to the Authority or under its overall control or in any aircraft on any such premises. **35. Provisions relating to income-tax.—For the purposes of the Income-tax Act, 1961 (43 of 1961)** or any other enactment for the time being in force relating to income-tax or any other tax on income, profits or gains, the Authority shall be deemed to be a company within the meaning of the Income-tax Act, 1961 and shall be liable to tax accordingly on its income, profits and gains. **36. Power of the Authority to undertake certain works.—The Authority may undertake to carry** out on behalf of any person any works or services or any class of works or services on such terms and conditions as may be agreed upon between the Authority and the person concerned. **37. Power to issue directions.—(1) The Authority or any officer specially authorised by it in this** behalf may, from time to time, by order, issue directions, consistent with the provisions of the Aircraft Act, 1934 (22 of 1934) and the rules made thereunder, with respect to any of the matters specified in clauses (f), (h), (i), (j), (k), (m), (p), (qq) and (r) of sub-section (2) of section 5 of that Act, to any person or persons engaged in aircraft operations or using any airports, heliport, airstrip or civil enclave, in any 1. The words “or the Chairperson of the Tribunal” omitted by Act 33 of 2021, s. 19 (w.e.f. 4-4-2021). 17 ----- case where the Authority or the officer is satisfied that in the interests of the security of India or for securing the security of the aircraft it is necessary to do so. (2) Every direction issued under sub-section (1) shall be complied with by the person or persons to whom such direction is issued. (3) If any person wilfully fails to comply with any direction issued under this section, he shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to five thousand rupees, or with both. **38. Power of the Central Government to temporarily divest the Authority of the management of** **any airport.—(1) If, at any time, the Central Government is of opinion that in the public interest it is** necessary or expedient so to do, it may, by order, direct the Authority to entrust the administration, management or similar other functions of any airport, heliport, airstrip, civil enclave, aeronautical communication station, or any other agency or department of any airport, heliport, airstrip civil enclave or aeronautical communication station with effect from such date and to such person as may be specified in the order and the Authority shall be bound to comply with such direction: Provided that before an order is made under this sub-section the Authority shall be given a reasonable opportunity of being heard in the matter. (2) Where the management of any airport, heliport, airstrip, civil enclave or aeronautical communication station or any other agency or department thereof is entrusted to any person specified under sub-section (1) (hereafter referred to in this section as the authorised person), the Authority shall cease to exercise and discharge all its powers and functions under this Act in relation to such airport, heliport, airstrip, civil enclave or aeronautical communication station or any other agency or department thereof and such powers and functions shall be exercised and discharged by the authorised person in accordance with the instructions, if any, which the Central Government may give to the authorised person from time to time: Provided that no such power or function as may be specified by the Central Government by a general or special order shall be exercised or discharged by the authorised person except with the previous sanction of the Central Government. (3) An order made under sub-section (1) shall, unless rescinded, be in operation for a period of six months from the date on which the management of the airport, heliport, airstrip, civil enclave or aeronautical communication station or any other agency or department thereof is entrusted to the authorised person: Provided that the Central Government may extend such period for a further period or periods not exceeding eighteen months. (4) During the operation of an order made under sub-section (1), it shall be competent for the Central Government to issue, from time to time, such directions to the Authority as are necessary to enable the authorised person to exercise the powers and discharge the functions of the Authority under this Act in relation to the airport, heliport, airstrip, civil enclave or aeronautical communication station, or any other agency or department thereof the management of which has been entrusted to him and in particular to transfer any sum of money from the fund of the Authority to the authorised person for the management of the airport, heliport, airstrip, civil enclave or aeronautical communication station or any other agency or department thereof and every such direction shall be complied with by the Authority. (5) On the cesser of operation of any order made under sub-section (1) in relation to any airport, heliport, airstrip, civil enclave or aeronautical communication station, or any other agency or department thereof the authorised person shall cease to exercise and perform the powers and functions of the authority under this Act in relation to such airport, heliport, airstrip, civil enclave or aeronautical communication station or any other agency or department thereof and the Authority shall continue to exercise and perform such powers and functions in accordance with the provisions of this Act. (6) On the cesser of operation of any order made under sub-section (1) in relation to any airport, heliport, airstrip, civil enclave or aeronautical communication station, or any other agency or department thereof the authorised person shall hand over to the Authority any property (including any sum of money 18 ----- or other asset) remaining with him in connection with the management of such airport, heliport, airstrip, civil enclave or aeronautical communication station. (7) Anything done or any action taken lawfully by the authorised person in relation to any airport, heliport, airstrip, civil enclave or aeronautical communication station or any other agency or department thereof during the period of operation of an order made under sub-section (1) shall be deemed to have been done or taken by the Authority and shall be binding on the Authority. **39. Power of the Central Government to supersede the Authority.—(1) If, at any time, the Central** Government is of opinion— (a) that on account of a grave emergency, the Authority is unable to discharge the functions and duties imposed on it by or under the provisions of this Act; or (b) that the Authority has persistently made default in complying with any direction issued by the Central Government under this Act or in the discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of which default the financial position of the Authority or the administration of any airport, heliport, airstrip, civil enclave or aeronautical communication station has deteriorated; or (c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification in the Official Gazette, supersede the Authority for such period, not exceeding six months, as may be specified in the notification: Provided that before issuing a notification under this sub-section for the reasons mentioned in clause (b), the Central Government shall give a reasonable opportunity to the Authority to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Authority. (2) Upon the publication of a notification under sub-section (1) superseding the Authority,— (a) all the members shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority, shall until the Authority is re-constituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; (c) all property owned or controlled by the Authority shall, until the Authority is re-constituted under sub-section (3), vest in the Central Government. (3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may— (a) extend the period of supersession for such further term not exceeding six months, as it may consider necessary; or (b) re-constitute the Authority by fresh appointment and in such case the members who vacated their offices under clause (a) of sub-section (2) shall not be deemed disqualified for appointment: Provided that the Central Government may, at any time before the expiration of the period of supersession, whether as originally specified under sub-section (1) or as extended under this sub-section, take action under clause (b) of this sub-section. (4) The Central Government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before both Houses of Parliament at the earliest opportunity. **40. Power of the Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Authority shall, in the discharge of its functions and duties under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: 19 ----- Provided that the Authority shall, as far as practicable, be given opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government whether a question is one of policy or not shall be final. (3) The Central Government may, from time to time, issue directions to the Authority regarding the discharge of any functions to it under clause (e) of sub-section (3) of section 12 and the Authority shall be bound to comply with such directions. **41. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for— (a) the period of notice as may be given by the Central Government to terminate the appointment of any part-time member of the Authority under clause (b) of proviso to sub-section (1) of section 5; (b) the conditions of service of the members of the Authority under sub-section (2) of section 5; (c) the period of notice as may be given by any member to resign his office under sub-section (3) of section 5; (d) the provisions subject to which officers and other employees may be appointed by the Authority and the category of officers to be appointed after approval of the Central Government under the proviso to sub-section (1) of section 10; (e) the provisions subject to which the Authority may manage the airports, civil enclaves and aeronautical communication stations under sub-section (1) of section 12; 1[(ee) 2[the rate of development fees in respect of airports other than major airports and] the manner of regulating and utilising the fees under section 22A;] (f) the manner in which the Authority may invest its funds under clause (b) of sub-section (3) of section 24; (g) the form in which the annual statement of accounts shall be prepared by the Authority under sub-section (1) of section 28: 1[(gi) the other manner of serving notice under sub-section (3) of section 28C; (gii) the other manner of serving notice under sub-section (4) of section 28C; (giii) the principles of assessment of damages under sub-section (2) of section 28G; (giv) the rate of simple interest under sub-section (3) of section 28G; (gv) any other matter under clause (c) of section 28H;] 3* - - - (h) the form in which a report giving an account of its activities shall be prepared and submitted by the Authority to the Central Government under sub-section (1) of section 29; and (i) any other matter which is to be, or may be, prescribed. **42. Power to make** **regulations.—(1) The Authority may make regulations not inconsistent with this** Act and the rules made thereunder to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act. (2) Without prejudice to the generality of the foregoing power, such regulations may provide for— 1. Ins. by Act of 43 of 2003, s.10 (w.e.f. 1-7-2004). 2. Subs. by Act 27 of 2008, s. 54 and the Schedule, for “the rate of development fees and” (w.e.f. 1-1-2009). 3. Clauses (gvi), (gvii), (gviii) and (gix) omitted by Act 33 of 2021, s. 19 (w.e.f. 4-4-2021). 20 ----- (a) the time and places of the meetings of the Authority and the procedure to be followed for the transaction of business including the quorum at such meetings under sub-section (1) of section 8; (b) the conditions of service and the remuneration of officers and other employees to be appointed by the Authority under sub-section (2) of section 10; (c) the construction of residential accommodation for the officers and other employees appointed by the Authority under clause (e) of sub-section (3) of section 12; (d) the storage or processing of goods in any warehouse established by the Authority under clause (g) of sub-section (3) of section 12 and the charging of fees for such storage or processing; (e) the contracts or class of contracts which are to be sealed with the common seal of the Authority and the form and manner in which a contract may be made by the Authority under sub-section (1) of section 21; (f) the custody and restoration of lost property and the terms and conditions under which lost property may be restored to the persons entitled thereto under section 34; (g) the disposal of any lost property in cases where such property is not restored; (h) securing the safety of aircraft, vehicles and persons using the airport or civil enclave and preventing danger to the public arising from the use and operation of aircraft in the airport or civil enclave; (i) preventing obstruction within the airport or civil enclave for its normal functioning; (j) prohibiting the parking or waiting of any vehicle of carriage within the airport or civil enclave except at places specified by the Authority; (k) prohibiting or restricting access to any part of the airport or civil enclave; (l) preserving order within the airport or civil enclave and preventing damage to property therein; (m) regulating or restricting advertising within the airport or civil enclave; (n) requiring any person, if so directed by an officer appointed by the Authority in this behalf, to leave the airport or civil enclave or any particular part of the airport or civil enclave; and (o) generally for the efficient and proper management of the airport or civil enclave. (3) Any regulation made under any of the clauses (h) to (o) (both inclusive) of sub-section (2) may provide that a contravention thereof shall be punishable with fine which may extend to five hundred rupees and in the case of a continuing contravention with an additional fine which may extend to twenty rupees for every day during which such contravention continues after conviction for the first such contravention. (4) No regulation made by the Authority under this section shall have effect until it has been approved by the Central Government and published in the Official Gazette. (5) Notwithstanding anything contained in this section, the first regulations under this Act shall be made by the Central Government and shall have effect on being published in the Official Gazette. (6) The first regulations framed under sub-section (5) shall remain in force until such time the Authority has made regulations and they are published in the Official Gazette. **43. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, as the case may be, or both Houses agree that the rule or regulation, as the case may be, should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. 21 ----- **44. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by general or special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for the removal of the difficulty: Provided that no such order shall be made after the expiration of one year from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **45. [Amendment of Act 22 of 1934.].—Rep. by Repealing and Amending Act, 2001 (30 of 2001), s.** 2 and the First Schedule (w.e.f. 3-11-2001). **46. Repeal and saving.—(1) On and from the appointed date,—** (i) the International Airports Authority Act, 1971 (43 of 1971) and the National Airports Authority Act, 1985 (64 of 1985) shall stand repealed; (ii) the International Airports Authority and the National Airports Authority constituted under the aforesaid Acts shall cease to exist. (2) Notwithstanding such repeal, anything done or any action taken or purported to have been done or taken under the aforesaid Acts so repealed shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act. 22 -----
20-Sep-1994
57
The Pre-conception and Pre-natal Diagnostic Techniques (Prohibition of Sex Selection) Act, 1994
https://www.indiacode.nic.in/bitstream/123456789/1937/1/199457.pdf
central
# THE PRE-CONCEPTION AND PRE-NATAL DIAGNOSTIC TECHNIQUES (PROHIBITION OF SEX SELECTION) ACT, 1994 _______________ ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGULATION OF GENETIC COUNSELLING CENTRES, GENETIC LABORATORIES AND GENETIC CLINICS 3. Regulation of Genetic Counselling Centres, Genetic Laboratories and Genetic Clinics. 3A. Prohibition of sex selection. 3B. Prohibition on sale of ultrasound machine, etc., to persons, laboratories, etc., not registered under the Act. CHAPTER III REGULATION OF PRE-NATAL DIAGNOSTIC TECHNIQUES 4. Regulation of pre-natal diagnostic techniques. 5. Written consent of pregnant woman and prohibition of communicating the sex of foetus. 6. Determination of sex prohibited. CHAPTER IV CENTRAL SUPERVISORY BOARD 7. Constitution of Central Supervisory Board. 8. Term of office of members. 9. Meetings of the Board. 10. Vacancies, etc., not to invalidate proceedings of the Board. 11. Temporary association of persons with the Board for particular purposes. 12. Appointment of officers and other employees of the Board. 13. Authentication of orders and other instruments of the Board. 14. Disqualifications for appointment as member. 15. Eligibility of member for reappointment. 16. Functions of the Board. 16A. Constitution of State Supervisory Board and Union territory Supervisory Board. CHAPTER V APPROPRIATE AUTHORITY AND ADVISORY COMMITTEE 17. Appropriate Authority and Advisory Committee. 17A. Powers of Appropriate Authorities. CHAPTER VI REGISTRATION OF GENETIC COUNSELLING CENTRES, GENETIC LABORATORIES AND GENETIC CLINICS 18. Registration of Genetic Counselling Centres, Genetic Laboratories or Genetic Clinics. 19. Certificate of registration. ----- SECTIONS 20. Cancellation or suspension of registration. 21. Appeal. CHAPTER VII OFFENCES AND PENALTIES 22. Prohibition of advertisement relating to pre-conception and pre-natal determination of sex and punishment for contravention. 23. Offences and penalties. 24. Presumption in the case of conduct of pre-natal diagnostic techniques. 25. Penalty for contravention of the provisions of the Act or rules for which no specific punishment is provided. 26. Offences by companies. 27. Offence to be cognizable, non-bailable and non-compoundable. 28. Cognizance of offences. CHAPTER VIII MISCELLANEOUS 29. Maintenance of records. 30. Power to search and seize records, etc. 31. Protection of action taken in good faith. 31A. Removal of difficulties. 32. Power to make rules. 33. Power to make regulations. 34. Rules and regulations to be laid before Parliament. ----- 2[THE PRE-CONCEPTION AND PRE-NATAL DIAGNOSTIC TECHNIQUES # (PROHIBITION OF SEX SELECTION)] ACT, 1994 ACT NO. 57 OF 1994 [20th September, 1994.] 1[An Act to provide for the prohibition of sex selection, before or after conception, and for # regulation of pre-natal diagnostic techniques for the purposes of detecting genetic abnormalities or metabolic disorders or chromosomal abnormalities or certain congenital malformations or sex-linked disorders and for the prevention of their misuse for sex determination leading to female foeticide and for matters connected therewith or incidental thereto.] BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called** [2][the Pre-conception and Pre-natal Diagnostic Techniques (Prohibition of Sex Selection)] Act, 1994. (2) It shall extend to the whole of India [3]***. (3) It shall come into force on such date[4] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Appropriate Authority” means the Appropriate Authority appointed under section 17; (b) “Board” means the Central Supervisory Board constituted under section 7; 5[(ba) “conceptus” means any product of conception at any stage of development from fertilisation until birth including extra embryonic membranes as well as the embryo or foetus; [(bb) “embryo” means a developing human organism after fertilisation till the end of eight weeks](http://indiankanoon.org/doc/360893/) (fifty-six days); [(bc) “foetus” means a human organism during the period of its development beginning on the](http://indiankanoon.org/doc/1840904/) fifty-seventh day following fertilisation or creation (excluding any time in which its development has been suspended) and ending at the birth;] (c) “Genetic Counselling Centre” means an institute, hospital, nursing home or any place, by whatever name called, which provides for genetic counselling to patients; (d) “Genetic Clinic” means a clinic, institute, hospital, nursing home or any place, by whatever name called, which is used for conducting pre-natal diagnostic procedures. 6[Explanation.—For the purposes of this clause, “Genetic Clinic” includes a vehicle, where ultrasound machine or imaging machine or scanner or other equipment capable of determining sex of the foetus or a portable equipment which has the potential for detection of sex during pregnancy or selection of sex before conception, is used;] (e) “Genetic Laboratory” means a laboratory and includes a place where facilities are provided for conducting analysis or tests of samples received from Genetic Clinic for pre-natal diagnostic test. 6[Explanation.—For the purposes of this clause, “Genetic Laboratory” includes a place where ultrasound machine or imaging machine or scanner or other equipment capable of determining sex of the foetus or a portable equipment which has the potential for detection of sex during pregnancy or selection of sex before conception, is used;] 1. Subs. by Act 14 of 2003, s. 2, for the long title (w.e.f. 14-2-2003). 2. Subs. by s. 3, ibid., for “the Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse)” (w.e.f. 14-2-2003). 3. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 4. 1st January, 1996, _vide_ notification No. S.O. 990, dated 21st December, 1995, _see Gazette of India, Extraordinary, Part II,_ sec. 3(ii). 5. Ins. by Act 14 of 2003, s. 4 (w.e.f. 14-2-2003). 6. Added by s. 4, ibid. (w.e.f. 14-2-2003). ----- (f) “gynaecologist” means a person who possesses a post-graduate qualification in gynaecology and obstetrics; 1[(g) “medical geneticist” includes a person who possesses a degree or diploma in genetic science in the fields of sex selection and pre-natal diagnostic techniques or has experience of not less than two years in any of these fields after obtaining— [(i) any one of the medical qualifications recognised under the Indian Medical Council Act,](http://indiankanoon.org/doc/710451/) 1956 (102 of 1956); or [(ii) a post-graduate degree in biological sciences;]](http://indiankanoon.org/doc/1691257/) (h) “paediatrician” means a person who possesses a post-graduate qualification in paediatrics; 2[(i) “pre-natal diagnostic procedures” means all gynaecological or obstetrical or medical procedures such as ultrasonography, foetoscopy, taking or removing samples of amniotic fluid, chorionic villi, embryo, blood or any other tissue or fluid of a man, or of a woman before or after conception, for being sent to a Genetic Laboratory or Genetic Clinic for conducting any type of analysis or pre-natal diagnostic tests for selection of sex before or after conception;] (j) “pre-natal diagnostic techniques” includes all pre-natal diagnostic procedures and pre-natal diagnostic tests; 3[(k) “pre-natal diagnostic test” means ultrasonography or any test or analysis of amniotic fluid, chorionic villi, blood or any tissue or fluid of a pregnant woman or conceptus conducted to detect genetic or metabolic disorders or chromosomal abnormalities or congenital anomalies or haemoglobinopathies or sex- linked diseases;] (l) “prescribed” means prescribed by rules made under this Act; (m) “registered medical practitioner” means a medical practitioner who possesses any recognised medical qualification as defined in clause (h) of section 2 of the Indian Medical Council Act, 1956 (102 of 1956), and whose name has been entered in a State Medical Register; (n) “regulations” means regulations framed by the Board under this Act; 4[(o) “sex selection” includes any procedure, technique, test or administration or prescription or provision of anything for the purpose of ensuring or increasing the probability that an embryo will be of a particular sex; (p) “sonologist or imaging specialist” means a person who possesses any one of the medical qualifications recognised under the Indian Medical Council Act, 1956 (102 of 1956) or who possesses a post-graduate qualification in ultrasonography or imaging techniques or radiology; (q) “State Board” means a State Supervisory Board or a Union territory Supervisory Board constituted under section 16A; (r) “State Government” in relation to Union territory with Legislature means the Administrator of that Union territory appointed by the President under article 239 of the Constitution.] CHAPTER II REGULATION OF GENETIC COUNSELLING CENTRES, GENETIC LABORATORIES AND GENETIC CLINICS **3. Regulation of Genetic Counselling Centres, Genetic Laboratories and Genetic Clinics.—On** and from the commencement of this Act,— (1) no Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic unless registered under this Act, shall conduct or associate with, or help in, conducting activities relating to pre-natal diagnostic techniques; 1. Subs. by Act 14 of 2003, s. 4, for clause (g) (w.e.f. 14-2-2003). 2. Subs. by s. 4, ibid., for clause (i) (w.e.f. 14-2-2003). 3. Subs. by s. 4, ibid., for clause (k) (w.e.f. 14-2-2003). 4. Ins. by s. 4, ibid. (w.e.f. 14-2-2003). ----- 1[(2) no Genetic Counselling Centre or Genetic Laboratory or Genetic Clinic shall employ or cause to be employed or take services of any person, whether on honorary basis or on payment who does not possess the qualifications as may be prescribed;] (3) no medical geneticist, gynaecologist paediatrician registered medical practitioner or any other person shall conduct or cause to be conducted or aid in conducting by himself or through any other person, any pre-natal diagnostic techniques at a place other than a place registered under this Act. **2[3A. Prohibition of sex selection.—No person, including a specialist or a team of specialists in the** field of infertility, shall conduct or cause to be conducted or aid in conducting by himself or by any other person, sex selection on a woman or a man or on both or on any tissue, embryo, conceptus, fluid or gametes derived from either or both of them. **3B. Prohibition on sale of ultrasound machine, etc., to persons, laboratories, clinics, etc., not** **registered under the Act.—No person shall sell any ultrasound machine or imaging machine or scanner** or any other equipment capable of detecting sex of the foetus to any Genetic Counselling Centre, Genetic Laboratory, Genetic Clinic or any other person not registered under the Act.] CHAPTER III REGULATION OF PRE-NATAL DIAGNOSTIC TECHNIQUES **4. Regulation of pre-natal diagnostic techniques.—On and from the commencement of this Act,—** (1) no place including a registered Genetic Counselling Centre or Genetic Laboratory or Genetic Clinic shall be used or caused to be used by any person for conducting pre-natal diagnostic techniques except for the purposes specified in clause (2) and after satisfying any of the conditions specified in clause (3); (2) no pre-natal diagnostic techniques shall be conducted except for the purposes of detection of any of the following abnormalities, namely:— (i) chromosomal abnormalities; (ii) genetic metabolic diseases; (iii) haemoglobinopathies; (iv) sex-linked genetic diseases; (v) congenital anomalies; (vi) any other abnormalities or diseases as may be specified by the Central Supervisory Board; 3[(3) no pre-natal diagnostic techniques shall be used or conducted unless the person qualified to do so is satisfied for reasons to be recorded in writing that any of the following conditions are fulfilled, namely:— (i) age of the pregnant woman is above thirty-five years; (ii) the pregnant woman has undergone two or more spontaneous abortions or foetal loss; (iii) the pregnant woman had been exposed to potentially teratogenic agents such as drugs, radiation, infection or chemicals; (iv) the pregnant woman or her spouse has a family history of mental retardation or physical deformities such as, spasticity or any other genetic disease; (v) any other condition as may be specified by the Board: Provided that the person conducting ultrasonography on a pregnant woman shall keep complete record thereof in the clinic in such manner, as may be prescribed, and any deficiency or inaccuracy 1. Subs. by Act 14 of 2003, s. 5, for clause (2) (w.e.f. 14-2-2003). 2. Ins. by s. 6, ibid. (w.e.f. 14-2-2003). 3. Subs. by s. 7, ibid., for clauses (3) and (4) (w.e.f. 14-2-2003). ----- found therein shall amount to contravention of the provisions of section 5 or section 6 unless contrary is proved by the person conducting such ultrasonography; (4) no person including a relative or husband of the pregnant woman shall seek or encourage the conduct of any pre-natal diagnostic techniques on her except for the purposes specified in clause (2); (5) no person including a relative or husband of a woman shall seek or encourage the conduct of any sex selection technique on her or him or both.] **5. Written consent of pregnant woman and prohibition of communicating the sex of foetus.—(1)** No person referred to in clause (2) of section 3 shall conduct the pre-natal diagnostic procedures unless— (a) he has explained all known side and after effects of such procedures to the pregnant woman concerned; (b) he has obtained in the prescribed form her written consent to undergo such procedures in the language which she understands; and (c) a copy of her written consent obtained under clause (b) is given to the pregnant woman. 1[(2) No person including the person conducting pre-natal diagnostic procedures shall communicate to the pregnant woman concerned or her relatives or any other person the sex of the foetus by words, signs, or in any other manner.] **6. Determination of sex prohibited.—On and from the commencement of this Act,—** (a) no Genetic Counselling Centre or Genetic Laboratory or Genetic Clinic shall conduct or cause to be conducted in its Centre, Laboratory or Clinic, pre-natal diagnostic techniques including ultrasonography, for the purpose of determining the sex of a foetus; (b) no person shall conduct or cause to be conducted any pre-natal diagnostic techniques including ultrasonography for the purpose of determining the sex of a foetus; 2[(c) no person shall, by whatever means, cause or allow to be caused selection of sex before or after conception.] CHAPTER IV CENTRAL SUPERVISORY BOARD **7. Constitution of Central Supervisory Board.—(1) The Central Government shall constitute a** Board to be known as the Central Supervisory Board to exercise the powers and perform the functions conferred on the Board under this Act. (2) The Board shall consist of— (a) the Minister in charge of the Ministry or Department of Family Welfare, who shall be the Chairman, ex officio; (b) the Secretary to the Government of India in charge of the Department of Family Welfare, who shall be the Vice-Chairman, ex officio; 3[(c) three members to be appointed by the Central Government to represent the Ministries of Central Government in charge of Women and Child Development, Department of Legal Affairs or Legislative Department in the Ministry of Law and Justice, and Indian System of Medicine and Homoeopathy, ex officio;] (d) the Director General of Health Services of the Central Government, ex officio; (e) ten members to be appointed by the Central Government, two each from amongst— (i) eminent medical geneticists; 4[(ii) eminent gynaecologist and obstetrician or expert of stri-roga or prasuti-tantra.] 1. Subs. by Act 14 of 2003, s. 8, for sub-section (2) (w.e.f. 14-2-2003). 2. Ins. by s. 9, ibid. (w.e.f. 14-2-2003). 3. Subs. by s. 10, ibid., for clause (c) (w.e.f. 14-2-2003). 4. Subs. by s. 10, ibid., for sub-clause (ii) (w.e.f. 14-2-2003). ----- (iii) eminent paediatricians; (iv) eminent social scientists; and (v) representatives of women welfare organisations; (f) three women Members of Parliament, of whom two shall be elected by the House of the People and one by the Council of States; (g) four members to be appointed by the Central Government by rotation to represent the States and the Union territories, two in the alphabetical order and two in the reverse alphabetical order: Provided that no appointment under this clause shall be made except on the recommendation of the State Government or, as the case may be, the Union territory; (h) an officer, not below the rank of a Joint Secretary or equivalent of the Central Government, in charge of Family Welfare, who shall be the Member-Secretary, ex officio. **8. Term of office of members.—(1) The term of office of a member, other than an** _ex officio_ member, shall be,— (a) in case of appointment under clause (e) or clause (f) of sub-section (2) of section 7, three years: [1]*** 2[Provided that the term of office of a member elected under clause (f) of sub-section (2) of section 7 shall come to an end as soon as the member becomes a Minister or Minister of State or Deputy Minister, or the Speaker or the Deputy Speaker of the House of the People, or the Deputy Chairman of the Council of States or ceases to be a member of the House from which she was elected; and] (b) in case of appointment under clause (g) of the said sub-section, one year. (2) If a casual vacancy occurs in the office of any other members, whether by reason of his death, resignation or inability to discharge his functions owing to illness or other incapacity, such vacancy shall be filled by the Central Government by making a fresh appointment and the member so appointed shall hold office for the remainder of the term of office of the person in whose place he is so appointed. (3) The Vice-Chairman shall perform such functions as may be assigned to him by the Chairman from time to time. (4) The procedure to be followed by the members in the discharge of their functions shall be such as may be prescribed. **9. Meetings of the Board.—(1) The Board shall meet at such time and place, and shall observe such** rules of procedure in regard to the transaction of business at its meetings (including the quorum at such meetings) as may be provided by regulations: Provided that the Board shall meet at least once in six months. (2) The Chairman and in his absence the Vice-Chairman shall preside at the meetings of the Board. (3) If for any reason the Chairman or the Vice-Chairman is unable to attend any meeting of the Board, any other member chosen by the members present at the meeting shall preside at the meeting. (4) All questions which come up before any meeting of the Board shall be decided by a majority of the votes of the members present and voting, and in the event of an equality of votes, the Chairman, or in his absence, the person presiding, shall have and exercise a second or casting vote. (5) Members other than ex officio members shall receive such allowances, if any, from the Board as may be prescribed. **10. Vacancies, etc., not to invalidate proceedings of the Board.—No act or proceeding of the** Board shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Board; or (b) any defect in the appointment of a person acting as a member of the Board; or 1. The word “and” omitted by Act 32 of 2001, s. 2 (w.e.f. 3-9-2001). 2. Ins. by s. 2, ibid. (w.e.f. 3-9-2001). ----- (c) any irregularity in the procedure of the Board not affecting the merits of the case. **11. Temporary association of persons with the Board for particular purposes.—(1) The Board** may associate with itself, in such manner and for such purposes as may be determined by regulations, any person whose assistance or advice it may desire in carrying out any of the provisions of this Act. (2) A person associated with it by the Board under sub-section (1) for any purpose shall have a right to take part in the discussions relevant to that purpose, but shall not have a right to vote at a meeting of the Board and shall not be a member for any other purpose. **12. Appointment of officers and other employees of the Board.—(1) For the purpose of enabling it** efficiently to discharge its functions under this Act, the Board may, subject to such regulations as may be made in this behalf, appoint (whether on deputation or otherwise) such number of officers and other employees as it may consider necessary: Provided that the appointment of such category of officers, as may be specified in such regulations, shall be subject to the approval of the Central Government. (2) Every officer or other employee appointed by the Board shall be subject to such conditions of service and shall be entitled to such remuneration as may be specified in the regulations. **13. Authentication of orders and other instruments of the Board.—All orders and decisions of the** Board shall be authenticated by the signature of the Chairman or any other member authorised by the Board in this behalf, and all other instruments issued by the Board shall be authenticated by the signature of the Member-Secretary or any other officer of the Board authorised in like manner in this behalf. **14. Disqualifications for appointment as member.—A person shall be disqualified for being** appointed as a member if, he— (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or (d) has been removed or dismissed from the service of the Government or a Corporation owned or controlled by the Government; or (e) has, in the opinion of the Central Government, such financial or other interest in the Board as is likely to affect prejudicially the discharge by him of his functions as a member; or 1[(f) has, in the opinion of the Central Government, been associated with the use or promotion of pre-natal diagnostic technique for determination of sex or with any sex selection technique.] **15. Eligibility of member for reappointment.—Subject to the other terms and conditions of service** as may be prescribed, any person ceasing to be a member shall be eligible for reappointment as such member: 2[Provided that no member other than an _ex officio member shall be appointed for more than two_ consecutive terms.] 3[16. Functions of the Board.—The Board shall have the following functions, namely:— (i) to advise the Central Government on policy matters relating to use of pre-natal diagnostic techniques, sex selection techniques and against their misuse; (ii) to review and monitor implementation of the Act and rules made thereunder and recommend to the Central Government changes in the said Act and rules; (iii) to create public awareness against the practice of pre-conception sex selection and pre-natal determination of sex of foetus leading to female foeticide; 1. Subs. by Act 14 of 2003, s. 11, for clause (f) (w.e.f. 14-2-2003). 2. Ins. by s. 12, ibid. (w.e.f. 3-9-2001). 3. Subs. by s. 13, ibid., for section 16 (w.e.f. 14-2-2003). ----- (iv) to lay down code of conduct to be observed by persons working at Genetic Counselling Centres, Genetic Laboratories and Genetic Clinics; (v) to oversee the performance of various bodies constituted under the Act and take appropriate steps to ensure its proper and effective implementation; (vi) any other functions as may be prescribed under the Act.] **1[16A. Constitution of State Supervisory Board and Union territory Supervisory** **Board.—(1) Each State and Union territory having Legislature shall constitute a Board to be known as** the State Supervisory Board or the Union territory Supervisory Board, as the case may be, which shall have the following functions:— (i) to create public awareness against the practice of pre-conception sex selection and pre-natal determination of sex of the foetus leading to female foeticide in the State; (ii) to review the activities of the Appropriate Authorities functioning in the State and recommend appropriate action against them; (iii) to monitor the implementation of provisions of the Act and the rules and make suitable recommendations relating thereto, to the Board; (iv) to send such consolidated reports as may be prescribed in respect of the various activities undertaken in the State under the Act to the Board and the Central Government; and (v) any other functions as may be prescribed under the Act. (2) The State Board shall consist of,— (a) the Minister in charge of Health and Family Welfare in the State, who shall be the Chairperson, ex officio; (b) Secretary in charge of the Department of Health and Family Welfare who shall be the Vice-Chairperson, ex officio; (c) Secretaries or Commissioners in charge of Departments of Women and Child Development, Social Welfare, Law and Indian System of Medicines and Homoeopathy, _ex officio, or their_ representatives; (d) Director of Health and Family Welfare or Indian System of Medicines and Homoeopathy of the State Government, ex officio; (e) three women members of Legislative Assembly or Legislative Council; (f) ten members to be appointed by the State Government out of which two each shall be from the following categories,— (i) eminent social scientists and legal experts; (ii) eminent women activists from non- governmental organisations or otherwise; (iii) eminent gynaecologists and obstetricians or experts of stri-roga or prasuti-tantra; (iv) eminent paediatricians or medical geneticists; (v) eminent radiologists or sonologists; (g) an officer not below the rank of Joint Director in charge of Family Welfare, who shall be the Member Secretary, ex officio. (3) The State Board shall meet at least once in four months. (4) The term of office of a member, other than an ex officio member, shall be three years. (5) If a vacancy occurs in the office of any member other than an ex officio member, it shall be filled by making fresh appointment. 1. Ins. by Act 14 of 2003, s. 14 (w.e.f. 14-2-2003). ----- (6) If a member of the Legislative Assembly or member of the Legislative Council who is a member of the State Board, becomes Minister or Speaker or Deputy Speaker of the Legislative Assembly or Chairperson or Deputy Chairperson of the Legislative Council, she shall cease to be a member of the State Board. (7) One-third of the total number of members of the State Board shall constitute the quorum. (8) The State Board may co-opt a member as and when required, provided that the number of co-opted members does not exceed one-third of the total strength of the State Board. (9) The co-opted members shall have the same powers and functions as other members, except the right to vote and shall abide by the rules and regulations. (10) In respect of matters not specified in this section, the State Board shall follow procedures and conditions as are applicable to the Board.] CHAPTER V APPROPRIATE AUTHORITY AND ADVISORY COMMITTEE **17. Appropriate Authority and Advisory Committee.—(1) The Central Government shall appoint,** by notification in the Official Gazette, one or more Appropriate Authorities for each of the Union territories for the purposes of this Act. (2) The State Government shall appoint, by notification in the Official Gazette, one or more Appropriate Authorities for the whole or part of the State for the purposes of this Act having regard to the intensity of the problem of pre-natal sex determination leading to female foeticide. (3) The officers appointed as Appropriate Authorities under sub-section (1) or sub-section (2) shall be,— 1[(a) when appointed for the whole of the State or the Union territory, consisting of the following three members— (i) an officer of or above the rank of the Joint Director of Health and Family Welfare—Chairperson; (ii) an eminent woman representing women’s organisation; and (iii) an officer of Law Department of the State or the Union territory concerned: Provided that it shall be the duty of the State or the Union territory concerned to constitute multi-member State or Union territory level Appropriate Authority within three months of the coming into force of the Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Amendment Act, 2002 (14 of 2003): Provided further that any vacancy occurring therein shall be filled within three months of the occurrence.] (b) when appointed for any part of the State or the Union territory, of such other rank as the State Government or the Central Government, as the case may be, may deem fit. (4) The Appropriate Authority shall have the following functions, namely:— (a) to grant, suspend or cancel registration of a Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic; (b) to enforce standards prescribed for the Genetic Counselling Centre, Genetic Laboratory and Genetic Clinic; (c) to investigate complaints of breach of the provisions of this Act or the rules made thereunder and take immediate action; and (d) to seek and consider the advice of the Advisory Committee, constituted under sub-section (5), on application for registration and on complaints for suspension or cancellation of registration; 1. Subs. by Act 14 of 2003, s. 15, for clause (a) (w.e.f. 14-2-2003). ----- 1[(e) to take appropriate legal action against the use of any sex selection technique by any person at any place, suo motu or brought to its notice and also to initiate independent investigations in such matter; (f) to create public awareness against the practice of sex selection or pre-natal determination of sex; (g) to supervise the implementation of the provisions of the Act and rules; (h) to recommend to the Board and State Boards modifications required in the rules in accordance with changes in technology or social conditions; (i) to take action on the recommendations of the Advisory Committee made after investigation of complaint for suspension or cancellation of registration.] (5) The Central Government or the State Government, as the case may be, shall constitute an Advisory Committee for each Appropriate Authority to aid and advise the Appropriate Authority in the discharge of its functions, and shall appoint one of the members of the Advisory Committee to be its Chairman. (6) The Advisory Committee shall consist of— (a) three medical experts from amongst gynaecologists, obstericians, paediatricians and medical geneticists; (b) one legal expert; (c) one officer to represent the department dealing with information and publicity of the State Government or the Union territory, as the case may be; (d) three eminent social workers of whom not less than one shall be from amongst representatives of women’s organisations. 2[(7) No person who has been associated with the use or promotion of pre-natal diagnostic techniques for determination of sex or sex selection shall be appointed as a member of the Advisory Committee.] (8) The Advisory Committee may meet as and when it thinks fit or on the request of the Appropriate Authority for consideration of any application for registration or any complaint for suspension or cancellation of registration and to give advice thereon: Provided that the period intervening between any two meetings shall not exceed the prescribed period. (9) The terms and conditions subject to which a person may be appointed to the Advisory Committee and the procedure to be followed by such Committee in the discharge of its functions shall be such as may be prescribed. **3[17A. Powers of Appropriate Authorities.—The Appropriate Authority shall have the powers in** respect of the following matters, namely:— (a) summoning of any person who is in possession of any information relating to violation of the provisions of this Act or the rules made thereunder; (b) production of any document or material object relating to clause (a); (c) issuing search warrant for any place suspected to be indulging in sex selection techniques or pre-natal sex determination; and (d) any other matter which may be prescribed.] 1. Ins. by Act 14 of 2003, s. 15 (w.e.f. 14-2-2003). 2. Subs. by s. 15, ibid., for sub-section (7) (w.e.f. 14-2-2003). 3. Ins. by s. 16, ibid. (w.e.f. 14-2-2003). ----- CHAPTER VI REGISTRATION OF GENETIC COUNSELLING CENTRES, GENETIC LABORATORIES AND GENETIC CLINICS **18. Registration of Genetic Counselling Centres, Genetic Laboratories or Genetic** **Clinics.—[1][(1) No person shall open any Genetic Counselling Centre, Genetic Laboratory or Genetic** Clinic, including clinic, laboratory or centre having ultrasound or imaging machine or scanner or any other technology capable of undertaking determination of sex of foetus and sex selection, or render services to any of them, after the commencement of the Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Amendment Act, 2002 (14 of 2003) unless such Centre, Laboratory or Clinic is duly registered under the Act.] (2) Every application for registration under sub-section (1), shall be made to the Appropriate Authority in such form and in such manner and shall be accompanied by such fees as may be prescribed. (3) Every Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic engaged, either partly or exclusively, in counselling or conducting pre-natal diagnostic techniques for any of the purposes mentioned in section 4, immediately before the commencement of this Act, shall apply for registration within sixty days from the date of such commencement. (4) Subject to the provisions of section 6, every Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic engaged in counselling or conducting pre-natal diagnostic techniques shall cease to conduct any such counselling or technique on the expiry of six months from the date of commencement of this Act unless such Centre, Laboratory or Clinic has applied for registration and is so registered separately or jointly or till such application is disposed of, whichever is earlier. (5) No Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic shall be registered under this Act unless the Appropriate Authority is satisfied that such Centre, Laboratory or Clinic is in a position to provide such facilities, maintain such equipment and standards as may be prescribed. **19. Certificate of registration.—(1) The Appropriate Authority shall, after holding an inquiry and** after satisfying itself that the applicant has complied with all the requirements of this Act and the rules made thereunder and having regard to the advice of the Advisory Committee in this behalf, grant a certificate of registration in the prescribed form jointly or separately to the Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic, as the case may be. (2) If, after the inquiry and after giving an opportunity of being heard to the applicant and having regard to the advice of the Advisory Committee, the Appropriate Authority is satisfied that the applicant has not complied with the requirements of this Act or the rules, it shall, for reasons to be recorded in writing, reject the application for registration. (3) Every certificate of registration shall be renewed in such manner and after such period and on payment of such fees as may be prescribed. (4) The certificate of registration shall be displayed by the registered Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic in a conspicuous place at its place of business. **20. Cancellation or suspension of registration.—(1) The Appropriate Authority may suo motu, or** on complaint, issue a notice to the Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic to show cause why its registration should not be suspended or cancelled for the reasons mentioned in the notice. (2) If, after giving a reasonable opportunity of being heard to the Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic and having regard to the advice of the Advisory Committee, the Appropriate Authority is satisfied that there has been a breach of the provisions of this Act or the rules, it may, without prejudice to any criminal action that it may take against such Centre, Laboratory or Clinic, suspend its registration for such period as it may think fit or cancel its registration, as the case may be. (3) Notwithstanding anything contained in sub-sections (1) and (2), if the Appropriate Authority is of the opinion that it is necessary or expedient so to do in the public interest, it may, for reasons to be recorded in writing, suspend the registration of any Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic without issuing any such notice referred to in sub-section (1). 1. Subs. by Act 14 of 2003, s. 17, for sub-section (1) (w.e.f. 14-2-2003). ----- **21. Appeal.—The Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic may, within** thirty days from the date of receipt of the order of suspension or cancellation of registration passed by the Appropriate Authority under section 20, prefer an appeal against such order to— (i) the Central Government, where the appeal is against the order of the Central Appropriate Authority; and (ii) the State Government, where the appeal is against the order of the State Appropriate Authority, in the prescribed manner. CHAPTER VII OFFENCES AND PENALTIES **1[22. Prohibition of advertisement relating to pre-conception and pre-natal determination of sex** **and punishment for contravention.—(1) No person, organisation, Genetic Counselling Centre, Genetic** Laboratory or Genetic Clinic including clinic, laboratory or centre having ultrasound machine or imaging machine or scanner or any other technology capable of undertaking determination of sex of the foetus or sex selection shall issue, publish, distribute, communicate or cause to be issued, published, distributed or communicated any advertisement, in any form, including internet, regarding facilities of pre-natal determination of sex or sex selection before conception available at such Centre, Laboratory, Clinic or at any other place. (2) No person or organisation including Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic shall issue, publish, distribute, communicate or cause to be issued, published, distributed or communicated any advertisement in any manner regarding pre-natal determination or pre-conception selection of sex by any means whatsoever, scientific or otherwise. (3) Any person who contravenes the provisions of sub-section (1) or sub-section (2) shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to ten thousand rupees. _Explanation.—For the purposes of this section, “advertisement” includes any notice, circular, label,_ wrapper or any other document including advertisement through internet or any other media in electronic or print form and also includes any visible representation made by means of any hoarding, wall-painting, signal, light, sound, smoke or gas.] **23. Offences and penalties.—(1) Any medical geneticist, gynaecologist, registered medical** practitioner or any person who owns a Genetic Counselling Centre, a Genetic Laboratory or a Genetic Clinic or is employed in such a Centre, Laboratory or Clinic and renders his professional or technical services to or at such a Centre, Laboratory or Clinic, whether on an honorary basis or otherwise, and who contravenes any of the provisions of this Act or rules made thereunder shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to ten thousand rupees and on any subsequent conviction, with imprisonment which may extend to five years and with fine which may extend to fifty thousand rupees. 2[(2) The name of the registered medical practitioner shall be reported by the Appropriate Authority to the State Medical Council concerned for taking necessary action including suspension of the registration if the charges are framed by the court and till the case is disposed of and on conviction for removal of his name from the register of the Council for a period of five years for the first offence and permanently for the subsequent offence. (3) Any person who seeks the aid of any Genetic Counselling Centre, Genetic Laboratory, Genetic Clinic or ultrasound clinic or imaging clinic or of a medical geneticist, gynaecologist, sonologist or imaging specialist or registered medical practitioner or any other person for sex selection or for conducting pre-natal diagnostic techniques on any pregnant women for the purposes other than those specified in sub-section (2) of section 4, he shall, be punishable with imprisonment for a term which may extend to three years and with fine which may extend to fifty thousand rupees for the first offence and for any subsequent offence with imprisonment which may extend to five years and with fine which may extend to one lakh rupees. 1. Subs. by Act 14 of 2003, s. 18, for section 22 (w.e.f. 14-2-2003). 2. Subs. by s. 19, ibid., for sub-sections (2) and (3) (w.e.f. 14-2-2003). ----- (4) For the removal of doubts, it is hereby provided that the provisions of sub-section (3) shall not apply to the woman who was compelled to undergo such diagnostic techniques or such selection.] 1[24. Presumption in the case of conduct of pre-natal diagnostic techniques.—Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), the court shall presume unless the contrary is proved that the pregnant woman was compelled by her husband or any other relative, as the case may be, to undergo pre-natal diagnostic technique for the purposes other than those specified in sub-section (2) of section 4 and such person shall be liable for abetment of offence under sub-section (3) of section 23 and shall be punishable for the offence specified under that section.] **25. Penalty for contravention of the provisions of the Act or rules for which no specific** **punishment is provided.—Whoever contravenes any of the provisions of this Act or any rules made** thereunder, for which no penalty has been elsewhere provided in this Act, shall be punishable with imprisonment for a term which may extend to three months or with fine, which may extend to one thousand rupees or with both and in the case of continuing contravention with an additional fine which may extend to five hundred rupees for every day during which such contravention continues after conviction for the first such contravention. **26. Offences by companies.—(1) Where any offence, punishable under this Act has been committed** by a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence punishable under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals, and (b) “director”, in relation to a firm, means a partner in the firm. **27. Offence to be cognizable, non-bailable and non-compoundable.—Every offence under this Act** shall be cognizable, non-bailable and non-compoundable. **28. Cognizance of offences.—(1) No court shall take cognizance of an offence under this Act except** on a complaint made by— (a) the Appropriate Authority concerned, or any officer authorised in this behalf by the Central Government or State Government, as the case may be, or the Appropriate Authority; or (b) a person who has given notice of not less than [2][fifteen days] in the manner prescribed, to the Appropriate Authority, of the alleged offence and of his intention to make a complaint to the court. _Explanation.—For the purpose of this clause, “person” includes a social organisation._ (2) No court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. (3) Where a complaint has been made under clause (b) of sub-section (1), the court may, on demand by such person, direct the Appropriate Authority to make available copies of the relevant records in its possession to such person. 1. Subs. by Act 14 of 2003, s. 20, for section 24 (w.e.f. 14-2-2003). 2. Subs. by s. 21, ibid., for “thirty days” (w.e.f. 14-2-2003). ----- CHAPTER VIII MISCELLANEOUS **29. Maintenance of records.—(1) All records, charts, forms, reports, consent letters and all other** documents required to be maintained under this Act and the rules shall be preserved for a period of two years or for such period as may be prescribed: Provided that, if any criminal or other proceedings are instituted against any Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic, the records and all other documents of such Centre, Laboratory or Clinic shall be preserved till the final disposal of such proceedings. (2) All such records shall, at all reasonable times, be made available for inspection to the Appropriate Authority or to any other person authorised by the Appropriate Authority in this behalf. **30. Power to search and seize records, etc.—[1][(1) If the Appropriate Authority has reason to** believe that an offence under this Act has been or is being committed at any Genetic Counselling Centre, Genetic Laboratory, Genetic Clinic or any other place, such Authority or any officer authorised in this behalf may, subject to such rules as may be prescribed, enter and search at all reasonable times with such assistance, if any, as such Authority or officer considers necessary, such Genetic Counselling Centre, Genetic Laboratory, Genetic Clinic or any other place and examine any record, register, document, book, pamphlet, advertisement or any other material object found therein and seize and seal the same if such Authority or officer has reason to believe that it may furnish evidence of the commission of an offence punishable under this Act.] (2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches and seizures shall, so far as may be, apply to every search or seizure made under this Act. **31. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central or the State Government or the Appropriate Authority or any officer authorised by the Central or State Government or by the Authority for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act. **2[31A. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of the** Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Amendment Act, 2002 (14 of 2003), the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of the said Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of three years from the date of commencement of the Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Amendment Act, 2002 (14 of 2003). (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.] **32. Power to make rules.—(1) The Central Government may make rules for carrying out the** provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for— 3[(i) the minimum qualifications for persons employed at a registered Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic under clause (2) of section 3; (ia) the manner in which the person conducting ultrasonography on a pregnant woman shall keep record thereof in the clinic under the proviso to sub-section (3) of section 4;] (ii) the form in which consent of a pregnant woman has to be obtained under section 5; (iii) the procedure to be followed by the members of the Central Supervisory Board in the discharge of their functions under sub-section (4) of section 8; 1. Subs. by Act 14 of 2003, s. 22, for sub-section (1) (w.e.f. 14-2-2003). 2. Ins. by s. 23, ibid. (w.e.f. 14-2-2003). 3. Subs. by s. 24, ibid., for clause (i) (w.e.f. 14-2-2003). ----- (iv) allowances for members other than _ex officio members admissible under sub-section (5) of_ section 9; 1[(iva) code of conduct to be observed by persons working at Genetic Counselling Centres, Genetic Laboratories and Genetic Clinics to be laid down by the Central Supervisory Board under clause (iv) of section 16; (ivb) the manner in which reports shall be furnished by the State and Union territory Supervisory Boards to the Board and the Central Government in respect of various activities undertaken in the State under the Act under clause (iv) of sub-section (1) of section 16A; (ivc) empowering the Appropriate Authority in any other matter under clause (d) of section 17A;] (v) the period intervening between any two meetings of the Advisory Committee under the proviso to sub-section (8) of section 17; (vi) the terms and conditions subject to which a person may be appointed to the Advisory Committee and the procedure to be followed by such Committee under sub-section (9) of section 17; (vii) the form and manner in which an application shall be made for registration and the fee payable thereof under sub-section (2) of section 18; (viii) the facilities to be provided, equipment and other standards to be maintained by the Genetic Counselling Centre, Genetic Laboratory or Genetic Clinic under sub-section (5) of section 18; (ix) the form in which a certificate of registration shall be issued under sub-section (1) of section 19; (x) the manner in which and the period after which a certificate of registration shall be renewed and the fee payable for such renewal under sub-section (3) of section 19; (xi) the manner in which an appeal may be preferred under section 21; (xii) the period up to which records, charts, etc., shall be preserved under sub-section (1) of section 29; (xiii) the manner in which the seizure of documents, records, objects, etc., shall be made and the manner in which seizure list shall be prepared and delivered to the person from whose custody such documents, records or objects were seized under sub-section (1) of section 30; (xiv) any other matter that is required to be, or may be, prescribed. **33. Power to make regulations.—The Board may, with the previous sanction of the Central** Government, by notification in the Official Gazette, make regulations not inconsistent with the provisions of this Act and the rules made thereunder to provide for— (a) the time and place of the meetings of the Board and the procedure to be followed for the transaction of business at such meetings and the number of members which shall form the quorum under sub-section (1) of section 9; (b) the manner in which a person may be temporarily associated with the Board under sub-section (1) of section 11; (c) the method of appointment, the conditions of service and the scales of pay and allowances of the officer and other employees of the Board appointed under section 12; (d) generally for the efficient conduct of the affairs of the Board. **34. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. 1. Ins. by Act 14 of 2003, s. 24 (w.e.f. 14-2-2003). -----
30-Sep-1994
58
The Babasaheb Bhimrao Ambedkar University Act, 1994
https://www.indiacode.nic.in/bitstream/123456789/1961/1/199458.pdf
central
# THE BABASAHEB BHIMRAO AMBEDKAR UNIVERSITY ACT, 1994 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. The University. 4. Objects of the University. 5. Powers of the University. 6. Jurisdiction. 7. University open to all classes, castes and creed. 8. Residence of students. 9. The Visitor. 10. Officers of the University. 11. The Chancellor. 12. The Vice-Chancellor. 13. The Pro-Vice-Chancellors. 14. Deans of Schools. 15. The Registrar. 16. The Finance Officer. 17. Other officers. 18. Authorities of the University. 19. The Board of Management. 20. The Academic Council. 21. The Planning Board. 22. The Boards of Schools. 23. The Finance Committee. 24. Other authorities of the University. 25. Power to make Statutes. 26. Statutes how to be made. 27. Power to make Ordinances. 28. Regulations. 29. Annual report. 30. Annual accounts. 31. Conditions of service of employees. 32. Procedure of appeal and arbitration in disciplinary cases against students. 33. Right to appeal. 34. Provident and pension funds. 35. Disputes as to constitution of University authorities and bodies. 36. Constitution of Committees. 37. Filling of casual vacancies. 38. Proceedings of University authorities or bodies not invalidated by vacancies. 39. Protection of action taken in good faith. 40. Mode of proof of University record. 41. Power to remove difficulties. 1 ----- SECTIONS 42. Transitional provisions. 43. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. THE FIRST SCHEDULE. THE SECOND SCHEDULE. 2 ----- # THE BABASAHEB BHIMRAO AMBEDKAR UNIVERSITY ACT, 1994 ACT NO. 58 OF 1994 [30th September, 1994.] # An Act to establish and incorporate a teaching and residential University in the State of Uttar Pradesh and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Babasaheb Bhimrao Ambedkar** University Act, 1994. [(2) It shall come into force on such date[1] as the Central Government may, by notification in the](http://indiankanoon.org/doc/560748/) Official Gazette, appoint. **[2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise](http://indiankanoon.org/doc/1901960/)** requires,— [(a) “Academic Council” means the Academic Council of the University;](http://indiankanoon.org/doc/1420425/) [(b) “academic staff” means such categories of staff as are designated as academic staff by the](http://indiankanoon.org/doc/330685/) Ordinances; [(c) “Board of Management” means the Board of Management of the University;](http://indiankanoon.org/doc/1662535/) [(d) “Board of Studies” means the Board of Studies of the University;](http://indiankanoon.org/doc/361610/) [(e) “Chancellor”, “Vice-Chancellor” and “Pro-Vice-Chancellor” mean, respectively, the](http://indiankanoon.org/doc/628862/) Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; [(f) “College” means a College maintained by the University;](http://indiankanoon.org/doc/1539109/) [(g) “Department” means a Department of Studies; and includes a Centre of Studies;](http://indiankanoon.org/doc/1462711/) [(h) “distance education system” means the system of imparting education through any means of](http://indiankanoon.org/doc/503254/) communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more such means; [(i) “employee” means any person appointed by the University; and includes teachers and other](http://indiankanoon.org/doc/1908474/) staff of the University; [(j) “Finance Committee” means the Finance Committee of the University;](http://indiankanoon.org/doc/293631/) [(k) “Hall” means a unit of residence or of corporate life for the students of the University, or of a](http://indiankanoon.org/doc/1323079/) College or of an Institution, maintained by the University; [(l) “Institution” means an academic institution, not being a College, maintained by the University;](http://indiankanoon.org/doc/880297/) [(m) “Planning Board” means the Planning Board of the University;](http://indiankanoon.org/doc/708194/) [(n) “Principal” means the Head of a College or an Institution maintained by the University, and](http://indiankanoon.org/doc/881326/) includes, where there is no Principal, the person for the time being duly appointed to act as Principal, and, in the absence of the Principal or the acting Principal, a Vice-Principal duly appointed as such; [(o) “recognised institution” means an institution of higher learning recognised by the University;](http://indiankanoon.org/doc/941729/) [(p) “recognised teachers” means such persons as may be recognised by the University for the](http://indiankanoon.org/doc/1781039/) purpose of imparting instructions in a College or an Institution maintained by the University; 1. 10th January 1996, vide notification No. S.O. 18(E), dated 5th January, 1996, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- [(q) “Regulations” means the Regulations made by any authority of the University under this Act](http://indiankanoon.org/doc/1439/) for the time being in force; [(r) “School” means a School of Studies of the University;](http://indiankanoon.org/doc/1280954/) [(s) “Statutes” and “Ordinances” mean, respectively, the Statutes and Ordinances of the University](http://indiankanoon.org/doc/639628/) for the time being in force; [(t) “teachers of the University” means Professors, Readers, Lecturers and such other persons as](http://indiankanoon.org/doc/109708/) may be appointed for imparting instruction or conducting research in the University or in any College or Institution maintained by the University and are designated as teachers by the Ordinances; [(u) “University” means the Babasaheb Bhimrao Ambedkar University established under this Act.](http://indiankanoon.org/doc/1459967/) **[3. The University.—(1) There shall be established a University by the name of “Babasaheb Bhimrao](http://indiankanoon.org/doc/1158634/)** Ambedkar University”. [(2) The headquarters of the University shall be at Lucknow and it may also establish campuses at](http://indiankanoon.org/doc/589202/) such other places within its jurisdiction as it may deem fit. [(3) The first Vice-Chancellor and the first members of the Board of Management, or the Academic](http://indiankanoon.org/doc/227775/) Council or the Planning Board and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, are hereby constituted a body corporate by the name of “Babasaheb Bhimrao Ambedkar University”. [(4) The University shall have perpetual succession and a common seal and shall sue and be sued by](http://indiankanoon.org/doc/1091350/) the said name. **[4. Objects of the University.—The objects of the University shall be to promote advanced](http://indiankanoon.org/doc/459622/)** knowledge by providing instructional and research facilities in such branches of learning as it may deem fit, to make provisions for integrated courses in Science and key and frontier areas of Technology and other allied disciplines in the educational programmes of the University; to offer appropriate courses relevant for the development of socially and economically depressed sections of the people, including agricultural technology and rural crafts; to promote the study of the principles for which Babasaheb Bhimrao Ambedkar worked during his life time, namely, national integration, social justice and democratic way of life, and also study of the Constitutions of the world to take appropriate measures for promoting innovations in teaching-learning processes in inter-disciplinary studies and research and pay special attention to the promotion of educational and economic interests and welfare of the people in general and of members belonging to the Scheduled Castes and the Scheduled Tribes in particular by providing adequate percentage of seats for the Scheduled Castes and the Scheduled Tribes and the University shall, in organising its activities, have due regard to the objects specified in the First Schedule. **[5. Powers of the University.—The University shall have the following powers, namely:—](http://indiankanoon.org/doc/1082970/)** [(i) to provide for instruction in such branches of learning as the University may, from time to](http://indiankanoon.org/doc/1000113/) time, determine and to make provision for research and for the advancement and dissemination of knowledge; [(ii) to grant, subject to such conditions as the University may determine, diplomas or certificates](http://indiankanoon.org/doc/1829409/) to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing on, persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; [(iii) to organise and to undertake extra-mural studies, training and extension services;](http://indiankanoon.org/doc/698918/) [(iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes;](http://indiankanoon.org/doc/710219/) [(v) to provide facilities through the distance education system to such persons as it may](http://indiankanoon.org/doc/1298862/) determine; [(vi) to institute Principalships, Professorships, Readerships, Lecturerships and other teaching or](http://indiankanoon.org/doc/372355/) academic positions, required by the University and to appoint persons to such Principalships, Professorships, Readerships, Lecturerships or other teaching on academic positions; 4 ----- [(vii) to recognise an institution of higher learning for such purposes as the University may](http://indiankanoon.org/doc/1835723/) determine and to withdraw such recognition; [(viii) to recognise persons for imparting instructions in any College or Institution maintained by](http://indiankanoon.org/doc/227736/) the University; [(ix) to appoint persons working in any other University or organisation as teacher of the](http://indiankanoon.org/doc/1060019/) University for a specified period; [(x) to create administrative, ministerial and other posts and to make appointments thereto;](http://indiankanoon.org/doc/368359/) [(xi) to co-operate or collaborate or associate with any other University or authority or institution](http://indiankanoon.org/doc/1881649/) of higher learning in such manner and for such purposes as the University may determine; [(xii) to establish such campuses, special centres, specialised laboratories or other units for](http://indiankanoon.org/doc/1676911/) research and instruction as are, in the opinion of the University, necessary for the furtherance of its objects; [(xiii) to institute and award fellowships, scholarships, studentships, medals and prizes;](http://indiankanoon.org/doc/655901/) [(xiv) to establish and maintain Colleges, Institutions and Halls;](http://indiankanoon.org/doc/1703492/) [(xv) to make provision for research and advisory services and for that purpose to enter into such](http://indiankanoon.org/doc/105905/) arrangements with other institutions, industrial or other organisations, as the University may deem necessary; [(xvi) to organise and conduct refresher courses, orientation courses, workshops, seminars and](http://indiankanoon.org/doc/662591/) other programmes for teachers, evaluators and other academic staff; [(xvii) to make special arrangements in respect of the residence discipline and teaching of women](http://indiankanoon.org/doc/1550617/) students as the University may consider desirable; [(xviii) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants,](http://indiankanoon.org/doc/309990/) Scholars and such other persons who may contribute to the advancement of the objects of the University; [(xix) to confer autonomous status on a College or an Institution or a Department, as the case may](http://indiankanoon.org/doc/1162448/) be, in accordance with the Statutes; [(xx) to determine standards of admission to the University which may include examination,](http://indiankanoon.org/doc/760920/) evaluation or any other method of testing; [(xxi) to fix quota for students belonging to the Scheduled Castes and the Scheduled Tribes for](http://indiankanoon.org/doc/1586914/) admission purposes; [(xxii) to demand and receive payment of fees and other charges;](http://indiankanoon.org/doc/612414/) [(xxiii) to supervise the residences of the students of the University and to make arrangements for](http://indiankanoon.org/doc/662802/) promoting their health and general welfare; [(xxiv) to lay down conditions of service of all categories of employees, including their code of](http://indiankanoon.org/doc/310835/) conduct; [(xxv) to regulate and enforce discipline among the students and the employees, and to take such](http://indiankanoon.org/doc/1298115/) disciplinary measures in this regard as may be deemed by the University to be necessary; [(xxvi) to make arrangements for promoting the health and general welfare of the employees;](http://indiankanoon.org/doc/1090772/) [(xxvii) to receive benefactions, donations and gifts and to acquire, hold, mange and dispose of any](http://indiankanoon.org/doc/31650/) property, movable or immovable including trust and endowment properties for the purposes of the University; [(xxviii) to borrow, with the prior approval of the Central Government, on the security of the](http://indiankanoon.org/doc/147932/) property of the University, money for the purposes of the University; 5 ----- [(xxix) to do all such other acts and things as may be necessary, incidental or conducive to the](http://indiankanoon.org/doc/548206/) attainment of all or any of its objects. **6. Jurisdiction.—The jurisdiction of the University shall extend to the whole of the State of Uttar** Pradesh. **7. University open to all classes, castes and creed.—The University shall be open to all persons of** either sex and of whatever caste, creed, race, class, place of domicile and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or promotion of educational interests of women, physically handicapped or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **8. Residence of students.—Every student of the University (other than a student who pursues a** course of study by distance education system) shall normally reside in a Hall or hostel or under such conditions as may be prescribed by the Ordinances. **[9. The Visitor.—(1) The President of India shall be the Visitor of the University.](http://indiankanoon.org/doc/1588624/)** [(2) The Visitor may, from time to time, appoint one or more persons to review the work and progress](http://indiankanoon.org/doc/81530/) of the University, including Colleges and Institutions managed by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Board of Management thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct of the University, its buildings, laboratories and equipment, and of any College or Institution maintained by the University and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, Colleges or Institutions. [(4) The Visitor shall, in every matter referred to in sub-section (2), give notice of his intention to](http://indiankanoon.org/doc/1806509/) cause an inspection or inquiry to be made to the University and the University shall have the right to make such representations to the Visitor, as it may consider necessary. [(5) After considering the representations, if any, made by the University, the Visitor may cause to be](http://indiankanoon.org/doc/302873/) made such inspection or inquiry as is referred to in sub-section (3). [(6) Where any inspection or inquiry has been caused to be made by the Visitor, the University shall](http://indiankanoon.org/doc/340713/) be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. [(7) The Visitor may, if the inspection or inquiry is made in respect of the University or any College or](http://indiankanoon.org/doc/106653/) Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate to the Board of Management the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. [(8) The Board of Management shall communicate, through the Vice-Chancellor, to the Visitor such](http://indiankanoon.org/doc/233943/) action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. [(9) Where, the Board of Management does not, within a reasonable time, take action to the](http://indiankanoon.org/doc/1306812/) satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Board of Management, issue such directions as he may think fit and the Board of Management shall comply with such directions. 6 ----- [(10) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in](http://indiankanoon.org/doc/52252/) writing, annul any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. [(11) The Visitor shall have such other powers as may be prescribed by the Statues.](http://indiankanoon.org/doc/11180/) **10. Officers of the University.—The following shall be the officers of the University:—** [(1) the Chancellor;](http://indiankanoon.org/doc/371718/) [(2) the Vice-Chancellor;](http://indiankanoon.org/doc/1245320/) [(3) the Pro-Vice-Chancellors;](http://indiankanoon.org/doc/1497666/) [(4) the Deans of Schools;](http://indiankanoon.org/doc/1726618/) [(5) the Registrar;](http://indiankanoon.org/doc/194295/) [(6) the Finance Officer; and](http://indiankanoon.org/doc/1250638/) [(7) such other officers as may be declared by the Statutes to be officers of the University.](http://indiankanoon.org/doc/216669/) **[11. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be](http://indiankanoon.org/doc/1016214/)** prescribed by the Statutes. [(2) The Chancellor shall, by virtue of his office, be the head of the University.](http://indiankanoon.org/doc/647216/) [(3) The Chancellor shall, if present, preside at the convocation of the University held for conferring](http://indiankanoon.org/doc/24267/) degrees, and may be delegated such powers as may be necessary. **[12. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such](http://indiankanoon.org/doc/182514/)** manner as may be prescribed by the Statutes. [(2) The Vice-Chancellor shall be the principal executive and academic head of the University and](http://indiankanoon.org/doc/1353892/) shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. [(3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter,](http://indiankanoon.org/doc/1109805/) exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matter: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the Board of Management within three months from the date on which decision on such action is communicated to him and thereupon the Board of Management may confirm, modify or reverse the action taken by the Vice-Chancellor. [(4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is](http://indiankanoon.org/doc/1650712/) beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. [(5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be](http://indiankanoon.org/doc/146346/) prescribed by the Statutes or the Ordinances. **[13. The Pro-Vice-Chancellors.—One or more Pro-Vice-Chancellors shall be appointed in such](http://indiankanoon.org/doc/1142853/)** manner and shall exercise such powers and perform such duties as may be prescribed by the Statutes. 7 ----- **[14. Deans of Schools.—Every Dean of a School shall be appointed in such manner and shall exercise](http://indiankanoon.org/doc/86362/)** such powers and perform such duties as may be prescribed by the Statutes. **[15. The Registrar.—(1) The Registrar shall be appointed in such manner as may be prescribed by the](http://indiankanoon.org/doc/1165627/)** Statutes. [(2) The Registrar shall have the power to enter into agreement, sign documents and authenticate](http://indiankanoon.org/doc/1465971/) records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **[16. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise](http://indiankanoon.org/doc/1597484/)** such powers and perform such duties as may be prescribed by the Statutes. **[17. Other officers.—The manner of appointment and powers and duties of the other officers of the](http://indiankanoon.org/doc/145685/)** University shall be prescribed by the Statutes. **[18. Authorities of the University.—The following shall be the authorities of the University,](http://indiankanoon.org/doc/576226/)** namely:— [(1) the Board of Management;](http://indiankanoon.org/doc/1392934/) [(2) the Academic Council;](http://indiankanoon.org/doc/1944694/) [(3) the Planning Board;](http://indiankanoon.org/doc/1626449/) [(4) the Boards of Studies;](http://indiankanoon.org/doc/654945/) [(5) the Finance Committee; and](http://indiankanoon.org/doc/396434/) [(6) such other authorities as may be declared by the Statutes to be the authorities of the](http://indiankanoon.org/doc/320072/) University. **[19. The Boards of Management.—(1) The Board of Management shall be the principal executive](http://indiankanoon.org/doc/821381/)** body of the University. [(2) The constitution of the Board of Management, the term of office of its members and its powers](http://indiankanoon.org/doc/1780039/) and functions shall be prescribed by the Statutes: Provided that the Board of Management shall also have representatives of the House of the People and the Council of States, the Government of India, the University Grants Commission and the teaching community. **[20. The Academic Council.—(1) The Academic Council shall be the principal academic body of the](http://indiankanoon.org/doc/1632647/)** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. [(2) The constitution of the Academic Council, the term of office of its members and its powers and](http://indiankanoon.org/doc/1158674/) functions shall be prescribed by the Statutes: Provided that representation shall be given to students also. **[21. The Planning Board.—(1) The Planning Board shall be the principal planning body of the](http://indiankanoon.org/doc/1746407/)** University. [(2) The constitution of the Planning Board, term of office of its members and its powers and functions](http://indiankanoon.org/doc/1340066/) shall be prescribed by the Statutes: Provided that representation shall be given to non-teaching staff. **[22. The Boards of Schools.—The constitution, powers and functions of the Boards of Schools shall](http://indiankanoon.org/doc/1284444/)** be prescribed by the Statutes. **[23. The Finance Committee.—The constitution, powers and functions of the Finance Committee](http://indiankanoon.org/doc/94000/)** shall be prescribed by the Statutes. 8 ----- **[24. Other authorities of the University.—The constitution, powers and functions of other](http://indiankanoon.org/doc/162203/)** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **[25. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all](http://indiankanoon.org/doc/932787/)** or any of the following matters, namely:— [(a) the constitution, powers and functions of the authorities and other bodies of the University, as](http://indiankanoon.org/doc/1637198/) may be constituted from time to time; [(b) the election and continuance in office of the members of the said authorities and bodies, the](http://indiankanoon.org/doc/979430/) filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; [(c) the appointment, powers and duties of the officers of the University and their emoluments;](http://indiankanoon.org/doc/542113/) [(d) the appointment of teachers, academic staff and other employees of the University, their](http://indiankanoon.org/doc/1191218/) emoluments and other conditions of service; [(e) the appointment of teachers, academic staff working in any other University or organisation](http://indiankanoon.org/doc/572215/) for a specific period for undertaking a joint project; [(f) the conditions of service of employees including provision for pension, insurance and](http://indiankanoon.org/doc/1464207/) provident fund, the manner of termination of service and disciplinary action; [(g) the principles governing the seniority of service of the employees or students and the](http://indiankanoon.org/doc/1527263/) University; [(h) the procedure for arbitration in cases of dispute between employees or students and the](http://indiankanoon.org/doc/1507131/) University; [(i) the procedure for appeal to the Board of Management by any employee or student against the](http://indiankanoon.org/doc/135538/) action of any officer or authority of the University; [(j) the conferment of autonomous status on a College or an Institution or a Department;](http://indiankanoon.org/doc/1057731/) [(k) the establishment and abolition of Schools, Departments, Centres, Halls, Colleges and](http://indiankanoon.org/doc/1045793/) Institutions; [(l) the conferment of honorary degrees;](http://indiankanoon.org/doc/1562067/) [(m) the withdrawal of degrees, diplomas, certificates and other academic distinctions;](http://indiankanoon.org/doc/885601/) [(n) the institution of fellowships, scholarships, studentships, medals and prizes;](http://indiankanoon.org/doc/1544172/) [(o) the delegation of powers vested in the authorities or officers of the University;](http://indiankanoon.org/doc/1775130/) [(p) the maintenance of the discipline among the employees and students;](http://indiankanoon.org/doc/1375112/) [(q) all other matters which by this Act are to be or may be provided for by the Statutes.](http://indiankanoon.org/doc/977195/) **[26. Statutes how to be made.—(1) The first Statutes are those set out in the Second Schedule.](http://indiankanoon.org/doc/1047641/)** [(2) The Board of Management may, from time to time, make new or additional Statutes or may](http://indiankanoon.org/doc/453867/) amend or repeal the Statutes referred to in sub-section (1): Provided that the Board of Management shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Board of Management. [(3) Every new Statutes or addition to the Statutes or any amendment or repeal of a Statute shall](http://indiankanoon.org/doc/51287/) require the assent of the Visitor who may assent thereto or withhold assent or remit to the Board of Management for reconsideration. [(4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless](http://indiankanoon.org/doc/1731500/) it has been assented to by the Visitor. 9 ----- [(5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor, in exceptional](http://indiankanoon.org/doc/267815/) circumstances, may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Board of Management is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Board of Management for its inability to comply with such direction, make or amend the Statutes suitably. **[27. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the](http://indiankanoon.org/doc/356406/)** Ordinances may provide for all or any of the following matters namely:— [(a) the admission of students to the University and their enrolment as such;](http://indiankanoon.org/doc/1086913/) [(b) the courses of study to be laid down for all degrees, diplomas and certificates of the](http://indiankanoon.org/doc/493863/) University; [(c) the medium of instruction and examination;](http://indiankanoon.org/doc/1985245/) [(d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications](http://indiankanoon.org/doc/563382/) for the same and the means to be taken relating to the granting and obtaining of the same; [(e) the fees to be charged for courses of study in the University and for admission to the](http://indiankanoon.org/doc/47348/) examinations, degrees and diplomas of the University; [(f) the conditions for award of fellowships, scholarships, studentships, medals and prizes;](http://indiankanoon.org/doc/106252/) [(g) the conduct of examinations, including the term of office and manner of appointment and the](http://indiankanoon.org/doc/767996/) duties of examining bodies, examiners and moderators; [(h) the conditions of residence of the students of the University;](http://indiankanoon.org/doc/1838863/) [(i) the special arrangements, if any, which may be made for the residence, discipline and teaching](http://indiankanoon.org/doc/1551963/) of women students and the prescribing of special courses of studies for them; [(j) the appointments and emoluments of employees other than those for whom provision has been](http://indiankanoon.org/doc/1454210/) made in the Statutes; [(k) the establishment of Centres of Studies, Boards of Studies, Special Centres, Specialised](http://indiankanoon.org/doc/1153359/) Laboratories and other Committees; [(l) the manner of co-operation and collaboration with other Universities and authorities including](http://indiankanoon.org/doc/1571637/) learned bodies or associations; [(m) the creation, composition and functions of any other body which is considered necessary for](http://indiankanoon.org/doc/995456/) improving the academic life of the University; [(n) such other terms and conditions of service of teachers and other academic staff as are not](http://indiankanoon.org/doc/689220/) prescribed by the Statutes; [(o) the management of Colleges and Institutions established by the University;](http://indiankanoon.org/doc/1951743/) [(p) the setting up of a machinery for redressal of grievances of employees; and](http://indiankanoon.org/doc/1200929/) [(q) all other matters which by this Act or the Statutes may be provided for by the Ordinances.](http://indiankanoon.org/doc/225391/) [(2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the](http://indiankanoon.org/doc/581960/) Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Board of Management in the manner prescribed by the Statutes. **[28. Regulations.—The authorities of the University may make Regulations, consistent with this Act,](http://indiankanoon.org/doc/975921/)** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **[29. Annual report.—(1) The annual report of the University shall be prepared under the direction of](http://indiankanoon.org/doc/1539725/)** the Board of Management, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects. 10 ----- [(2) The annual report so prepared shall be submitted to the Visitor on or before such date as may be](http://indiankanoon.org/doc/912504/) prescribed by the Statutes. [(3) A copy of the annual report as prepared under sub-section (1), shall also be submitted to the](http://indiankanoon.org/doc/1107097/) Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **[30. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be](http://indiankanoon.org/doc/1919545/)** prepared under the directions of the Board of Management and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. [(2) A copy of the annual accounts together with the audit report thereon shall be submitted to the](http://indiankanoon.org/doc/120903/) Visitor. [(3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the](http://indiankanoon.org/doc/124244/) Board of Management and the observations of the Board of Management, if any, shall be submitted to the Visitor. [(4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also](http://indiankanoon.org/doc/1411776/) be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. [(5) The audited annual accounts after having been laid before both Houses of Parliament shall be](http://indiankanoon.org/doc/1970398/) published in the Gazette of India. **[31. Conditions of service of employees.—(1) Every employee of the University shall be appointed](http://indiankanoon.org/doc/1856295/)** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. [(2) Any dispute arising out of the contract between the University and any employee shall, at the](http://indiankanoon.org/doc/1690002/) request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Board of Management, one member nominated by the employee concerned and an umpire appointed by the Visitor. [(3) The decision of the Tribunal in such matters shall be final.](http://indiankanoon.org/doc/1212076/) [(4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to](http://indiankanoon.org/doc/1013654/) arbitration upon the terms of this section within the meaning of the Arbitration Act, 1940 (2 of 1940). [(5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes.](http://indiankanoon.org/doc/553261/) **[32. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student](http://indiankanoon.org/doc/1272141/)** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Board of Management and the Board of Management may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. [(2) Any dispute arising out of any disciplinary action taken by the University against a student shall,](http://indiankanoon.org/doc/1323697/) at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 31 shall, as far as may be, apply to a reference made under this sub-section. **[33. Right to appeal.—Every employee or student of the University or of a College or Institution](http://indiankanoon.org/doc/732207/)** maintained by the University shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Board of Management against the decision of any officer or authority of the University or of the Principal of any College or Institution, as the case may be, and thereupon the Board of Management may confirm, modify or reverse the decision appealed against. 11 ----- **[34. Provident and pension funds.—(1) The University shall constitute for the benefit of its](http://indiankanoon.org/doc/1492219/)** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. [(2) Where such provident fund or pension fund has been so constituted, the Central Government may](http://indiankanoon.org/doc/1691187/) declare that the provision of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **[35. Disputes as to constitution of University authorities and bodies.—If any question arises as to](http://indiankanoon.org/doc/662401/)** whether any person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **[36. Constitution of Committees.—Where any authority of the University is given power by this Act](http://indiankanoon.org/doc/1358295/)** or the Statutes to appoint Committees, such Committees shall, save as otherwise provided, consist of the members of the authority concerned and of such other person, if any, as the authority in each case may think fit. **[37. Filling of casual vacancies.—All casual vacancies among the members (other than](http://indiankanoon.org/doc/810744/)** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appointed, elected or co-opted the member whose place has become vacant and the person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **[38. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or](http://indiankanoon.org/doc/365310/)** proceedings of any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **[39. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against](http://indiankanoon.org/doc/181933/)** any officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **[40. Mode of proof of University record.—A copy of any receipt application, notice, order,](http://indiankanoon.org/doc/471765/)** proceeding, resolution of any authority or Committee of the University, or other documents in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as prima facie evidence of such receipt, application, notice, order, proceeding, resolution or documents or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence, notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), or in any other law for the time being in force. **[41. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of](http://indiankanoon.org/doc/261979/)** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary of expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. [(2) Every order made under this section shall be laid, as soon as may be after it is made, before each](http://indiankanoon.org/doc/134649/) House of Parliament. **[42. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—](http://indiankanoon.org/doc/683316/)** [(a) the first Vice-Chancellor shall be appointed by the Visitor and the said officer shall hold](http://indiankanoon.org/doc/359853/) office for a term of five years; [(b) the first Registrar and the first Finance Officer shall be appointed by the Visitor and each of](http://indiankanoon.org/doc/1612394/) the said officers shall hold office for a term of three years; [(c) the first Board of Management shall consist of not more than eleven members who shall be](http://indiankanoon.org/doc/754387/) nominated by the Visitor and they shall hold office for a term of three years; 12 ----- [(d) the first Academic Council and the first Planning Board shall be nominated by the Visitor for](http://indiankanoon.org/doc/981408/) a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the persons so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held that office, if such vacancy had not occurred. **[43. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid](http://indiankanoon.org/doc/1353188/)** **[before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published](http://indiankanoon.org/doc/1705008/)** in the Official Gazette. [(2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after](http://indiankanoon.org/doc/896140/) it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. [(3) The power to make Statutes, Ordinances or Regulations shall include the power to give](http://indiankanoon.org/doc/563673/) retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. 13 ----- THE FIRST SCHEDULE (See section 4) THE OBJECTS OF THE UNIVERSITY The University shall endeavour to promote advanced knowledge by providing instructional and research facilities in Science and key and frontier areas of Technology and other allied disciplines and to offer appropriate courses relevant for the development of socially and economically depressed sections of the people, including agricultural technology and rural crafts; to promote the study of the principles for which Babasaheb Bhimrao Ambedkar worked during his lifetime, namely, national integration, social justice and democratic way of life, and also study of the constitutions of the world. It would take appropriate measures for promoting innovations in teaching-learning processes in inter-disciplinary studies and research and pay special attention to the promotion of educational and economic interests and welfare of the people in general and of members belonging to Scheduled Castes and Scheduled Tribes in particular by providing adequate percentage of seats for Scheduled Castes and Scheduled Tribes. The University shall, in organising its activities, have due regard to the objects specified in the First Schedule. 14 ----- THE SECOND SCHEDULE (See section 27) THE STATUTES OF THE UNIVERSITY _The Chancellor_ 1. (1) The Chancellor shall be appointed by the Visitor of the Babasaheb Bhimrao Ambedkar University recommended by the Board of Management from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Board of Management. (2) The Chancellor shall hold office for a term of five years and shall be eligible for re-appointment. _The Vice-Chancellor_ 2. (1) The Vice-Chancellor shall be appointed by the Visitor from a panel of not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for a fresh panel. (2) The Committee referred to in clause (1), shall consist of three persons, none of whom shall be an employee of the University or a member of the Board of Management, Academic Council, member of any authority of the University or connected with an institution associated with the University and out of the three persons, two shall be nominated by the Board of Management and one by the Visitor and the nominee of the Visitor shall be the convenor of the Committee. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances other than the house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence. (ii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Board of Management with the approval of the Visitor from time to time: Provided that where an employee of the University or a College or an Institution maintained by it, or of any other University or any Institution maintained by or affiliated to such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme. (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Board of Management. 15 ----- (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the 1st day of January and 1st day of July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice-Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half pay leave at the rate of twenty days for each completed year of service. This half pay leave may also be availed of as commuted leave on full pay on medical certificate. When commuted leave is availed, twice the amount of half pay leave shall be debited against half pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise or if he is unable to perform his duties due to ill health or any other cause, one of the Pro-Vice-Chancellors shall perform the duties of the Vice-Chancellor: Provided that if no Pro-Vice-Chancellor is available, the senior-most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the existing Vice-Chancellor attends to the duties of his office, as the case may be. _Powers and duties of the Vice-Chancellor_ 3. (1) The Vice-Chancellor shall be ex officio Chairman of the Board of Management, the Academic Council, the Planning Board and the Finance Committee and shall, in the absence of the Chancellor, preside at the convocations held for conferring degrees. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed, and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall exercise control over the affairs of the University and shall give effect to the decisions of all the authorities of the University. (5) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he may deem fit. (6) The Vice-Chancellor shall have the power to convene or cause to be convened the meeting of the Board of Management, the Academic Council, the Planning Board and the Finance Committee. _Pro-Vice-Chancellor_ 4. (1) Every Pro-Vice-Chancellor shall be appointed by the Board of Management on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Board of Management, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Board of Management: Provided further that the Board of Management may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Board of Management but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for reappointment: 16 ----- Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: Provided also that the Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until a new Vice-Chancellor or the existing Vice-Chancellor, as the case may be, assumes office: Provided also that when the office of the Vice-Chancellor becomes vacant and there is no Pro-Vice-Chancellor to perform the functions of the Vice-Chancellor, the Board of Management may appoint a Pro-Vice-Chancellor and the Pro-Vice-Chancellor so appointed shall cease to hold office as such as soon as a Vice-Chancellor is appointed and enters upon his office. (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) A Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. _Registrar_ 5. (1) The Registrar shall be appointed by the Board of Management on the recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Ordinances: Provided that the Registrar shall retire on attaining the age of sixty years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and academic staff, as may be specified in the order of the Board of Management and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person concerned has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Board of Management against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Board of Management, the Academic Council and the Planning Board, but shall not be deemed to be a member of any of these authorities. 17 ----- (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Board of Management shall commit to his charges; (b) to issue all notices convening meetings of the Board of Management, the Academic Council, the Planning Board and of any, Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Board of Management, the Academic Council, the Planning Board and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Board of Management, the Academic Council, and the Planning Board; (e) to arrange for and superintend the examinations of the University in accordance with the manner prescribed by the Ordinances; (f) to supply to the Visitor copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (g) to represent the University in suits or proceedings by or against the University, sign powers-of-attorney and verify pleadings or depute his representative for the purpose; and (h) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required, from time to time, by the Board of Management or the Vice-Chancellor. _The Finance Officer_ 6. (1) The Finance Officer shall be appointed by the Board of Management on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Ordinances: Provided that a Finance Officer shall retire on attaining the age of sixty years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee, but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Board of Management or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Board of Management, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; 18 ----- (b) ensure that the limits fixed by the Board of Management for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Board of Management; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Special Centres, Specialised Laboratories, Colleges and Institutions maintained by the University; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Centre, Laboratory, College or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Board of Management for any money payable to the University shall be sufficient discharge for payment of such money. _Deans of Schools of Studies_ 7. (1) Every Dean of a School of Studies shall be appointed by the Vice-Chancellor from among the Professors in the School for a period of three years and he shall be eligible for reappointment: Provided that a Dean on attaining the age of sixty years shall cease to hold office as such: Provided further that if at any time there is no Professor in a School, the Vice-Chancellor, or a Dean authorised by the Vice-Chancellor in this behalf, shall exercise the powers of the Dean of the School. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in the School and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Board of Studies or Committees of the School, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. _Heads of Departments_ 8. (1) In the case of Department which have more than one Professor, the Head of the Department shall be appointed by the Board of Management on the recommendation of the Vice-Chancellor from among the Professors. (2) In the case of Departments where there is only one Professor, the Board of Management shall have the option to appoint, on the recommendation of the Vice-Chancellor, either the Professor or a Reader as the Head of the Department: Provided that it shall be open to a Professor or Reader to decline the offer of appointment as the Head of the Department. (3) A person appointed as the Head of the Department shall hold office as such for a period of three years and shall be eligible for reappointment. 19 ----- (4) A Head of a Department may resign his office at any time during his tenure of office. (5) A Head of a Department shall perform such duties as may be prescribed by the Ordinances. _Proctors_ 9. (1) Every Proctor shall be appointed by the Board of Management on the recommendation of the Vice-Chancellor and shall exercise such powers and perform such duties as may be assigned to him by the Vice-Chancellor. (2) Every Proctor shall hold office for a term of two years and shall be eligible for reappointment. _Librarian_ 10. (1) The Librarian shall be appointed by the Board of Management on the recommendations of the Selection Committee constituted for the purpose and he shall be, a whole-time officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Board of Management. _Quorum for meetings of the Board of Management._ 11. (1) The Board of Management shall consist of the following members, namely:— (i) Vice-Chancellor; (ii) Pro-Vice-Chancellors; (iii) Dean of Schools of studies to be appointed by the Vice-Chancellor by rotation according to seniority; (iv) one Head of the Department of the University, who is not a Dean, to be nominated by the Vice-Chancellor by rotation according to seniority; (v) one Professor, who is not a Dean or Head, to be appointed by the Vice-Chancellor by rotation according to seniority; (vi) one Reader, who is not a Head, to be appointed by the Vice-Chancellor by rotation according to seniority; (vii) one Lecturer to be appointed by the Vice-Chancellor by rotation according to seniority; (viii) three representatives of the House of the People and the Council of States, two to be nominated by the Speaker of the House of the People and one by the Chairman of the Council of States from amongst the Members thereof; (ix) a representative of the Ministry of Human Resource Development (Department of Education) Government of India, to be nominated by the Visitor; (x) a representative of the University Grants Commission to be nominated by the Visitor; (xi) four persons of distinction in academic and/or public life to be nominated by the Visitor. (2) All members of the Board of Management, other than ex officio members, shall hold office for a period of three years from the date of their nomination. (3) Seven members of the Board of Management shall form quorum for the meeting of the Board. _Powers and functions of the Board of Management_ 12. (1) The Board of Management shall have the power of management and administration of the revenue and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. 20 ----- (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Board of Management shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff and Principals of Colleges and Institutions maintained by the University: Provided that no action shall be taken by the Board of Management in respect of the number, qualifications and the emoluments of teachers and academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, and Principals of Colleges and Institutions maintained by the University on the recommendation of the Selection Committee consituted for the purpose and to fill up temporary vacancies thereto; (iii) to create administrative, ministerial and other necessary posts and to make appointments thereto in the manner prescribed by the Ordinances; (iv) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (v) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vi) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University, and for that purpose to appoint such agents as it may think fit; (vii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendations of the Finance Committee; (viii) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time, as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (ix) to transfer or accept transfers of any movable or immovable property on behalf of the University; (x) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xi) to enter into, vary, carry out and cancel contracts on behalf of the University; (xii) to entertain, adjudicate upon, and, if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiii) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xiv) to select a common seal for the University and provide for the custody and use of such seal; (xv) to make such special arrangements as may be necessary for the residence and discipline of women students; (xvi) to delegate any of its powers to the Vice-Chancellor, the Pro-Vice-Chancellor, the Deans, the Registrar or the Finance Officer or such other employee or authority of the University or to a committee appointed by it as it may deem fit; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors; Consultants; and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act, or the Statutes. 21 ----- _Academic Council_ 13. (1) The Academic Council shall consist of the following members, namely:— (i) Vice-Chancellor; (ii) Pro-Vice-Chancellor; (iii) Dean of Schools of studies; (iv) Heads of the teaching departments; (v) All Professors; (vi) four Readers to be appointed by the Vice-Chancellor by rotation according to seniority; (vii) four Lecturers to be appointed by the Vice-Chancellor by rotation according to seniority; (viii) Librarian; (ix) four persons not in the service of the University to be nominated by the Vice-Chancellor on the recommendations of the Academic Council for their special knowledge; (x) two representatives of students, to be nominated by the Vice-Chancellor on academic merit, one from amongst the research scholars and the other from the post-graduate students from the various schools of studies/Departments of the University, on rotation basis. (2) All members of the Academic Council, other than the _ex officio and the student members, shall_ hold office for a term of three years from the date of their nomination/appointment: Provided that the tenure of student members shall be one academic year. (3) Half of the total members of the Academic Council shall form quorum for a meeting of the Academic Council. (4) The student members shall not be allowed to participate in discussions in respect of matters relating to examinations, selection committees, appointments and conditions of service of the teaching staff and actual process of evaluating academic performance and merit of students. _Quorum for meetings of the Academic Council_ 14. Nine Members of the Academic Council shall form a quorum for a meeting of the Academic Council. _Powers of the Academic Council_ 15. Subject to the Act, the Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instructions, co-operative teaching among Colleges and Institutions, evaluation of research or improvements in academic standards; (b) to bring about inter-School co-ordination, to establish or appoint committees or boards, for taking up projects on an inter-School basis; (c) to consider matters of general academic interest either on its own initiative or on a reference by a School or the Board of Management and to take appropriate action thereon; and (d) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residences, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. 22 ----- _The Planning Board_ 16. (1) The Planning Board shall be the principal planning body of the University and shall be responsible for— (a) reviewing the educational programmes offered by the University; (b) organising the structure of education in the University so as to provide opportunities to students to offer different combinations of subjects appropriate for the development of personality and skills for useful work in society; (c) creating an atmosphere and environment conductive to value-oriented education; and (d) developing new teaching-learning processes which will combine the lectures, tutorials, seminars, demonstrations, self-studies and collective practical projects. (2) The Planning Board shall have the power to advise on the development of the University and review the progress implementation of programmes so as to ascertain whether they are on the lines recommended by it and shall also have the power to advise the Board of Management and the Academic Council on any matter in connection therewith. (3) The Academic Council and the Board of Management shall be bound to consider the recommendations of the Planning Board and shall implement such of the recommendations as are accepted by it. (4) Such of those recommendations of the Planning Board as have not been accepted by the Board of Management or the Academic Council under clause (3) shall be submitted by the Vice-Chancellor along with the recommendations of the Board of Management or the Academic Council, to the Visitor for advise and the advise of the Visitor shall be implemented by the Board of Management or the Academic Council, as the case may be. (5) The Planning Board may constitute such committees as may be necessary for planning and monitoring the programmes of the University. _Schools of Studies and Departments_ 17. (1) The University shall have such Schools of Studies as may be specified by the Ordinances. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Board of Management and shall hold office for a period of three years. (3) The powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Each School shall consist of such Departments as may be assigned to it by the Ordinances. (b) No Department shall be established or abolished except by the Statutes: Provided that the Board of Management may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Board of Management may consider necessary. (c) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) Persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) such other persons as may be members of the Department in accordance with the provisions of the Ordinances. 23 ----- _Board of Studies_ 18. (1) Each Department shall have a Board of Post-graduate Studies and a Board of Under-graduate Studies. (2) The constitution of a Board of Post-graduate Studies and the term of office of its members shall be prescribed by the Ordinances. (3) The functions of a Board of Post-graduate Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for Post-graduate courses, but excluding research degrees; (b) appointment of supervisors of research; and (c) measures for the improvement of the standard of post-graduate teaching and research: Provided that the above functions of a Board of Post-graduate Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. (4) The constitution and functions of a Board of Under-graduate Studies and the term of its members shall be prescribed by the Ordinances. _Finance Committee_ 19. (1) The Finance Committee shall consist of the following members, namely:— (i) the Vice-Chancellor; (ii) one or more Pro-Vice-Chancellors, as the case may be; (iii) three persons nominated by the Board of Management, out of whom at least one shall be a member of the Board of Management; and (iv) three persons nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other then ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, should be examined by the Finance Committee before they are considered by the Board of Management. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Board of Management for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). _Selection Committees_ 20. (1) There shall be Selection Committees for making recommendations to the Board of Management for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Colleges and Institutions maintained by the University. 24 ----- (2) The Selection Committee for appointment to the posts specified in column 1 of the Table below shall consist of the Vice-Chancellor, Pro-Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in column 2 of the said Table: TABLE 1 2 Professor (i) The Head of the Department concerned if he is a Professor. (ii) One Professor to be nominated by the Vice-Chancellor. (iii) Three persons not in the service of the University, nominated by the Board of Management, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Head of the Department concerned. (ii) One Professor to be nominated by the Vice-Chancellor. (iii) Two persons not in the service of the University, nominated by the Board of Management, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader or a Lecturer will be concerned. Registrar, Finance Officer (i) Two members of the Board of Management nominated by it. (ii) One person not in the service of the University nominated by the Board of Management. Librarian (i) Two persons not in the service of the University, who have special knowledge of the subject of the Library Science/Library Administration to be nominated by the Board of Management. (ii) One person not in the service of the University, nominated by the Board of Management. Principal of College or Institution maintained by the University Three persons not in the service of the University of whom two shall be nominated by the Board of Management and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. NOTE: 1. Where the appointment is being made for an inter-disciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. 2. The Professor to be nominated shall be Professor concerned with the speciality for which the selection is being made and that the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. (3) The Vice-Chancellor, or in his absence, one of the Pro-Vice-Chancellor shall preside at the meetings of a Selection Committee: Provided that the meetings of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor’s nominee and the persons nominated by the Board of Management under clause (2): 25 ----- Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor’s nominee and the persons nominated by the Board of Management is four in all, at least three of them attend the meeting; and (b) where the number of Visitor’s nominee and the persons nominated by the Board of Management is three in all, at least two of them attend the meeting. (4) The meeting of a Selection Committee shall be convened by the Vice-Chancellor or in his absence by the Pro-Vice-Chancellor. (5) The procedure to be followed by a Selection Committee in making recommendations shall be laid down in the Ordinances. (6) If the Board of Management is unable to accept the recommendations made by a Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (7) Appointments to temporary posts shall be made in the manner indicated below:— (i) If the temporary vacancy is for a duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis by a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in case sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. _Special mode of appointment_ 21. (1) Notwithstanding anything contained in Statute 20, the Board of Management may invite a person of high academic distinction and professional attainments to accept a post of Professor or Reader or any other academic post in the University, as the case may be, on such terms and conditions as it deems fit, and on the person agreeing to do so appoint him to the post. (2) The Board of Management may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. _Appointment for fixed tenure_ 22. The Board of Management may appoint a person selected in accordance with the procedure laid down in Statute 20 for a fixed tenure on such terms and conditions as it deems fit. 26 ----- _Recognised teachers_ 23. (1) The qualifications of recognised teachers shall be such as may be prescribed by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down in the Ordinances. (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, be a special resolution passed by a majority of not less than two thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. (6) Any person aggrieved by an order of withdrawal under clause (5) may, within three months from the date of communication to him of such order, appeal to the Board of Management which may pass such orders thereon as it thinks fit. _Committees_ 24. (1) Any authority of the University may appoint as many standing or special Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) Any such Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing. _Terms and conditions of service and code of conduct of the teachers, etc._ 25. (1) All the teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (3) A copy of every contract referred to in clause (2) shall be deposited with the Registrar. _Terms and conditions of service and code of conduct of other employees_ 26. All the employees of the University other than the teachers and other academic staff of the University, shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. _Seniority list_ 27. (1) Whenever, in accordance with the Statutes, any person is to hold an office or be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade, and, in accordance with such other principles as the Board of Management may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain, in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Board of Management whose decision thereon shall be final. 27 ----- _Removal of employees of the University_ 28. (1) Where there is an allegation of misconduct against a teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee, may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Board of Management the circumstances in which the order was made: Provided that the Board of Management may, if it is of the opinion that the circumstances of the case do not warrant the suspension of the teacher or the member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Board of Management in respect of teachers and other academic staff, and the appointing authority in respect of other employees, shall have the power to remove a teacher or a member of the academic staff, or as the case may be, other employee on grounds of misconduct. (3) Save as aforesaid, the Board of Management or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months’ notice or on payment of three months’ salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months’ notice in writing to the Board of Management or the appointing authority, as the case may be, or by paying three month’s salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month’s notice in writing to the Board of Management or, as the case may be, the appointing authority or by paying one months’ salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Board of Management or the appointing authority, as the case may be. _Honorary degrees_ 29. (1) The Board of Management may, on the recommendation of the Academic Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Board of Management may, on its own motion, make such proposals. (2) The Board of Management may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. 28 ----- _Withdrawal of degrees, etc._ 30. The Board of Management may, by a special resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Board of Management. _Maintenance of discipline among students of the University_ 31. (1) All powers relating to discipline and disciplinary action in relation to students of the University shall vest in the Vice-Chancellor. (2) The Vice-Chancellor may delegate all or any of his powers as he deems proper to a Proctor and to such other officers as he may specify is this behalf. (3) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of his powers, by order, direct that any student or students be expelled, or rusticated, for a specified period, or be not admitted to a course or courses of study in a College, Institution or Department of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a School for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (4) The Principals of Colleges and Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Schools and teaching Departments in the University as may be necessary for the proper conduct of such Colleges, Institutions, Schools and teaching Departments. (5) Without prejudice to the powers of the Vice-Chancellor, the Principals and other persons specified in clause (4), detailed rules of discipline and proper conduct shall be made by the University. The Principals of Colleges, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make the supplementary rules as they deem necessary for the aforesaid purposes. (6) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. _Convocations_ 32. Convocations of the University for the conferring of degrees or for other purposes shall be held in such manner as may be prescribed by the Ordinances. _Acting Chairman of meetings_ 33. Where no provision is made for a President or Chairman to preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. _Resignation_ 34. Any member, other than an _ex-officio member of the Board of Management, the Academic_ Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. 29 ----- _Disqualifications_ 35. (1) A person shall be disqualified for being chosen as, and for being, a member of any of the authorities of the University,— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. _Residence condition for membership and office_ 36. Notwithstanding anything contained in the Statutes, a person who is not ordinarily resident in India shall be eligible to be an officer of the University or a member of any authority of the University. _Membership of authorities by virtue of membership of other bodies_ 37. Notwithstanding anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such of office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. _Alumni Association_ 38. (1) There shall be an Alumni Association for the University. (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of the election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year’s membership shall not apply in the case of the first election. _Students’ Council_ 39. (1) There shall be constituted in the University, a Student’s Council for every academic year, consisting of— (i) the Dean of Students’ Welfare who shall be the Chairman of the Students’ Council; (ii) all students who have won prizes in the previous academic year in the fields of studies, fine, arts, sports and extension work; (iii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports activities and all-round development of personality: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students’ Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students’ Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students’ welfare and other matters of importance in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. 30 ----- (3) The Students’ Council shall meet at least once in an academic year preferably in the beginning of that year. _Ordinances how made_ 40. (1) The first Ordinances made under sub-section (2) of section 28 may be amended, repealed or added to at any time by the Board of Management in the manner specified below. (2) No Ordinance in respect of the matters enumerated in section 28 other than those enumerated in clause (n) of sub-section (1) thereof, shall be made by the Board of Management unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Board of Management shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for reconsideration, either in whole or in part, together with any amendment which the Board of Management may suggest. (4) Where the Board of Management has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Board of Management which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Board of Management shall come into effect immediately. (6) Every Ordinance made by the Board of Management shall be submitted to the Visitor within two weeks from the date of its adopttion. The Visitor shall have the power to direct the University within four weeks of the receipt of the Ordinance to suspend the operation of any such Ordinance and he shall, as soon as possible, inform the Board of Management about his objection to the proposed Ordinance. The Visitor may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. Regulations 41. (1) The authorities of the University may make Regulations consistent with the Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Board of Management may direct the amendment in such manner as it may specify, of any Regulation made under the Statutes or the annulment of any such Regulation. _Delegation of powers_ 42. Subject to the provisions of the Act and the Statutes, any officer or authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 31 -----
25-Mar-1995
07
The Cable Television Networks (Regulation) Act, 1995
https://www.indiacode.nic.in/bitstream/123456789/1928/4/aa1995-07.pdf
central
# THE CABLE TELEVISION NETWORKS (REGULATION) ACT, 1995 _________ ARRANGEMENT OF SECTIONS _______ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGULATION OF CABLE TELEVISION NETWORK 3. Cable television network not to be operated except after registration. 4. Registration as cable operator. 4A. Transmission of programmes through digital addressable systems, etc. 4B. Right of way for cable operators and permission by public authority. 5. Programme code. 6. Advertisement code. 7. Maintenance of register. 8. Compulsory transmission of certain channels. 9. Use of standard equipment in cable television network. 10. Cable television network not to interfere with any telecommunication system. 10A. Inspection of cable network and services. CHAPTER III SEIZURE AND CONFISCATION OF CERTAIN EQUIPMENT 11. Power to seize equipment used for operating cable television network. 12. Confiscation. 13. Seizure or confiscation of equipment not to interfere with other punishment. 14. Giving of opportunity to the cable operator of seized equipment. 15. Appeal. CHAPTER IV # PENALTIES 16. Penalty for contravention of provisions of this Act. 17. Offences by companies. 18. Cognizance of offences. CHAPTER V MISCELLANEOUS 19. Power to prohibit transmission of certain programmes in public interest. 20. Power to prohibit operation of cable television network in public interest. 21. Application of other laws not barred. 22. Power to make rules. 23. Repeal and savings. 1 ----- # THE CABLE TELEVISION NETWORKS (REGULATION) ACT, 1995 ACT NO. 7 OF 1995 [25th March, 1995.] # An Act to regulate the operation of cable television networks in the country and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Cable Television** Networks (Regulation) Act, 1995. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 29th day of September, 1994. **2. Definitions.—In this Act, unless the context otherwise requires,—** 1[(a) “authorised officer” means, within his local limits of jurisdiction,— (i) a District Magistrate, or (ii) a Sub-divisional Magistrate, or (iii) a Commissioner of Police, and includes any other officer notified in the Official Gazette, by the Central Government or the State Government, to be an authorised officer for such local limits of jurisdiction as may be determined by that Government;] 2[(ai) “Authority” means the Telecom Regulatory Authority of India established under sub-section (1) of section 3 of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997); (aii) “Broadcaster” means a person or a group of persons, or body corporate, or any organisation or body providing programming services and includes his or its authorised distribution agencies; (aiii) “cable operator” means any person who provides cable service through a cable television network or otherwise controls or is responsible for the management and operation of a cable television network and fulfils the prescribed eligibility criteria and conditions;] (b) “cable service” means the transmission by cables of programmes including re-transmission by cables of any broadcast television signals; (c) “cable television network” means any system consisting of a set of closed transmission paths and associated signal generation, control and distribution equipment, designed to provide cable service for reception by multiple subscribers; (d) “company” means a company as defined in section 3 of the Companies Act, 1956 (1 of 1956); (e) “person” means— (i) an individual who is a citizen of India; (ii) an association of individuals or body of individuals, whether incorporated or not, whose members are citizens of India; 1. Ins. by Act 36 of 2000, s. 2 (w.e.f. 1-9-2000). 2. Subs. by Act 21 of 2011, s. 2, for clause (aa) (w.e.f. 25-10-2011). 2 ----- 1[(iii) a company as defined in section 3 of the Companies Act, 1956 (1 of 1956);] 2[(ei) “post” means a post and includes a pole, tower, standard, stay, strut, cabinet, pillar or any above ground contrivance for carrying, suspending or supporting any network infrastructure facility;] (f) “prescribed” means prescribed by rules made under this Act; (g) “programme” means any television broadcast and includes— (i) exhibition of films, features, dramas, advertisements and serials [3]***; (ii) any audio or visual or audio-visual live performance or presentation, and the expression “programming service” shall be construed accordingly; 2[(gi) “public authority” means any authority, body or institution of local self-government constituted or established by or under— (i) the Constitution of India; (ii) any law made by Parliament; (iii) any law made by a State Legislature; (iv) any notification issued or order made by the appropriate Government, and includes any— (v) body owned, controlled or substantially financed; or (vi) non-governmental organisation substantially financed, directly or indirectly by funds provided by the appropriate Government;] (h) “registering authority” means such authority as the Central Government may, by notification in the Official Gazette, specify to perform the functions of the registering authority under this Act 2[within such local limits of jurisdiction as may be determined by that Government]; (i) “subscriber” means [4][any individual, or association of individuals, or a company, or any other organisation or body] who receives the signals of cable television network at a place [5][indicated by him or it] to the cable operator, without further transmitting it to any other person. CHAPTER II REGULATION OF CABLE TELEVISION NETWORK **3. Cable television network not to be operated except after registration.—No person shall operate** a cable television network unless he is registered as a cable operator under this Act. 6* - - - 7[4. Registration as cable operator.—(1) Any person who is desirous of operating or is operating a cable television network may apply for registration or renewal of registration, as a cable operator to the registering authority. (2) The cable operator shall fulfil such eligibility criteria and conditions as may be prescribed and different eligibility criteria may be prescribed for different categories of cable operators. 1. Subs. by Act 21 of 2011, s. 2, for sub-clause (iii) (w.e.f. 25-10-2011). 2. Ins. by s. 2, ibid. (w.e.f. 25-10-2011). 3. The words “through video cassette recorders or video cassette players” omitted by s. 2, ibid. (w.e.f. 25-10-2011). 4. Subs. by s. 2, ibid., for “a person” (w.e.f. 25-10-2011). 5. Subs. by s. 2, ibid., for “indicated by him” (w.e.f. 25-10-2011). 6. The proviso omitted by s. 3, ibid. (w.e.f. 25-10-2011). 7. Subs. by s. 4, ibid., for section 4 (w.e.f. 25-10-2011). 3 ----- (3) On and from the date of issue of notification under section 4A, no new registration in a State, city, town or area notified under that section shall be granted to any cable operator who does not undertake to transmit or re-transmit channels in an encrypted form through a digital addressable system. (4) An application under sub-section (1) shall be made in such form and be accompanied by such documents and fees as may be prescribed. (5) On receipt of the application, the registering authority shall satisfy itself that the applicant has furnished all the required information prescribed under sub-section (4) and on being so satisfied, register the applicant as a cable operator and grant him a certificate of registration or renew its registration, as the case may be, subject to such terms and conditions as may be prescribed under sub-section (6): Provided that the registering authority may, if it is satisfied that the applicant does not fulfil the eligibility criteria and conditions prescribed under sub-section (2) or the application is not accompanied by necessary documents or fees as prescribed under sub-section (4), and for reasons to be recorded in writing, by order, refuse to grant its registration or renewal, as the case may be, and communicate the same to the applicant: Provided further that the applicant may prefer an appeal against the order of the registering authority refusing grant or renewal of registration to the Central Government. (6) Without prejudice to the compliance of eligibility criteria for registration of cable operators, the Central Government may prescribe, having regard to the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality, foreign relation or contempt of court, defamation or incitement to an offence, such terms and conditions of registration including additional criteria or conditions to be fulfilled by the cable operator. (7) The Central Government may suspend or revoke the registration granted under sub-section (5) if the cable operator violates one or more of the terms and conditions of such registration: Provided that no such order of suspension or revocation shall be made without giving reasonable opportunity of being heard to the cable operator.] **1[4A. Transmission of programmes through digital addressable systems, etc.—(1) Where the** Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, make it obligatory for every cable operator to transmit or re-transmit programmes of any channel in an encrypted form through a digital addressable system with effect from such date as may be specified in the notification and different dates may be specified for different States, cities, towns or areas, as the case may be: Provided that the date specified in the notification shall not be earlier than six months from the date of issue of such notification to enable the cable operators in different States, cities, towns or areas to install the equipment required for the purposes of this sub-section. (2) The Central Government may prescribe appropriate measures and take such steps as it may consider necessary for implementation of the notification issued under sub-section(1). (3) If the Central Government is satisfied that it is necessary in the public interest so to do, and if not otherwise specified by the Authority, it may direct the Authority to specify, by notification in the Official Gazette, one or more free-to-air channels to be included in the package of channels forming basic service tier and any one or more such channels may be specified, in the notification, genre-wise for providing a programme mix of entertainment, information, education and such other programmes and fix the tariff for basic service tier which shall be offered by the cable operators to the consumers and the consumer shall have the option to subscribe to any such tier: Provided that the cable operator shall also offer the channels in the basic service tier on a _la carte_ basis to the subscriber at a tariff specified under this sub-section. (4) The Central Government or the Authority may specify in the notification referred to in sub-section (3), the number of free-to-air channels to be included in the package of channels forming 1. Subs. by Act 21 of 2011, s. 5, for section 4A (w.e.f. 25-10-2011). 4 ----- basic service tier for the purposes of that sub-section and different numbers may be specified for different States, cities, towns or areas, as the case may be. (5) It shall be obligatory for every cable operator to publicise the prescribed information including but not limited to subscription rates, standards of quality of service and mechanism for redressal of subscribers’ grievances in such manner and at such periodic intervals as may be specified by the Central Government or the Authority for the benefit of the subscriber. (6) The cable operator shall not require any subscriber to have a receiver set of a particular type to receive signals of cable television network: Provided that the subscriber shall use a digital addressable system to be attached to his receiver set for receiving programmes transmitted on any channel. (7) Every cable operator shall provide such information relating to its cable services and networks in such format and at such periodic intervals to the Central Government or the State Governments or the Authority or their authorised representatives, as may be specified by them from time to time. (8) All actions taken by the Central Government or the Authority in pursuance of the provisions of this section as they stood immediately before the 25th day of October, 2011shall continue to remain in force till such actions are modified as per the provisions of this Act. _Explanation.—For the purposes of this section,—_ (a) “addressable system” means an electronic device (which includes hardware and its associated software) or more than one electronic device put in an integrated system through which signals of cable television network can be sent in encrypted form, which can be decoded by the device or devices, having an activated Conditional Access System at the premises of the subscriber within the limits of authorisation made, through the Conditional Access System and the subscriber management system, on the explicit choice and request of such subscriber, by the cable operator to the subscriber; (b) “basic service tier” means a package of free-to-air channels to be offered by a cable operator to a subscriber with an option to subscribe, for a single price to subscribers of the area in which his cable television network is providing service; (c) “encrypted”, in respect of a signal of cable television network, means the changing of such signal in a systematic way so that the signal would be unintelligible without use of an addressable system and the expression "unencrypted" shall be construed accordingly; (d) “free-to-air channel”, in respect of a cable television network, means a channel for which no subscription fee is to be paid by the cable operator to the broadcaster for its re-transmission on cable; (e) “pay channel”, in respect of a cable television network, means a channel for which subscription fees is to be paid to the broadcaster by the cable operator and due authorisation needs to be taken from the broadcaster for its re-transmission on cable; (f) “subscriber management system” means a system or device which stores the subscriber records and details with respect to name, address and other information regarding the hardware being utilised by the subscriber, channels or bouquets of channels subscribed to by the subscriber, price of such channels or bouquets of channels as defined in the system, the activation or deactivation dates and time for any channel or bouquets of channels, a log of all actions performed on a subscriber’s record, invoices raised on each subscriber and the amounts paid or discount allowed to the subscriber for each billing period. **4B. Right of way for cable operators and permission by public authority.—(1) Subject to the** provisions of this Act, any cable operator entitled for providing cable services may, from time to time, lay and establish cables and erect posts under, over, along, across, in or upon any immovable property vested in or under the control or management of a public authority. 5 ----- (2) Any public authority under whose control or management any immovable property is vested may, on receipt of a request from a cable operator permit the cable operator to do all or any of the following acts, namely:— (a) to place and maintain underground cables or posts; and (b) to enter on the property, from time to time, in order to place, examine, repair, alter or remove such cables or posts. (3) The facility of right of way under this section for laying underground cables, and erecting posts, shall be available to all cable operators subject to the obligation of reinstatement or restoration of the property or payment of reinstatement or restoration charges in respect thereof at the option of the public authority. (4) When a public authority in public interest considers it necessary and expedient that the underground cable or post placed by any cable operator under the provisions of this section should be removed or shifted or its position altered, it may require the cable operator to remove it or shift it or alter its position, as the case may be, at its own cost in the timeframe indicated by the public authority. (5) The Central Government may lay down appropriate guidelines to enable the State Governments to put in place an appropriate mechanism for speedy clearance of requests from cable operators for laying cables or erecting posts on any property vested in, or under the control or management of, any public authority and for settlement of disputes, including refusal of permission by the public authority. (6) Any permission granted by a public authority under this section may be given subject to such reasonable conditions as that public authority thinks fit to impose as to the payment of any expenses, or time or mode of execution of any work, or as to any other matter connected with or related to any work undertaken by the cable operator in exercise of those rights. (7) Nothing in this section shall confer any right upon any cable operator other than that of user for the purpose only of laying underground cable or erecting posts or maintaining them.] **5. Programme code.—No person shall transmit or re-transmit through a cable service any** programme unless such programme is in conformity with the prescribed programme code. 1* - - - **6. Advertisement code.—No person shall transmit or re-transmit through a cable service any** advertisement unless such advertisement is in conformity with the prescribed advertisement code. 2* - - - **7. Maintenance of register.—Every cable operator shall maintain a register in the prescribed form** indicating therein in brief the programmes transmitted or re-transmitted through the cable service during a month and such register shall be maintained by the cable operator for a period of one year after the actual transmission or re-transmission of the said programmes. **3[8. Compulsory transmission of certain channels.—(1) The Central Government may, by** notification in the Official Gazette, specify the names of Doordarshan channels or the channels operated by or on behalf of Parliament, to be mandatorily carried by the cable operators in their cable service and the manner of reception and re-transmission of such channels: Provided that in areas where digital addressable system has not been introduced in accordance with the provisions of sub-section (1) of section 4A, the notification as regards the prime band is concerned shall be limited to the carriage of two Doordarshan terrestrial channels and one regional language channel of the State in which the network of the cable operator is located. (2) The channels referred to in sub-section (1) shall be re-transmitted without any deletion or alteration of any programme transmitted on such channels. 1. The proviso omitted by Act 36 of 2000, s. 3 (w.e.f. 1-9-2000). 2. The proviso omitted by s. 4, ibid. (w.e.f. 1-9-2000). 3. Subs. by Act 21 of 2011, s. 6, for section 8 (w.e.f. 25-10-2011). 6 ----- (3) Notwithstanding the provisions of sub-section (1), any notification issued by the Central Government or the Prasar Bharti (Broadcasting Corporation of India) in pursuance of the provisions of sub-section (1), prior to the 25th day of October, 2011 shall continue to remain in force till such notifications are rescinded or amended, as the case may be.] **9. Use of standard equipment in cable television network.—No cable operator shall, on and from** the date of the expiry of a period of three years from the date of the establishment and publication of the Indian Standard by the Bureau of Indian Standards in accordance with the provisions of the Bureau of Indian Standards Act, 1986 (63 of 1986), use any [1][equipment or digital addressable system] in his cable television network unless such [1][equipment or digital addressable system] conforms to the said Indian Standard. 2* - - - **10. Cable television network not to interfere with any telecommunication system.—Every cable** operator shall ensure that the cable television network being operated by him does not interfere, in any way, with the functioning of the authorised telecommunication systems [3][and is in conformity with such standards relating to interference as may be prescribed by the Central Government]. 4[10A. Inspection of cable network and services.—(1) Without prejudice to the provisions contained in the Indian Telegraph Act, 1885 (13 of 1885) or any other law for the time being in force, the Central Government or its officers authorised by it or authorised agency shall have the right to inspect the cable network and services. (2) No prior permission or intimation shall be required to exercise the right of the Central Government or its authorised representatives to carry out such inspection. (3) The inspection shall ordinarily be carried out after giving reasonable notice except in circumstances where giving of such a notice shall defeat the purpose of the inspection. (4) On being so directed by the Central Government or its authorised officers or agency so authorised by it, the cable operator shall provide the necessary equipment, services and facilities at designated place or places for lawful interception or continuous monitoring of the cable service at its own cost by or under the supervision of the Central Government or its officers or agency so authorised by it]. CHAPTER III SEIZURE AND CONFISCATION OF CERTAIN EQUIPMENT **5[11. Power to seize equipment used for operating cable television network.—If any authorised** officer has reason to believe that the provisions of section 3, section 4A, section 5, section 6, section 8, section 9 or section 10 have been or are being contravened by any cable operator, he may seize the equipment being used by such cable operator for operating the cable television network: Provided that the seizure of equipment in case of contravention of sections 5 and 6 shall be limited to the programming service provided on the channel generated at the level of the cable operator.] **12. Confiscation.—The equipment seized under sub-section (1) of section 11 shall be liable to** confiscation unless the cable operator from whom the equipment has been seized registers himself as a cable operator under section 4 within a period of thirty days from the date of seizure of the said equipment. **13. Seizure or confiscation of equipment not to interfere with other punishment.—No seizure or** confiscation of equipment referred to in section 11 or section 12 shall prevent the infliction of any punishment to which the person affected thereby is liable under the provisions of this Act. 1. Subs. by Act 21 of 2011, s. 7, for “equipment” (w.e.f.25-10-2011). 2. The proviso omitted by s. 7, ibid. (w.e.f. 25-10-2011). 3. Ins. by s. 8, ibid. (w.e.f. 25-10-2011). 4. Ins. by s. 9, ibid. (w.e.f. 25-10-2011). 5. Subs. by s. 10, ibid. for section 11 (w.e.f. 25-10-2011). 7 ----- **14. Giving of opportunity to the cable operator of seized equipment.—(1) No order adjudicating** confiscation of the equipment referred to in section 12 shall be made unless the cable operator has been given a notice in writing informing him of the grounds on which it is proposed to confiscate such equipment and giving him a reasonable opportunity of making a representation in writing, within such reasonable time as may be specified in the notice against the confiscation and if he so desires of being heard in the matter: Provided that where no such notice is given within a period of ten days from the date of the seizure of the equipment, such equipment shall be returned after the expiry of that period to the cable operator from whose possession it was seized. (2) Save as otherwise provided in sub-section (1), the provisions of the Code of Civil Procedure, 1908 (5 of 1908) shall, so far as may be, apply to every proceeding referred to in sub-section (1). **15. Appeal.—(1) Any person aggrieved by any decision of the court adjudicating a confiscation of** the equipment may prefer an appeal to the court to which an appeal lies from the decision of such court. (2) The appellate court may, after giving the appellant an opportunity of being heard, pass such order as it thinks fit confirming, modifying or revising the decision appealed against or may send back the case with such directions as it may think fit for a fresh decision or adjudication, as the case may be, after taking additional evidence if necessary. (3) No further appeal shall lie against the order of the court made under sub-section (2). 1[CHAPTER IV # PENALTIES **16. Penalty for contravention of provisions of this Act.—(1) Whoever contravenes any of the** provisions of this Act shall be liable,— (a) for the first contravention with advisory, or censure, or warning, or a penalty which may extend to twenty thousand rupees, or with both; (b) for every subsequent contravention within a period of three years, with advisory, or censure, or warning, or a penalty which may extend to one lakh rupees, or with both, by such designated officer, as may be prescribed. (2) The designated officer, may, for the reasons to be recorded in writing, by order, impose penalty referred to in sub-section (1): Provided that in cases of more than three contraventions over a period of three years, the designated officer, in addition to penalty referred to in sub-section (1), may, for the reasons to be recorded in writing, by order, suspend or revoke the registration granted: Provided further that no order by the designated officer under this sub-section shall be made without giving a reasonable opportunity of being heard. (3) Whoever aggrieved by the order made under sub-section (2), may prefer an appeal to the Secretary to the Government of India or such other officer authorised by him: Provided that no such appeal shall be admissible after the expiry of thirty days from the date of receipt of such order: Provided further that an appeal may be entertained after the expiry of the period of thirty days, if he is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.] **17. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall 1. Subs. by Act 18 of 2023, s. 2 and the Schedule, for CHAPTER IV (w.e.f. 3-10-2023). 8 ----- be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director” in relation to a firm means a partner in the firm. **18. Cognizance of offences.—No court shall take cognizance of any offence punishable under this** Act except upon a complaint in writing made [1][by any authorised officer]. CHAPTER V MISCELLANEOUS **19. Power to prohibit transmission of certain programmes in public interest.—Where** [2][any authorised officer], thinks it necessary or expedient so to do in the public interest, he may, by order, prohibit any cable operator from transmitting or re-transmitting [3][any programme or channel if, it is not in conformity with the prescribed programme code referred to in section 5and advertisement code referred to in section 6 or if it is] likely to promote, on grounds of religion, race, language, caste or community or any other ground whatsoever, disharmony or feelings of enmity, hatred or ill-will between different religious, racial, linguistic or regional groups or castes or communities or which is likely to disturb the public tranquillity. **20. Power to prohibit operation of cable television network in public interest.—[4][1] Where the** Central Government thinks it necessary or expedient so to do in public interest, it may prohibit the operation of any cable television network in such areas as it may, by notification in the Official Gazette, specify in this behalf. 5[(2) Where the Central Government thinks it necessary or expedient so to do in the interest of the— (i) sovereignty or integrity of India; or (ii) security of India; or (iii) friendly relations of India with any foreign State; or (iv) public order, decency or morality, it may, by order, regulate or prohibit the transmission or re-transmission of any channel or programme. (3) Where the Central Government considers that any programme of any channel is not inconformity with the prescribed programme code referred to in section 5 or the prescribed advertisement code referred to in section 6, it may by order, regulate or prohibit the transmission or re-transmission of such programme]. 1. Subs. by Act 36 of 2000, s. 7, for certain words (w.e.f. 1-9-2000). 2. Subs. by s. 8, ibid., for certain words (w.e.f. 1-9-2000). 3. Subs. by s. 8, ibid., for “any particular programme if it is” (w.e.f. 1-9-2000). 4. Section 20 renumbered as sub-section (1) thereof by s. 9, ibid. (w.e.f. 1-9-2000). 5. Ins. by s. 9, ibid. (w.e.f. 1-9-2000). 9 ----- **21. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the Drugs and Cosmetics Act, 1940 (23 of 1940), the Pharmacy Act, 1948 (8 of 1948), the Emblems and Names (Prevention of Improper Use) Act, 1950 (12 of 1950), the Drugs (Control) Act, 1950 (26 of 1950), the Cinematograph Act, 1952 (37 of 1952), the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 (21 of 1954), the Prevention of Food Adulteration Act, 1954 (37 of 1954), the Prize Competitions Act, 1955 (42 of 1955), the Copyright Act, 1957 (14 of 1957), the Trade and Merchandise Marks, Act, 1958 (43 of 1958), the Indecent Representation of Women (Prohibition) Act, 1986 (60 of 1986) [1][, the Consumer Protection Act, 1986 (68 of 1986) and the Telecom Regulatory Authority of India Act, 1997 (24 of 1997)]. **22. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 2[(a) the eligibility criteria for different categories of cable operators under sub-section (2) of section 4;] 3[(aa) the form of application, documents to be accompanied and the fees payable under sub-section (4) of section 4;] 4[(aaa) the terms and conditions of registration under sub-section (6) of section4;] 5[(aaaa) the appropriate measures under sub-section (2) of section 4A for implementation of the notification under sub-section (1) of that section;] (b) the programme code under section 5; (c) the advertisement code under section 6; (d) the form of register to be maintained by a cable operator under section 7; 5[(da) the specifications of interference standards for interfering with any telecommunication system under section 10;] 6[(db) the designated officer under sub-section (1) of section 16; (e) any other matter which is required to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **23. Repeal and savings.—(1) The Cable Television Networks (Regulation) Ordinance, 1995** (Ord. 3 of 1995) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provision of this Act. 1. Subs. by Act 21 of 2011, s.11, for “and the Consumer Protection Act, 1986” (w.e.f. 25-10-2011). 2. Subs. by s. 12, ibid., for clause (a) (w.e.f. 25-10-2011). 3. Subs. by s. 12, ibid., for clause (aa) (w.e.f. 25-10-2011). 4. Subs. by s. 12, ibid., for clause (aaa) (w.e.f. 25-10-2011). 5. Ins. by s. 12, ibid. (w.e.f. 25-10-2011). 6. Ins. by Act 18 of 2023, s. 2 and the Schedule (w.e.f. 3-10-2023). 10 -----
8-Sep-1995
39
The Textile Undertakings (Nationalisation) Act, 1995
https://www.indiacode.nic.in/bitstream/123456789/1976/5/a1995-39.pdf
central
# THE TEXTILE UNDERTAKINGS (NATIONALISATION) ACT, 1995 ____________ ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II ACQUISITION AND TRANSFER OF THE TEXTILE UNDERTAKINGS 3. Acquisition of rights of owners and vesting of the textile undertakings. 4. General effect of vesting. 5. Owner to be liable for certain prior liabilities. 6. Transfer of any textile undertaking or part thereof to a subsidiary textile corporation. 7. Shares to be issued by the National Textile Corporation for the value of the assets transferred to it by the Central Government. CHAPTER III PAYMENT OF AMOUNTS 8. Payment of amount to owners of textile undertakings. 9. Payment of further amount. CHAPTER IV MANAGEMENT, ETC., OF TEXTILE UNDERTAKINGS 10. Management, etc., of textile undertakings. 11. Special provision for disposal of assets of the textile undertakings in certain circumstances. 12. Duty of persons in charge of management of textile undertakings to deliver all assets, etc. 13. Accounts. CHAPTER V PROVISIONS RELATING TO EMPLOYEES OF TEXTILE UNDERTAKINGS 14. Employment of certain employees to continue. 15. Provident and other funds. 16. Transfer of employees to a subsidiary textile corporation. CHAPTER VI COMMISSIONERS OF PAYMENTS 17. Appointment of Commissioners of Payments. 18. Payment by the Central Government to the Commissioner. 19. Certain powers of the National Textile Corporation. 1 ----- SECTIONS 20. Claims to be made to the Commissioner. 21. Priority of claims. 22. Examination of claims. 23. Admission or rejection of claims. 24. Disbursement of money by the Commissioner to claimants. 25. Disbursement of amounts to the owners. 26. Undisbursed or unclaimed amounts to be deposited to the general reserve account. CHAPTER VII MISCELLANEOUS 27. Assumption of liability. 28. Management to continue to vest in the custodian until alternative arrangements are made. 29. Act to override all other enactments. 30. Contracts to cease to have effect unless ratified by the National Textile Corporation. 31. Penalties. 32. Offences by companies. 33. Protection of action taken in good faith. 34. Textile companies not to be wound up by the court. 35. Delegation of powers. 36. Power to make rules. 37. Power to remove difficulties. 38. Repeal and saving. 39. Validation THE FIRST SCHEDULE. THE SECOND SCHEDULE. 2 ----- # THE TEXTILE UNDERTAKINGS (NATIONALISATION) ACT, 1995 ACT NO. 39 OF 1995 [8th September, 1995.] # An Act to provide for the acquisition and transfer of the textile undertakings, and the right, title and interest of the owners in respect of the textile undertakings, specified in the First Schedule with a view to augmenting the production and distribution of different varieties of cloth and yarn so as to subserve the interests of the general public and for matters connected therewith or incidental thereto. WHEREAS the textile companies specified in column (3) of the First Schedule have, through their undertakings specified in column (2) of the said Schedule, been engaged in the manufacture and production of different varieties of cloth and yarn; AND WHEREAS, pending acquisition, the management of the said textile undertakings was taken over by the Central Government under section 3 of the Textile Undertakings (Taking Over of Management) Act, 1983 (40 of 1983)or under section 3 of the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976), as the case may be; AND WHEREAS large sums of money have been invested with a view to making the said textile undertakings viable; AND WHEREAS further investment of very large sums of money is necessary for the purpose of securing the optimum utilisation of the available facilities for the manufacture, production and distribution of cloth and yarn by the said textile undertakings of the companies; AND WHEREAS such investment is also necessary for securing the continued employment of the workmen employed in the said textile undertakings; AND WHEREAS it is necessary in the public interest to acquire the said textile undertakings of the textile companies to ensure that the interest of the general public are served by the continuance by the said undertakings of the companies of the manufacture, production and distribution of different varieties of cloth and yarn which are vital to the needs of the country; BE it enacted by Parliament in the Forty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Textile Undertakings** (Nationalisation) Act, 1995. (2) The provisions of sections 31 and 32 shall come into force at once and the remaining provisions of this Act shall be deemed to have come into force on the 1st day of April, 1994. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “appointed day” means the 1st day of April, 1994; (b) “bank” means— (i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); (ii) a subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970(5 of 1970); (iv) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); 3 ----- (v) any other bank, being a scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934); (c) “Commissioner” means a Commissioner of Payments appointed under section 17; (d) “Custodian”means a Custodian appointed under section 4 of the Textile Undertakings (Taking Over of Management) Act, 1983 (40 of 1983) or under section 4 of the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976), as the case may be; (e) “National Textile Corporation” means the National Textile Corporation Limited formed and registered under the Companies Act, 1956 (1 of 1956); (f) “notification” means a notification published in the Official Gazette; (g) “owner”, when used in relation to a textile undertaking, means any person or firm who or which is, immediately before the appointed day, the immediate proprietor or lessee or occupier of the textile undertaking or any part thereof, and in the case of a textile company which is being wound up or the business whereof is being carried on by a liquidator or receiver, includes such liquidator or receiver, and also includes any agent or manager of such owner but does not include any person or body of persons authorised under the Textile Undertakings (Taking Over of Management) Act, 1983 (40 of 1983) or under the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976) to take over the management of the whole or any part of the textile undertaking; (h) “prescribed” means prescribed by rules made under this Act; (i) “specified date” means such date as the Central Government may, for the purpose of any provision of this Act, by notification, specify; and different dates may be specified for different provisions of this Act; (j) “subsidiary textile corporation” means the National Textile Corporation (South Maharashtra) Limited, the National Textile Corporation (Uttar Pradesh) Limited or any other textile corporation formed by the National Textile Corporation as its subsidiary; (k) “textile” includes yarn or fabrics made either wholly or partly of cotton, wool, jute, synthetic and artificial (man-made) fibres; (l) “textile company” means a company (being a company as defined in the Companies Act, 1956) (1 of 1956) specified in column (3) of the First Schedule as owning the textile undertaking specified in the corresponding entry in column (2) of that Schedule; (m) “textile undertaking” or “the textile undertaking” means an undertaking specified in column (2) of the First Schedule, the management of which was before the appointed day, taken over by the Central Government under the Textile Undertakings (Taking Over of Management) Act, 1983 (40 of 1983), or as the case may be, under the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976). (2) Words and expressions used herein and not defined but defined in the Companies Act, 1956 (1 of 1956), shall have the meanings respectively assigned to them in that Act. CHAPTER II ACQUISITION AND TRANSFER OF THE TEXTILE UNDERTAKINGS **3. Acquisition of rights of owners and vesting of the textile undertakings.—(1) On the appointed** day, the right, title and interest of the owner in relation to every textile undertaking shall stand transferred to, and shall vest absolutely in, the Central Government. (2) Every textile undertaking which stands vested in the Central Government by virtue of sub-section (1) shall, immediately after it has so vested, stand transferred to, and vested in, the National Textile Corporation. 4 ----- 1[(3) Notwithstanding the transfer and vesting of any textile undertaking to the National Textile Corporation by virtue of sub-section (2), the lease-hold rights of the textile undertakings shall continue to remain vested in the Central Government on payment of lease-hold rents and shall be discharged, for and on behalf of that Government, by the National Textile Corporation as and when payment of such lease-hold rents or any amount becomes due and payable. (4) Subject to sub-section (3), no court shall have jurisdiction to order divestment from the National Textile Corporation of the property vested in it by the Central Government.] **4. General effect of vesting.—(1) The textile undertakings referred to in section 3 shall be deemed to** include all assets, rights, lease-holds, powers, authorities and privileges and all property, movable and immovable, including lands, buildings, workshops, stores, instruments, machinery and equipment, cash balances, cash on hand, reserve funds, investments and book debts pertaining to the textile undertakings and all other rights and interests in, or arising out of, such property as were immediately before the appointed day in the ownership, possession, power or control of the textile company in relation to the said undertakings, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto and shall also be deemed to include the liabilities and obligations specified in sub-section (2) of section 5. (2) All property as aforesaid which have vested in the Central Government under sub-section (1) of section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation,mortgage, charge, lien and all other incumbrances affecting it, and any attachment, injunction or decree or order of any court or other authority restricting, the use of such property in any manner shall be deemed to have been withdrawn. (3) Where any licence or other instrument in relation to a textile undertaking had been granted, at any time before the appointed day to the owner by the Central Government or a State Government or any other authority, the National Textile Corporation shall, on and from such date, be deemed to be substituted in such licence or other instrument in place of the owner referred to therein as if such licence or such other instrument had been granted to it and shall hold such licence or the textile undertaking specified in such other instrument for the remainder of the period for which the owner would have held such licence or the textile undertaking under such other instrument. (4) Every mortgagee of any property which has vested under this Act in the Central Government and every person holding any charge, lien or other interest in, or in relation to, any such property shall give, within such time and in such manneras may be prescribed, an intimation to the Commissioner of such mortgage, charge, lien or other interest. (5) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (2) or any other person holding any charge, lien or other interest in, or in relation to, any such property shall be entitled to claim, in accordance with his rights and interest, payment of the mortgage money or other dues, in whole or in part, out of the amounts specified in relation to such property in the First Schedule, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Central Government. (6) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any property which has vested in the Central Government under section 3, instituted or preferred by or against the textile company is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the textile undertakings or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted or enforced by or against the National Textile Corporation. (7) Any person who, on the date on which the Textile Undertakings (Nationalisation) Ordinance, 1995 (Ord. 6 of 1995) was promulgated, was in possession of, or had under his custody or control, the whole or any part of any textile undertaking referred to in section 3, the management of which could not be taken over by the Central Government by reason of any decree, order or injunction of any court or otherwise, shall deliver forthwith the possession of such undertaking or part and all books of account, 1. Ins. by Act 36 of 2014, s. 5 (w.e.f. 24-10-2014). 5 ----- registers and all other documents of whatever nature relating to such undertaking or part to the Central Government or the National Textile Corporation or such other person as the Central Government or the National Textile Corporation, as the case may be, may specify in this behalf. 1[(8) Notwithstanding the fact that the textile operations have been discontinued in any textile undertaking being revived, shall for all effects and purposes be deemed that the textile operations are being continued and no suit or proceeding shall be instituted or if instituted be maintainable against the National Textile Corporation on the ground that it has discontinued such activity in the textile undertaking. (9) For the removal of doubts, it is hereby declared that the continued deemed vesting of the lease hold land in the Central Government shall not affect, impair or in any manner prejudice the rights of the National Textile Corporation to prosecute or defend any proceedings as a subsequent vestee in respect of any such lease-hold rights and no such proceedings shall fail only on account of the non-impleadment of that Government.] **5. Owner to be liable for certain prior liabilities.—(1) Every liability, other than the liability** specified in sub-section (2), of the owner of a textile undertaking, in relation to the textile undertakings in respect of any period prior to the appointed day, shall be the liability of such owner and shall be enforceable against him and not against the Central Government or the National Textile Corporation. (2) Any liability arising in respect of— (a) loans advanced by the Central Government, or a State Government, or both, to a textile undertaking (together with interest due thereon) after the management of such undertaking had been taken over by the Central Government under section 3 of the Textile Undertakings (Taking Over of Management) Act, 1983, (40 of 1983) or as the case may be, under section 3 of the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976); (b) amounts advanced to a textile undertaking [after the management of such undertaking had been taken over by the Central Government under section 3 of the Textile Undertakings (Taking Over of Management) Act, 1983 (40 of 1983), or as the case may be, under section 3 of the Laxmirattan and Atherton West Cotton Mills (Taking Over of management) Act, 1976 (98 of 1976)] by the National Textile Corporation or by a State Textile Corporation, or by both, together with interest due thereon; (c) wages, salaries and other dues of employees of the textile undertaking, in respect of any period after the management of such undertaking had been taken over by the Central Government, shall, on and from the appointed day, be the liability of the Central Government and shall be discharged, for and on behalf of that Government, by the National Textile Corporation as and when repayment of such loans or amounts becomes due or as and when such wages, salaries or other dues become due and payable. (3) For the removal of doubts, it is hereby declared that,— (a) save as otherwise expressly provided in this section or in any other section of this Act, no liability, other than the liability specified in sub-section (2), in relation to a textile undertaking, in respect of any period prior to the appointed day, shall be enforceable against the Central Government or the National Textile Corporation; (b) no award, decree or order of any court, tribunal or other authority in relation to any textile undertaking, passed after the appointed day, in respect of any matter, claim or dispute in relation to any matter not referred to in sub-section (2),which arosebefore that day shall be enforceable against the Central Government or the National Textile Corporation; (c) no liability of any textile undertaking or any owner thereof in relation to any textile undertaking before the appointed day, for the contravention of any provision of law for the time being in force, shall be enforceable against the Central Government or the National Textile Corporation. 1. Ins. by Act 36 of 2014, s. 6 (w.e.f. 24-10-2014). 6 ----- **6. Transfer of any textile undertaking or part thereof to a subsidiary textile Corporation.—** (1) The National Textile Corporation may, by order in writing, transfer any textile undertaking specified at serial numbers 1 to 13 in the First Schedule or part of any such textile undertaking to the National Textile Corporation (South Maharashtra) Limited and any textile undertaking specified at serial numbers 14 and 15 in the First Schedule or part of any such textile undertaking to the National Textile Corporation (Uttar Pradesh) Limited, as the case may be, or to any other subsidiary textile corporation and any such transfer shall be subject to such terms and conditions as may be specified in the said order. (2) The subsidiary textile corporation shall, on and from the date of such transfer, be deemed to be substituted in the licence or other instrument referred to in sub-section (3) of section 4 in place of the National Textile Corporation as if such licence or other instrument had been granted to the subsidiary textile corporation, and shall hold such licence or other instrument for the remainder of the period for which the National Textile Corporation would have held such licence or other instrument. (3) On the transfer to a subsidiary textile corporation of any textile undertaking or any part thereof, the liabilities of the National Textile Corporation, referred to in sub-section (2) of section 5, shall, in so far as they relate to the textile undertaking or part thereof so transferred to the subsidiary textile corporation, become, on and from the date of such transfer, the liabilities of the subsidiary textile corporation and shall be discharged by the subsidiary textile corporation as and when any such liability is required to be discharged. (4) Save as otherwise expressly provided in this Act, references in this Act to the National Textile Corporation shall, in respect of any textile undertaking or any part thereof which is transferred to a subsidiary textile corporation, be construed as references to the subsidiary textile corporation. **7. Shares to be issued by the National Textile Corporation for the value of the assets transferred** **to it by the Central Government.—(1) An amount equal to the value of the assets of a textile** undertaking transferred to, and vested in, the National Textile Corporation under sub-section (2) of section 3, shall be deemed to be contribution made by the Central Government to the equity capital of the National Textile Corporation; and for the contribution so made, the National Textile Corporation shall issue (if necessary after amending its memorandum and articles of association) to the Central Government paid-up shares, in its equity capital, having a face value equal to the amount specified against the textile undertaking in the corresponding entry in column (4) of the First Schedule. (2) Where any liability assumed by the Central Government under this Act is taken over by the National Textile Corporation under section 27, the Central Government shall surrender to that Corporation the shares issued to it under sub-section (1) having the face value equal to the amount to the extent to which the liability has been so taken over by the National Textile Corporation and thereupon the share capital of the National Textile Corporation shall, to the extent of the face value of the shares so surrendered, stand reduced. CHAPTER III PAYMENT OF AMOUNTS **8. Payment of amount to owners of textile undertakings.—The owner of every textile undertaking** shall be given by the Central Government, in cash and in the manner specified in Chapter VI, for the transfer to, and vesting in, it, under sub-section (1) of section 3, of such textile undertaking and the right, title and interest of the owner in relation to such textile undertaking, an amount equal to the amount specified against it in the corresponding entry in column (4) of the First Schedule. **9. Payment of further amount.—(1) In consideration of the retrospective operation of the provisions** of sections 3, 4 and 5, there shall be given, in cash, by the Central Government to the owner of every textile undertaking, the management of which was taken over by the Central Government, an amount equal to an amount calculated at the rate specified in section 5 of the Textile Undertakings (Taking Over of Management) Act, 1983 (40 of 1983), or as the case may be, as specified in section 5 of the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976) for the period commencing on the appointed day and ending on the date on which the Textile Undertakings (Nationalisation) Ordinance, 1995 (Ord. 6 of 1995) was promulgated. 7 ----- (2) In addition to the amount referred to in section 8, there shall be given by the Central Government, in cash, to the owner of every textile undertaking, simple interest at the rate of four per cent.per annum on the amount specified against such owner in the corresponding entry in column (4) of the First Schedule for the period commencing on the appointed day and ending on the date on which payment of such amount is made by the Central Government to the Commissioner. (3) The amount representing interest calculated at the rate specified in sub-section (2) shall be given in addition to the amount specified in the First Schedule. (4) For the removal of doubts, it is hereby declared that the liabilities of the owners in relation to the textile undertakings which have vested in the Central Government under section 3 shall be discharged from the amount referred to in the First Schedule and also from the amounts determined under sub-sections (1) and (2) in accordance with the rights and interests of the creditors of the owner. CHAPTER IV MANAGEMENT, ETC., OF TEXTILE UNDERTAKINGS **10. Management, etc., of Textile undertakings.—The National Textile Corporation or any person** which that Corporation may, by order in writing, specify, shall be entitled to exercise the powers of general superintendence, direction, control and management of the affairs and business of a textile undertaking, the right, title and interest of an owner in relation to which have vested in that Corporation under sub-section (2) of section 3, and do all such things as the owner of the textile undertaking is authorised to exercise and do. **11. Special provision for disposal of assets of the textile undertakings in certain** **circumstances.—If the National Textile Corporation considers it necessary or expedient for the better** management, modernisation, restructuring or revival of a textile undertaking so to do, it may, with the previous sanction of the Central Government, transfer, mortgage, sell or otherwise dispose of any land, plant, machinery or any other assets of any of the textile undertakings: Provided that the proceeds of no such transfer, mortgage, sale or disposal of assets shall be utilised for any purpose other than the purpose for which the sanction of the Central Government has been obtained. **12. Duty of persons in charge of management of textile undertakings to deliver all assets, etc.,—** On the vesting of the management of a textile undertaking in the National Textile Corporation, all persons in charge of the management of such textile undertaking immediately before such vesting shall be bound to deliver to the National Textile Corporation all assets, books of account, registers or other documents in their custody relating to the textile undertaking. **13. Accounts.—The National Textile Corporation shall maintain the accounts of the textile** undertakings in accordance with the provisions of the Companies Act, 1956(1 of 1956). CHAPTER V PROVISIONS RELATING TO EMPLOYEES OF TEXTILE UNDERTAKINGS **14. Employment of certain employees to continue.—(1) Every person who is a workman within the** meaning of the Industrial Disputes Act, 1947 (14 of 1947), and has been, immediately before the appointed day, in the employment of a textile undertaking shall become, on and from the appointed day, an employee of the National Textile Corporation, and shall hold office or service in the National Textile Corporation with the same rights and privileges as to pension, gratuity and other matters as would have been admissible to him if the rights in relation to such textile undertaking had not been transferred to, and vested in, the National Textile Corporation, and shall continue to do so unless and until his employment in the National Textile Corporation is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the National Textile Corporation. (2) Every person who is not a workman within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), and who has been, immediately before the appointed day, in the employment of a textile undertaking shall, in so far as such person is employed in connection with the textile undertaking which has vested in the National Textile Corporation, become, as from the appointed day, an employee of the National Textile Corporation and shall hold his office or service therein by the same tenure, at the same 8 ----- remuneration and upon the same terms and conditions and with the same rights and privileges as to pension and gratuity and other matters as he would have held the same under the textile undertaking if it had not vested in the National Textile Corporation and shall continue to do so unless and until his employment in the National Textile Corporation is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the National Textile Corporation. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, the transfer of the services of any officer or other employee of a textile undertaking to the National Textile Corporation shall not entitle such officer or other employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. (4) Where, under the terms of any contract of service or otherwise, any person whose services become terminated or whose services become transferred to the National Textile Corporation by reason of the provisions of this Act is entitled to any arrears of salary or wages or any payment for any leave not availed of or other payment, not being payment by way of gratuity or pension, such person may, except to the extent such liability has been taken over by the Central Government under section 5, enforce his claim against the owner of the textile undertaking but not against the Central Government or the National Textile Corporation. **15. Provident and other funds.—(1) Where the owner of a textile undertaking has established a** provident fund, superannuation, welfare or other fund for the benefit of the persons employed in such textile undertaking, the monies relatable to the employees, whose services have become transferred by or under this Act to the National Textile Corporation shall, out of the monies standing, on the appointed day, to the credit of such provident fund, superannuation, welfare or other fund, stand transferred to, and shall vest in, the National Textile Corporation. (2) The monies which stand transferred, under sub-section (1), to the National Textile Corporation shall be dealt with by that Corporation in such manner as maybe prescribed. **16. Transfer of employees to a subsidiary textile corporation.—Where any textile undertaking or** any part thereof is transferred under this Act to a subsidiary textile corporation, every person referred to in sub-section (1) and sub-section (2), of section 14 shall, on and from the date of such transfer, become an employee of the subsidiary textile corporation, and the provisions of sections 14 and 15 shall apply to such employee as they apply to an employee of the National Textile Corporation as if references in the said sections to the National Textile Corporation were references to the subsidiary textile corporation. CHAPTER VI COMMISSIONERS OF PAYMENTS **17. Appointment of Commissioners of Payments.—(1) For the purpose of disbursing the amounts** payable to the owner of each textile undertaking, the Central Government shall, by notification in the Official Gazette,— (a) appoint such number of persons as it may think fit to be Commissioners of Payments; and (b) define the local limits within which the Commissioners of Payments shall exercise the powers conferred, and perform the duties imposed, on them by or under this Act. (2) The Central Government may appoint such other persons at it may think fit to assist the Commissioner and thereupon the Commissioner may authorise one or more of such persons also to exercise all or any of the powers exercisable by him under this Act, and different persons may be authorised to exercise different powers. (3) Any person authorised by the Commissioner to exercise any powers may exercise those powers in the same manner and with the same effect as if they have been conferred on that person directly by this Act and not by way of authorisation. (4) The salaries and allowances of the Commissioner and other persons appointed under this section shall be defrayed out of the Consolidated Fund of India. 9 ----- (5) References in this Act to the Commissioner shall, where more than one Commissioner has been appointed, be construed as references to the Commissioner in relation to the textile undertaking within the local limits of the jurisdiction specified under clause (b) of sub-section (1). **18. Payment by the Central Government to the Commissioner.—(1) The Central Government** shall, within thirty days from the specified date, pay in cash to the Commissioner, for payment to the owner of a textile undertaking, an amount equal to the amount specified against the textile undertaking in the First Schedule and shall also pay to the Commissioner such sums as may be due to the owner of a textile undertaking under sub-sections (1) and (2) of section 9. (2) In relation to the textile undertakings, the management of which was taken over by the Central Government under the Textile Undertakings (Taking Over of Management) Act, 1983 (40 of 1983), there shall be paid by the Central Government [in addition to the amount referred to in sub-section (1)], to the Commissioner, in cash, such amount payable under section 5 of that Act as remains unpaid in relation to the period commencing on the date on which such management was taken over by the Central Government and ending on the appointed day. (3) In relation to the textile undertakings, the management of which was taken over by the Central Government under the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976), there shall be paid by the Central Government [in addition to the amount referred to in sub-section (1)], to the Commissioner, in cash, such amount payable under section 5of that Act as remains unpaid in relation to the period commencing on the date on which such management was taken over by the Central Government and ending on the appointed day. (4) A deposit account shall be opened by the Central Government, in favour of the Commissioner, in the Public Account of India, and every amount paid under this Act to the Commissioner shall be deposited by him to the credit of the said deposit account in the Public Account of India, and thereafter the said deposit account shall be operated by the Commissioner. (5) Separate records shall be maintained by the Commissioner in respect of each textile undertaking in relation to which payments have been made to him under this Act. (6) Interest accruing on the amounts standing to the credit of the deposit account referred to in sub-section (4) shall inure to the benefit of the owners of the textile undertakings. **19. Certain powers of the National Textile Corporation.—(1) The National Textile Corporation** shall be entitled to receive, up to the specified date, to the exclusion of all other persons, any money due to the textile undertaking,realised after the appointed day, notwithstanding that the realisations pertain to a period prior to the appointed day. (2) The National Textile Corporation may make a claim to the Commissioner with regard to every payment made by the Custodian after the appointed day but before the date on which the Textile Undertakings (Nationalisation) Ordinance, 1995 (Ord. 6 of 1995) was promulgated for discharging any liability of the owner of textile undertaking in relation to any period prior to the appointed day, and every such claim shall have priority, in accordance with the priorities attaching, under this Act, to the matter in relation to which such liability has been discharged by the Custodian. (3) Save as otherwise provided in this Act, the liabilities in relation to a textile undertaking in respect of any period prior to the appointed day which have not been discharged by the Custodian shall be the liabilities of the owner of that textile undertaking. **20. Claimsto be made to the Commissioner.—Every person having a claim against the owner of a** textile undertaking shall prefer such claim before the Commissioner within thirty days from the specified date: Provided that if the Commissioner is satisfied that the claimant was prevented by sufficient cause from preferring the claim within the said period of thirty days, he may entertain the claim within a further period of thirty days but not thereafter. 10 ----- **21. Priority of claims.—The claims arising out of the matters specified in the Second Schedule shall** have priorities in accordance with the following principles, namely:— (a) category I shall have precedence over all other categories and category II shall have precedence over category III and so on; (b) the claims specified in each of the categories, except category IV, shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; (c) the liabilities specified in category IV shall be discharged, subject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority, inter se, of such loans; and (d) the question of payment of a liability with regard to a matter specified in a lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category. **22. Examination of claims.—(1) On receipt of the claims under section 20, the Commissioner shall** arrange the claims in the order of priority specified in the Second Schedule and examine the same in accordance with the said order. (2) If, on examination of the claims, the Commissioner is of the opinion that the amount paid to him under this Act is not sufficient to meet the liabilities specified in any lower category, he shall not be required to examine the liabilities in respect of such lower category. **23. Admission or rejection of claims.—(1) After examining the claims with reference to the priority** set out in the Second Schedule, the Commissioner shall fix a certain date on or before which every claimant shall file the proof of his claim or be excluded from the benefit of the disbursement made by the Commissioner. (2) Not less than fourteen days’ notice of the date so fixed shall be given by advertisement in one issue of the daily newspaper in the English language and one issue of the daily newspaper in the regional language as the Commissioner may consider suitable, and every such notice shall call upon the claimant to file the proof of his claim with the Commissioner within the time specified in the advertisement. (3) Every claimant who fails to file the proof of his claim within the time specified by the Commissioner shall be excluded from the disbursements made by the Commissioner. (4) The Commissioner shall, after such investigation as may, in his opinion, be necessary and after giving the owner of the textile undertaking an opportunity of refuting the claim and after giving the claimants a reasonable opportunity of being heard, in writing, admit or reject the claim in whole or in part. (5) The Commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge of his functions including the place or places at which he may hold his sittings and shall, for the purpose of making any investigation under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) the summoning and enforcing the attendance of any witness and examining him on oath; (b) the discovery and production of any document or other material object producible as evidence; (c) the reception of evidence on affidavits; and (d) the issuing of any commission for the examination of witnesses. (6) Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Commissioner shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 11 ----- (7) A claimant who is dissatisfied with the decision of the Commissioner may prefer an appeal against the decision to the principal civil court of original jurisdiction within the local limits of whose jurisdiction the textile undertaking is situated: Provided that where a person who is a Judge of a High Court is appointed to be the Commissioner, such appeal shall lie to the High Court for the State in which the textile undertaking is situated, and such appeal shall be heard and disposed of by not less than two Judges of that High Court. **24. Disbursement of money by the Commissioner to claimants.—After admitting a claim under** this Act, the amount due in respect of such claim shall be credited by the Commissioner to the relevant fund or be paid to the person or persons to whom such sums are due and on such credit or payment the liability of the owner in respect of such claim shall stand discharged. **25. Disbursement of amount to the owners.—(1) If, out of the monies paid to him in relation to a** textile undertaking, there is a balance left after meeting the liabilities as specified in the Second Schedule, the Commissioner shall disburse such balance to the owner of such textile undertaking. (2) Before making any payment to the owner of any textile undertaking under sub-section (1), the Commissioner shall satisfy himself as to the right of such person to receive the whole or any part of such amount, and in the event of there being a doubt or dispute as to the right of the person to receive the whole or any part of the amount referred to in sections 8 and 9, the Commissioner shall refer the matter to the court and make the disbursement in accordance with the decision of that court. (3) For the removal of doubts, it is hereby declared that the entries in column (3) of the First Schedule shall not be deemed to be conclusive as to the right, title and interest of any person in relation to any textile undertaking specified in the corresponding entries in column (2) of the said Schedule and evidence shall be admissible to establish the right, title and interest of any person in relation to such textile undertaking. (4) Where any machinery, equipment or other property in a textile undertaking has vested in the National Textile Corporation, but such machinery, equipment or other property does not belong to the owner of such textile undertaking, the amount specified in column (4) of the First Schedule against such textile undertaking shall, on a reference made to it by the Commissioner, be apportioned by the court between the owner of such textile undertaking and the owner of such machinery, equipment or other property having due regard to the value of such machinery, equipment or other property on the appointed day. _Explanation.—In this section, “court”, in relation to a textile undertaking, means the principal civil_ court of original jurisdiction within the local limits of whose jurisdiction the textile undertaking is situated. **26. Undisbursed or unclaimed amounts to be deposited to the general reserve account.—Any** money paid to the Commissioner which remains undisbursed or unclaimed for a period of three years from the last day on which the disbursement was made, shall be transferred by the Commissioner to the general revenue account of the Central Government; but a claim to any money so transferred may be preferred to the Central Government by the person entitled to such payment and shall be dealt with as if such transfer had not been made, the order, if any, for payment of the claim being treated as an order for the refund of revenue. CHAPTER VII MISCELLANEOUS **27. Assumption of liability.—(1) Where any liability of the owner of a textile undertaking arising** out of any item specified in category I of the Second Schedule is not discharged fully by the Commissioner out of the amount paid to him under this Act, the Commissioner shall intimate in writing to the Central Government the extent of the liability which remains undischarged, and that liability shall be assumed by the Central Government. 12 ----- (2) The Central Government may, by order, direct the National Textile Corporation to take over any liability assumed by that Government under sub-section (1), and on receipt of such direction, it shall be the duty of the National Textile Corporation to discharge such liability. **28. Management to continue to vest in the Custodian until alternative arrangements are** **made.— Notwithstanding the vesting, under this Act, of a textile undertaking in the National Textile** Corporation,— (a) the Custodian who has been managing the affairs of such undertaking before the date on which the Textile Undertakings (Nationalisation) Ordinance, 1995 (Ord. 6 of 1995) was promulgated shall, until alternative arrangements have been made by the National Textile Corporation, continue to manage the affairs of such undertakings as if the Custodian had been authorised by the National Textile Corporation to manage the affairs of such undertaking; and (b) the Custodian or any person authorised by him for this purpose shall,until alternative arrangements have been made by the National Textile Corporation, continue to be authorised to operate, in relation to the textile undertaking, any account of such undertaking in a bank as if such Custodian or the person authorised by the Custodian had been authorised by the National Textile Corporation to operate such account. **29. Act to override all other enactments.—The provisions of this Act shall have effect** notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act or in any decree or order of any court, tribunal or authority. **30. Contracts to cease to have effect unless ratified by the National Textile Corporation.—(1)** Every contract entered into by the owner or occupier of any textile undertaking for any service, sale or supply and in force immediately before the appointed day shall, on and from the expiry of one hundred and twenty days from the date on which the Textile Undertakings (Nationalisation) Ordinance, 1995 (Ord. 6 of 1995) was promulgated, cease to have effect unless such contract is before the expiry of that period, ratified, in writing, by the National Textile Corporation and in ratifying such contract the National Textile Corporation may make such alterations or modifications therein as it may think fit: Provided that the National Textile Corporation shall not omit to ratify a contract, and shall not make any alteration or modification in a contract, unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith or is detrimental to the interests of the textile undertaking. (2) The National Textile Corporation shall not omit to ratify a contract or make any alteration or modification therein except after giving to the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reasons for refusal to ratify the contract or for making any alteration or modification therein. **31. Penalties.—Any person who,—** (a) having in his possession, custody or control any property forming part of a textile undertaking, wrongfully withholds such property from the Central Government or the National Textile Corporation, or any person authorised by that Government or Corporation, as the case may be, in this behalf, or (b)wrongfully obtains possession of, or retains, any property forming part of the textile undertaking or wilfully withholds or fails to furnish to the Central Government, the National Textile Corporation or any person specified by that Government, or Corporation, as the case may be, any document relating to such textile undertaking which may be in his possession, custody or control or fails to deliver to the National Textile Corporation or any person specified by that Corporation any assets, books of account, registers or other documents in his custody relating to the textile undertaking, or 13 ----- (c) wrongfully removes or destroys any property forming part of any textile undertaking or prefers any claim under this Act which he knows or has reasonable cause to believe to be false or grossly inaccurate, shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both. **32. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) "company" means any body corporate and includes a firm or other association of individuals; and (b) "director", in relation to a firm, means a partner in the firm. **33. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or any officer of that Government or the Custodian or the National Textile Corporation or any subsidiary textile corporation or any officer or other person authorised by either of such Corporations for anything which is in good faith done or intended to be done under this Act. **34. Textile companies not to be wound up by the Court.—No proceeding for the winding up of a** textile company, the right, title and interest in relation to the textile undertaking owned by which have vested in the National Textile Corporation under this Act or for the appointment of a receiver in respect of the business of the textile undertaking shall lie or be proceeded with in any court except with consent of the Central Government. **35. Delegation of powers.—(1) The Central Government may, by notification, direct that all or any** of the powers exercisable by it under this Act, other than the power under section 36, may also be exercised by any person or persons as may be specified in the notification. (2) Whenever any delegation of power is made under sub-section (1), the person to whom such power has been delegated shall act under the direction, control and supervision of the Central Government. **36. Power to make rules.—(1) The Central Government may, by notification,make rules to carry out** the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the time within which and the manner in which an intimation referred to in sub-section (4) of section 4 shall be given; (b) the manner in which monies in any provident or other fund referred to in section 15 shall be dealt with; (c)any other matter which is required to be, or may be, prescribed. 14 ----- (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **37. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date on which the Textile Undertakings (Nationalisation) Ordinance, 1995 (Ord. 6 of 1995) was promulgated. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **38. Repeal and saving.—(1) The Textile Undertakings (Nationalisation) Ordinance, 1995** (Ord. 6 of 1995), is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 1[39. Validation.—Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority,— (a) the provisions of this Act, as amended by the Textile Undertakings (Nationalisation) Laws (Amendment and Validation) Act, 2014 (36 of 2014), shall have and shall be deemed always to have effect for all purposes as if the provisions of this Act, as amended by the said Act, had been in force at all material times; (b) any lease-hold property divested from the National Textile Corporation to any person under the provisions of this Act, as it stood immediately before the commencement of the Textile Undertakings (Nationalisation) Laws (Amendment and Validation) Act, 2014 (36 of 2014), shall stand transferred to and vest or continue to vest, free from all encumbrances, in the National Textile Corporation in the same manner as it was vested in the National Textile Corporation before such divesting of that property under the provisions of this Act as if the provisions of this Act, as amended by the aforesaid Act, were in force at all material times; (c) no suit or other proceedings shall, without prejudice to the generality of the foregoing provisions, be maintained or continued in any court or tribunal or authority for the enforcement of any decree or order or direction given by such court or tribunal or authority, notwithstanding any undertaking filed by the National Textile Corporation in any court or tribunal or authority, directing divestment of such lease-hold property from the National Textile Corporation vested in it under section 3 of this Act, as it stood before the commencement of the Textile Undertakings (Nationalisation) Laws (Amendment and Validation) Act, 2014 (36 of 2014), and such lease-hold property shall continue to vest in the National Textile Corporation under section 3 of this Act, as amended by the aforesaid Act, as if the said section was in force at all material times; (d) any transfer of any property, vested in the National Textile Corporation, by virtue of any order of attachment, seizure or sale in execution of a decree of a civil court or orders of any tribunal or other authority in respect of lease-hold property vested in the National Textile Corporation which is contrary to the provisions of this Act, as amended by the Textile Undertakings (Nationalisation) Laws (Amendment and Validation) Act, 2014 (36 of 2014), shall be deemed to be null and void and notwithstanding such transfer, continue to vest in the National Textile Corporation under this Act.] 1. Ins. by Act 36 of 2014, s. 7 (w.e.f. 24-10-2014). 15 ----- THE FIRST SCHEDULE [See sections 2(l) and (m), 8 and 18(1)] Sl. Amount Name of the textile undertaking Name of the owner No. (in rupees) (1) (2) (3) (4) 1. Elphinstone Spinning and Weaving Mills, Elphinstone Road, Bombay. 2. Finlay Mills, 10/11, Dr. S.S. Rao Road, Bombay. 3. Gold Mohur Mills, DadasahebPhalke Road, Dadar, Bombay. 4. Jam Manufacturing Mills, Lalbaug, Parel, Bombay. 5. Kohinoor Mills (No. 1), Naigaum Cross Road, Dadar, Bombay. 6. Kohinoor Mills (No. 2), Naigaum Cross Road, Dadar, Bombay. 7. Kohinoor Mills (No. 3), Lady Jamshedji Road, Dadar, Bombay. 8. New City of Bombay Manufacturing Mills, 63, Tukaram B. KadamMarg, Bombay. 9. Podar Mills, N.M, Joshi Marg, Bombay. 10. Podar Mills (Process House), GanpatRaoKadamMarg, Bombay. 11. Shree Madhusudan Mills, PandurangBudhkarMarg, Bombay. 12. Shree Sitaram Mills, N.M. Joshi Marg, Bombay. 13. Tata Mills, Dr. Ambedkar Road, Dadar, Bombay. 14. Laxmirattan Cotton Mills, Kalpi Road Kanpur. 15. Atherton West Cotton Mills, Anwar Ganj, Kanpur. The Elphinstone Spinning and Weaving Mills Co. Ltd., Kamani Chambers, 32, RamjiBhaiKamaniMarg, Bombay-38. The Finlay Mills Ltd., Chartered Bank Building Fort, Bombay-23. The Gold Mohur Mills Ltd.,Chartered Bank Building, Fort, Bombay-23. The Jam Manufacturing Co. Ltd., Lalbaug, Parel, Bombay-12. The Kohinoor Mills Co. Ltd., Killick House, CharanjitRaiMarg (Home Street), Fort, Bombay-1. The New City of Bombay Manufacturing Co. Ltd., 63, TukaramBaisajiKadam Path, Bombay-33. The Podar Mills Ltd., Podar Chambers, Syed Abdulla Brelvi Road, Fort, Bombay-1. The Podar Mills Ltd., Podar Chambers, Syed Abdulla Brelvi Road, Fort, Bombay-1. Shree Madhusudan Mills Ltd., 31, Chowringhee Road, Calcutta-16. Shree Sitaram Mills Ltd., N.M. Joshi Marg, Bombay-11. The Tata Mills Ltd., Bombay House, 24 HomiMody Street, Fort, Bombay- 23. Laxmirattan Cotton Mills Company Limited, BehariNiwas, ChataiMahal, Kanpur. Atherton West and Company Limited, Anwarganj, Kanpur. 16 4,56,98,000 8,14,87,000 5,45,55,000 2,79,62,000 2,33,38,000 4,23,57,000 7,46,30,000 1,91,94,000 2,70,85,000 1,95,20,000 9,33,47,000 2,22,39,000 1,10,95,000 |Col1|Col2| |---|---| ----- THE SECOND SCHEDULE (See sections 21, 22, 23 and 27) _Order of priorities for discharge of liabilities in respect of a textile undertaking_ PART A _Post-take-over management period_ Category I.— (a) Loans advanced by a Bank. (b) Loans advanced by an institution other than a Bank. (c) Any other loan. (d) Any credit availed of for purpose of trade or manufacturing operations. Category II.— (a) Revenue, taxes, cesses, rates or any other dues to the Central Government or a State Government. (b) Any other dues. PART B _Pre-take-over management period_ Category III.— Arrears in relation to provident fund, salaries and wages, and other amounts, due to an employee. Category IV.— Secured loans. Category V.— Revenues, taxes, cesses, rates or any other dues to the Central Government, a State Government, a local authority or a State Electricity Board. Category VI.— (a) Any credit availed of for purpose of trade or manufacturing operations. (b) Any other dues. 17 -----
22-Nov-1995
43
The Waqf Act, 1995
https://www.indiacode.nic.in/bitstream/123456789/1984/3/A1995-43.pdf
central
# THE WAQF ACT, 1995 ________ # ARRANGEMENT OF SECTIONS _______ CHAPTER I PRELIMINARY SECTIONS 1. [Short title, extent and commencement.](http://www.tnwakfboard.org/1995.43.htm#s1) 2. [Application of the Act.](http://www.tnwakfboard.org/1995.43.htm#s2) 3. [Definitions.](http://www.tnwakfboard.org/1995.43.htm#s3) CHAPTER II SURVEY OF AUQAF 4. [Preliminary survey of auqaf.](http://www.tnwakfboard.org/1995.43.htm#s4) 5. [Publication of list of auqaf.](http://www.tnwakfboard.org/1995.43.htm#s5) 6. [Disputes regarding auqaf.](http://www.tnwakfboard.org/1995.43.htm#s6) 7. [Power of Tribunal to determine disputes regarding auqaf.](http://www.tnwakfboard.org/1995.43.htm#s7) 8. State Government to bear cost of survey. CHAPTER III CENTRAL WAQF COUNCIL 9. [Establishment and constitution of Central Waqf Council.](http://www.tnwakfboard.org/1995.43.htm#s9) 10. [Finance of Council.](http://www.tnwakfboard.org/1995.43.htm#s10) 11. [Accounts and audit.](http://www.tnwakfboard.org/1995.43.htm#s11) 12. [Power of Central Government to make rules.](http://www.tnwakfboard.org/1995.43.htm#s12) CHAPTER IV ESTABLISHMENT OF BOARDS AND THEIR FUNCTIONS 13. [Incorporation.](http://www.tnwakfboard.org/1995.43.htm#s13) 14. [Composition of Board.](http://www.tnwakfboard.org/1995.43.htm#s14) 15. [Term of office.](http://www.tnwakfboard.org/1995.43.htm#s15) 16. [Disqualification for being appointed, or for continuing as, a member of the Board.](http://www.tnwakfboard.org/1995.43.htm#s16) 17. [Meetings of the Board.](http://www.tnwakfboard.org/1995.43.htm#s17) 18. [Committees of the Board.](http://www.tnwakfboard.org/1995.43.htm#s18) 19. [Resignation of Chairperson and members.](http://www.tnwakfboard.org/1995.43.htm#s19) 20. [Removal of Chairperson and member.](http://www.tnwakfboard.org/1995.43.htm#s20) 20A. Removal of Chairperson by vote of no confidence. 21. [Filling of a vacancy.](http://www.tnwakfboard.org/1995.43.htm#s21) 22. [Vacancies, etc., not to invalidate proceedings of the Board.](http://www.tnwakfboard.org/1995.43.htm#s22) 23. [Appointment of Chief Executive Officer and his term of office and other conditions of service.](http://www.tnwakfboard.org/1995.43.htm#s23) 24. [Officers and other employees of the Board.](http://www.tnwakfboard.org/1995.43.htm#s24) 25. [Duties and powers of Chief Executive Officer.](http://www.tnwakfboard.org/1995.43.htm#s25) 26. [Powers of Chief Executive Officer in respect of orders or resolutions of Board.](http://www.tnwakfboard.org/1995.43.htm#s26) 27. [Delegation of powers by the Board.](http://www.tnwakfboard.org/1995.43.htm#s27) 28. Power of District Magistrate, Additional District Magistrate or Sub-Divisional Magistrate to implement the directions of the Board. 29. [Powers of Chief Executive Officer to inspect records, registers, etc.](http://www.tnwakfboard.org/1995.43.htm#s29) ----- SECTIONS 30. [Inspection of records.](http://www.tnwakfboard.org/1995.43.htm#s30) 31. [Prevention of disqualification for membership of Parliament.](http://www.tnwakfboard.org/1995.43.htm#s31) 32. [Powers and functions of the Board.](http://www.tnwakfboard.org/1995.43.htm#s32) 33. [Powers of inspection by Chief Executive Officer or persons authorised by him.](http://www.tnwakfboard.org/1995.43.htm#s33) 34. [Recovery of the amount determined under section 33.](http://www.tnwakfboard.org/1995.43.htm#s34) 35. [Conditional attachment by Tribunal.](http://www.tnwakfboard.org/1995.43.htm#s35) CHAPTER V REGISTRATION OF AUQAF 36. [Registration.](http://www.tnwakfboard.org/1995.43.htm#s36) 37. [Register of auqaf.](http://www.tnwakfboard.org/1995.43.htm#s37) 38. [Powers of Board to appoint Executive Officer.](http://www.tnwakfboard.org/1995.43.htm#s38) 39. [Powers of Board in relation to auqaf which have ceased to exist.](http://www.tnwakfboard.org/1995.43.htm#s39) 40. [Decision if a property is waqf property.](http://www.tnwakfboard.org/1995.43.htm#s40) 41. [Power to cause registration of waqf and to amend register.](http://www.tnwakfboard.org/1995.43.htm#s41) 42. [Change in the management of auqaf to be notified.](http://www.tnwakfboard.org/1995.43.htm#s42) 43. [Auqaf registered before the commencement of this Act deemed to be registered.](http://www.tnwakfboard.org/1995.43.htm#s43) CHAPTER VI MAINTENANCE OF ACCOUNTS OF AUQAF 44. [Budget.](http://www.tnwakfboard.org/1995.43.htm#s44) 45. [Preparation of budget of auqaf under direct management of the Board.](http://www.tnwakfboard.org/1995.43.htm#s45) 46. [Submission of Accounts of auqaf.](http://www.tnwakfboard.org/1995.43.htm#s46) 47. [Audit of accounts of auqaf.](http://www.tnwakfboard.org/1995.43.htm#s47) 48. [Board to pass orders on auditor’s report.](http://www.tnwakfboard.org/1995.43.htm#s48) 49. [Sums certified to be due recoverable as arrears of land revenue.](http://www.tnwakfboard.org/1995.43.htm#s49) 50. [Duties of mutawalli.](http://www.tnwakfboard.org/1995.43.htm#s50) 51. [Alienation of waqf property without sanction of Board to be void.](http://www.tnwakfboard.org/1995.43.htm#s51) 52. [Recovery of waqf property transferred in contravention of section 51.](http://www.tnwakfboard.org/1995.43.htm#s52) 52A. Penalty for alienation of waqf property without sanction of Board. 53. [Restriction on purchase of property on behalf of waqf.](http://www.tnwakfboard.org/1995.43.htm#s53) 54. [Removal of encroachment from waqf property.](http://www.tnwakfboard.org/1995.43.htm#s54) 55. [Enforcement of orders made under section 54.](http://www.tnwakfboard.org/1995.43.htm#s55) 55A. Disposal of property left on waqf property by unauthorised occupants. 56. [Restriction on power to grant lease of waqf property.](http://www.tnwakfboard.org/1995.43.htm#s56) 57. [Mutawalli entitled to pay certain costs from income of waqf property.](http://www.tnwakfboard.org/1995.43.htm#s57) 58. [Power of Board to pay dues in case of default by mutawalli.](http://www.tnwakfboard.org/1995.43.htm#s58) 59. [Creation of reserve fund.](http://www.tnwakfboard.org/1995.43.htm#s59) 60. [Extension of time.](http://www.tnwakfboard.org/1995.43.htm#s60) 61. [Penalties.](http://www.tnwakfboard.org/1995.43.htm#s61) 62. [Mutawalli not to spend any money belonging to waqf for self defence.](http://www.tnwakfboard.org/1995.43.htm#s62) 63. [Power to appoint mutawallis in certain cases.](http://www.tnwakfboard.org/1995.43.htm#s63) 64. [Removal of mutawalli.](http://www.tnwakfboard.org/1995.43.htm#s64) 65. [Assumption of direct management of certain auqaf by the Board.](http://www.tnwakfboard.org/1995.43.htm#s65) 66. [Powers of appointment and removal of mutawalli when to be exercised by the State Government.](http://www.tnwakfboard.org/1995.43.htm#s66) 67. [Supervision and supersession of committee of management.](http://www.tnwakfboard.org/1995.43.htm#s67) 68. [Duty of mutawalli or committee to deliver possession of records, etc.](http://www.tnwakfboard.org/1995.43.htm#s68) 69. [Power of Board to frame scheme for administration of waqf.](http://www.tnwakfboard.org/1995.43.htm#s69) 70. [Inquiry relating to administration of waqf.](http://www.tnwakfboard.org/1995.43.htm#s70) 71. [Manner of holding inquiry.](http://www.tnwakfboard.org/1995.43.htm#s71) ----- CHAPTER VII FINANCE OF THE BOARD SECTIONS 72. [Annual contribution payable to Board.](http://www.tnwakfboard.org/1995.43.htm#s72) 73. [Power of Chief Executive Officer to direct banks or other person to make payments.](http://www.tnwakfboard.org/1995.43.htm#s73) 74. [Deduction of contribution from perpetual annuity payable to the waqf.](http://www.tnwakfboard.org/1995.43.htm#s74) 75. [Power of board to borrow.](http://www.tnwakfboard.org/1995.43.htm#s75) 76. [Mutawalli not to lend or borrow moneys without sanction.](http://www.tnwakfboard.org/1995.43.htm#s76) 77. [Waqf Fund.](http://www.tnwakfboard.org/1995.43.htm#s77) 78. [Budget of Board.](http://www.tnwakfboard.org/1995.43.htm#s78) 79. [Accounts of Board.](http://www.tnwakfboard.org/1995.43.htm#s79) 80. [Audit of accounts of Board.](http://www.tnwakfboard.org/1995.43.htm#s80) 81. [State Government to pass orders on auditor’s report.](http://www.tnwakfboard.org/1995.43.htm#s81) 82. [Dues of Board to be recovered as arrears of land revenue.](http://www.tnwakfboard.org/1995.43.htm#s82) CHAPTER VIII JUDICIAL PROCEEDINGS 83. Constitution of Tribunals, etc. 84. [Tribunal to hold proceedings expeditiously and to furnish to the parties copies of its decision.](http://www.tnwakfboard.org/1995.43.htm#s84) 85. [Bar of jurisdiction of civil courts.](http://www.tnwakfboard.org/1995.43.htm#s85) 86. [Appointment of a receiver in certain cases.](http://www.tnwakfboard.org/1995.43.htm#s86) 87. [Omitted.]. 88. [Bar to challenge of validity of any notification, etc.](http://www.tnwakfboard.org/1995.43.htm#s88) 89. [Notice of suits by parties against Board.](http://www.tnwakfboard.org/1995.43.htm#s89) 90. [Notice of suits, etc., by courts.](http://www.tnwakfboard.org/1995.43.htm#s90) 91. [Proceedings under the Act 1 of 1894.](http://www.tnwakfboard.org/1995.43.htm#s91) 92. [Board to be party to suit or proceeding.](http://www.tnwakfboard.org/1995.43.htm#s92) 93. [Bar to compromise of suits by or against mutawalli.](http://www.tnwakfboard.org/1995.43.htm#s93) 94. [Power to make application to the Tribunal in case of failure of mutawalli to discharge his duties.](http://www.tnwakfboard.org/1995.43.htm#s94) 95. [Power of appellate authority to entertain appeal after expiry of specified period.](http://www.tnwakfboard.org/1995.43.htm#s95) CHAPTER IX MISCELLANEOUS 96. [Power of Central Government to regulate secular activities of auqaf.](http://www.tnwakfboard.org/1995.43.htm#s96) 97. [Directions by State Government.](http://www.tnwakfboard.org/1995.43.htm#s97) 98. [Annual report by State Government.](http://www.tnwakfboard.org/1995.43.htm#s98) 99. [Power to supersede Board.](http://www.tnwakfboard.org/1995.43.htm#s99) 100. [Protection of action taken in good faith.](http://www.tnwakfboard.org/1995.43.htm#s100) 101. [Survey Commissioner, members and officers of the Board, deemed to be public servants.](http://www.tnwakfboard.org/1995.43.htm#s101) 102. [Special provision for reorganisation of certain Boards.](http://www.tnwakfboard.org/1995.43.htm#s102) 103. [Special provision for establishment of Board for part of a State.](http://www.tnwakfboard.org/1995.43.htm#s103) 104. [Application of Act to properties given or donated by persons not professing Islam for support of](http://www.tnwakfboard.org/1995.43.htm#s104) [certain waqf.](http://www.tnwakfboard.org/1995.43.htm#s104) 104A. Prohibition of sale, gift, exchange, mortgage or transfer of waqf property. 104B. Restoration of waqf properties in occupation of Government agencies to waqf Board. 105. [Power of Board and Chief Executive Officer to require copies of documents, etc., to be](http://www.tnwakfboard.org/1995.43.htm#s105) [furnished.](http://www.tnwakfboard.org/1995.43.htm#s105) 106. [Powers of Central Government to constitute common Boards.](http://www.tnwakfboard.org/1995.43.htm#s106) 107. [Act 36 of 1963 not to apply for recovery of waqf properties.](http://www.tnwakfboard.org/1995.43.htm#s107) 108. [Special provision as to evacuee waqf properties.](http://www.tnwakfboard.org/1995.43.htm#s108) 108A. Act to have overriding effect. ----- SECTIONS 109. [Power to make rules.](http://www.tnwakfboard.org/1995.43.htm#s109) 110. [Powers to make regulations by the Board.](http://www.tnwakfboard.org/1995.43.htm#s110) 111. [Laying of rules and regulations before State Legislature.](http://www.tnwakfboard.org/1995.43.htm#s111) 112. [Repeal and savings.](http://www.tnwakfboard.org/1995.43.htm#s112) 113. [Power to remove difficulties.](http://www.tnwakfboard.org/1995.43.htm#s113) ----- # THE WAQF ACT, 1995 ACT NO. 43 OF 1995 [22nd _November, 1995.]_ # An Act to provide for the better administration of [1][Auqaf] and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the [2][Waqf] Act, 1995.** (2) It extends to the whole of India [3]***. (3) It shall come into force in a State on such date[4] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different areas within a State and for different provisions of this Act, and any reference in any provision to the commencement of this Act, shall, in relation to any State or area therein, be construed as reference to the commencement of that provision in such State or area. **2. Application of the Act.—Save as otherwise expressly provided under this Act, this Act shall apply** to all [1][auqaf] whether created before or after the commencement of this Act: Provided that nothing in this Act shall apply to Durgah Khawaja Saheb, Ajmer to which the Durgah Khawaja Saheb Act, 1955 (36 of 1955) applies. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “beneficiary” means a person or object for whose benefit a [2][waqf] is created and includes religious, pious and charitable objects and any other objects of public utility sanctioned by the Muslim law: (b) “benefit” does not include any benefit which a mutawalli is entitled to claim solely by reason of his being such mutawalli; (c) “Board” means a Board of [2][Waqf] established under sub-section (1), or as the case may be, [under sub-section (2) of section 13 and shall include a common](http://www.tnwakfboard.org/1995.43.htm#s13) [2][Waqf] Board established [under section 106;](http://www.tnwakfboard.org/1995.43.htm#s106) [(d) “Chief Executive Officer” means the Chief Executive Officer appointed under sub-section (1)](http://www.tnwakfboard.org/1995.43.htm#s23) [of section 23;](http://www.tnwakfboard.org/1995.43.htm#s23) [(e) “Council” means the Central [2][Waqf] Council established under section 9;](http://www.tnwakfboard.org/1995.43.htm#s9) 5[(ee) “encroacher” means any person or institution, public or private, occupying waqf property, in whole or part, without the authority of law and includes a person whose tenancy, lease or licence has expired or has been terminated by mutawalli or the Board;] [(f) “Executive Officer” means the Executive Officer appointed by the Board under sub-section (1)](http://www.tnwakfboard.org/1995.43.htm#s38) [of section 38;](http://www.tnwakfboard.org/1995.43.htm#s38) 6[(g) “list of auqaf” means the list of auqaf published under sub-section (2) of section 5 or contained in the register of auqaf maintained under section 37;] (h) “member” means a member of the Board and includes the Chairperson; 1. Subs. by Act 27 of 2013, s. 2, for “wakfs” (w.e.f. 1-11-2013). 2. Subs. by s. 3, ibid., for “wakf” (w.e.f. 1-11-2013). 3. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 4. 1st January, 1996, vide notification No. S.O. 1007 (E), dated 27th December, 1995, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 5. Ins. by s. 5, ibid. (w.e.f. 1-11-2013). 6. Subs. by s. 5, ibid., for clause (g) (w.e.f. 1-11-2013). ----- (i) “mutawalli” means any person appointed, either verbally or under any deed or instrument by which a [1][waqf] has been created, or by a competent authority, to be the mutawalli of a [1][waqf] and includes any person who is a mutawalli of a [1][waqf] by virtue of any custom or who is a naib-mutawalli, khandim, mujawar, sajjadanashin, amin or other person appointed by a mutawalli to perform the duties of a mutawalli and save as otherwise provided in this Act, any person, committee or corporation for the time being, managing or administering any [1][waqf] or [1][waqf] property: Provided that no member of a committee or corporation shall be deemed to be a mutawalli unless such member is an office-bearer of such committee or corporation: 2[Provided further that the mutawalli shall be a citizen of India and shall fulfil such other qualifications as may be prescribed: Provided also that in case a waqf has specified any qualifications, such qualifications may be provided in the rules as may be made by the State Government;] (j) “net annual income”, in relation to a [1][waqf], means net annual income determined in [accordance with the provisions of the Explanations to sub-section (1) of section 72;](http://www.tnwakfboard.org/1995.43.htm#s72_Ex1) (k) “person interested in a [1][waqf]” means any person who is entitled to receive any pecuniary or other benefits from the [1][waqf] and includes— (i) any person who has a right to [3][offer prayer] or to perform any religious rite in a mosque, idgah, imambara,dargah, [4][khanqah, peerkhana and karbala], maqbara, graveyard or any other religious institution connected with the [1][waqf] or to participate in any religious or charitable institution under the [1][waqf]; (ii) the [5][waqif] and any descendant of the [5][waqif] and the mutawalli; (l) “prescribed”, except in Chapter III, means prescribed by rules made by the State Governments; (m) “regulations” means the regulations made by the Board under this Act; (n) “Shia [1][waqf]” means a [1][waqf] governed by Shia Law; (o) “Sunni [1][waqf]” means a [1][waqf] governed by Sunni Law; (p) “Survey Commissioner” means the Survey Commissioner of [1][Waqf] appointed under [sub-section (1) of section 4 and includes any Additional or Assistant Survey Commissioners of](http://www.tnwakfboard.org/1995.43.htm#s4) [6[Auqaf] under sub-section (2) of section 4;](http://www.tnwakfboard.org/1995.43.htm#s4) [(q) “Tribunal”, in relation to any area, means the Tribunal constituted under sub-section (1) of](http://www.tnwakfboard.org/1995.43.htm#s83) [section 83, having jurisdiction in relation to that area;](http://www.tnwakfboard.org/1995.43.htm#s83) 7[(r) “waqf” means the permanent dedication by any person, of any movable or immovable property for any purpose recognised by the Muslim law as pious, religious or charitable and includes— (i) a waqf by user but such waqf shall not cease to be a waqf by reason only of the user having ceased irrespective of the period of such cesser; (ii) a Shamlat Patti, Shamlat Deh, Jumla Malkkan or by any other name entered in a revenue record; (iii) “grants”, including mashrat-ul-khidmat for any purpose recognised by the Muslim law as pious, religious or charitable; and 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Ins. by s. 5, ibid. (w.e.f. 1-11-2013). 3. Subs. by s. 5, ibid., for “worship” (w.e.f. 1-11-2013). 4. Subs. by s. 5, ibid., for “khangah” (w.e.f. 1-11-2013). 5. Subs. by s. 4, ibid., for “wakif” (w.e.f. 1-11-2013). 6. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 7. Subs. by s. 5, ibid., for clause (r) (w.e.f. 1-11-2013). ----- (iv) a waqf-alal-aulad to the extent to which the property is dedicated for any purpose recognised by Muslim law as pious, religious or charitable, provided when the line of succession fails, the income of the waqf shall be spent for education, development, welfare and such other purposes as recognised by Muslim law, and “waqif” means any person making such dedication;] (s) “[1][waqf] deed” means any deed or instrument by which a [1][waqf] has been created and includes any valid subsequent deed or instrument by which any of the terms of the original dedication have been varied; [(t) “[1][Waqf] Fund” means a [1][waqf] fund formed under sub-section (1) of section 77.](http://www.tnwakfboard.org/1995.43.htm#s77) CHAPTER II SURVEY OF [2][AUQAF] **4. Preliminary survey of** [2][auqaf].—(1) The State Government may, by notification in the Official Gazette, appoint for the State a Survey Commissioner of [2][Auqaf] and as many Additional or Assistant Survey Commissioners of [2][Auqaf] as may be necessary for the purpose of making a survey of [3][auqaf in the State]. 4[(1A) Every State Government shall maintain a list of auqaf referred to in sub-section (1) and the survey of auqaf shall be completed within a period of one year from the date of commencement of the Wakf (Amendment) Act, 2013 (27 of 2013), in case such survey was not done before the commencement of the Wakf (Amendment) Act, 2013: Provided that where no Survey Commissioner of Waqf has been appointed, a Survey Commissioner for auqaf shall be appointed within three months from the date of such commencement.] (2) All Additional and Assistant Survey Commissioner of [2][Auqaf] shall perform their functions under this Act under the general supervision and control of the Survey Commissioner of [2][Auqaf]. (3) The Survey Commissioner shall, after making such inquiry as he may consider necessary, submit his report, in respect of [2][auqaf] existing at the date of the commencement of this Act in the State or any part thereof, to the State Government containing the following particulars, namely:— (a) the number of [2][auqaf] in the State showing the Shia [2][auqaf] and Sunni [2][auqaf] separately; (b) the nature and objects of each [1][waqf]; (c) the gross income of the property comprised in each [1][waqf]; (d) the amount of land revenue, cesses, rates and taxes payable in respect of each [1][waqf]; (e) the expenses incurred in the realisation of the income and the pay or other remuneration of the mutawalli of each [1][waqf]; and (f) such other particulars relating to each [1][waqf] as may be prescribed. (4) The Survey Commissioner shall, while making any inquiry, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:— (a) summoning and examining any witness; (b) requiring the discovery and production of any document; (c) requisitioning any public record from any court or office; (d) issuing commissions for the examination of any witness or accounts; (e) making any local inspection or local investigation; (f) such other matters as may be prescribed. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “ wakfs” (w.e.f. 1-11-2013). 3. Subs. by s. 6, ibid., for “wakfs existing in the State at the date of the commencement of this Act” (w.e.f. 1-11-2013). 4. Ins. by s. 6, ibid. (w.e.f. 1-11-2013). ----- (5) If, during any such inquiry, any dispute arises as to whether a particular [1][waqf] is a Shia 1[waqf] or Sunni 1[waqf] and there are clear indications in the deed of 1[waqf] as to its nature, the dispute shall be decided on the basis of such deed. (6) The State Government may, by notification in the Official Gazette, direct the Survey Commissioner to make a second or subsequent survey of [1][waqf] properties in the State and the provisions of sub-sections (2), (3), (4) and (5) shall apply to such survey as they apply to a survey directed under sub-section (1): Provided that no such second or subsequent survey shall be made until the expiry of a period of 2[ten years] from the date on which the report in relation to the immediately previous survey was submitted under sub-section (3): 3[Provided further that the waqf properties already notified shall not be reviewed again in subsequent survey except where the status of such property has been changed in accordance with the provisions of any law.] **5. Publication of list of** **[[4][auqaf].—(1) On receipt of a report under sub-section (3) of section 4, the](http://www.tnwakfboard.org/1995.43.htm#s4_3)** State Government shall forward a copy of the same to the Board. (2) The Board shall examine the report forwarded to it under sub-section (1) and [5][fordward it back to the Government within a period of six months for publication in the Official Gazette] a list of Sunni 4[auqaf] or Shia 4[auqaf] in the State, whether in existence at the commencement of this Act or coming into existence thereafter, to which the report relates, and containing such other particulars as may be prescribed. 6[(3) The revenue authorities shall— (i) include the list of auqaf referred to in sub-section (2), while updating the land records; and (ii) take into consideration the list of auqaf referred to in sub-section (2), while deciding mutation in the land records. (4) The State Government shall maintain a record of the lists published under sub-section (2) from time to time.] **6. Disputes regarding [4][auqaf].—(1) If any question arises whether a particular property specified as** 1[waqf] property in the list of 4[auqaf] is 1[waqf] property or not or whether a 1[waqf] specified in such list is a Shia [1][waqf] or Sunni [1][waqf], the Board or the mutawalli of the [1][waqf] or [7][any person aggrieved] may institute a suit in a Tribunal for the decision of the question and the decision of the Tribunal in respect of such matter shall be final: Provided that no such suit shall be entertained by the Tribunal after the expiry of one year from the date of the publication of the list of [4][auqaf]: 8[Provided further that no suit shall be instituted before the Tribunal in respect of such properties notified in a second or subsequent survey pursuant to the provisions contained in sub-section (6) of section 4.] 9* - - - (2) Notwithstanding anything contained in sub-section (1), no proceeding under this Act in respect of any [1][waqf] shall be stayed by reason only of the pendency of any such suit or of any appeal or other proceeding arising out of such suit. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 6, ibid., for “twenty years” (w.e.f. 1-11-2013). 3. Ins. by s. 6, ibid. (w.e.f. 1-11-2013). 4. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 5. Subs. by s. 7, ibid., for “publish in the Official Gazette” (w.e.f. 1-11-2013). 6. Ins. by s. 7, ibid. (w.e.f. 1-11-2013). 7. Subs. by s. 8, ibid., for “any person interested therein” (w.e.f. 1-11-2013). 8. Ins. by s. 8, ibid. (w.e.f. 1-11-2013). 9. The Explanation omitted by s. 8, ibid.(w.e.f. 1-11-2013). ----- (3) The Survey Commissioner shall not be made a party to any suit under sub-section (1) and no suit, prosecution or other legal proceeding shall lie against him in respect of anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder. (4) The list of [1][auqaf] shall, unless it is modified in pursuance of a decision of the Tribunal under sub-section (1), be final and conclusive. (5) On and from the commencement of this Act in a State, no suit or other legal proceeding shall be instituted or commenced in a court in that State in relation to any question referred to in sub-section (1). **7. Power of Tribunal to determine disputes regarding** **[1][auqaf].—(1) If, after the commencement** of this Act, [2][any question or dispute] arises, whether a particular property specified as [3][waqf] property in a list of [1][auqaf] is [3][waqf] property or not, or whether a [3][waqf] specified in such list is a Shia [3][waqf] or a Sunni [3][waqf], the Board or the mutawalli of the [3][waqf], [4][or any person aggrieved by the publication of the list of auqaf under section 5] therein, may apply to the Tribunal having jurisdiction in relation to such property, for the decision of the question and the decision of the Tribunal thereon shall be final: Provided that— (a) in the case of the list of [1][auqaf] relating to any part of the State and published after the commencement of this Act no such application shall be entertained after the expiry of one year from the date of publication of the list of [1][auqaf]; and (b) in the case of the list of [1][auqaf] relating to any part of the State and published at any time within a period of one year immediately preceding the commencement of this Act, such an application may be entertained by Tribunal within the period of one year from such commencement: Provided further that where any such question has been heard and finally decided by a civil court in a suit instituted before such commencement, the Tribunal shall not re-open such question. (2) Except where the Tribunal has no jurisdiction by reason of the provisions of sub-section (5), no proceeding under this section in respect of any [3][waqf] shall be stayed by any court, tribunal or other authority by reason only of the pendency of any suit, application or appeal or other proceeding arising out of any such suit, application, appeal or other proceeding. (3) The Chief Executive Officer shall not be made a party to any application under sub-section (1). (4) The list of [1][auqaf] and where any such list is modified in pursuance of a decision of the Tribunal under sub-section (1), the list as so modified, shall be final. (5) The Tribunal shall not have jurisdiction to determine any matter which is the subject-matter of any [suit or proceeding instituted or commenced in a civil court under sub-section (1) of section 6, before the](http://www.tnwakfboard.org/1995.43.htm#s6) commencement of the Act or which is the subject-matter of any appeal from the decree passed before such commencement in any such suit or proceeding or of any application for revision or review arising out of such suit, proceeding or appeal, as the case may be. 5[(6) The Tribunal shall have the powers of assessment of damages by unauthorised occupation of waqf property and to penalise such unauthorised occupants for their illegal occupation of the waqf property and to recover the damages as arrears of land revenue through the Collector: Provided that whosoever, being a public servant, fails in his lawful duty to prevent or remove an encroachment, shall on conviction be punishable with fine which may extend to fifteen thousand rupees for each such offence.] **6[8. State Government to bear cost of survey.—The total cost of making a survey including the cost** of publication of the list or lists of auqaf under this Chapter shall be borne by the State Government.] 1. Subs. by Act 27 of 2013, s. 4, for “wakfs” (w.e.f. 1-11-2013). 2. Subs. by s. 9, ibid., for “any question” (w.e.f. 1-11-2013). 3. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 4. Subs. by s. 9, ibid., for “or any person interested” (w.e.f. 1-11-2013). 5. Ins. by s. 9, ibid. (w.e.f. 1-11-2013). 6. Subs. by s. 10, ibid., for section 8 (w.e.f. 1-11-2013). ----- CHAPTER III CENTRAL [1][WAQF] COUNCIL **9. Establishment and constitution of Central** **[1][Waqf] Council.—[2][(1) The Central Government** may, by notification in the Official Gazette, establish a Council to be called the Central Waqf Council, for the purpose of advising the Central Government, the State Governments and the Boards on matters concerning the working of Boards and the due administration of auqaf. (1A) The Council referred to in sub-section (1) shall issue directives to the Boards, on such issues and in such manner, as provided under sub-sections (4) and (5).] (2) The Council shall consist of— (a) the Union Minister in-charge of [1][waqf]—ex officio Chairperson; (b) the following members to be appointed by the Central Government from amongst Muslims, namely:— (i) three persons to represent Muslim organisations having all India character and national importance; 3[(ii) four persons of national eminence, one each from the fields of administration or management, financial management, engineering or architecture and medicine;] (iii) three Members of Parliament of whom two shall be from the House of the People and one from the Council of States; (iv) Chairpersons of three Boards by rotation; (v) two persons who have been Judges of the Supreme Court or a High Court; (vi) one Advocate of national eminence; (vii) one person to represent the mutawallis of the [1][waqf] having a gross annual income of rupees five lakhs and above; (viii) three persons who are eminent scholars in Muslim Law: 4[Provided that at least two of the members appointed under sub-clauses (i) to (viii) shall be women.] (3) The term of office of, the procedure to be followed in the discharge of their functions by, and the manner of filling casual vacancies among, members of the Council shall be such as may be, prescribed by rules made by the Central Government. 4[(4) The State Government or, as the case may be, the Board, shall furnish information to the Council on the performance of Waqf Boards in the State, particularly on their financial performance, survey, maintenance of waqf deeds, revenue records, encroachment of waqf properties, annual reports and audit reports in the manner and time as may be specified by the Council and it may _suo motu call for_ information on specific issues from the Board, if it is satisfied that there was _prima facie evidence of_ irregularity or violation of the provisions of this Act and if the Council is satisfied that such irregularity or violation of the Act is established, it may issue such directive, as considered appropriate, which shall be complied with by the concerned Board under intimation to the concerned State Government. (5) Any dispute arising out of a directive issued by the Council under sub-section (4) shall be referred to a Board of Adjudication to be constituted by the Central Government, to be presided over by a retired Judge of the Supreme Court or a retired Chief Justice of a High Court and the fees and travelling and other allowances payable to the Presiding Officer shall be such as may be specified by that Government.] 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 11, ibid., for sub-section (1) (w.e.f. 1-11-2013). 3. Subs. by s. 11, ibid., for sub-clause (ii) (w.e.f. 1-11-2013). 4. Ins. by s. 11, ibid. (w.e.f. 1-11-2013). ----- **10. Finance of Council.—(1) Every Board shall pay from its** [1][Waqf] Fund annually to the Council such contribution as is equivalent to one per cent. of the aggregate of the net annual income of the [2[auqaf] in respect of which contribution is payable under sub-section (1) of section 72:](http://www.tnwakfboard.org/1995.43.htm#s72) Provided that where the Board, in the case of any particular [1][waqf] has remitted under [sub-section (2) of section 72 the whole of the contribution payable to it under sub-section (1) of that](http://www.tnwakfboard.org/1995.43.htm#s72_2) section, then for calculating the contribution payable to the Council under this section the net annual income of the [1][waqf] in respect of which such remission has been granted shall not be taken into account. (2) All monies received by the Council under sub-section (1) and all other monies received by it as donations, benefactions and grants shall form a fund to be called the Central [1][Waqf] Fund. (3) Subject to any rules that may be made by the Central Government in this behalf, the Central 1[Waqf] Fund shall be under the control of the Council and may be applied for such purposes as the Council may deem fit. **11. Accounts and audit.—(1) The Council shall cause to be maintained such books of account and** other books in relation to its accounts in such form and in such manner as may be prescribed by rules made by the Central Government. (2) The accounts of the Council shall be audited and examined annually by such auditor as may be appointed by the Central Government. (3) The costs of the audit shall be paid from the Central [1][Waqf] Fund. **12. Power of Central Government to make rules.—(1) The Central Government may,** [by notification in the Official Gazette, make rules to carry out the purposes of this Chapter.](http://www.tnwakfboard.org/cenrule.htm) (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the term of office of, the procedure to be followed in the discharge of their functions by, and the manner of filling casual vacancies among, the members of the Council; (b) control over and application of the Central [1][Waqf] Fund; (c) the form and manner in which accounts of the Council may be maintained. (3) Every rule made by the Central Government under this Chapter shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of third days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under the rule. CHAPTER IV ESTABLISHMENT OF BOARDS AND THEIR FUNCTIONS **13. Incorporation.—(1) With effect from such date as the State Government may, by notification in** the Official Gazette, appoint in this behalf, there shall be established a Board of [2][Auqaf] under such name as may be specified in the notification: 3[Provided that in case where a Board of Waqf has not been established, as required under this sub-section, a Board of Waqf shall, without prejudice to the provisions of this Act or any other law for the time being in force, be established within six months from the date of commencement of the Wakf (Amendment) Act, 2013 (27 of 2013).] 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 3. Ins. by s. 12, ibid. (w.e.f. 1-11-2013). ----- (2) Notwithstanding anything contained in sub-section (1), if the Shia [1][auqaf] in any State constitute in number more than fifteen per cent. of all the [1][auqaf] in the State or if the income of the properties of the Shia [1][auqaf] in the State constitutes more than fifteen per cent. of the total income of properties of all the [1][auqaf] in the State, the State Government may, by notification in the Official Gazette, establish a Board of [1][Auqaf] each for Sunni [1][auqaf] and for Shia [1][auqaf] under such names as may be specified in the notification. 2[(2A) Where a Board of Waqf is established under sub-section (2) of section 13, in the case of Shia waqf, the Members shall belong to the Shia Muslim and in the case of Sunni waqf, the Members shall belong to the Sunni Muslim.] (3) The Board shall be a body corporate having perpetual succession and a common seal with power to acquire and hold property and to transfer any such property subject to such conditions and restrictions as may be prescribed and shall by the said name sue and be sued. **14. Composition of Board.—(1) The Board for a State and [3][the National Capital Territory of Delhi]** shall consist of— (a) a Chairperson; (b) one and not more than two members, as the State Government may think fit, to be elected from each of the electoral colleges consisting of— (i) Muslim Members of Parliament from the State or, as the case may be, [3][the National Capital Territory of Delhi]; (ii) Muslim Members of the State Legislature; 4[(iii) Muslim members of the Bar Council of the concerned State or Union territory: Provided that in case there is no Muslim member of the Bar Council of a State or a Union territory, the State Government or the Union territory administration, as the case may be, may nominate any senior Muslim advocate from that State or the Union territory, and] (iv) mutawallis of the [1][auqaf] having an annual income of rupees one lakh and above. 5[Explanation I.—For the removal of doubts, it is hereby declared that the members from categories mentioned in sub-clauses (i) to (iv), shall be elected from the electoral college constituted for each category. _Explanation II.—For the removal of doubts it is hereby declared that in case a Muslim_ member ceases to be a Member of Parliament from the State or National Capital Territory of Delhi as referred to in sub-clause (i) of clause (b) or ceases to be a Member of the State Legislative Assembly as required under sub-clause (ii) of clause (b), such member shall be deemed to have vacated the office of the member of the Board for the State or National Capital Territory of Delhi, as the case may be, from the date from which such member ceased to be a Member of Parliament from the State National Capital Territory of Delhi, or a Member of the State Legislative Assembly, as the case may be;] 6[(c) one person from amongst Muslims, who has professional experience in town planning or business management, social work, finance or revenue, agriculture and development activities, to be nominated by the State Government; (d) one person each from amongst Muslims, to be nominated by the State Government from recognised scholars in Shia and Sunni Islamic Theology; (e) one person from amongst Muslims, to be nominated by the State Government from amongst the officers of the State Government not below the rank of Joint Secretary to the State Government;] 1. Subs. by Act 27 of 2013, s. 4, for “wakfs” (w.e.f. 1-11-2013). 2. Ins. by s. 12, ibid. (w.e.f. 1-11-2013). 3. Subs. by s. 13, ibid., for “the Union territory of Delhi” (w.e.f. 1-11-2013). 4. Subs. by s. 13, ibid., for sub-clause (iii) (w.e.f. 1-11-2013). 5. Ins. by s. 13, ibid. (w.e.f. 1-11-2013). 6. Subs. by s. 13, ibid., for clauses (c), (d) and (e) (w.e.f. 1-11-2013). ----- 1[(1A) No Minister of the Central Government or, as the case may be, a State Government, shall be elected or nominated as a member of the Board: Provided that in case of a Union territory, the Board shall consist of not less than five and not more than seven members to be appointed by the Central Government from categories specified under sub-clauses (i) to (iv) of clause (b) or clauses (c) to (e) in sub-section (1): Provided further that at least two Members appointed on the Board shall be women: Provided also that in every case where the system of mutawalli exists, there shall be one mutawalli as the member of the Board.] (2) Election of the members specified in clause (b) of sub-section (1) shall be held in accordance with the system of proportional representation by means of a single transferable vote, in such manner as may [be prescribed:](http://www.tnwakfboard.org/tnrule1.htm) Provided that where the number of Muslim Members of Parliament, the State Legislature or the State Bar Council, as the case may be, is only one, such Muslim Member shall be declared to have been elected on the Board: Provided further that where there are no Muslim Members in any of the categories mentioned in sub-clauses (i) to (iii) of clause (b) of sub-section (1) the ex-Muslim Members of Parliament, the State Legislature or ex-member of the State Bar Council, as the case may be, shall constitute the electoral college. (3) Notwithstanding anything contained in this section, where the State Government is satisfied, for reasons to be recorded in writing, that it is not reasonably practicable to constitute an electoral college for any of the categories mentioned in sub-clauses (i) to (iii) of clause (b) of sub-section (1), the State Government may nominate such persons as the members of the Board as it deems fit. (4) The number of elected members of the Board shall, at all times, be more than the nominated members of the Board except as provided under sub-section (3). 2* - - - (6) In determining the number of Shia members or Sunni members of the Board, the State Government shall have regard to the number and value of Shia [3][auqaf] and Sunni [3][auqaf] to be administered by the Board and appointment of the members shall be made, so far as may be, in accordance with such determination. 2* - - - (8) Whenever the Board is constituted or reconstituted, the members of the Board present at a meeting convened for the purpose shall elect one from amongst themselves as the Chairperson of the Board. (9) The members of the Board shall be appointed by the State Government by notification in the Official Gazette. **15. Term of office.—The members of the Board shall hold office for a term of five years [4][from the** date of notification referred to in sub-section (9) of section 14]. **16. Disqualification for being appointed, or for continuing as, a member of the Board.—A** person shall be disqualified for being appointed, or for continuing as, a member of the Board if— (a) he is not a Muslim and is less than twenty-one years of age; (b) he is found to be a person of unsound mind; (c) he is an undischarged insolvent; (d) he has been convicted of an offence involving moral turpitude and such conviction has not been reversed or he has not been granted full pardon in respect of such offence; 1. Ins. by Act 27 of 2013, s. 13 (w.e.f. 1-11-2913). 2. Sub-sections (5) and (7) omitted by s. 13, ibid. (w.e.f. 1-11-2013). 3. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 4. Ins. by s. 14, ibid. (w.e.f. 1-11-2013). ----- 1[(da) he has been held guilty of encroachment on any waqf property;] (e) he has been on a previous occasion— (i) removed from his office as a member or as a mutawalli, or (ii) removed by an order of a competent court or tribunal from any position of trust either for mismanagement or for corruption.] **17. Meetings of the Board.—(1) The Board shall meet for the transaction of business at such time** and places as may be provided by regulations. (2) The Chairperson, or in his absence, any member chosen by the members from amongst themselves shall preside at a meeting of the Board. (3) Subject to the provisions of this Act, all questions which come before any meeting of the Board shall be decided by a majority of votes of the members present, and in the case of equality of votes, the Chairperson or, in his absence, any other person presiding shall have a second or casting vote. **18. Committees of the Board.—(1) The Board may, whenever it considers necessary, establish** either generally or for a particular purpose or for any specified area or areas committees for the supervision of [2][auqaf]. (2) The Constitution, functions and duties and the term of office of such committees shall be determined from time to time by the Board: Provided that it shall not be necessary for the members of such committees to be members of the Board. **19. Resignation of Chairperson and members.—The Chairperson or any other member may resign** his office by writing under his hand addressed to the State Government: Provided that the Chairperson or the member shall continue in office until the appointment of his successor is notified in the Official Gazette. **20. Removal of Chairperson and member.—(1) The State Government may, by notification in the** Official Gazette, remove the Chairperson of the Board or any member thereof if he— [(a) is or becomes subject to any disqualifications specified in section 16; or](http://www.tnwakfboard.org/1995.43.htm#s16) (b) refuses to act or is incapable of acting or acts in a manner which the State Government, after hearing any explanation that he may offer, considers to be prejudicial to the interests of the 2[auqaf]; or (c) fails in the opinion of the Board, to attend three consecutive meetings of the Board, without sufficient excuse. (2) Where the Chairperson of the Board is removed under sub-section (1), he shall also cease to be a member of the Board. 3[20A. Removal of Chairperson by vote of no confidence.—Without prejudice to the provisions of section 20, the Chairperson of a Board may be removed by vote of no confidence in the following manner, namely:— (a) no resolution expressing a vote of confidence or no confidence in any person elected as Chairperson of a Board shall be moved except in the manner prescribed and twelve months have not elapsed after the date of his election as a Chairperson and be removed except with the prior permission of the State Government; (b) notice for no confidence shall be addressed to the State Government stating clearly the grounds on which such motion is proposed to be moved and shall be signed by at least half the total members of the Board; 1. Ins. by Act 27 of 2013, s. 15 (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 3. Ins. by s. 16, ibid. (w.e.f. 1-11-2013). ----- (c) at least three members of the Board signing the notice of no confidence shall personally present to the State Government, the notice together with an affidavit signed by them to the effect that the signatures on no confidence motion are genuine and have been made by the signatories after hearing or reading the contents of the notice; (d) on receipt of the notice of no confidence, as provided hereinabove, the State Government shall fix such time, date and place as may be considered suitable for holding a meeting for the purpose of the proposed no confidence motion: Provided that at least fifteen days notice shall be given for such a meeting; (e) notice for meeting under clause (d) shall also provide that in the event of no confidence motion being duly carried on or, election of the new Chairperson, as the case may be, shall also be held in the same meeting; (f) the State Government shall also nominate a Gazetted Officer (other than an officer of the department which is concerned with the supervision and administration of the Board) to act as presiding officer of the meeting in which the resolution for no confidence shall be considered; (g) the quorum for such a meeting of the Board shall be one-half of the total number of members of the Board; (h) the resolution for no confidence shall be deemed to be carried out, if passed by a simple majority of the members present; (i) if a resolution for no confidence is carried out, the Chairperson shall cease to hold office forthwith and shall be succeeded by his successor who shall be elected by another resolution in the same meeting; (j) election of the new Chairperson shall be conducted under clause (i), in the meeting under the chairmanship of the said presiding officer referred to in clause (f), in the following manner, namely:— (A) Chairperson shall be elected from amongst the elected members of the Board; (B) nomination of candidates shall be proposed and seconded in the meeting itself and election after withdrawal, if any, shall be held by method of secret ballot; (C) election shall be held by simple majority of the members present in the meeting and in case of equality of votes, the matter shall be decided by drawing of lots; and (D) proceedings of the meeting shall be signed by the presiding officer; (k) new Chairperson elected under clause (h) shall hold the office only up to the remainder of the term of the Chairperson removed by the resolution of no confidence; and (l) if the motion for passing the resolution of no confidence fails for want of quorum or lack of requisite majority at the meeting, no subsequent meeting for considering the motion of no confidence shall be held within six months of the date of the previous meeting.] **21. Filling of a vacancy.—When the seat of a member becomes vacant by his removal, resignation,** death or otherwise, a new member shall be appointed in his place and such member shall hold office so long as the member whose place he fills would have been entitled to hold office, if such vacancy had not occurred. **22. Vacancies, etc., not to invalidate proceedings of the Board.—No act or proceeding of the** Board shall be invalid by reason only of the existence of any vacancy amongst its member or any defect in the constitution thereof. **23. Appointment of Chief Executive Officer and his term of office and other conditions of** **service.—[1][(1)There shall be a full-time Chief Executive Officer of the Board who shall be a Muslim and** shall be appointed by the State Government, by notification in the Official Gazette, from a panel of two names suggested by the Board and who shall not be below the rank of Deputy Secretary to the State 1. Subs. by Act 27 of 2013, s. 17, for sub-section (1) (w.e.f. 1-11-2013). ----- Government, and in case of non-availability of a Muslim officer of that rank, a Muslim officer of equivalent rank may be appointed on deputation.] (2) The term of office and other conditions of service of the Chief Executive Officer shall be such as may be prescribed. (3) The Chief Executive Officer shall be ex officio Secretary of the Board and shall be under the administrative control of the Board. **24. Officers and other employees of the Board.—(1) The Board shall have the assistance of such** number of officers and other employees as may be necessary for the efficient performance of its functions under this Act, details thereof shall be determined by the Board in consultation with the State Government. (2) The appointment of officers and other employees, their term of office and conditions of service shall be such as may be provided by regulations. **25. Duties and powers of Chief Executive Officer.—(1) Subject to the provisions of this Act and of** the rules made thereunder and the directions of the Board, functions of the Chief Executive Officer shall include— (a) investigating the nature and extent of [1][auqaf] and [2][waqf] properties and calling whenever necessary, an inventory of [2][waqf] properties and calling, from time to time, for accounts, returns and information from mutawallis; (b) inspecting or causing inspection of [2][waqf] properties and accounts, records, deeds or documents relating thereto; (c) doing generally of such acts as may be necessary for the control, maintenance and superintendence of [1][auqaf]. (2) In exercising the powers of giving directions under sub-section (1) in respect of any [2][waqf], the Board shall act in conformity with the directions by the [2][waqf] in the deed of the [2][waqf], the purpose of 2[waqf] and such usage and customs of the 2[waqf] as are sanctioned by the school of Muslim law to which the [2][waqf] belongs. (3) Save as otherwise expressly provided in this Act, the Chief Executive Officer shall exercise such powers and perform such duties as may be assigned to him or delegated to him under this Act. **26. Powers of Chief Executive officer in respect of orders or resolutions of Board.—Where the** Chief Executive Officer considers that an order or resolution passed by the Board— (a) has not been passed in accordance with the law; or (b) is in excess of or is an abuse of the powers conferred on the Board by or under this Act or by any other law; or (c) if implemented, is likely to— (i) cause financial loss to the Board or to the concerned [2][waqf] or to the [1][auqaf] generally; or (ii) lead to a riot or breach of peace; or (iii) cause danger to human life, health or safety; or (d) is not beneficial to the Board or to any [2][waqf] or to [1][auqaf] generally, he may, before implementing such order or resolution, place the matter before the Board for its reconsideration and, if such order or resolution is not confirmed by a majority of vote of the members present and voting after such reconsideration, refer the matter to the State Government along with his objections to the order or resolution, and the decision of the State Government thereon shall be final. 1. Subs. by Act 27 of 2013, s. 4, for “wakfs” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). ----- **1[27. Delegation of powers by the Board.—The Board may, by a general or special order in writing,** delegate to the Chairperson, any other member, the Chief Executive Officer or any other officer or servant of the Board or any area committee, subject to such conditions and limitations as may be specified in the said order, such of its powers and duties under this Act, as it may deem necessary, except the powers and functions of the Board mentioned under clauses (c), (d), (g) and (j) of sub-section (2) of section 32 and section 110.] **2[28. Power of District Magistrate, Additional District Magistrate or Sub-Divisional Magistrate** **to implement the directions of the Board.—Subject to the provisions of this Act and the rules made** thereunder, the District Magistrate or in his absence an Additional District Magistrate or Sub-Divisional Magistrate of a District in the State shall be responsible for implementation of the decisions of the Board which may be conveyed through the Chief Executive Officer and the Board may, wherever considers necessary, seek directions from the Tribunal for the implementation of its decisions.] **29. Powers of Chief Executive Officer to inspect records, registers, etc.—[3][(1)]** The Chief Executive Officer or any officer of the Board duly authorised by him in this behalf shall, [4][subject to such conditions as may be prescribed], be entitled at all reasonable time to inspect, in any public office, any records, registers or other documents relating to a [5][waqf], or movable or immovable properties which are 5[waqf] properties or are claimed to be 5[waqf] properties. [6][(2) The mutawalli or any other person having the custody of any document related to waqf properties shall produce the same, within the prescribed period, before the Chief Executive Officer on being called upon to do so in writing. (3) Subject to such conditions as may be prescribed, an agency of the Government or any other organisation shall supply, within ten working days, copies of the records, registers of properties or other documents relating to waqf properties or claimed to be waqf properties, to the Chief Executive Officer on a written request to this effect from him: Provided that before taking any course of action as mentioned in sub-sections (2) and (3), the Chief Executive Officer shall obtain approval of the Board.] **30. Inspection of records.—(1) The Board may allow inspection of its proceedings or other records** in its custody and issue copies of the same on payment of such fees and subject to such conditions as may be prescribed. (2) All copies issued under this section shall be certified by the Chief Executive Officer of the Board in the manner provided in section 76 of the Indian Evidence Act, 1872 (1 of 1872). (3) The powers conferred on the Chief Executive Officer by sub-section (2) may be exercised by such other officer or officers of the Board as may either generally or specially be authorised in this behalf by the Board. **31. Prevention of disqualification for membership of Parliament.—It is hereby declared that the** offices of the Chairperson or member of a Board shall not be disqualified and shall be deemed never to have been disqualified for being chosen as, or for being, a Member of Parliament [7][or a Member of Union territory Legislature or a Member of a State Legislature if so declared under a law made by the appropriate State Legislature]. **32. Powers and functions of the Board.—(1) Subject to any rules that may be made under this Act,** the general superintendence of all [8][auqaf] in a State shall vest in the Board established or the State; and it shall be the duty of the Board so to exercise its powers under this Act as to ensure that the [8][auqaf] under its superintendence are properly maintained, controlled and administered and the income thereof is duly applied to the objects and for the purposes for which such [8][auqaf] were created or intended: 1. Subs. by Act 27 of 2013, s. 18, for section 27 (w.e.f. 1-11-2013). 2. Subs. by s. 19, ibid., for section 28 (w.e.f. 1-11-2013). 3. S. 29 numbered as sub-section (1) thereof by s. 20, ibid. (w.e.f. 1-11-2013). 4. Subs. by s. 20, ibid., for certain words (w.e.f.1-11-2013). 5. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 6. Ins. by s. 20, ibid. (w.e.f. 1-11-2013). 7. Ins. by s. 21, ibid. (w.e.f. 1-11-2013). 8. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). ----- Provided that in exercising its powers under this Act in respect of any [1][waqf], the Board shall act in conformity with the directions of the [2][waqif], the purposes of the [1][waqf] and any usage or custom of the 1[waqf] sanctioned by the school of Muslim law to which the 1[waqf] belongs. _Explanation.—For the removal of doubts, it is hereby declared that in this sub-section, “[1][waqf]”_ includes a [1][waqf] in relation to which any scheme has been made by any court of law, whether before or after the commencement of this Act. (2) Without prejudice to the generality of the foregoing power, the functions of the Board shall be— (a) to maintain a record containing information relating to the origin, income, object and beneficiaries of every [1][waqf]; (b) to ensure that the income and other property of [3][auqaf] are applied to the objects and for the purposes for which such [3][auqaf] were intended or created; (c) to give directions for the administration of [3][auqaf]; (d) to settle schemes of management for a [1][waqf]: Provided that no such settlement shall be made without giving the parties affected an opportunity of being heard; (e) to direct— (i) the utilisation of the surplus income of a [1][waqf] consistent with the objects of [1][waqf]; (ii) in what manner the income of a [1][waqf], the objects of which are not evident from any written instrument, shall be utilised; (iii) in any case where any object of [1][waqf] has ceased to exist or has become incapable of achievement, that so much of the income of the [1][waqf] as was previously applied to that object shall be applied to any other object, which shall be similar, or nearly similar or to the original object or for the benefit of the poor or for the purpose of promotion of knowledge and learning in the Muslim community: Provided that no direction shall be given under this clause without giving the parties affected, an opportunity of being heard. _Explanation.—For the purposes of this clause, the powers of the Board shall be exercised—_ (i) in the case of a Sunni [1][waqf], by the Sunni members of the Board only; and (ii) in the case of a Shia [1][waqf], by the Shia members of the Board only: Provided that where having regard to the number of the Sunni or Shia members in the board and other circumstances, it appears to the Board that the power should not be exercised by such members only, it may co-opt such other Muslims being Sunnis or Shias, as the case may be, as it thinks fit, to be temporary members of the Board for exercising its powers under this clause; (f) to scrutinise and approve the budgets submitted by mutawallis and to arrange for auditing of account of [3][auqaf]; (g) to appoint and remove mutawallis in accordance with the provisions of this Act; (h) to take measures for the recovery of lost properties of any [1][waqf]; (i) to institute and defend suits and proceedings relating to [3][auqaf]; 4[(j) to sanction lease of any immovable property of a waqf in accordance with the provisions of this Act and the rules made thereunder: Provided that no such sanction shall be given unless a majority of not less than two-thirds of the members of the Board present cast their vote in favour of such transaction: 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakif” (w.e.f. 1-11-2013). 3. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 4. Subs. by s. 22, ibid., for clause (j) (w.e.f. 1-11-2013). ----- Provided further that where no such sanction is given by the Board, the reasons for doing so shall be recorded in writing.] (k) to administer the [1][Waqf] Fund; (l) to call for such returns, statistics, accounts and other information from the mutawallis with respect to the [1][waqf] property as the Board may, from time to time, require; (m) to inspect, or cause inspection of, [1][waqf] properties, accounts, records or deeds and documents relating thereto; (n) to investigate and determine the nature and extent of [1][waqf] and [1][waqf] property, and to cause, whenever necessary, a survey of such [1][waqf] property; [2][(na) to determine or cause to be determined, in such manner as may be specified by the Board, market rent of the waqf land or building;] (o) generally do all such acts as may be necessary for the control, maintenance and administration of [3][auqaf]. (3) Where the Board has settled any scheme of management under clause (d) or given any direction under clause (e) of sub-section (2), any person interested in the [1][waqf] or affected by such settlement or direction may institute a suit in a Tribunal for setting aside such settlement or directions and the decision of the Tribunal thereon shall be final. (4) Where the Board is satisfied that any [1][waqf] land, which is a [1][waqf] property, [4][has the potential for development as an educational institution, shopping centre, market, housing or residential flats and the like], market, housing flats and the like, it may serve upon the mutawalli of the concerned [1][waqf] a notice requiring him within such time, but not less than sixty days, as may be specified in the notice, to convey its decision whether he is willing to execute the development works specified in the notice. (5) On consideration of the reply, if any, received to the notice issued under sub-section (4), the Board, if it is satisfied that the mutawalli is not willing or is not capable of executing the works required to be executed in terms of the notice, it may, [5]*** take over the property, clear it of any building or structure thereon, which, in the opinion of the Board is necessary for execution of the works and execute such works from [1][waqf] funds or from the finances which may be raised on the security of the properties of the [1][waqf] concerned, and control and manage the properties till such time as all expenses incurred by the Board under this section, together with interest thereon, the expenditure on maintenance of such works and other legitimate charges incurred on the property are recovered from the income derived from the property: Provided that the Board shall compensate annually the mutawalli of the concerned [1][waqf] to the extent of the average annual net income derived from the property during the three years immediately preceding the taking over of the property by the Board. (6) After all the expenses as enumerated in sub-section (5) have been recouped from the income of the developed properties, the developed properties shall be handed over to mutawalli of the concerned 1[waqf]. **33. Powers of inspection by Chief Executive Officer or persons authorised by him.—(1) With a** view to examining whether, by reason of any failure or negligence on the part of a mutawalli in the performance of his executive or administrative duties, any loss or damage has been caused to any [1][waqf] or [1][waqf] property, the Chief Executive Officer [6][or any other person authorised by him in writing] with the prior approval of the Board, [7]***, may inspect all movable and immovable properties, which are 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Ins. by s. 22, ibid. (w.e.f. 1-11-2013). 3. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 4. Subs. by s. 22, ibid., for “offers a feasible potential for development as a shopping centre” (w.e.f. 1-11-2013). 5. The words “with the prior approval of the Government,” omitted by s. 22, ibid. (w.e.f. 1-11-2013). 6. Ins. by s. 23, ibid. (w.e.f. 1-11-2013). 7. The words “either himself or any other person authorised by him in writing in this behalf” omitted by s. 23, _ibid._ (w.e.f. 1-11-2013). ----- 1[waqf] properties, and all records, correspondences, plans, accounts and other documents relating thereto. (2) Whenever any such inspection as referred to in sub-section (1) is made, the concerned mutawalli and all officers and other employees working under him and every person connected with the administration of the [1][waqf], shall extend to the person making such inspection, all such assistance and facilities as may be necessary and reasonably required by him to carry out such inspection, and shall also produce for inspection any movable property or documents relating to the [1][waqf] as may be called for by the person making the inspection and furnish to him such information relating to the [1][waqf] as may be required by him. (3) Where, after any such inspection, it appears that the concerned mutawalli or any officer or other employee who is or was working under him had mis-appropriated, misapplied or fraudulently retained, any money or other [1][waqf] property, or had incurred irregular, unauthorised or improper expenditure from the funds of the [1][waqf], the Chief Executive Officer may, after giving the mutawalli or the person concerned a reasonable opportunity of showing cause why an order for the recovery of the amount or property, should not be passed against him and after considering such explanation, if any, as such person may furnish, determine the amount or the property which has been mis-appropriated, misapplied or fraudulently retained, or the amount of the irregular, unauthorised or improper expenditure incurred by such person, and make an order directing such person to make payment of the amount so determined and to restore the said property to the [1][waqf], within such time as may be specified in the order. (4) A mutawalli or other person aggrieved by such order may, within thirty days of the receipt by him of the order, appeal to the Tribunal: Provided that no such appeal shall be entertained by the Tribunal unless the appellant first deposits with the Chief Executive Officer the amount which has been determined under sub-section (3) as being payable by the appellant and the Tribunal shall have no power to make any order staying pending the disposal of the appeal, the operation of the order made by the Chief Executive Officer under sub-section (3). (5) The Tribunal may, after taking such evidence as it may think fit, confirm, reverse or modify the order made by the Chief Executive Officer under sub-section (3) or may remit, either in whole or in part, the amount specified in such order and may make such orders as to costs as it may think appropriate in the circumstances of the case. (6) The order made by the Tribunal under sub-section (5) shall be final. **34. Recovery of the amount determined under section 33.—Where any mutawalli or other person** who has been ordered, whether under sub-section (3) or sub-section (5) of section 33, to make any payment or to restore the possession of any property, omits or fails to make such payment or restoration within the time specified in such order, the Chief Executive Officer, with the prior approval of the Board shall, take such steps as he may think fit for the recovery of possession of the property aforesaid and shall also send a certificate to the Collector of the district in which the property of such mutawalli or other person is situate, stating therein the amount that has been determined by him or by the Tribunal, as the case may be, under section 33, as being payable by such mutawalli or other person, and, thereupon, the Collector shall recover the amount specified in such certificate as if it were an arrear of land revenue and on the recovery of such amount, pay the same to the Chief Executive Officer, who shall, on receipt thereof, credit the amount to the funds of the concerned [1][waqf]. **35. Conditional attachment by Tribunal.—(1) Where the Chief Executive Officer is satisfied that** the mutawalli or any other person who has been ordered under sub-section (3) or sub-section (5) of section 33 to make any payment, with intent to defeat or delay the execution of the said order,— (a) is about to dispose of the whole or any part of the property; or (b) is about to remove the whole or any part of the property from the jurisdiction of the Chief Executive Officer, he may, with prior approval of the Board, apply to the Tribunal for the conditional attachment of the said property or such part thereof, as he may think necessary. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). ----- (2) The Chief Executive Officer shall, unless the Tribunal otherwise directs, specify in the application the property required to be attached and the estimated value thereof. (3) The Tribunal may direct the mutawalli or the person concerned, as the case may be, within a time to be fixed by it, either to furnish security, in such sum as may be specified in the order, to produce and place at the disposal of the Tribunal when required, the said property or the value of the same or such portion thereof as may be sufficient to satisfy the amount specified in the certificate referred to in section 34, or to appear and show cause why he should not furnish such security. (4) The Tribunal may also in the order direct the conditional attachment of the whole or any portion of the property so specified. (5) Every attachment made under this section shall be made in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), as if it were an order for attachment made under the provision of the said Code. CHAPTER V REGISTRATION OF [1][AUQAF] **36. Registration.—(1) Every [2][waqf], whether created before or after the commencement of this Act,** shall be registered at the office of the Board. (2) Application for registration shall be made by the mutawalli: Provided that such applications may be [3][made by the waqf] or his descendants or a beneficiary of the 2[waqf] or any Muslim belonging to the sect to which the 2[waqf] belongs. (3) An application for registration shall be made in such form and manner and at such place as the Board may by regulation provide and shall contain the following particulars:— (a) a description of the [2][waqf] properties sufficient for the identification thereof; (b) the gross annual income from such properties; (c) the amount of land revenue, cesses, rates and taxes annually payable in respect of the [2][waqf] properties; (d) an estimate of the expenses annually incurred in the realisation of the income of the [2][waqf] properties; (e) the amount set apart under the [2][waqf] for— (i) the salary of the mutawalli and allowances to the individuals; (ii) purely religious purposes; (iii) charitable purposes; and (iv) any other purposes; (f) any other particulars provided by the Board by regulations. (4) Every such application shall be accompanied by a copy of the [2][waqf] deed or if no such deed has been executed or a copy thereof cannot be obtained, shall contain full particulars, as far as they are known to the applicant, of the origin, nature and objects of the [2][waqf]. (5) Every application made under sub-section (2) shall be signed and verified by the applicant in the manner provided in the Code of Civil Procedure, 1908 (5 of 1908) for the signing and verification of pleadings. (6) The Board may require the applicant to supply any further particulars or information that it may consider necessary. 1. Subs. by Act 27 of 2013, s. 4, for “wakfs” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 3. Subs. by s. 24, ibid., for “made by the wakf” (w.e.f. 1-11-2013). ----- (7) On receipt of an application for registration, the Board may, before the registration of the [1][waqf] make such inquiries as it thinks fit in respect of the genuineness and validity of the application and correctness of any particulars therein and when the application is made by any person other than the person administering the [1][waqf] property, the Board shall, before registering the [1][waqf], give notice of the application to the person administering the [1][waqf] property and shall hear him if he desires to be heard. (8) In the case of [2][auqaf] created before the commencement of this Act, every application for registration shall be made, within three months from such commencement and in the case of [2][auqaf] created after such commencement, within three months from the date of the creation of the [1][waqf]: Provided that where there is no Board at the time of creation of a [1][waqf], such application will be made within three months from the date of establishment of the Board. **37. Register of [2][auqaf].—** [3][(1)] The Board shall maintain a register of [2][auqaf] which shall contain in respect of each [1][waqf] copies of the [1][waqf] deeds, when available and the following particulars, namely:— (a) the class of the [1][waqf]; (b) the name of the mutawallis; (c) the rule of succession to the office of mutawalli under the [1][waqf] deed or by custom or by usage; (d) particulars of all [1][waqf] properties and all title deeds and documents relating thereto; (e) particulars of the scheme of administration and the scheme of expenditure at the time of registration; (f) such other particulars as may be provided by regulations. 4[(2) The Board shall forward the details of the properties entered in the register of auqaf to the concerned land record office having jurisdiction of the waqf property. (3) On receipt of the details as mentioned in sub-section (2), the land record office shall, according to established procedure, either make necessary entries in the land record or communicate, within a period of six months from the date of registration of waqf property under section 36, its objections to the Board.] **38. Powers of Board to appoint Executive Officer.—(1) Notwithstanding anything contained in this** Act, the Board may, if it is of the opinion that it is necessary so to do in the interests of the [1][waqf], appoint on whole-time or part-time or in an honorary capacity, subject to such conditions as may be provided by regulations, an Executive Officer with such supporting staff as it considers necessary for any 1[waqf] having a gross annual income of not less than five lakh rupees: Provided that the person chosen for appointment should be a person professing Islam. (2) Every Executive Officer appointed under sub-section (1) shall exercise such powers and discharge such duties as pertain only to the administration of the property of the [1][waqf] for which he has been appointed and shall exercise those powers and discharge those duties under the direction, control and supervision of the Board: Provided that the Executive Officer who is appointed for a [1][waqf] having a gross annual income of not less than five lakh rupees shall ensure that the budget of the [1][waqf] is submitted, the accounts of the 1[waqf] are regularly maintained, and the yearly statement of accounts are submitted within such time as the Board may specify. (3) While exercising his powers and discharging his functions under sub-section (2), the Executive Officer shall not interfere with any religious duties or any usage or custom of the [1][waqf] sanctioned by the Muslim law. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 3. S. 37 numbered as sub-section (1) thereof by s. 25, ibid. (w.e.f. 1-11-2013). 4. Ins. by s. 25, ibid. (w.e.f. 1-11-2013). ----- (4) The salaries and allowances of the Executive Officer and his staff shall be fixed by the Board and in fixing the quantum of such salary the Board shall have due regard to the income of the [1][waqf], the extent and nature of the duties of the Executive Officer and shall also ensure that the amounts of such salaries and allowances are not disproportionate to the income of the [1][waqf] and do not operate as an unnecessary financial burden on it. (5) The salaries and allowances of the Executive Officer and his staff shall be paid by the Board from the [1][Waqf] Fund and, if the [1][waqf] generates any additional income as a result of appointment of the Executive Officer, the Board may claim reimbursement of amounts spent on the salaries and allowances from the fund of the [1][waqf] concerned. (6) The Board may, for sufficient reasons, and after giving to the Executive Officer or a member of his staff, a reasonable opportunity of being heard, suspend, remove or dismiss the Executive Officer or a member of his staff from his post. (7) Any Executive Officer or a member of his staff who is aggrieved by any order or removal or dismissal made under sub-section (6) may, within thirty days from the date of communication of the order, prefer an appeal against the order to the Tribunal and the Tribunal may, after considering such representation as the Board may make in the matter, and after giving a reasonable opportunity to the Executive Officer or a member of his staff of being heard, confirm, modify or reverse the order. **39. Powers of Board in relation to [2][auqaf] which have ceased to exist.—(1) The Board shall, if it** is satisfied that the objects or any part thereof, of a [1][waqf] have ceased to exist, whether such cesser took place before or after the commencement of this Act, cause an inquiry to be held by the Chief Executive Officer, in the prescribed manner, to ascertain the properties and funds pertaining to such [1][waqf]. (2) On the receipt of the report of inquiry of the Chief Executive Officer, the Board shall pass an order,— (a) specifying the property and funds of such [1][waqf]; (b) directing that any property or funds pertaining to such [1][waqf] which have been recovered shall be applied or utilised for the renovation of any [1][waqf] property and where there is no need for making any such renovation or where utilisation of the funds for such renovation is not possible, be [appropriated, to any of the purposes specific in sub-clause (iii) of clause (e) of sub-section (2) of](http://www.tnwakfboard.org/1995.43.htm#s32_2eiii) [section 32.](http://www.tnwakfboard.org/1995.43.htm#s32_2eiii) (3) The Board may, if it has reason to believe that any building or other place which was being used for religious purpose or instruction or for charity has, whether before or after the commencement of this Act, ceased to be used for that purpose, make an application to the Tribunal for an order directing the recovery of possession of such building or other place. (4) The Tribunal may, if it is satisfied, after making such inquiry as it may think fit, that such building or other place— (a) is [1][waqf] property; (b) has not been acquired under any law for the time being in force relating to acquisition of land or is not under any process of acquisition under any such law, or has not vested in the State Government under any law for the time being in force relating to land reforms; and (c) is not in the occupation of any person who has been authorised by or under any law for the time being in force to occupy such building or other place, make an order— (i) directing the recovery of such building or place from any person who may be in unauthorised possession thereof, and (ii) directing that such property, building or place be used for religious purpose or instruction [as before, or if such use is not possible, be utilised for any purpose specified in sub-clause (iii) of](http://www.tnwakfboard.org/1995.43.htm#s32_2eiii) [clause (e) of sub-section (2) of section 32.](http://www.tnwakfboard.org/1995.43.htm#s32_2eiii) 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). ----- **40. Decision if a property is** [1][waqf] property.—(1) The Board may itself collect information regarding any property which it has reason to believe to be [1][waqf] property and if any question arises whether a particular property is [1][waqf] property or not or whether a [1][waqf] is a Sunni [1][waqf] or a Shia [1][waqf], it may, after making such inquiry as it may deem fit, decide the question. (2) The decision of the Board on a question under sub-section (1) shall, unless revoked or modified by the Tribunal, be final. (3) Where the Board has any reason to believe that any property of any trust or society registered in pursuance of the Indian Trusts Act, 1882 (2 of 1882) or under the Societies Registration Act, 1860 (21 of 1860) or under any other Act, is [1][waqf] property, the Board may notwithstanding anything contained in such Act, hold an inquiry in regard to such property and if after such inquiry the Board is satisfied that such property is [1][waqf] property, call upon the trust or society, as the case may be, either to register such property under this Act as [1][waqf] property or show cause why such property should not be so registered: Provided that in all such cases, notice of the action proposed to be taken under this sub-section shall be given to the authority by whom the trust or society had been registered. (4) The Board shall, after duly considering such cause as may be shown in pursuance of notice issued under sub-section (3), pass such orders as it may think fit and the order so made by the Board, shall be final, unless it is revoked or modified by a Tribunal. **41. Power to cause registration of** [1][waqf] and to amend register.—The Board may direct a mutawalli to apply for the registration of a [1][waqf], or to supply any information regarding a [1][waqf] or may itself cause the [1][waqf] to be registered or may at any time amend the register of [2][auqaf]. **42. Change in the management of** [2][auqaf] to be notified.—(1) In the case of any change in the management of a registered [1][waqf] due to the death or retirement or removal of the mutawalli, the incoming mutawalli, shall forthwith, and any other person may notify the change to the Board. (2) In the case of any other change in any of the particulars mentioned in section 36, the mutawalli shall, within three months from the occurrence of the change, notify such change to the Board. **43.** [2][Auqaf] registered before the commencement of this Act deemed to be registered.— Notwithstanding anything contained in this Chapter, where any [1][waqf] has been registered before the commencement of this Act, under any law for the time being in force, it shall not be necessary to register the [1][waqf] under the provisions of this Act and any such registration made before such commencement shall be deemed to be a registration made under this Act. CHAPTER VI MAINTENANCE OF ACCOUNTS OF [2][AUQAF] **44. Budget.—(1) Every mutawalli of a [1][waqf] shall, in every year prepare, in such form and at such** time as may be prescribed, a budget in respect of the financial year next ensuing showing the estimated receipts and expenditure during that financial year. (2) Every such budget shall be submitted by the mutawalli at least [3][thirty days] before the beginning of the financial year to the Board and shall make adequate provision for the following:— (i) for carrying out the objects of the [1][waqf]; (ii) for the maintenance and preservation of the [1][waqf] property; (iii) for the discharge of all liabilities and subsisting commitments binding on the [1][waqf] under this Act or any other law for the time being in force. 4[(3) In case the Board considers any item in the budget being contrary to the objects of the waqf and the provisions of this Act, it may give such direction for addition or deletion of such item as it may deem fit.] 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 3. Subs. by s. 26, ibid., for “ninety days” (w.e.f. 1-11-2013). 4. Subs. by s. 26, ibid., for sub-section (3) (w.e.f. 1-11-2013). ----- (4) If in the course of the financial year the mutawalli finds it necessary to modify the provisions made in the budget in regard to the receipt or to the distribution of the amounts to be expended under the different heads, he may submit to the Board a supplementary or a revised budget and the provisions of sub-section (3) shall, as far as may be, apply to such supplementary or revised budget. **45. Preparation of budget of** [1][auqaf] under direct management of the Board.—(1) The Chief Executive Officer shall prepare, in such form and at such time as may be prescribed, a budget in respect of the financial year next ensuing showing the estimated receipts and expenditure for each of the [1][auqaf] under the direct management of the Board, showing therein the estimated receipts and expenditure and submit it to the Board for its approval. (2) While submitting the budget under sub-section (1), the Chief Executive Officer shall also prepare statement giving details of the increase, if any, in the income of each [2][waqf] under the direct management of the Board and the steps which have been taken for its better management and the results accruing therefrom during the year. (3) The Chief Executive Officer shall keep regular accounts and be responsible for the proper management of every [2][waqf] under the direct management of the Board. (4) Every budget submitted by the Chief Executive Officer under sub-section (1) shall comply with the requirements of section 46 and, for this purpose, references therein to the mutawalli of the [3][waqf] shall be construed as references to the Chief Executive Officer. (5) The audit of accounts of every [2][waqf] under the direct management of the Board shall be undertaken by the State Examiner of Local funds or any other officer appointed by the State Government for this purpose, irrespective of the income of the [2][waqf]. (6) The provisions of sub-sections (2) and (3) of section 47 and the provisions of sections 48 and 49 shall, in so far as they are not inconsistent with the provisions of this section, apply to the audit of accounts referred to in this section. (7) Where any [2][waqf] is under the direct management of the Board, such administrative charges as may be specified by the Chief Executive Officer shall be payable by the [2][waqf] to the Board: Provided that the Chief Executive Officer shall not collect more than ten per cent. of the gross annual income of the [2][waqf] under the direct management of the Board as administrative charges. **46. Submission of Accounts of [1][auqaf].—(1) Every mutawalli shall keep regular accounts.** (2) Before the [3][1st day of July] next, following the date on which the application referred to [in section 36 has been made and thereafter before the [3][1st day of July] in every year, every mutawalli of](http://www.tnwakfboard.org/1995.43.htm#s36) a [2][waqf] shall prepare and furnish to the Board a full and true statement of accounts, in such form and containing such particulars as may be provided by regulations by the Board, of all moneys received or expended by the mutawalli on behalf of the [2][waqf] during the period of twelve months ending on the 31st day of March, or, as the case may be, during that portion of the said period during which the provisions of this Act, have been applicable to the [2][waqf]: Provided that the date on which the annual accounts are to be closed may be varied at the discretion of the Board. **47. Audit of accounts of** [1][auqaf].—(1) The accounts of [1][auqaf] submitted to the Board under section 46 shall be audited and examined in the following manner, namely:— (a) in the case of a [2][waqf] having no income or a net annual income not exceeding 4[fifty thousand rupees], the submission of a statement of accounts shall be a sufficient compliance with the provisions of section 46 and the accounts of two per cent. of such [1][auqaf] shall be audited annually by an auditor appointed by the Board; (b) the accounts of the [2][waqf] having net annual income exceeding [4][fifty thousand rupees] shall be audited annually, or at such other intervals as may be prescribed, by an auditor appointed by the 1. Subs. by Act 27 of 2013, s. 4, for “wakfs” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 3. Subs. by s. 27, ibid., for “1st day of May” (w.e.f. 1-11-2013). 4. Subs. by s. 28, ibid., for “ten thousand rupees” (w.e.f. 1-11-2013). ----- Board from out of the panel of auditors prepared by the State Government and while drawing up such panel of auditors, the State Government shall specify the scale of remuneration of auditors; (c) the State Government may, [1][under intimation to the Board,] at any time cause the account of any [2][waqf] audited by the State Examiner of Local Funds or by any other officer designated for that purpose by that State Government. (2) The auditor shall submit his report to the Board and the report of the auditor shall among other things, specify all cases of irregular, illegal or improper expenditure or of failure to recover money or other property caused by neglect or misconduct and any other matter which the auditor considers it necessary to report; and the report shall also contain the name of any person who, in the opinion of the auditor, is responsible for such expenditure or failure and the auditor shall in every such case certify the amount of such expenditure or loss as due from such person. (3) The cost of the audit of the accounts of a [2][waqf] shall be met from the funds of that [2][waqf]: Provided that the remuneration of the auditors appointed from out of the panel drawn by the State Government in relation to [3][auqaf] having a net annual income of [4][more than fifty thousand rupees] shall be paid in accordance with the scale of remuneration specified by the State Government under clause (c) of sub-section (1): Provided further that where the audit of the accounts of any [2][waqf] is made by the State Examiner of Local Funds or any other officer designated by the State Government in this behalf, the cost of such audit shall not exceed one and a half per cent. of the net annual income of such [2][waqf] and such costs shall be met from the funds of the [3][auqaf] concerned. **48. Board to pass orders on auditor’s report.—(1) The Board shall examine the auditor’s report,** and may call for the explanation of any person in regard to any matter mentioned therein, and shall pass such orders as it thinks fit including orders for the recovery of the amount certified by the auditor under sub-section (2) of section 47. (2) The mutawalli or any other person aggrieved by any order made by the Board may, within thirty days of the receipt by him of the order, apply to the Tribunal to modify or set aside the order and the Tribunal may, after taking such evidence as it may think necessary, confirm or modify the order or remit the amount so certified, either in whole or in part, and may also make such order as to costs as it may think appropriate in the circumstances of the case. (3) No application made under sub-section (2) shall be entertained by the Tribunal unless the amount certified by the auditor under sub-section (2) of section 47 has first been deposited in the Tribunal and the Tribunal shall not have any power to stay the operation of the order made by the Board under sub-section (1). (4) The order made by the Tribunal under sub-section (2) shall be final. (5) Every amount for the recovery of which any order has been made under sub-section (1) or sub-section (2) shall, where such amount remains unpaid, be recoverable in the manner specified [in section 34 or section 35 as if the said order were an order for the recovery of any amount determined](http://www.tnwakfboard.org/1995.43.htm#s34) [under sub-section (3) of section 35.](http://www.tnwakfboard.org/1995.43.htm#s38_3) **49. Sums certified to be due recoverable as arrears of land revenue.—(1) Every sum certified to** [be due from any person by an auditor in his report under section 47 unless such certificate is modified or](http://www.tnwakfboard.org/1995.43.htm#s47) cancelled by an order of the Board or of the Tribunal made under section 48, and every sum due on a modified certificate shall be paid by such person within sixty days after the service of a demand notice for the same issued by the Board. (2) If such payment is not made in accordance with the provisions of sub-section (1), the sum payable may, on a certificate issued by the Board after giving the person concerned an opportunity of being heard, be recovered in the same as an arrear of land revenue. 1. Ins. by Act 27 of 2013, s. 28 (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 3. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 4. Subs. by s. 28, ibid., for “more than ten thousand rupees but less than fifteen thousand rupees” (w.e.f. 1-11-2013). ----- **50. Duties of mutawalli.—It shall be the duty of every mutawalli—** (a) to carry out the directions of the Board in accordance with the provisions of this Act or of any rule or order made thereunder; (b) to furnish such returns and supply such information or particulars as may from time to time be required by the Board in accordance with the provisions of this Act or of any rule or order made thereunder; (c) to allow inspection of [1][waqf] properties, accounts or records or deeds and documents relating thereto; (d) to discharge all public dues; and (e) to do any other act which he is lawfully required to do by or under this Act. **51. Alienation of** **[1][waqf] property without sanction of Board to be void.—[2][(1) Notwithstanding** anything contained in the waqf deed, any lease of any immovable property which is waqf property, shall be void unless such lease is effected with the prior sanction of the Board: Provided that no mosque, dargah, khanqah, graveyard, or imambara shall be leased except any unused graveyards in the States of Punjab, Haryana and Himachal Pradesh where such graveyard has been leased out before the date of commencement of the Wakf (Amendment) Act, 2013 (27 of 2013). (1A) Any sale, gift, exchange, mortgage or transfer of waqf property shall be void ab initio: Provided that in case the Board is satisfied that any waqf property may be developed for the purposes of the Act, it may, after recording reasons in writing, take up the development of such property through such agency and in such manner as the Board may determine and move a resolution containing recommendation of development of such waqf property, which shall be passed by a majority of two-thirds of the total membership of the Board: Provided further that nothing contained in this sub-section shall affect any acquisition of waqf properties for a public purpose under the Land Acquisition Act, 1894 (1 of 1894) or any other law relating to acquisition of land if such acquisition is made in consultation with the Board: Provided also that— (a) the acquisition shall not be in contravention of the Places of Public Worship (Special Provisions) Act, 1991 (42 of 1991); (b) the purpose for which the land is being acquired shall be undisputedly for a public purpose; (c) no alternative land is available which shall be considered as more or less suitable for that purpose; and (d) to safeguard adequately the interest and objective of the waqf, the compensation shall be at the prevailing market value or a suitable land with reasonable solatium in lieu of the acquired property.] [3]* - - - **52. Recovery of [1][waqf] property transferred in contravention of section 51.—(1) If the Board is** satisfied, after making any inquiry in such manner as may be prescribed, that any immovable property of a [1][waqf] entered as such in the register of [[1][waqf] maintained under section 36, has been transferred](http://www.tnwakfboard.org/1995.43.htm#s36) [without the previous sanction of the Board in contravention of the provisions of section 51](http://www.tnwakfboard.org/1995.43.htm#s51) [4][or section 56], it may send a requisition to the Collector within whose jurisdiction the property is situate to obtain and deliver possession of the property to it. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 29, ibid., for sub-section (1) (w.e.f. 1-11-2013). 3. Sub-sections (2), (3), (4) and (5) omitted by s. 29, ibid. (w.e.f. 1-11-2013). 4. Ins. by s. 30, ibid. (w.e.f. 1-11-2013). ----- (2) On receipt of a requisition under sub-section (1), the Collector shall pass an order directing the person in possession of the property to deliver the property to the Board within a period of thirty days from the date of the service of the order. (3) Every order passed under sub-section (2) shall be served— (a) by giving or tendering the order, or by sending it by post to the person for whom it is intended; or (b) if such person cannot be found, by affixing the order on some conspicuous part of his last known place of abode or business, or by giving or tendering the order to some adult male member or servant of his family or by causing it to be affixed on some conspicuous part of the property to which it relates: Provided that where the person on whom the order is to be served, is a minor, service upon his guardian or upon any adult male member or servant of his family shall be deemed to be the service upon the minor. (4) Any person aggrieved by the order of the Collector under sub-section (2) may, within a period of thirty days from the date of the service of the order, prefer an appeal to the Tribunal within whose jurisdiction the property is situate and the decision of the Tribunal on such appeal shall be final. (5) Where an order passed under sub-section (2) has not been complied with and the time for appealing against such order has expired without an appeal having been preferred or the appeal, if any, preferred within that time has been dismissed, the Collector shall obtain possession of the property in respect of which the order has been made, using such force, if any, as may be necessary for the purpose and deliver it to the Board. (6) In exercising his functions under this section the Collector shall be guided by such rules as may be provided by regulations. **1[52A. Penalty for alienation of waqf property without sanction of Board.—(1) Whoever** alienates or purchases or takes possession of, in any manner whatsoever, either permanently or temporarily, any movable or immovable property being a waqf property, without prior sanction of the Board, shall be punishable with rigorous imprisonment for a term which may extend to two years: Provided that the waqf property so alienated shall without prejudice to the provisions of any law for the time being in force, be vested in the Board without any compensation therefor. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) any offence punishable under this section shall be cognizable and non-bailable. (3) No court shall take cognizance of any offence under this section except on a complaint made by the Board or any officer duly authorised by the State Government in this behalf. (4) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this section.] **53. Restriction on purchase of property on behalf of [2][waqf].—Notwithstanding anything** contained in a [2][waqf] deed, no immovable property shall be purchased for or on behalf of any [2][waqf] from the funds of any [2][waqf] except with prior sanction of the Board, and the Board shall not accord such sanction unless it considers that the acquisition of such property is necessary or beneficial to the 2[waqf] and that the price proposed to be paid therefor is adequate and reasonable: Provided that before such sanction is accorded, the particulars relating to the proposed transaction shall be published in the Official Gazette inviting objections and suggestions with respect thereto and, the Board shall, after considering the objections and suggestions that may be received by it from mutawallis or other persons interested in the [2][waqf], make such orders as it may think fit. 1. Ins. by Act 27 of 2013, s. 31 (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). ----- **54. Removal of encroachment from [1][waqf] property.—(1) Whenever the Chief Executive Officer** considers whether on receiving any complaint or on his own motion that there has been an encroachment on any land, building, space or other property which is [1][waqf] property and, which has been registered as such under this Act, he shall cause to be served upon the encroacher a notice specifying the particulars of the encroachment and calling upon him to show cause before a date to be specified in such notice, as to why an order requiring him to remove the encroachment before the date so specified should not be made and shall also send a copy of such notice to the concerned mutawalli. (2) The notice referred to in sub-section (1) shall be served in such manner as may be prescribed. (3) If, after considering the objections, received during the period specified in the notice, and after conducting an inquiry in such manner as may be prescribed, the Chief Executive Officer is satisfied that the property in question is [1][waqf] property and that there has been an encroachment on any such [1][waqf] property, [2][he may, make an application to the Tribunal for grant of order of eviction for removing] such encroachment and deliver possession of the land, building, space or other property encroached upon to the mutawalli of the [1][waqf]. 3[(4) The Tribunal, upon receipt of such application from the Chief Executive Officer, for reasons to be recorded therein, make an order of eviction directing that the waqf property shall be vacated by all persons who may be in occupation thereof or any part thereof, and cause a copy of the order to be affixed on the outer door or some other conspicuous part of the waqf property: Provided that the Tribunal may before making an order of eviction, give an opportunity of being heard to the person against whom the application for eviction has been made by the Chief Executive Officer. (5) If any person refuses or fails to comply with the order of eviction within forty-five days from the date of affixture of the order under sub-section (2), the Chief Executive Officer or any other person duly authorised by him in this behalf may evict that person from, and take possession of, the waqf property.] **55. Enforcement of orders made under section 54.—Where the person, ordered under** 4[sub-section (4)] of section 54 to remove any encroachment, omits or fails to remove such encroachment, within the time specified in the order or, as the case may be, fails to vacate the land, building, space or other property to which the order relates, within the time aforesaid, the Chief Executive Officer may 5[refer the order of the Tribunal to the Executive Magistrate] within the local limits of whose jurisdiction the land, building, space or other property, is situate for evicting the encroacher, and, thereupon, such Magistrate shall make an order directing the encroacher to remove the encroachment, or, as the case may be, vacate the land, building, space or other property and to deliver possession thereof to the concerned mutawalli and in default of compliance with the order, remove the encroachment or, as the case may be, evict the encroacher from the land, building, space or other property and may, for this purpose, take such police assistance as may be necessary. **6[55A. Disposal of property left on waqf property by unauthorised occupants.—(1) Where any** person has been evicted from any waqf property under sub-section (4) of section 54, the Chief Executive Officer may, after giving fourteen days’ notice to the person from whom possession of the waqf property has been taken and after publishing the notice in at least one newspaper having circulation in the locality and after proclaiming the contents of the notice by placing it on conspicuous part of the waqf property, remove or cause to be removed or dispose of by public auction any property remaining on such premises. (2) Where any property is sold under sub-section (1), the sale proceeds shall, after deducting the expenses relating to removal, sale and such other expenses, the amount, if any, due to the State 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 32, ibid., for “he may, by an order, require the encroacher to remove” (w.e.f. 1-11-2013). 3. Subs. by s. 32, ibid., for sub-section (4) (w.e.f. 1-11-2013). 4. Subs. by s. 33, ibid., for “sub-section (3)” (w.e.f. 1-11-2013). 5. Subs. by s. 33, ibid., for “apply to the Sub-Divisional Magistrate” (w.e.f. 1-11-2013). 6. Ins. by s. 34, ibid. (w.e.f. 1-11-2013). ----- Government or a local authority or a corporate authority on account of arrears of rent, damages or costs, be paid to such person, as may appear to the Chief Executive Officer to be entitled to the same: Provided that where the Chief Executive Officer is unable to decide as to the person to whom the balance of the amount is payable or as to the appointment of the same, he may refer such dispute to the Tribunal and the decision of the Tribunal thereon shall be final.] **56. Restriction on power to grant lease of** **[1][waqf] property.—(1)** [2][A lease for any period exceeding thirty years] of any immovable property which is 1[waqf] property, shall, notwithstanding anything contained in the deed or instrument of [1][waqf] or in any other law for the time being in force, be void and of no effect: 3[Provided that a lease for any period up to thirty years may be made for commercial activities, education or health purposes, with the approval of the State Government, for such period and purposes as may be specified in the rules made by the Central Government: Provided further that lease of any immovable waqf property, which is an agricultural land, for a period exceeding three years shall, notwithstanding anything contained in the deed or instrument of waqf or in any other law for the time being in force, be void and of no effect: Provided also that before making lease of any waqf property, the Board shall publish the details of lease and invite bids in at least one leading national and regional news papers.] (2) [4][A lease for a period of one year but not exceeding thirty years] of immovable property which is 1[waqf] property shall, notwithstanding anything contained in the deed or instrument of 1[waqf] or in any other law for the time being in force, be void and of no effect unless it is made with the previous sanction of the Board. (3) The Board shall, in granting sanction for lease [5]*** or renewal thereof under this section review the terms and conditions on which the lease [5]*** is proposed to be granted or renewed and make its approval subject to the revision of such terms and conditions in such manner as it may direct: 3[Provided that the Board shall immediately intimate the State Government regarding a lease for any period exceeding three years of any waqf property and thereafter it may become effective after the expiry of forty-five days from the date on which the Board intimates the State Government.] 3[(4) Every rule made by the Central Government under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.] **57. Mutawalli entitled to pay certain costs from income of** **[1][waqf] property.—Notwithstanding** anything contained in the [1][waqf] deed, every mutawalli may pay from the income of the [1][waqf] property any expenses properly incurred by him for the purpose of enabling him to furnish any particulars, [documents or copies under section 36 or any accounts under section 46 or any information or documents](http://www.tnwakfboard.org/1995.43.htm#s36) required by the Board or for the purpose of enabling him to carry out the directions of the Board. **58. Power of Board to pay dues in case of default by mutawalli.—(1) Where a mutawalli refuses** to pay or fails to pay any revenue, cess, rates or taxes due to the Government or any local authority, the Board may discharge dues from the [1][Waqf] Fund and may recover the amount so paid from the [1][waqf] property and may also recover damages not exceeding twelve and a half per cent. of the amount so paid. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by, s. 35, ibid., for “A lease or sub-lease for any period exceeding three years” (w.e.f. 1-11-2013). 3. Ins. by s. 35, ibid. (w.e.f. 1-11-2013). 4. Subs. by s. 35, _ibid.,_ for “A lease or sub-lease for any period exceeding one year and not exceeding three years” (w.e.f. 1-11-2013). 5. The words “or sub-lease” omitted by s. 35, ibid. (w.e.f. 1-11-2013). ----- (2) Any sum of money due under sub-section (1) may, on a certificate issued by the Board after giving the mutawalli concerned an opportunity of being heard, be recovered in the same manner as an arrear of land revenue. **59. Creation of reserve fund.—For the purpose of making provisions for the payment of rent and of** revenue, cess, rates and taxes due to the Government or any local authority, for the discharge of the expenses of the repair of the [1][waqf] property and for the preservation of the [1][waqf] property, the Board may direct the creation and maintenance, in such manner as it may think fit, of a reserve fund from the income of a [1][waqf]. **60. Extension of time.—The Board may, if its is satisfied that it is necessary so to do, extend the** time within which any act is required to be done by the mutawalli under this Act. **61. Penalties.—(1) If a mutawalli fails to—** (a) apply for the registration of a [2][auqaf]; (b) furnish statements of particulars or accounts or returns as required under this Act; (c) supply information or particulars as required by the Board; (d) allow inspection of [1][waqf] properties, accounts, records or deeds and documents relating thereto; (e) deliver possession of any [1][waqf] property, if ordered by the Board or Tribunal; (f) carry out the directions of the Board; (g) discharge any public dues; or (h) do any other act which he is lawfully required to do by or under this Act; he shall, unless he satisfies the court or the Tribunal that there was reasonable cause for his failure, be punishable with fine which may extend to [3][ten thousand rupees for non-compliance of clauses (a) to (d) and in case of non-compliance of clauses (e) to (h), he shall be punishable with imprisonment for a term which may extend to six months and also with fine which may extend to ten thousand rupees]. (2) Notwithstanding anything contained in sub-section (1), if— (a) a mutawalli omits or fails, with a view to concealing the existing of a [1][waqf], to apply for its registration under this Act,— (i) in the case of a [1][waqf] created before the commencement of this Act, within the period [specified therefor in sub-section (8) of section 36;](http://www.tnwakfboard.org/1995.43.htm#s36_8) (ii) in the case of any [1][waqf] created after such commencement, within three months from the date of the creation of the [1][waqf]; or (b) a mutawalli furnishes any statement, return, or information to the Board, which he knows or has reason to believe to be false, misleading, untrue or incorrect in any material particular, he shall be punishable with imprisonment for a term which may extend to six months and also with fine which may extend to fifteen thousand rupees. (3) No court, shall take cognizance of an offence punishable under this Act save upon complaint made by the Board or an officer duly authorised by the board in this behalf. (4) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. (5) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the fine imposed under sub-section (1), when realised, shall be credited to the [1][Waqf] Fund. (6) In every case where offender is convicted after the commencement of this Act, of an offence punishable under sub-section (1) and sentenced to a fine, the court shall also impose such term of imprisonment in default of payment of fine as is authorised by law for such default. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 3. Subs. by s. 36, ibid., for “eight thousand rupees” (w.e.f. 1-11-2013). ----- **62. Mutawalli not to spend any money belonging to [1][waqf] for self defence.—No mutawalli shall** spend any money out of the funds of the [1][waqf], of which he is the mutawalli, for meeting any costs, charges, or expenses which are or may be, incurred by him, in relation to any suit, appeal or any other proceeding for, or incidental to, his removal from office or for taking any disciplinary action against himself. **63. Power to appoint mutawallis in certain cases.—When there is a vacancy in the office of the** mutawalli of a [1][waqf] and there is no one to be appointed under the terms of the deed of the [1][waqf], or where the right of any person to act as mutawalli is disputed, the board may appoint any person to act as mutawalli for such period and on such conditions as it may think fit. **64. Removal of mutawalli.—(1) Notwithstanding anything contained in any other law or the deed of** 1[waqf], the Board may remove a mutawalli from his office if such mutawalli— [(a) has been convicted more than once of an offence punishable under section 61; or](http://www.tnwakfboard.org/1995.43.htm#s61) (b) has been convicted of any offence of criminal breach of trust or any other offence involving moral turpitude, and such conviction has not been reversed and he has not been granted full pardon with respect to such offence; or (c) is of unsound mind or is suffering from other mental or physical defect or infirmity which would render him unfit to perform the functions and discharge the duties of a mutawalli; or (d) is an undischarged insolvent; or (e) is proved to be addicted to drinking liquor or other spirituous preparations, or is addicted to the taking of any narcotic drugs; or (f) is employed as paid legal practitioner on behalf of, or against, the [1][waqf]; or (g) has failed, without reasonable excuse, to maintain regular accounts for two consecutive years or has failed to submit, in two consecutive years, the yearly statement of accounts, as required by [sub-section (2) of section 46; or](http://www.tnwakfboard.org/1995.43.htm#s46_2) (h) is interested, directly or indirectly, in a subsisting lease in respect of any [1][waqf] property, or in any contract made with, or any work being done for, the [1][waqf] or is in arrears in respect of any sum due by him to such [1][waqf]; or (i) continuously neglects his duties or commits any misfeasance, malfeasance, misapplication of funds or breach of trust in relation to the [1][waqf] or in respect of any money or other [1][waqf] property; or (j) wilfully and persistently disobeys the lawful orders made by the Central Government, State Government, Board under any provision of this Act or rule or order made thereunder; (k) misappropriates or fraudulently deals with the property of the [1][waqf]. (2) The removal of a person from the office of the mutawalli shall not affect his personal rights, if any, in respect of the [1][waqf] property either as a beneficiary or in any other capacity or his right, if any, as a sajjadanashin. (3) No action shall be taken by the Board under sub-section (1), unless it has held an inquiry into the matter in a prescribed manner and the decision has been taken by a majority of not less than two-thirds of the members of the Board. (4) A mutawalli who is aggrieved by an order passed under any of the clauses (c) to (i) of sub-section (1), may, within one month from the date of the receipt by him of the order, appeal against the order to the Tribunal and the decision of the Tribunal on such appeal shall be final. (5) Where any inquiry under sub-section (3) is proposed, or commenced, against any mutawalli, the Board may, if it is of opinion that it is necessary so to do in the interest of the [1][waqf], by an order suspend such mutawalli until the conclusion of the inquiry: Provided that no suspension for a period exceeding ten days shall be made except after giving the mutawalli a reasonable opportunity of being heard against the proposed action. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). ----- (6) Where any appeal is filed by the mutawalli to the Tribunal under sub-section (4), the Board may make an application to the Tribunal for the appointment of a receiver to manage the [1][waqf] pending the decision of the appeal, and where such an application is made, the Tribunal shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), appoint a suitable person as receiver to manage the [1][waqf] and direct the receiver so appointed to ensure that the customary or religious rights of the mutawalli and of the [1][waqf] are safeguarded. (7) Where a mutawalli has been removed from his office under sub-section (1), the Board may, by order, direct the mutawalli to deliver possession of the [1][waqf] property to the Board or any officer duly authorised in this behalf or to any person or committee appointed to act as the mutawalli of the [1][waqf] property. (8) A mutawalli of a [1][waqf] removed from his office under this section shall not be eligible for re-appointment as a mutawalli of that [1][waqf] for a period of five years from the date of such removal. **65. Assumption of direct management of certain** **[2][auqaf] by the Board.—(1) Where no suitable** person is available for appointment as a mutawalli of a [1][waqf], or where the Board is satisfied, for reasons to be recorded by it in writing, that the filling up of the vacancy in the office of a mutawalli is prejudicial to the interests of the [1][waqf], the Board may, by notification in the Official Gazette, assume direct management of the [1][waqf] for such period or periods, not exceeding five years in the aggregate, as may be specified in the notification. (2) The State Government may, on its own motion or on the application of any person interested in the [1][waqf], call for the records of any case for the purpose of satisfying itself as to the correctness, legality or propriety of the notification issued by the Board under sub-section (1) and pass such orders as it may think fit and the orders so made by the State Government shall be final and shall be published in the manner specified in sub-section (1). (3) As soon as possible after the close of every financial year, the Board shall send to the State Government a detailed report in regard to every [1][waqf] under its direct management, giving therein— (a) the details of the income of the [1][waqf] for the year immediately preceding the year under report; (b) the steps taken to improve the management and income of the [1][waqf]; (c) the period during which the [1][waqf] has been under the direct management of the Board and explaining the reasons as to why it has not been possible to entrust the management of the [1][waqf] to the mutawalli or any committee of management during the year; and (d) such other matters as may be prescribed. (4) The State Government shall examine the report submitted to it under sub-section (3), and after such examination, issue such directions or instructions to the Board as it may think fit and the Board shall comply with such directions or instructions on receipt thereof. 3[(5) Notwithstanding anything contained in sub-section (1), the Board shall take over the administration of a waqf, if the waqf Board has evidence before it to prove that management of the waqf has contravened the provisions of this Act.] **66. Powers of appointment and removal of mutawalli when to be exercised by the State** **Government.—Whenever a deed of** [1][waqf] or any decree or order of a court of any scheme of management of any [1][waqf] provides that a court or any authority other than a Board may appoint or remove a mutawalli or settle or modify such scheme of management or otherwise exercise superintendence over the [1][waqf], then, notwithstanding anything contained in such deed of [1][waqf], decree, order or scheme, such powers aforesaid shall be exercisable by the State Government: Provided that where a Board has been established, the State Government shall consult the Board before exercising such powers. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 3. Ins. by s. 37, ibid. (w.e.f. 1-11-2013). ----- **67. Supervision and supersession of committee of Management.—(1) Whenever the supervision** or management of a [1][waqf] is vested in any committee appointed by the [1][waqf], then, notwithstanding anything contained in this Act, such committee shall continue to function until it is superseded by the Board or until the expiry of its term as may be specified by the [1][waqf], whichever is earlier: Provided that such committee shall function under the direction, control and supervision of the Board and abide by such directions as the Board may issue from time to time: Provided further that if the Board is satisfied that any scheme for the management of a [1][waqf] by a committee is inconsistent with any provision of this Act or of any rule made thereunder or with the directions of the [1][waqf], it may, at any time, modify the scheme in such manner as may be necessary to bring it in conformity with the directions of the [1][waqf] or of the provisions of this Act and the rules made thereunder. (2) Notwithstanding anything contained in this Act, and in the deed of the [1][waqf], the Board may, if it is satisfied, for reasons to be recorded in writing, that a committee, referred to in sub-section (1) is not functioning properly and satisfactorily, or that the [1][waqf] is being mismanaged and that in the interest of its proper management, it is necessary so to do, by an order, supersede such committee, and, on such supersession, any direction of the [1][waqf], in so far as it relates to the constitution of the committee, shall cease to have any force: Provided that the Board shall, before making any order superseding any committee, issue a notice setting forth therein the reasons for the proposed action and calling upon the Committee to show cause within such time, not being less than one month, as may be specified in the notice, as to why such action shall not be taken. (3) Every order made by the Board under sub-section (2) shall be published in the prescribed manner and on such publication shall be binding on the mutawalli and all persons having any interest in the 1[waqf]. (4) Any order made by the Board under sub-section (2) shall be final: Provided that any person aggrieved by the order made under sub-section (2) may, within sixty days from the date of the order, appeal to the Tribunal: Provided further that the Tribunal shall have no power to suspend the operation of the order made by the Board pending such appeal. (5) The Board shall, whenever it supersedes any committee under sub-section (2), constitute a new committee of management simultaneously with the order made by it under sub-section (2). (6) Notwithstanding anything contained in the foregoing sub-sections, the Board may, instead of superseding any committee under sub-section (2), remove any member thereof if it is satisfied that such member has abused his position as such member or had knowingly acted in a manner prejudicial to the interests of the [1][waqf], and every such order for the removal of any member shall be served upon him by registered post: Provided that no order for the removal of the member shall be made unless he has been given a reasonable opportunity of showing cause against the proposed action: Provided further that any member aggrieved by any order for his removal from the membership of the committee may, within a period of thirty days from the date of service of the order on him, prefer an appeal against such order to the Tribunal and Tribunal may, after giving a reasonable opportunity to the appellant and the Board of being heard, confirm, modify or reverse the order made by the Board and the order made by the Tribunal in such appeal shall be final. **68. Duty of mutawalli or committee to deliver possession of records, etc.—(1) Where any** mutawalli or committee of management has been removed by the Board in accordance with provisions of this Act, or of any scheme made by the Board, the mutawalli or the committee so removed from the office (hereinafter in this section referred to as the removed mutawalli or committee) shall hand over charge and deliver possession of the records, accounts and all properties of the [1][waqf] (including cash) to the successor mutawalli or the successor committee, within one month from the date specified in the order. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). ----- (2) Where any removed mutawalli or committee fails to deliver charge or deliver possession of the records, accounts and properties (including cash) to the successor mutawalli or committee within the time specified in sub-section (1), or prevents or obstructs such mutawalli or committee, from obtaining possession thereof after expiry of the period aforesaid, the successor mutawalli or any member of the successor committee may make an application, accompanied by a certified copy of the order appointing such successor mutawalli or committee, to any [1][District Magistrate, Additional District Magistrate, Sub-Divisional Magistrate or their equivalent] within the local limits of whose jurisdiction any part of the 2[waqf] property is situated and, thereupon such 1[District Magistrate, Additional District Magistrate, Sub-Divisional Magistrate or their equivalent] may, after giving notice to the removed mutawalli or members of the removed committee, make an order directing the delivery of charge and possession of such records, accounts and properties (including cash ) of the [2][waqf] to the successor mutawalli or the committee, as the case may be, within such time as may be specified in the order. (3) Where the removed mutawalli or any member of the removed committee, omits or fails to deliver charge and possession of the records, accounts and properties (including cash) within the time specified by [3][any Magistrate] under sub-section (2) the removed mutawalli or every member of the removed committee, as the case may be, shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to eight thousand rupees, or with both. (4) Whenever any removed mutawalli or any member of the removed committee omits or fails to comply with the orders made by [3][any Magistrate] under sub-section (2), [3][any Magistrate] may authorise the successor mutawalli or committee to take charge and possession of such records, accounts, properties (including cash) and may authorise such person to take such police assistance as may be necessary for the purpose. (5) No order of the appointment of the successor mutawalli or committee, shall be called in question in the proceedings before [3][any Magistrate] under this section. (6) Nothing contained in this section shall bar the institution of any suit in a competent civil court by any person aggrieved by any order made under this section, to establish that he has right, title and interest in the properties specified in the order made by [3][any Magistrate] under sub-section (2). **69. Power of Board to frame scheme for administration of** **[2][waqf].—[4][(1) Where the Board is** satisfied after an enquiry, whether on its own motion or on the application of not less than five persons interested in any waqf, to frame a scheme for the proper administration of the waqf, it may, by an order, frame such scheme for the administration of the waqf, after giving reasonable opportunity and after consultation with the mutawalli or others in the prescribed manner.] (2) A scheme framed under sub-section (1) may provide for the removal of the mutawalli of the 2[waqf] holding office as such immediately before the date on which the scheme comes into force: Provided that where any such scheme provides for the removal of any hereditary mutawalli, the scheme shall also provide for the appointment of the person next in hereditary succession to the mutawalli so removed, as one of the members of the committee appointed for the proper administration of the 2[waqf]. (3) Every order made under sub-section (2) shall be published in the prescribed manner, and, on such publication shall be final and binding on the mutawalli, and all persons interested in the [2][waqf]: Provided that any person aggrieved by an order made under this section may, within sixty days from the date of the order, prefer an appeal to the Tribunal and after hearing such appeal, the Tribunal may confirm, reverse or modify the order: Provided further that the Tribunal shall have no power to stay the operation of the order made under this section. 1. Subs. by Act 27 of 2013, s. 38, for “Magistrate of the first class” and “Magistrate” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 3. Subs. by s. 38, ibid., for “the Magistrate” (w.e.f. 1-11-2013). 4. Subs. by s. 39, ibid., for sub-section (1) (w.e.f. 1-11-2013). ----- (4) The Board may, at any time by an order, whether made before or after the scheme has come into force, cancel or modify the scheme. (5) Pending the framing of the scheme for the proper administration of the [1][waqf], the Board may appoint a suitable person to perform all or any of the functions of the mutawalli thereof and to exercise the powers, and perform the duties, of such mutawalli. **70. Inquiry relating to administration of** **[1][waqf].—Any person interested in a** [1][waqf] may make an application to the Board supported by an affidavit to institute an inquiry relating to the administration of the [1][waqf] and if the Board is satisfied that there are reasonable grounds for believing that the affairs of the [1][waqf] are being mismanaged, it shall take such action thereon as it thinks fit. **71. Manner of holding inquiry.—(1) The Board may, either on an application received** [under section [2][70] or on its own motion,—](http://www.tnwakfboard.org/1995.43.htm#s73) (a) hold an inquiry in such manner as may be prescribed; or (b) authorise any person in this behalf to hold an inquiry into any matter relating to a [1][waqf] and take such action as it thinks fit. (2) For the purposes of an inquiry under this section, the Board or any person authorised by it in this behalf, shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) for enforcing the attendance of witnesses and production of documents. CHAPTER VII FINANCE OF THE BOARD **72. Annual contribution payable to Board.—(1) The mutawalli of every** [1][waqf], the net annual income of which is not less than five thousand rupees, shall pay annually, out of the net annual income derived by the [1][waqf], such contributions, not exceeding seven per cent. of such annual income, as may be prescribed, to the Board for the services rendered by such Board to the [1][waqf]. _Explanation I_ **.—For the purposes of this Act, “net annual income” shall mean the gross income of** the [1][waqf] from all sources, including nazars and offerings which do not amount to contributions to the corpus of the [3][auqaf], in a year after deducting therefrom the following, namely:— (i) the land revenue paid by it to the Government; (ii) the rates, cesses, taxes and licence fees, paid by it to the Government or any local authority; (iii) expenditure incurred for all or any of the following purposes, [4][in respect of lands directly under cultivation by the mutawalli for the benefit of the waqf], namely:— (a) maintenance of, or repairs to, irrigation works, which shall not include the capital cost of irrigation; (b) seeds or seedlings; (c) manure; (d) purchase and maintenance of agricultural implements; (e) purchase and maintenance of cattle for cultivation; (f) wages for ploughing, watering, sowing, transplanting, harvesting, threshing and other agricultural operations: Provided that the total deduction in respect of an expenditure incurred under this clause shall not exceed [5][twenty per cent.] of the income derived from lands belonging to the [1][waqf]: 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 40, ibid., for “73” (w.e.f. 1-11-2013). 3. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 4. Ins. by s. 41, ibid. (w.e.f. 1-11-2013). 5. Subs. by s. 41, ibid., for “ten per cent.” (w.e.f. 1-11-2013). ----- 1[Provided further that no such deduction shall be permitted in respect of waqf land given on lease, by whatever name called, whether batai or share cropping or any other name.] (iv) expenditure on sundry repairs to rented buildings, not exceeding five per cent. of the annual rent derived therefrom, or the actual expenditure, whichever is less; (v) sale proceeds of immovable properties or rights relating to, or arising out of immovable properties, if such proceeds are reinvested to earn income for the [2][waqf]: Provided that the following items of receipts shall not be deemed to be income for the purposes of this section, namely:— (a) advances and deposits recovered and loans taken or recovered; (b) deposits made as security by employees, lessees or contractors and other deposits, if any; (c) withdrawals from banks or of investments; (d) amounts recovered towards costs awarded by courts; (e) sale proceeds of religious books and publications where such sales are undertaken as an un-remunerative enterprise with a view to propagating religion; (f) donations in cash or kind or offerings made by the donors as contribution to the corpus of the [2][waqf]: Provided that interest on income, if any, accruing from such donations or offerings shall be taken into account in calculating the gross annual income; (g) voluntary contributions received in cash or kind for a specific service to be performed by the [2][waqf] and expended on such service; (h) audit recoveries; _Explanation II.—In determining the net annual income for the purposes of this section, only the net_ profit derived by any [2][waqf] from its remunerative undertakings, if any, shall be taken as income, and in respect of its non-remunerative undertakings, such as, schools, colleges, hospitals, poor homes, orphanages or any other similar institutions, the grants given by the Government or any local authority or donations received from the public or fees collected from the pupils of educational institutions shall not be taken as income. (2) The Board may in the case of any mosque or orphanage or any particular [2][waqf] reduce or remit such contribution for such time as it thinks fit. (3) The mutawalli of a [2][waqf] may realise the contributions payable by him under sub-section (1) from the various persons entitled to received any pecuniary or other material benefit from the [2][waqf], but the sum realisable from any one of such persons shall not exceed such amount as shall bear to the total contribution payable, the same proportion, as the value of the benefits receivable by such person bears to the entire net annual income of the [2][waqf]: Provided that if there is any income of the [2][waqf] available in excess of the amount payable as dues under this Act, other than as the contribution under sub-section (1), and in excess of the amount payable under the [2][waqf] deed, the contribution shall be paid out of such income. (4) The contribution payable under sub-section (1) in respect of a [2][waqf] shall, subject to the prior payment of any dues to the Government or any local authority or of any other statutory first charge on the 2[waqf] property or the income thereof, be a first charge on the income of the 2[waqf] and shall be recoverable, on a certificate issued by the Board after giving the mutawalli concerned an opportunity of being heard, as an arrear of land revenue. 1. Ins. by Act 27 of 2013, s. 41 (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). ----- (5) If a mutawalli realises the income of the [1][waqf] and refuses to pay or does not pay such contribution, he shall also be personally liable for such contribution which may be realised from his person or property in the manner aforesaid. (6) Where, after the commencement of this Act, the mutawalli of a [1][waqf] fails to submit a return of the net annual income of the [1][waqf] within the time specified therefor or submits a return which, in the opinion of the Chief Executive Officer is incorrect or false in any material particular, or which does not comply with the provisions of this Act or any rule or order made thereunder, the Chief Executive Officer may assess the net annual income of the [1][waqf] to the best of his judgment or revise the net annual income as shown in the return submitted by the mutawalli and the net annual income as so assessed or revised shall be deemed to be the net annual income of the [1][waqf] for the purposes of this section: Provided that no assessment of net annual income or revision of return submitted by mutawalli shall be made except after giving a notice to the mutawalli calling upon him to show cause, within the time specified in the notice, as to why such assessment or revision of the return shall not be made and every such assessment or revision shall be made after considering the reply if any, given by the mutawalli. (7) Any mutawalli who is aggrieved by the assessment or revision made by the Chief Executive Officer, under sub-section (6), may prefer an appeal to the Board within thirty days from the date of the receipt of the assessment or revision of return and the Board may, after giving the appellant a reasonable opportunity of being heard, confirm, reverse or modify the assessment or revision or the return and the decision of the Board thereon shall be final. (8) If, for any reason, the contribution or any portion thereof leviable under this section has escaped assessment in any year, whether before or after the commencement of this Act, the Chief Executive Officer may, within five years from the last date of the year to which such escaped assessment relates serve upon the mutawalli a notice assessing him with the contribution or portion thereof which had escaped assessment, and demanding payment thereof within thirty days from the date of service of such notice, and the provisions of this Act and the rules made thereunder, shall, as far as may be, apply as if the assessments were made under this Act, in the first instance. **73. Power of Chief Executive Officer to direct banks or other person to make** **payments.—(1) Notwithstanding anything contained in any other law for the time being in force, the** Chief Executive Officer, if he is satisfied that it is necessary and expedient so to do, make an order directing any bank in which, or any person with whom any money belonging to a [1][waqf] is deposited, to [pay the contribution, leviable under section 72, out of such money, as may be standing to the credit of the](http://www.tnwakfboard.org/1995.43.htm#s72) 1[waqf] in such bank or may be deposited with such person, or out of the moneys which may, from time to time, be received by bank or other person for or on behalf of the [1][waqf] by way of deposit, and on receipt of such orders, the bank or the other person, as the case may be, shall, when no appeal has been preferred under sub-section (3), comply with such orders, or where an appeal has been preferred under sub-section (3), shall comply, with the orders made by the Tribunal on such appeal. (2) Every payment made by a bank or other person in pursuance of any order made under sub-section (1), shall operate as a full discharge of the liability of such bank or other person in relation to the sum so paid. (3) Any bank or other person who is ordered under sub-section (1) to make any payment may, within thirty days from the date of the order, prefer an appeal against such order to the Tribunal and the decision of the Tribunal on such appeal shall be final. (4) Every officer of the bank or other person who fails, without any reasonable excuse, to comply with the order made under sub-section (1) or, as the case may be, under sub-section (3), shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to eight thousand rupees, or with both. **74. Deduction of contribution from perpetual annuity payable to the** **[1][waqf].—(1) Every** authority empowered to disburse any perpetual annuity payable to a [1][waqf] under any law relating to the abolition of zamindars or jagirs, or laying down land ceilings, shall, on receipt of a certificate from the Chief Executive Officer, specifying the amount of contribution payable by the 1[waqf] 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). ----- [under section 72 which remains unpaid, deduct before making payment of the perpetual annuity to the](http://www.tnwakfboard.org/1995.43.htm#s72) 1[waqf], the amount specified in such certificate and remit the amount so deducted to the Chief Executive Officer. (2) Every amount remitted under sub-section (1) to the Chief Executive Officer shall be deemed to be a payment made by the [1][waqf] and shall, to the extent of the amount so remitted, operate as a full discharge of the liability of such authority with regard to the payment of the perpetual annuity. **75. Power of board to borrow.—(1) For the purpose of giving effect to the provisions of this Act,** the Board may, with the previous sanction of the State Government, borrow such sum of money and on such terms and conditions as the State Government may determine. (2) The Board shall repay the money borrowed, together with any interest or costs due in respect thereof, according to the terms and conditions of the loan. **76. Mutawalli not to lend or borrow moneys without sanction.—(1) No mutawalli, Executive** Officer or other person in charge of the administration of a [1][waqf] shall lend any money belonging to the 1[waqf] or any 1[waqf] property or borrow any money for the purposes of the 1[waqf] except with the previous sanction of the Board: Provided that no such sanction is necessary if there is an express provision in the deed of [1][waqf] for such borrowing or lending, as the case may be. (2) The Board may, while according sanction, specify any terms and conditions subject to which the person referred to in sub-section (1) is authorised by him to lend or borrow any money or lend any other 1[waqf] property. (3) Where any money is lent or borrowed, or other [1][waqf] property is lent in contravention of the provisions of this section, it shall be lawful for the Chief Executive Officer,— (a) to recover an amount equal to the amount which has been so lent or borrowed, together with interest due thereon, from the personal funds of the person by whom such amount was lent or borrowed; (b) to recover the possession of the [1][waqf] property lent in contravention of the provisions of this Act, from the person to whom it was lent, or from persons who claim title to such property through the person to whom such property was lent. **77.** **[1][Waqf] Fund.—(1) All moneys received or realised by the Board under this Act and all other** moneys received as donations, benefactions or grants by the Board shall form a fund to be called the 1[Waqf] Fund. (2) All moneys received by the Board, as donations, benefactions and grants shall be deposited and accounted for under a separate sub-head. (3) Subject to any rules that may be made by the State Government in this behalf, the [1][Waqf] Fund shall be under the control of the Board, so, however, that the [1][Waqf] Fund under the control of common 1[Waqf] Board shall be subject to rules, if any, made in this behalf by the Central Government. (4) The [1][Waqf] Fund shall be applied to— [(a) repayment of any loan incurred under section 75 and payment of interest thereon;](http://www.tnwakfboard.org/1995.43.htm#s75) (b) payment of the cost of audit of the [1][Waqf] Fund and the accounts of [2][auqaf]; (c) payment of the salary and allowances to the officers and staff of the Board; (d) payment of traveling allowances to the Chairperson, members, of the Board; (e) payment of all expenses incurred by the Board in the performance of the duties imposed, and the exercise of the powers conferred, by or under this Act; (f) payment of all expenses incurred by the Board for the discharge of any obligation imposed on it by or under any law for the time being in force. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). ----- 1[(g) payment of maintenance to Muslim women as ordered by a court of competent jurisdiction under the provisions of the Muslim Women (Protection of Rights on Divorce) Act, 1986 (25 of 1986).] (5) If any balance remains after meeting the expenditure referred to in sub-section (4), the Board may use any portion of such balance for the preservation and protection of [2][waqf] properties or for such other purposes as it may deem fit. **78. Budget of Board.—(1) The Board shall in every year prepare, in such form and at such time as** may be prescribed, a budget for the next financial year showing the estimated receipts and expenditure during that financial year and forward a copy of the same to the State Government. (2) On receipt of the budget forwarded to it under sub-section (1), the State Government shall examine the same and suggest such alterations, corrections or modifications to be made therein as it may think fit and forward such suggestions to the Board for its consideration. (3) On receipt of the suggestions from the State Government the Board may make written representations to that Government with regard to the alterations, corrections or modifications suggested by that Government and the State Government shall, after considering such representations, communicate, within a period of three weeks from the date of receipt thereof, to the Board its final decision in relation to the matter and the decision of the State Government shall be final. (4) On receipt of the decision of the State Government under sub-section (3), the Board shall incorporate in its budget all the alterations, corrections, modifications finally suggested by the State Government and the budget as so altered, corrected or modified, shall be the budget which shall be passed by the Board. **79. Accounts of Board.—The Board shall cause to be maintained such books of account and other** books in relation to its accounts in such form and in such manner as may be provided by regulations. **80. Audit of accounts of Board.—(1) The accounts of the Board shall be audited and examined** annually by such auditor as may be appointed by the State Government. (2) The auditor shall submit his report to the State Government and the report of the auditor shall, among other things, specify whether the accounts of every [2][waqf] under the direct management of the Board have been kept separately and whether such accounts have been audited annually by the State Examiner of Local Funds and shall also specify all cases of irregular, illegal or improper expenditure or of failure to recover money or other property caused by neglect or misconduct and any other matter which the auditor considers it necessary to report; and the report shall also contain the name of any person who, in the opinion of the auditor is responsible for such expenditure or failure and the auditor shall in every such case certify the amount of such expenditure or loss as due from such person. (3) The cost of the audit shall be paid from the [2][Waqf] Fund. **81. State Government to pass orders on auditor’s report.—The State Government shall examine** the auditor’s report and may call for the explanation of any person in regard to any matter mentioned therein, and shall pass such orders on the report as it thinks fit [3][and a copy of the said auditor’s report, along with orders shall be forwarded by the State Government to the Council within a period of thirty days of laying of such report before each House of the State Legislature where it consists of two Houses or where such Legislatures consist of one House, before that House]. **82. Dues of Board to be recovered as arrears of land revenue.—(1) Every sum certified to be due** [from any person by an auditor in his report under section 80, be paid by such person within sixty days](http://www.tnwakfboard.org/1995.43.htm#s80) after service of a demand notice by the Board. (2) If such payment is not made in accordance with the provisions of sub-section (1), the sum payable may, on a certificate issued by the Board, after giving the person concerned an opportunity of being heard, be recovered as an arrear of land revenue. 1. Ins. by Act 27 of 2013, s. 42 (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 3. Subs. by s. 43, ibid., for “as it thinks fit” (w.e.f. 1-11-2013). ----- CHAPTER VIII JUDICIAL PROCEEDINGS **83. Constitution of Tribunals, etc.—[1][(1) The State Government shall, by notification in the Official** Gazette, constitute as many Tribunals as it may think fit, for the determination of any dispute, question or other matter relating to a waqf or waqf property, eviction of a tenant or determination of rights and obligations of the lessor and the lessee of such property, under this Act and define the local limits and jurisdiction of such Tribunals.] (2) Any mutawalli person interested in a [2][waqf] or any other person aggrieved by an order made under this Act, or rules made thereunder, may make an application within the time specified in this Act or where no such time has been specified, within such time as may be prescribed, to the Tribunal for the determination of any dispute, question or other matter relating to the [2][waqf]. (3) Where any application made under sub-section (1) relates to any [2][waqf] property which falls within the territorial limits of the jurisdiction of two or more Tribunals, such application may be made to the Tribunal within the local limits of whose jurisdiction the mutawalli or any one of the mutawallis of the [2][waqf] actually and voluntarily resides, carries on business or personally works for gain, and, where any such application is made to the Tribunal aforesaid, the other Tribunal or Tribunals having jurisdiction shall not entertain any application for the determination of such dispute, question or other matter: Provided that the State Government may, if it is of opinion that it is expedient in the interest of the 2[waqf] or any other person interested in the 2[waqf] or the 2[waqf] property to transfer such application to any other Tribunal having jurisdiction for the determination of the dispute, question or other matter relating to such [2][waqf] or [2][waqf] property, transfer such application to any other Tribunal having jurisdiction, and, on such transfer, the Tribunal to which the application is so transferred shall deal with the application from the stage which was reached before the Tribunal from which the application has been so transferred, except where the Tribunal is of opinion that it is necessary in the interest of justice to deal with the application afresh. 3[(4) Every Tribunal shall consist of— (a) one person, who shall be a member of the State Judicial Service holding a rank, not below that of a District, Sessions or Civil Judge, Class I, who shall be the Chairman; (b) one person, who shall be an officer from the State Civil Services equivalent in rank to that of the Additional District Magistrate, Member; (c) one person having knowledge of Muslim law and jurisprudence, Member; and the appointment of every such person shall be made either by name or by designation. (4A) The terms and conditions of appointment including the salaries and allowances payable to the Chairman and other members other than persons appointed as ex officio members shall be such as may be prescribed.] (5) The Tribunal shall be deemed to be a civil court and shall have the same powers as may be exercised by a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, or executing a decree or order. (6) Notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), the Tribunal shall follow such procedure as may be prescribed. (7) The decision of the Tribunal shall be final and binding upon the parties to the application and it shall have the force of a decree made by a civil court. (8) The execution of any decision of the Tribunal shall be made by the civil court to which such decision is sent for execution in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908). 1. Subs. by Act 27 of 2013, s. 44, for sub-section (1) (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 3. Subs. by s. 44, ibid., for sub-section (4) (w.e.f. 1-11-2013). ----- (9) No appeal shall lie against any decision or order whether interim or otherwise, given or made by the Tribunal: Provided that a High Court may, on its own motion or on the application of the Board or any person aggrieved, call for and examine the records relating to any dispute, question or other matter which has been determined by the Tribunal for the purpose of satisfying itself as to the correctness, legality or propriety of such determination and may confirm, reverse or modify such determination or pass such other order as it may think fit. **84. Tribunal to hold proceedings expeditiously and to furnish to the parties copies of its** **decision.—Whenever an application is made to a Tribunal for the determination of any dispute, question** or other matter relating to a [1][waqf] or [1][waqf] property it shall hold its proceedings as expeditiously as possible and shall as soon as practicable, on the conclusion of the hearing of such matter give its decision in writing and furnish a copy of such decision to each of the parties to the dispute. **85. Bar of jurisdiction of civil courts.—No suit or other legal proceeding shall lie in any** 2[civil court, revenue court and any other authority] in respect of any dispute, question or other matter relating to any [1][waqf], [1][waqf] property or other matter which is required by or under this Act to be determined by a Tribunal. **86. Appointment of a receiver in certain cases.—Notwithstanding anything contained in the Code** of Civil Procedure, 1908 (5 of 1908), or in any other law for the time being in force, where any suit or other legal proceeding is instituted or commenced— (a) by or on behalf of a Board— (i) to set aside the sale of any immovable property, which is [1][waqf] property, in execution of a decree or order of a civil court; (ii) to set aside the transfer of any immovable property, which is [1][waqf] property, made by the mutawalli thereof, whether for valuable consideration or not, without or otherwise than in accordance with, the sanction of the Board; (iii) to recover possession of the property referred to in clause (a) or clause (b) or to restore possession of such property to the mutawalli of the concerned [1][waqf]; or (b) by a mutawalli to recover possession of immovable property, which is [1][waqf] property, which has been transferred by a previous mutawalli [3][or by any other person], whether for valuable consideration or not, without otherwise than in accordance with the sanction of the Board, and which is in the possession of the defendant, the court may, on the application of the plaintiff, appoint a receiver of such property and direct such receiver to pay from time to time to the plaintiff, out of the income of the property, such amount as the court may consider to be necessary for further prosecution of the suit. **87. [Bar to the enforcement of right on behalf of unregistered wakfs.]** _Omitted by the Wakf_ _(Amendment) Act, 2013 (27 of 2013), s. 47 (w.e.f. 1-11-2013)._ **88. Bar to challenge the validity of any notification, etc.—Save as otherwise expressly provided in** this Act, no notification or order or decision made, proceeding or action taken, by the Central Government or the State Government under this Act or any rule made thereunder shall be questioned in any Civil Court. **89. Notice of suits by parties against Board.—No suit shall be instituted against the Board in** respect of any act purporting to be done by it in pursuance of this Act or of any rules made thereunder, until the expiration of two months next after notice in writing has been delivered to, or left at, the office of the Board, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims; and the plaint shall contain a statement that such notice has been so delivered or left. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 45, ibid., for “civil court” (1) (w.e.f. 1-11-2013). 3. Ins. by s. 46, ibid. (w.e.f. 1-11-2013). ----- **90. Notice of suits, etc., by courts.—(1) In every suit or proceeding relating to a title to or possession** of a [1][waqf] property or the right of a mutawalli or beneficiary, the court or Tribunal shall issue notice to the Board at the cost of the party instituting such suit or proceeding. (2) Whenever any [1][waqf] property is notified for sale in execution of a decree of a civil court or for the recovery of any revenue, cess, rates of taxes due to the Government or any local authority, notice shall be given to the Board by the court, Collector or other person under whose order the sale is notified. (3) In the absence of a notice under sub-section (1), any decree or order passed in the suit or proceeding shall be declared void, if the Board, within [2][six month] of its coming to know of such suit or proceeding, applies to the court in this behalf. (4) In the absence of a notice under sub-section (2), the sale shall be declared void, if the Board, within one month of its coming to know of the sale, applies in this behalf to the court or other authority under whose order the sale was held. **91. Proceedings under Act 1 of 1894.—(1) If, in the course of proceedings under the Land** Acquisition Act, 1894 or under any law for the time being in force relating to the acquisition of land or other property, [3][and before an award is made, in case the property] under acquisition is [1][waqf] property, a notice of such acquisition shall be served by Collector on the Board and further proceedings shall be stayed to enable the Board to appear and plead as a party to the proceeding at any time within three months from the date of the receipt of such notice. _Explanation.—The reference to the Collector in the foregoing provisions of this sub-section shall, in_ relation to any other law referred to therein, be construed, if the Collector is not the competent authority under such other law to make an award of the compensation or other amount payable for acquisition of land or other property thereunder, as a reference to the authority under such other law competent to make such award. (2) Where the Board has reason to believe that any property under acquisition is [1][waqf] property, it may at any time before the award is made appear and plead as a party to the proceeding. (3) When the Board has appeared under the provisions of sub-section (1) or sub-section (2), no order shall be passed under section 31 or section 32 of the Land Acquisition Act, 1894 or under the corresponding provisions of the other law referred to in sub-section (1) without giving an opportunity to the Board to be heard. (4) Any order passed under section 31 or section 32 of the Land Acquisition Act, 1894 or under the corresponding provisions of the other law referred to in sub-section (1) without giving an opportunity to the Board to be heard, shall be declared void if the Board, within one month of its coming to know of the order, applies in this behalf to the authority which made the order. **92. Board to be party to suit or proceeding.—In any suit or proceeding in respect of a** [1][waqf] or any [1][waqf] property the Board may appear and plead as a party to the suit or proceeding. **93. Bar to compromise of suits by or against mutawallis.—No suit or proceeding in any court by** or against the mutawalli of a [1][waqf] relating to title to [1][waqf] property or the rights of the mutawalli shall be compromised without the sanction of the Board. **94. Power to make application to the Tribunal in case of failure of mutawalli to discharge his** **duties.—(1) Where a mutawalli is under an obligation to perform any act which is recognised by Muslim** law as pious, religious or charitable and the mutawalli fails to perform such act, the Board may apply to the Tribunal for an order directing the mutawalli to pay to the Board or to any person authorised by the Board in this behalf the amount necessary for the performance of such act. (2) Where a mutawalli is under an obligation to discharge any other duties imposed on him under the 1[waqf] and the mutawalli wilfully fails to discharge such duties, the Board or any person interested in the 1[waqf] may make an application to the Tribunal and the Tribunal may pass such order thereon as it thinks fit. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 48, ibid., for “one month” (w.e.f. 1-11-2013). 3. Subs. by s. 49, ibid., for “it appears to the Collector before an award is made that any property” (w.e.f. 1-11-2013). ----- **95. Power of appellate authority to entertain appeal after expiry of specified period.—Where,** under this Act any period has been specified for the filing of any appeal, the appellate authority may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the period so specified, entertain the appeal after the expiry of the said period. CHAPTER IX MISCELLANEOUS **96. Power of Central Government to regulate secular activities of** **[1][auqaf].—(1) For the purpose** of regulating the secular activities of [1][auqaf], the Central Government shall have the following powers and functions, namely:— (a) to lay down general principles and policies of [2][waqf] administration in so far as they relate to the secular activities of the [1][auqaf]; (b) to co-ordinate the functions of the Central [2][Waqf] Council and the Board, in so far as they relate to their secular functions; (c) to review administration of the secular activities of [1][auqaf] generally and to suggest improvements, if any. (2) In exercising its powers and functions under sub-section (1), the Central Government may call for any periodic or other reports from any Board and may issue to the Board such directions as it may think fit and the Board shall comply with such directions. _Explanation.—For the purposes of this section “secular activities” shall include social, economic,_ educational and other welfare activities. **97. Directions by State Government.—Subject to any directions issued by the Central Government** under section 96, the State Government may, from time to time, give to the Board such general or special directions as the State Government thinks fit and in the performance of its functions, the Board shall comply with such directions: 3[Provided that the State Government shall not issue any direction being contrary to any waqf deed or any usage; practice or custom of the waqf.] **98. Annual report by State Government.—As soon as may be after the close of a financial year, the** State Government shall cause a general annual report on the working and administration of the State 2[Waqf] Board and the Administration of 1[auqaf] in the State during that year to be prepared and laid before each House of the State Legislature where it consists of two Houses, or where such legislature consists of one House, before that House, and every such report shall be in such form and shall contain such matters as may be provided by regulations. **99. Power to supersede Board.—(1) If the State Government is of opinion that the Board is unable** to perform or has persistently made default in the performance of, the duty imposed on it by or under this Act or has exceeded or abused its powers, or has wilfully and without sufficient cause failed to comply [with any direction issued by the Central Government under section 96 or the State Government](http://www.tnwakfboard.org/1995.43.htm#s96) [under section 97, or if the State Government is satisfied on consideration of any report submitted after](http://www.tnwakfboard.org/1995.43.htm#s97) annual inspection, that the Board’s continuance is likely to be injurious to the interests of the [1][auqaf] in the State, the State Government may, by notification in the Official Gazette, supersede the Board for a period not exceeding six months: Provided that before issuing a notification under this sub-section, the State Government shall give a reasonable time to the Board to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Board: 4[Provided further that the power of the State Government under this section shall not be exercised unless there is a prima facie evidence of financial irregularity, misconduct or violation of the provisions of this Act.] 1. Subs. by Act 27 of 2013, s. 4, for “wakfs” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 3. Ins. by s. 50, ibid. (w.e.f. 1-11-2013). 4. Ins. by s. 51, ibid. (w.e.f. 1-11-2013). ----- (2) Upon the publication of a notification under sub-section (1) superseding the Board,— (a) all the members of the Board shall, as from the date of supersession, vacate their offices as such members; (b) all the powers and duties which may, by or under the provisions of this Act, be exercised or performed by or on behalf of the Board shall, during the period of supersession, be exercised and performed by such person or persons as the State Government may direct; and (c) all properties vested in the Board shall, during the period of supersession vest in the State Government. (3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the State Government may— 1[(a) extend the period of supersession by another six months with reasons to be recorded in writing and, the period of continuous supersession shall not exceed more than a year; or] [(b) reconstitute the Board in the manner provided in section 14.](http://www.tnwakfboard.org/1995.43.htm#s14) **100. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against** the board or Chief Executive Officer or Survey Commissioner or any other person duly appointed under this Act in respect of anything which is in good faith done or intended to be done under this Act. **101. Survey Commissioner, members and officers of the Board, deemed to be public servants.—** (1) The Survey Commissioner, members of the Board, every officer, every auditor of the Board and every other person duly appointed to discharge any duties imposed on him by this Act or any rule or order made thereunder, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). (2) Every mutawalli of a [2][waqf], every member of managing committee, whether constituted by the Board or under any deed of [2][waqf], every Executive Officer and every person holding any office in a 3[waqf] shall also be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **102. Special provision for reorganisation of certain Boards.—(1) Where on account of the** reorganisation of States under any law providing reorganisation of States, the whole or any part of a State in respect of which a Board was, immediately before the day of such reorganisation, functioning has been transferred on that day to another State and by reason of such transfer, it appears to the Government of a State in any part of which the Board is functioning that the Board should be dissolved or that it should be reconstituted as an Intra-State Board for the whole or any part of that State, the State Government may frame a scheme or such dissolution or such reconstitution, including proposals regarding the transfer of the assets, rights and liabilities of the Board to any other Board or State Government and the transfer or re-employment of employees of the Board and forward the scheme to the Central Government. (2) On receipt of a scheme forwarded to it under sub-section (1), the Central Government may, [3][after consulting the Council and the State Governments] concerned, approve the scheme with or without modifications and give effect to the scheme so approved by making such order as it thinks fit. (3) An order under sub-section (2) may provide for all or any of the following matters, namely:— (a) the dissolution of the Board; (b) the reconstitution in any manner whatsoever of the Board including the establishment, where necessary, of a new Board; (c) the area in respect of which the reconstituted Board or new Board shall function and operate; (d) the transfer, in whole or in part, of the assets, rights and liabilities of the Board (including the rights and liabilities under any contract made by it) to any other Board or State Government and the terms and conditions of such transfer; 1. Subs. by Act 27 of 2013, s. 51, for clause (a) (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 3. Subs. by s. 52, ibid., for “after consulting the State Governments” (w.e.f. 1-11-2013). ----- (e) the substitution of any such transferee, for the Board, or the addition of any such transferee, as a party to any legal proceeding to which the Board is a party; and the transfer of any proceeding pending before the Board to any such transferee; (f) the transfer or re-employment of any employee of the Board to or by, any such transferee and subject to the provisions of law providing for the reorganisation of the concerned State, the terms and conditions of service applicable to such employees after such transfer or re-employment; and (g) such incidental, consequential and supplemental matters as may be necessary to give effect to the approved scheme. (4) Where an order is made under this section transferring the assets, rights and liabilities of the Board, then, by virtue of that order, such assets, rights and liabilities of the Board shall vest in, and be the assets, rights and liabilities of, the transferee. (5) Every order made under this section shall be published in the Official Gazette. (6) Every order made under this section shall be laid before each House of Parliament, as soon as may be, after it is made. **103. Special provision for establishment of Board for part of a State.—(1) Where on account of** the territorial changes brought about by any law providing for the reorganisation of any State, this Act is as from the date on which that law comes into force applicable only to any part or parts of a State but has not been brought into force in the remaining part thereof, then notwithstanding anything contained in this Act, it shall be lawful for the Government of the State to establish one or more Boards for such part or parts in which this Act is in force and in such a case any reference in this Act to the word “State” in relation of a Board shall be construed as a reference to that part of the State for which the Board is established. (2) Where any such Board has been established and it appears to the Government of the State, that a Board should be established for the whole of the State, the State Government may, by order notified in the Official Gazette dissolve the Board established for the part of the State or reconstitute and reorganise, such Board or establish a new Board for the whole of the State and thereupon, the assets, rights and liabilities of the Board for the part of the State shall vest in and be the assets, rights and liabilities of the reconstituted Board or the new Board, as the case may be. **104. Application of Act to properties given or donated by persons not professing Islam for** **support of certain** **[1][waqf].—Notwithstanding anything contained in this Act where any movable or** immovable property has been given or donated by any person not professing Islam for the support of a 1[waqf] being— (a) a mosque, idgah, imambara, dargah, khangah or a maqbara; (b) a Muslim graveyard; (c) a choultry or a musafirkhana, then such property shall be deemed to be comprised in that [1][waqf] and be dealt in the same manner as the 1[waqf] in which it is so comprised. **2[104A.** **Prohibition** **of** **sale,** **gift,** **exchange,** **mortgage** **or** **transfer** **of** **waqf** **property.—(1) Notwithstanding anything contained in this Act or any other law for the time being in** force or any waqf deed, no person shall sell, gift, exchange, mortgage or transfer any movable or immovable property which is a waqf property to any other person. (2) Any sale, gift, exchange, mortgage or transfer of property referred to in sub-section (1) shall be void ab initio.] **3[104B. Restoration of waqf properties in occupation of Government agencies to waqf Board.—** (1) If any waqf property has been occupied by the Government agencies it shall be returned to the Board or the mutawalli within a period of six months from the date of the order of the Tribunal. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Ins. by s. 53, ibid. (w.e.f. 1-11-2013). 3. Ins. by s. 54, ibid. (w.e.f. 1-11-2013). ----- (2) The Government agency may, if the property is required for a public purpose, make an application for determination of the rent, or as the case may be, the compensation, by the Tribunal at the prevailing market value.] **105. Power of Board and Chief Executive Officer to require copies of documents, etc., to be** **furnished.—Notwithstanding anything contained in any law for the time being in force, it shall be lawful** for the Board or the Chief Executive Officer to require any person having the custody of any record, register, report or other document relating to a [1][waqf] or any immovable property, which is [1][waqf] property, to furnish, subject to the payment of necessary costs, copies of, or extracts from, any such record, register, report or document and every person to whom such a requisition is made, shall furnish, as soon as may be practicable, to the Board or Chief Executive Officer, copies or extracts from the required record, register, report or other document. **106. Powers of Central Government to constitute common Boards.—(1) Where the Central** Government is satisfied that by reasons of— (i) the smallness of the Muslim population in two or more States, (ii) the slender resources of the [2][Auqaf] in such States, and (iii) the disproportion between the number and income of the [2][auqaf] and the Muslim population in such States, it is expedient in the interests of the [2][auqaf] in the States and the Muslim population of such States, to have, instead of separate Boards for each of such States, a common Board, it may, [3][after consultation with the Council and the Government] of each of the concerned States, establish, by notification in the Official Gazette, a common Board for such States as it may deem fit, and may, by the same or any subsequent notification specify the place at which the principal office of such common Board shall be located. (2) Every common Board established under sub-section (1) shall, as far as practicable, consist of the [persons specified in sub-section (1) or, as the case may be, sub-section (7) of section 14.](http://www.tnwakfboard.org/1995.43.htm#s14_7) (3) Whenever any common Board is established under sub-section (1)— (a) all powers vested in the State Government under any deed of [1][waqf] or any provision of law for the time being in force relating to [2][auqaf], shall stand transferred to, and vested in, the Central Government and, thereupon, references in such deed of [1][waqf] or law to the State Governments shall be construed as references to the Central Government: Provided that while establishing a common Board for two or more States, the Central Government shall ensure, that at least one representative of each of the concerned States is included as a member of the Board; (b) references in this Act to a State shall be construed as references to each of the States for which the common Board has been established; (c) the Central Government may, without prejudice to any rule applicable to a Board in a State, may, by notification in the Official Gazette, rules regulating the conduct of business by, and affairs of, the common Board. (4) The common Board shall be a body corporate, with objects not confined to one State, having perpetual succession and a common seal with power to acquire and hold property and to transfer any such property, subject to such conditions and restrictions as may be specified by the Central Government, and shall by the said name sue or be sued. **107. Act 36 of 1963 not to apply for recovery of** **[1][waqf] properties.—Nothing contained in the** Limitation Act, 1963 shall apply to any suit for possession of immovable property comprised in any 1[waqf] or for possession of any interest in such property. 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 3. Subs. by s. 55, ibid., for “after consultation with the Government” (w.e.f. 1-11-2013). ----- **108. Special provision as to evacuee** **[1][waqf] properties.—The provisions of this Act shall apply,** and shall be deemed always to have applied, in relation to any evacuee property within the meaning of clause (f) of section 2 of the Administration of Evacuee Property Act, 1950 (31 of 1950) which immediately before it became such evacuee property within the said meaning was property comprised in any [1][waqf] and, in particular any entrustment (whether by transfer of any documents or in any other manner and whether generally or for specified purpose) of any such property to a Board made before the commencement of this Act in pursuance of the instructions of the Custodian under the Administration of Evacuee Property Act, 1950 shall have, and shall be deemed always to have had, notwithstanding anything contained in any other provision of this Act, effect as if such entrustment had operated to— (a) vest such property in such Board in the same manner and with the same effect as in a trustee of such property for the purposes of sub-section (1) of section 11 of the Administration of Evacuee of Property Act, 1950 (31 of 1950), with effect from the date of such entrustment, and (b) authorise such Board to assume direct management of the [1][waqf] concerned for so long as it might deem necessary. **2[108A. Act to have overriding effect.—The provisions of this Act shall have overriding effect** notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act.] **109. Power to make rules.—(1) The State Government may, by notification in the Official Gazette,** [make rules to carry out the purposes of this Act, other than those of Chapter III.](http://www.tnwakfboard.org/1995.43.htm#ChIII) (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— 3[(i) the qualifications required to be fulfilled by a person to be appointed as a mutawalli under clause (i) of section 3; (ia) other particulars which the report of the Survey Commissioner may contain under clause (f) of sub-section (3) of section 4;] [(ii) any other matter under clause (f) of sub-section (4) of section 4;](http://www.tnwakfboard.org/1995.43.htm#s4_4f) (iii) the particulars which a list of [[4][auqaf] published under sub-section (2) of section 5, may](http://www.tnwakfboard.org/1995.43.htm#s5_2) contain; (iv) the manner of election of members of the Board by means of a single transferable vote, under [sub-section (2) of section 14;](http://www.tnwakfboard.org/1995.43.htm#s14_2) [(v) the terms and conditions of service of the Chief Executive Officer under sub-section (2) of](http://www.tnwakfboard.org/1995.43.htm#s23_2) [section 23;](http://www.tnwakfboard.org/1995.43.htm#s23_2) (vi) the conditions and restrictions subject to which the Chief Executive Officer or any other [officer may inspect any public office, records or registers [5][under sub-section (1) of] section 29;](http://www.tnwakfboard.org/1995.43.htm#s29) 6[(via) the period within which the mutawalli or any other person may produce documents related to waqf properties under sub-section (2) of section 31; (vib) the conditions under which an agency of the Government or any other organisation may supply copies of records, registers and other documents under sub-section (3) of section 31;] (vii) the conditions subject to which an Executive Officer and supporting staff may be appointed [under sub-section (1) of section 38;](http://www.tnwakfboard.org/1995.43.htm#s38) (viii) the manner in which an inquiry may be held by the Chief Executive Officer under [sub-section (1) of section 39;](http://www.tnwakfboard.org/1995.43.htm#s39) 1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013). 2. Ins. by s. 56, ibid. (w.e.f. 1-11-2013). 3. Subs. by s. 57, ibid., for clause (i) (w.e.f. 1-11-2013). 4. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013). 5. Subs. by s. 57, ibid., for “under” (w.e.f. 1-11-2013). 6. Ins. by s. 57, ibid. (w.e.f. 1-11-2013). ----- (ix) the form in which, and the time within which, a separate budget for [1][Auqaf] under the direct [management of the Board shall be prepared under sub-section (1) of section 45;](http://www.tnwakfboard.org/1995.43.htm#s45) (x) the interval at which accounts of [1][Auqaf] may be audited in pursuance of the provisions of sub-section (1) of section 47; 2* - - - (xii) the guidance subject to which the Collector shall recover the property transferred in [contravention of the provisions of this Act, under section 52;](http://www.tnwakfboard.org/1995.43.htm#s52) [(xiii) the manner of service of notice issued under sub-section (1) of section 54 and the manner in](http://www.tnwakfboard.org/1995.43.htm#s54) [which any inquiry is to be made under sub-section (3) of that section;](http://www.tnwakfboard.org/1995.43.htm#s54_3) [(xiv) the manner in which any inquiry may be held under section 64 or section 71;](http://www.tnwakfboard.org/1995.43.htm#s64) [(xv) the other matters which may be specified in the report submitted under sub-section (3) of](http://www.tnwakfboard.org/1995.43.htm#s65_3) [section 65;](http://www.tnwakfboard.org/1995.43.htm#s65_3) [(xvi) the manner of publication of order made under sub-section (2) of section 67;](http://www.tnwakfboard.org/1995.43.htm#s67_2) (xvii) the manner in which consultation may be made with mutawalli under sub-section (1) of section 69; [(xviii) the manner of publication of order made under sub-section (3) of section 69;](http://www.tnwakfboard.org/1995.43.htm#s69_3) [(xix) the rate at which contribution is to be made by a mutawalli under section 72;](http://www.tnwakfboard.org/1995.43.htm#s72) (xx) the payment of moneys into the [3][Waqf] Fund, the investment, the custody and disbursement [of such moneys under section 77;](http://www.tnwakfboard.org/1995.43.htm#s77) (xxi) the form in which, and the time within which, the budget of the Board may be prepared and [submitted under section 78;](http://www.tnwakfboard.org/1995.43.htm#s78) [(xxii) the time within which application is to be made to the Tribunal under sub-section (2) of](http://www.tnwakfboard.org/1995.43.htm#s83_2) [section 83;](http://www.tnwakfboard.org/1995.43.htm#s83_2) 4[(xxiia) the terms and conditions of appointment including the salaries and allowances payable to the Chairman and other members other than persons appointed as _ex officio members under_ sub-section (4A) of section 83;] [(xxiii) the procedure which the Tribunal shall follow under sub-section (6) of section 83;](http://www.tnwakfboard.org/1995.43.htm#s83_6) (xxiv) the form in which the annual report is to be submitted and the matters which such report [shall contain under section 98; and](http://www.tnwakfboard.org/1995.43.htm#s98) (xxv) any other matter which is required to be, or may be, prescribed. **110. Powers to make regulations by the Board.—(1) The Board may, with previous sanction of the** State Government, make regulations not inconsistent with this Act or the rules made thereunder, for carrying out its functions under this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such regulations may provide for all or any of the following matters, namely— [(a) the time and places of the meetings of the Board under sub-section (1) of section 17;](http://www.tnwakfboard.org/1995.43.htm#s17) (b) the procedure and conduct of business at the meetings of the Board; (c) the constitution and functions of the committees and the Board and the procedure for transaction of business at the meetings of such committees; (d) the allowances or fees to be paid to the Chairperson or members of the Board or members of committees; (e) the terms and conditions of service of the officers and other employees of the Board [under sub-section (2) of section 24;](http://www.tnwakfboard.org/1995.43.htm#s24_2) 1. Subs. by Act 27 of 2013, s. 4, for “wakfs” (w.e.f. 1-11-2013). 2. Cl. (xi) omitted by s. 57, ibid. (w.e.f. 1-11-2013). 3. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013). 4. Ins. by s. 57, ibid. (w.e.f. 1-11-2013). ----- (f) the forms of application for registration of [1][Auqaf] further particulars to be contained therein [and the manner and place of registration of [1][Auqaf] under sub-section (3) of section 36;](http://www.tnwakfboard.org/1995.43.htm#s36_3) [(g) further particulars to be contained in the register of [1][Auqaf] under Section 37;](http://www.tnwakfboard.org/1995.43.htm#s37) (h) the form in which, and the time within which, the budgets of [1][Auqaf] may be prepared and [submitted by the Mutawalli and approved by the Board under sub-section (1) of section 44;](http://www.tnwakfboard.org/1995.43.htm#s44) [(i) the books of accounts and other books to be maintained by the Board under section 79;](http://www.tnwakfboard.org/1995.43.htm#s79) (j) fees payable for inspection of proceedings and records of the Board or for issue of copies of the same; (k) persons by whom any order or decision of the Board may be authenticated; and (l) any other matter which has to be, or may be, provided by regulations. (3) All regulations made under this section shall be published in the Official Gazette and shall have effect from the date of such publication. **[111. Laying of rules and regulations before State Legislature.—Every rule made under section](http://www.tnwakfboard.org/1995.43.htm#s109)** [109 and every regulation made under section 110 shall be laid, as soon as may be after it is made, before](http://www.tnwakfboard.org/1995.43.htm#s109) the State Legislature. **[112. Repeal and savings.—(1) The Wakf Act, 1954 (29 of 1954) and the Wakf (Amendment)](http://www.tnwakfboard.org/1954.29.htm)** Act, 1984 (69 of 1984) are hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Acts shall be deemed to have been done or taken under the corresponding provisions of this Act. (3) If, immediately before the commencement of this Act, in any State, there is in force in that State, any law which corresponds to this Act that corresponding law shall stand repealed: Provided that such repeal shall not affect the previous operation of that corresponding law, and subject thereto, anything done or any action taken in the exercise of any power conferred by or under the corresponding law shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act as if this Act was in force on the day on which such things were done or action was taken. **113. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of the period of two years from the commencement of this Act. (2) However, order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 1. Subs. by Act 27 of 2013, s. 4, for “wakfs” (w.e.f. 1-11-2013). -----
16-Dec-1995
44
The Technology Development Board Act, 1995
https://www.indiacode.nic.in/bitstream/123456789/1901/1/A1995-44.pdf
central
# THE TECHNOLOGY DEVELOPMENT BOARD ACT, 1995 ________ ARRNGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II TECHNOLOGY DEVELOPMENT BOARD 3. Constitution and incorporation of the Board. 4. Secretary and other officers and employees of the Board. 5. Committees of the Board. 6. Functions of the Board. CHAPTER III APPLICATION FOR GRANT OF FINANCIAL ASSISTANCE 7. Application for grant of financial assistance, etc. CHAPTER IV FINANCE, ACCOUNTS AND AUDIT 8. Grants and loans by the Central Government. 9. Fund for Technology Development and Application. 10. Transfer of money receipts and liabilities. 11. Budget. 12. Annual report. 13. Accounts and audit. 14. Annual report and auditor’s report to be laid before Parliament. CHAPTER V MISCELLANEOUS 15. Returns to be furnished to the Board. 16. Power of the Central Government to issue directions. 17. Power of Central Government to supersede the Board. 18. Delegation. 19. Members, officers and employees of the Board to be public servants. 20. Protection of action taken in good faith. 21. Power of Central Government to make rules. 22. Power of Board to make regulations. 23. Rules and regulations to be laid before Parliament. 1 ----- # THE TECHNOLOGY DEVELOPMENT BOARD ACT, 1995 ACT NO. 44 OF 1995 [16thDecember,1995.] # An Act to provide for the constitution of a Board for payment of equity capital or any other financial assistance to industrial concerns and other agencies attempting development and commercial application of indigenous technology or adapting imported technology to wider domestic applications and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **[1. Short title and commencement.—(1) This Act may be called the Technology Development Board](http://indiankanoon.org/doc/631992/)** Act, 1995. [(2) It shall come into force on such date[1] as the Central Government may, by notification in the](http://indiankanoon.org/doc/1033502/) Official Gazette, appoint. **[2. Definitions.—In this Act, unless the context otherwise requires,—](http://indiankanoon.org/doc/1647575/)** [(a) “Board” means the Technology Development Board constituted under sub-section (1) of](http://indiankanoon.org/doc/179665/) section 3; [(b) “Chairperson” means the Chairperson of the Board;](http://indiankanoon.org/doc/580730/) [(c) “Fund” means the Fund for Technology Development and Application constituted under](http://indiankanoon.org/doc/1675787/) sub-section (1) of section 9; [(d) “member” means a member of the Board and includes the Chairperson;](http://indiankanoon.org/doc/439765/) [(e) “prescribed” means prescribed by rules made under this Act;](http://indiankanoon.org/doc/824781/) [(f) “Secretary” means the Secretary of the Board appointed under sub-section (1) of section 4;](http://indiankanoon.org/doc/1518292/) [(g) words and expressions used herein and not defined but defined in the Research and](http://indiankanoon.org/doc/1949586/) Development Cess Act, 1986 (32 of 1986), shall have the meanings respectively assigned to them in that Act. CHAPTER II TECHNOLOGY DEVELOPMENT BOARD **[3. Constitution and incorporation of the Board.—(1) The Central Government shall, by](http://indiankanoon.org/doc/1225228/)** notification in the Official Gazette, constitute, for the purposes of this Act, a Board to be called the Technology Development Board. [(2) The Board shall be a body corporate by the name aforesaid having perpetual succession and a](http://indiankanoon.org/doc/87324/) common seal with power, subject to the provisions of this Act, to contract and shall, by the said name, sue and be sued. [(3) The Board shall consist of the following members, namely:—](http://indiankanoon.org/doc/780734/) [(a) the Secretary to the Government of India](http://indiankanoon.org/doc/161235/) incharge of the Ministry or Department of the Central Government dealing with Science and Technology _ex officio_ Chairperson; 1. 1st November, 1996,vide notification No. S.O. 602(E), dated 29th August, 1996, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- [(b) the Secretary to the Government of India](http://indiankanoon.org/doc/350932/) incharge of the Ministry or Department of the Central Government dealing with Scientific and Industrial Research [(c) the Secretary to the Government of India](http://indiankanoon.org/doc/699630/) incharge of the Ministry or Department of the Central Government dealing with Finance (Expenditure) [(d) the Secretary to the Government of India](http://indiankanoon.org/doc/944257/) incharge of the Ministry or Department of the Central Government dealing with Defence Research and Development [(e) the Secretary to the Government of India](http://indiankanoon.org/doc/464282/) incharge of the Ministry or Department of the Central Government dealing with Industrial Development [(f) the Secretary to the Government of India](http://indiankanoon.org/doc/173694/) incharge of the Ministry or Department of the Central Government dealing with Rural Development [(g) such number of persons, not exceeding four as](http://indiankanoon.org/doc/1106362/) may be prescribed, to be appointed by the Central Government from amongst persons having experience in technology development and application, banking and finance, industry, agriculture and rural development; and _ex officio;_ _ex officio;_ _ex officio;_ _ex officio;_ _ex officio;_ [(h) Secretary of the Board.](http://indiankanoon.org/doc/1957570/) _ex officio._ [(4) The term of office and other conditions of service of members specified in clause (g) of](http://indiankanoon.org/doc/1413157/) sub-section (3) shall be such as may be prescribed. [(5) The Chairperson shall, in addition to presiding over the meetings of the Board, exercise and](http://indiankanoon.org/doc/1559803/) discharge such powers and duties of the Board as may be delegated to him by the Board and such other powers and duties as may be prescribed. [(6) No act or proceeding of the Board shall be invalidated merely by reason of—](http://indiankanoon.org/doc/84308/) [(a) any vacancy in, or any defect in the constitution of, the Board;](http://indiankanoon.org/doc/1513327/) [(b) any defect in the appointment of a person acting as a member of the Board;](http://indiankanoon.org/doc/774637/) [(c) any irregularity in the procedure of the Board not affecting the merits of the case.](http://indiankanoon.org/doc/1104785/) **[4. Secretary and other officers and employees of the Board.—(1) The Board may appoint the](http://indiankanoon.org/doc/271495/)** Secretary and such other officers and employees as it considers necessary for the efficient discharge of its functions under this Act. [(2) The terms and conditions of service of the Secretary and other officers and employees of the](http://indiankanoon.org/doc/1376138/) Board shall be such as may be determined by regulations. **[5. Committees of the Board.—(1) Subject to the rules made in this behalf, the Board may appoint](http://indiankanoon.org/doc/1877623/)** such committees as may be necessary for the efficient discharge of its duties and performance of its functions under this Act. [(2) The Board shall have the power to co-opt as members of any committee appointed under sub-](http://indiankanoon.org/doc/954173/) section (1), such number of persons who are not members of the Board as it may think fit, and the person 3 ----- so co-opted shall have the right to attend the meetings of the committee, and take part in the proceedings of the committee, but shall not have the right to vote. **[6. Functions of the Board.—The Board may—](http://indiankanoon.org/doc/1062891/)** [(a) provide equity capital, subject to such conditions as may be determind by regulations, or any](http://indiankanoon.org/doc/1165898/) other financial assistance to industrial concerns and other agencies attempting commercial application of indigenous technology or adapting imported technology to wider domestic applications; [(b) provide financial assistance to such research and development institutions engaged in](http://indiankanoon.org/doc/958129/) developing indigenous technology or adaptation of imported technology for commercial application, as may be recognised by the Central Government; [(c) perform such other functions as may be entrusted to it by the Central Government.](http://indiankanoon.org/doc/162666/) CHAPTER III APPLICATION FOR GRANT OF FINANCIAL ASSISTANCE **[7. Application for grant of financial assistance, etc.—(1) An application for grant of financial](http://indiankanoon.org/doc/1512350/)** assistance for the purposes mentioned under section 6 shall be made to the Board in such form as may be prescribed. [(2) The Board may, after examining the application and after making such enquiries as it deems](http://indiankanoon.org/doc/134164/) necessary by order in writing, either grant the financial assistance or refuse to grant the same: Provided that no refusal of grant shall be made unless an opportunity is given to the applicant of being heard. CHAPTER IV FINANCE, ACCOUNTS AND AUDIT **[8. Grants and loans by the Central Government.—The Central Government may, after due](http://indiankanoon.org/doc/1771133/)** appropriation made by Parliament by law, in this behalf, make to the Board grants and loans of such sums of money as that Government may consider necessary. **[9. Fund for Technology Development and Application.—(1) There shall be constituted a Fund to](http://indiankanoon.org/doc/1302057/)** be called the Fund for Technology Development and Application and there shall be credited to the Fund— [(a) any grants and loans made to the Board by the Central Government under section 8;](http://indiankanoon.org/doc/1438887/) [(b) all sums received by the Board from any other source;](http://indiankanoon.org/doc/641939/) [(c) recoveries made of the amounts granted from the Fund; and](http://indiankanoon.org/doc/127766/) [(d) any income from investment of the amount of the Fund.](http://indiankanoon.org/doc/1768937/) [(2) The Fund shall be applied for meeting—](http://indiankanoon.org/doc/470239/) [(a) expenses on the objects and for the purposes authorised by this Act;](http://indiankanoon.org/doc/731543/) [(b) salaries, allowances and other expenses of officers and other employees of the Board; and](http://indiankanoon.org/doc/338210/) [(c) expenses of the Board in the discharge of its functions under this Act.](http://indiankanoon.org/doc/989898/) **[10. Transfer of money receipts and liabilities.—On and from the commencement of this Act,—](http://indiankanoon.org/doc/1509635/)** [(a) the moneys standing at the credit of the Venture Capital Fund formed under section 5 of the](http://indiankanoon.org/doc/920067/) Research and Development Cess Act, 1986 (32 of 1986) which is part of the Development Assistance Fund established by the Development Bank under section 14 of the Industrial Development Bank of India Act, 1964 (18 of 1964) shall stand transferred to and vest in the Board; [(b) all sums of money due to the Development Bank immediately before such commencement](http://indiankanoon.org/doc/1865954/) shall be deemed to be due to the Board; [(c) all debts, obligations and liabilities incurred, all contracts or agreements entered into and all](http://indiankanoon.org/doc/1941781/) matters and things engaged to be done by, with or for the Development Bank immediately before 4 ----- such commencement for or in connection with the purpose of the Venture Capital Fundshall be deemed to have been incurred, entered into or engaged to be done by, with or for the Board; and [(d) all suits and other legal proceedings instituted or which could have been instituted by or](http://indiankanoon.org/doc/1164740/) against the Development Bank immediately before such commencement may be continued or instituted by or against the Board. **[11. Budget.—The Board shall prepare, in such form and at such time in each financial year, as may](http://indiankanoon.org/doc/848574/)** be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Board and forward the same to the Central Government. **[12. Annual report.—The Board shall prepare, in such form and at such time in each financial year,](http://indiankanoon.org/doc/1245728/)** as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the Central Government. **[13. Accounts and audit.—(1) The Board shall maintain proper accounts and other relevant records](http://indiankanoon.org/doc/1773419/)** and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. [(2) The Comptroller and Auditor-General of India or any other person appointed by him in](http://indiankanoon.org/doc/1433826/) connection with the auditing of the accounts of the Board under this Act shall have the same rights and privileges and the authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the auditing of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Board under this Act. [(3) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India](http://indiankanoon.org/doc/1109/) annually and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India. [(4) The Board shall furnish to the Central Government before such date as may be prescribed its](http://indiankanoon.org/doc/873675/) audited copy of accounts together with auditor’s report. **[14. Annual report and auditor’s report to be laid before Parliament.—The Central Government](http://indiankanoon.org/doc/269638/)** shall cause the annual report and auditor’s report to be laid, as soon as may be after they are received, before each House of Parliament. CHAPTER V MISCELLANEOUS **[15. Returns to be furnished to the Board.—(1) An industrial concern or an institution receiving](http://indiankanoon.org/doc/1136577/)** financial assistance from the Board shall furnish returns to the Board in such form and at such time as may be determined by regulations. [(2) The Board may authorise an officer to visit any industrial concern or institution referred to in sub-](http://indiankanoon.org/doc/1582401/) section (1) at any time to verify the accuracy of any return made under this section. **[16. Power of the Central Government to issue directions.—(1) Without prejudice to the foregoing](http://indiankanoon.org/doc/1934207/)** provisions of this Act, the Board shall, in the discharge of its functions and duties under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Board shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. [(2) The decision of the Central Government whether a question is one of the policy or not shall be](http://indiankanoon.org/doc/638729/) final. **[17. Power of Central Government to supersede the Board.—(1) If at any time the Central](http://indiankanoon.org/doc/1201506/)** Government is of opinion— [(a) that on account of grave emergency, the Board is unable to discharge the functions and the](http://indiankanoon.org/doc/1592359/) duties imposed on it by or under the provisions of this Act; or 5 ----- [(b) that the Board has persistently made default in complying with any direction issued by the](http://indiankanoon.org/doc/1311570/) Central Government under this Act or in the discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Board or the administration of the Board has deteriorated; or [(c) that circumstances exist which render it necessary in the public interest so to do,](http://indiankanoon.org/doc/356871/) the Central Government may, be notification in the Official Gazette, supersede the Board for such period, not exceeding six months, as may be specified in the notification. [(2) Upon the publication of a notification under sub-section (1) superseding the Board,—](http://indiankanoon.org/doc/1898742/) [(a) all the members shall, as from the date of supersession, vacate their offices as such;](http://indiankanoon.org/doc/1033311/) [(b) all the powers, functions and duties which may, by or under the provisions of this Act, be](http://indiankanoon.org/doc/1180011/) exercised or discharged by or on behalf of the Board shall, until the Board is reconstituted under subsection (3), be exercised and discharged by such person or persons as the Central Government may direct; and [(c) all property owned or controlled by the Board shall, until the Board is reconstituted under](http://indiankanoon.org/doc/951247/) sub-section (3), vest in the Central Government. [(3) On the expiration of the period of supersession specified in the notification issued under sub-](http://indiankanoon.org/doc/1175607/) section (1), the Central Government may reconstitute the Board by a fresh appointment and in such case any person or persons who vacated their offices under clause (a) of sub-section (2), shall not be deemed to be disqualified for appointment: Provided that the Central Government may, at any time, before the expiration of the period of supersession, take action under this sub-section. [(4) The Central Government shall cause a notification issued under sub-section (1) and a full report of](http://indiankanoon.org/doc/798161/) any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament at the earliest. **[18. Delegation.—The Board may, by general or special order in writing, delegate to the Chairperson](http://indiankanoon.org/doc/1851203/)** or any other member or to any officer of the Board,subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act (except the power under section 22) as it may deem necessary. **[19. Members, officers and employees of the Board to be public servants.—All members, officers](http://indiankanoon.org/doc/853602/)** and another employees of the Board shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **[20. Protection of action taken in good faith.—No prosecution or other legal proceeding shall lie](http://indiankanoon.org/doc/269950/)** against the Government, or the Board or any committee appointed by it, or any member of the Board or such committee, or any officer or employee of the Government or the Board or any other person authorised by the Government or the Board, for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. **[21. Power of Central Government to make rules.—(1) The Central Government may, by](http://indiankanoon.org/doc/169626/)** notification in the Official Gazette, make rules to carry out the provisions of this Act. [(2) Without prejudice to the generality of the forgoing power, such rules may provide for all or any of](http://indiankanoon.org/doc/1478899/) the following matters, namely:— [(a) the number of members of the Board under clause (g) of sub-section (3) of section 3;](http://indiankanoon.org/doc/1227711/) [(b) the term of office and other conditions of service of the members of the Board under](http://indiankanoon.org/doc/189896/) sub-section (4) of section 3; [(c) the powers and duties of the Chairperson under sub-section (5) of section 3;](http://indiankanoon.org/doc/696334/) [(d) the constitution of committees under sub-section (1) of section 5;](http://indiankanoon.org/doc/1841573/) 6 ----- [(e) theform of application under sub-section (1) of section 7;](http://indiankanoon.org/doc/380123/) [(f) the form in which, and the time at which, the Board shall prepare its budget under section 11](http://indiankanoon.org/doc/1525895/) and its annual report under section 12; [(g) the form of annual statement of accounts under sub-section (1) of section 13 and the date](http://indiankanoon.org/doc/368476/) before which the audited copy of the accounts may be furnished to the Central Government under sub-section (4) of that section; [(h) any other matter which is to be, or may be, prescribed or in respect of which provisions is to](http://indiankanoon.org/doc/758542/) be, or may be, made by rules. **[22. Power of Board to make regulations.—(1) The Board may, with the previous approval of the](http://indiankanoon.org/doc/402284/)** Central Government, by notification in the Official Gazette, make regulations consistent with this Act and the rules generally to carry out the provisions of this Act. [(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may](http://indiankanoon.org/doc/358314/) provide for all or any of the following matters, namely:— [(a) the terms and conditions of service of the Secretary and other officers and employees of the](http://indiankanoon.org/doc/145879/) Board under sub-section (2) of section 4; [(b) the conditions subject to which equity capital may be provided by the Board under clause (a)](http://indiankanoon.org/doc/1515340/) of section 6; [(c) the form in which and the time at which the returns may be furnished to the Board under](http://indiankanoon.org/doc/1171456/) sub-section (1) of section 15. **[23. Rules and regulations to be laid before Parliament.—Every rule and every regulation made](http://indiankanoon.org/doc/598/)** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. 7 -----
10-Aug-1996
22
The Depositories Act, 1996
https://www.indiacode.nic.in/bitstream/123456789/1955/1/A1996_22.pdf
central
# THE DEPOSITORIES ACT, 1996 _________ ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II CERTIFICATE OF COMMENCEMENT OF BUSINESS 3. Certificate of commencement of business by depositories. CHAPTER III RIGHTS AND OBLIGATIONS OF DEPOSITORIES, PARTICIPANTS, ISSUERS AND BENEFICIAL OWNERS 4. Agreement between depository and participant. 5. Services of depository. 6. Surrender of certificate of security. 7. Registration of transfer of securities with depository. 8. Options to receive security certificate or hold securities with depository. 9. Securities in depositories to be in fungible form. 10. Rights of depositories and beneficial owner. 11. Register of beneficial owner. 12. Pledge or hypothecation of securities held in a depository. 13. Furnishing of information and records by depository and issuer. 14. Option to opt out in respect of any security. 15. Act 18 of 1891 to apply to depositories. 16. Depositories to indemnify loss in certain cases. 17. Rights and obligations of depositories, etc. CHAPTER IV ENQUIRY AND INSPECTION 18. Power of Board to call for information and enquiry. 19. Power of Board to give directions in certain cases. 19A. Penalty for failure to furnish information, return, etc. 19B. Penalty for failure to enter into an agreement. 19C. Penalty for failure to redress investors‟ grievances. 19D. Penalty for delay in dematerialisation or issue of certificate of securities. 19E. Penalty for failure to reconcile records. 19F. Penalty for failure to comply with directions issued by Board under section 19 of the Act. 19FA. Penalty for conduct business in a fair manner. 19G. Penalty for contravention where no separate penalty has been provided. 19H. Power to adjudicate. 19-I. Factors to be taken into while adjudging quantum of penalty. 1 ----- SECTIONS 19-IA. Settlement of Administrative and Civil Proceedings. 19-IB. Recovery of amounts. 19-IC. Continuance of proceedings. 19J. Crediting sums realised by way of penalties to Consolidated Fund of India. CHAPTER V MISCELLANEOUS 20. Offences. 21. Contravention by companies. [OMITTED.]. 22. Cognizance of offences by courts. 22A. Composition of certain offences. 22B. Power to grant immunity. 22C. Establishment of Special Courts. 22D. Offences triable by Special Courts. 22E. Appeal and revision. 22F. Application of Code to proceedings before Special Court. 22G. Transitional provisions. 23. Appeals. 23A. Appeal to Securities Appellate Tribunal. 23B. Procedure and powers of Securities Appellate Tribunal. 23C. Right to legal representation. 23D. Limitation. 23E. Civil Court not to have jurisdiction. 23F. Appeal to Supreme Court. 23G. Powers of Board not to apply to International Financial Services Centre. 24. Power of Central Government to make rules. 25. Power of Board to make regulations. 26. Power of depositories to make bye-laws. 27. Rules and regulations to be laid before Parliament. 28. Application of other laws not barred. 29. Removal of difficulties. 30. [Repealed.] 30A. Validation of certain acts. 31. Repeal and saving. THE SCHEDULE. [Repealed.] 2 ----- # THE DEPOSITORIES ACT, 1996 ACT NO. 22 OF 1996 [10th August, 1996.] An Act to provide for regulation of depositories in securities and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Depositories Act, 1996.** (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 20th day of September, 1995. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “beneficial owner” means a person whose name is recorded as such with a depository; (b) “Board” means the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (c) “bye-laws” means bye-laws made by a depository under section 26; (d) “Company Law Board” means the Board of Company Law Administration constituted under section 10E of the Companies Act, 1956 (1 of 1956); (e) “depository” means a company formed and registered under the Companies Act, 1956 (1 of 1956) and which has been granted a certificate of registration under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (f) “issuer” means any person making an issue of securities; (g) “participant” means a person registered as such under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (h) “prescribed” means prescribed by rules made under this Act; (i) “record” includes the records maintained in the form of books or stored in a computer or in such other form as may be determined by regulations; (j) “registered owner” means a depository whose name is entered as such in the register of the issuer; (k) “regulations” means the regulations made by the Board; 1[(ka) “Securities Appellate Tribunal” means a Securities Appellate Tribunal established under sub-section (1) of section 15K of the Securities and Exchange Board of India Act, 1992 (15 of 1992);] (l) “security” means such security as may be specified by the Board; (m) “service” means any service connected with recording of allotment of securities or transfer of ownership of securities in the record of a depository. (2) Words and expressions used herein and not defined but defined in the Companies Act, 1956 (1 of 1956) or the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall have the meanings respectively assigned to them in those Acts. 1. Ins. by Act 32 of 1999, s. 13 (w.e.f. 16-12-1999). 3 ----- CHAPTER II CERTIFICATE OF COMMENCEMENT OF BUSINESS **3. Certificate of commencement of business by depositories.—(1) No depository shall act as a** depository unless it obtains a certificate of commencement of business from the Board. (2) A certificate granted under sub-section (1) shall be in such form as may be specified by the regulations. (3) The Board shall not grant a certificate under sub-section (1) unless it is satisfied that the depository has adequate systems and safeguards to prevent manipulation of records and transactions: Provided that no certificate shall be refused under this section unless the depository concerned has been given a reasonable opportunity of being heard. CHAPTER III RIGHTS AND OBLIGATIONS OF DEPOSITORIES, PARTICIPANTS, ISSUERS AND BENEFICIAL OWNERS **4. Agreement between depository and participant.—(1) A depository shall enter into an agreement** with one or more participants as its agent. (2) Every agreement under sub-section (1) shall be in such form as may be specified by the bye-laws. **5. Services of depository.—Any person, through a participant, may enter into an agreement, in such** form as may be specified by the bye-laws, with any depository for availing its services. **6. Surrender of certificate of security.—(1) Any person who has entered into an agreement under** section 5 shall surrender the certificate of security, for which he seeks to avail the services of a depository, to the issuer in such manner as may be specified by the regulations. (2) The issuer, on receipt of certificate of security under sub-section (1), shall cancel the certificate of security and substitute in its records the name of the depository as a registered owner in respect of that security and inform the depository accordingly. (3) A depository shall, on receipt of information under sub-section (2), enter the name of the person referred to in sub-section (1) in its records, as the beneficial owner. **7. Registration of transfer of securities with depository.—(1) Every depository shall, on receipt of** intimation from a participant, register the transfer of security in the name of the transferee. 1[(1A) Every depository on receipt of intimation from a participant register any transfer of security in favour of an asset reconstruction company as defined in clause (ba) of sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) along with or consequent upon transfer or assignment of financial asset of any bank or financial institution under sub-section (1) of section 5 of that Act. (1B) Every depository, on receipt of intimation from a participant, register any issue of new shares in favour of any bank or financial institution or asset reconstruction company or any other assignee of such bank or financial institution or asset reconstruction company, as the case may be, by conversion of part of their debt into shares pursuant to reconstruction of debts of the company agreed between the company and the bank or financial institution or asset reconstruction company. _Explanation.—For the purpose of this section, the expressions “asset reconstruction company”,_ “bank”, and “financial institution” shall have the meanings assigned to them respectively under clauses (ba), (c) and (m) of sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002).] (2) If a beneficial owner or a transferee of any security seeks to have custody of such security, the depository shall inform the issuer accordingly. **8. Options to receive security certificate or hold securities with depository.—(1) Every person** subscribing to securities offered by an issuer shall have the option either to receive the security certificates or hold securities with a depository. (2) Where a person opts to hold a security with a depository, the issuer shall intimate such depository the details of allotment of the security, and on receipt of such information the depository shall enter in its records the name of the allottee as the beneficial owner of that security. 1. Ins. by Act 44 of 2016, s. 44 and the Second Schedule (w.e.f. 1-9-2016). 4 ----- **9. Securities in depositories to be in fungible form.—(1) All securities held by a depository shall be** dematerialised and shall be in a fungible form. [1][(2) Nothing contained in sections 153, 153A, 153B, 187B, 187C and 372 of the Companies Act, 1956 (1 of 1956) shall apply to a depository in respect of securities held by it on behalf of the beneficial owners.] **10. Rights of depositories and beneficial owner.—(1) Notwithstanding anything contained in any** other law for the time being in force, a depository shall be deemed to be the registered owner for the purposes of effecting transfer of ownership of security on behalf of a beneficial owner. (2) Save as otherwise provided in sub-section (1), the depository as a registered owner shall not have any voting rights or any other rights in respect of securities held by it. (3) The beneficial owner shall be entitled to all the rights and benefits and be subjected to all the liabilities in respect of his securities held by a depository. **11. Register of beneficial owner.—Every depository shall maintain a register and an index of** beneficial owners in the manner provided in sections 150, 151 and 152 of the Companies Act, 1956 (1 of 1956). **12. Pledge or hypothecation of securities held in a depository.—(1) Subject to such regulations** and bye-laws, as may be made in this behalf, a beneficial owner may with the previous approval of the depository create a pledge or hypothecation in respect of a security owned by him through a depository. (2) Every beneficial owner shall give intimation of such pledge or hypothecation to the depository and such depository shall thereupon make entries in its records accordingly. (3) Any entry in the records of a depository under sub-section (2) shall be evidence of a pledge or hypothecation. **13. Furnishing of information and records by depository and issuer.—(1) Every depository shall** furnish to the issuer information about the transfer of securities in the name of beneficial owners at such intervals and in such manner as may be specified by the bye-laws. (2) Every issuer shall make available to the depository copies of the relevant records in respect of securities held by such depository. **14. Option to opt out in respect of any security.—(1) If a beneficial owner seeks to opt out of a** depository in respect of any security he shall inform the depository accordingly. (2) The depository shall on receipt of intimation under sub-section (1) make appropriate entries in its records and shall inform the issuer. (3) Every issuer shall, within thirty days of the receipt of intimation from the depository and on fulfilment of such conditions and on payment of such fees as may be specified by the regulations, issue the certificate of securities to the beneficial owner or the transferee, as the case may be. **15. Act 18 of 1891 to apply to depositories.—The Bankers‟ Books Evidence Act, 1891 shall apply** in relation to a depository as if it were a bank as defined in section 2 of that Act. **16. Depositories to indemnify loss in certain cases.—(1) Without prejudice to the provisions of any** other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the depository or the participant, the depository shall indemnify such beneficial owner. (2) Where the loss due to the negligence of the participant under sub-section (1) is indemnified by the depository, the depository shall have the right to recover the same from such participant. **17. Rights and obligations of depositories, etc.—(1) Subject to the provisions of this Act, the rights** and obligations of the depositories, participants and the issuers whose securities are dealt with by a depository shall be specified by the regulations. (2) The eligibility criteria for admission of securities into the depository shall be specified by the regulations. 1. Subs. by Act 8 of 1997, s. 22, for sub-section (2) (w.e.f. 15-1-1997). 5 ----- CHAPTER IV ENQUIRY AND INSPECTION **18. Power of Board to call for information and enquiry.—(1) The Board, on being satisfied that it** is necessary in the public interest or in the interest of investors so to do, may, by order in writing,— (a) call upon any issuer, depository, participant or beneficial owner to furnish in writing such information relating to the securities held in a depository as it may require; or (b) authorise any person to make an enquiry or inspection in relation to the affairs of the issuer, beneficial owner, depository or participant, who shall submit a report of such enquiry or inspection to it within such period as may be specified in the order. (2) Every director, manager, partner, secretary, officer or employee of the depository or issuer or the participant or beneficial owner shall on demand produce before the person making the enquiry or inspection all information or such records and other documents in his custody having a bearing on the subject matter of such enquiry or inspection. **19. Power of Board to give directions in certain cases.—[1][1] Save as provided in this Act, if after** making or causing to be made an enquiry or inspection, the Board is satisfied that it is necessary— (i) in the interest of investors, or orderly development of securities market; or (ii) to prevent the affairs of any depository or participant being conducted in the manner detrimental to the interests of investors or securities market, it may issue such directions— (a) to any depository or participant or any person associated with the securities market; or (b) to any issuer, as may be appropriate in the interest of investors or the securities market. 2[Explanation.—For the removal of doubts, it is hereby declared that power to issue directions under this section shall include and always be deemed to have been included the power to direct any person, who made profit or averted loss by indulging in any transaction or activity in contravention of the provisions of this Act or regulations made thereunder, to disgorge an amount equivalent to the wrongful gain made or loss averted by such contravention.] 3[(2) Without prejudice to the provisions contained in sub-section (1) and section 19H, the Board may, by order, for reason to be recorded in writing, levy penalty under sections 19A, 19B, 19D, 19E, 19F, 19FA and 19G after holding an inquiry in the prescribed manner.] 4[19A. Penalty for failure to furnish information, return, etc.—Any person, who is required under this Act or any rules or regulations or bye-laws made thereunder,— (a) to furnish any information, document, books, returns or report to the Board, fails to furnish the same within the time specified therefor [5][or who furnishes or files false, incorrect or incomplete information, return, report, books or other documents], he shall be liable to a penalty [6][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees] for each such failure; (b) to file any return or furnish any information, books or other documents within the time specified therefor in the regulations or bye-laws, fails to file return or furnish the same within the time specified therefor, he [5][or who furnishes or files false, incorrect or incomplete information, return, report, books or other documents] shall be liable to a penalty [3][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]; (c) to maintain books of account or records, fails to maintain the same, he shall be liable to a penalty [3][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]. 1. Section 19 numbered as sub-section (1) thereof by Act 13 of 2018, s. 192 (w.e.f. 8-3-2019). 2. Ins. by Act 27 of 2014, s. 41 (w.e.f. 8-9-2014). 3. Ins. by Act 13 of 2018, s. 192 (w.e.f. 8-3-2019). 4. Ins. by Act 1 of 2005, s. 17 (w.e.f. 12-10-2004). 5. Ins. by Act 13 of 2018, s. 193 (w.e.f. 8-3-2019). 6. Subs. by Act 27 of 2014, s. 42, for certain words (w.e.f. 8-9-2014). 6 ----- **19B. Penalty for failure to enter into an agreement.—If a depository or participant or any issuer or** its agent or any person, who is registered as an intermediary under the provisions of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), and is required under this Act or any rules or regulations, made thereunder, to enter into an agreement, fails to enter into such agreement, such depository or participant or issuer or its agent or intermediary shall be liable to a penalty [1][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees] for every such failure. **19C. Penalty for failure to redress investors’ grievances.—If any depository or participant or any** issuer or its agent or any person, who is registered as an intermediary under the provisions of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), after having been called upon by the Board in writing, to redress the grievances of the investors, fails to redress such grievances within the time specified by the Board, such depository or participant or issuer or its agents or intermediary shall be liable to a penalty [2][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]. **19D. Penalty for delay in dematerialisation or issue of certificate of securities.—If any issuer or** its agent or any person, who is registered as an intermediary under the provisions of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), fails to dematerialise or issue the certificate of securities on opting out of a depository by the investors, within the time specified under this Act or regulations or bye-laws made thereunder or abets in delaying the process of dematerialisation or issue the certificate of securities on opting out of a depository of securities, such issuer or its agent or intermediary shall be liable to a penalty [3][which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]. **19E. Penalty for failure to reconcile records.—If a depository or participant or any issuer or its** agent or any person, who is registered as an intermediary under the provisions of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), fails to reconcile the records of dematerialised securities with all the securities issued by the issuer as specified in the regulations, such depository or participant or issuer or its agent or intermediary shall be liable to a penalty [4][which shall not not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]. **19F. Penalty for failure to comply with directions issued by Board under section 19 of the** **Act.—If any person fails to comply with the directions issued by the Board under section 19, within the** time specified by it, he shall be liable to a penalty [5][which shall not be less than one lakh rupees but which which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]. 6[19FA. Penalty for failure to conduct business in a fair manner.—Where a depository fails to conduct its business with its participants or any issuer or its agent or any person associated with the securities markets in a fair manner in accordance with the rules, regulations made by the Board or directions issued by the Board under this Act, it shall be liable to penalty which shall not be less than five crore rupees but which may extend to twenty-five crore rupees or three times the amount of gains made out of such failure, whichever is higher.] **19G. Penalty for contravention where no separate penalty has been provided.—Whoever fails to** comply with any provision of this Act, the rules or the regulations or bye-laws made or directions issued by the Board thereunder for which no separate penalty has been provided, shall be [7][liable to a penalty which shall not be less than one lakh rupees but which may extend to one crore rupees]. 1. Subs. by Act 27 of 2014, s. 43, for certain words (w.e.f. 8-9-2014). 2. Subs. by s. 44, ibid., for certain words (w.e.f. 8-9-2014). 3. Subs. by s. 45, ibid., for certain words (w.e.f. 8-9-2014). 4. Subs. by s. 46, ibid., for certain words (w.e.f. 8-9-2014). 5. Subs. by s. 47, ibid., for certain words (w.e.f. 8-9-2014). 6. Ins. by Act 13 of 2018, s. 194 (w.e.f. 8-3-2019). 7. Subs. by Act 27 of 2014, s. 48, for certain words (w.e.f. 28-3-2014). 7 ----- **19H. Power to adjudicate.—(1) For the purpose of adjudging under sections 19A, 19B, 19C, 19D,** 19E, [1][19F, 19FA and 19G, the Board may] appoint any officer not below the rank of a Division Chief of the Securities and Exchange Board of India to be an adjudicating officer for holding an inquiry in the prescribed manner after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty. (2) While holding an inquiry, the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document, which in the opinion of the adjudicating officer, may be useful for or relevant to the subject-matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of any of the sections specified in sub-section (1), he may impose such penalty as he thinks fit in accordance with the provisions of any of those sections. 2[(3) The Board may call for and examine the record of any proceedings under this section and if it considers that the order passed by the adjudicating officer is erroneous to the extent it is not in the interests of the securities market, it may, after making or causing to be made such inquiry as it deems necessary, pass an order enhancing the quantum of penalty, if the circumstances of the case so justify: Provided that no such order shall be passed unless the person concerned has been given an opportunity of being heard in the matter: Provided further that nothing contained in this sub-section shall be applicable after an expiry of a period of three months from the date of the order passed by the adjudicating officer or disposal of the appeal under section 23A, whichever is earlier.] **19-I. [3][Factors to be taken into account while adjudging quantum of penalty].—While adjudging** adjudging the quantum of penalty under [4][section 19 or section 19H, the Board or the adjudicating officer] shall have due regard to the following factors, namely:— (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the amount of loss caused to an investor or group of investors as a result of the default; (c) the repetitive nature of the default. 5[Explanation.—For the removal of doubts, it is clarified that the power of 6*** to adjudge the quantum of penalty under sections 19A to 19F shall be and shall always be deemed to have been exercised under the provisions of this section.] **7** [19-IA. Settlement of Administrative and Civil Proceedings.—(1) Notwithstanding anything contained in any other law for the time being in force, any person, against whom any proceedings have been initiated or may be initiated under section 19 or section 19H, as the case may be, may file an application in writing to the Board proposing for settlement of the proceedings initiated or to be initiated for the alleged defaults. (2) The Board may, after taking into consideration the nature, gravity and impact of defaults, agree to the proposal for settlement, on payment of such sum by the defaulter or on such other terms as may be determined by the Board in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992). (3) For the purpose of settlement under this section, the procedure as specified by the Board under the Securities and Exchange Board of India Act, 1992 (15 of 1992) shall apply. 1. Subs. by Act 13 of 2018, s. 195, for “19F and 19G, the Board shall” (w.e.f. 8-3-2019). 2. Ins. by Act 27 of 2014, s. 49 (w.e.f. 18-7-2013). 3. Subs. by Act 13 of 2018, s. 196, for “Factors to be taken into account by adjudicating officer” (w.e.f. 8-3-2019). 4. Subs. by s. 196, ibid., for “section 19H, the adjudicating officer” (w.e.f. 8-3-2019). 5. Ins. by Act 7 of 2017, s. 149 (31-3-2017). 6. The words “of an adjudicating officer” omitted by Act 13 of 2018, s. 196 (w.e.f. 8-3-2019). 7. Ins. by Act 27 of 2014, s. 50 (w.e.f. 20-4-2007). 8 ----- (4) No appeal shall lie under section 23A against any order passed by the Board or the adjudicating officer under this section.] 1[(5) All settlement amounts, excluding the disgorgement amount and legal costs, realised under this Act shall be credited to the Consolidated Fund of India.] **2[19-IB.** **Recovery of amounts.—(1) If a person fails to pay the penalty imposed 3[under this Act] or** or fails to comply with a direction of disgorgement order issued under section 19 or fails to pay any fees due to the Board, the Recovery Officer may draw up under his signature a statement in the specified form specifying the amount due from the person (such statement being hereafter in this Chapter referred to as certificate) and shall proceed to recover from such person the amount specified in the certificate by one or more of the following modes, namely:— (a) attachment and sale of the person‟s movable property; (b) attachment of the person‟s bank accounts; (c) attachment and sale of the person‟s immovable property; (d) arrest of the person and his detention in prison; (e) appointing a receiver for the management of the person‟s movable and immovable properties, and for this purpose, the provisions of sections 220 to 227, 228A, 229, 232, the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961), and the Income-tax (Certificate Proceedings) Rules, 1962 as in force from time to time, in so far as may be, apply with necessary modifications as if the said provisions and the rules thereunder were the provisions of this Act and referred to the amount due under this Act instead of to income-tax under the Income-tax Act, 1961. _Explanation 1.—For the purposes of this sub-section, the person‟s movable or immovable property or_ monies held in bank accounts shall include any property or monies held in bank accounts which has been transferred, directly or indirectly on or after the date when the amount specified in certificate had become due, by the person to his spouse or minor child or son‟s wife or son‟s minor child, otherwise than for adequate consideration, and which is held by, or stands in the name of, any of the persons aforesaid; and so far as the movable or immovable property or monies held in bank accounts so transferred to his minor child or his son‟s minor child is concerned, it shall, even after the date of attainment of majority by such minor child or son‟s minor child, as the case may be, continue to be included in the person‟s movable or immovable property or monies held in bank accounts for recovering any amount due from the person under this Act. _Explanation_ 2.—Any reference under the provisions of the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 1962 to the assessee shall be construed as a reference to the person specified in the certificate. _Explanation_ 3.—Any reference to appeal in Chapter XVIID and the Second Schedule to the Income-tax Act, 1961 (43 of 1961), shall be construed as a reference to appeal before the Securities Appellate Tribunal under section 23A of this Act. (2) The Recovery Officer shall be empowered to seek the assistance of the local district administration while exercising the powers under sub-section (1). (3) Notwithstanding anything contained in any other law for the time being in force, the recovery of amounts by a Recovery Officer under sub-section (1), pursuant to non-compliance with any direction issued by the Board under section 19, shall have precedence over any other claim against such person. 1. Ins. by Act 13 of 2018, s. 197 (w.e.f. 8-3-2019). 2. Ins. by Act 27 of 2014, s. 51 (w.e.f. 18-7-2013). 3. Subs. by Act 13 of 2018, s. 198, for “by the adjudicating officer” (w.e.f. 8-3-2019). 9 ----- (4) For the purposes of sub-sections (1), (2) and (3), the expression „„Recovery Officer‟‟ means any officer of the Board who may be authorised, by general or special order in writing, to exercise the powers of a Recovery Officer.] 1[19-IC. Continuance of proceedings.—(1) Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased: Provided that, in case of any penalty payable under this Act, a legal representative shall be liable only in case the penalty has been imposed before the death of the deceased person. (2) For the purposes of sub-section (1),— (a) any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this Act, except a proceeding for levy of penalty, initiated against the deceased before his death shall be deemed to have been initiated against the legal representative, and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased and all the provisions of this Act shall apply accordingly; (b) any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this Act, except a proceeding for levy of penalty, which could have been initiated against the deceased if he had survived, may be initiated against the legal representative and all the provisions of this Act shall apply accordingly. (3) Every legal representative shall be personally liable for any sum payable by him in his capacity as legal representative if, while his liability for such sum remains undischarged, he creates a charge on or disposes of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession, but such liability shall be limited to the value of the asset so charged, disposed of or parted with. (4) The liability of a legal representative under this section shall be limited to the extent to which the estate of the deceased is capable of meeting the liability. _Explanation.—For the purposes of this section “legal representative” means a person who in law_ represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased and where a party sues or is sued in a representative character, the person on whom the estate devolves on the death of the party so suing or sued.] **19J. Crediting sums realised by way of penalties to Consolidated Fund of India.—All sums** realised by way of penalties under this Act shall be credited to the Consolidated Fund of India.] CHAPTER V 2 [MISCELLANEOUS] 3[20. Offences.—(1) Without prejudice to any award of penalty by the adjudicating officer 4[or the Board] under this Act, if any person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules or regulations or bye-laws made thereunder, he shall be punishable with imprisonment for a term which may extend to ten years, or with fine, which may extend to twenty-five crore rupees, or with both. (2) If any person fails to pay the penalty imposed by the [5][adjudicating officer or the Board or fails to comply with any] directions or orders, he shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to ten years, or with fine, which may extend to twentyfive crore rupees, or with both.] 1. Ins. by Act 13 of 2018, s. 199 (w.e.f. 8-3-2019). 2. Subs. by s. 200, ibid.., for “PENALTY” (w.e.f. 8-3-2019). 3. Subs. by Act 1 of 2005, s. 18, for section 20 (w.e.f. 12-10-2004). 4. Ins. by Act 13 of 2018, s. 201 (w.e.f. 8-3-2019). 5. Subs. by s. 201, ibid., for “adjudicating officer or fails to comply with any of his” (w.e.f. 8-3-2019). 10 ----- **21. [1][Contravention by companies].—(1) Where [2][a contravention of any of the provisions of this** Act or any rule, regulation, direction or order made thereunder] has been committed by a company, every person who at the time the [3][contravention] was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the [3][contravention] and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where [2][a contravention of any of the provisions of this Act or any rule, regulation, direction or order made thereunder] this Act has been committed by a company and it is proved that the [3][contravention] has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the [3][contravention] and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ _(a) “company” means any body corporate and includes a firm or other association of individuals;_ and (b) “director”, in relation to a firm, means a partner in the firm. [CHAPTER VI.—MISCELLANEOUS] Omitted by the Finance Act, 2018 (13 of 2018), s. 203 (w.e.f. 8-32019).] 4 **[22. Cognizance of offences by courts.—(1) No court shall take cognizance of any offence** punishable under this Act or any rules or regulations or bye-laws made thereunder, save on a complaint made by the Central Government or State Government or the Securities and Exchange Board of India or by any person. 5* - - - **22A. Composition of certain offences.—Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act, not being an offence punishable with imprisonment only, or with imprisonment and also with fine, may either before or after the institution of any proceeding, be compounded by a Securities Appellate Tribunal or a court before which such proceedings are pending. **22B. Power to grant immunity.—(1) The Central Government may, on recommendation by the** Board, if the Central Government is satisfied, that any person, who is alleged to have violated any of the provisions of this Act or the rules or the regulations made thereunder, has made a full and true disclosure in respect of alleged violation, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act, or the rules or the regulations made thereunder or also from the imposition of any penalty under this Act with respect to the alleged violation: Provided that no such immunity shall be granted by the Central Government in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of application for grant of such immunity: Provided further that recommendation of the Board under this sub-section shall not be binding upon the Central Government. (2) An immunity granted to a person under sub-section (1) may, at any time, be withdrawn by the Central Government, if it is satisfied that such person had, in the course of the proceedings, not complied with the condition on which the immunity was granted or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the contravention and shall also 1. Subs. by Act 13 of 2018, s. 202, for “Offences by companies” (w.e.f. 8-3-2019). 2. Subs. by s. 202, ibid., for “an offence under this Act” (w.e.f. 8-3-2019). 3. Subs. by s. 202, ibid., for “offence” (w.e.f. 8-3-2019). 4. Subs. by Act 1 of 2005, s. 19, for section 22 (w.e.f. 12-10-2004). 5. Sub-section (2) omitted by Act 27 of 2014, s. 52 (w.e.f. 18-7-2013). 11 ----- become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted.] **1[22C. Establishment of Special Courts.—(1) The Central Government may, for the purpose of** providing speedy trial of offences under this Act, by notification, establish or designate as many Special Courts as may be necessary. (2) A Special Court shall consist of a single judge who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working. (3) A person shall not be qualified for appointment as a judge of a Special Court unless he is, immediately before such appointment, holding the office of a Sessions Judge or an Additional Sessions Judge, as the case may be. **22D. Offences triable by Special Courts.—Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), all offences under this Act committed prior to the date of commencement of the Securities Laws (Amendment) Act, 2014 (27 of 2014) or on or after the date of such commencement, shall be taken cognizance of and tried by the Special Court established for the area in which the offence is committed or where there are more Special Courts than one for such area, by such one of them as may be specified in this behalf by the High Court concerned. **22E. Appeal and revision.—The High Court may exercise, so far as may be applicable, all the** powers conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974) on a High Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court. **22F. Application of Code to proceedings before Special Court.—(1) Save as otherwise provided in** this Act, the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply to the proceedings before a Special Court and for the purposes of the said provisions, the Special Court shall be deemed to be a Court of Session and the person conducting prosecution before a Special Court shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal Procedure, 1973. (2) The person conducting prosecution referred to in sub-section (1) should have been in practice as an advocate for not less than seven years or should have held a post, for a period of not less than seven years, under the Union or a State, requiring special knowledge of law. **22G. Transitional provisions.—Any offence committed under this Act, which is triable by a Special** Court shall, until a Special Court is established, be taken cognizance of and tried by a Court of Session exercising jurisdiction over the area, notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974): Provided that nothing contained in this section shall affect the powers of the High Court under section 407 of the Code to transfer any case or class of cases taken cognizance by a Court of Session under this section.] **23. Appeals.—(1) Any person aggrieved by [2][an order of the Board made before the commencement** of the Securities Laws (Second Amendment) Act, 1999 (32 of 1999)] under this Act, or the regulations made thereunder may prefer an appeal to the Central Government within such time as may be prescribed. (2) No appeal shall be admitted if it is preferred after the expiry of the period prescribed therefor: Provided that an appeal may be admitted after the expiry of the period prescribed therefor if the appellant satisfies the Central Government that he had sufficient cause for not preferring the appeal within the prescribed period. (3) Every appeal made under this section shall be made in such form and shall be accompanied by a copy of the order appealed against and by such fees as may be prescribed. 1. Ins. by Act 27 of 2014, s. 53 (w.e.f. 18-7-2013). 2. Subs. by Act 32 of 1999, s. 14, for “an order of the Board made” (w.e.f.16-12-1999). 12 ----- (4) The procedure for disposing of an appeal shall be such as may be prescribed: Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of being heard. **1[23A. Appeal to Securities Appellate Tribunal.—(1) Save as provided in sub-section (2), any** person aggrieved by an order of the Board made, on and after the commencement of the Securities Laws (Second Amendment) Act, 1999 (32 of 1999), under this Act, or the regulations made thereunder, 2[or by an order made by an adjudicating officer under this Act] may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in the matter. 3* - - - (3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order made by the Board is received by the person referred to in sub-section (1) and it shall be in such form and be accompanied by such fees as may be prescribed: Provided that the Securities Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (4) On receipt of an appeal under sub-section (1), the Securities Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (5) The Securities Appellate Tribunal shall send a copy of every order made by it to the Board and parties to the appeal. (6) The appeal filed before the Securities Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal. **23B. Procedure and powers of Securities Appellate Tribunal.—(1) The Securities Appellate** Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules, the Securities Appellate Tribunal shall have powers to regulate their own procedure including the places at which they shall have their sittings. (2) The Securities Appellate Tribunal shall have, for the purpose of discharging their functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) reviewing its decisions; (f) dismissing an application for default or deciding it ex parte; (g) setting aside any order of dismissal of any application for default or any order passed by it _ex parte; and_ (h) any other matter which may be prescribed. (3) Every proceeding before the Securities Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian 1. Ins. by Act 32 of 1999, s. 15 (w.e.f. 16-12-1999). 2. Ins. by Act 1 of 2005, s. 20 (w.e.f. 12-10-2004). 3. Sub-section (2) omitted by Act 27 of 2014, s. 54 (w.e.f 18-7-2013). 13 ----- Penal Code (45 of 1860) and the Securities Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **23C. Right to legal representation.—The appellant may either appear in person or authorise one or** more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Securities Appellate Tribunal. _Explanation.—For the purposes of this section,—_ (a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (b) “company secretary” means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (c) “cost accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (d) “legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice. **23D. Limitation.—The provisions of the Limitation Act, 1963 (36 of 1963) shall, as far as may be,** apply to an appeal made to a Securities Appellate Tribunal. **23E. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any** suit or proceeding in respect of any matter which a Securities Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **1[23F. Appeal to Supreme Court.—Any person aggrieved by any decision or order of the Securities** Appellate Tribunal may file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Securities Appellate Tribunal to him on any question of law arising out of such order: Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.]] 2 [23G. Powers of Board not to apply to International Financial Services Centre.— Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Board under this Act,— (a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 of 2005); (b) shall be exercisable by the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, in so far as regulation of financial products, financial services and financial institutions that are permitted in the International Financial Services Centres are concerned.] **24. Power of Central Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 3[(a) the manner of inquiry under sub-section (1) of section 19H; (aa) the time within which an appeal may be preferred under sub-section (1) of section 23;] (b) the form in which an appeal may be preferred under sub-section (3) of section 23 and the fees payable in respect of such appeal; (c) the procedure for disposing of an appeal under sub-section (4) of section 23; 1. Subs. by Act 1 of 2005, s. 21, for section 23F (w.e.f. 12-10-2004). 2. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). 3. Subs. by Act 1 of 2005, s. 22, for clause (a) (w.e.f. 12-10-2004). 14 ----- 1[(d) the form in which an appeal may be filed before the Securities Appellate Tribunal under section 23A and the fees payable in respect of such appeal.] **25. Power of Board to make regulations.—(1) Without prejudice to the provisions contained in** section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board may, by notification in the Official Gazette, make regulations consistent with the provisions of this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for— (a) the form in which record is to be maintained under clause (i) of sub-section (1) of section 2; (b) the form in which the certificate of commencement of business shall be issued under sub-section (2) of section 3; (c) the manner in which the certificate of security shall be surrendered under sub-section (1) of section 6; (d) the manner of creating a pledge or hypothecation in respect of security owned by a beneficial owner under sub-section (1) of section 12; (e) the conditions and the fees payable with respect to the issue of certificate of securities under sub-section (3) of section 14; (f) the rights and obligations of the depositories, participants and the issuers under sub-section (1) of section 17; (g) the eligibility criteria for admission of securities into the depository under sub-section (2) of section 17; 2[(h) the terms determined by the Board for settlement of proceedings under sub-section (2) of section 19-IA; (i) any other matter which is required to be, or may be, specified by regulations or in respect of which provision to be made by regulations.] **26. Power of depositories to make bye-laws.—(1) A depository shall, with the previous approval of** the Board, make bye-laws consistent with the provisions of this Act and the regulations. (2) In particular, and without prejudice to the generality of the foregoing power, such bye-laws shall provide for— (a) the eligibility criteria for admission and removal of securities in the depository; (b) the conditions subject to which the securities shall be dealt with; (c) the eligibility criteria for admission of any person as a participant; (d) the manner and procedure for dematerialisation of securities; (e) the procedure for transactions within the depository; (f) the manner in which securities shall be dealt with or withdrawn from a depository; (g) the procedure for ensuring safeguards to protect the interests of participants and beneficial owners; (h) the conditions of admission into and withdrawal from a participant by a beneficial owner; (i) the procedure for conveying information to the participants and beneficial owners on dividend declaration, shareholder meetings and other matters of interest to the beneficial owners; (j) the manner of distribution of dividends, interest and monetary benefits received from the company among beneficial owners; 1. Ins. by Act 32 of 1999, s. 16 (w.e.f. 16-12-1999). 2. Ins. by Act 27 of 2014, s. 55 (w.e.f. 18-7-2013). 15 ----- (k) the manner of creating pledge or hypothecation in respect of securities held with a depository; (l) _inter se_ rights and obligations among the depository, issuer, participants and beneficial owners; (m) the manner and the periodicity of furnishing information to the Board, issuer and other persons; (n) the procedure for resolving disputes involving depository, issuer, company or a beneficial owner; (o) the procedure for proceeding against the participant committing breach of the regulations and provisions for suspension and expulsion of participants from the depository and cancellation of agreements entered with the depository; (p) the internal control standards including procedure for auditing, reviewing and monitoring. (3) Where the Board considers it expedient so to do, it may, by order in writing, direct a depository to make any bye-laws or to amend or revoke any bye-laws already made within such period as it may specify in this behalf. (4) If the depository fails or neglects to comply with such order within the specified period, the Board may make the bye-laws or amend or revoke the bye-laws made either in the form specified in the order or with such modifications thereof as the Board thinks fit. **27. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **28. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, any other law for the time being in force relating to the holding and transfer of securities. **29. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act,** the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **30. [Amendments to certain enactments.]** _Rep. by the Repealing and Amending Act, 2001_ (30 of 2001), s. 2 and the First Schedule (w.e.f. 3-9-2001). **1[30A. Validation of certain acts.— Any act or thing done or purporting to have been done under the** principal Act, in respect of settlement of administrative and civil proceedings, shall, for all purposes, be deemed to be valid and effective as if the amendments made to the principal Act had been in force at all material times.] **31. Repeal and saving.—(1) The Depositories (Third) Ordinance, 1996 (Ord. 28 of 1996) is hereby** repealed. 1. Ins. by Act 27 of 2014, s. 56 (w.e.f. 18-7-2013). 16 ----- (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. [THE SCHEDULE.]—Rep. by the Repealing and Amending Act, 2001 (30 of 2001), s. 2 and the First _Schedule (w.e.f. 3-9-2001)._ 17 -----
16-Aug-1996
26
The Arbitration and Conciliation Act, 1996
https://www.indiacode.nic.in/bitstream/123456789/1978/3/a1996-26.pdf
central
PREAMBLE SECTIONS. # THE ARBITRATION AND CONCILIATION ACT, 1996 _______ ARRANGEMENT OF SECTIONS _______ PRELIMINARY 1. Short title, extent and commencement. PART I ARBITRATION CHAPTER I _General provisions_ 2. Definitions. 3. Receipt of written communications. 4. Waiver of right to object. 5. Extent of judicial intervention. 6. Administrative assistance. CHAPTER II _Arbitration agreement_ 7. Arbitration agreement. 8. Power to refer parties to arbitration where there is an arbitration agreement. 9. Interim measures, etc., by Court. CHAPTER III _Composition of arbitral tribunal_ 10. Number of arbitrators. 11. Appointment of arbitrators. 11A. Power of Central Government to amend Fourth Schedule. 12. Grounds for challenge. 13. Challenge procedure. 14. Failure or impossibility to act. 15. Termination of mandate and substitution of arbitrator. CHAPTER IV _Jurisdiction of arbitral tribunals_ 16. Competence of arbitral tribunal to rule on its jurisdiction. 17. Interim measures ordered by arbitral tribunal. CHAPTER V _Conduct of arbitral proceedings_ 18. Equal treatment of parties. 19. Determination of rules of procedure. 20. Place of arbitration. 1 ----- SECTIONS. 21. Commencement of arbitral proceedings. 22. Language. 23. Statements of claim and defence. 24. Hearings and written proceedings. 25. Default of a party. 26. [Omitted.]. 27. Court assistance in taking evidence. CHAPTER VI _Making of arbitral award and termination of proceedings_ 28. Rules applicable to substance of dispute. 29. Decision making by panel of arbitrators. 29A.Time limit for arbitral award. 29B. Fast track procedure. 30. Settlement. 31. Form and contents of arbitral award. 31A. Regime for costs. 32. Termination of proceedings. 33. Correction and interpretation of award; additional award. CHAPTER VII _Recourse against arbitral award_ 34. Application for setting aside arbitral awards. CHAPTER VIII _Finality and enforcement of arbitral awards_ 35. Finality of arbitral awards. 36. Enforcement. CHAPTER IX _Appeals_ 37. Appealable orders. CHAPTER X _Miscellaneous_ 38. Deposits. 39. Lien on arbitral award and deposits as to costs. 40. Arbitration agreement not to be discharged by death of party thereto. 41. Provisions in case of insolvency. 42. Jurisdiction. 42A. Confidentiality of information. 42B. Protection of action taken in good faith. 43. Limitations. # PART IA ARBITRATION COUNCIL OF INDIA 43A. Definitions. 43B. Establishment and incorporation of Arbitration Council of India. 43C. Composition of Council. 43D. Duties and functions of Council. 43E. Vacancies, etc., not to invalidate proceedings of Council. 43F. Resignation of Members. 2 ----- SECTIONS. 43G. Removal of Member. 43H. Appointment of experts and constitution of Committees thereof. 43-I. General norms for grading of arbitral institutions. 43J. Norms for accreditation of arbitrators. 43K. Depository of awards. 43L. Power to make regulations by Council. 43M. Chief Executive Officer. PART II ENFORCEMENT OF CERTAIN FOREIGN AWARDS CHAPTER I _New York Convention Awards_ 44. Definition. 45. Power of judicial authority to refer parties to arbitration. 46. When foreign award binding. 47. Evidence. 48. Conditions for enforcement of foreign awards. 49. Enforcement of foreign awards. 50. Appealable orders. 51. Saving. 52. Chapter II not to apply. CHAPTER II _Geneva Convention Awards_ 53. Interpretation. 54. Power of judicial authority to refer parties to arbitration. 55. Foreign awards when binding. 56. Evidence. 57. Conditions for enforcement of foreign awards. 58. Enforcement of foreign awards. 59. Appealable orders. 60. Savings. PART III CONCILIATION 61. Application and scope. 62. Commencement of conciliation proceedings. 63. Number of conciliators. 64. Appointment of conciliators. 65. Submission of statements to conciliator. 66. Conciliator not bound by certain enactments. 67. Role of conciliator. 68. Administrative assistance. 69. Communication between conciliator and parties. 70. Disclosure of information. 71. Co-operation of parties with conciliator. 72. Suggestions by parties for settlement of dispute. 73. Settlement agreement. 74. Status and effect of settlement agreement. 75. Confidentiality. 3 ----- SECTIONS 76. Termination of conciliation proceedings. 77. Resort to arbitral or judicial proceedings. 78. Costs. 79. Deposits. 80. Role of conciliator in other proceedings. 81. Admissibility of evidence in other proceedings. PART IV SUPPLEMENTARY PROVISIONS 82. Power of High Court to make rules. 83. Removal of difficulties. 84. Power to make rules. 85. Repeal and savings. 86. Repeal and saving. 87. Effect of arbitral and related court proceedings commenced prior to 23rd October, 2015. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. THE FOURTH SCHEDULE. THE FIFTH SCHEDULE. THE SIXTH SCHEDULE. THE SEVENTH SCHEDULE. THE EIGHTH SCHEDULE APPENDIX. 4 ----- # THE ARBITRATION AND CONCILIATION ACT, 1996 ACT No. 26 OF 1996 [16th August, 1996.] # An Act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto. **Preamble.—WHEREAS the United Nations Commission on International Trade Law (UNCITRAL)** has adopted the UNCITRAL Model Law on International Commercial Arbitration in 1985; ANDWHEREAS the General Assembly of the United Nations has recommended that all countries give due consideration to the said Model Law, in view of the desirability of uniformity of the law of arbitral procedures and the specific needs of international commercial arbitration practice; ANDWHEREAS the UNCITRAL has adopted the UNCITRAL Conciliation Rules in 1980; ANDWHEREAS the General Assembly of the United Nations has recommended the use of the said Rules in cases where a dispute arises in the context of international commercial relations and the parties seek an amicable settlement of that dispute by recourse to conciliation; ANDWHEREAS the said Model Law and Rules make significant contribution to the establishment of a unified legal framework for the fair and efficient settlement of disputes arising in international commercial relations; ANDWHEREAS it is expedient to make law respecting arbitration and conciliation, taking into account the aforesaid Model Law and Rules; BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:— PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Arbitration and** Conciliation Act, 1996. (2) It extends to the whole of India: 1* - - - (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. PART I ARBITRATION CHAPTER I _General provisions_ **2. Definitions.—(1) In this Part, unless the context otherwise requires,—** (a) “arbitration” means any arbitration whether or not administered by permanent arbitral institution; (b) “arbitration agreement” means an agreement referred to in section 7; 1. The proviso and Explanation omitted by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, _vide_ notification No. S.O. 1123(E) dated (18-3-2020) and _vide Union Territory of Ladakh Reorganisation (Adaptation of_ Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020). 2. 22nd August, 1996, vide notification No. G.S.R 375(E), dated 22nd August, 1996, see Gazette of India, Extraordinary, Part II, sec. 3(i). 5 ----- (c) “arbitral award” includes an interim award; (d) “arbitral tribunal” means a sole arbitrator or a panel of arbitrators; 1[(e) “Court” means— (i) in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-matter of a suit, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes; (ii) in the case of international commercial arbitration, the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-matter of a suit, and in other cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to that High Court;] (f) “international commercial arbitration” means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India and where at least one of the parties is— (i) an individual who is a national of, or habitually resident in, any country other than India; or (ii) a body corporate which is incorporated in any country other than India; or (iii) [2]*** an association or a body of individuals whose central management and control is exercised in any country other than India; or (iv) the Government of a foreign country; (g) “legal representative” means a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased, and, where a party acts in a representative character, the person on whom the estate devolves on the death of the party so acting; (h) “party” means a party to an arbitration agreement. (2) This Part shall apply where the place of arbitration is in India: 3[Provided that subject to an agreement to the contrary, the provisions of sections 9, 27 and clause (a) of sub-section (1) and sub-section (3) of section37 shall also apply to international commercial arbitration, even if the place of arbitration is outside India, and an arbitral award made or to be made in such place is enforceable and recognised under the provisions of Part II of this Act.] (3) This Part shall not affect any other law for the time being in force by virtue of which certain disputes may not be submitted to arbitration. (4) This Part except sub-section (1) of section 40, sections 41 and 43 shall apply to every arbitration under any other enactment for the time being in force, as if the arbitration were pursuant to an arbitration agreement and as if that other enactment were an arbitration agreement, except in so far as the provisions of this Part are inconsistent with that other enactment or with any rules made thereunder. (5) Subject to the provisions of sub-section (4), and save in so far as is otherwise provided by any law for the time being in force or in any agreement in force between India and any other country or countries, this Part shall apply to all arbitrations and to all proceedings relating thereto. (6) Where this Part, except section 28, leaves the parties free to determine a certain issue, that freedom shall include the right of the parties to authorise any person including an institution, to determine that issue. 1. Subs. by Act 3 of 2016, s. 2, for clause (e) (w.e.f. 23-10-2015). 2. The words “a company or” omitted by s. 2, ibid. (w.e.f. 23-10-2015). 3. Ins. by s. 2, ibid. (w.e. f. 23-10-2015). 6 ----- (7) An arbitral award made under this Part shall be considered as a domestic award. (8) Where this Part— (a) refers to the fact that the parties have agreed or that they may agree, or (b) in any other way refers to an agreement of the parties, that agreement shall include any arbitration rules referred to in that agreement. (9) Where this Part, other than clause (a) of section 25 or clause (a) of sub-section (2) of section 32, refers to a claim, it shall also apply to a counterclaim, and where it refers to a defence, it shall also apply to a defence to that counterclaim. **3. Receipt of written communications.—(1) Unless otherwise agreed by the parties,—** (a) any written communication is deemed to have been received if it is delivered to the addressee personally or at his place of business, habitual residence or mailing address, and (b) if none of the places referred to in clause (a) can be found after making a reasonable inquiry, a written communication is deemed to have been received if it is sent to the addressee's last known place of business, habitual residence or mailing address by registered letter or by any other means which provides a record of the attempt to deliver it. (2) The communication is deemed to have been received on the day it is so delivered. (3) This section does not apply to written communications in respect of proceedings of any judicial authority. **4. Waiver of right to object.—A party who knows that—** (a) any provision of this Part from which the parties may derogate, or (b) any requirement under the arbitration agreement, has not been complied with and yet proceeds with the arbitration without stating his objection to such non-compliance without undue delay or, if a time limit is provided for stating that objection, within that period of time, shall be deemed to have waived his right to so object. **5. Extent of judicial intervention.—Notwithstanding anything contained in any other law for the** time being in force, in matters governed by this Part, no judicial authority shall intervene except where so provided in this Part. **6. Administrative assistance.—In order to facilitate the conduct of the arbitral proceedings, the** parties, or the arbitral tribunal with the consent of the parties, may arrange for administrative assistance by a suitable institution or person. CHAPTER II _Arbitration agreement_ **7. Arbitration agreement.—(1) In this Part, “arbitration agreement” means an agreement by the** parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. (2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. (3) An arbitration agreement shall be in writing. (4) An arbitration agreement is in writing if it is contained in— (a) a document signed by the parties; (b) an exchange of letters, telex, telegrams or other means of telecommunication [1][including communication through electronic means] which provide a record of the agreement; or 1. Ins. by Act 3 of 2016, s. 3 (w. e. f. 23-10-2015). 7 ----- (c) an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other. (5) The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract. **8. Power to refer parties to arbitration where there is an arbitration agreement.—[1][(1)A judicial** authority, before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party to the arbitration agreement or any person claiming through or under him, so applies not later than the date of submitting his first statement on the substance of the dispute, then, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists.] (2) The application referred to in sub-section (1) shall not be entertained unless it is accompanied by the original arbitration agreement or a duly certified copy thereof: 2[Provided that where the original arbitration agreement or a certified copy thereof is not available with the party applying for reference to arbitration under sub-section (1), and the said agreement or certified copy is retained by the other party to that agreement, then, the party so applying shall file such application along with a copy of the arbitration agreement and a petition praying the Court to call upon the other party to produce the original arbitration agreement or its duly certified copy before that Court.] (3) Notwithstanding that an application has been made under sub-section (1) and that the issue is pending before the judicial authority, an arbitration may be commenced or continued and an arbitral award made. **STATE AMENDMENT** **Jammu and Kashmir and Ladakh (UTs).—** **Insertion of section 8A and section 8B.—After section 8, insert the following sections, namely:–** “8A. Power of the court, seized of petitions under sections 9 or 11 of the Act, to refer the **dispute to Mediation or Conciliation.—(1) If during the pendency of petitions under sections 9 or** 11 of the Act, it appears to the court, that there exists elements of a settlement which may be acceptable to the parties, the court may, with the consent of parties, refer the parties, for resolution of their disputes, to, (a) mediation; or (b) conciliation. (2) The procedure for reference of a dispute to mediation is as under– (a) where a dispute has been referred for resolution by recourse to mediation, the procedure framed under that Act shall apply; (b) in case of a successful resolution of the dispute, the Mediator shall immediately forward the mediated settlement to the referral court; (c) on receipt of the mediated settlement, the referral court shall independently apply its judicial mind and record a satisfaction that the mediated settlement is genuine, lawful, voluntary, entered into without coercion, undue influence, fraud or misrepresentation and that there is no other legal impediment in accepting the same; (d) the court shall record a statement on oath of the parties, or their authorised representatives, affirming the mediated settlement as well as a clear undertaking of the parties to abide by the terms of the settlement; 1. Subs. by Act 3 of 2016, s. 4, for sub-section (1) (w. e. f. 23-10-2015). 2. Ins. by s. 4, ibid. (w.e.f. 23-10-2015). 8 ----- (e) if satisfied, the court shall pass an order in terms of the settlement; (f) if the main petition, in which the reference was made is pending, it shall be disposed of by the referral court in terms thereof; (g) if the main petition, in which the reference was made stands disposed of, the mediated settlement and the matter shall be listed before the referral court, which shall pass orders in accordance with clauses (iii), (iv) and (v); (h) such a mediated settlement, shall have the same status and effect as an arbitral award and may be enforced in the manner specified under section 36 of the Act. (3) With respect to reference of a dispute to conciliation, the provisions of Part II of this Act shall apply as if the conciliation proceedings were initiated by the parties under the relevant provision of this Act. **8B. Power of the court, seized of matters under sections 34 or 37 of the Act, to refer the** **dispute to Mediation or Conciliation.—(1) If during the pendency of a petition under section 34 or** an appeal under section 37 of the Act, it appears to the court, that there exists elements of a settlement which may be acceptable to the parties, the court may, with the consent of parties, refer the parties, for resolution of their disputes, to:– (a) mediation; or (b) conciliation. (2) The procedure for reference of a dispute to mediation is as under: (a) where a dispute has been referred for resolution by recourse to mediation, the procedure framed under the Act shall apply; (b) in case of a successful resolution of the dispute, the Mediator shall immediately forward the mediated settlement to the referral court; (c) on receipt of the mediated settlement, the referral court shall independently apply its judicial mind and record a satisfaction that the mediated settlement is genuine, lawful, voluntary, entered into without coercion, undue influence, fraud or misrepresentation and that there is no other legal impediment in accepting the same; (d) the court shall record a statement on oath of the parties, or their authorized representatives, affirming the mediated settlement, a clear undertaking of the parties to abide by the terms of the settlement as well as statement to the above effect; (e) if satisfied, the court shall pass an order in terms of the settlement; (f) if the main petition, in which the reference was made is pending, it shall be disposed of by the referral court in terms thereof; (g) if the main petition, in which the reference was made stands disposed of, the mediated settlement and the matter shall be listed before the referral court, which shall pass orders in accordance with clauses (iii), (iv) and (v); (h) such a mediated settlement, shall have the status of a modified arbitral award and may be enforced in the manner specified under section 36 of the Act. (3) With respect to reference of a dispute to conciliation, the provisions of Part III of the Act, shall apply as if the conciliation proceedings were initiated by the parties under the relevant provision of this Act.” 9 ----- [Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws) _Order, 2020,_ _notification_ _No. S.O. 1123(E) dated (18-3-2020)_ and Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O.3774(E), dated (23-10-2020).] **9. Interim measures, etc., by Court.—[1][(1)]A party may, before or during arbitral proceedings or at** any time after the making of the arbitral award but before it is enforced in accordance with section 36, apply to a court— (i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral proceedings; or (ii) for an interim measure of protection in respect of any of the following matters, namely:— (a) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement; (b) securing the amount in dispute in the arbitration; (c) the detention, preservation or inspection of any property or thing which is the subject matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence; (d) interim injunction or the appointment of a receiver; (e) such other interim measure of protection as may appear to the Court to be just and convenient, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it. 2[(2) Where, before the commencement of the arbitral proceedings, a Court passes an order for any interim measure of protection under sub-section (1), the arbitral proceedings shall be commenced within a period of ninety days from the date of such order or within such further time as the Court may determine. (3) Once the arbitral tribunal has been constituted, the Court shall not entertain an application under sub-section (1), unless the Court finds that circumstances exist which may not render the remedy provided under section 17 efficacious.] CHAPTER III _Composition of arbitral tribunal_ **10. Number of arbitrators.—(1) The parties are free to determine the number of arbitrators,** provided that such number shall not be an even number. (2) Failing the determination referred to in sub-section (1), the arbitral tribunal shall consist of a sole arbitrator. **11. Appointment of arbitrators.—(1) A person of any nationality may be an arbitrator, unless** otherwise agreed by the parties. (2) Subject to sub-section (6), the parties are free to agree on a procedure for appointing the arbitrator or arbitrators. (3) Failing any agreement referred to in sub-section (2), in an arbitration with three arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator. (4) If the appointment procedure in sub-section (3) applies and— (a) a party fails to appoint an arbitrator within thirty days from the receipt of a request to do so from the other party; or 1. Section 9 shall be renumbered as sub-section (1) thereof by s. 5, Act 3 of 2016 (w.e.f. 23-10-2015). 2. Ins. by s. 5, ibid. (w.e.f. 23-10-2015). 10 ----- (b) the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date of their appointment, the appointment shall be made, upon request of a party, by [1][the Supreme Court or, as the case may be, the High Court or any person or institution designated by such Court]; (5) Failing any agreement referred to in sub-section (2), in an arbitration with a sole arbitrator, if the parties fail to agree on the arbitrator within thirty days from receipt of a request by one party from the other party to so agree the appointment shall be made, upon request of a party, by [1][the Supreme Court or, as the case may be, the High Court or any person or institution designated by such Court]. (6) Where, under an appointment procedure agreed upon by the parties,— (a) a party fails to act as required under that procedure; or (b) the parties, or the two appointed arbitrators, fail to reach an agreement expected of them under that procedure; or (c) a person, including an institution, fails to perform any function entrusted to him or it under that procedure, a party may request [1][the Supreme Court or, as the case may be, the High Court or any person or institution designated by such Court]to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment. 2[(6A) The Supreme Court or, as the case may be, the High Court, while considering any application under sub-section (4) or sub-section (5) or sub-section (6), shall, notwithstanding any judgment, decree or order of any Court, confine to the examination of the existence of an arbitration agreement. (6B) The designation of any person or institution by the Supreme Court or, as the case may be, the High Court, for the purposes of this section shall not be regarded as a delegation of judicial power by the Supreme Court or the High Court.] (7) A decision on a matter entrusted by sub-section (4) or sub-section (5) or sub-section (6) to [3][the Supreme Court or, as the case may be, the High Court or the person or institution designated by such Court is final and no appeal including Letters Patent Appeal shall lie against such decision]. 4[(8) The Supreme Court or, as the case may be, the High Court or the person or institution designated by such Court, before appointing an arbitrator, shall seek a disclosure in writing from the prospective arbitrator in terms of sub-section (1) of section 12, and have due regard to— (a) any qualifications required for the arbitrator by the agreement of the parties; and (b) the contents of the disclosure and other considerations as are likely to secure the appointment of an independent and impartial arbitrator.] (9) In the case of appointment of sole or third arbitrator in an international commercial arbitration, 5[the Supreme Court or the person or institution designated by that Court] may appoint an arbitrator of a nationality other than the nationalities of the parties where the parties belong to different nationalities. 6[(10) The Supreme Court or, as the case may be, the High Court, may make such scheme as the said Court may deem appropriate for dealing with matters entrusted by sub-section (4) or sub-section (5) or sub-section (6), to it.] (11) Where more than one request has been made under sub-section (4) or sub-section (5) or sub-section (6) to the Chief Justices of different High Courts or their designates, [7][different High Courts 1. Subs. by Act 3 of 2016, s. 6, for “the Chief Justice or any person or institution designated by him” (w. e. f. 23-10-2015). 2. Ins. by s. 6, ibid. (w.e.f. 23-10-2015). 3. Subs. by s. 6, ibid., for “the Chief Justice or the person or institution designated by him is final” (w.e.f. 23-10-2015). 4. Subs. by s. 6, ibid., for sub-section (8) (w.e.f. 23-10-2015). 5. Subs. by s. 6, ibid., for “the Chief Justice of India of India or the person or institution designated by him” (w.e.f. 23-10-2015). 6. Subs. by s. 6, ibid., for sub-section (10) (w.e.f. 23-10-2015). 7. Subs. by s. 6, ibid., for “the Chief Justices of different High Courts or their designates, the Chief Justice or his designate to whom the request has been first made” (w.e.f 23-10-2015). 11 ----- or their designates, the High Court or its designate to whom the request has been first made] under the relevant sub-section shall alone be competent to decide on the request. 1[(12) (a) Where the matters referred to in sub-sections (4), (5), (6), (7), (8) and sub-section (10) arise in an international commercial arbitration, the reference to the “Supreme Court or, as the case may be, the High Court” in those sub-sections shall be construed as a reference to the “Supreme Court”; and (b) Where the matters referred to in sub-sections (4), (5), (6), (7), (8) and sub-section (10) arise in any other arbitration, the reference to “the Supreme Court or, as the case may be, the High Court” in those sub-sections shall be construed as a reference to the “High Court” within whose local limits the principal Civil Court referred to in clause (e) of sub-section (1) of section 2 is situate, and where the High Court itself is the Court referred to in that clause, to that High Court.] 2[(13) An application made under this section for appointment of an arbitrator or arbitrators shall be disposed of by the Supreme Court or the High Court or the person or institution designated by such Court, as the case maybe, as expeditiously as possible and an endeavour shall be made to dispose of the matter within a period of sixty days from the date of service of notice on the opposite party. (14) For the purpose of determination of the fees of the arbitral tribunal and the manner of its payment to the arbitral tribunal, the High Court may frame such rules as may be necessary, after taking into consideration the rates specified in the Fourth Schedule. _Explanation.—For the removal of doubts, it is hereby clarified that this sub-section shall not apply to_ international commercial arbitration and in arbitrations (other than international commercial arbitration) in case where parties have agreed for determination of fees as per the rules of an arbitral institution.] **3[11A. Power of Central Government to amend Fourth Schedule.—(1) If the Central Government** is satisfied that it is necessary or expedient so to do, it may, by notification in the Official Gazette, amend the Fourth Schedule and thereupon the Fourth Schedule shall be deemed to have been amended accordingly. (2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by the both Houses of Parliament.] **12. Grounds for challenge.—[4][(1) When a person is approached in connection with his possible** appointment as an arbitrator, he shall disclose in writing any circumstances,— (a) such as the existence either direct or indirect, of any past or present relationship with or interest in any of the parties or in relation to the subject-matter in dispute, whether financial, business, professional or other kind, which is likely to give rise to justifiable doubts as to his independence or impartiality; and (b) which are likely to affect his ability to devote sufficient time to the arbitration and in particular his ability to complete the entire arbitration within a period of twelve months. _Explanation1.—The grounds stated in the Fifth Schedule shall guide in determining whether_ circumstances exist which give rise to justifiable doubts as to the independence or impartiality of an arbitrator. _Explanation_ 2.—The disclosure shall be made by such person in the form specified in the Sixth Schedule.] (2) An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall, without delay, disclose to the parties in writing any circumstances referred to in sub-section (1) unless they have already been informed of them by him. 1. Subs. by Act 3 of 2016, s. 6, for sub-section (12) (w.e.f. 23-10-2015). 2. Ins. by s. 6, ibid.(w.e.f. 23-10-2015). 3. Ins. by s. 7, ibid. (w.e.f. 23-10-2015). 4. Subs. by s. 8, ibid., for sub-section (1) (w.e.f. 23-10-2015). 12 ----- (3) An arbitrator may be challenged only if— (a) circumstances exist that give rise to justifiable doubts as to his independence or impartiality, or (b) he does not possess the qualifications agreed to by the parties. (4) A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made. 1[(5) Notwithstanding any prior agreement to the contrary, any person whose relationship, with the parties or counsel or the subject-matter of the dispute, falls under any of the categories specified in the Seventh Schedule shall be ineligible to be appointed as an arbitrator: Provided that parties may, subsequent to disputes having arisen between them, waive the applicability of this sub-section by an express agreement in writing.] **13. Challenge procedure.—(1) Subject to sub-section (4), the parties are free to agree on a procedure** for challenging an arbitrator. (2) Failing any agreement referred to in sub-section (1), a party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or after becoming aware of any circumstances referred to in sub-section (3) of section 12, send a written statement of the reasons for the challenge to the arbitral tribunal. (3) Unless the arbitrator challenged under sub-section (2) withdraws from his office or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge. (4) If a challenge under any procedure agreed upon by the parties or under the procedure under sub section (2) is not successful, the arbitral tribunal shall continue the arbitral proceedings and make an arbitral award. (5) Where an arbitral award is made under sub-section (4), the party challenging the arbitrator may make an application for setting aside such an arbitral award in accordance with section 34. (6) Where an arbitral award is set aside on an application made under sub-section (5), the Court may decide as to whether the arbitrator who is challenged is entitled to any fees. **14. Failure or impossibility to act.—(1) [2][The mandate of an arbitrator shall terminate and he shall** be substituted by another arbitrator, if]— (a) he becomes de jure or de facto unable to perform his functions or for other reasons fails to act without undue delay; and (b) he withdraws from his office or the parties agree to the termination of his mandate. (2) If a controversy remains concerning any of the grounds referred to in clause (a) of sub-section (1), a party may, unless otherwise agreed by the parties, apply to the Court to decide on the termination of the mandate. (3) If, under this section or sub-section (3) of section 13, an arbitrator withdraws from his office or a party agrees to the termination of the mandate of an arbitrator, it shall not imply acceptance of the validity of any ground referred to in this section or sub-section (3) of section 12. **15. Termination of mandate and substitution of arbitrator.—(1) In addition to the circumstances** referred to in section 13 or section 14,the mandate of an arbitrator shall terminate— (a) where he withdraws from office for any reason; or (b) by or pursuant to agreement of the parties. 1. Ins. by Act 3 of 2016, s. 8 (w.e.f. 23-10-2015). 2. Subs. by s. 9, ibid., for “The mandate of an arbitrator shall terminate if” (w.e.f. 23-10-2015). 13 ----- (2) Where the mandate of an arbitrator terminates, a substitute arbitrator shall be appointed according to the rules that were applicable to the appointment of the arbitrator being replaced. (3) Unless otherwise agreed by the parties, where an arbitrator is replaced under sub-section (2), any hearings previously held maybe repeated at the discretion of the arbitral tribunal. (4) Unless otherwise agreed by the parties, an order or ruling of the arbitral tribunal made prior to the replacement of an arbitrator under this section shall not be invalid solely because there has been a change in the composition of the arbitral tribunal. CHAPTER IV _Jurisdiction of arbitral tribunals_ **16. Competence of arbitral tribunal to rule on its jurisdiction.—(1) The arbitral tribunal may rule** on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the arbitration agreement, and for that purpose,— (a) an arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of the contract; and (b) a decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause. (2) A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than the submission of the statement of defence; however, a party shall not be precluded from raising such a plea merely because that he has appointed, or participated in the appointment of, an arbitrator. (3) A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings. (4) The arbitral tribunal may, in either of the cases referred to in sub-section (2) or sub-section (3), admit a later plea if it considers the delay justified. (5) The arbitral tribunal shall decide on a plea referred to in sub-section (2) or sub-section (3) and, where the arbitral tribunal takes a decision rejecting the plea, continue with the arbitral proceedings and make an arbitral award. (6) A party aggrieved by such an arbitral award may make an application for setting aside such an arbitral award in accordance with section 34. 1 [17. Interim measures ordered by arbitral tribunal.—(1) A party may, during the arbitral proceedings [2]***, apply to the arbitral tribunal— (i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral proceedings; or (ii) for an interim measure of protection in respect of any of the following matters, namely:— (a) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement; (b) securing the amount in dispute in the arbitration; (c) the detention, preservation or inspection of any property or thing which is the subject matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken, or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence; (d) interim injunction or the appointment of a receiver; 1. Subs. by Act 3 of 2016, s. 10, for section 17 (w.e.f. 23-10-2015). 2. The words and figures “or at any time after the making of the arbitral award but before it is enforced in accordance with section 36” omitted by Act 33 of 2019, s. 4 (w.e.f. 30-8-2019). 14 ----- (e) such other interim measure of protection as may appear to the arbitral tribunal to be just and convenient, and the arbitral tribunal shall have the same power for making orders, as the court has for the purpose of, and in relation to, any proceedings before it. (2) Subject to any orders passed in an appeal under section 37, any order issued by the arbitral tribunal under this section shall be deemed to be an order of the Court for all purposes and shall be enforceable under the Code of Civil Procedure,1908 (5 of 1908), in the same manner as if it were an order of the Court.] CHAPTER V _Conduct of arbitral proceedings_ **18. Equal treatment of parties.—The parties shall be treated with equality and each party shall be** given a full opportunity to present this case. **19. Determination of rules of procedure.—(1) The arbitral tribunal shall not be bound by the Code** of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872). (2) Subject to this Part, the parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting its proceedings. (3) Failing any agreement referred to in sub-section (2), the arbitral tribunal may, subject to this Part, conduct the proceedings in the manner it considers appropriate. (4) The power of the arbitral tribunal under sub-section (3) includes the power to determine the admissibility, relevance, materiality and weight of any evidence. **20. Place of arbitration.—(1) The parties are free to agree on the place of arbitration.** (2) Failing any agreement referred to in sub-section (1), the place of arbitration shall be determined by the arbitral tribunal having regard to the circumstances of the case, including the convenience of the parties. (3) Notwithstanding sub-section (1) or sub-section (2), the arbitral tribunal may, unless otherwise agreed by the parties, meet at anyplace it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of documents, goods or other property. **21. Commencement of arbitral proceedings.—Unless otherwise agreed by the parties, the arbitral** proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent. **22. Language.—(1) The parties are free to agree upon the language or languages to be used in the** arbitral proceedings. (2) Failing any agreement referred to in sub-section (1), the arbitral tribunal shall determine the language or languages to be used in the arbitral proceedings. (3) The agreement or determination, unless otherwise specified, shall apply to any written statement by a party, any hearing and any arbitral award, decision or other communication by the arbitral tribunal. (4) The arbitral tribunal may order that any documentary evidence shall be accompanied by a translation into the language or languages agreed upon by the parties or determined by the arbitral tribunal. **23. Statements of claim and defence.—(1) Within the period of time agreed upon by the parties or** determined by the arbitral tribunal, the claimant shall state the facts supporting his claim, the points at issue and the relief or remedy sought, and the respondent shall state his defence in respect of these particulars, unless the parties have otherwise agreed as to the required elements of those statements. (2) The parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit. 1[(2A) The respondent, in support of his case, may also submit a counterclaim or plead a set-off, which shall be adjudicated upon by the arbitral tribunal, if such counterclaim or set-off falls within the scope of the arbitration agreement.] 1. Ins. by Act 3 of 2016, s. 11 (w.e.f. 23-10-2015). 15 ----- (3) Unless otherwise agreed by the parties, either party may amend or supplement his claim or defence during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow the amendment or supplement having regard to the delay in making it. 1[(4) The statement of claim and defence under this section shall be completed within a period of six months from the date the arbitrator or all the arbitrators, as the case may be, received notice, in writing of their appointment.] **24. Hearings and written proceedings.—(1) Unless otherwise agreed by the parties, the arbitral** tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of documents and other materials: Provided that the arbitral tribunal shall hold oral hearings, at an appropriate stage of the proceedings, on a request by a party, unless the parties have agreed that no oral hearing shall be held: 2[Provided further that the arbitral tribunal shall, as far as possible, hold oral hearings for the presentation of evidence or for oral argument on day-to-day basis, and not grant any adjournments unless sufficient cause is made out, and may impose costs including exemplary costs on the party seeking adjournment without any sufficient cause.] (2) The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitral tribunal for the purposes of inspection of documents, goods or other property. (3) All statements, documents or other information supplied to, or applications made to the arbitral tribunal by one party shall be communicated to the other party, and any expert report or evidentiary document on which the arbitral tribunal may rely in making its decision shall be communicated to the parties. **25. Default of a party.—Unless otherwise agreed by the parties, where, without showing sufficient** cause,— (a) the claimant fails to communicate his statement of claim in accordance with sub-section (1) of section 23, the arbitral tribunal shall terminate the proceedings; (b) the respondent fails to communicate his statement of defence in accordance with sub-section (1) of section 23, the arbitral tribunal shall continue the proceedings without treating that failure in itself as an admission of the allegations by the claimant [3][and shall have the discretion to treat the right of the respondent to file such statement of defence as having been forfeited]. (c) a party fails to appear at an oral hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the arbitral award on the evidence before it. **26. Expert appointed by arbitral tribunal.—(1) Unless otherwise agreed by the parties, the arbitral** tribunal may— (a) appoint one or more experts to report to it on specific issues to be determined by the arbitral tribunal, and (b) require a party to give the expert any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for his inspection. (2) Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal considers it necessary, the expert shall, after delivery of his written or oral report, participate in an oral hearing where the parties have the opportunity to put questions to him and to present expert witnesses in order to testify on the points at issue. (3) Unless otherwise agreed by the parties, the expert shall, on the request of a party, make available to that party for examination all documents, goods or other property in the possession of the expert with which he was provided in order to prepare his report. **27. Court assistance in taking evidence.—(1) The arbitral tribunal, or a party with the approval of** the arbitral tribunal, may apply to the Court for assistance in taking evidence. (2) The application shall specify— (a) the names and addresses of the parties and the arbitrators; (b) the general nature of the claim and the relief sought; 1. Ins. by Act 33 of 2019, s. 5 (w.e.f. 30-8-2019). 2. Ins. by Act 3 of 2016, s. 12 (w.e.f. 23-10-2015). 3. Ins. by s. 13, ibid. (w.e.f. 23-10-2015). 16 ----- (c) the evidence to be obtained, in particular,— (i) the name and address of any person to be heard as witness or expert witness and a statement of the subject-matter of the testimony required; (ii) the description of any document to be produced or property to be inspected. (3) The Court may, within its competence and according to its rules on taking evidence, execute the request by ordering that the evidence be provided directly to the arbitral tribunal. (4) The Court may, while making an order under sub-section (3), issue the same processes to witnesses as it may issue in suits tried before it. (5) Persons failing to attend in accordance with such process, or making any other default, or refusing to give their evidence, or guilty of any contempt to the arbitral tribunal during the conduct of arbitral proceedings, shall be subject to the like disadvantages, penalties and punishments by order of the Court on the representation of the arbitral tribunal as they would incur for the like offences in suits tried before the Court. (6) In this section the expression “Processes” includes summonses and commissions for the examination of witnesses and summonses to produce documents. CHAPTER VI _Making of arbitral award and termination of proceedings_ **28. Rules applicable to substance of dispute.—(1) Where the place of arbitration is situate in** India,— (a) in an arbitration other than an international commercial arbitration, the arbitral tribunal shall decide the dispute submitted to arbitration in accordance with the substantive law for the time being in force in India; (b) in international commercial arbitration,— (i) the arbitral tribunal shall decide the dispute in accordance with the rules of law designated by the parties as applicable to the substance of the dispute; (ii) any designation by the parties of the law or legal system of a given country shall be construed, unless otherwise expressed, as directly referring to the substantive law of that country and not to its conflict of laws rules; (iii) failing any designation of the law under clause (a) by the parties, the arbitral tribunal shall apply the rules of law it considers to be appropriate given all the circumstances surrounding the dispute. (2) The arbitral tribunal shall decide _ex aequoet bono_ or as amiable compositeur only if the parties have expressly authorised it to do so. 1[(3) While deciding and making an award, the arbitral tribunal shall, in all cases, take into account the terms of the contract and trade usages applicable to the transaction.] **29.Decision making by panel of arbitrators.—(1) Unless otherwise agreed by the parties, in arbitral** proceedings with more than one arbitrator, any decision of the arbitral tribunal shall be made by a majority of all its members. (2) Notwithstanding sub-section (1), if authorised by the parties or all the members of the arbitral tribunal, questions of procedure may be decided by the presiding arbitrator. 2 [29A. Time limit for arbitral award.— 3 [(1)The award in matters other than international commercial arbitration shall be made by the arbitral tribunal within a period of twelve months from the date of completion of pleadings under sub-section (4) of section 23: Provided that the award in the matter of international commercial arbitration may be made as expeditiously as possible and endeavor may be made to dispose of the matter within a period of twelve months from the date of completion of pleadings under sub-section (4) of section 23.] 1. Subs. by Act 3 of 2016, s. 14, for sub-section (3) (w.e.f. 23-10-2015). 2. Ins. by s. 15, ibid. (w.e.f. 23-10-2015). 3. Subs. by Act 33 of 2019, s. 6, for sub-section (1) (w.e.f. 30-8-2019). 17 ----- (2) If the award is made within a period of six months from the date the arbitral tribunal enters upon the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties may agree. (3) The parties may, by consent, extend the period specified in sub-section (1) for making award for a further period not exceeding six months. (4) If the award is not made within the period specified in sub-section (1) or the extended period specified under sub-section (3), the mandate of the arbitrator(s) shall terminate unless the Court has, either prior to or after the expiry of the period so specified, extended the period: Provided that while extending the period under this sub-section, if the Court finds that the proceedings have been delayed for the reasons attributable to the arbitral tribunal, then, it may order reduction of fees of arbitrator(s) by not exceeding five per cent. for each month of such delay. 1[Provided further that where an application under sub-section (5) is pending, the mandate of the arbitrator shall continue till the disposal of the said application: Provided also that the arbitrator shall be given an opportunity of being heard before the fees is reduced.] (5) The extension of period referred to in sub-section (4) may be on the application of any of the parties and may be granted only for sufficient cause and on such terms and conditions as may be imposed by the Court. (6) While extending the period referred to in sub-section (4), it shall be open to the Court to substitute one or all of the arbitrators and if one or all of the arbitrators are substituted, the arbitral proceedings shall continue from the stage already reached and on the basis of the evidence and material already on record, and the arbitrator(s) appointed under this section shall be deemed to have received the said evidence and material. (7) In the event of arbitrator(s) being appointed under this section, the arbitral tribunal thus reconstituted shall be deemed to be in continuation of the previously appointed arbitral tribunal. (8) It shall be open to the Court to impose actual or exemplary costs upon any of the parties under this section. (9) An application filed under sub-section (5) shall be disposed of by the Court as expeditiously as possible and endeavour shall be made to dispose of the matter within a period of sixty days from the date of service of notice on the opposite party. **STATE AMENDMENT** **Jammu and Kashmir and Ladakh (UTs).—** **Amendment of sections 29A.—** (a) for sub-section (1), the following sub-section shall be substituted, namely:–– “(1) The award shall be made within a period of twelve months from the date the arbitral tribunal enters upon the reference. _Explanation.—For the purposes of this sub-section, an arbitral tribunal shall be deemed to have_ entered upon the reference on the date on which the arbitrator or all the arbitrators, as the case may be, have received notice, in writing, of their appointment.”; (b) in sub-section (4), omit second and third provisos. [Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws) _Order, 2020,_ _notification_ _No. S.O. 1123(E) dated (18-3-2020) and Vide Union Territory of Ladakh Reorganisation (Adaptation of_ Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] **29B. Fast track procedure.—(1) Notwithstanding anything contained in this Act, the parties to an** arbitration agreement, may, at any stage either before or at the time of appointment of the arbitral tribunal, agree in writing to have their dispute resolved by fast track procedure specified in sub-section (3). 1. Ins. by Act 33 of 2019, s. 6 (w.e.f. 30-8-2019). 18 ----- (2) The parties to the arbitration agreement, while agreeing for resolution of dispute by fast track procedure, may agree that the arbitral tribunal shall consist of a sole arbitrator who shall be chosen by the parties. (3) The arbitral tribunal shall follow the following procedure while conducting arbitration proceedings under sub-section (1):— (a) The arbitral tribunal shall decide the dispute on the basis of written pleadings, documents and submissions filed by the parties without any oral hearing; (b) The arbitral tribunal shall have power to call for any further information or clarification from the parties in addition to the pleadings and documents filed by them; (c) An oral hearing may be held only, if, all the parties make a request or if the arbitral tribunal considers it necessary to have oral hearing for clarifying certain issues; (d) The arbitral tribunal may dispense with any technical formalities, if an oral hearing is held, and adopt such procedure as deemed appropriate for expeditious disposal of the case. (4) The award under this section shall be made within a period of six months from the date the arbitral tribunal enters upon the reference. (5) If the award is not made within the period specified in sub-section (4), the provisions of sub sections (3) to (9) of section 29A shall apply to the proceedings. (6) The fees payable to the arbitrator and the manner of payment of the fees shall be such as may be agreed between the arbitrator and the parties.] **30. Settlement.—(1) It is not incompatible with an arbitration agreement for an arbitral tribunal to** encourage settlement of the dispute and, with the agreement of the parties, the arbitral tribunal may use mediation, conciliation or other procedures at any time during the arbitral proceedings to encourage settlement. (2) If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms. (3) An arbitral award on agreed terms shall be made in accordance with section 31 and shall state that it is an arbitral award. (4) An arbitral award on agreed terms shall have the same status and effect as any other arbitral award on the substance of the dispute. **31. Form and contents of arbitral award.—(1) An arbitral award shall be made in writing and shall** be signed by the members of the arbitral tribunal. (2) For the purposes of sub-section (1), in arbitral proceedings with more than one arbitrator, the signatures of the majority of all the members of the arbitral tribunal shall be sufficient so long as the reason for any omitted signature is stated. (3) The arbitral award shall state the reasons upon which it is based, unless— (a) the parties have agreed that no reasons are to be given, or (b) the award is an arbitral award on agreed terms under section 30. (4) The arbitral award shall state its date and the place of arbitration as determined in accordance with section 20 and the award shall be deemed to have been made at that place. (5) After the arbitral award is made, a signed copy shall be delivered to each party. (6) The arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral award on any matter with respect to which it may make a final arbitral award. (7) (a) Unless otherwise agreed by the parties, where and in so far as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made interest, at such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made. 19 ----- 1[(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two per cent. higher than the current rate of interest prevalent on the date of award, from the date of award to the date of payment. _Explanation.—The expression “current rate of interest” shall have the same meaning as assigned to it_ under clause (b) of section 2 of the Interest Act, 1978 (14 of 1978).] 2[(8) The costs of an arbitration shall be fixed by the arbitral tribunal in accordance with section 31A.] _Explanation.—For the purpose of clause (a), “costs” means reasonable costs relating to—_ (i) the fees and expenses of the arbitrators and witnesses, (ii) legal fees and expenses, (iii) any administration fees of the institution supervising the arbitration, and (iv) any other expenses incurred in connection with the arbitral proceedings and the arbitral award. 3[31A. Regime for costs.—(1) In relation to any arbitration proceeding or a proceeding under any of the provisions of this Act pertaining to the arbitration, the Court or arbitral tribunal, notwithstanding anything contained in the Code of Civil Procedure,1908 (5 of 1908), shall have the discretion to determine— (a) whether costs are payable by one party to another; (b) the amount of such costs; and (c) when such costs are to be paid. _Explanation.—For the purpose of this sub-section, “costs” means reasonable costs relating to—_ (i) the fees and expenses of the arbitrators, Courts and witnesses; (ii) legal fees and expenses; (iii) any administration fees of the institution supervising the arbitration; and (iv) any other expenses incurred in connection with the arbitral or Court proceedings and the arbitral award. (2) If the Court or arbitral tribunal decides to make an order as to payment of costs,— (a) the general rule is that the unsuccessful party shall be ordered to pay the costs of the successful party; or (b) the Court or arbitral tribunal may make a different order for reasons to be recorded in writing. (3) In determining the costs, the Court or arbitral tribunal shall have regard to all the circumstances, including— (a) the conduct of all the parties; (b) whether a party has succeeded partly in the case; (c) whether the party had made a frivolous counterclaim leading to delay in the disposal of the arbitral proceedings; and (d) whether any reasonable offer to settle the dispute is made by a party and refused by the other party. (4) The Court or arbitral tribunal may make any order under this section including the order that a party shall pay— (a) a proportion of another party’s costs; (b) a stated amount in respect of another party’s costs; 1. Subs. by Act 3 of 2016, s. 16, for clause (b) (w.e.f. 23-10-2015). 1. Subs. by Act 3 of 2016, s. 16, for sub-section (8) (w.e.f. 23-10-2015). 2. Ins. by s.17, ibid. (w.e.f. 23-10-2015). 20 ----- (c) costs from or until a certain date only; (d) costs incurred before proceedings have begun; (e) costs relating to particular steps taken in the proceedings; (f) costs relating only to a distinct part of the proceedings; and (g) interest on costs from or until a certain date. (5) An agreement which has the effect that a party is to pay the whole or part of the costs of the arbitration in any event shall be only valid if such agreement is made after the dispute in question has arisen.] **32. Termination of proceedings.—(1) The arbitral proceedings shall be terminated by the final** arbitral award or by an order of the arbitral tribunal under sub-section (2). (2) The arbitral tribunal shall issue an order for the termination of the arbitral proceedings where— (a) the claimant withdraws his claim, unless the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the dispute, (b) the parties agree on the termination of the proceedings, or (c) the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible. (3) Subject to section 33 and sub-section (4) of section 34, the mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings. **33. Correction and interpretation of award; additional award.—(1) Within thirty days from the** receipt of the arbitral award, unless another period of time has been agreed upon by the parties— (a) a party, with notice to the other party, may request the arbitral tribunal to correct any computation errors, any clerical or typographical errors or any other errors of a similar nature occurring in the award; (b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award. (2) If the arbitral tribunal considers the request made under sub-section (1) to be justified, it shall make the correction or give the interpretation within thirty days from the receipt of the request and the interpretation shall form part of the arbitral award. (3) The arbitral tribunal may correct any error of the type referred to in clause (a) of sub-section (1), on its own initiative, within thirty days from the date of the arbitral award. (4) Unless otherwise agreed by the parties, a party with notice to the other party, may request, within thirty days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award. (5) If the arbitral tribunal considers the request made under sub-section (4) to be justified, it shall make the additional arbitral award within sixty days from the receipt of such request. (6) The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction, give an interpretation or make an additional arbitral award under sub-section (2) or sub-section (5). (7) Section 31 shall apply to a correction or interpretation of the arbitral award or to an additional arbitral award made under this section. CHAPTER VII _Recourse against arbitral award_ **34. Application for setting aside arbitral award.—(1) Recourse to a Court against an arbitral award** may be made only by an application for setting aside such award in accordance with sub-section (2) and sub-section (3). (2) An arbitral award may be set aside by the Court only if— 21 ----- (a) the party making the application [1][establishes on the basis of the record of the arbitral tribunal that]— (i) a party was under some incapacity, or (ii) the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law for the time being in force; or (iii) the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or (iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration: Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the arbitral award which contains decisions on matters not submitted to arbitration may be set aside; or (v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a provision of this Part from which the parties cannot derogate, or, failing such agreement, was not in accordance with this Part; or (b) the Court finds that— (i) the subject-matter of the dispute is not capable of settlement by arbitration under the law for the time being in force, or (ii) the arbitral award is in conflict with the public policy of India. 2[Explanation 1.—For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,— (i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or (ii) it is in contravention with the fundamental policy of Indian law; or (iii) it is in conflict with the most basic notions of morality or justice. _Explanation 2.—For the avoidance of doubt, the test as to whether there is a contravention with the_ fundamental policy of Indian law shall not entail a review on the merits of the dispute.] 3[(2A) An arbitral award arising out of arbitrations other than international commercial arbitrations, may also be set aside by the Court, if the Court finds that the award is vitiated by patent illegality appearing on the face of the award: Provided that an award shall not be set aside merely on the ground of an erroneous application of the law or by reappreciation of evidence.] (3) An application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had been disposed of by the arbitral tribunal: Provided that if the Court is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of three months it may entertain the application within a further period of thirty days, but not thereafter. (4) On receipt of an application under sub-section (1), the Court may, where it is appropriate and it is so requested by a party, adjourn the proceedings for a period of time determined by it in order to give the 1. Subs. by Act 33 of 2019, s. 7, for “furnishes proof that” (w.e.f. 30-8-2019). 2. Subs. by Act 3 of 2016, s. 18, for the Explanation (w.e.f. 23-10-2015). 3. Ins. by s. 18, ibid. (w.e.f. 23-10-2015). 22 ----- arbitral tribunal an opportunity to resume the arbitral proceedings or to take such other action as in the opinion of arbitral tribunal will eliminate the grounds for setting aside the arbitral award. 1[(5) An application under this section shall be filed by a party only after issuing a prior notice to the other party and such application shall be accompanied by an affidavit by the applicant endorsing compliance with the said requirement. (6) An application under this section shall be disposed of expeditiously, and in any event, within a period of one year from the date on which the notice referred to in sub-section (5) is served upon the other party.] **STATE AMENDMENT** **Jammu and Kashmir and Ladakh (UTs).** **Amendment of section 34.—** (i) after sub-section (2), insert the following sub-section, namely:— “(2A) An arbitral award may also be set aside by the Court, if the Court finds that the award is vitiated by patent illegality appearing on the face of the award: Provided that an award shall not be set aside merely on the ground of an erroneous application of the law or by re-appreciation of evidence.”; (ii) in sub-section (3),— (i) for “three months” substitute, “six months”; (ii) in proviso thereto, for, “three months” and “thirty days” substitute respectively “six months” and “sixty days”. [Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws) _Order, 2020, notification_ _No. S.O. 1123(E) dated (18-3-2020) and Vide Union Territory of Ladakh Reorganisation (Adaptation of_ Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] CHAPTER VIII _Finality and enforcement of arbitral awards_ **35. Finality of arbitral awards.—Subject to this Part an arbitral award shall be final and binding on** the parties and persons claiming under them respectively. 2[36. Enforcement.—(1) Where the time for making an application to set aside the arbitral award under section 34 has expired, then, subject to the provisions of sub-section (2), such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), in the same manner as if it were a decree of the court. (2) Where an application to set aside the arbitral award has been filed in the Court under section 34, the filing of such an application shall not by itself render that award unenforceable, unless the Court grants an order of stay of the operation of the said arbitral award in accordance with the provisions of sub-section (3), on a separate application made for that purpose. (3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for reasons to be recorded in writing: 1. Ins. by Act 3 of 2016, s. 18 (w.e.f. 23-10-2015). 2. Subs. by s. 19, ibid., for section 36 (w.e.f. 23-10-2015). 23 ----- Provided that the Court shall, while considering the application for grant of stay in the case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).] 1[Provided further that where the Court is satisfied that a Prima facie case is made out that,— (a) the arbitration agreement or contract which is the basis of the award; or (b) the making of the award, was induced or effected by fraud or corruption, it shall stay the award unconditionally pending disposal of the challenge under section 34 to the award. _Explanation.—For the removal of doubts, it is hereby clarified that the above proviso shall apply to_ all court cases arising out of or in relation to arbitral proceedings, irrespective of whether the arbitral or court proceedings were commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 (3 of 2016).] CHAPTER IX _Appeals_ **37. Appealable orders.—(1) [2][Notwithstanding anything contained in any other law for the time** being in force, an appeal] shall lie from the following orders (and from no others) to the Court authorised by law to hear appeals from original decrees of the Court passing the order, namely:— 3[(a) refusing to refer the parties to arbitration under section 8; (b) granting or refusing to grant any measure under section 9; (c) setting aside or refusing to set aside an arbitral award under section 34.] (2) Appeal shall also lie to a court from an order of the arbitral tribunal— (a) accepting the plea referred to in sub-section (2) or sub-section (3) of section 16; or (b) granting or refusing to grant an interim measure under section 17. (3) No second appeal shall lie from an order passed in appeal under this section, but nothing in this section shall affect or takeaway any right to appeal to the Supreme Court. CHAPTER X _Miscellaneous_ **38. Deposits.—(1) The arbitral tribunal may fix the amount of the deposit or supplementary deposit,** as the case may be, as an advance for the costs referred to in sub-section (8) of section 31, which it expects will be incurred in respect of the claim submitted to it: Provided that where, apart from the claim, a counter-claim has been submitted to the arbitral tribunal, it may fix separate amount of deposit for the claim and counter-claim. (2) The deposit referred to in sub-section (1) shall be payable in equal shares by the parties: Provided that where one party fails to pay his share of the deposit, the other party may pay that share: Provided further that where the other party also does not pay the aforesaid share in respect of the claim or the counter-claim, the arbitral tribunal may suspend or terminate the arbitral proceedings in respect of such claim or counter-claim, as the case may be. (3) Upon termination of the arbitral proceedings, the arbitral tribunal shall render an accounting to the parties of the deposits received and shall return any unexpended balance to the party or parties, as the case may be. 1. Ins. by Act 3 of 2021, s. 2 (w.e.f. 23-10-2015). 2. Subs. by Act 33 of 2019, s. 8, for “An appeal” (w.e.f. 30-8-2019). 3. Subs. by Act 3 of 2016, s. 20, for clauses (a) and (b) (w.e.f. 23-10-2015). 24 ----- **39. Lien on arbitral award and deposits as to costs.—(1) Subject to the provisions of** sub-section (2) and to any provision to the contrary in the arbitration agreement, the arbitral tribunal shall have a lien on the arbitral award for any unpaid costs of the arbitration. (2) If in any case an arbitral tribunal refuses to deliver its award except on payment of the costs demanded by it, the Court may, on an application in this behalf, order that the arbitral tribunal shall deliver the arbitral award to the applicant on payment into Court by the applicant of the costs demanded, and shall, after such inquiry, if any, as it thinks fit, further order that out of the money so paid into Court there shall be paid to the arbitral tribunal by way of costs such sum as the Court may consider reasonable and that the balance of the money, if any, shall be refunded to the applicant. (3) An application under sub-section (2) may be made by any party unless the fees demanded have been fixed by written agreement between him and the arbitral tribunal, and the arbitral tribunal shall be entitled to appear and be heard on any such application. (4) The Court may make such orders as it thinks fit respecting the costs of the arbitration where any question arises respecting such costs and the arbitral award contains no sufficient provision concerning them. **40. Arbitration agreement not to be discharged by death of party thereto.—(1) An arbitration** agreement shall not be discharged by the death of any party thereto either as respects the deceased or as respects any other party, but shall in such event been forceable by or against the legal representative of the deceased. (2) The mandate of an arbitrator shall not be terminated by the death of any party by whom he was appointed. (3) Nothing in this section shall affect the operation of any law by virtue of which any right of action is extinguished by the death of a person. **41. Provisions in case of insolvency.—(1) Where it is provided by a term in a contract to which an** insolvent is a party that any dispute arising there out or in connection therewith shall be submitted to arbitration, the said term shall, if the receiver adopts the contract, be enforceable by or against him so far as it relates to any such dispute. (2) Where a person who has been adjudged an insolvent had, before the commencement of the insolvency proceedings, become a party to an arbitration agreement, and any matter to which the agreement applies is required to be determined in connection with, or for the purposes of, the insolvency proceedings, then, if the case is one to which sub-section (1) does not apply, any other party or the receiver may apply to the judicial authority having jurisdiction in the insolvency proceedings for an order directing that the matter in question shall be submitted to arbitration in accordance with the arbitration agreement, and the judicial authority may, if it is of opinion that, having regard to all the circumstances of the case, the matter ought to be determined by arbitration, make an order accordingly. (3) In this section the expression “receiver” includes an Official Assignee. **42. Jurisdiction.—Notwithstanding anything contained elsewhere in this Part or in any other law for** the time being in force, where with respect to an arbitration agreement any application under this Part has been made in a Court, that Court alone shall have jurisdiction over the arbitral proceedings and all subsequent applications arising out of that agreement and the arbitral proceedings shall be made in that Court and in no other Court. 1[42A. Confidentiality of information.—Notwithstanding anything contained by any other law for the time being in force, the arbitrator, the arbitral institution and the parties to the arbitration agreement shall maintain confidentially of all arbitral proceedings except award where its disclosure is necessary for the purpose of implementation and enforcement of award. **42B. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** the arbitrator for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder.] 1. Ins. by Act 33 of 2019, s. 9 (w.e.f. 30-8-2019). 25 ----- **43. Limitations.—(1) The Limitation Act, 1963 (36 of 1963), shall apply to arbitrations as it applies** to proceedings in court. (2) For the purposes of this section and the Limitation Act, 1963 (36 of 1963), an arbitration shall be deemed to have commenced on the date referred to in section 21. (3) Where an arbitration agreement to submit future disputes to arbitration provides that any claim to which the agreement applies shall be barred unless some step to commence arbitral proceedings is taken within a time fixed by the agreement, and a dispute arises to which the agreement applies, the Court, if it is of opinion that in the circumstances of the case undue hardship would otherwise be caused, and notwithstanding that the time so fixed has expired, may on such terms, if any, as the justice of the case may require, extend the time for such period as it thinks proper. (4) Where the Court orders that an arbitral award be set aside, the period between the commencement of the arbitration and the date of the order of the Court shall be excluded in computing the time prescribed by the Limitation Act, 1963 (36 of 1963), for the commencement of the proceedings (including arbitration) with respect to the dispute so submitted. **STATE AMENDMENT** **Bihar.—** **Omission of sub-section (3) of Section-43 of the Arbitration and Conciliation Act, 1996.—Sub.** by Section-3 of the Section 43 of the said Act shall be omitted. [Vide Bihar Act 20 of 2002, s. 2] 1[PART IA # ARBITRATION COUNCIL OF INDIA **43A. Definitions. In this Part, unless the context otherwise requires,—** (a) “Chairperson” means the Chairperson of the Arbitration Council of India appointed under clause (a) of sub-section (1) of section 43C; (b) “Council” means the Arbitration Council of India established under section 43B; (c) “Member” means a Member of the Council and includes the Chairperson. **43B. Establishment and incorporation of Arbitration Council of India.—(1) The Central** Government shall, by notification in the Official Gazette, establish, for the purposes of this Act, a Council to be known as the Arbitration Council of India to perform the duties and discharge the functions under this Act. (2) The Council shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to enter into contract, and shall, by the said name, sue or be sued. (3) The head office of the Council shall be at Delhi. (4) The Council may, with the prior approval of the Central Government, establish offices at other places in India. **43C. Composition of Council.–– (1) The Council shall consist of the following Members, namely:––** (a) a person, who has been, a Judge of the Supreme Court or, Chief Justice of a High Court or, a Judge of a High Court or an eminent person, having special knowledge and experience in the conduct 1. Ins. by Act 33 of 2019, s. 10 (w.e.f. 12-10-2023). 26 ----- or administration of arbitration, to be appointed by the Central Government in consultation with the Chief Justice of India–Chairperson; (b) an eminent arbitration practitioner having substantial knowledge and experience in institutional arbitration, both domestic and international, to be nominated by the Central Government–Member; (c) an eminent academician having experience in research and teaching in the field of arbitration and alternative dispute resolution laws, to be appointed by the Central Government in consultation with the Chairperson–Member; (d) Secretary to the Government of India in the Department of Legal Affairs, Ministry of Law and Justice or his representative not below the rank of Joint Secretary–Member, ex officio; (e) Secretary to the Government of India in the Department of Expenditure, Ministry of Finance or his representative not below the rank of Joint Secretary– Member, ex officio; (f) one representative of a recognised body of commerce and industry, chosen on rotational basis by the Central Government–Part-time Member; and (g) Chief Executive Officer-Member-Secretary, ex officio. (2) The Chairperson and Members of the Council, other than ex officio Members, shall hold office as such, for a term of three years from the date on which they enter upon their office: Provided that no Chairperson or Member, other than ex officio Member, shall hold office as such after he has attained the age of seventy years in the case of Chairperson and sixty-seven years in the case of Member. (3) The salaries, allowances and other terms and conditions of the Chairperson and Members referred to in clauses (b) and (c) of sub-section (1) shall be such as may be prescribed by the Central Government. (4) The Part-time Member shall be entitled to such travelling and other allowances as may be prescribed by the Central Government. **43D. Duties and functions of Council.––(1) It shall be the duty of the Council to take all such** measures as may be necessary to promote and encourage arbitration, mediation, conciliation or other alternative dispute resolution mechanism and for that purpose to frame policy and guidelines for the establishment, operation and maintenance of uniform professional standards in respect of all matters relating to arbitration. (2) For the purposes of performing the duties and discharging the functions under this Act, the Council may— (a) frame policies governing the grading of arbitral institutions; (b) recognise professional institutes providing accreditation of arbitrators; (c) review the grading of arbitral institutions and arbitrators; (d) hold training, workshops and courses in the area of arbitration in collaboration of law firms, law universities and arbitral institutes; (e) frame, review and update norms to ensure satisfactory level of arbitration and conciliation; (f) act as a forum for exchange of views and techniques to be adopted for creating a platform to make India a robust centre for domestic and international arbitration and conciliation; (g) make recommendations to the Central Government on various measures to be adopted to make provision for easy resolution of commercial disputes; (h) promote institutional arbitration by strengthening arbitral institutions; 27 ----- (i) conduct examination and training on various subjects relating to arbitration and conciliation and award certificates thereof; (j) establish and maintain depository of arbitral awards made in India; (k) make recommendations regarding personnel, training and infrastructure of arbitral institutions; and (l) such other functions as may be decided by the Central Government. **43E. Vacancies, etc., not to invalidate proceedings of Council.—No act or proceeding of the** Council shall be invalid merely by reason of— (a) any vacancy or any defect, in the constitution of the Council; (b) any defect in the appointment of a person acting as a Member of the Council; or (c) any irregularity in the procedure of the Council not affecting the merits of the case. **43F. Resignation of Members.—The Chairperson or the Full-time or Part-time Member may, by** notice in writing, under his hand addressed to the Central Government, resign his office: Provided that the Chairperson or the Full-time Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier. **43G. Removal of Member.––(1) The Central Government may, remove a Member from his office if** he–– (a) is an undischarged insolvent; or (b) has engaged at any time (except Part-time Member), during his term of office, in any paid employment; or (c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest; or (f) has become physically or mentally incapable of acting as a Member. (2) Notwithstanding anything contained in sub-section (1), no Member shall be removed from his office on the grounds specified in clauses (d) and (e) of that sub-section unless the Supreme Court, on a reference being made to it in this behalf by the Central Government, has, on an inquiry, held by it in accordance with such procedure as may be prescribed in this behalf by the Supreme Court, reported that the Member, ought on such ground or grounds to be removed. **43H. Appointment of experts and constitution of Committees thereof.––The Council may,** appoint such experts and constitute such Committees of experts as it may consider necessary to discharge its functions on such terms and conditions as may be specified by the regulations. **43-I. General norms for grading of arbitral institutions.––The Council shall make grading of** arbitral institutions on the basis of criteria relating to infrastructure, quality and calibre of arbitrators, performance and compliance of time limits for disposal of domestic or international commercial arbitrations, in such manner as may be specified by the regulations. 28 ----- 1[43J. Norms for accreditation of arbitrators.—The qualifications, experience and norms for accreditation of arbitrators shall be such as may be specified by the regulations.] **43K. Depository of awards.––The Council shall maintain an electronic depository of arbitral awards** made in India and such other records related thereto in such manner as may be specified by the regulations. **43L. Power to make regulations by Council.––The Council may, in consultation with the Central** Government, make regulations, consistent with the provisions of this Act and the rules made thereunder, for the discharge of its functions and perform its duties under this Act. **43M. Chief Executive Officer.––(1) There shall be a Chief Executive Officer of the Council, who** shall be responsible for day-to-day administration of the Council. (2) The qualifications, appointment and other terms and conditions of the service of the Chief Executive Officer shall be such as may be prescribed by the Central Government. (3) The Chief Executive Officer shall discharge such functions and perform such duties as may be specified by the regulations. (4) There shall be a Secretariat to the Council consisting of such number of officers and employees as may be prescribed by the Central Government. (5) The qualifications, appointment and other terms and conditions of the service of the employees and other officers of the Council shall be such as may be prescribed by the Central Government.] PART II ENFORCEMENT OF CERTAIN FOREIGN AWARDS CHAPTER I _New York Convention Awards_ **44. Definition.—In this Chapter, unless the context otherwise requires, “foreign award” means an** arbitral award on differences between persons arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India, made on or after the 11th day of October, 1960— (a) in pursuance of an agreement in writing for arbitration to which the Convention set forth in the First Schedule applies, and (b) in one of such territories as the Central Government, being satisfied that reciprocal provisions have been made may, by notification in the Official Gazette, declare to be territories to which the said Convention applies. **45. Power of judicial authority to refer parties to arbitration.—Notwithstanding anything** contained in Part I or in the Code of Civil Procedure, 1908 (5 of 1908), a judicial authority, when seized of an action in a matter in respect of which the parties have made an agreement referred to in section 44, shall, at the request of one of the parties or any person claiming through or under him, refer the parties to arbitration, [2][unless it prima facie finds] that the said agreement is null and void, inoperative or incapable of being performed. **46. When foreign award binding.—Any foreign award which would be enforceable under this Chapter** shall be treated as binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as including references to relying on an award. 1. Subs. by Act 3 of 2021, s. 3, for section 43J (w.e.f. 4-11-2020). 1. Subs. by Act 33 of 2019, s. 11, for “unless it finds” (w.e.f. 30-8-2019). 29 ----- **47. Evidence.—(1) The party applying for the enforcement of a foreign award shall, at the time of the** application, produce before the court— (a) the original award or a copy thereof, duly authenticated in the manner required by the law of the country in which it was made; (b) the original agreement for arbitration or a duly certified copy thereof; and (c) such evidence as may be necessary to prove that the award is a foreign award. (2) If the award or agreement to be produced under sub-section (1) is in a foreign language, the party seeking to enforce the award shall produce a translation into English certified as correct by a diplomatic or consular agent of the country to which that party belongs or certified as correct in such other manner as may be sufficient according to the law in force in India. 1[Explanation.—In this section and in the sections following in this Chapter, “Court” means the High Court having original jurisdiction to decide the questions forming the subject-matter of the arbitral award if the same had been the subject-matter of a suit on its original civil jurisdiction and in other cases, in the High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court.] **48. Conditions for enforcement of foreign awards.—(1) Enforcement of a foreign award may be** refused, at the request of the party against whom it is invoked, only if that party furnishes to the court proof that— (a) the parties to the agreement referred to in section 44 were, under the law applicable to them, under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made; or (b) the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or (c) the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration: Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be enforced; or (d) the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place; or (e) the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made. (2) Enforcement of an arbitral award may also be refused if the Court finds that— (a) the subject-matter of the difference is not capable of settlement by arbitration under the law of India; or (b) the enforcement of the award would be contrary to the public policy of India. 2[Explanation 1.—For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,— (i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or 1. Subs. by Act 3 of 2016, s. 21, for the Explanation (w.e.f. 23-10-2015). 2. Subs. by s. 22, ibid., for the Explanation (w.e.f. 23-10-2015). 30 ----- (ii) it is in contravention with the fundamental policy of Indian law; or (iii) it is in conflict with the most basic notions of morality or justice. _Explanation 2.—For the avoidance of doubt, the test as to whether there is a contravention with the_ fundamental policy of Indian law shall not entail a review on the merits of the dispute.] (3) If an application for the setting aside or suspension of the award has been made to a competent authority referred to in clause (e) of sub-section (1) the Court may, if it considers it proper, adjourn the decision on the enforcement of the award and may also, on the application of the party claiming enforcement of the award, order the other party to give suitable security. **49. Enforcement of foreign awards.—Where the Court is satisfied that the foreign award is** enforceable under this Chapter, the award shall be deemed to be a decree of that Court. **50. Appealable orders.—(1) [1][Notwithstanding anything contained in any other law for the time** being in force, an appeal] shall lie from the order refusing to— (a) refer the parties to arbitration under section 45; (b) enforce a foreign award under section 48, to the court authorised by law to hear appeals from such order. (2) No second appeal shall lie from an order passed in appeal under this section, but nothing in this section shall affect or take away any right to appeal to the Supreme Court. **51. Saving.—Nothing in this Chapter shall prejudice any rights which any person would have had of** enforcing in India of any award or of availing himself in India of any award if this Chapter had not been enacted. **52. Chapter II not to apply.—Chapter II of this Part shall not apply in relation to foreign awards to** which this Chapter applies. CHAPTER II Geneva Convention Awards **53. Interpretation.—In this Chapter “foreign award” means an arbitral award on differences relating** to matters considered as commercial under the law in force in India made after the 28th day of July, 1924,— (a) in pursuance of an agreement for arbitration to which the Protocol set forth in the Second Schedule applies, and (b) between persons of whom one is subject to the jurisdiction of some one of such Powers as the Central Government, being satisfied that reciprocal provisions have been made, may, by notification in the Official Gazette, declare to be parties to the Convention set forth in the Third Schedule, and of whom the other is subject to the jurisdiction of some other of the Powers aforesaid, and (c) in one of such territories as the Central Government, being satisfied that reciprocal provisions have been made, may, by like notification, declare to be territories to which the said Convention applies, and for the purposes of this Chapter an award shall not be deemed to be final if any proceedings for the purpose of contesting the validity of the award are pending in the country in which it was made. **54. Power of judicial authority to refer parties to arbitration.—Notwithstanding anything** contained in Part I or in the Code of Civil Procedure, 1908 (5 of 1908), a judicial authority, on being seized of a dispute regarding a contract made between persons to whom section 53 applies and including an arbitration agreement, whether referring to present or future differences, which is valid under that section and capable of being carried into effect, shall refer the parties on the application of either of them or any person claiming through or under him to the decision of the arbitrators and such reference shall not 1. Subs. by Act 33 of 2019, s. 12, for “An appeal” (w.e.f. 30-8-2019). 31 ----- prejudice the competence of the judicial authority in case the agreement or the arbitration cannot proceed or becomes inoperative. **55. Foreign awards when binding.—Any foreign award which would be enforceable under this** Chapter shall be treated as binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as including references to relying on an award. **56. Evidence.—(1) The party applying for the enforcement of a foreign award shall, at the time of** application produce before the Court— (a) the original award or a copy thereof duly authenticated in the manner required by the law of the country in which it was made; (b) evidence proving that the award has become final; and (c) such evidence as may be necessary to prove that the conditions mentioned in clauses (a) and (c) of sub-section (1) of section 57 are satisfied. (2) Where any document requiring to be produced under sub-section (1) is in a foreign language, the party seeking to enforce the award shall produce a translation into English certified as correct by a diplomatic or consular agent of the country to which that party belongs or certified as correct in such other manner as may be sufficient according to the law in force in India. 1[Explanation.—In this section and in the sections following in this Chapter, “Court” means the High Court having original jurisdiction to decide the questions forming the subject-matter of the arbitral award if the same had been the subject-matter of a suit on its original civil jurisdiction and in other cases, in the High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court.] **57. Conditions for enforcement of foreign awards.—(1) In order that a foreign award may be** enforceable under this Chapter, it shall be necessary that— (a) the award has been made in pursuance of a submission to arbitration which is valid under the law applicable thereto; (b) the subject-matter of the award is capable of settlement by arbitration under the law of India; (c) the award has been made by the arbitral tribunal provided for in the submission to arbitration or constituted in the manner agreed upon by the parties and in conformity with the law governing the arbitration procedure; (d) the award has become final in the country in which it has been made, in the sense that it will not be considered as such if it is open to opposition or appeal or if it is proved that any proceedings for the purpose of contesting the validity of the award are pending; (e) the enforcement of the award is not contrary to the public policy or the law of India. 2[Explanation 1.—For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,— (i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or (ii) it is in contravention with the fundamental policy of Indian law; or (iii) it is in conflict with the most basic notions of morality or justice. _Explanation 2.—For the avoidance of doubt, the test as to whether there is a contravention with the_ fundamental policy of Indian law shall not entail a review on the merits of the dispute.] (2) Even if the conditions laid down in sub-section (1) are fulfilled, enforcement of the award shall be refused if the Court is satisfied that— (a) the award has been annulled in the country in which it was made; 1. Subs. by Act 3 of 2016, s. 23, for the Explanation (w.e.f. 23-10-2015). 2. Subs. by s. 24, ibid., for the Explanation (w.e.f. 23-10-2015). 32 ----- (b) the party against whom it is sought to use the award was not given notice of the arbitration proceedings in sufficient time to enable him to present his case; or that, being under a legal incapacity, he was not properly represented; (c) the award does not deal with the differences contemplated by or falling within the terms of the submission to arbitration or that it contains decisions on matters beyond the scope of the submission to arbitration: Provided that if the award has not covered all the differences submitted to the arbitral tribunal, the Court may, if it thinks fit, postpone such enforcement or grant it subject to such guarantee as the Court may decide. (3) If the party against whom the award has been made proves that under the law governing the arbitration procedure there is aground, other than the grounds referred to in clauses (a) and (c) of subsection (1) and clauses (b) and (c) of sub-section (2)entitling him to contest the validity of the award, the Court may, if it thinks fit, either refuse enforcement of the award or adjourn the consideration thereof, giving such party a reasonable time within which to have the award annulled by the competent tribunal. **58. Enforcement of foreign awards.—Where the Court is satisfied that the foreign award is** enforceable under this Chapter, the award shall be deemed to be a decree of the Court. **59. Appealable orders.—(1) An appeal shall lie from the order refusing—** (a) to refer the parties to arbitration under section 54; and (b) to enforce a foreign award under section 57, to the court authorised by law to hear appeals from such order. (2) No second appeal shall lie from an order passed in appeal under this section, but nothing in this section shall affect or take away any right to appeal to the Supreme Court. **60. Saving.—Nothing in this Chapter shall prejudice any rights which any person would have had of** enforcing in India of any award or of availing himself in India of any award if this Chapter had not been enacted. PART III CONCILIATION **61. Application and scope.—(1) Save as otherwise provided by any law for the time being in force** and unless the parties have otherwise agreed, this Part shall apply to conciliation of disputes arising out of legal relationship, whether contractual or not and to all proceedings relating thereto. (2) This Part shall not apply where by virtue of any law for the time being in force certain disputes may not be submitted to conciliation. **62. Commencement of conciliation proceedings.—(1) The party initiating conciliation shall send to** the other party a written invitation to conciliate under this Part, briefly identifying the subject of the dispute. (2) Conciliation proceedings, shall commence when the other party accepts in writing the invitation to conciliate. (3) If the other party rejects the invitation, there will be no conciliation proceedings. (4) If the party initiating conciliation does not receive a reply within thirty days from the date on which he sends the invitation, or within such other period of time as specified in the invitation, he may elect to treat this as a rejection of the invitation to conciliate and if he so elects, he shall inform in writing the other party accordingly. **63. Number of conciliators.—(1) There shall be one conciliator unless the parties agree that there** shall be two or three conciliators. (2) Where there is more than one conciliator, they ought, as a general rule, to act jointly. **64. Appointment of conciliators.—(1) Subject to sub-section (2)—** 33 ----- (a) in conciliation proceedings, with one conciliator, the parties may agree on the name of a sole conciliator; (b) in conciliation proceedings with two conciliators, each party may appoint one conciliator; (c) in conciliation proceedings with three conciliators, each party may appoint one conciliator and the parties may agree on the name of the third conciliator who shall act as the presiding conciliator. (2) Parties may enlist the assistance of a suitable institution or person in connection with the appointment of conciliators, and in particular,— (a) a party may request such an institution or person to recommend the names of suitable individuals to act as conciliator; or (b) the parties may agree that the appointment of one or more conciliators be made directly by such an institution or person: Provided that in recommending or appointing individuals to act as conciliator, the institution or person shall have regard to such considerations as are likely to secure the appointment of an independent and impartial conciliator and, with respect to a sole or third conciliator, shall take into account the advisability of appointing a conciliator of a nationality other than the nationalities of the parties. **65. Submission of statements to conciliator.—(1) The conciliator, upon his appointment, may** request each party to submit to him a brief written statement describing the general nature of the dispute and the points at issue. Each party shall send a copy of such statement to the other party. (2) The conciliator may request each party to submit to him a further written statement of his position and the facts and grounds in support thereof, supplemented by any documents and other evidence that such party deems appropriate. The party shall send a copy of such statement, documents and other evidence to the other party. (3) At any stage of the conciliation proceedings, the conciliator may request a party to submit to him such additional information as he deems appropriate. _Explanation.—In this section and all the following sections of this Part, the term "conciliator" applies_ to a sole conciliator, two or three conciliators, as the case may be. **66. Conciliator not bound by certain enactments.—The conciliator is not bound by the Code of** Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872). **67. Role of conciliator.—(1) The conciliator shall assist the parties in an independent and impartial** manner in their attempt to reach an amicable settlement of their dispute. (2) The conciliator shall be guided by principles of objectivity, fairness and justice, giving consideration to, among other things, the rights and obligations of the parties, the usages of the trade concerned and the circumstances surrounding the dispute, including any previous business practices between the parties. (3) The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate, taking into account the circumstances of the case, the wishes the parties may express, including any request by a party that the conciliator hear oral statements, and the need for a speedy settlement of the dispute. (4) The conciliator may, at any stage of the conciliation proceedings, make proposals for a settlement of the dispute. Such proposals need not be in writing and need not be accompanied by a statement of the reasons therefor. **68. Administrative assistance.—In order to facilitate the conduct of the conciliation proceedings, the** parties, or the conciliator with the consent of the parties, may arrange for administrative assistance by a suitable institution or person. **69. Communication between conciliator and parties.—(1) The conciliator may invite the parties to** meet him or may communicate with them orally or in writing. He may meet or communicate with the parties together or with each of them separately. 34 ----- (2) Unless the parties have agreed upon the place where meetings with the conciliator are to be held, such place shall be determined by the conciliator, after consultation with the parties, having regard to the circumstances of the conciliation proceedings. **70. Disclosure of information.—When the conciliator receives factual information concerning the** dispute from a party, he shall disclose the substance of that information to the other party in order that the other party may have the opportunity to present any explanation which he considers appropriate: Provided that when a party gives any information to the conciliator subject to a specific condition that it be kept confidential, the conciliator shall not disclose that information to the other party. **71. Co-operation of parties with conciliator.—The parties shall in good faith co-operate with the** conciliator and, in particular, shall endeavour to comply with requests by the conciliator to submit written materials, provide evidence and attend meetings. **72. Suggestions by parties for settlement of dispute.—Each party may, on his own initiative or at** the invitation of the conciliator, submit to the conciliator suggestions for the settlement of the dispute. **73. Settlement agreement.—(1) When it appears to the conciliator that there exist elements of a** settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement and submit them to the parties for their observations. After receiving the observations of the parties, the conciliator may reformulate the terms of a possible settlement in the light of such observations. (2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written settlement agreement. If requested by the parties, the conciliator may draw up, or assist the parties in drawing up, the settlement agreement. (3) When the parties sign the settlement agreement, it shall be final and binding on the parties and persons claiming under them respectively. (4) The conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of the parties. **74. Status and effect of settlement agreement.—The settlement agreement shall have the same** status and effect as if it is an arbitral award on agreed terms on the substance of the dispute rendered by an arbitral tribunal under section 30. **75. Confidentiality.—Notwithstanding anything contained in any other law for the time being in** force, the conciliator and the parties shall keep confidential all matters relating to the conciliation proceedings. Confidentiality shall extend also to the settlement agreement, except where its disclosure is necessary for purposes of implementation and enforcement. **76. Termination of conciliation proceedings.—The conciliation proceedings shall be terminated—** (a) by the signing of the settlement agreement by the parties, on the date of the agreement; or (b) by a written declaration of the conciliator, after consultation with the parties, to the effect that further efforts at conciliation are no longer justified, on the date of the declaration; or (c) by a written declaration of the parties addressed to the conciliator to the effect that the conciliation proceedings are terminated, on the date of the declaration; or (d) by a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation proceedings are terminated, on the date of the declaration. **77. Resort to arbitral or judicial proceedings.—The parties shall not initiate, during the** conciliation proceedings, any arbitral or judicial proceedings in respect of a dispute that is the subjectmatter of the conciliation proceedings except that a party may initiate arbitral or judicial proceedings where, in his opinion, such proceedings are necessary for preserving his rights. **78. Costs.—(1) Upon termination of the conciliation proceedings, the conciliator shall fix the costs of** the conciliation and give written notice thereof to the parties. (2) For the purpose of sub-section (1), “costs” means reasonable costs relating to— 35 ----- (a) the fee and expenses of the conciliator and witnesses requested by the conciliator with the consent of the parties; (b) any expert advice requested by the conciliator with the consent of the parties; (c) any assistance provided pursuant to clause (b) of sub-section (2) of section 64 and section 68. (d) any other expenses incurred in connection with the conciliation proceedings and the settlement agreement. (3) The costs shall be borne equally by the parties unless the settlement agreement provides for a different apportionment. All other expenses incurred by a party shall be borne by that party. **79. Deposits.—(1) The conciliator may direct each party to deposit an equal amount as an advance** for the costs referred to in sub-section(2) of section 78 which he expects will be incurred. (2) During the course of the conciliation proceedings, the conciliator may direct supplementary deposits in an equal amount from each party. (3) If the required deposits under sub-sections (1) and (2) are not paid in full by both parties within thirty days, the conciliator may suspend the proceedings or may make a written declaration of termination of the proceedings to the parties, effective on the date of that declaration. (4) Upon termination of the conciliation proceedings, the conciliator shall render an accounting to the parties of the deposits received and shall return any unexpended balance to the parties. **80. Role of conciliator in other proceedings.—Unless otherwise agreed by the parties,—** (a) the conciliator shall not act as an arbitrator or as a representative or counsel of a party in any arbitral or judicial proceeding in respect of a dispute that is the subject of the conciliation proceedings; (b) the conciliator shall not be presented by the parties as a witness in any arbitral or judicial proceedings. **81. Admissibility of evidence in other proceedings.—The parties shall not rely on or introduce as** evidence in arbitral or judicial proceedings, whether or not such proceedings relate to the dispute that is the subject of the conciliation proceedings,— (a) views expressed or suggestions made by the other party in respect of a possible settlement of the dispute; (b) admissions made by the other party in the course of the conciliation proceedings; (c) proposals made by the conciliator; (d) the fact that the other party had indicated his willingness to accept a proposal for settlement made by the conciliator. PART IV SUPPLEMENTARY PROVISIONS **82. Power of High Court to make rules.—The High Court may make rules consistent with this Act** as to all proceedings before the Court under this Act. **83. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act,** the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall made be after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each Houses of Parliament. 36 ----- **84. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) Every rule made by the Central Government under this Act shall be laid, as soon as may be, after it is made before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **85. Repeal and savings.—(1) The Arbitration (Protocol and Convention) Act, 1937 (6 of 1937), the** Arbitration Act, 1940 (10 of 1940) and the Foreign Awards (Recognition and Enforcement) Act, 1961 (45 of 1961) are hereby repealed. (2) Notwithstanding such repeal,— (a) the provisions of the said enactments shall apply in relation to arbitral proceedings which commenced before this Act came into force unless otherwise agreed by the parties but this Act shall apply in relation to arbitral proceedings which commenced on or after this Act comes into force; (b) all rules made and notifications published, under the said enactments shall, to the extent to which they are not repugnant to this Act, be deemed respectively to have been made or issued under this Act. **86. Repeal and saving.—(1) The Arbitration and Conciliation (Third) Ordinance, 1996 (Ord.27 of** 1996) is hereby repealed. (2) Notwithstanding such repeal, any order, rule, notification or scheme made or anything done or any action taken in pursuance of any provision of the said Ordinance shall be deemed to have been made, done or taken under the corresponding provisions of this Act. 1[87. Effect of arbitral and related court proceedings commenced prior to 23rd October, **2015.—Unless the parties otherwise agree, the amendments made to this Act by the Arbitration and** Conciliation (Amendment) Act, 2015 shall— (a) not apply to— (i) arbitral proceedings commenced before the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 (23rd October, 2015); (ii) court proceedings arising out of or in relation to such arbitral proceedings irrespective of whether such court proceedings are commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015; (b) apply only to arbitral proceedings commenced on or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 and to court proceedings arising out of or in relation to such arbitral proceedings.] 1. Ins. by Act 33 of 2019, s. 13 (r.w.e.f. 30-8-2019). 37 ----- 38 ----- THE FIRST SCHEDULE (See section 44) CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL AWARDS _ARTICLE 1_ 1. This Convention shall apply to the recognition and enforcement of arbitral awards made in the territory of a State other than the State where the recognition and enforcement of such awards are sought, and arising out of differences between persons, whether physical or legal. It shall also apply to arbitral awards not considered as domestic awards in the State where their recognition and enforcement are sought. 2. The term “arbitral awards” shall include not only awards made by arbitrators appointed for each case but also those made by permanent arbitral bodies to which the parties have submitted. 3. When signing, ratifying or acceding to this Convention, or notifying extension under article X hereof, any State may on the basis of reciprocity declare that it will apply the Convention to the recognition and enforcement of awards made only in the territory of another Contracting State. It may also declare that it will apply the Convention only to differences arising out of legal relationships, whether contractual or not, which are considered as commercial under the national law of the State making such declaration. _ARTICLE II_ 1. Each Contracting State shall recognise an agreement in writing under which the parties undertake to submit to arbitration all or any differences which have arisen or which may arise between them in respect of defined legal relationship, whether contractual or not, concerning a subject-matter capable of settlement by arbitration. 2. The term “agreement in writing” shall include an arbitral clause in a contract or an arbitration agreement, signed by the parties or contained in an exchange of letters or telegrams. 3. The court of a Contracting State, when seized of an action in a matter in respect of which the parties have made an agreement within the meaning of this article, shall, at the request of one of the parties, refer the parties to arbitration, unless in finds that the said agreement is null and void, inoperative of incapable of being performed. _ARTICLE III_ Each Contracting State shall recognize arbitral awards as binding and enforce them in accordance with the rules of procedure of the territory where the award is relied upon, under the conditions laid down in the following articles. There shall not be imposed substantially more onerous conditions or higher fees or charges on the recognition or enforcement of arbitral awards to which this Convention applies than are imposed on the recognition or enforcement of domestic arbitral awards. _ARTICLE IV_ 1. To obtain the recognition and enforcement mentioned in the preceding article, the party applying for recognition and enforcement shall, at the time of the application, supply— (a) the duly authenticated original award or a duly certified copy thereof; (b) the original agreement referred to in article II or a duly certified copy thereof. 2. If the said award or agreement is not made in an official language of the country in which the award is relied upon, the party applying for recognition and enforcement of the award shall produce a translation of these documents into such language. The translation shall be certified by an official or sworn translator or by a diplomatic or consular agent. 39 ----- _ARTICLE V_ 1. Recognition and enforcement of the award may be refused, at the request of the party against whom it is invoked, only if that party furnishes to the competent authority where the recognition and enforcement is sought, proof that— (a) the parties to the agreement referred to in article II were, under the law applicable to them, under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made; or (b) the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings or was otherwise unable to present his case; or (c) the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognised and enforced; or (d) the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place; or (e) the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made. 2. Recognition and enforcement of an arbitral award may also be refused if the competent authority in the country where recognition and enforcement is sought finds that— (a) the subject-matter of the difference is not capable of settlement by arbitration under the law of that country; or (b) the recognition or enforcement of the award would be contrary to the public policy of that country. _ARTICLE VI_ If an application for the setting aside or suspension of the award has been made to a competent authority referred to in article V(1)(e), the authority before which the award is sought to be relied upon may, if it considers it proper, adjourn the decision on the enforcement of the award and may also, on the application of the party claiming enforcement of the award, order the other party to give suitable security. _ARTICLE VII_ 1. The provisions of the present Convention shall not affect the validity of multilateral or bilateral agreements concerning the recognition and enforcement of arbitral awards entered into by the Contracting States nor deprive any interested party of any right the may have to avail himself of an arbitral award in the manner and to the extent allowed by the law or the treaties of the country where such award is sought to be relied upon. 2. The Geneva Protocol on Arbitration Clauses of 1923 and the Geneva Convention on the Execution of Foreign Arbitral Awards of1927 shall cease to have effect between Contracting States on their becoming bound and to the extent that they become bound by this Convention. _ARTICLE VIII_ 1. This Convention shall be open until 31st December, 1958 for signature on behalf of any Member of the United Nations and also on behalf of any other State which is or hereafter becomes member of any specialised agency of the United Nations, or which is or hereafter becomes a party to the Statute of the International Court of Justice, or any other State to which an invitation has been addressed by the General Assembly of the United Nations. 2. This Convention shall be ratified and the instrument of ratification shall be deposited with the Secretary-General of the United Nations. _ARTICLE 1X_ 1. This Convention shall be open for accession to all States referred to in article VIII. 2. Accession shall be effected by the deposit of an instrument of accession with the Secretary-General of the United Nations. 40 ----- _ARTICLE X_ 1. Any State may, at the time of signature, ratification or accession, declare that this Convention shall extend to all or any of the territories for the international relations of which it is responsible. Such a declaration shall take effect when the Convention enters into force for the State concerned. 2. At any time thereafter any such extension shall be made by notification addressed to the Secretary General of the United Nations and shall take effect as from the ninetieth day after the day of receipt by the Secretary-General of the United Nations of this notification, or as from the date of entry into force of the Convention for the State concerned, whichever is the later. 3. With respect to those territories to which this Convention is not extended at the time of signature, ratification or accession, each State concerned shall consider the possibility of taking the necessary steps in order to extend the application of this Convention to such territories, subject, where necessary for constitutional reasons, to the consent of the Governments of such territories. _ARTICLE XI_ In the case of a federal or non-unitary State, the following provisions shall apply:— (a) with respect of those articles of this Convention that come within the legislative jurisdiction of the federal authority, the obligations of the federal Government shall to this extent be the same as those of Contracting States which are not federal States; (b) with respect to those articles of this Convention that come within the legislative jurisdiction of constituent States or provinces which are not, under the constitutional system of the federation, bound to take legislative action, the federal Government shall bring such articles with a favourable recommendation to the notice of the appropriate authorities of constituent States or provinces at the earliest possible moment; (c) a federal State Party to this Convention shall, at the request of any other Contracting State transmitted through the Secretary-General of the United Nations, supply a statement of the law and practice of the federation and its constituent units in regard to any particular provision of this Convention, showing the extent to which effect has been given to that provision by legislative or other action. _ARTICLE XII_ 1. This Convention shall come into force on the ninetieth day following the date of deposit of the third instrument of ratification or accession. 2. For each State ratifying or acceding to this Convention after the deposit of the third instrument of ratification or accession, this Convention shall enter into force on the ninetieth day after deposit by such State of its instrument of ratification or accession. _ARTICLE XIII_ 1. Any Contracting State may denounce this Convention by a written notification to the Secretary General of the United Nations. Denunciation shall take effect one year after the date of receipt of the notification by the Secretary-General. 2. Any State which has made a declaration or notification under article X may, at any time thereafter, by notification to the Secretary-General of the United Nations, declare that this Convention shall cease to extend to the territory concerned one year after the date of the receipt of the notification by the SecretaryGeneral. 3. This Convention shall continue to be applicable to arbitral awards in respect of which recognition or enforcement proceedings have been instituted before the denunciation takes effect. _ARTICLE XIV_ A Contracting State shall not be entitled to avail itself of the present Convention against other Contracting States except to the extent that it is itself bound to apply the Convention. 41 ----- _ARTICLE XV_ The Secretary-General of the United Nations shall notify the States contemplated in article VIII of the following:— (a) signatures and ratifications in accordance with article VIII; (b) accessions in accordance with article IX; (c) declarations and notifications under articles I, X and XI; (d) the date upon which this Convention enters into force in accordance with article XII; (e) denunciations and notifications in accordance with article XIII. _ARTICLE XVI_ 1. This Convention, of which the Chinese, English, French, Russian and Spanish texts shall be equally authentic, shall be deposited in the archives of the United Nations. 2. The Secretary-General of the United Nations shall transmit a certified copy of this Convention to the States contemplated in article XIII. 42 ----- THE SECOND SCHEDULE (See section 53) PROTOCOL ON ARBITRATION CLAUSES The undersigned, being duly authorised, declare that they accept, on behalf of the countries which they represent, the following provisions:— 1. Each of the Contracting States recognises the validity of an agreement whether relating to existing or future differences between parties subject respectively to the jurisdiction of different Contracting States by which the parties to a contract agree to submit to arbitration all or any differences that may arise in connection with such contract relating to commercial matters or to any other matter capable of settlement by arbitration, whether or not the arbitration is to take place in a country to whose jurisdiction none of the parties is subject. Each Contracting State reserves the right to limit the obligation mentioned above to contracts which are considered as commercial under its national law. Any Contracting State which avails itself of this right will notify the Secretary-General of the League of Nations in order that the other Contracting States may be so informed. 2. The arbitral procedure, including the constitution of the Arbitral Tribunal, shall be governed by the will of the parties and by the law of the country in whose territory the arbitration takes place. The Contracting States agree to facilitate all steps in the procedure which require to be taken in their own territories, in accordance with the provisions of their law governing arbitral procedure applicable to existing differences. 3. Each Contracting State undertakes to ensure the execution by its authorities and in accordance with the provisions of its national laws of arbitral awards made in its own territory under the preceding articles. 4. The Tribunals of the Contracting Parties, on being seized of a dispute regarding a contract made between persons to whom Article I applies and including an Arbitration Agreement whether referring to present or future differences which is valid in virtue of the said article and capable of being carried into effect, shall refer the parties on the application of either of them to the decision of the Arbitrators. Such reference shall not prejudice the competence of the judicial tribunals in case the agreement or the arbitration cannot proceed or becomes inoperative. 5. The present Protocol, which shall remain open for signature by all States, shall be ratified. The ratification shall be deposited as soon as possible with the Secretary-General of the League of Nations, who shall notify such deposit to all the Signatory States. 6. The present Protocol will come into force as soon as two ratifications have been deposited. Thereafter it will take effect, in the case of each Contracting State, one month after the notification by the Secretary-General of the deposit of its ratification. 7. The present Protocol may be denounced by any Contracting State on giving one year's notice. Denunciation shall be effected by a notification addressed to the Secretary-General of the League, who will immediately transmit copies of such notification to all the other Signatory States and inform them of the date on which it was received. The denunciation shall take effect one year after the date on which it was notified to the Secretary-General, and shall operate only in respect of the notifying State. 8. The Contracting States may declare that their acceptance of the present Protocol does not include any or all of the under mentioned territories: that is to say, their colonies, overseas possessions or territories, protectorates or the territories over which they exercise a mandate. The said States may subsequently adhere separately on behalf of any territory thus excluded. The Secretary-General of the League of Nations shall be informed as soon as possible of such adhesions. He shall notify such adhesions to all Signatory States. They will take effect one month after the notification by the Secretary-General to all Signatory States. The Contracting States may also denounce the Protocol separately on behalf of any of the territories referred to above. Article 7applies to such denunciation. 43 ----- THE THIRD SCHEDULE (See section 53) CONVENTION ON THE EXECUTION OF FOREIGN ARBITRAL AWARDS _ARTICLE 1.—(1) In the territories of any High Contracting Party to which the present Convention_ applies, an arbitral award made in pursuance of an agreement whether relating to existing or future differences (hereinafter called “a submission to arbitration”) covered by the Protocol on Arbitration Clauses opened at Geneva on September 24th,1923, shall be recognised as binding and shall be enforced in accordance with the rules of the procedure of the territory where the award is relied upon, provided that the said award has been made in a territory of one of the High Contracting Parties to which the present Convention applies and between persons who are subject to the jurisdiction of one of the High Contracting Parties. (2) To obtain such recognition or enforcement, it shall, further, be necessary:— (a) that the award has been made in pursuance of a submission to arbitration which is valid under the law applicable thereto; (b) that the subject-matter of the award is capable of settlement by arbitration under the law of the country in which the award is sought to be relied upon; (c) that the award has been made by the Arbitral Tribunal provided for in the submission to arbitration or constituted in the manner agreed upon by the parties and in conformity with the law governing the arbitration procedure; (d) that the award has become final in the country in which it has been made, in the sense that it will not be considered as such if it is open to opposition, appeal or _pourvoi en cassation_ (in the countries where such forms of procedure exist) or if it is proved that any proceedings for the purpose of contesting the validity of the award are pending; (e) that the recognition or enforcement of the award is not contrary to the public policy or to the principles of the law of the country in which it is sought to be relied upon. _ARTICLE 2.—Even if the conditions laid down in Article 1 hereof are fulfilled, recognition and_ enforcement of the award shall be refused if the Court is satisfied:— (a) that the award has been annulled in the country in which it was made; (b) that the party against whom it is sought to use the award was not given notice of the arbitration proceedings in sufficient time to enable him to present his case; or that, being under a legal incapacity, he was not properly represented; (c) that the award does not deal with the differences contemplated by or falling within the terms of the submission to arbitration or that it contains decisions on matters beyond the scope of the submission to arbitration. If the award has not covered all the questions submitted to the arbitral tribunal, the competent authority of the country where recognition or enforcement of the award is sought can, if it thinks fit, postpone such recognition or enforcement or grant it subject to such guarantee as that authority may decide. _ARTICLE 3.—If the party against whom the award has been made proves that, under the law_ governing the arbitration procedure, there is aground, other than the grounds referred to in Article 1(a) and (c), and Article 2(b) and (c), entitling him to contest the validity of the award in a Court of Law, the Court may, if it thinks fit, either refuse recognition or enforcement of the award or adjourn the consideration thereof, giving such party a reasonable time within which to have the award annulled by the competent tribunal. 44 ----- _ARTICLE 4.—The party relying upon an award or claiming its enforcement must supply, in_ particular:— (1) the original award or a copy thereof duly authenticated, according to the requirements of the law of the country in which it was made; (2) documentary or other evidence to prove that the award has become final, in the sense defined in Article 1(d), in the country in which it was made; (3) when necessary, documentary or other evidence to prove that the conditions laid down in Article 1, paragraph (1) and paragraph (2) (a) and (c), have been fulfilled. A translation of the award and of the other documents mentioned in this Article into the official language of the country where the award is sought to be relied upon may be demanded. Such translations must be certified correct by a diplomatic or consular agent of the country to which the party who seeks to rely upon the award belongs or by a sworn translator of the country where the award is sought to be relied upon. _ARTICLE 5.—The provisions of the above Articles shall not deprive any interested party of the right_ of availing himself of an arbitral award in the manner and to the extent allowed by the law or the treaties of the country where such award is sought to be relied upon. _ARTICLE 6.—The present Convention applies only to arbitral awards made after the coming into_ force of the Protocol on Arbitration Clauses opened at Geneva on September 24th, 1923. _ARTICLE 7.—The present Convention, which will remain open to the signature of all the signatories_ of the Protocol of 1923 on Arbitration Clauses, shall have been ratified. It may be ratified only on behalf of those Members of the League of Nations and Non-Member States on whose behalf the Protocol of 1923 shall have been ratified. Ratification shall be deposited as soon as possible with the Secretary-General of the League of Nations, who will notify such deposit to all the signatories. _ARTICLE 8.—The present Convention shall come into force three months after it shall have been_ ratified on behalf of two High Contracting Parties. Thereafter, it shall take effect, in the case of each High Contracting Party, three months after the deposit of the ratification on its behalf with the SecretaryGeneral of the League of Nations. _ARTICLE 9.—The present Convention may be denounced on behalf of any Member of the League or_ Non-Member State. Denunciation shall be notified in writing to the Secretary-General of the League of Nations, who will immediately send a copy thereof, certified to be inconformity with the notifications, to all the other Contracting Parties, at the same time informing them of the date on which he received it. The denunciation shall come into force only in respect of the High Contracting Party which shall have notified it and one year after such notification shall have reached the Secretary-General of the League of Nations. The denunciation of the Protocol on Arbitration Clauses shall entail, ipso facto, the denunciation of the present Convention. _ARTICLE 10.—The present Convention does not apply to the colonies, protectorates or territories_ under suzerainty or mandate of any High Contracting Party unless they are specially mentioned. The application of this Convention to one or more of such colonies, protectorates or territories to which the Protocol on Arbitration Clauses opened at Geneva on September 24th, 1923, applies, can be effected at any time by means of a declaration addressed to the Secretary-General of the League of Nations by one of the High Contracting Parties. Such declaration shall take effect three months after the deposit thereof. The High Contracting Parties can at any time denounce the Convention for all or any of the colonies, protectorates or territories referred to above. Article 9 hereof applied to such denunciation. _ARTICLE 11.—A certified copy of the present Convention shall be transmitted by the Secretary-_ General of the League of Nations of every Member of the League of Nations and to every Non-Member State which signs the same. 45 ----- 1[THE FOURTH SCHEDULE [See section 11(14)] Sum in dispute Model fee Up to Rs. 5,00,000 Rs. 45,000 Above Rs. 5,00,000 and up to Rs. 20,00,000 Rs. 45,000 plus 3.5 per cent. of the claim amount over and above Rs. 5,00,000 Above Rs. 20,00,000 and up to Rs. 1,00,00,000 Rs. 97,500 plus 3 per cent. of the claim amount over and above Rs. 20,00,000 Above Rs. 1,00,00,000 and up to Rs. 10,00,00,000 Above Rs. 10,00,00,000 and up to Rs. 20,00,00,000 Rs. 3,37,500 plus 1 per cent. of the claim amount over and above Rs. 1,00,00,000 Rs. 12,37,500 plus 0.75 per cent. of the claim amount over and above Rs. 1,00,00,000 Above Rs. 20,00,00,000 Rs. 19,87,500 plus 0.5 per cent. of the claim amount over and above Rs. 20,00,00,000 with a ceiling of Rs. 30,00,000 **Note:—In the event, the arbitral tribunal is a sole arbitrator, he shall be entitled to an additional amount of** twenty-five per cent. on the fee payable as per the table set out above. 1. Ins. by Act 3 of 2016, s. 25 (w.e.f. 23-10-2015). 46 ----- THE FIFTH SCHEDULE [See section 12(1)(b)] The following grounds give rise to justifiable doubts as to the independence or impartiality of arbitrators: **Arbitrator’s relationship with the parties or counsel** 1. The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party. 2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. 3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties. 4. The arbitrator is a lawyer in the same law firm which is representing one of the parties. 5. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in the arbitration. 6. The arbitrator’s law firm had a previous but terminated involvement in the case without the arbitrator being involved himself or herself. 7. The arbitrator’s law firm currently has a significant commercial relationship with one of the parties or an affiliate of one of the parties. 8. The arbitrator regularly advises the appointing party or an affiliate of the appointing party even though neither the arbitrator nor his or her firm derives a significant financial income therefrom. 9. The arbitrator has a close family relationship with one of the parties and in the case of companies with the persons in the management and controlling the company. 10. A close family member of the arbitrator has a significant financial interest in one of the parties or an affiliate of one of the parties. 11.The arbitrator is a legal representative of an entity that is a party in the arbitration. 12. The arbitrator is a manager, director or part of the management, or has a similar controlling influence in one of the parties. 13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case. 14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the arbitrator or his or her firm derives a significant financial income therefrom. **Relationship of the arbitrator to the dispute** 15. The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an affiliate of one of the parties. 16. The arbitrator has previous involvement in the case. **Arbitrator’s direct or indirect interest in the dispute** 17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held. 18. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute. 19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party in the dispute. 47 ----- **Previous services for one of the parties or other involvement in the case** 20. The arbitrator has within the past three years served as counsel for one of the parties or an affiliate of one of the parties or has previously advised or been consulted by the party or an affiliate of the party making the appointment in an unrelated matter, but the arbitrator and the party or the affiliate of the party have no ongoing relationship. 21. The arbitrator has within the past three years served as counsel against one of the parties or an affiliate of one of the parties in an unrelated matter. 22. The arbitrator has within the past three years been appointed as arbitrator on two or more occasions by one of the parties or an affiliate of one of the parties. 23. The arbitrator’s law firm has within the past three years acted for one of the parties or an affiliate of one of the parties in an unrelated matter without the involvement of the arbitrator. 24. The arbitrator currently serves, or has served within the past three years, as arbitrator in another arbitration on a related issue involving one of the parties or an affiliate of one of the parties. **Relationship between an arbitrator and another arbitrator or counsel** 25. The arbitrator and another arbitrator are lawyers in the same law firm. 26. The arbitrator was within the past three years a partner of, or otherwise affiliated with, another arbitrator or any of the counsel in the same arbitration. 27. A lawyer in the arbitrator’s law firm is an arbitrator in another dispute involving the same party or parties or an affiliate of one of the parties. 28. A close family member of the arbitrator is a partner or employee of the law firm representing one of the parties, but is not assisting with the dispute. 29. The arbitrator has within the past three years received more than three appointments by the same counsel or the same law firm. **Relationship between arbitrator and party and others involved in the arbitration** 30. The arbitrator’s law firm is currently acting adverse to one of the parties or an affiliate of one of the parties. 31. The arbitrator had been associated within the past three years with a party or an affiliate of one of the parties in a professional capacity, such as a former employee or partner. **Other circumstances** 32. The arbitrator holds shares, either directly or indirectly, which by reason of number or denomination constitute a material holding in one of the parties or an affiliate of one of the parties that is publicly listed. 33. The arbitrator holds a position in an arbitration institution with appointing authority over the dispute. 34. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties, where the affiliate is not directly involved in the matters in dispute in the arbitration. _Explanation_ 1.—The term “close family member” refers to a spouse, sibling, child, parent or life partner. _Explanation 2.—The term “affiliate” encompasses all companies in one group of companies including_ the parent company. _Explanation 3.—For the removal of doubts, it is clarified that it may be the practice in certain specific_ kinds of arbitration, such as maritime or commodities arbitration, to draw arbitrators from a small, specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out above. 48 ----- THE SIXTH SCHEDULE [See section 12(1)(b)] NAME: CONTACT DETAILS: PRIOR EXPERIENCE (INCLUDING EXPERIENCE WITH ARBITRATIONS): NUMBER OF ONGOING ARBITRATIONS: CIRCUMSTANCES DISCLOSING ANY PAST OR PRESENT RELATIONSHIP WITH ORINTEREST IN ANY OF THE PARTIES OR IN RELATION TO THE SUBJECT-MATTER INDISPUTE, WHETHER FINANCIAL, BUSINESS, PROFESSIONAL OR OTHER KIND, WHICH IS LIKELY TO GIVE RISE TO JUSTIFIABLE DOUBTS AS TO YOURINDEPENDENCE OR IMPARTIALITY (LIST OUT): CIRCUMSTANCES WHICH ARE LIKELY TO AFFECT YOUR ABILITY TO DEVOTE SUFFICIENT TIME TO THE ARBITRATION AND IN PARTICULAR YOUR ABILITY TO FINISH THE ENTIRE ARBITRATION WITHIN TWELVE MONTHS (LIST OUT): 49 ----- THE SEVENTH SCHEDULE [See section 12(5)] **Arbitrator’s relationship with the parties or counsel** 1. The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party. 2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. 3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties. 4. The arbitrator is a lawyer in the same law firm which is representing one of the parties. 5. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in the arbitration. 6. The arbitrator’s law firm had a previous but terminated involvement in the case without the arbitrator being involved himself or herself. 7. The arbitrator’s law firm currently has a significant commercial relationship with one of the parties or an affiliate of one of the parties. 8. The arbitrator regularly advises the appointing party or an affiliate of the appointing party even though neither the arbitrator nor his or her firm derives a significant financial income therefrom. 9. The arbitrator has a close family relationship with one of the parties and in the case of companies with the persons in the management and controlling the company. 10. A close family member of the arbitrator has a significant financial interest in one of the parties or an affiliate of one of the parties. 11. The arbitrator is a legal representative of an entity that is a party in the arbitration. 12. The arbitrator is a manager, director or part of the management, or has a similar controlling influence in one of the parties. 13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case. 14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the arbitrator or his or her firm derives a significant financial income therefrom. **Relationship of the arbitrator to the dispute** 15. The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an affiliate of one of the parties. 16. The arbitrator has previous involvement in the case. **Arbitrator’s direct or indirect interest in the dispute** 17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held. 18. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute. 19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party in the dispute. _Explanation_ 1.—The term “close family member” refers to a spouse, sibling, child, parent or life partner. _Explanation 2.—The term “affiliate” encompasses all companies in one group of companies including_ the parent company. _Explanation 3.—For the removal of doubts, it is clarified that it may be the practice in certain specific_ kinds of arbitration, such as maritime or commodities arbitration, to draw arbitrators from a small, specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out above.] 50 ----- [THE EIGHTH SCHEDULE.] Omitted by the Arbitration and Conciliation (Amendment) Act, 2021 (3 of 2021), s. 4 (w.e.f. 4-11-2020). 51 ----- APPENDIX EXTRACTS FROM THE ARBITRATION AND CONCILIATION (AMENDMENT) ACT, 2015 (3 OF 2016) - - - - **1. Short title and commencement.—(1) This Act may be called the Arbitration and Conciliation** (Amendment) Act, 2015. (2) It shall be deemed to have come into force on the 23rd October, 2015. - - - - **26. Act not to apply to pending arbitral proceedings.—Nothing contained in this Act shall apply to** the arbitral proceedings commenced, in accordance with the provisions of section 21 of the principal Act, before the commencement of this Act unless the parties otherwise agree but this Act shall apply in relation to arbitral proceedings commenced on or after the date of commencement of this Act. **27. Repeal and savings.—(1) The Arbitration and Conciliation (Amendment) Ordinance,** 2015 (Ord. 9 of 2015), is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of the principal Act, as amended by this Act. 52 -----
19-Aug-1996
28
The Building and Other Construction Workers Welfare Cess Act, 1996
https://www.indiacode.nic.in/bitstream/123456789/1948/1/A1996__28.pdf
central
# THE BUILDING AND OTHER CONSTRUCTION WORKERS’ WELFARE CESS ACT, 1996 ________ ARRANGEMENT OF SECTIONS _______ SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Levy and collection of cess. 4. Furnishing of returns. 5. Assessment of cess. 6. Power to exempt. 7. Power of entry. 8. Interest payable on delay in payment of cess. 9. Penalty for non-payment of cess within the specified time. 10. Recovery of amount due under the Act. 11. Appeals. 12. Penalty. 13. Offences by companies. 14. Power to make rules. 15. Repeal and saving. 1 ----- # THE BUILDING AND OTHER CONSTRUCTION WORKERS’ WELFARE CESS ACT, 1996 ACT NO. 28 OF 1996 [19th August, 1996.] # An Act to provide for the levy and collection of a cess on the cost of construction incurred by employers with a view to augmenting the resources of the Building and Other Construction Workers’ Welfare Boards constituted under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996. BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the Building and Other** Construction Workers’ Welfare Cess Act, 1996. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 3rd day of November, 1995. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Board” means a Building and Other Construction Workers’ Welfare Board constituted by a State Government under sub-section (1) of section 18 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996); (b) “Fund” means the Building and Other Construction Workers’ Welfare Fund constituted by a Board; (c) “prescribed” means prescribed by rules made under this Act; (d) words and expressions used herein but not defined and defined in the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996) shall have the meanings respectively assigned to them in that Act. **3. Levy and collection of cess.—(1) There shall be levied and collected a cess for the purposes of the** Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996), at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification in the Official Gazette, from time to time specify. (2) The cess levied under sub-section (1) shall be collected from every employer in such manner and at such time, including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking or advance collection through a local authority where an approval of such building or other construction work by such local authority is required, as may be prescribed. (3) The proceeds of the cess collected under sub-section (2) shall be paid by the local authority or the State Government collecting the cess to the Board after deducting the cost of collection of such cess not exceeding one per cent. of the amount collected. (4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable under this Act including payment of such cess in advance may, subject to final assessment to be made, be collected at a uniform rate or rates as may be prescribed on the basis of the quantum of the building or other construction work involved. 2 ----- **STATE AMENDMENTS** **Uttar Pradesh** **Amendment of section 3 of Act no. 28 of 1996.—In section 3 of the Building and Other** Construction Workers’ Welfare Cess Act, 1996, in sub-section (1) the following explanation shall be inserted at the end, namely: “Explanation:-For the purpose of levy of cess under this sub-section cost of construction shall include all expenditure incurred by an employer in connection with the building or other construction work but shall not include (a) cost of land; (b) any compensation paid or payable to a worker or his dependents under the Employees’s Compensation Act, 1923; (c) expenditure uncured on such plant, equipments installed or upgraded which are not part of construction activity; (d) machines such as MRI, CT Scan, Dialysis machine etc. used for treatment of patients in hospitals.” [Vide the Uttar Pradesh Act 28 of 2018, s. 2] **4. Furnishing of returns.—(1) Every employer shall furnish such return to such officer or authority,** in such manner and at such time as may be prescribed. (2) If any person carrying on the building or other construction work, liable to pay the cess under section 3, fails to furnish any return under sub-section (1), the officer or the authority shall give a notice requiring such person to furnish such return before such date as may be specified in the notice. **5. Assessment of cess.—(1) The officer or authority to whom or to which the return has been** furnished under section 4 shall, after making or causing to be made such inquiry as he or it thinks fit and after satisfying himself or itself that the particulars stated in the return are correct, by order, assess the amount of cess payable by the employer. (2) If the return has not been furnished to the officer or authority under sub-section (2) of section 4, he or it shall, after making or causing to be made such inquiry as he or it thinks fit, by order, assess the amount of cess payable by the employer. (3) An order of assessment made under sub-section (1) or sub-section (2) shall specify the date within which the cess shall be paid by the employer. **6. Power to exempt.—Notwithstanding anything contained in this Act, the Central Government may,** by notification in the Official Gazette, exempt any employer or class of employers in a State from the payment of cess payable under this Act where such cess is already levied and payable under any corresponding law in force in that State. 7. Power of entry.—Any officer or authority of the State Government specially empowered in this behalf by that Government may— (a) with such assistance, if any, as he or it may think fit, enter at any reasonable time any place where he or it considers it necessary to enter for carrying out the purposes of this Act including verification of the correctness of any particulars furnished by any employer under section 4; (b) do within such place anything necessary for the proper discharge of his or its duties under this Act; and (c) exercise such other powers as may be prescribed. **8. Interest payable on delay in payment of cess.—If any employer fails to pay any amount of cess** payable under section 3 within the time specified in the order of assessment, such employer shall be liable to pay interest on the amount to be paid at the rate of two per cent. for every month or part of a month comprised in the period from the date on which such payment is due till such amount is actually paid. 3 ----- **9. Penalty for non-payment of cess within the specified time.—If any amount of cess payable by** any employer under section 3 is not paid within the date specified in the order of assessment made under section 5, it shall be deemed to be in arrears and the authority prescribed in this behalf may, after making such inquiry as it deems fit, impose on such employer a penalty not exceeding the amount of cess: Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section. **10. Recovery of amount due under the Act.—Any amount due under this Act (including any** interest or penalty) from an employer may be recovered in the same manner as an arrear of land revenue. **11. Appeals.—(1) Any employer aggrieved by an order of assessment made under section 5 or by an** order imposing penalty made under section 9 may, within such time as may be prescribed, appeal to such appellate authority in such form and in such manner as may be prescribed. (2) Every appeal preferred under sub-section (1) shall be accompanied by such fees as may be prescribed. (3) After the receipt of any appeal under sub-section (1), the appellate authority shall, after giving the appellant an opportunity of being heard in the matter, dispose of the appeal as expeditiously as possible. (4) Every order passed in appeal under this section shall be final and shall not be called in question in any court of law. **12. Penalty.—(1) Whoever, being under an obligation to furnish a return under this Act, furnishes** any return knowing, or having reason to believe, the same to be false shall be punishable with imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both. (2) Whoever, being liable to pay cess under this Act, wilfully or intentionally evades or attempts to evade the payment of such cess shall be punishable with imprisonment which may extend to six months, or with fine, or with both. (3) No court shall take cognizance of an offence punishable under this section save on a complaint made by or under the authority of the Central Government. **13. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **14. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. 4 ----- (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner in which and the time within which the cess shall be collected under sub-section (2) of section 3; (b) the rate or rates of advance cess leviable under sub-section (4) of section 3; (c) the particulars of the returns to be furnished, the officer or authority to whom or to which such returns shall be furnished and the manner and time of furnishing such returns under sub-section (1) of section 4; (d) the powers which may be exercised by the officer or authority under section 7; (e) the authority which may impose penalty under section 9; (f) the authority to which an appeal may be filed under sub-section (1) of section 11 and the time within which and the form and manner in which such appeal may be filed; (g) the fees which shall accompany an appeal under sub-section (2) of section 11; and (h) any other matter which has to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **15. Repeal and saving.—(1) The Building and Other Construction Workers’ Welfare Cess Third** Ordinance, 1996 (Ord. 26 of 1996), is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 5 -----
19-Aug-1996
27
The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
https://www.indiacode.nic.in/bitstream/123456789/1989/1/A1996__27.pdf
central
# THE BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 ___________ # ARRANGEMENT OF SECTIONS # ___________ [CHAPTER I](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER I) [PRELIMINARY](http://clc.gov.in/Acts/shtm/bocw.php#PRELIMINARY) SECTIONS 1. [Short title, extent, commencement and application.](http://clc.gov.in/Acts/shtm/bocw.php#Short title, extent, commencement) 2. [Definitions.](http://clc.gov.in/Acts/shtm/bocw.php#Definitions.) [CHAPTER II](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER II) [THE ADVISORY COMMITTEES AND EXPERT COMMITTEES](http://clc.gov.in/Acts/shtm/bocw.php#THE ADVISORY COMMITTEES AND EXPERT COMMITTEES) 3. [Central Advisory Committee.](http://clc.gov.in/Acts/shtm/bocw.php#Central Advisory Committee) 4. [State Advisory Committee.](http://clc.gov.in/Acts/shtm/bocw.php#State Advisory Committee) 5. [Expert committees.](http://clc.gov.in/Acts/shtm/bocw.php#Expert Committees) [CHAPTER III](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER III) [REGISTRATION OF ESTABLISHMENTS](http://clc.gov.in/Acts/shtm/bocw.php#REGISTRATION OF ESTABLISHMENTS) 6. [Appointment of registering officers.](http://clc.gov.in/Acts/shtm/bocw.php#Appointment of registering officers) 7. [Registration of establishments.](http://clc.gov.in/Acts/shtm/bocw.php#REGISTRATION OF ESTABLISHMENTS) 8. [Revocation of registration in certain cases.](http://clc.gov.in/Acts/shtm/bocw.php#Revocation of registration in certain cases) 9. [Appeal.](http://clc.gov.in/Acts/shtm/bocw.php#Appeal) 10. [Effect of non-registration.](http://clc.gov.in/Acts/shtm/bocw.php#Effect of non-registration) [CHAPTER IV](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER IV) [REGISTRATION OF BUILDING WORKERS AS BENEFICIARIES](http://clc.gov.in/Acts/shtm/bocw.php#REGISTRATION OF BUILDING WORKERS AS BENEFICIARIES) 11. [Beneficiaries of the Fund.](http://clc.gov.in/Acts/shtm/bocw.php#Beneficiaries of the Fund.) 12. [Registration of building workers as beneficiaries.](http://clc.gov.in/Acts/shtm/bocw.php#Registration of building workers as) 13. [Identity cards.](http://clc.gov.in/Acts/shtm/bocw.php#Identity cards) 14. [Cessation as a beneficiary.](http://clc.gov.in/Acts/shtm/bocw.php#Cessation as a beneficiary) 15. [Register of beneficiaries.](http://clc.gov.in/Acts/shtm/bocw.php#Register of beneficiaries) 16. [Contribution of building workers.](http://clc.gov.in/Acts/shtm/bocw.php#Contribution of building workers) 17. [Effect of non-payment of contribution.](http://clc.gov.in/Acts/shtm/bocw.php#Effect of non-payment of contribution) [CHAPTER V](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER V) [BUILDING AND OTHER CONSTRUCTION WORKERS’ WELFARE BOARDS](http://clc.gov.in/Acts/shtm/bocw.php#BUILDING AND OTHER CONSTRUCTION WORKERS) 18. [Constitution of State Welfare Boards.](http://clc.gov.in/Acts/shtm/bocw.php#Constitution of State Welfare Boards.) 19. [Secretary and other officers of Boards.](http://clc.gov.in/Acts/shtm/bocw.php#Secretary and other officers of Boards) 20. [Meetings of Boards.](http://clc.gov.in/Acts/shtm/bocw.php#Meetings of Board) 21. [Vacancies, etc., not to invalidate proceedings of the Boards.](http://clc.gov.in/Acts/shtm/bocw.php#Vacancies) 22. [Functions of the Boards.](http://clc.gov.in/Acts/shtm/bocw.php#Functions of the Boards) 23. [Grants and loans by the Central Government.](http://clc.gov.in/Acts/shtm/bocw.php#Grants and loans by the Central Government) 24. [Building and Other Construction Workers’ Welfare Fund and its application.](http://clc.gov.in/Acts/shtm/bocw.php#Building and Other Construction Workers welfare) ----- SECTIONS 25. [Budget.](http://clc.gov.in/Acts/shtm/bocw.php#Budget) 26. [Annual report.](http://clc.gov.in/Acts/shtm/bocw.php#Annual report) 27. [Accounts and audit.](http://clc.gov.in/Acts/shtm/bocw.php#Accounts and audit) [CHAPTER VI](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER VI) [HOURS OF WORK, WELFARE MEASURES AND OTHER CONDITIONS OF SERVICE OF BUILDING WORKERS](http://clc.gov.in/Acts/shtm/bocw.php#HOURS OF WORK, WELFARE MEASURES AND OTHER CONDITIONS OF SERVICE OF BUILDING WORKERS) 28. [Fixing hours for normal working day, etc.](http://clc.gov.in/Acts/shtm/bocw.php#Fixing hours for normal working day) 29. [Wages for overtime work.](http://clc.gov.in/Acts/shtm/bocw.php#Wages for overtime work) 30. [Maintenance of registers and records.](http://clc.gov.in/Acts/shtm/bocw.php#Maintenance of registers and records) 31. [Prohibition of employment of certain persons in certain building or other construction work.](http://clc.gov.in/Acts/shtm/bocw.php#Prohibition of employment of certain persons in certain building or other construction work) 32. [Drinking water.](http://clc.gov.in/Acts/shtm/bocw.php#Drinking water) 33. [Latrines and urinals.](http://clc.gov.in/Acts/shtm/bocw.php#Latrines and urinals) 34. [Accommodation.](http://clc.gov.in/Acts/shtm/bocw.php#Accommodation) 35. [Creches.](http://clc.gov.in/Acts/shtm/bocw.php#Creches) 36. [First-aid](http://clc.gov.in/Acts/shtm/bocw.php#First-aid) 37. [Canteens, etc.](http://clc.gov.in/Acts/shtm/bocw.php#Canteens) [CHAPTER VII](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER VII) [SAFETY AND HEALTH MEASURES](http://clc.gov.in/Acts/shtm/bocw.php#SAFETY AND HEALTH MEASURES) 38. [Safety Committee and safety officers.](http://clc.gov.in/Acts/shtm/bocw.php#Safety Committee and safety officers) 39. [Notice of certain accidents.](http://clc.gov.in/Acts/shtm/bocw.php#Notice of certain accidents) 40. [Power of appropriate Government to make rules for the safety and health of building workers.](http://clc.gov.in/Acts/shtm/bocw.php#Power of appropriate Government to makes rules for the safety and health of building workers) 41. [Framing of model rules for safety measures.](http://clc.gov.in/Acts/shtm/bocw.php#Framing of model rules for safety measures) [CHAPTER VIII](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER VIII) [INSPECTING STAFF](http://clc.gov.in/Acts/shtm/bocw.php#INSPECTING STAFF) 42. [Appointment of Director-General, Chief Inspector and Inspectors.](http://clc.gov.in/Acts/shtm/bocw.php#Appointment of Director-General, Chief Inspector and Inspectors) 43. [Powers of Inspectors.](http://clc.gov.in/Acts/shtm/bocw.php#Powers of Inspectors) [CHAPTER IX](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER IX) SPECIAL PROVISIONS 44. [Responsibility of employers.](http://clc.gov.in/Acts/shtm/bocw.php#Responsibility of employers) 45. [Responsibility for payment of wages and compensation.](http://clc.gov.in/Acts/shtm/bocw.php#Responsibility for payment of wages and compensation) 46. [Notice of commencement of building or other construction work.](http://clc.gov.in/Acts/shtm/bocw.php#Notice of commencement of building or other construction work) [CHAPTER X](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER X) [PENALTIES AND PROCEDURE](http://clc.gov.in/Acts/shtm/bocw.php#PENALTIES AND PROCEDURE) 47. [Penalty for contravention of provisions regarding safety measures.](http://clc.gov.in/Acts/shtm/bocw.php#Penalty for contravention of provisions regarding safety measures) 48. [Penalty for failure to give notice of the commencement of the building or other construction](http://clc.gov.in/Acts/shtm/bocw.php#Penalty for failure to give notice of the commencement of the building or other construction work) work. 49. [Penalty for obstructions.](http://clc.gov.in/Acts/shtm/bocw.php#Penalty for obstructions) 50. [Penalty for other offences.](http://clc.gov.in/Acts/shtm/bocw.php#Penalty for other offences) 51. [Appeal.](http://clc.gov.in/Acts/shtm/bocw.php#51.Appeal) 52. [Recovery of penalty.](http://clc.gov.in/Acts/shtm/bocw.php#52. Recovery of penalty) ----- SECTIONS 53. [Offences by companies.](http://clc.gov.in/Acts/shtm/bocw.php#53. Offences by companies) 54. [Cognizance of offences.](http://clc.gov.in/Acts/shtm/bocw.php#54. Cognizance of offences.) 55. [Limitation of prosecutions.](http://clc.gov.in/Acts/shtm/bocw.php#55. Limitation of prosecutions) [CHAPTER XI](http://clc.gov.in/Acts/shtm/bocw.php#CHAPTER XI) [MISCELLANEOUS](http://clc.gov.in/Acts/shtm/bocw.php#MISCELLANEOUS) 56. [Delegation of powers.](http://clc.gov.in/Acts/shtm/bocw.php#56. Delegation of powers) 57. [Returns.](http://clc.gov.in/Acts/shtm/bocw.php#57. Returns) 58. [Application of Act 8 of 1923 to building workers.](http://clc.gov.in/Acts/shtm/bocw.php#58. Application of Act 8 of 1923 to building workers) 59. [Protection of action taken in good faith.](http://clc.gov.in/Acts/shtm/bocw.php#59. Protection of action taken in good faith) 60. [Power of Central Government to give directions.](http://clc.gov.in/Acts/shtm/bocw.php#60. Power of Central Government to give directions) 61. [Power to remove difficulties.](http://clc.gov.in/Acts/shtm/bocw.php#61. Power to remove difficulties) 62. [Power to make rules.](http://clc.gov.in/Acts/shtm/bocw.php#62. Power to make rules) 63. [Saving of certain laws.](http://clc.gov.in/Acts/shtm/bocw.php#63. Saving of certain laws) 64. [Repeal and saving.](http://clc.gov.in/Acts/shtm/bocw.php#64. Repeal and saving) ----- # THE BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 # ACT NO. 27 OF 1996 [19th August, 1996.] # An Act to regulate the employment and conditions of service of building and other construction workers and to provide for their safety, health and welfare measures and for other matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, commencement and application.—(1) This Act may be called the Building** and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 1st day of March, 1996. (4) It applies to every establishment which employs, or had employed on any day of the preceding twelve months, ten or more building workers in any building or other construction work. _Explanation.—For the purposes of this sub-section, the building workers employed in different relays_ in a day either by the employer or the contractor shall be taken into account in computing the number of building workers employed in the establishment. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “appropriate Government” means,— (i) in relation to an establishment (which employs building workers either directly or through a contractor) in respect of which the appropriate Government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government; (ii) in relation to any such establishment, being a public sector undertaking, as the Central Government may by notification specify which employs building workers either directly or through a contractor, the Central Government; _Explanation.—For the purposes of sub-clause (ii), “public sector undertaking” means any_ corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) which is owned, controlled or managed by the Central Government; (iii) in relation to any other establishment which employs building workers either directly or through a contractor, the Government of the State in which that other establishment is situate; (b) “beneficiary” means a building worker registered under section 12; (c) “Board” means a Building and Other Construction Workers’ Welfare Board constituted under sub-section (1) of section 18; (d) ”building or other construction work” means the construction, alteration, repairs, maintenance or demolition, of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, flood control works (including storm water drainage works), generation, transmission and distribution of power, water works (including channels for distribution of water), oil and gas installations, electric lines, wireless, radio, television, telephone, telegraph and overseas communications, dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aqueducts, pipelines, towers, cooling towers, transmission towers and such other work as may be specified in this behalf by the appropriate Government, by notification but does not include ----- any building or other construction work to which the provisions of the Factories Act, 1948 (63 of 1948), or the Mines Act, 1952 (35 of 1952), apply; (e) “building worker” means a person who is employed to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be expressed or implied, in connection with any building or other construction work but does not include any such person— (i) who is employed mainly in a managerial or administrative capacity; or (ii) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; (f) “Chief Inspector” means the Chief Inspector of Inspection of Building and Construction appointed under sub-section (2) of section 42; (g) “contractor” means a person who undertakes to produce a given result for any establishment, other than a mere supply of goods or articles of manufacture, by the employment of building workers or who supplies building workers for any work of the establishment; and includes a sub-contractor; (h) “Director-General” means the Director-General of Inspection appointed under sub-section (1) of section 42; (i) “employer”, in relation to an establishment, means the owner thereof, and includes,— (i) in relation to a building or other construction work carried on by or under the authority of any department of the Government, directly without any contractor, the authority specified in this behalf, or where no authority is specified, the head of the department; (ii) in relation to a building or other construction work carried on by or on behalf of a local authority or other establishment, directly without any contractor, the chief executive officer of that authority or establishment; (iii) in relation to a building or other construction work carried on by or through a contractor, or by the employment of building workers supplied by a contractor, the contractor; (j) “establishment” means any establishment belonging to, or under the control of, Government, any body corporate or firm, an individual or association or other body of individuals which or who employs building workers in any building or other construction work; and includes an establishment belonging to a contractor, but does not include an individual who employs such workers in any building or construction work in relation to his own residence the total cost of such construction not being more than rupees ten lakhs; (k) “Fund” means the Building and Other Construction Workers’ Welfare Fund of a Board constituted under sub-section (1) of section 24; (l) “notification” means a notification published in the Official Gazette; (m) “prescribed” means prescribed by rules made under this Act by the Central Government or, as the case may be, the State Government; (n) “wages” shall have the same meaning as assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936). (2) Any reference in this Act to any law which is not in force in any area shall, in relation to that area, be construed as a reference to the corresponding law, if any, in force in that area. CHAPTER II THE ADVISORY COMMITTEES AND EXPERT COMMITTEES **3. Central Advisory Committee.—(1) The Central Government shall, as soon as may be, constitute** a Committee to be called the Central Building and Other Construction Workers’ Advisory Committee ----- (hereinafter referred to as the Central Advisory Committee) to advise the Central Government on such matters arising out of the administration of this Act as may be referred to it. (2) The Central Advisory Committee shall consist of— (a) a Chairperson to be appointed by the Central Government; (b) three Members of Parliament of whom two shall be elected by the House of the People and one by the Council of States—members; (c) the Director-General—member, ex officio; (d) such number of other members, not exceeding thirteen but not less than nine, as the Central Government may nominate to represent the employers, building workers, associations of architects, engineers, accident insurance institutions and any other interests which, in the opinion of the Central Government, ought to be represented on the Central Advisory Committee. (3) The number of persons to be appointed as members from each of the categories specified in clause (d) of sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the Central Advisory Committee shall be such as may be prescribed: Provided that the members nominated to represent the building workers shall not be less than the number of members nominated to represent the employers. (4) It is hereby declared that the office of member of the Central Advisory Committee shall not disqualify its holder for being chosen as, or for being, a Member of either House of Parliament. **4. State Advisory Committee.—(1) The State Government shall constitute a committee to be called** the State Building and Other Construction Workers’ Advisory Committee (hereinafter referred to as the State Advisory Committee) to advise the State Government on such matters arising out of the administration of this Act as may be referred to it. (2) The State Advisory Committee shall consist of— (a) a Chairperson to be appointed by the State Government; (b) two members of the State Legislature to be elected from the State Legislature—members; (c) a member to be nominated by the Central Government; (d) the Chief Inspector—member, ex officio; (e) such number of other members, not exceeding eleven, but not less than seven, as the State Government may nominate to represent the employers, building workers, associations of architects, engineers, accident insurance institutions and any other interests which, in the opinion of the State Government, ought to be represented on the State Advisory Committee. (3) The number of persons to be appointed as members from each of the categories specified in clause (e) of sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of State Advisory Committee shall be such as may be prescribed: Provided that the number of members nominated to represent the building workers shall not be less than the number of members nominated to represent the employers. **STATE AMENDMENT** **Maharashtra** **Amendment of section 4 of 27 of 1996.—In section 4 of the Building and Other Construction** Workers (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996), in its application to the State of Maharashtra, in sub-section (2), for clause (b), the following clause shall be substituted, namely:— ----- “(b) two members of the State Legislature, of whom one shall be nominated by the Speaker of the State Legislative Assembly from amongst the members of the State Legislative Assembly and one by the Chairman of the State Legislative Council form amongst the members of the State Legislative Council.. members;”. [Vide Maharashtra Act 4 of 2016, s. 5]. **5. Expert committees.—(1) The appropriate Government may constitute one or more expert** committees consisting of persons specially qualified in building or other construction work for advising that Government for making rules under this Act. (2) The members of the expert committee shall be paid such fees and allowances for attending the meetings of the committee as may be prescribed: Provided that no fee or allowances shall be payable to a member who is an officer of Government or of any body corporate established by or under any law for the time being in force. CHAPTER III REGISTRATION OF ESTABLISHMENTS **6. Appointment of registering officers.—The appropriate Government may, by order notified in the** Official Gazette,— (a) appoint such persons, being Gazetted Officers of Government, as it thinks fit, to be the registering officers for the purposes of this Act; and (b) define the limits within which a registering officer shall exercise the powers conferred on him by or under this Act. **7. Registration of establishments.—(1) Every employer shall,—** (a) in relation to an establishment to which this Act applies on its commencement, within a period of sixty days from such commencement; and (b) in relation to any other establishment to which this Act may be applicable at any time after such commencement, within a period of sixty days from the date on which this Act becomes applicable to such establishment, make an application to the registering officer for the registration of such establishment: Provided that the registering officer may entertain any such application after the expiry of the periods aforesaid, if he is satisfied that the applicant was prevented by sufficient cause from making the application within such period. (2) Every application under sub-section (1) shall be in such form and shall contain such particulars and shall be accompanied by such fees as may be prescribed. (3) After the receipt of an application under sub-section (1), the registering officer shall register the establishment and issue a certificate of registration to the employer thereof in such form and within such time and subject to such conditions as may be prescribed. (4) Where, after the registration of an establishment under this section, any change occurs in the ownership or management or other prescribed particulars in respect of such establishment, the particulars regarding such change shall be intimated by the employer to the registering officer within thirty days of such change in such form as may be prescribed. **8. Revocation of registration in certain cases.—If the registering officer is satisfied, either on a** reference made to him in this behalf or otherwise, that the registration of any establishment has been obtained by misrepresentation or suppression of any material fact or that the provisions of this Act are not being complied with in relation to any work carried on by such establishment, or that for any other reason the registration has become useless or ineffective and, therefore, requires to be revoked, he may, after giving an opportunity to the employer of the establishment to be heard, revoke the registration. ----- **9. Appeal.—(1) Any person aggrieved by an order made under section 8 may, within thirty days from** the date on which the order is communicated to him, prefer an appeal to the appellate officer who shall be a person nominated in this behalf by the appropriate Government: Provided that the appellate officer may entertain the appeal after the expiry of the said period of thirty days if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time. (2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the appellant an opportunity of being heard, confirm, modify or reverse the order of revocation as expeditiously as possible. **10. Effect of non-registration.—No employer of an establishment to which this Act applies shall,—** (a) in the case of an establishment required to be registered under section 7, but which has not been registered under that section; (b) in the case of an establishment the registration in respect of which has been revoked under section 8 and no appeal has been preferred against such order of revocation under section 9 within the period prescribed for the preferring of such appeal or where an appeal has been so preferred, such appeal has been dismissed, employ building workers in the establishment after the expiry of the period referred to in clause (a) or clause (b) of sub-section (1) of section 7, or after the revocation of registration under section 8 or after the expiry of the period for preferring an appeal under section 9 or after the dismissal of the appeal, as the case may be. CHAPTER IV REGISTRATION OF BUILDING WORKERS AS BENEFICIARIES **11. Beneficiaries of the Fund.—Subject to the provisions of this Act, every building worker** registered as a beneficiary under this Act shall be entitled to the benefits provided by the Board from its Fund under this Act. **12. Registration of building workers as beneficiaries.—(1) Every building worker who has** completed eighteen years of age, but has not completed sixty years of age, and who has been engaged in any building or other construction work for not less than ninety days during the preceding twelve months shall be eligible for registration as a beneficiary under this Act. (2) An application for registration shall be made in such form, as may be prescribed, to the officer authorised by the Board in this behalf. (3) Every application under sub-section (2) shall be accompanied by such documents together with such fee not exceeding fifty rupees as may be prescribed. (4) If the officer authorised by the Board under sub-section (2) is satisfied that the applicant has complied with the provisions of this Act and the rules made thereunder, he shall register the name of the building worker as a beneficiary under this Act: Provided that an application for registration shall not be rejected without giving the applicant an opportunity of being heard. (5) Any person aggrieved by the decision under sub-section (4) may, within thirty days from the date of such decision, prefer an appeal to the Secretary of the Board or any other officer specified by the Board in this behalf and the decision of the Secretary or such other officer on such appeal shall be final: Provided that the Secretary or any other officer specified by the Board in this behalf may entertain the appeal after the expiry of the said period of thirty days if he is satisfied that the building worker was prevented by sufficient cause from filing the appeal in time. (6) The Secretary of the Board shall cause to maintain such registers as may be prescribed. **13. Identity cards.—(1) The Board shall give to every beneficiary an identity card with his** photograph duly affixed thereon and with enough space for entering the details of the building or other construction work done by him. ----- (2) Every employer shall enter in the identity card the details of the building or other construction work done by the beneficiary and authenticate the same and return it to the beneficiary. (3) A beneficiary who has been issued an identity card under this Act shall produce the same whenever demanded by any officer of Government or the Board, any inspector or any other authority for inspection. **14. Cessation as a beneficiary.—(1) A building worker who has been registered as a beneficiary** under this Act shall cease to be as such when he attains the age of sixty years or when he is not engaged in building or other construction work for not less than ninety days in a year: Provided that in computing the period of ninety days under this sub-section, there shall be excluded any period of absence from the building or other construction work due to any personal injury caused to the building worker by accident arising out of and in the course of his employment. (2) Notwithstanding anything contained in sub-section (1), if a person had been a beneficiary for at least three years continuously immediately before attaining the age of sixty years, he shall be eligible to get such benefits as may be prescribed. _Explanation.—For computing the period of three years as a beneficiary with a Board under this sub-_ section, there shall be added any period for which a person had been a beneficiary with any other Board immediately before his registration. **15. Register of beneficiaries.—Every employer shall maintain a register in such form as may be** prescribed showing the details of employment of beneficiaries employed in the building or other construction work undertaken by him and the same may be inspected without any prior notice by the Secretary of the Board or any other officer duly authorised by the Board in this behalf. **16. Contribution of building workers.—(1) A building worker who has been registered as a** beneficiary under this Act shall, until he attains the age of sixty years, contribute to the Fund at such rate per mensem, as may be specified by the State Government, by notification in the Official Gazette and different rates of contribution may be specified for different classes of building workers: Provided that the Board may, if satisfied that a beneficiary is unable to pay his contribution due to any financial hardship, waive the payment of contribution for a period not exceeding three months at a time. (2) A beneficiary may authorise his employer to deduct his contribution from his monthly wages and to remit the same, within fifteen days from such deduction, to the Board. **17. Effect of non-payment of contribution.—When a beneficiary has not paid his contribution** under sub-section (1) of section 16 for a continuous period of not less than one year, he shall cease to be a beneficiary: Provided that if the Secretary of the Board is satisfied that the non-payment of contribution was for a reasonable ground and that the building worker is willing to deposit the arrears, he may allow the building worker to deposit the contribution in arrears and on such deposit being made, the registration of building worker shall stand restored. CHAPTER V BUILDING AND OTHER CONSTRUCTION WORKERS’ WELFARE BOARDS **18. Constitution of State Welfare Boards.—(1) Every State Government shall, with effect from** such date as it may, by notification, appoint, constitute a Board to be known as the …… (name of the State) Building and Other Construction Workers’ Welfare Board to exercise the powers conferred on, and perform the functions assigned to, it under this Act. (2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal and shall by the said name sue and be sued. (3) The Board shall consist of a chairperson, a person to be nominated by the Central Government and such number of other members, not exceeding fifteen, as may be appointed to it by the State Government: ----- Provided that the Board shall include an equal number of members representing the State Government, the employers and the building workers and that at least one member of the Board shall be a woman. (4) The terms and conditions of appointment and the salaries and other allowances payable to the chairperson and the other members of the Board, and the manner of filling of casual vacancies of the members of the Board, shall be such as may be prescribed. **19. Secretary and other officers of Boards.—(1) The Board shall appoint a Secretary and such other** officers and employees as it considers necessary for the efficient discharge of its functions under this Act. (2) The secretary of the Board shall be its chief executive officer. (3) The terms and conditions of appointment and the salary and allowances payable to the Secretary and the other officers and employees of the Board shall be such as may be prescribed. **20. Meetings of Boards.—(1) The Board shall meet at such time and place and observe such rules of** procedure in regard to the transaction of business at its meetings (including the quorum at such meetings) as may be prescribed. (2) The chairperson or, if for any reason he is unable to attend a meeting of the Board, any member nominated by the chairperson in this behalf and in the absence of such nomination, any other member elected by the members present from amongst themselves at the meeting, shall preside at the meeting. (3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the members present and voting, and in the event of equality of votes, the chairperson, or in his absence, the person presiding, shall have a second or a casting vote. **21. Vacancies, etc., not to invalidate proceedings of the Boards.—No act or proceedings of a** Board shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Board; or (b) any defect in the appointment of a person acting as a member of the Board; or (c) any irregularity in the procedure of the Board not affecting the merits of the case. **22. Functions of the Boards.—(1) The Board may—** (a) provide immediate assistance to a beneficiary in case of accident; (b) make payment of pension to the beneficiaries who have completed the age of sixty years; (c) sanction loans and advances to a beneficiary for construction of a house not exceeding such amount and on such terms and conditions as may be prescribed; (d) pay such amount in connection with premia for Group Insurance Scheme of the beneficiaries as it may deem fit; (e) give such financial assistance for the education of children of the beneficiaries as may be prescribed; (f) meet such medical expenses for treatment of major ailments of a beneficiary or, such dependant, as may be prescribed; (g) make payment of maternity benefit to the female beneficiaries; and (h) make provision and improvement of such other welfare measures and facilities as may be prescribed. (2) The Board may grant loan or subsidy to a local authority or an employer in aid of any scheme approved by the State Government for the purpose connected with the welfare of building workers in any establishment. (3) The Board may pay annually grants-in-aid to a local authority or to an employer who provides to the satisfaction of the Board welfare measures and facilities of the standard specified by the Board for the ----- benefit of the building workers and the members of' their family, so, however, that the amount payable as grants-in-aid to any local authority or employer shall not exceed— (a) the amount spent in providing welfare measures and facilities as determined by the State Government or any person specified by it in this behalf, or (b) such amount as may be prescribed, whichever is less: Provided that no grant-in-aid shall be payable in respect of any such welfare measures and facilities where the amount spent thereon determined as aforesaid is less than the amount prescribed in this behalf. **23. Grants and loans by the Central Government.—The Central Government may, after due** appropriation made by Parliament by law in this behalf, make to a Board grants and loans of such sums of money as the Government may consider necessary. **24. Building and Other Construction Workers’ Welfare Fund and its application.—(1) There** shall be constituted by a Board a fund to be called the Building and Other Construction Workers’ Welfare Fund and there shall be credited thereto— (a) any grants and loans made to the Board by the Central Government under section 23; (b) all contributions made by the beneficiaries; (c) all sums received by the Board from such other sources as may be decided by the Central Government. (2) The Fund shall be applied for meeting— (a) expenses of the Board in the discharge of its functions under section 22; and (b) salaries, allowances and other remuneration of the members, officers and other employees of the Board; (c) expenses on objects and for purposes authorised by this Act. (3) No Board shall, in any financial year, incur expenses towards salaries, allowances and other remuneration to its members, officers and other employees and for meeting the other administrative expenses exceeding five per cent. of its total expenses during that financial year. **25 Budget.—The Board shall prepare, in such form and at such time each financial year, as may be** prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Board and forward the same to the State Government and the Central Government. **26. Annual report.—The Board shall prepare, in such form and at such time each financial year as** may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the State Government and the Central Government. **27. Accounts and audit.—(1) The Board shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-General of India. (2) The Comptroller and Auditor-General of India or any other person appointed by him in connection with the auditing of the accounts of the Board under this Act shall have the same rights and privileges and the authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the auditing of the Government accounts and, in particular shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Board under this Act. (3) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India annually and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India. ----- (4) The Board shall furnish to the State Government before such date as may be prescribed its audited copy of accounts together with the auditor's report. (5) The State Government shall cause the annual report and auditor's report to be laid, as soon as may be after they are received, before the State Legislature. CHAPTER VI HOURS OF WORK, WELFARE MEASURES AND OTHER CONDITIONS OF SERVICE OF BUILDING WORKERS **28. Fixing hours for normal working day, etc.—(1) The appropriate Government may, by rules,—** (a) fix the number of hours of work which shall constitute a normal working day for a building worker, inclusive of one or more specified intervals; (b) provide for a day of rest in every period of seven days which shall be allowed to all building workers and for the payment of remuneration in respect of such days of rest; (c) provide for payment of work on a day of rest at a rate not less than the overtime rate specified in section 29. (2) The provisions of sub-section (1) shall, in relation to the following classes of building workers, apply only to such extent, and subject to such conditions, as may be prescribed, namely:— (a) persons engaged on urgent work, or in any emergency which could not have been foreseen or prevented; (b) persons engaged in a work in the nature of preparatory or complementary work which must necessarily be carried on outside the normal hours of work laid down in the rules; (c) persons engaged in any work which for technical reasons has to be completed before the day is over; (d) persons engaged in a work which could not be carried on except at times dependant on the irregular action of natural forces. **29. Wages for overtime work.—(1) Where any building worker is required to work on any day in** excess of the number of hours constituting a normal working day, he shall be entitled to wages at the rate of twice his ordinary rate of wages. (2) For the purposes of this section, “ordinary rates of wages” means the basic wages plus such allowances as the worker is for the time being entitled to but does not include any bonus. **30. Maintenance of registers and records.—(1) Every employer shall maintain such registers and** records giving such particulars of building workers employed by him, the work performed by them, the number of hours of work which shall constitute a normal working day for them, a day of rest in every period of seven days which shall be allowed to them, the wages paid to them, the receipts given by them and such other particulars in such form as my be prescribed. (2) Every employer shall keep exhibited, in such manner as may be prescribed, in the place where such workers may be employed, notices in the prescribed form containing the prescribed particulars. (3) The appropriate Government may, by rules, provide for the issue of wage books or wage slips to building workers employed in an establishment and prescribe the manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent. **31. Prohibition of employment of certain persons in certain building or other construction** **work.—No person about whom the employer knows or has reason to believe that he is a deaf or he has a** defective vision or he has a tendency to giddiness shall be required or allowed to work in any such operation of building or other construction work which is likely to involve a risk of any accident either to the building worker himself or to any other person. **32. Drinking water.—(1) The employer shall make in every place where building or other** construction work is in progress, effective arrangements to provide and maintain at suitable points conveniently situated for all persons employed therein, a sufficient supply of wholesome drinking water. ----- (2) All such points shall be legibly marked “Drinking Water” in a language understood by a majority of the persons employed in such place and no such point shall be situated within six metres of any washing place, urinal or latrine. **33. Latrines and urinals.—In every place where building or other construction work is carried on,** the employer shall provide sufficient latrine and urinal accommodation of such types as may be prescribed and they shall be so conveniently situated as may be accessible to the building workers at all times while they are in such place: Provided that it shall not be necessary to provide separate urinals in any place where less than fifty persons are employed or where the latrines are connected to a water-borne sewage system. **34. Accommodation.—(1) The employer shall provide, free of charges and within the work site or as** near to it as may be possible, temporary living accommodation to all building workers employed by him for such period as the building or other construction work is in progress. (2) The temporary accommodation provided under sub-section (1) shall have separate cooking place, bathing, washing and lavatory facilities. (3) As soon as may be, after the building or other construction work is over, the employer shall, at his own cost, cause removal or demolition of the temporary structures erected by him for the purpose of providing living accommodation, cooking place or other facilities to the building workers as required under sub-section (1) and restore the ground in good level and clean condition. (4) In case an employer is given any land by a Municipal Board or any other local authority for the purposes of providing temporary accommodation for the building workers under this section, he shall, as soon as may be after the construction work is over, return the possession of such land in the same condition in which he received the same. **35. Creches.—(1) In every place wherein, more than fifty female building workers are ordinarily** employed, there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such female workers. (2) Such rooms shall— (a) provide adequate accommodation; (b) be adequately lighted and ventilated; (c) be maintained in a clean and sanitary condition; (d) be under the charge of women trained in the care of children and infants. **36. First-aid.—Every employer shall provide in all the places where building or other construction** work is carried on such first-aid facilities as may be prescribed. **37. Canteens, etc.—The appropriate Government may, by rules, require the employer—** (a) to provide and maintain in every place wherein not less than two hundred and fifty building workers are ordinarily employed, a canteen for the use of the workers; (b) to provide such other welfare measures for the benefit of building workers as may be prescribed. CHAPTER VII SAFETY AND HEALTH MEASURES **38. Safety Committee and safety officers.—(1) In every establishment wherein five hundred or** more building workers are ordinarily employed, the employer shall constitute a Safety Committee consisting of such number of representatives of the employer and the building workers as may be prescribed by the State Government: Provided that the number of persons representing the workers, shall, in no case, be less than the persons representing the employer. ----- (2) In every establishment referred to in sub-section (1), the employer shall also appoint a safety officer who shall possess such qualifications and perform such duties as may be prescribed. **39. Notice of certain accidents.—(1) Where in any establishment an accident occurs which causes** death or which causes any bodily injury by reason of which the person injured is prevented from working for a period of forty-eight hours or more immediately following the accident, or which is of such a nature as may be prescribed, the employer shall give notice thereof to such authority, in such form and within such time as may be prescribed. (2) On receipt of a notice under sub-section (1) the authority referred to in that sub-section may make such investigation or inquiry as it considers necessary. (3) Where a notice given under sub-section (1) relates to an accident causing death of five or more persons, the authority shall make an inquiry into such accident within one month of the receipt of the notice. **40. Power of appropriate Government to make rules for the safety and health of building** **workers.—(1) The appropriate Government may, by notification, make rules regarding the measures to** be taken for the safety and health of building workers in the course of their employment and the equipment and appliances necessary to be provided to them for ensuring their safety, health and protection, during such employment. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the safe means of access to, and the safety of, any working place, including the provision of suitable and sufficient scaffolding at various stages when work cannot be safely done from the ground or from any part of a building or from a ladder or such other means of support; (b) the precautions to be taken in connection with the demolition of the whole or any substantial part of a building or other structure under the supervision of a competent person and the avoidance of danger from collapse of any building or other structure while removing any part of the framed building or other structure by shoring or otherwise; (c) the handling or use of explosive under the control of competent persons so that there is no exposure to the risk of injury from explosion or from flying material; (d) the erection, installation, use and maintenance of transporting equipment, such as locomotives, trucks, wagons and other vehicles and trailers and appointment of competent persons to drive or operate such equipment; (e) the erection, installation, use and maintenance of hoists, lifting appliances and lifting gear including periodical testing and examination and heat treatment, where necessary, precautions to be taken while raising or lowering loads, restrictions on carriage of persons and appointment of competent persons on hoists or other lifting appliances; (f) the adequate and suitable lighting of every workplace and approach thereto, of every place where raising or lowering operations with the use of hoists, lifting appliances or lifting gears are in progress and of all openings dangerous to building workers employed; (g) the precautions to be taken to prevent inhalation of dust, fumes, gases or vapours during any grinding, cleaning, spraying or manipulation of any material and steps to be taken to secure and maintain adequate ventilation of every working place or confined space; (h) the measures to be taken during stacking or unstacking, stowing or unstowing of materials or goods or handling in connection therewith; (i) the safeguarding of machinery including the fencing of every fly-wheel and every moving part of a prime mover and every part of transmission or other machinery, unless it is in such a position or of such construction as to be safe to every worker working on any of the operations and as if it were securely fenced; (j) the safe handling and use of plant, including tools and equipment operated by compressed air; ----- (k) the precautions to be taken in case of fire; (l) the limits of weight to be lifted or moved by workers; (m) the safe transport of workers to or from any workplace by water and provision of means for rescue from drowning; (n) the steps to be taken to prevent danger to workers from live electric wires or apparatus including electrical machinery and tools and from overhead wires; (o) the keeping of safety nets, safety sheets and safety belts where the special nature or the circumstances of work render them necessary for the safety of the workers; (p) the standards to be complied with regard to scaffolding, ladders and stairs, lifting appliances, ropes, chains and accessories, earth moving equipments and floating operational equipments; (q) the precautions to be taken with regard to pile driving, concrete work, work with hot asphalt, tar or other similar things, insulation work, demolition operations, excavation, underground construction and handling materials; (r) the safety policy, that is to say, a policy relating to steps to be taken to ensure the safety and health of the building workers, the administrative arrangements therefor and the matters connected therewith, to be framed by the employers and contractors for the operations to be carried on in a building or other construction work; (s) the information to be furnished to the Bureau of Indian Standards established under the Bureau of Indian Standards Act, 1986 (63 of 1986), regarding the use of any article or process covered under that Act in a building or other construction work; (t) the provision and maintenance of medical facilities for building workers; (u) any other matter concerning the safety and health of workers working in any of the operations being carried on in a building or other construction work. **41. Framing of model rules for safety measures.—The Central Government may, after considering** the recommendation of the expert committee constituted under section 5, frame model rules in respect of all or any of the matters specified in section 40 and where any such model rules have been framed in respect of any such matter, the appropriate Government shall, while making any rules in respect of that matter under section 40, so far as is practicable, conform to such model rules. CHAPTER VIII INSPECTING STAFF **42. Appointment of Director-General, Chief Inspector and Inspectors.—(1) The Central** Government may, by notification, appoint a Gazetted Officer of that Government to be the DirectorGeneral of Inspection who shall be responsible for laying down the standards of inspection and shall also exercise the powers of an Inspector throughout India in relation to all the establishments for which the Central Government is the appropriate Government. (2) The State Government may, by notification, appoint a Gazetted Officer of that Government to be the Chief Inspector of Inspection of Building and Construction who shall be responsible for effectively carrying out the provisions of this Act in the State and shall also exercise the powers of an Inspector under this Act throughout the State in relation to establishments for which the State Government is the appropriate Government. (3) The appropriate Government may, by notification, appoint such number of its officers as it thinks fit to be Inspectors for the purposes of this Act and may assign to them such local limits as it may think fit. (4) Every Inspector appointed under this section shall be subject to the control of the Director-General or the Chief Inspector, as the case may be, and shall exercise his powers and perform his functions under this Act subject to general control and supervision of the Director-General or the Chief Inspector. ----- (5) The Director-General, the Chief Inspector and every Inspector shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **43. Powers of Inspectors.—(1) Subject to any rules made in this behalf, an Inspector may, within the** local limits for which he is appointed,— (a) enter, at all reasonable hours, with such assistants (if any) being persons in the service of the Government or any local or other public authority as he thinks fit, any premises or place where building or other construction work is carried on, for the purpose of examining any register or record or notices required to be kept or exhibited by or under this Act, and require the production thereof for inspection; (b) examine any person whom he finds in any such premises or place and who, he has reasonable cause to believe, is a building worker employed therein; (c) require any person giving out building or other construction work to any building worker, to give any information, which is in his power to give with respect to the names and addresses of the persons to, for and whom the building or other construction work is given out or received, and with respect to the payments to be made for the building or other construction work; (d) seize or take copies of such register, record of wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by the employer; and (e) exercise such other powers as may be prescribed. (2) For the purposes of this section, the Director-General or the Chief Inspector, as the case may be, may employ experts or agencies having such qualifications and experience and on such terms and conditions as may be prescribed. (3) Any person required to produce any document or to give any information required by an Inspector under sub-section (1) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of 1860). (4) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), shall, so far as may be, apply to such search or seizure under sub-section (1) as they apply to any search or seizure made under the authority of a warrant issued under section 94 of the said Code. CHAPTER IX SPECIAL PROVISIONS **44. Responsibility of employers.—An employer shall be responsible for providing constant and** adequate supervision of any building or other construction work in his establishment as to ensure compliance with the provisions of this Act relating to safety and for taking all practical steps necessary to prevent accidents. **45. Responsibility for payment of wages and compensation.—(1) An employer shall be responsible** for payment of wages to each building worker employed by him and such wages shall be paid on or before such date as may be prescribed. (2) In case the contractor fails to make payment of compensation in respect of a building worker employed by him, where he is liable to make such payment when due, or makes short payment thereof, then, in the case of death or disablement of the building worker, the employer shall be liable to make payment of that compensation in full or the unpaid balance due in accordance with the provisions of the Workmen's Compensation Act, 1923 (8 of 1923), and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor. **46. Notice of commencement of building or other construction work.—(1) An employer shall, at** least thirty days before the commencement of any building or other construction work, send or cause to be sent to the Inspector having jurisdiction in the area where the proposed building or other construction work is to be executed, a written notice containing— ----- (a) the name and situation of the place where the building or other construction work is proposed to be carried on; (b) the name and address of the person who is undertaking the building or other construction work; (c) the address to which communications relating to the building or other construction work may be sent; (d) the nature of the work involved and the facilities, including any plant and machinery, provided; (e) the arrangements for the storage of explosives, if any, to be used in the building or other construction work; (f) the number of workers likely to be employed during the various stages of building or other construction work; (g) the name and designation of the person who will be in overall charge of the building or other construction work at the site; (h) the approximate duration of the work; (i) such other matters as may be prescribed. (2) Where any change occurs in any of the particulars furnished under sub-section (1), the employer shall intimate the change to the Inspector within two days of such change. (3) Nothing contained in sub-section (1) shall apply in case of such class of building or other construction work as the appropriate Government may by notification specify to be emergent works. CHAPTER X PENALTIES AND PROCEDURE **47. Penalty for contravention of provisions regarding safety measures.—(1) Whoever contravenes** the provisions of any rules made under section 40 shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to two thousand rupees, or with both, and in the case of a continuing contravention, with an additional fine which may extend to one hundred rupees for every day during which such contravention continues after conviction for the first such contravention. (2) If any person who has been convicted of any offence punishable under sub-section (1) is again guilty of an offence involving a contravention or failure of compliance of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term which may extend to six months or with fine which shall not be less than five hundred rupees but which may extend to two thousand rupees or with both: Provided that for the purposes of this sub-section, no cognizance shall be taken of any conviction made more than two years before the commission of the offence for which the person is subsequently being convicted: Provided further that the authority imposing the penalty, if it is satisfied that there are exceptional circumstances warranting such a course may, after recording its reasons in writing, impose a fine of less than five hundred rupees. **48. Penalty for failure to give notice of the commencement of the building or other construction** **work.—Where an employer fails to give notice of the commencement of the building or other** construction work under section 46, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to two thousand rupees, or with both. **49. Penalty for obstructions.—(1) Whoever obstructs an Inspector in the discharge of his duties** under this Act or refuses or wilfully neglects to afford the Inspector any reasonable facility for making any inspection, examination, inquiry or investigation authorised by or under this Act in relation to an establishment shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both. ----- (2) Whoever wilfully refuses to produce on the demand of an Inspector any register or other document kept in pursuance of this Act or prevents or attempts to prevent or does anything which he has reason to believe is likely to prevent any person from appearing before, or being examined by, an Inspector acting in pursuance of his duties under this Act shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both. **STATE AMENDMENT** **Jammu and Kashmir and Ladakh (UTs).—** Insertion of new section—After section 49, insert **49A. Compounding of offences.—(1) Any offence punishable under sections 47, 48 and 49 may,** either before or after the institution of the prosecution, on an application by the alleged offender, be compounded by payment of compounding amount not more than fifty thousand by such officer or authority as the appropriate Government may, by notification in the Official Gazette, specify in this behalf: Provided that the appropriate Government may, by notification in the Official Gazette, amend the said specified compounding amount: Provided further that the offences of the same nature committed by the same offender for more than three occasions shall not be compoundable: Provided also that such offences shall be compounded only after the alleged offender has acted to the satisfaction of such officer or authority that such offence is not continued any further: (2) Where an offence has been compounded under sub-section (1), no further proceedings shall be taken against the offender in respect of such offence and the offender, if in custody, shall be released or discharged. [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020) and Vide Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3465(E), dated (5-10-2020).] **50. Penalty for other offences.—(1) Whoever contravenes any other provision of this Act or any** rules made thereunder or who fails to comply with any provision of this Act or any rules made thereunder shall, where no express penalty is elsewhere provided for such contravention or failure, be punishable with fine which may extend to one thousand rupees for every such contravention or failure, as the case may be, and in the case of a continuing contravention or failure, as the case may be, with an additional fine which may extend to one hundred rupees for every day during which such contravention or failure continues after the conviction for the first such contravention or failure. (2) A penalty under sub-section (1) may be imposed— (a) by the Director-General where the contravention or failure relates to a matter to which the appropriate Government is the Central Government; and (b) by the Chief Inspector where the contravention or failure relates to a matter to which the appropriate Government is the State Government. (3) No penalty shall be imposed unless the person concerned is given a notice in writing— (a) informing him of the grounds on which it is proposed to impose a penalty; and (b) giving him a reasonable opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the imposition of penalty mentioned therein, and, if he so desires, of being heard in the matter. (4) Without prejudice to any other provision contained in this Act, the Director-General and the Chief Inspector shall have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while exercising any powers under this section, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of witnesses; ----- (b) requiring the discovery and production of any document; (c) requisitioning any public record or copy thereof from any court or office; (d) receiving evidence on affidavits; and (e) issuing commissions for the examination of witnesses or documents. (5) Nothing contained in this section shall be construed to prevent the person concerned from being prosecuted under any other provision of this Act or any other law for any offence made punishable by this Act or by that other law, as the case may be, or for being liable under this Act or any such law to any other or higher penalty or punishment than is provided for such offence by this section: Provided that no person shall be punished twice for the same offence. **51. Appeal.—(1) Any person aggrieved by the imposition of any penalty under section 50 may prefer** an appeal— (a) where the penalty has been imposed by the Director-General, to the Central Government; (b) where the penalty has been imposed by the Chief Inspector, to the State Government, within a period of three months from the date of communication to such person of the imposition of such penalty: Provided that the Central Government or the State Government, as the case may be, may, if it is satisfied that the appellant was prevented by sufficient cause from preferring an appeal within the aforesaid period of three months, allow such appeal to be preferred within a further period of three months. (2) The appellate authority may, after giving the appellant an opportunity of being heard, if he so desires, and after making such further inquiry, if any, as it may consider necessary, pass such order as it thinks fit confirming, modifying or reversing the order appealed against or may send back the case with such directions as it may think fit for a fresh decision. **52. Recovery of penalty.—Where any penalty imposed on any person under section 50 is not paid,—** (i) the Director-General or, as the case may be, the Chief Inspector may deduct the amount so payable from any money owing to such person which may be under his control; or (ii) the Director-General or, as the case may be, the Chief Inspector may recover the amount so payable by detaining or selling the goods belonging to such person which are under his control; or (iii) if the amount cannot be recovered from such person in the manner provided in clause (i) or clause (ii), the Director-General or, as the case may be, the Chief Inspector may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the district in which such person owns any property or resides or carries on his business and the said Collector, on receipt of such certificate shall proceed to recover from such person the amount specified thereunder as if it were an arrear of land revenue. **53. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. ----- _Explanation.—For the purposes of this section,—_ (a) ”company” means any body corporate and includes a firm or other association of individuals; and (b) ”director”, in relation to a firm, means a partner in the firm. **54. Cognizance of offences.—(1) No court shall take cognizance of any offence punishable under this** Act except on a complaint— (a) made by, or with the previous sanction in writing of, the Director-General or the Chief Inspector; or (b) made by an office-bearer of a voluntary organisation registered under the Societies Registration Act, 1860 (21 of 1860); or (c) made by an office-bearer of any concerned trade union registered under the Trade Unions Act, 1926 (16 of 1926). (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. **55. Limitation of prosecutions.—No court shall take congizance of an offence punishable under this** Act unless the complaint thereof is made within three months from the date on which the alleged commission of the offence came to the knowledge of the Director-General, the Chief Inspector, an office-bearer of a voluntary organisation or, as the case may be, an office-bearer of any concerned trade union. CHAPTER XI MISCELLANEOUS **56. Delegation of powers.—A Board may, by general or special order, delegate to the Chairperson or** any other member or to the Secretary or any other officer or employee of the Board, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and duties under this Act as it may deem necessary. **57. Returns.—Every Board shall furnish from time to time to the Central Government and to the State** Government such returns as they may require. **58. Application of Act 8 of 1923 to building workers.—The provisions of the Workmen's** Compensation Act, 1923, shall so far as may be, apply to building workers as if the employment to which this Act applies had been included in the Second Schedule to that Act. **59. Protection of action taken in good faith.—(1) No suit, prosecution or other legal proceeding** shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder. (2) No prosecution or other legal proceeding shall lie against the Government, any Board or Committees constituted under this Act or any member of such Board or any officer or employee of the Government or the Board or any other person authorised by the Government or any Board or committee, for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made or issued thereunder. **60. Power of Central Government to give directions.—The Central Government may give** directions to the Government of any State or to a Board as to the carrying into execution in that State of any of the provisions of this Act. **61. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of this** Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of two years from the date of commencement of this Act. ----- (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **62. Power to make rules.—(1) The appropriate Government may, after consultation with the expert** committee, by notification, make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the number of persons to be appointed as members representing various interests on the Central Advisory Committee and the State Advisory Committees, the term of their office and other conditions of service, the procedure to be followed in the discharge of their functions and the manner of filling vacancies under sub-section (3) of section 3 or, as the case may be, under sub-section (3) of section 4; (b) the fees and allowances that may be paid to the members of the expert committee for attending its meetings under sub-section (2) of section 5; (c) the form of application for the registration of an establishment, the levy of fees therefor and the particulars it may contain under sub-section (2) of section 7; (d) the form of certificate of registration, the time within which and the conditions subject to which such certificate may be issued under sub-section (3) of section 7; (e) the form in which the change in ownership or management or other particulars shall be intimated to the registering officer under sub-section (4) of section 7; (f) the form in which an application for registration as a beneficiary shall be made under sub-section (2) of section 12; (g) the document and the fee which shall accompany the application under sub-section (3) of section 12; (h) the registers which the Secretary of the Board shall cause to be maintained under sub-section (6) of section 12; (i) the benefits which may be given under sub-section (2) of section 14; (j) the form in which register of beneficiaries shall be maintained under section 15; (k) the terms and conditions of appointment, the salaries and other allowances payable to, and the manner of filling of casual vacancies of, the Chairperson and other members of the Board under sub-section (4) of section 18; (l) the terms and conditions of service and the salaries and allowances payable to the Secretary and the other officers and employees of the Board under sub-section (3) of section 19; (m) the time and place of the meeting of the Board and the rules of procedure to be followed at such meeting under sub-section (1) of section 20 including quorum necessary for the transaction of business; (n) the amount payable as house building loans or advances, the terms and conditions of such payment under clause (c), educational assistance under clause (e), medical expenses payable and the persons who shall be the dependent of the beneficiaries under clause (f), and the other welfare measures for which provision may be made under clause (h), of sub-section (1) of section 22; (o) the limits of grants-in-aid payable to the local authorities and employers under clause (b) of sub-section (3) of section 22; (p) the form in which and the time within which the budget of the Board shall be prepared and forwarded to Government under section 25; (q) the form in which and the time within which the annual report of the Board shall be submitted to the State Government and the Central Government under section 26; ----- (r) the form of annual statement of accounts under sub-section (1), and the date before which the audited copy of the accounts together with the auditor's report shall be furnished under sub-section (4) of section 27: (s) the matters required to be provided under sub-section (1) of section 28 and the extent up to which, and the conditions subject to which, the provisions of that sub-section shall apply to the building workers under sub-section (2) of that section; (t) the registers and records that shall be maintained by the employer and the form in which such registers and records shall be maintained and the particulars to be included therein under sub-section (1) of section 30; (u) the form and manner in which a notice shall be exhibited and the particulars it may contain under sub-section (2) of section 30; (v) the issue of wage books or wage slips to building workers and the manner in which entries are to be made and authenticated in wage books or wage slips under sub-section (3) of section 30; (w) the types of latrines and urinals required to be provided under section 33; (x) the first-aid facilities which are to be provided under section 36; (y) the canteen facilities which are to be provided under clause (a) of section 37; (z) the welfare measures which are to be provided under clause (b) of section 37; (za) the number of representatives of the employer and the building workers under sub-section (1) of section 38 and the qualifications of safety officers and the duties to be performed by them under sub-section (2) of that section; (zb) the form of a notice of accident, other matters to be provided in this behalf and the time within which such notice shall be given under sub-section (1) of section 39; (zc) the rules to be made for the safety and health of building workers under section 40; (zd) the powers that may be exercised by an Inspector under clause (e) of sub-section (1) of section 43 and the qualifications and experience which the experts or agencies employed under sub-section (2) of that section shall possess and the terms and conditions on which such experts or agencies may be employed; (ze) the date on or before which wages shall be paid to a building worker under section 45; (zf) the matters which are required to be prescribed under clause (i) of sub-section (1) of section 46; (zg) any other matter which is required to be, or may be, prescribed. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. (4) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or, where such Legislature consists of one House, before that House. **63. Saving of certain laws.—Nothing contained in this Act shall affect the operation of any** corresponding law in a State providing welfare schemes which are more beneficial to the building and other construction workers than those provided for them by or under this Act. ----- **64. Repeal and saving.—(1) The Building and Other Construction Workers (Regulation of** Employment and Conditions of Service) Third Ordinance, 1996 (Ord. 25 of 1996), is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. -----
24-Dec-1996
40
The Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996
https://www.indiacode.nic.in/bitstream/123456789/1973/1/A1996-40.pdf
central
# THE PROVISIONS OF THE PANCHAYATS (EXTENSION TO THE SCHEDULED AREAS) ACT, 1996 ________ ARRANGEMENT OF SECTIONS _______ SECTIONS 1. Short title. 2. Definition. 3. Extension of Part IX of the Constitution. 4. Exceptions and modifications to Part IX of the Constitution. 5. Continuance of existing laws and Panchayats. 1 ----- # THE PROVISIONS OF THE PANCHAYATS (EXTENSION TO THE SCHEDULED AREAS) ACT, 1996 ACT NO. 40 OF 1996 [24th December, 1996.] # An Act to provide for the extension of the provisions of Part IX of the Constitution relating to the Panchayats to the Scheduled Areas. BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:— **1. Short title.—This Act may be called the Provisions of the Panchayats (Extension to the Scheduled** Areas) Act, 1996. **2. Definition.—In this Act, unless the context otherwise requires, “Scheduled Areas” means the** Scheduled Areas as referred to in clause (1) of article 244 of the Constitution. **3. Extension of Part IX of the Constitution.—The provisions of Part IX of the Constitution relating** to Panchayats are hereby extended to the Scheduled Areas subject to such exceptions and modifications as are provided in section 4. **4. Exceptions and modifications to Part IX of the Constitution.—Notwithstanding anything** contained under Part IX of the Constitution, the Legislature of a State shall not make any law under that Part which is inconsistent with any of the following features, namely:— (a) a State legislation on the Panchayats that may be made shall be in consonance with the customary law, social and religious practices and traditional management practices of community resources; (b) a village shall ordinarily consist of a habitation or a group of habitations or a hamlet or a group of hamlets comprising a community and managing its affairs in accordance with traditions and customs; (c) every village shall have a Gram Sabha consisting of persons whose names are included in the electoral rolls for the Panchayat at the village level; (d) every Gram Sabha shall be competent to safeguard and preserve the traditions and customs of the people, their cultural identity, community resources and the customary mode of dispute resolution; (e) every Gram Sabha shall— (i) approve the plans, programmes and projects for social and economic development before such plans, programmes and projects are taken up for implementation by the Panchayat at the village level; (ii) be responsible for the identification or selection of persons as beneficiaries under the poverty alleviation and other programmes; (f) every Panchayat at the village level shall be required to obtain from the Gram Sabha a certification of utilisation of funds by that Panchayat for the plans, programmes and projects referred to in clause(e); (g) the reservation of seats in the Scheduled Areas at every Panchayat shall be in proportion to the population of the communities in that Panchayat for whom reservation is sought to be given under Part IX of the Constitution: Provided that the reservation for the Scheduled Tribes shall not be less than one-half of the total number of seats: Provided further that all seats of Chairpersons of Panchayats at all levels shall be reserved for the Scheduled Tribes; (h) the State Government may nominate persons belonging to such Scheduled Tribes as have no representation in the Panchayat at the intermediate level or the Panchayat at the district level: 2 ----- Provided that such nomination shall not exceed one-tenth of the total members to be elected in that Panchayat; (i) the Gram Sabha or the Panchayats at the appropriate level shall be consulted before making the acquisition of land in the Scheduled Areas for development projects and before re-settling or rehabilitating persons affected by such projects in the Scheduled Areas; the actual planning and implementation of the projects in the Scheduled Areas shall be coordinated at the State level; (j) planning and management of minor water bodies in the Scheduled Areas shall be entrusted to Panchayats at the appropriate level; (k) the recommendations of the Gram Sabha or the Panchayats at the appropriate level shall be made mandatory prior to grant of prospecting licence or mining lease for minor minerals in the Scheduled Areas; (l) the prior recommendation of the Gram Sabha or the Panchayats at the appropriate level shall be made mandatory for grant of concession for the exploitation of minor minerals by auction; (m) while endowing Panchayats in the Scheduled Areas with such powers and authority as may be necessary to enable them to function as institutions of self-government, a State Legislature shall ensure that the Panchayats at the appropriate level and the Gram Sabha are endowed specifically with— (i) the power to enforce prohibition or to regulate or restrict the sale and consumption of any intoxicant; (ii) the ownership of minor forest produce; (iii) the power to prevent alienation of land in the Scheduled Areas and to take appropriate action to restore any unlawfully alienated land of a Scheduled Tribe; (iv) the power to manage village markets by whatever name called; (v) the power to exercise control over money lending to the Scheduled Tribes; (vi) the power to exercise control over institutions and functionaries in all social sectors; (vii) the power to control over local plans and resources for such plans including tribal sub plans; (n) the State legislations that may endow Panchayats with powers and authority as may be necessary to enable them to function as institutions of self-government shall contain safeguards to ensure that Panchayats at the higher level do not assume the powers and authority of any Panchayat at the lower level or of the Gram Sabha; (o) the State Legislature shall endeavour to follow the pattern of the Sixth Schedule to the Constitution while designing the administrative arrangements in the Panchayats at district levels in the Scheduled Areas. **5. Continuance of existing laws and Panchayats.—Notwithstanding anything in Part IX of the** Constitution with exceptions and modifications made by this Act, any provision of any law relating to Panchayats in force in the Scheduled Areas immediately before the date on which this Act receives the assent of the President which is inconsistent with the provisions of Part IX with such exceptions and modifications shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until the expiration of one year from the date on which this Act receives the assent of the President: Provided that all the Panchayats existing immediately before such date shall continue till the expiration of their duration unless sooner dissolved by a resolution passed to that effect by the Legislative Assembly of that State or, in the case of a State having Legislative Council, by each House of the Legislature of that State. 3 -----
8-Jan-1997
03
The Mahatma Gandhi Antarrashtriya Hindi Vishwavidyalaya Act, 1996
https://www.indiacode.nic.in/bitstream/123456789/1987/1/199703.pdf
central
# THE MAHATMA GANDHI ANTARRASHTRIYA HINDI VISHWAVIDYALAYA ACT, 1996 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of the University. 4. Objects of the University. 5. Powers of the University. 6. Jurisdiction. 7. University open to all classes, castes and creeds. 8. Residence of students. 9. The Visitor. 10. Officers of the University. 11. The Chancellor. 12. The Vice-Chancellor. 13. The Pro-Vice-Chancellor. 14. The Deans of Schools. 15. The Registrar. 16. The Finance Officer. 17. The Librarian. 18. Other Officers. 19. Authorities of the University. 20. The Court. 21. The Executive Council. 22. The Academic Council. 23. The Board of Studies. 24. The Finance Committee. 25. Other authorities of the University. 26. Power to make Statutes. 27. Statutes how to be made. 28. Powers to make Ordinances. 29. Regulations. 30. Annual report. 31. Annual accounts. 32. Conditions of service of employees. 33. Procedure of appeal and arbitration in disciplinary cases against students. 34. Right to appeal. 35. Provident and pension funds. 36. Disputes as to constitution of University authorities and bodies. 37. Constitution of Committees. 38. Filling of casual vacancies. 39. Proceedings of University authorities or bodies not invalidated by vacancies. 40. Protection of action taken in good faith. 41. Mode of proof of University record. 1 ----- SECTIONS 42. Power to remove difficulties. 43. Transitional provisions. 44. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. THE SCHEDULE. 2 ----- THE MAHATMA GANDHI ANTARRASHTRIYA HINDI VISHWAVIDYALAYA ACT, 1996 # ACT NO. 3 OF 1997 [8th January, 1997.] # An Act to establish and incorporate a teaching University for the promotion and development of Hindi language and literature, through teaching and research, with a view to enabling Hindi to achieve greater functional efficiency and recognition as a major international language and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Mahatma Gandhi Antarrashtriya** Hindi Vishwavidyalaya Act, 1996. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and the Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “Board of Studies” means the Board of Studies of the University; (d) “Chancellor”, “Vice-Chancellor” and Pro-Vice-Chancellor” mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (e) “Court” means the Court of the University; (f) “Department” means a Department of Studies and includes a Centre of Studies; (g) “distance education system” means the system of imparting education through any means of communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more such means; (h) “employee” means any person appointed by the University, and includes teachers and other staff of the University; (i) “Executive Council” means the Executive Council of the University; (j) “Finance Committee” means the Finance Committee of the University; (k) “Hall” means a unit of residence or of corporate life for the students of the University, or of an Institution maintained by the University; (l) “Institution” means an academic institution, not being a College, maintained by the University; (m) “recognised Institution” means an institution of higher learning recognised by the University; (n) “Regulations” means the Regulations made by any authority of the University under this Act for the time being in force; 1. 29th December, 1997, vide notification No. S.O. 912(E), dated 29th November, 1997, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (o) “School” means a School of Studies of the University; (p) “Statutes” and “Ordinances” mean, respectively, the Statutes and Ordinances of the University for the time being in force; (q) “teachers of the University” means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any Institution maintained by the University and are designated as teachers by the Ordinances; (r) “University” means the Mahatma Gandhi Antarrashtriya Hindi Vishwavidyalaya established and incorporated as a University under this Act. **3. Establishment of the University.—(1) There shall be established a University by the name of** “Mahatma Gandhi Antarrashtriya Hindi Vishwavidyalaya”. (2) The headquarters of the University shall be at Wardha. (3) The first Chancellor and the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, are hereby constituted a body corporate by the name of “Mahatma Gandhi Antarrashtriya Hindi Vishwavidyalaya”. (4) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. **4. Objects of the University.—The objects of the University shall be to promote and develop Hindi** language and literature in general and, for that purpose, to provide for instructional and research facilities in the relevant branches of learning; to provide for active pursuit of comparative studies and research in Hindi and other Indian languages; to create facilities for development and dissemination of relevant information in the country and abroad; to offer programmes of Research, Education and Training in areas like translation, interpretation and linguistics for improving the functional effectiveness of Hindi; to reach out to Hindi scholars and groups interested in Hindi abroad and to associate them in teaching and research and to popularize Hindi through distance education system. **5. Powers of the University.—The University shall have the following powers, namely:—** (i) to provide for instructions in the relevant branches of learning and to make provision for the advancement and dissemination of knowledge for furtherance of its objects; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing on, persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extra-mural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to provide for facilities through distance education system to such persons as it may determine; (vi) to institute Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Professorships, Readerships, Lecturerships or other teaching or academic positions; (vii) to recognise, with the prior approval of the Visitor, an institution of higher learning, within or outside India for such purposes as the University may determine and to withdraw such recognition; (viii) to appoint persons working in any other University or organisation as teacher of the University for a specified period; 4 ----- (ix) to create administrative, ministerial and other posts and to make appointments thereto; (x) to co-operate or collaborate or associate with any other University or authority or institution of higher learning in such manner and for such purposes as the University may determine; (xi) to establish, with the prior approval of the Visitor, such campuses, special centres and specialised laboratories, within or outside India, as are, in the opinion of the University, necessary for the furtherance of its objects; (xii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiii) to establish and maintain Institutions and Halls; (xiv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; (xv) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvi) to make special arrangements in respect of the residence, discipline and teaching of women students as the University may consider desirable; (xvii) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xviii) to confer autonomous status on a Department, in accordance with the Statutes; (xix) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xx) to demand and receive payment of fees and other charges; (xxi) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxii) to lay down conditions of service of all categories of employees, including their code of conduct; (xxiii) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxiv) to make arrangements for promoting the health and general welfare of the employees; (xxv) to receive benefactions, donations and gifts and to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxvi) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxvii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **6. Jurisdiction.—The jurisdiction of the University shall extend to the whole of India.** 7. University open to all classes, castes and creeds.—The University shall be open to persons of either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be 5 ----- appointed as a teacher of the University or to hold any other office therein or to be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, physically handicapped or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **8. Residence of students.—The University shall, primarily, be a residential University:** Provided that the requirements of residence shall be regulated in such manner as may be prescribed by the Ordinances. **9. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including any Institution managed by it, and to submit a report thereon; and upon receipt of that report the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct, of the University, its buildings, laboratories and equipment and of an Institution and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (2), give notice of his intention to cause an inspection or inquiry to be made to the University and the University shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any Institution address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Executive Council shall communicate, through the Vice-Chancellor, to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (9) Where, the Executive Council does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council, issue such directions as he may think fit and the Executive Council shall comply with such directions. (10) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with this Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. 6 ----- (11) The Visitor shall have such other powers as may be prescribed by the Statutes. **10. Officers of the University.—The following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Schools; (5) the Registrar; (6) the Finance Officer; (7) the Librarian; and (8) such other officers as may be declared by the Statutes to be officers of the University. **11. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University. (3) The Chancellor shall, if present, preside at the convocation of the University held for conferring degrees and the meetings of the Court. **12. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner and on such terms and conditions of service as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matters: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the ViceChancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **13. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and** shall exercise such powers and perform such duties as may be prescribed by the Statutes. 7 ----- **14. The Deans of Schools.—Every Dean of a School shall be appointed in such manner and shall** exercise such powers and perform such duties as may be prescribed by the Statutes. **15. The Registrar.—(1) The Registrar shall be appointed in such manner as may be prescribed by the** Statutes. (2) The Registrar shall have the power to enter into agreement, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **16. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties as may be prescribed by the Statutes. **17. The Librarian.—The Librarian shall be appointed in such manner and shall exercise such powers** and perform such duties as may be prescribed by the Statutes. **18. Other officers.—The manner of appointment and powers and duties of the other officers of the** University shall be prescribed by the Statutes. **19. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the Board of Studies; (5) the Finance Committee; and (6) such other authorities as may be declared by the Statutes to be the authorities of the University. **20. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to advise the Visitor in respect of any matter which may be referred to it for advice; and (c) to perform such other functions as may be prescribed by the Statutes. **21. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **22. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **23. The Board of Studies.—The constitution, powers and functions of the Board of Studies shall be** prescribed by the Statutes. 8 ----- **24. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **25. Other authorities of the University.—The constitution, powers and functions of other** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **26. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of the authorities and other bodies of the University, as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities and bodies, filling up of vacancies of members and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and other conditions of service; (e) the appointment of teachers and academic staff working in any other University or organisation for specific period for undertaking a joint project; (f) the conditions of service of employees including provision for pension, insurance and provident fund, the manner of termination of service and disciplinary action; (g) the principles governing the seniority of service of the employees of the University; (h) the procedure for arbitration in cases of dispute between employees or students and the University; (i) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (j) the conferment of autonomous status on an Institution or a Department; (k) the establishment and abolition of Schools, Departments, Centres, Halls and Institutions; (l) the conferment of honorary degrees; (m) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (n) the institution of fellowships, scholarships, studentships, medals and prizes; (o) the delegation of powers vested in the authorities or officers of the University; (p) the maintenance of discipline among the employees and students; (q) all other matters which by this Act are to be or may be provided for by the Statutes. **27. Statutes how to be made.—(1) The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes and any opinion so expressed shall be considered by the Executive Council: 9 ----- Provided further that the Executive Council shall not consider to make, amend or repeal any Statute relating to the matters provided under clauses (j) and (k) of section 26 except with the prior approval of the Visitor. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub- sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **28. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and prescribing of special courses of studies for them; (j) the appointments and emoluments of employees other than those for whom provision has been made in the Statutes; (k) the establishment of Centres of Studies, Board of Studies, Special Centres, Specialised Laboratories and other Committees; (l) the manner of co-operation and collaboration with other Universities, Institutions and other agencies including learned bodies or associations in India or abroad; 10 ----- (m) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (n) such other terms and conditions of service of teachers and other academic staff as are not prescribed by the Statutes; (o) the management of Institutions established by the University; (p) setting up of a machinery for redressal of grievances of employees; and (q) all other matters which, by this Act or the Statutes, are to be or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes. **29. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **30. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects, and shall be submitted to the Visitor on or before such date as may be prescribed by the Statutes. (2) A copy of the annual report, as prepared under sub-section (1) shall also be submitted to the Central Government which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **31. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be** prepared under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Visitor along with the observations of the Executive Council. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Executive Council and the views of the Executive Council, if any, on such observation shall be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, who shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. **32. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee and an umpire appointed by the Visitor. 11 ----- (3) The decision of the Tribunal shall be final and no suit shall lie in any civil court in respect of the matters decided by the Tribunal. (4) Every request made by the employee under sub-section (2) shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration Act, 1940 (10 of 1940). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **33. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examination of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 32 shall, as far as may be, apply to a reference made under this sub-section. **34. Right to appeal.—Every employee or student of the University or Institution shall,** notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of Institution, as the case may be, and thereupon, the Executive Council may confirm, modify or reverse the decision appealed against. **35. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident fund or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provision of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **36. Disputes as to constitution of University authorities and bodies.—If any question arises as to** whether any person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **37. Constitution of Committees.—Where any authority of the University is given power by this Act** or the Statutes to appoint Committees, such Committees shall, save as otherwise provided, consist of the members of the authority concerned and of such other person, if any, as the authority in each case may think fit. **38. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and any person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **39. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or** proceedings of any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **40. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. 12 ----- **41. Mode of proof of University record.—A copy of any receipt, application, notice, order,** proceeding, resolution of any authority or Committee of the University, or other documents in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as prima facie evidence of such receipt, application, notice, order, proceeding, resolution or documents or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence, notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force. **42. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **43. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor shall be appointed by the Visitor and the said officer shall hold office for a term of five years; (b) the first Vice-Chancellor shall be appointed by the Visitor in such manner and on such conditions as may be deemed fit and the said officer shall hold office for such term, not exceeding five years as may be specified by the Visitor; (c) the first Registrar and the first Finance Officer shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; (d) the first Court and the first Executive Council shall consist of not more than thirty members and eleven members respectively who shall be nominated by the Visitor and they shall hold office for a term of three years; (e) the first Academic Council shall consist of not more than twenty-one members who shall be nominated by the Visitor and shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held that office, if such vacancy had not occurred. **44. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have 13 ----- effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously down under that Statute, Ordinance or Regulation. (3) The power to make Statutes Ordinances or Regulations shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but not retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the Interests of any person to whom such Statute, Ordinance or Regulation may be applicable. 14 ----- THE SCHEDULE (See section 27) THE STATUTES OF THE UNIVERSITY _The Chancellor_ 1. (1) The Chancellor shall be appointed by the Visitor from a panel of not less than three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of three years and shall be eligible for re-appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. _The Vice-Chancellor_ 2. (1) The Vice-Chancellor shall be appointed by the Visitor from a panel of not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for a fresh panel. (2) The Committee referred to in clause (1) shall consist of three persons, none of whom shall be an employee of the University or an institution associated with the University, or a member of the Executive Council or Academic Council or of any other authority of the University. Out of the three persons, two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convenor of the Committee. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, and he shall not be eligible for re-appointment: Provided that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him or till his successor is appointed and enters upon his office, whichever is earlier. (5) Notwithstanding anything contained in clause (4) a person appointed as Vice-Chancellor shall, if he attains the age of sixty-five years during the term of his office or any extension thereof, retire from office. (6) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances other than house rent allowances at the rates fixed by the Central Government from time to time: Provided that if he assumes office after retiring on superannuation from a pensionable post, his salary and allowances shall be reduced by the gross amount of his pension prior to commutation or the payment of pension shall be held in abeyance until he relinquishes office: Provided further that if he assumes office after retiring on superannuation from a non-pensionable post, his salary and allowances shall be reduced by the gross amount equivalent of retirement benefits availed of by him on superannuation: 15 ----- Provided also that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme. (ii) The Vice-Chancellor shall be entitled to use rent free furnished residential accommodation maintained by the University. (iii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Executive Council with the approval of the Visitor from time to time: Provided that where an employee of the University or an Institution or of any other University or any college or Institution maintained by or affiliated to such other University, is appointed as the Vice-Chancellor he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the ViceChancellor: Provided further that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme. (iv) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council. (v) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half yearly installments of fifteen days each on the 1st day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice Chancellor during the currency of a half year the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (vi) In addition to the leave referred to in sub-clause (v), the Vice-Chancellor shall also be entitled to half pay leave at the rate of twenty days for each completed year of service. This half pay leave may also be availed of as commuted leave on full pay on medical certificate. When commuted leave is availed, twice the amount of half pay leave shall be debited against half pay leave due. (7) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill health or any other cause, the Pro-Vice Chancellor shall perform the duties of the Vice-Chancellor. Provided that if the Pro-Vice-Chancellor is not available, the senior-most professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the existing Vice-Chancellor attends to the duties of his office as the case may be. _Powers and duties of the Vice-Chancellor_ 3. (1) The Vice-Chancellor shall be _ex officio Chairman of the Executive Council, the Academic_ Council and the Finance Committee and shall in the absence of the Chancellor preside at the convocations held for conferring degrees and the meetings of the court. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall exercise control over the affairs of the University and shall give effect to the decisions of all the authorities of the University. 16 ----- (5) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (6) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the court, the Executive Council, the Academic Council and the Finance Committee. _Pro-Vice-Chancellor_ 4. (1) The Pro-Vice-Chancellor shall be appointed by the Executive Council on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of the Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of the Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that the Pro-Vice-Chancellor whose term of office has expired shall be eligible for reappointment: Provided further that, in any case, the Pro-Vice-Chancellor shall retire on attaining the age of sixty five years. (3) The emoluments and other terms and conditions of service of the Pro-Vice-Chancellor shall be such as may be prescribed by the Executive Council from time to time. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf from time to time and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. _Registrar_ 5. (1) The Registrar shall be appointed by the Executive Council on the recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Executive Council from time to time: Provided that the Registrar shall retire on attaining the age of sixty years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the officer shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, other than teachers and academic staff, as may be specified in the Ordinances, to suspend them pending inquiry, 17 ----- to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person concerned has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon concluding of the inquiry make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be _ex officio Secretary of the Court, the Executive Council, the Academic_ Council and the Boards of Studies, but shall not be deemed to be a member of any of these authorities. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charges; (b) to issue all notices convening meetings of the Court, the Executive Council, the Academic Council, the Boards of Studies and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council the Academic Council and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council and the Academic Council; (e) to arrange for and superintend the examinations of the University in accordance with the manner prescribed by the Ordinances; (f) to supply to the Visitor copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (g) to represent the University in suits or proceedings by or against the University, sign powers-of-attorney and verify pleadings or depute his representative for the purpose; and (h) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time by the Executive Council or the Vice-Chancellor. _The Finance Officer_ 6. (1) The Finance Officer shall be appointed by the Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Executive Council from time to time: Provided that a Finance Officer shall retire on attaining the age of sixty years: 18 ----- Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty years continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Special Centres, Specialised Laboratories and Institutions; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Centre, Laboratory or Institution any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. _Deans of Schools of Studies_ 7. (1) Every Dean of a School of Studies shall be appointed by the Vice-Chancellor from among the Professors in the School for a period of three years and he shall be eligible for reappointment: Provided that a Dean on attaining the age of sixty years shall cease to hold office as such: Provided further that if at any time there is no Dean in a School, the Vice-Chancellor, Pro-Vice-Chancellor or a Dean authorised by the Vice-Chancellor in this behalf, shall exercise the powers of the Dean of the School. 19 ----- (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in the School and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Board of Studies or Committees of the School as the case may be, but shall not have the right to vote thereat unless he is a member thereof. _Heads of Departments_ 8. (1) In the case of Departments which have more than one Professor the Head of the Department shall be appointed by the Executive Council on the recommendation of the Vice-Chancellor from among the Professors. (2) In the case of Departments where there is no Professor or there is only one Professor, the Executive Council shall have the option to appoint, on the recommendation of the Vice-Chancellor, either the Professor or a Reader as the Head of the Department: Provided that it shall be open to a Professor or Reader to decline the offer of appointment as the Head of the Department. (3) A person appointed as the Head of the Department shall hold office as such for a period of three years and shall be eligible for reappointment. (4) A Head of a Department may resign his office at any time during his tenure of office. (5) A Head of a Department shall perform such duties as may be prescribed by the Ordinances. _Proctor_ 9. (1) The Proctor shall be appointed by the Executive Council on the recommendation of the Vice-Chancellor and shall exercise such powers and perform such duties as may be assigned to him by the Vice-Chancellor. (2) The Proctor shall hold office for a term of two years and shall be eligible for reappointment. _Librarian_ 10. (1) The Librarian shall be appointed by the Executive Council on the recommendations of the Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) The Librarian shall exercise such powers and perform such duties and shall have such emoluments, terms and conditions of service as may be prescribed by the Executive Council. _The Court_ 11. Ten members of the Court shall form a quorum for a meeting of the Court. _The Executive Council_ 12. Five members of the Executive Council shall form a quorum for a meeting of the Executive Council. 20 ----- _Powers and functions of the Executive Council_ 13. (1) The Executive Council shall have the power of management and administration of the revenue and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff and Principals of Institutions maintained by the University: Provided that no action shall be taken by the Executive Council in respect of the number, qualifications and the emoluments of teachers and academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary and Principals of Institution maintained by the University on the recommendation of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to create administrative, ministerial and other necessary posts and to make appointments thereto in the manner prescribed by the Ordinances; (iv) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (v) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances. (vi) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University and for that purpose to appoint such agents as it may think fit; (vii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendations of the Finance Committee; (viii) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time as it may think fit or in the purchase of immovable property in India with the like powers of varying such investment from time to time; (ix) to transfer or accept transfers of any movable or immovable property on behalf of the University; (x) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xi) to enter into, vary, carry out and cancel contracts on behalf of the University; (xii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiii) to appoint examiners and moderators and, if necessary, to remove them and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xiv) to select a common seal for the University and provide for the custody and use of such seal; (xv) to make such special arrangements as may be necessary for the residence and discipline of women students; 21 ----- (xvi) to delegate any of its powers to the Vice-Chancellor, the Pro-Vice-Chancellor, the Deans, the Registrar or the Finance Officer or such other employee or authority of the University or to a committee appointed by it as it may deem fit; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for inviting Writers-in-Residence and determine the terms and conditions of such invitations; (xix) to provide for the appointment of Visiting Professors, Emeritus Professors; Consultants and Scholars and determine the terms and conditions of such appointments; and (xx) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act, or the Statutes. _The Academic Council_ 14. Ten members of the Academic Council shall form quorum for a meeting of the Academic Council. _Powers and functions of the Academic Council_ 15. Subject to the Act, the Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instructions, co-ordinating teaching among the Institutions and evaluation of research or improvement in academic standards; (b) to bring about inter-School co-ordination, to establish or appoint committees or boards, for taking up projects on an inter-School basis; (c) to consider matters of general academic interest either on its own initiative or on a reference by a School or the Executive Council and to take appropriate action thereon; and (d) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residence, admissions, award of fellowship and studentships, fees, concessions, corporate life and attendance. _Schools of Studies and Departments_ 16. (1) The University shall have the following Schools of Studies, namely:— (i) School of Language; (ii) School of Literature; (iii) School of Culture; and (iv) School of Translation and Interpretation. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Executive Council and shall hold office for a period of three years. (3) The powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Each School shall consist of such Departments as may be assigned to it by the Ordinances: 22 ----- Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. (b) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) such other persons as may be members of the Department in accordance with the provisions of the Ordinances. 17. (1) Each Department shall have a Board of Studies. (2) The constitution of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of the Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for Post-graduate courses, but excluding research degrees; (b) appointment of supervisors of research; and (c) measures for the improvement of the standard of post-graduate teaching and research: Provided that the above functions of a Board of Studies shall during the period of three years immediately after the commencement of the Act, be performed by the Department. _Finance Committee_ 18. (1) The Finance Committee shall consist of the following members, namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) three persons nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (iv) three persons nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee other than ex officio members, shall hold office for a term of three years. (4) The Finance Committee shall meet at least twice every year to examine the accounts and to scrutinise proposals for expenditure. (5) All proposals relating to creation of posts, and those items which have not been included in the Budget should be examined by the Finance Committee for consideration and comments and thereafter submitted to the Executive Council. 23 ----- (6) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (7) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which in the case of productive works, may include the proceeds of loans). _Selection Committees_ 19. (1) There shall be Selection Committees for making recommendations to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Institutions. (2) The Selection Committee for appointment to the posts specified in column 1 of the Table shall consist of the Vice-Chancellor, Pro-Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in column 2 of the said Table:— **TABLE** 1 2 Professor (i) The Dean of the School concerned. (ii) The Head of the Department concerned if he is a Professor. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Dean of the School concerned. (ii) The Head of the Department concerned. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader or a Lecturer will be concerned. Registrar, Finance Officer (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University nominated by the Executive Council. 24 ----- 1 2 Librarian (i) Two persons not in the service of the University, who have special knowledge of the subject of the Library Science/Library Administration to be nominated by the Executive Council. (ii) One person not in the service of the University, nominated by the Executive Council. Head of the Institution Three persons not in the service of the University of whom two shall be nominated and one by the Academic Council for their special by the Executive Council knowledge of, or interest in, a subject in which instruction is being provided by the Institution. Note: 1. Where the appointment is being made for an inter-disciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. 2. The Professor to be nominated shall be Professor concerned with the speciality for which the selection is being made and that the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. (3) The Vice-Chancellor, or in his absence, the Pro-Vice-Chancellor shall preside the meetings of a Selection Committee: Provided that the meetings of the Selection Committee shall be fixed after prior consultation with the subject to the convenience of Visitor's nominee and the persons nominated by the Executive Council under clause (2): Provided further that the proceedings of the Selection Committee shall not be valid unless— (a) where the number of Visitor's nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor's nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The meeting of Selection Committee shall be convened by the Vice-Chancellor or in his absence by the Pro-Vice-Chancellor. (5) The procedure to be followed by a Selection Committee in making recommendations shall be laid down in the Ordinances. (6) If the Executive Council is unable to accept the recommendations made by a Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (7) Appointments to temporary posts shall be made in the manner indicated below: (i) if the temporary vacancy is for a duration longer than one academic session, it shall he filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: 25 ----- Provided that if the Vice-Chancellor is satisfied that in the interest of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis by a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months; (ii) if the temporary vacancy is for a period less than one year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in case sudden vacancies of teaching posts caused by death or any other reasons, the Dean may, in consultation with the Head of the Department concerned make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment; (iii) no teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee of a regular Selection Committee, for a temporary or permanent appointment, as the case may be. _Special mode of appointment_ 20. (1) Notwithstanding anything contained in Statute 19, the Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or Reader or any other academic post in the University, as the case may be, on such terms and conditions as it deems fit, and on the person agreeing to do so appoint him to the post. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. _Appointment for a fixed tenure_ 21. The Executive Council may appoint a person selected in accordance with procedure laid down in Statute 19 for a fixed tenure on such terms and conditions as it deems fit. _Committees_ 22. (1) Any authority of the University may appoint as many standing or special Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) Any such Committees appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing. _Terms and conditions of service and code of conduct of the teachers, etc_ 23. (1) All the teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (3) A copy of every contract referred to in clause (2) shall be deposited with the Registrar. _Terms and conditions of service and code of conduct of other employees_ 24. All the employees of the University other than the teachers and other academic staff of the University, shall in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the statutes, the Ordinances and the Regulations. 26 ----- _Seniority list_ 25. (1) Whenever, in accordance with the Statutes, any person is to hold an office or be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Executive Council may frame from time to time. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may on his own motion and shall at the request of any such person submit the matter to the Executive Council whose decision thereon shall be final. _Removal of employees of the University_ 26. (1) Where there is an allegation of misconduct against a teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor in the case of the teacher or member of the academic staff and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee may, by order in writing place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion that the circumstances or the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employee, the Executive Council in respect of teachers and other academic staff, and the appointing authority, in respect of other employees, shall have the power to remove a teacher or a member of the academic staff, or as the case may be, other employee on ground of misconduct. (3) Save as aforesaid, the Executive Council or as the case may be, the appointing authority shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months notice or on payment of three months salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months' notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months' salary in lieu thereof; 27 ----- (b) if he is not a permanent employee, only after giving one month's notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month's salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority, as the case may be. _Honorary degrees_ 27. (1) The Executive Council may, on the recommendation of the Academic Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency the Executive Council may on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. _Withdrawal of degrees, etc._ 28. The Executive Council may, by a special resolution passed by a majority of not less than two thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. _Maintenance of discipline among students of the University_ 29. (1) All powers relating to discipline and disciplinary action in relation to students of the University shall vest in the Vice-Chancellor. (2) The Vice-Chancellor may delegate all or any of his powers as he deems proper to a Proctor and to such other officers as he may specify in this behalf. (3) Without prejudice to the generality of his powers relating to the maintenance of discipline, and taking such action as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of his powers, by order, direct that any student or students be expelled, or rusticated, for specific period, or be not admitted to a course or courses of study in an Institution or Department of the University for stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, Institution or Department or a School for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (4) The Heads of Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such powers over the students in their respective Institutions, Schools and teaching Departments as may be necessary for the proper conduct of such Institutions, Schools and teaching Departments. (5) Without prejudice to the powers of the Vice-Chancellor, and other persons specified in clause (4), detailed rules of discipline and proper conduct shall be made by the University. The Principals of Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make the supplementary rules as they deem necessary for the aforesaid purposes. 28 ----- _Convocations_ 30. Convocations of the University for the conferring of degrees or for other purposes shall be held in such manner as may be prescribed by the Ordinances. _Acting Chairman of meetings_ 31. Where no provision is made for a President or Chairman to preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. _Resignation_ 32. Any member other than an ex officio member, of the Court, the Executive Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. _Disqualification_ 33. (1) A person shall be disqualified for being chosen as, and for being a member of any of the authorities of the university:— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. _Residence condition for membership and office_ 34. Notwithstanding anything contained in the Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. _Membership of authorities by virtue of membership of other bodies_ 35. Notwithstanding anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. _Ordinances how made_ 36. (1) The first Ordinances made under sub-section (2) of section 28 may be amended, repealed or added to at any time by the Executive Council in the manner specified below. (2) No Ordinance in respect of the matters enumerated in section 28, other than the one enumerated in clause (m) of sub-section (1) thereof, shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2) but may reject the proposal or return the draft to the Academic 29 ----- Council for re-consideration either in whole or in part, together with any amendment which the Executive Council may suggest. (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. The Visitor shall have the power to direct the University within four weeks of the receipt of the Ordinance to suspend the operation of any such Ordinance and he shall, as soon as possible, inform the Executive Council about his objection to the proposed Ordinance. The Visitor may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance and his decision shall be final. _Regulations_ 37. (1) The authorities of the University may make Regulations consistent with the Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceeding of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. _Delegation of powers_ 38. Subject to the provisions of the Act and the Statutes any officer or authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 30 -----
8-Jan-1997
02
The Maulana Azad National Urdu University Act, 1996
https://www.indiacode.nic.in/bitstream/123456789/1975/1/199702.pdf
central
# THE MAULANA AZAD NATIONAL URDU UNIVERSITY ACT, 1996 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of the University. 4. Objects of the University. 5. Powers of the University. 6. Jurisdiction. 7. University open to all classes, castes and creeds. 8. The Visitor. 9. Officers of the University. 10. The Chancellor. 11. The Vice-Chancellor. 12. The Pro-Vice-Chancellor. 13. The Deans of Schools. 14. The Registrar. 15. The Finance Officer. 16. The Librarian. 17. Other Officers. 18. Authorities of the University. 19. The Court. 20. The Executive Council. 21. The Academic Council. 22. The Board of studies. 23. The Finance Committee. 24. Other authorities of the University. 25. Power to make Statutes. 26. Statutes how to be made. 27. Power to make Ordinance. 28. Regulations. 29. Annual report. 30. Annual accounts. 31. Conditions of service of employees. 32. Procedure of appeal and arbitration in disciplinary cases against students. 33. Right to appeal. 34. Provident and pension funds. 35. Disputes as to constitution of University authorities and bodies. 36. Constitution of Committees. 37. Filling of casual vacancies. 38. Proceedings of University authorities or bodies not invalidated by vacancies. 39. Protection of action taken in good faith. 40. Mode of proof of University records. 41. Power to remove difficulties. 42. Transitional provisions. 43. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. THE SCHEDULE. 1 ----- THE MAULANA AZAD NATIONAL URDU UNIVERSITY ACT, 1996 ACT NO. 2 OF 1997 [8th January, 1997.] An Act to establish and incorporate in University at the national level mainly to promote and develop Urdu language and to import vocational and technical education in Urdu medium through conventional teaching and distance education system and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Maulana Azad National Urdu** University Act, 1996. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and the Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff' means such categories of staff as are designated as academic staff by the Ordinances; (c) “Board of Studies” means the Board of Studies of the University; (d) “Chancellor”, “Vice-Chancellor” and “Pro-Vice-Chancellor” mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice Chancellor of the University; (e) “Court” means the Court of the University; (f) “Department” means a Department of Studies; and includes a Centre of Studies; (g) “distance education system” means the system of imparting education through any means of communication such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more of such means; (h) “employee” means any person appointed by the University and includes teachers and other staff of the University; (i) “Executive Council” means the Executive Council of the University; (j) “Finance Committee” means the Finance Committee of the University; (k) “Hall” means a unit of residence or of corporate life for the students of the University, or of an Institution, maintained by the University; (l) “Institution” means an academic institution maintained by the University; (m) “recognised Institution” means an institution of higher learning recognised by the University; (n) “Regulations” means the Regulations made by any authority of the University under this Act for the time being force; (o) “School” means a school of Studies of the University; (p) “Statutes” and “Ordinances” mean, respectively, the Statutes and Ordinances of the University for the time being in force; (q) “Teachers of the University” means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any Institution maintained by the University and who are designated as teachers by the Ordinances; 1. 9th January, 1998, vide notification No. S.O 1(E), dated 1st January, 1998, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- (r) “University” means the Maulana Azad National Urdu University established and incorporated as a University under this Act. **3. Establishment of the University.—(1) There shall be established a University by the name of** “Maulana Azad National Urdu University”. (2) The headquarters of the University shall be at Hyderabad. (3) The first Chancellor and the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, are hereby constituted a body corporate by the name of “Maulana Azad National Urdu University”. (4) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. **4. Objects of the University.—The objects of the University shall be to promote and develop Urdu** language; to impart education and training in vocational and technical subjects through the medium of Urdu; to provide wider access to people desirous of pursuing programmes of higher education and training in Urdu medium through teaching on the Campus as well as at a distance and to provide focus on women education. **5. Powers of the University.—The University shall have the following powers, namely:—** (i) to provide for instructions and research in such branches of learning as are relevant for furtherance of the objects of the University. (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing, on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extra-mural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to institute Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Professorships, Readerships, Lecturerships or other teaching or academic positions; (vi) to appoint persons working in any other University or organisation as teacher or the University for a specified period; (vii) to create administrative, ministerial and other posts and to make appointments thereto; (viii) to co-operate or collaborate or associate with any other University or authority or institution of higher learning in such manner and for such purposes as the University may determine; (ix) to establish, with the prior approval of the Central Government, such centres and specialised laboratories, within or outside India, as are, in the opinion of the University necessary for the furtherance of its objects; (x) to institute and award fellowships, scholarships, studentships, medals and prizes; (xi) to establish and maintain Institutions and Halls; (xii) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations as the University may deem necessary; (xiii) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xiv) to make special arrangements in respect of the residence, discipline and teaching of women students as the University may consider desirable; 3 ----- (xv) to appoint, on contract or otherwise, visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xvi) to confer autonomous status on a Department in accordance with the Statutes; (xvii) to determine standards of admission to the University which may include examination, evaluation or any other method of testing; (xviii) to demand and receive payment of fees and other charges; (xix) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xx) to lay down conditions of service of all categories of employees including their code of conduct; (xxi) to regulate and enforce discipline among the students and the employees and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxii) to make arrangements for promoting the health and general welfare of the employees; (xxiii) to receive benefactions, donations and gifts and to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxiv) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxv) to organise suitable distance education programmes; (xxvi) to establish maintain or recognise Study Centres for the delivery of the distance education system in the manner laid down by the Ordinances; (xxvii) to provide for the preparation of instructional materials including films, cassettes, tapes, video cassettes and other software in collaboration with various Open Universities and other Institutions dealing with the distance education system; (xxviii) to devise and implement suitable schemes for providing a base for promotion and dissemination of Urdu and to bring about the essential continuity in education with special reference to the delivery system in distance education consistent with the objectives of the University; and (xxix) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **6. Jurisdiction.—The jurisdiction of the University shall extend to the whole of India.** **7. University open to all classes, castes and creeds.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or to be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, physically handicapped or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **8. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including Institution managed by it, and to submit a report thereon; and upon receipt of that report the Visitor may, after obtaining the views of the Executive Council thereon through the ViceChancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. 4 ----- (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct of the University, its buildings, laboratories and equipment and of any Institution maintained by the University and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (3), give notice of his intention to cause an inspection or inquiry to be made to the University and the University shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University shall be entitled to appoint a representative who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Executive Council shall communicate, through the Vice-Chancellor, to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (9) Where the Executive Council does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council, issue such directions as he may think fit and the Executive Council shall comply with such directions. (10) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with this Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (11) The Visitor shall have such other powers as may be prescribed by the Statutes. **9. Officers of the University.—The Following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Schools; (5) the Registrar; (6) the Finance Officer; (7) the Librarian; and (8) such other officers as may be declared by the Statutes to be officers of the University. **10. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the Head of the University. 5 ----- (3) The Chancellor shall, if present, preside at the convocation of the University held for conferring degrees. **11. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner and on such terms and conditions of service as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matters: Provided that if the authority concerned is of the opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the ViceChancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **12. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and** shall exercise such powers and perform such duties as may be prescribed by the Statutes. **13. The Deans of Schools.—Every Dean of a School shall be appointed in such manner and shall** exercise such powers and perform such duties as may be prescribed by the Statutes. **14. The Registrar.—(1) The Registrar shall be appointed in such manner as may be prescribed by the** Statutes. (2) The Registrar shall have the power to enter into agreement, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **15. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties as may be prescribed by the Statutes. **16. The Librarian.—The Librarian shall be appointed in such manner and shall exercise such powers** and perform such duties as may be prescribed by the Statutes. **17. Other officers.—The manner of appointment and powers and duties of the other officers of the** University shall be prescribed by the Statutes. **18. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Court; (2) the Executive Council; (3) the Academic Council; 6 ----- (4) the Board of Studies; (5) the Finance Committee; and (6) such other authorities as may be declared by the Statutes to be the authorities of the University. **19. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to advise the Visitor in respect of any matter which may be referred to it for advice; and (c) to perform such other functions as may be prescribed by the Statutes. **20. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **21. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. (2) The Constitution of the Academic Council, the term of office of its member and its powers and functions shall be prescribed by the Statutes. **22. The Board of Studies.—The constitution, powers and functions of the Board of Studies shall be** prescribed by the Statutes. **23. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **24. Other authorities of the University.—The constitution, powers and functions of other** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **25. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of the authorities, and other bodies of the University, as may be constituted from time to time; (b) appointment and continuance in office of the members of the said authorities and bodies, filling up of vacancies of members and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers and other academic staff and other employees of the University, their emoluments and other conditions of service; (e) the appointment of teachers, academic staff working in any other University or organisation for specific period for undertaking a joint project; (f) the conditions of service of employees including provision for pension, insurance and provident fund, the manner of termination of service and disciplinary action; (g) the principles governing the seniority of service of the employees of the University; (h) the procedure for arbitration in cases of dispute between employees or students and the University; 7 ----- (i) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (j) the conferment of autonomous status on an Institution or a Department; (k) the establishment and abolition of Schools, Departments, Centres, Halls and Institutions; (l) the conferment of honorary degrees; (m) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (n) the institution of fellowships, scholarships, studentships, medals and prizes; (o) the delegation of powers vested in the authorities or officers of the University; (p) the maintenance of discipline among the employees and students; and (q) all other matters which by this Act are to be or may be provided for by the Statutes. **26. Statutes how to be made.—(1) The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes and any opinion so expressed shall be considered by the Executive Council: Provided further that the Executive Council shall not consider to make, amend or repeal any statute relating to the matters provided under clauses (j) and (k) of section 25 except with the prior approval of the Visitor. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration in the light of observations, if any, made by him. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1) during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **27. Powers to make Ordinance.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, qualifications for the same and the means to be taken relating to the granting and obtaining of the same; 8 ----- (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the conditions for awards of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and prescribing of special courses of studies for them; (j) the appointments and emoluments of employees other than those for whom provision has been made in the Statutes; (k) the establishment of Centres of Studies, Boards of Studies, Special Centres, Specialised Laboratories and other Committees; (l) the manner of co-operation and collaboration with other Universities, Institutions and other agencies including learned bodies or associations in India or abroad; (m) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (n) such other terms and conditions of service of teachers and other academic staff as are not prescribed by the Statutes; (o) the management of Institutions established by the University; (p) setting up of a machinery for redressal of grievances of employees; and (q) all other matters which by this Act or the Statutes may be provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes. **28. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **29. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Visitor on or before such date as may be prescribed by the Statutes. (2) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **30. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be** prepared under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Visitor along with the observations, if any, of the Executive Council. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Executive Council and the views of the Executive Council, if any, on such observation shall be submitted to the Visitor. 9 ----- (4) A copy of the annual accounts together with the audit report as submitted to the Visitor shall also be submitted to the Central Government who shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. **31. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final and no suit shall lie in any civil court in respect of the matters decided by the Tribunal. (4) Every request made by the employee under sub-section (2) shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration Act, 1940 (10 of 1940). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **32. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examination of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 31 shall, as far as may be, apply to a reference made under this sub-section. **33. Right to appeal.—Every employee or student of the University of Institution maintained by the** University shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of Institution, as the case may be, and thereupon, the Executive Council may confirm, modify or reverse the decision appealed against. **34. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension funds or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provision of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **35. Disputes as to constitution of University authorities and bodies.—If any question arises as to** whether any person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **36. Constitution of Committees.—Where any authority of the University is given power by this Act** or the Statutes to appoint Committees, such Committees shall, save as otherwise provided, consist of the members of the authority concerned and of such other person, if any, as the authority in each case may think fit. 10 ----- **37. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and any person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **38. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or** proceedings of any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **39. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **40. Mode of proof of University records.—A copy of any receipt, application, notice, order,** proceeding, resolution of any authority or Committee of the University, or other documents in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as prima facie evidence of such receipt, application, notice, order, proceeding, resolution or documents or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence, notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force. **41. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **42. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor shall be appointed by the Visitor and the said officer shall hold office for a term of five years; (b) the first Vice-Chancellor shall be appointed by the Visitor and the said officer shall hold office for a term of five years; (c) the first Registrar and the First Finance Officer shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; (d) the first Court and the first Executive Council shall consist of not more than thirty members and eleven members, respectively, who shall be nominated by the Visitor and they shall hold office for a term of three years; (e) the first Academic Council shall consist of not more than twenty-one members, who shall be nominated by the Visitor and shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held that office, if such vacancy had not occurred. **43. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which 11 ----- may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinance or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudically affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. 12 ----- THE SCHEDULE (See section 26) THE STATUTES OF THE UNIVERSITY _The Chancellor_ 1.(1) The Chancellor shall be appointed by the Visitor from a panel of not less than three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of three years and shall be eligible for re-appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. _The Vice-Chancellor_ 2. (1) The Vice-Chancellor shall be appointed by the Visitor from a panel of not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for a fresh panel. (2) The Committee referred to in clause (1), shall consist of three persons, none of whom shall be an employee of the University or an institution associated with the University, or a member of the Executive Council or Academic Council or of any other authority of the University. Out of the three persons, two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, and he shall not be eligible for re-appointment: Provided that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him or till his successor is appointed and enters upon his office, whichever is earlier. (5) Notwithstanding anything contained in clause (4) a person appointed as Vice-Chancellor shall, if he attains the age of sixty-five years during the term of his office or any extension thereof, retire from office. (6) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances other than house rent allowance at the rates fixed by the Central Government from time to time: Provided that if he assumes office after retiring on superannuation from a pensionable post, his salary and allowance shall be reduced by the gross amount of his pension prior to commutation or the payment of pension shall be held in abeyance until he relinquishes office; Provided further that if he assumes office after retiring on superannuation from a non-pensionable post, his salary and allowances shall be reduced by the gross amount equivalent of retirement benefits availed of by him on superannuation; Provided also that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme. (ii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council. 13 ----- (iii) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half yearly instalments of fifteen days each on the 1[st] day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice Chancellor during the currency of a half year the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (iv) In addition to the leave referred to in sub-clause (iii), the Vice-Chancellor shall also be entitled to half pay leave at the rate of twenty days for each completed year of service. This half pay leave may also be availed of as commuted leave on full pay on medical certificate. When commuted leave is availed, twice the amount of half pay leave shall be debited against half pay leave due. (v) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Executive Council with the approval of the Visitor from time to time. (7) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior-most professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the existing Vice-Chancellor attends to the duties of his office as the case may be. _Powers and duties of the Vice-Chancellor_ 3. (1) The Vice-Chancellor shall be _ex officio_ Chairman of the Executive Council, the Academic Council, Finance Committee and shall in the absence of the Chancellor preside at the convocations held for conferring degrees. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed, and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall exercise control over the affairs of the University and shall give effect to the decisions of all the authorities of the University. (5) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such persons or person as he deems fit. (6) The Vice-Chancellor shall have the power to convene or cause to be convened the meeting of the Executive Council, the Academic Council and the Finance Committee. _Pro-Vice-Chancellor_ 4. (1) The Pro-Vice-Chancellor shall be appointed by the Executive Council on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice- Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of the Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of Office of the Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: 14 ----- Provided that the Pro-Vice-Chancellor whose term of office has expired shall be eligible for re-appointment: Provided further that, in any case, the Pro-Vice-Chancellor shall retire on attaining the age of Sixty five years. (3) The emoluments and other terms and conditions of service of the Pro-Vice-Chancellor shall be such as may be prescribed by the Executive Council from time to time. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. _Registrar_ 5. (1) The Registrar shall be appointed by the Executive Council on the recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Executive Council from time to time: Provided that the Registrar shall retire on attaining the age of sixty years: Provide further that a Registrar shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the Office of the Registrar is vacant or when the Registrar is, by reasons of illness, absence, or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5)(a) The Registrar shall have power to take disciplinary action against such of the employees, other than teachers and academic staff, as may be specified in the Ordinances, to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person concerned has been given reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio secretary of the Executive Council, the Academic Council and the Boards of Studies, but shall not be deemed to be a member of any of these authorities and he shall be _ex officio Member-Secretary of the Court._ (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charges; (b) to issue all notices convening meetings of the Court, the Executive Council, the Academic Council, the Boards of Studies and of any Committees appointed by those authorities; (c) to keep the minutes of all the meeting of the Executive Council, the Academic Council and of any Committees appointed by those authorities; 15 ----- (d) to conduct the official correspondence of the Executive Council and the Academic Council; (e) to arrange for and superintend the examinations of the University in accordance with the manner prescribed by the Ordinances; (f) to supply to the Visitor, copies of the agenda of the meetings of the authorities of the University as soon as they are issued; and the minutes of such meetings; (g) to represent the University in suits or proceedings by or against the University, sign powers of-attorney and verify pleadings or depute his representative for the purpose; and (h) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required, from time to time, by the Executive Council or the Vice-Chancellor. _The Finance Officer_ 6. (1) The Finance Officer shall be appointed by the Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Executive Council from time to time: Provided that a Finance Officer shall retire on attaining the age of sixty years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio_ Secretary of the Finance Committee, but shall not be deemed to be a Member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investment; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; 16 ----- (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Special Centres, Specialised Laboratories and Institutions maintained by the University; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Centre, Laboratory or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. _Deans of Schools of Studies_ 7. (1) Every Dean of a School of Studies shall be appointed by the Vice-Chancellor from among the Professors in the School for a period of three years and he shall be eligible for re-appointment: Provided that a Dean on attaining the age of sixty five years shall cease to hold office as such: Provided further that if at any time there is no Dean in a School, the Vice-Chancellor, Pro-Vice-Chancellor or a Dean authorised by the Vice-Chancellor in this behalf, shall exercise the powers of the Dean of the School. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in the School and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the School, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. _Heads of Departments_ 8. (1) In the case of Departments which have more than one Professor the Head of the Department shall be appointed by the Executive Council on the recommendation of the Vice-Chancellor from among the Professors. (2) In the case of Departments where there is no Professor or there is only one Professor, the Executive Council shall have the option to appoint, on the recommendation of the Vice-Chancellor, either the Professor or a Reader as the Head of the Department: Provided that it shall be open to a Professor or Reader to decline the offer of appointment as the Head of the Department. (3) A person appointed as the Head of the Department shall hold office as such for a period of three years and shall be eligible for re-appointment. (4) A Head of a Department may resign his office at any time during his tenure of office. (5) A Head of a Department shall perform such duties as may be prescribed by the Ordinances. _Proctor_ 9. (1) The Proctor shall be appointed by the Executive Council on the recommendation of the Vice Chancellor and shall exercise such powers and perform such duties as may be assigned to him by the Vice-Chancellor. (2) The Proctor shall hold office for a term of two years and shall be eligible for re-appointment. 17 ----- _Librarian_ 10. (1) The Librarian shall be appointed by the Executive Council on the recommendation of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Librarian shall exercise such powers and perform such duties and shall have such emoluments, terms and conditions of service as may be prescribed by the Executive Council. _The Court_ 11. Ten members of the Court shall form a quorum for a meeting of the Court. _The Executive Council_ 12. Five members of the Executive Council shall form a quorum for a meeting of the Executive Council. _Powers and functions of the Executive Council_ 13. (1) The Executive Council shall have the power of management and administration of the revenue and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff and Principals of Institutions maintained by the University: Provided that no action shall be taken by the Executive Council in respect of the number, qualifications and the emoluments of teachers and academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, and Principals of the Institutions maintained by the University on the recommendation of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to create administrative, ministerial and other necessary posts and to make appointments thereto in the manner prescribed by the Ordinances; (iv) to grant leave of absence to any officer of the University, other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (v) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vi) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University, and for that purpose to appoint such agents as it may think fit; (vii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendations of the Finance Committee; (viii) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (ix) to transfer or accept transfers of any movable or immovable property on behalf of the University; (x) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xi) to enter into, vary, carry out and cancel contracts on behalf of the University; 18 ----- (xii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiii) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xiv) to select a common seal for the University and provide for the custody and use of such seal; (xv) to make such special arrangements as may be necessary for the residence and discipline of women students; (xvi) to delegate any of its powers to the Vice-Chancellor, the Pro-Vice-Chancellor, the Deans, the Registrar or the Finance Officer or such other employee or authority of the University or to a committee appointed by it as it may deem fit; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for inviting Writer in Residence and determine the terms and conditions of such invitations; (xix) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; and (xx) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act, or the Statutes. _The Academic Council_ 14. Ten members of the Academic Council shall form quorum for a meeting of the Academic Council. _Powers and functions of the Academic Council_ 15. Subject to the Act, the Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instructions, co-ordinating teaching among the Institutions and evaluation of research or improvement in academic standards; (b) to bring about inter-School co-ordination, to establish or appoint committees or boards, for taking up projects on an inter-School basis; (c) to consider matters of general academic interest either on its own initiative or on a reference by a School or the Executive Council and to take appropriate action thereon; and (d) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residence, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. _Schools of Studies and Departments_ 16. (1) The University shall have such Schools of Studies as may be specified in the Statutes. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Executive Council and shall hold office for a period of three years. (3) The powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5)(a) Each School shall consist of such Departments as may be assigned to it by the Ordinances: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. 19 ----- (b) Each Department shall consist of the following members, namely:— (i) teachers of the Department; (ii) persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) such other persons as may be members of the Department in accordance with the provisions of the Ordinances. _Board of Studies_ 17. (1) Each Department shall have a Board of Studies. (2) The constitution of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of the Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) Courses of studies and appointment of examiners for post-graduate courses, but excluding research degrees; (b) appointment of supervisors of research; and (c) measures for the improvement of the standard of post-graduate teaching and research; Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. _Finance Committee_ 18. (1) The Finance Committee shall consist of the following members, namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) three persons nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (iv) three persons nominated by the Visitor. (2) Five members of Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) The Finance Committee shall meet at least twice every year to examine the accounts and to scrutinise proposals for expenditure. (5) All proposals relating to creation of post, and those items which have not been included in the Budget, should be examined by the Finance Committee for consideration and comments and thereafter submitted to the Executive Council. (6) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (7) The Finance Committee shall recommend limits for the, total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). 20 ----- _Selection Committees_ 19. (1) There shall be Selection Committees for making recommendations to the Executive Council for appointment to the posts of Professors, Readers, Lecturer, Registrar, Finance Officer, Librarian and Principals of the institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in column 1 of the Table below shall consist of the Vice-Chancellor, Pro-Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in column 2 of the said Table:— TABLE 1 2 Professor (i) The Dean of the School concerned. (ii) The Head of the Department Concerned if he is a professor. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Dean of the School concerned. (ii) The Head of the Department concerned. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader or a Lecturer will be concerned. Registrar/Finance Officer (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University nominated by the Executive Council. Librarian (i) Two persons not in the service of the University, who have special knowledge of the subject of the Library Science/Library Administration to be nominated by the Executive Council. (ii) One person not in the service of the University, nominated by the Executive Council. Head of the Institutions Three persons not in the service of the University maintained by the University of whom two shall be nominated by the Executive Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the institution. NOTE 1. Where the appointment is being made for an inter-disciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. 21 ----- 2. The professors to be nominated shall be Professor concerned with the speciality for which the selection is being made and that the Vice-Chancellor shall consult the Head of the Department and the Dean of the School before nominating the Professor. (3) The Vice-Chancellor, or in his absence, the Pro-Vice-Chancellor shall preside the meetings of a Selection Committee: Provided that the meetings of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of, Visitor’s nominee and the persons nominated by the Executive Council under clause (2): Provided further that the proceedings of Selection Committee shall not be valid unless,— (a) where the number of Visitor’s nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor’s nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The meeting of a Selection Committee shall be convened by the Vice-Chancellor or in his absence by the Pro-Vice-Chancellor. (5) The procedure to be followed by a Selection Committee in making recommendations shall be laid down in the Ordinances. (6) If the Executive Council is unable to accept the recommendations made by a Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (7) Appointments to temporary posts shall be made in the manner indicated below:— (i) If the temporary vacancy is for a duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interest of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis by a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in case sudden vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. _Special mode of appointment_ 20. (1) Notwithstanding anything contained in Statute 19, the Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or Reader or any other academic post in the University, as the case may be, on such terms and conditions as it deems fit, and on the person agreeing to do so, appoint him to the post. 22 ----- (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. _Appointment for a fixed tenure_ 21. The Executive Council may appoint a person selected in accordance with the procedure laid down in Statute 19 for a fixed tenure on such terms and conditions as it deems fit. _Committees_ 22. (1) Any authority of the University may appoint as many standing or special Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) Any such Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing. _Terms and conditions of service and code of conduct of the teachers, etc._ 23. (1) All the teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (3) A copy of every contract referred to in clause (2) shall be deposited with the Registrar. _Terms and conditions of service and code of conduct of other employees_ 24. All the employees of the University, other than the teachers and other academic staff of the University, shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. _Seniority list_ 25. (1) Whenever, in accordance with the Statutes, any person is to hold an Office or be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade, and in accordance with such other principles as the Executive Council may, from time to time, frame. (2) It shall be the duty of the Registrar to prepare and maintain, in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provision of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. _Removal of employees of the University_ 26. (1) Where there is an allegation of misconduct against a teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee, may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other 23 ----- academic staff, and the appointing authority, in respect of other employees, shall have the power to remove a teacher or a member of the academic staff, or as the case may be, other employee on ground of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months’ notice or on payment of three months’ salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months’ notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months’ salary in lieu thereof: (b) if he is not a permanent employee, only after giving three months’ notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month’s salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority, as the case may be. _Honorary degrees_ 27. (1) The Executive Council may, on the recommendation of the Academic Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. _Withdrawal of degrees, etc._ 28. The Executive Council may, by a special resolution passed by a majority of not less than two thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objection, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. _Maintenance of discipline among students of the University_ 29. (1) All powers relating to discipline and disciplinary action in relation to students of the University shall vest in the Vice-Chancellor. (2) The Vice-Chancellor may delegate all or any of his powers as he deems proper to a Proctor and to such other officers as he may specify in this behalf. 24 ----- (3) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of his powers, by order, direct that any student or students be expelled, or resticated, for a specified period, or be not admitted to a course or courses of study in an Institution or a Department of the University for stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, Institution or Department or a School for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (4) The Head of Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Institutions, Schools and teaching Departments in the University as may be necessary for the proper conduct of such Institutions, Schools and teaching Departments in the University. (5) Without prejudice to the powers of the Vice-Chancellor, and other persons specified in clause (4), detailed rules of discipline and proper conduct shall be made by the University. The principals of Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make the supplementary rules as they deem necessary for the aforesaid purposes. _Convocations_ 30. Convocations of the University for the conferring of degrees or for other purposes shall be held in such manner as may be prescribed by the Ordinances. _Acting Chairman of meetings_ 31. Where no provision is made for a President or Chairman to preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. _Resignation_ 32. Any member, other than an ex officio member, of the Court, the Executive Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. _Disqualifications_ 33. (1) A person shall be disqualified for being chosen as, and for being, a member of any of the authorities of the University,— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. _Residence condition for membership and office_ 34. Notwithstanding anything contained in the Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. _Membership of authorities by virtue of membership of other bodies_ 35. Notwithstanding anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular 25 ----- authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. _Ordinances how made_ 36. (1) The first Ordinances made under sub-section (2) of section 27 may be amended, repealed or added to at any time by the Executive Council in the manner specified below. (2) No Ordinances in respect of the matters enumerated in section 27, other than the one enumerated in clause (m) of sub-section (1) thereof, shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. The Visitor shall have the power to direct the University within four weeks of the receipt of the Ordinance to suspend the operation for any such Ordinance and he shall, as soon as possible, inform the Executive Council about his objection to the proposed Ordinance. The Visitor may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. _Regulations_ 37. (1) The authorities of the University may make Regulations consistent with the Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceeding of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. _Delegation of powers_ 38. Subject to the provisions of the Act and the Statutes, any officer or authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 26 -----
19-Mar-1997
07
The Industrial Reconstruction Bank (Transfer of Undertakings and Repeal) Act, 1997
https://www.indiacode.nic.in/bitstream/123456789/16226/1/A1997-07.pdf
central
# THE INDUSTRIAL RECONSTRUCTION BANK (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT, 1997 ______________ ARRANGEMENT OF SECTIONS ______________ CHAPTER I PRELIMINARY # SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II TRANSFER AND VESTING OF THE UNDERTAKING OF RECONSTRUCTION BANK IN COMPANY 3. Undertakings of the Reconstruction Bank to vest in company. 4. General effect of vesting of undertaking in Company. 5. Provisions in respect of officers and other employees of Reconstruction Bank. CHAPTER III MISCELLANEOUS 6. Concession, etc., to be deemed to have been granted to Company. 7. Tax exemption or benefit to continue to have effect. 8. Guarantee to be operative. 9. Arrangement with Company on appointment of directors to prevail. 10. Act 18 of 1891 to apply to the books of Company. 11. Shares, bonds and debentures to be deemed to be approved securities. 12. Substitution in Act, rules or regulations of company in place of the Reconstruction Bank. 13. Repeal and saving of Act 62 of 1984. CHAPTER IV AMENDMENT TO THE INDUSTRIAL RECONSTRATION BANK OF INDIA ACT, 1984 14. [Repealed.] 15. Repeal and Saving. 1 ----- # THE INDUSTRIAL RECONSTRUCTION BANK (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT, 1997 ACT NO. 7 OF 1997 [19th March, 1997.] # An Act to provide for the transfer and vesting of the undertakings of the Industrial Reconstruction Bank of India to and in the Company to be formed and registered as a Company under the Companies Act, 1956, and for matters connected therewith or incidental thereto and also to repeal the Industrial Reconstruction Bank of India Act, 1984. BE it enacted by Parliament in the Forty-eighth Year of the Republic of India as follows:- CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Industrial Reconstruction** Bank (Transfer of Undertakings and Repeal) Act, 1997. (2) It shall be deemed to have come into force on the 24th day of January, 1997. **2. Definitions.—In this Act, unless the context otherwise requires—** (a) “appointed day” means such date as the Central Government may, by notification in the Official Gazette, appoint under section 3; (b) “Company” means the Industrial Investment Bank of India Limited to be formed and registered under the Companies Act, 1956 (1 of 1956); (c) “Reconstruction Bank” means the Industrial Reconstruction Bank of India established under sub-section (1) of section 3 of the Industrial Reconstruction Bank of India Act, 1984 (62 of 1984). CHAPTER II TRANSFER AND VESTING OF THE UNDERTAKING OF RECONSTRUCTION BANK IN COMPANY **3. Undertakings of the Reconstruction Bank to vest in company.—On such date[1] as the Central** Government may, by notification in the Official Gazette, appoint, there shall be transferred to, and vest in, the Company, the undertakings of Reconstruction Bank. **4. General effect of vesting of undertaking in Company.—(1) The Central Government, being** the shareholder of the Reconstruction Bank immediately before the appointed day, shall be deemed to be registered, on and from the appointed day, as a shareholder of the Company. (2) The undertakings of the Reconstruction Bank which are transferred to, and which vest in, the Company under section 3 shall be deemed to include all business, assets, rights, powers, authorities and privileges and all properties, movable and immovable, real and personal, corporeal and incorporeal, in possession or reservation, present or contingent of whatever nature and wheresoever situate including lands, buildings, vehicles, cash balances, deposits, foreign currencies, disclosed and undisclosed reserves, reserve fund, special reserve fund, benevolent reserve fund, any other fund, stocks, investments, shares, bonds, debentures, security, management of any industrial concern, loans, advances and guarantees given to industrial concerns, tenancies, leases and book debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership, possession or power of the Reconstruction Bank in relation to its undertakings, within or without India, all books of account, registers, records and documents relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind within or without India then subsisting of the Reconstruction Bank in relation to its undertakings. 1. 27th March, 1997, vide notification No. S.O. 242(E), dated 25th March, 1997, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- (3) All contracts, deeds, bonds, guarantees, powers of attorney, other instruments and working arrangements subsisting immediately before the appointed day and affecting the Reconstruction Bank shall cease to have effect or to be enforceable against the Reconstruction Bank and shall be of as full force and effect against or in favour of the Company in which the undertakings of the Reconstruction Bank have vested by virtue of this Act and enforceable as fully and effectually as if instead of the Reconstruction Bank, the Company had been named therein or had been a party thereto. (4) Any proceeding or cause of action pending or existing immediately before the appointed day by or against the Reconstruction Bank in relation to its undertakings may, as from the appointed day, be continued and enforced by or against the Company in which the undertakings of the Reconstruction Bank have vested by virtue of this Act as it might have been enforced by or against the Reconstruction Bank if this Act had not been enacted and shall cease to be enforceable by or against the Reconstruction Bank. **5. Provisions in respect of officers and other employees of Reconstruction Bank.—(1) Every** officer or other employee of the Reconstruction Bank (except a Director of the Board or the Chairman and Managing Director) serving in the employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the undertakings which have vested in the Company by virtue of this Act, become, as from the appointed day, an officer or, as the case may be, other employee of the Company and shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same obligations and with the same rights and privileges as to leave, leave fare concession, welfare scheme, medical benefit scheme, insurance, provident fund, other funds, retirement, voluntary retirement, gratuity and other benefits as he would have held under the Reconstruction Bank if its undertakings had not vested in the Company and shall continue to do so as an officer or, as the case may be, other employee of the Company or until the expiry of a period of six months from the appointed day if such officer or other employee opts not to continue to be the officer or other employee of the Company within such period. (2) Where an officer or other employee of the Reconstruction Bank opts under sub-section (1) not to be in employment or service of the Company, such officer or other employee shall be deemed to have resigned. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) in any other law for the lime being in force, the transfer of the services of any officer or other employee of the Reconstruction Bank to the Company shall not entitle such officer or other employee to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. (4) The officers and other employees who have retired before the appointed day from the service of the Reconstruction Bank and are entitled to any benefits, rights or privileges shall be entitled to receive the same benefits, rights or privileges from the Company. (5) The trust of the provident fund or the gratuity fund of the Reconstruction Bank and any other bodies created for the welfare of officers or employees would continue to discharge their functions in the Company as was being done hitherto in the Reconstruction Bank and any tax exemption granted to the provident fund or the gratuity fund would continue to be applied to the Company. (6) Notwithstanding anything contained in this Act or in the Companies Act, 1956 (1 of 1956) or in any other law for the time being in force or in the regulations of the Reconstruction Bank, no Director of the Board, Chairman and Managing Director or any other person entitled to manage the whole or substantial part of the business and affairs of the Reconstruction Bank shall be entitled to any compensation against the Reconstruction Bank or the Company for the toss of office or for the premature termination of any contract of management entered into by him with the Reconstruction Bank. 3 ----- CHAPTER III MISCELLANEOUS **6. Concession, etc., to be deemed to have been granted to Company.—With effect from the** appointed day, all fiscal and other concessions, licences, benefits, privileges and exemptions granted to the Reconstruction Bank in connection with the affairs and business of the Reconstruction Bank under any law for the time being in force shall be deemed to have been granted to the Company. **7. Tax exemption or benefit to continue to have effect.—(1) Notwithstanding anything contained** in the Income-tax Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to tax or income, profits or gains, the Company shall not be liable to pay income-tax or any other tax for a period of five years computed from the appointed day in respect of any income, profits or gains derived, or any amount received by the Company. (2) The transfer and vesting of the undertakings or any part thereof in terms of section 3 shall not be construed as a transfer within the meaning of the Income-tax At, 1961 (43 of 1961) for the purposes of capital gains. **8. Guarantee to be operative.—Any guarantee given for or in favour of the Reconstruction Bank** with respect to any loan, lease finance or other assistance shall continue to be operative in relation to the Company. **9. Arrangement with Company on appointment of directors to prevail.—(1) Where any** arrangement entered into by the company with an industrial or other concern provides for the appointment by the company of one or more directors of such concern, such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956) or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to such concern, and any provision regarding share qualification, age limit, number of directorships, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the company in pursuance of the arrangement as aforesaid. (2) Any director appointed in pursuance of sub-section (7) shall— (a) hold office during the pleasure of the company and may be removed or substituted by any person by order in writing by the company; (b) not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anything in relation thereto; (c) not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement. **10. Act 18 of 1891 to apply to the books of Company.—The Company shall be deemed to be a** bank for the purposes of the Bankers' Books Evidence Act, 1891. **11. Shares, bonds and debentures to be deemed to be approved securities.—Notwithstanding** anything contained in any other law for the time being in force, the shares, bonds and debentures of the Company shall be deemed to be approved securities for the purposes of the Indian, Trusts Act, 1882 (2 of 1882), the Insurance Act, 1938 (4 of 1938) [2]***. **12. Substitution in Act, rules or regulations of company in place of the Reconstruction Bank.-** **—In every Act, rule or regulation in force on the appointed day,—** 1. The words and figures "and the Banking Regulation Act, 1949(10 of 1949)" shall be omitted by Act 4 of 2013, s. 17 and the Schedule (w.e.f. 18-1-2013). 4 ----- (a) for the words “Industrial Reconstruction Bank of India”, wherever they occur, the words “Industrial Investment Bank of India Limited” shall be substituted; (b) for the words “Reconstruction Bank”, wherever they occur, the words “Industrial Investment Bank” shall be substituted. **13. Repeal and saving of Act 62 of 1984.---(1) On the appointed day, the Industrial Reconstruction** Bank of India Act, 1984 shall stand repealed. (2) Notwithstanding the repeal of the Industrial Reconstruction Bank of India Act, 1984,- (a) the Company shall, so far as may be, comply with the provisions of Chapter VII of the Act so repealed for any of the purposes related to the annual accounts and audit of the Reconstruction Bank; (b) the provisions of Chapter VIII of the Act so repealed will continue to be applicable in respect of the arrangements entered into by the Reconstruction Bank with an industrial concern under section 18 thereof up to the appointed day and the Company will be entitled to act upon and enforce the same as fully and effectually as if this Act had not been enacted. CHAPTER IV AMENDMENT TO THE INDUSTRIAL RECONSTRATION BANK OF INDIA ACT, 1984 **14. [Insertion of new section 4A].—Rep. by the Repealing and Amending Act, 2001 (30 of 2001),** _s. 2 and the First schedule (w.e.f. 2-9-2001)._ **15. Repeal and Saving.—(1) The Industrial Reconstruction Bank (Transfer of Undertakings and** Repeal) Ordinance, 1997 (Ord. 7 of 1997) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed, shall tie deemed to have been done or taken under the corresponding provisions of this Act. 5 -----
25-Mar-1997
17
The Lalit Kala Akadami (Taking Over of Management) Act, 1997
https://www.indiacode.nic.in/bitstream/123456789/1894/1/A1997-17.pdf
central
# THE LALIT KALA AKADAMI (TAKING OVER OF MANAGEMENT) ACT, 1997 ________ ARRANGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II TAKING OVER OF THE MANAGEMENT OF THE LALIT KALA AKADAMI 3. Management of the society. 4. Administrator of society. 5. No right to compensation for premature termination of a contract. 6. Relinquishment of administration of the society. 7. Application of Act 21 of 1860. CHAPTER III MISCELLANEOUS 8. Penalties. 9. Offences by companies. 10. Exclusion of period of operation of Act. 11. Act to have overriding effect. 12. Protection of action taken in good faith. 13. Contracts in bad faith may be cancelled or varied. 14. Power to terminate contract of employment. 15. Power to make rules. 16. Repeal and saving. 1 ----- # THE LALIT KALA AKADAMI (TAKING OVER OF MANAGEMENT)ACT, 1997 ACT NO. 17 OF 1997 [25th March, 1997.] An Act to provide for the taking over of the management of the Lalit Kala Akadami for a limited period in the public interest and for matters connected therewith or incidental thereto. WHEREAS the Lalit Kala Akadami was set up as an apex cultural body in the field of visual arts by the Government of India by the Parliamentary Resolution passed on the 5th day of August, 1954 to encourage and promote visual arts such as paintings, graphics, sculptures, etc.; AND WHEREAS the Lalit Kala Akadami was registered as a society under the Societies Registration Act, 1860 (21 of 1860) on the 11th day of March, 1957; AND WHEREAS the Akadami has full functional autonomy in the field of its activity, even though the Government of India is the sole-funding agency for the organisation; AND WHEREAS pursuant to the complaints received with regard to the misuse of funds by the Lalit Kala Akadami from several quarters including from the Hon'ble Members of Parliament, a Committee was set up by the Government of India by Resolution dated the 24th day of March, 1988 under the Chairmanship of Shri P.N. Haksar to go into the functioning of National Akadamies including the Lalit Kala Akadami and the said Committee, after a detailed scrutiny of the affairs in the management of the said Akadami, recommended the restructuring of their General Council, Executive Board and the electoral roll, of the artists constituency; AND WHEREAS, in view of the serious difficulties which have arisen with regard to the management of the Lalit Kala Akadami, it is necessary to take over, for a limited period, the management thereof and it is felt that any delay in taking over the management of the Lalit Kala Akadami would be highly detrimental to the interests and objective of Akadami; BE it enacted by Parliament in the Forty-eighth Year of Republic of India as follows:– CHAPTER I PRELIMINARY **1. Short title and commencement.–(1) This Act may be called the Lalit Kala Akadami (Taking Over** of Management) Act, 1997. (2) It shall be deemed to have come into force on the 24th day of January, 1997. **2. Definitions.–In this Act, unless the context otherwise requires,–** (a) “Administrator” means a person appointed as the Administrator under section 4; (b) “prescribed” means prescribed by rules made under this Act; (c) “Societies Registration Act” means the Societies Registration Act, 1860 (21 of 1860), as in force in the National Capital Territory of Delhi; (d) “society” means the Lalit Kala Akadami being a society registered under the Societies Registration Act. 2 ----- (e) words and expressions used herein and not defined, but defined in the Societies Registration Act shall have the meanings respectively assigned to them in that Act. CHAPTER II TAKING OVER OF THE MANAGEMENT OF THE LALIT KALA AKADAMI **3. Management of the society.–(1) On and from the commencement of this Act, and for a period of** three years thereafter, the management of the society shall vest in the Central Government: Provided that if the Central Government is of opinion that in order to secure the proper management of the society, it is expedient that such management should continue to vest in the Central Government after the expiry of the said period of three years, it may, from time to time, issue directions for the continuance of such management for such period, not exceeding one year at a time, as it may think fit; so, however, that the total period for which such management shall continue to vest in the Central Government shall not, in any case, exceed five years. (2) The management of the society shall be deemed to include management of all assets, rights, lease holds, powers, authorities and privileges and all property, movable and immovable, including lands, buildings, works of art, workshops, projects, stores, instruments, library, machinery automobile and other vehicles, cash balances, reserve funds, investments and book debts and all other rights and interests arising out of such property as were immediately before the commencement of this Act in the ownership, possession, power or control of the society, and all such books of account, registers, maps, plans and all other documents of whatever nature relating thereto. (3) Any contracts, whether express or implied, or other arrangement, in so far as it relates to the management of the society and affairs of the society and in force immediately before the commencement of this Act shall be deemed to have terminated on such commencement. (4) All persons in charge of the management of the society, including persons holding offices as Chairman, Vice-Chairman, Secretary or Honorary Secretary, as the case may be, and members of the General Council, Executive Board, Finance Committee and all other committees of the society immediately before the commencement of this Act shall be deemed to have vacated their offices as such on such commencement. **4. Administrator of society.–(1) The Central Government shall, as from the commencement of this** Act, appoint a person as the Administrator of the society for the purpose of taking over the administration thereof and the Administrator shall carry on the management of the society for and on behalf of the Central Government. (2) Subject to the supervision, control and directions of the Administrator, the functions of the finance Committee of the Society, before the commencement of this Act, shall be exercised by an officer of the Central Government, to be appointed by that Government. (3) The Central Government may issue such directions (including directions as to initiating, defending or continuing any legal proceedings before any court, tribunal or other authority) to the Administrator as to his powers and duties as that Government may deem desirable and the Administrator may apply to the Central Government at any time for instructions as to the manner in which he shall conduct the management of the society or in relation to any matter arising in the course of such management. 3 ----- (4) Subject to the other provisions of this Act and the rules made thereunder and to the control of the Central Government, the Administrator shall be entitled, notwithstanding anything contained in the Societies Registration Act or any other law for the time being in force, to exercise, in relation to the management of the society, the powers of the General Council, or, as the case may be, the Executive Board, including the powers to dispose of any property or assets of such society, whether such powers are derived under any law for the time being in force or from the memorandum and rules and regulations of the society or from any other source. (5) Every person having possession, custody or control of any property forming part of the society shall deliver forthwith such property to the Administrator. (6) Any person who, on the commencement of this Act has in his possession or under his control any books, papers, works of art or other documents relating to management of the society, including the minutes books containing the resolutions of the persons in charge of the management of the society before the commencement of this Act, the current cheque books relating to the management of the society, any letters, memoranda, notes or other communications between him and the society shall, notwithstanding anything contained in any other law for the time being in force, be liable to account for the books, papers, works of art and other documents (including such minutes books, cheque books, letters, memoranda, notes or other communications) to the Administrator. (7) Any person in charge of the administration of the society immediately before the commencement of this Act shall, within ten days from that day or within such further period as the Central Government may allow in this behalf, furnish to the Administrator a complete inventory of all the properties and assets (including particulars of book debts and investments and belongings) forming part of the society immediately before the commencement of this Act, and of all the liabilities and obligations of the society, in relation to its administration, subsisting immediately before such commencement, and also of all agreements entered into by the society in relation to its administration and in force immediately before such commencement. (8) The Administrator shall receive from the funds of the society such remuneration as the Central Government may fix. **5. No right to compensation for premature termination of a contract.–Notwithstanding anything** contained in any law for the time being in force, no person in respect of whom any contract of management or other arrangement is terminated by reason of the provisions contained in sub-section (3) of section 3 or who ceases to hold any office by reason of the provisions contained in sub-section (4) of that section, shall be entitled to claim any compensation for the premature termination of the contract of administration or other arrangement or for the loss of his office. **6. Relinquishment of administration of the society.–(1) Notwithstanding anything contained in** sub-section (1) ofsection 3, if, at any time before the expiry of the period referred to in that sub-section, it appears to the Central Government that the purposes of the vesting of the management of the society in that Government have been fulfilled or that for any other reason it is not necessary that the management of the society should remain vested in that Government, it may, by order published in the Official Gazette, relinquish the management of the society with effect from such date as may be specified in the order. (2) On and from the date specified under sub-section (1), the administration of the society shall vest in the General Council of the society and such management shall be carried on in accordance with the 4 ----- provisions of the Societies Registration Act so, however, that the steps, if any, in relation to the management of the society may be taken after the publication of the order under sub-section (1). **7. Application of Act 21 of 1860.–(1) Notwithstanding anything contained in the Societies** Registration Act or in the memorandum and rules and regulations of the society, but subject to the provisions of sub-section (2) of section 6, so long as the management of the society remains vested in the Central Government.– (a) it shall not be lawful for the members of the society or any other person to nominate or appoint any person to be a member of the General Council of the society; (b) no resolution passed at any meeting of the members of the society or at any meeting of the General Council of the society, on or after the commencement of this Act, shall be given effect to unless approved by the Central Government; (c) no proceeding for the dissolution of the society or for the merger with any other society or for the appointment of a Receiver in respect of its administration shall lie in any court except with the consent of the Central Government. (2) Subject to the provisions contained in sub-section (1) and subject to such other exceptions, restrictions and limitations, if any, as may be prescribed, the Societies Registration Act shall continue to apply to the society in the same manner as it applied thereto before the commencement of this Act. CHAPTER III MISCELLANEOUS **8. Penalties.–Any person who,–** (a) having in his possession or custody or under his control any property forming part of the society, wrongfully withholds such property from the Administrator or any person authorised under this Act, or (b) wrongfully obtains possession of any such property, or (c) wilfully retains, or fails to deliver, any property forming part of the society or removes or destroys it, or (d) wilfully withholds or fails to account for any books, papers, works of art or other documents which may be in his possession or custody or under his control to the Administrator or any person authorised under this Act, or (e) fails, without any reasonable cause, to furnish information or particulars as provided in sub-section (6) of section 4, shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both. **9. Offences by companies.–(1) Where an offence under this Act has been committed by a company,** every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 5 ----- Provided that nothing contained in this section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.–For the purposes of this section,–_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **10. Exclusion of period of operation of Act.–In computing the period of limitation prescribed by** any law for the time being in force for any suit or application against any person by the society in respect of any matter arising out of any transaction in relation to its management, the time during which this Act is in force shall be excluded. **11. Act to have overriding effect.–The provisions of this Act or any notification, order or rule made** thereunder shall have effect notwithstanding anything inconsistent therewith contained in any law other than this Act or in any instrument having effect by virtue of any law other than this Act or in any decree or order of any court. **12. Protection of action taken in good faith.–(1) No suit, prosecution or other legal proceeding shall** lie against the Administrator or any officer of the Central Government or any other person for anything which is in good faith done or intended to be done under this Act. (2) No Suit or other legal proceeding shall lie against the Central Government or the Administrator or any officer of the Central Government or any other person for any damage caused or likely to be caused by anything which is in good faith done or intended to be done under this Act. **13. Contracts in bad faith may be cancelled or varied.–(1) If the Central Government is satisfied,** after such inquiry as it may think fit, that any contract or agreement entered into at any time within one year immediately preceding the commencement of this Act, between the society and any other person, in so far as such contract or agreement relates to the management of the society, has been entered into in bad faith, or is detrimental to the interests of the society, it may make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) such contract or agreement and thereafter the contract or agreement shall have effect accordingly: Provided that no contract or agreement shall be cancelled or varied except after giving to the parties to the contract or agreement a reasonable opportunity of being heard. (2) Any person aggrieved by an order under sub-section (1) may make an application to the High Court at Delhi for the variation or reversal of such order and thereupon such court may confirm, modify or reverse such order. 6 ----- **14. Power to terminate contract of employment.–If the Administrator is of opinion that any** contract of employment entered into by the society in relation to its management, at any time before the commencement of this Act, is unduly onerous, he may, by giving to the employee one month's notice in writing or the salary or wages for one month in lieu thereof, terminate such contract of employment. **15. Power to make rules.–(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or bothHouses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **16. Repeal and saving.–(1) The Lalit Kala Akadami (Taking Over of Management) Ordinance, 1997** (Ord. 10 of 1997) is hereby repealed. (2) Notwithstanding the repeal of the Lalit Kala Akadami (Taking Over of Management) Ordinance, 1997 (Ord. 10 of 1997), anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 7 -----
28-Mar-1997
24
The Telecom Regulatory Authority of India Act, 1997
https://www.indiacode.nic.in/bitstream/123456789/1929/5/a1997-24.pdf
central
# THE TELECOM REGULATORY AUTHORITY OF INDIA ACT, 1997 ____________ ARRANGEMENT OF SECTIONS CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II TELECOM REGULATORY AUTHORITY OF INDIA 3. Establishment and incorporation of Authority. 4. Qualifications for appointment of Chairperson and other members. 5. Term of office, conditions of service, etc., of Chairperson and other members. 6. Powers of Chairperson and Vice-Chairperson. 7. Removal and suspension of member from office in certain circumstances. 8. Meetings. 9. Vacancies, etc., not to invalidate proceedings of Authority. 10. Officers and other employees of Authority. CHAPTER III POWERS AND FUNCTIONS OF THE AUTHORITY 11. Functions of Authority. 12. Powers of Authority to call for information, conduct investigations, etc. 13. Power of Authority to issue directions. CHAPTER IV APPELLATE TRIBUNAL 14. Establishment of Appellate Tribunal. 14A. Application for settlement of disputes and appeals to Appellate Tribunal. 14B. Composition of Appellate Tribunal. 14C. Qualifications for appointment of Chairperson and Members. 14D. Term of office. 14E. Terms and conditions of service. 14F. Vacancies. 14G. Removal and resignation. 14GA. Qualifications, terms and conditions of service of Chairperson and Member. 14H. Staff of Appellate Tribunal. 14-I. Distribution of business amongst Benches. 14J. Power of Chairperson to transfer cases. 14K. Decision to be by majority. 14L. Members, etc., to be public servants. 14M. Transfer of pending cases. 14N. Transfer of appeals. 15. Civil court not to have jurisdiction. 16. Procedure and powers of Appellate Tribunal. 17. Right to legal representation. 18. Appeal to Supreme Court. ----- SECTIONS 19. Orders passed by Appellate Tribunal to be executable as a decree. 20. Penalty for wilful failure to comply with orders of Appellate Tribunal. CHAPTER V FINANCE, ACCOUNTS AND AUDIT 21. Grants by Central Government. 22. Fund. 23. Accounts and audit. 24. Furnishing of returns, etc., to Central Government. CHAPTER VI MISCELLANEOUS 25. Power of Central Government to issue directions. 26. Members, officers and employees of Authority to be public servants. 27. Bar of jurisdiction. 28. Protection of action taken in good faith. 29. Penalty for contravention of directions of Authority. 30. Offences by companies. 31. Offences by Government Departments. 32. Exemption from tax on wealth and income. 33. Delegation. 34. Cognizance of offences. 35. Power to make rules. 36. Power to make regulations. 37. Rules and regulations to be laid before Parliament. 38. Application of certain laws. 39. Power to remove difficulties. 40. Repeal and saving. ----- # THE TELECOM REGULATORY AUTHORITY OF INDIA ACT, 1997 ACT NO. 24 OF 1997 [28th March, 1997.] # An Act to provide for the establishment of the [1][Telecom Regulatory Authority of India and the Telecom Disputes Settlement and Appellate Tribunal to regulate the telecommunication services, adjudicate disputes, dispose of appeals and to protect the interests of service providers and consumers of the telecom sector, to promote and ensure orderly growth of the telecom sector] and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-eighth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Telecom Regulatory** Authority of India Act, 1997. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 25th day of January, 1997. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date with effect from which the Authority is established under sub-section (1) of section 3; 2[(aa) “Appellate Tribunal” means the Telecom Disputes Settlement and Appellate Tribunal established under section 14;] (b) “Authority” means the Telecom Regulatory Authority of India established under sub-section (1) of section 3; (c) “Chairperson” means the Chairperson of the Authority appointed under sub-section (3) of section 3; (d) “Fund” means the Fund constituted under sub-section (1) of section 22; (e) “licensee” means any person licensed under sub-section (1) of section 4 of the Indian Telegraph Act, 1885 (13 of 1885) for providing specified public telecommunication services; 2[(ea) “licensor” means the Central Government or the telegraph authority who grants a licence under section 4 of the Indian Telegraph Act, 1885 (13 of 1885);] (f) “member” means a member of the Authority appointed under sub-section (3) of section 3 and includes the Chairperson and the Vice-Chairperson; (g) “notification” means a notification published in the Official Gazette; (h) “prescribed” means prescribed by rules made under this Act; (i) “regulations” means regulations made by the Authority under this Act; (j) “service provider” means the [3][Government as a service provider] and includes a licensee; (k) “telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio tex services, video tex services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means but shall not include broadcasting services. 1. Subs. by Act 2 of 2000, s. 2, for “Telecom Regulatory Authority of India to regulate the telecommunication services,” (w.e.f. 24-1-2000). 2. Ins. by s. 3, ibid. (w.e.f. 24-1-2000). 3. Subs. by s. 3, ibid., for “Government” (w.e.f. 24-1-2000). ----- 1[Provided that the Central Government may notify other service to be telecommunication service including broadcasting services.] (2) Words and expressions used and not defined in this Act but defined in the Indian Telegraph Act, 1885 (13 of 1885) or the Indian Wireless Telegraphy Act, 1933 (17 of 1933), shall have the meanings respectively assigned to them in those Acts. (3) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir* shall in relation to that State be construed as a reference to the corresponding law, if any, in that State. CHAPTER II TELECOM REGULATORY AUTHORITY OF INDIA **3. Establishment and incorporation of Authority.—(1) With effect from such date as the Central** Government may, by notification appoint, there shall be established, for the purposes of this Act, an Authority to be called the Telecom Regulatory Authority of India. (2) The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. 2[(3) The Authority shall consist of a Chairperson, and not more than two whole-time members and not more than two part-time members, to be appointed by the Central Government.] (4) The head office of the Authority shall be at New Delhi. **3[4. Qualifications for appointment of Chairperson and other members.—The Chairperson and** other members of the Authority shall be appointed by the Central Government from amongst persons who have special knowledge of, and professional experience in, telecommunication, industry, finance, accountancy, law, management or consumer affairs: 4[Provided that a person who is, or has been, in the service of Government shall not be appointed— (a) as a Chairperson unless such person has held the post of Secretary to the Government of India or any equivalent post in the Central Government or the State Government; or. (b) as a member unless such person has held the post of Additional Secretary to the Government of India or any equivalent post in the Central Government or the State Government: Provided further that a person who is, or has been, in a service other than that of Government, shall be appointed— (a) as a Chairperson if such person has at least thirty years of professional experience and has served as a member of the board of directors or a chief executive of a company in the areas as specified in this section; or (b) as a Member if such person has at least twenty-five years of professional experience and has served as a member of the board of directors or chief executive of a company in the areas as specified in this section.]] **5. Term of office, conditions of service, etc., of Chairperson and other members.—(1) Before** appointing any person as the Chairperson or member, the Central Government shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such member. 5[(2) The Chairperson and other members shall hold office for a term not exceeding three years, as the Central Government may notify in this behalf, from the date on which they enter upon their offices or until they attain the age of sixty-five years, whichever is earlier. 1. Ins. by Act 2 of 2000, s. 3 (w.e.f. 24-1-2000). 2. Subs. by s. 4, ibid., for sub-section (3) (w.e.f. 24-1-2000). 3. Subs. by s. 5, ibid., for section 4 (w.e.f. 24-1-2000). 4. Subs. by Act 44 of 2023, s. 59(b) for the proviso (w.e.f. 5-7-2024). 5. Subs. by Act 2 of 2000, s. 6, for sub-sections (2) and (3) (w.e.f. 24-1-2000). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. ----- (3) On the commencement of the Telecom Regulatory Authority of India (Amendment) Act, 2000 (2 of 2000), a person appointed as Chairperson of the Authority and every other person appointed as member and holding office as such immediately before such commencement shall vacate their respective offices and such Chairperson and such other members shall be entitled to claim compensation not exceeding three months pay and allowances for the premature termination of the term of their offices or of any contract of service.] (4) The employee of the Government on his [1][selection as the Chairperson or whole-time member] shall have to retire from service before [2][joining as the Chairperson or a whole-time member, as the case may be]. (5) The salary and allowances payable to and the other terms and conditions of service of the Chairperson and [3][whole-time members] shall be such as may be prescribed. (6) The salary, allowances and other conditions of service of the Chairperson or of a member shall not be varied to his disadvantage after appointment. 4[(6A) The part-time members shall receive such allowances as may be prescribed.] (7) Notwithstanding anything contained in sub-section (2) [5]***, a member may— (a) relinquish his office by giving in writing to the Central Government notice of not less than three months; or (b) be removed from his office in accordance with the provisions of section 7. 6[(8) The Chairperson and the whole-time members shall not, for a period of two years from the date on which they cease to hold office as such, except with the previous approval of the Central Government, accept— (a) any employment either under the Central Government or under any State Government; or (b) any appointment in any company in the business of telecommunication services.] (9) A vacancy caused to the office of the Chairperson or any other member shall be filled up within a period of three months from the date on which such vacancy occurs. 7* - - - **6. Powers of Chairperson and Vice-Chairperson.—(1) The Chairperson shall have powers of** general superintendence and directions in the conduct of the affairs of the Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such powers and functions of the Authority and shall discharge such other powers and functions as may be prescribed. (2) The Central Government may appoint one of the members to be a Vice-Chairperson of the Authority who shall exercise and discharge such powers and functions of the Chairperson as may be prescribed or as may be delegated to him by the Authority. **7. Removal and suspension of member from office in certain circumstances.—(1) The Central** Government may remove from office any member, who,— (a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (c) has become physically or mentally incapable of acting as a member; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest. 1. Subs. by Act 2 of 2000, s. 6, for “selection as member” (w.e.f. 24-1-2000). 2. Subs. by s. 6, ibid., for “joining as member” (w.e.f. 24-1-2000). 3. Subs. by s. 6, ibid., for “other members” (w.e.f. 24-1-2000). 4. Ins. by s. 6, ibid. (w.e.f. 24-1-2000). 5. The words, brackets and figure “or sub-section (3)” omitted by s. 6, ibid. (w.e.f. 24-1-2000). 6. Subs. by Act 20 of 2014, s. 2, for sub-section (8) (w.e.f. 28-5-2014). 7. The Explanation omitted by s. 2, ibid. (w.e.f. 28-5-2014). ----- 1[(2) No such member shall be removed from his office under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.] **8. Meetings.—(1) The Authority shall meet at such times and places, and shall observe such rules of** procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be provided by regulations. (2) The Chairperson or, if for any reason, he is unable to attend a meeting of the Authority, Vice-Chairperson and in his absence, any other member chosen by the members present from amongst themselves at the meeting shall presided at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority vote of the members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding, shall have a second or casting vote. (4) The Authority may make regulations for the transaction of business at its meetings. **9. Vacancies, etc., not to invalidate proceedings of Authority.—No act or proceeding of the** Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. **10. Officers and other employees of Authority.—(1) The Authority may appoint officers and such** other employees as it considers necessary for the efficient discharge of its functions under this Act. (2) The salary and allowances payable to and the other conditions of service of the officers and other employees of the Authority appointed under sub-section (1) shall be such as may be [2][prescribed]: 3[Provided that any regulation, in respect of the salary and allowances payable to and other conditions of service of the officers and other employees of the Authority, made before the commencement of the Telecom Regulatory Authority of India (Amendment) Act, 2000 (2 of 2000),shall cease to have effect immediately on the notification of rules made under clause (ca) of sub-section (2) of section 35.] CHAPTER III POWERS AND FUNCTIONS OF THE AUTHORITY **11. Functions of Authority.—[4][(1) Notwithstanding anything contained in the Indian Telegraph** Act,1885 (13 of 1885),the functions of the Authority shall be to— (a) make recommendations, either suo motu or on a request from the licensor, on the following matters, namely:— (i) need and timing for introduction of new service provider; (ii) terms and conditions of licence to a service provider; (iii) revocation of license for non-compliance of terms and conditions of licence; (iv) measures to facilitate competition and promote efficiency in the operation of telecommunication services so as to facilitate growth in such services; (v) technological improvements in the services provided by the service providers; (vi) type of equipment to be used by the service providers after inspection of equipment used in the network; (vii) measures for the development of telecommunication technology and any other matter relatable to telecommunication industry in general; (viii) efficient management of available spectrum; (b) discharge the following functions, namely:— (i) ensure compliance of terms and conditions of licence; 1. Subs. by Act 2 of 2000, s. 7, for sub-sections (2) and (3) (w.e.f. 24-1-2000). 2. Subs. by s. 8, ibid., for “determined by regulations” (w.e.f. 24-1-2000). 3. Ins. by s. 8, ibid. (w.e.f. 24-1-2000). 4. Subs. by s. 9, ibid., for sub-section (1) (w.e.f. 24-1-2000). ----- (ii) notwithstanding anything contained in the terms and conditions of the licence granted before the commencement of the Telecom Regulatory Authority of India (Amendment) Act, 2000 (2 of 2000), fix the terms and conditions of inter-connectivity between the service providers; (iii) ensure technical compatibility and effective inter-connection between different service providers; (iv) regulate arrangement amongst service providers of sharing their revenue derived from providing telecommunication services; (v) lay-down the standards of quality of service to be provided by the service providers and ensure the quality of service and conduct the periodical survey of such service provided by the service providers so as to protect interest of the consumers of telecommunication service; (vi) lay-down and ensure the time period for providing local and long distance circuits of telecommunication between different service providers; (vii) maintain register of inter-connect agreements and of all such other matters as may be provided in the regulations; (viii) keep register maintained under clause (vii) open for inspection to any member of public on payment of such fee and compliance of such other requirement as may be provided in the regulations; (ix) ensure effective compliance of universal service obligations; (c) levy fees and other charges at such rates and in respect of such services as may be determined by regulations; (d) perform such other functions including such administrative and financial functions as may be entrusted to it by the Central Government or as may be necessary to carry out the provisions of this Act: Provided that the recommendations of the Authority specified in clause (a) of this sub-section shall not be binding upon the Central Government: Provided further that the Central Government shall seek the recommendations of the Authority in respect of matters specified in sub-clauses (i) and (ii) of clause (a) of this sub-section in respect of new licence to be issued to a service provider and the Authority shall forward its recommendations within a period of sixty days from the date on which that Government sought the recommendations: Provided also that the Authority may request the Central Government to furnish such information or documents as may be necessary for the purpose of making recommendations under sub-clauses (i) and (ii) of clause (a) of this sub-section and that Government shall supply such information within a period of seven days from receipt of such request: Provided also that the Central Government may issue a licence to a service provider if no recommendations are received from the Authority within the period specified in the second proviso or within such period as may be mutually agreed upon between the Central Government and the Authority: Provided also that if the Central Government, having considered that recommendation of the Authority, comes to a prima facie conclusion that such recommendation cannot be accepted or needs modifications, it shall refer the recommendation back to the Authority for its reconsideration, and the Authority may, within fifteen days from the date of receipt of such reference, forward to the Central Government its recommendation after considering the reference made by that Government. After receipt of further recommendation if any, the Central Government shall take a final decision.] (2) Notwithstanding anything contained in the Indian Telegraph Act, 1885 (13 of 1885), the Authority may, from time to time, by order, notify in the Official Gazette the rates at which the telecommunication services within India and outside India shall be provided under this Act including the rates at which messages shall be transmitted to any country outside India: ----- Provided that the Authority may notify different rates for different persons or class of persons for similar telecommunication services and where different rates are fixed as aforesaid the Authority shall record the reasons therefor. (3) While discharging its functions [1][under sub-section (1) or sub-section (2)], the Authority shall not act against the interest of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality. (4) The Authority shall ensure transparency while exercising its powers and discharging its functions. **12. Powers of Authority to call for information, conduct investigations, etc.—(1) Where the** Authority considers it expedient so to do, it may, by order in writing,— (a) call upon any service provider at any time to furnish in writing such information or explanation relating to its affairs as the Authority may require; or (b) appoint one or more persons to make an inquiry in relation to the affairs of any service provider; and (c) direct any of its officers or employees to inspect the books of account or other documents of any service provider. (2) Where any inquiry in relation to the affairs of a service provider has been undertaken under sub section (1),— (a) every officer of the Government Department, if such service provider is a department of the Government; (b) every director, manager, secretary or other officer, if such service provider is a company; or (c) every partner, manager, secretary or other officer, if such service provider is a firm; or (d) every other person or body of persons who has had dealings in the course of business with any of the persons mentioned in clauses (b) and (c), shall be bound to produce before the Authority making the inquiry, all such books of account or other documents in his custody or power relating to, or having a bearing on the subject-matter of such inquiry and also to furnish to the Authority with any such statement or information relating thereto, as the case may be, required of him, within such time as may be specified. (3) Every service provider shall maintain such books of account or other documents as may be prescribed. (4) The Authority shall have the power to issue such directions to service providers as it may consider necessary for proper functioning by service providers. **13. Power of Authority to issue directions.—The Authority may, for the discharge of its functions** under sub-section (1) of section 11, issue such directions from time to time to the service providers, as it may consider necessary: 2[Provided that no direction under sub-section (4) of section 12 or under this section shall be issued except on the matters specified in clause (b) of sub-section (1) of section 11.] 3[CHAPTER IV APPELLATE TRIBUNAL **14. Establishment of Appellate Tribunal.—The Central Government shall, by notification, establish** an Appellate Tribunal to be known as the Telecom Disputes Settlement and Appellate Tribunal to— (a) adjudicate any dispute— (i) between a licensor and a licensee; (ii) between two or more service providers; 1. Subs. by Act 2 of 2000, s. 9, for “under sub-section (1)” (w.e.f. 24-1-2000). 2. Ins. by s. 10, ibid. (w.e.f. 24-1-2000). 3. Subs. by s. 11, ibid., for Chapter IV (w.e.f. 24-1-2000). ----- (iii) between a service provider and a group of consumers: Provided that nothing in this clause shall apply in respect of matters relating to— (A) the monopolistic trade practice, restrictive trade practice and unfair trade practice which are subject to the jurisdiction of the Monopolies and Restrictive Trade Practices Commission established under sub-section (1) of section 5 of the Monopolies and Restrictive Trade Practices Act, 1969(54 of 1969); (B) the complaint of an individual consumer maintainable before a Consumer Disputes Redressal Forum or a Consumer Disputes Redressal Commission or the National Consumer Redressal Commission established under section 9 of the Consumer Protection Act, 1986(68 of 1986); (C) the dispute between telegraph authority and any other person referred to in sub-section (1) of section 7B of the Indian Telegraph Act, 1885 (13 of 1885); (b) hear and dispose of appeal against any direction, decision or order of the Authority under this Act. 1[(c) exercise jurisdiction, powers and authority conferred on— (i) the Appellate Tribunal under the Information Technology Act, 2000 (21 of 2000); and (ii) the Appellate Tribunal under the Airports Economic Regulatory Authority of India Act, 2008 (27 of 2008).] **14A. Application for settlement of disputes and appeals to Appellate Tribunal.—(1) The Central** Government or a State Government or a local authority or any person may make an application to the Appellate Tribunal for adjudication of any dispute referred to in clause (a) of section 14. (2) The Central Government or a State Government or a local authority or any person aggrieved by any direction, decision or order made by the Authority may prefer an appeal to the Appellate Tribunal. (3) Every appeal under sub-section (2) shall be preferred within a period of thirty days from the date on which a copy of the direction or order or decision made by the Authority is received by the Central Government or the State Government or the local authority or the aggrieved person and it shall be in such form, verified in such manner and be accompanied by such fee as may be prescribed: Provided that the Appellate Tribunal may entertain any appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period. (4) On receipt of an application under sub-section (1) or an appeal under sub-section (2), the Appellate Tribunal may, after giving the parties to the dispute or the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. (5) The Appellate Tribunal shall send a copy of every order made by it to the parties to the dispute or the appeal and to the Authority, as the case may be. (6) The application made under sub-section (1) or the appeal preferred under sub-section (2) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the application or appeal finally within ninety days from the date of receipt of application or appeal, as the case may be: Provided that where any such application or appeal could not be disposed of within the said period of ninety days, the Appellate Tribunal shall record its reasons in writing for not disposing of the application or appeal within that period. (7) The Appellate Tribunal may, for the purpose of examining the legality or propriety or correctness of any dispute made in any application under sub-section (1) or of any direction or order or decision of the Authority referred to in the appeal preferred under sub-section (2), on its own motion or otherwise, call for the records relevant to disposing of such application or appeal and make such orders as it thinks fit. 1. Ins. by Act 7 of 2017, s. 168 (w.e.f. 26-5-2017). ----- **14B. Composition of Appellate Tribunal.—(1) The Appellate Tribunal shall consist of a** Chairperson and not more than two Members to be appointed, by notification, by the Central Government. (2) The selection of Chairperson and Members of the Appellate Tribunal shall be made by the Central Government in consultation with the Chief Justice of India. (3) Subject to the provisions of this Act,— (a) the jurisdiction of the Appellate Tribunal may be exercised by the Benches thereof; (b) a Bench may be constituted by the Chairperson of the Appellate Tribunal with one or two Members of such Tribunal as the Chairperson may deem fit; (c) the Benches of the Appellate Tribunal shall ordinarily sit at New Delhi and at such other places as the Central Government may, in consultation with the Chairperson of the Appellate Tribunal, notify; (d) the Central Government shall notify the areas in relation to which each Bench of the Appellate Tribunal may exercise its jurisdiction. (4) Notwithstanding anything contained in sub-section (2), the Chairperson of the Appellate Tribunal may transfer a Member of such Tribunal from one Bench to another Bench. (5) If at any stage of the hearing of any case or matter it appears to the Chairperson or a Member of the Appellate Tribunal that the case or matter is of such a nature that it ought to be heard by a Bench consisting of two Members, the case or matter may be transferred by the Chairperson to such Bench as the Chairperson may deem fit. **14C. Qualifications for appointment of Chairperson and Members.—A person shall not be** qualified for appointment as the Chairperson or a Member of the Appellate Tribunal unless he— (a) in the case of Chairperson, is, or has been, a Judge of the Supreme Court or the Chief Justice of a High Court; (b) in the case of a Member, has held the post of Secretary to the Government of India or any equivalent post in the Central Government or the State Government for a period of not less than two years or a person who is well versed in the field of technology, telecommunication, industry, commerce or administration. **14D. Term of office.—The Chairperson and every other Member of the Appellate Tribunal shall hold** office as such for a term not exceeding three years from the date on which he enters upon his office: Provided that no Chairperson or other Member shall hold office as such after he has attained,— (a) in the case of Chairperson, the age of seventy years; (b) in the case of any other Member, the age of sixty-five years. **14E. Terms and conditions of service.—The salary and allowances payable to and the other terms** and conditions of service of the Chairperson and other Members of the Appellate Tribunal shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson or a Member of the Appellate Tribunal shall be varied to his disadvantage after appointment. **14F. Vacancies.—If, for reason other than temporary absence, any vacancy occurs in the office of the** Chairperson or a Member of the Appellate Tribunal, the Central Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Appellate Tribunal from the stage at which the vacancy is filled. **14G. Removal and resignation.—(1) The Central Government may remove from office, the** Chairperson or any Member of the Appellate Tribunal, who— (a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or ----- (c) has become physically or mentally incapable of acting as the Chairperson or a Member; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as the Chairperson or a Member; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest. (2) Notwithstanding anything contained in sub-section (1), the Chairperson or a Member of the Appellate Tribunal shall not be removed from his office on the ground specified in clause (d) or clause (e) of that sub-section unless the Supreme Court on a reference being made to it in this behalf by the Central Government, has, on an enquiry, held by it in accordance with such procedure as it may specify in this behalf, reported that the Chairperson or a Member ought on such ground or grounds to be removed. (3) The Central Government may suspend from office, the Chairperson or a Member of the Appellate Tribunal in respect of whom a reference has been made to the Supreme Court under sub-section (2), until the Central Government has passed an order on receipt of the report of the Supreme Court on such reference. 1[14GA. Qualifications, terms and conditions of service of Chairperson and Member.— Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal appointed after the commencement of [2][the Tribunals Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]: Provided that the Chairperson and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the rules made there under as if the provisions of section 184 of the Finance Act, 2017 had not come into force.] **14H. Staff of Appellate Tribunal.—(1) The Central Government shall provide the Appellate** Tribunal with such officers and employees as it may deem fit. (2) The officers and employees of the Appellate Tribunal shall discharge their functions under the general superintendence of its Chairperson. (3) The salaries and allowances and other conditions of service of the officers and employees of the Appellate Tribunal shall be such as may be prescribed. **14-I. Distribution of business amongst Benches.—Where Benches are constituted, the Chairperson** of the Appellate Tribunal may, from time to time, by notification, make provisions as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with by each Bench. **14J. Power of Chairperson to transfer cases.—On the application of any of the parties and after** notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Chairperson of the Appellate Tribunal may transfer any case pending before one Bench, for disposal, to any other Bench. **14K. Decision to be by majority.—If the Members of a Bench consisting of two Members differ in** opinion on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson of the Appellate Tribunal who shall hear the point or points himself and such point or points shall be decided according to the opinion of the majority who have heard the case, including those who first heard it. **14L. Members, etc., to be public servants.—The Chairperson, Members and other officers and** employees of the Appellate Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). 1. Ins. by Act 7 of 2017, s. 168 (w.e.f. 26-5-2017). 2. Subs. by Act 33 of 2021, s. 20, for “Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act” (w.e.f. 4-4-2021). ----- **14M. Transfer of pending cases.—All applications, pending for adjudication of disputes before the** Authority immediately before the date of establishment of the Appellate Tribunal under this Act, shall stand transferred on that date to such Tribunal: Provided that all disputes being adjudicated under the provisions of Chapter IV as it stood immediately before the commencement of the Telecom Regulatory Authority of India (Amendment) Act, 2000 (2 of 2000), shall continue to be adjudicated by the Authority in accordance with the provisions contained in that Chapter, till the establishment of the Appellate Tribunal under this Act: Provided further that all cases referred to in the first proviso shall be transferred by the Authority to the Appellate Tribunal immediately on its establishment under section 14. **14N. Transfer of appeals.—(1) All appeals pending before the High Court immediately before the** commencement of the Telecom Regulatory Authority of India (Amendment) Act, 2000 (2 of 2000), shall stand transferred to the Appellate Tribunal on its establishment under section 14. (2) Where any appeal stands transferred from the High Court to the Appellate Tribunal under sub-section (1),— (a) the High Court shall, as soon as may be after such transfer, forward the records of such appeal to the Appellate Tribunal; and (b) the Appellate Tribunal may, on receipt of such records, proceed to deal with such appeal, so far as may be from the stage which was reached before such transfer or from any earlier stage or _de_ _novo as the Appellate Tribunal may deem fit._ **15. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **16. Procedure and powers of Appellate Tribunal.—(1) The Appellate Tribunal shall not be bound** by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Appellate Tribunal shall have powers to regulate its own procedure. (2) The Appellate Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or a copy of such record or document, from any office; (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing an application for default or deciding it, ex parte; (h) setting aside any order of dismissal of any application for default or any order passed by it, ex _parte; and_ (i) any other matter which may be prescribed. (3) Every proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860) and the Appellate Tribunal shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). ----- **17. Right to legal representation.—The applicant or appellant may either appear in person or** authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Appellate Tribunal. _Explanation.—for the purposes of this section,—_ (a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (b) “company secretary” means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (c) “cost accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (d) “legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice. **18. Appeal to Supreme Court.—(1) Notwithstanding anything contained in the Code of Civil** Procedure, 1908 (5 of 1908),or in any other law, an appeal shall lie against any order, not being an interlocutory order, of the Appellate Tribunal to the Supreme Court on one or more of the grounds specified in section 100 of that Code. (2) No appeal shall lie against any decision or order made by the Appellate Tribunal with the consent of the parties. (3) Every appeal under this section shall be preferred within a period of ninety days from the date of the decision or order appealed against: Provided that the Supreme Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. **19. Orders passed by Appellate Tribunal to be executable as a decree.—(1) An order passed by** the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court. (2) Notwithstanding anything contained in sub-section(1), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that court. **20. Penalty for wilful failure to comply with orders of Appellate Tribunal.—If any person** wilfully fails to comply with the order of the Appellate Tribunal, he shall be punishable with fine which may extend to one lakh rupees and in case of a second or subsequent offence with fine which may extend to two lakh rupees and in the case of continuing contravention with additional fine which may extend to two lakh rupees for every day during which such default continues.] CHAPTER V FINANCE, ACCOUNTS AND AUDIT **21. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, make to the Authority grants of such sums of money as are required to pay salaries and allowances payable to the Chairperson and the members and the administrative expenses including the salaries, allowances and pension payable to or in respect of officers and other employees of the Authority. **22. Fund.—(1) There shall be constituted a Fund to be called the Telecom Regulatory Authority of** India General Fund and there shall be credited thereto— (a) all grants, fees and charges received by the Authority under this Act; and (b) all sums received by the Authority from such other sources as may be decided upon by the Central Government. ----- (2) The Fund shall be applied for meeting— (a) the salaries and allowances payable to the Chairperson and members and the administrative expenses including the salaries, allowances and pension payable to or in respect of officers and other employees of the Authority; and (b) the expenses on objects and for purposes authorised by this Act. **23. Accounts and audit.—(1) The Authority shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such auditor shall be payable by the Authority to the Comptroller and Auditor-General of India. 1[Explanation.—For the removal of doubts, it is hereby declared that the decisions of the Authority taken in the discharge of its functions under clause (b) of sub-section (1) and sub-section (2) of section 11 and section 13, being matters appealable to the Appellate Tribunal, shall not be subject to audit under this section.] (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has, in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority. (4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **24. Furnishing of returns, etc., to Central Government.—(1) The Authority shall furnish to the** Central Government at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of the telecommunication services, as the Central Government may from time to time, require. (2) The Authority shall prepare once every year in such form and at such time as may be prescribed, an annual report giving a summary of its activities during the previous year and copies of the report shall be forwarded to the Central Government. (3) A copy of the report received under sub-section (2) shall be laid, as soon as may be after it is received, before each House of Parliament. CHAPTER VI MISCELLANEOUS **25. Power of Central Government to issue directions.—(1) The Central Government may, from to** time to time, issue to the Authority such directions as it may think necessary in the interest of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality. (2) Without prejudice to the foregoing provisions, the Authority shall, in exercise of its powers or the performance of its functions, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (3) The decision of the Central Government whether a question is one of policy or not shall be final. 1. Ins. by Act 2 of 2000, s. 12 (w.e.f. 24-1-2000). ----- **26. Members, officers and employees of Authority to be public servants.—All members, officers** and other employees of the Authority shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **27. Bar of jurisdiction.—No civil court shall have jurisdiction in respect of any matter which the** Authority is empowered by or under this Act to determine. **28. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government or the Authority or any officer of Central Government or any member, officer or other employees of the Authority for anything which is in good faith done or intended to be done under this Act or the rules or regulations made there under. **29. Penalty for contravention of directions of Authority.—If a person violates directions of the** Authority, such person shall be punishable with fine which may extend to one lakh rupees and in case of second or subsequent offence with fine which may extend to two lakh rupees and in the case of continuing contravention with additional fine which may extend to two lakh rupees for every day during which the default continues. **30. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means anybody corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **31. Offences by Government Departments.—(1) Where an offence under this Act has been** committed by any Department of Government, the Head of the Department shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a Department of Government and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any officer, other than the Head of the Department, such officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. **32. Exemption from tax on wealth and income.—Notwithstanding anything contained in the** Wealth-tax Act, 1957 (27 of 1957), the Income-tax Act, 1961 (43 of 1961), or any other enactment for the time being in force relating to tax on wealth, income, profits or gains, the Authority shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived. **33. Delegation.—The Authority may, by general or special order in writing, delegate to any member,** officer of the Authority or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the power to settle dispute under Chapter IV and to make regulation under section 36) as it may deem necessary. ----- **34. Cognizance of offences.—(1) No court shall take cognizance of any offence punishable under** this Act or the rules or regulations made thereunder, save on a complaint made by the Authority. (2) No court inferior to that of a Chief Metropolitan Magistrate or a Chief Judicial Magistrate of first class shall try any offence punishable under this Act. **35. Power to make rules.—(1) The Central Government may, by notification, make rules for** carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the salary and allowances payable to and the other conditions of service of the Chairperson and members under sub-section (5) of section 5; 1[(aa) the allowances payable to the part-time members under sub-section (6A) of section 5;] (b) the powers and functions of the Chairperson under sub-section (1) of section 6; (c) the procedure for conducting an inquiry made under sub-section (2) of section 7; 1[(ca) the salary and allowances and other conditions of service of officers and other employees of the Authority under sub-section (2) of section 10;] (d) the category of books of account or other documents which are required to be maintained under sub-section (3) of section 12; 1[(da) the form, the manner of its verification and the fee under sub-section (3) of section 14A; (db) the salary and allowances payable to and other terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal under section 14E; (dc) the salary and allowances and other conditions of service of the officers and employees of the Appellate Tribunal under sub-section (3) of section 14H; (dd) any other power of a civil court required to be prescribed under clause (i) of sub-section (2) of section 16;] (e) the period within which an application is to be made under sub-section (1) of section 15; (f) the manner in which the accounts of the Authority shall be maintained under sub-section (1) of section 23; (g) the time within which and the form and manner in which returns and report are to be made to the Central Government under sub-sections (1) and (2) of section 24; (h) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules. **36. Power to make regulations.—(1) The Authority may, by notification, make regulations** consistent with this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the times and places of meetings of the Authority and the procedure to be followed at such meetings under sub-section (1) of section 8, including quorum necessary for the transaction of business; (b) the transaction of business at the meetings of the Authority under sub-section (4) of section 8; 2* - - - (d) matters in respect of which register is to be maintained by the Authority [3][under sub-clause (vii) of clause (b)] of sub-section (1) of section 11; (e) levy of fee and lay down such other requirements on fulfilment of which a copy of register may be obtained [4][under sub-clause (viii) of clause (b)] of sub-section (1) of section 11; 1. Ins. by Act 2 of 2000, s. 13 (w.e.f. 24-1-2000). 2. Clause (c) omitted by s. 14, ibid. (w.e.f. 24-1-2000). 3. Subs. by s. 14, ibid., for “under clause (l)” (w.e.f. 24-1-2000). 4. Subs. by s. 14, ibid., for “under clause (m)” (w.e.f. 24-1-2000). ----- (f) levy of fees and other charges [1][under clause (c)] of sub-section (1) of section 11; **37. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **38. Application of certain laws.—The provisions of this Act shall be in addition to the provisions of** the Indian Telegraph Act, 1885 (13 of 1885) and the Indian Wireless Telegraphy Act, 1933 (17 of 1933) and, in particular, nothing in this Act shall affect any jurisdiction, powers and functions required to be exercised or performed by the Telegraph Authority in relation to any area falling within the jurisdiction of such Authority. **39. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **40. Repeal and saving.—(1) The Telecom Regulatory Authority of India Ordinance 1997 (Ord. 11 of** 1997) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 1. Subs. by Act 2 of 2000, s. 14, for “under clause (p)” (w.e.f. 24-1-2000). -----
28-May-1997
30
The Vice-President s Pension Act, 1997
https://www.indiacode.nic.in/bitstream/123456789/1936/2/A1997-30.pdf
central
# THE VICE-PRESIDENT'S PENSION ACT, 1997 _________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title. 2. Pension to retiring Vice-Presidents. 3. Medical facilities to the family of deceased Vice-President. 3A. Free accommodation to spouse of Vice-President. 4. Pension to be charged on the Consolidated Fund of India. 5. Power to make rules. 6. Power to remove difficulties. 1 ----- # THE VICE-PRESIDENT'S PENSION ACT, 1997 ACT NO. 30 OF 1997 [28th May, 1997.] # An Act to provide for the payment of pension and other facilities to retiring Vice-Presidents. BE it enacted by Parliament in the Forty-eighth Year of the Republic of India as follows:– **1. Short title.–This Act may be called the Vice-President’s Pension Act, 1997.** **2. Pension to retiring Vice-Presidents.–(1) There shall be paid to every person who ceases to hold** office as Vice-President, either by the expiration of his term of office or by resignation of his office, a pension [1][at the rate of fifty per cent. of the salary of the Vice-President] per month, for the remainder of his life: Provided that such person shall not be entitled to receive any pension during the period he holds the office of the Prime Minister, a Minister or any other office or becomes a Member of Parliament and is in receipt of salary and allowances which are defrayed out of the Consolidated Fund of India or the Consolidated Fund of a State. 2[(1A) The spouse of a person who dies– (a) while holding the office of Vice-President, or (b) after ceasing to hold office as Vice-President either by the expiration of his term of office or by resignation of his office, shall be paid a family pension at the rate of fifty per cent. of pension as is admissible to a retiring Vice-President, for the remainder of her life.] (2) Subject to any rules that may be made in this behalf, every such person shall, for the remainder of his life, be entitled– 3[(a) to the use without payment of rent of such furnished residence (including its maintenance), as the Central Government may determine from time to time;] (b) to the use of similar telephone facilities at his residence, as a member of Parliament is entitled to under the provisions of the Salary, Allowances and Pension of Members of Parliament Act, 1954(30 of 1954); 4[(c) to secretarial staff consisting of a Private Secretary, an Additional Private Secretary, a Personal Assistant and two Peons and office expenses not exceeding [5][ninety thousand rupees] per annum;] 1. Subs. by Act 29 of 2008, s. 2, for “of twenty thousand rupees” (w.e.f. 1-1-2006). 2. Ins. by Act 23 of 2002, s. 2 (w.e.f. 5-7-2002). 3. Subs. by Act 45 of 1999, s. 2, for clause (a) (w.e.f. 30-12-1999). 4. Subs. by Act 29 of 2008, s. 2, for clause (c) (w.e.f. 30-12-2008). 5. Subs. by Act 13 of 2018, s. 204, for “sixty thousand rupees” (w.e.f. 1-4-2018). 2 ----- (d) to the same facilities for himself as respects medical attendance and treatment and on the same conditions as a retired President is entitled to under the provisions of the President’s Emoluments and Pension Act, 1951(30 of 1951); (e) to the same facilities for his spouse and minor children as respects medical attendance and treatment and on the same conditions as the spouse of a retired President is entitled to under the provisions of the President’s Emoluments and Pension Act, 1951(30 of 1951);and 1[(f) to travel anywhere in India, accompanied by spouse or a companion or a relative, by the highest class by air, rail or steamer;] 2[(3) Where any such person is re-elected to the office of Vice-President, he or his spouse shall not be eligible to any benefit under this section for the period during which such person again holds such office. (4) Where any person being a Vice-President gets elected to the office of the President of India, he or his spouse shall not be eligible to any benefit under this section.] **3. Medical facilities to the family of deceased Vice-President.–Subject to any rules that may be** made in this behalf, the spouse of a person who dies while holding the office of Vice-President shall, for the remainder of life, be entitled to medical attendance and treatment, free of charge. 3[3A. Free accommodation to spouse of Vice-President.–Subject to any rules that may be made in this behalf, the spouse of a person who dies– (a) while holding the office of Vice-President, or (b) after ceasing to hold office as Vice-President either by the expiration or his term of office or by resignation of his office, shall be entitled to the use of [4][furnished residence (including its maintenance)] without payment of licence fee, for the remainder of her life.] **4. Pension to be charged on the Consolidated Fund of India.–Any sum payable under this Act** shall be charged on the Consolidated Fund of India. **5. Power to make rules.–(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the purposes of this Act. (2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 5[6. Power to remove difficulties.–(1) If any difficulty arises in giving effect to the provisions of this this Act as amended by the Vice-President’s Pension (Amendment) Act, 2008 (29 of 2008), the Central Government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty: Provided that no such order shall be made after the expiration of two years from the date on which this Act comes into force. (2) Every order made under sub-section (1) shall be laid before each House of Parliament.] 1. Subs. by Act 45 of 1999, s. 2, for clause (f) (w.e.f. 30-12-1999). 2. Ins. by s. 2, ibid. (w.e.f. 30-12-1999). 3. Ins. by Act 23 of 2002, s. 3 (w.e.f.5-7-2002). 4. Subs. by Act 29 of 2008, s. 3, for “unfurnished residence” (w.e.f. 30-12-2008). 5. Ins. by s. 4, ibid.(w.e.f. 30-12-2008). 3 -----
18-Aug-1997
31
The Dock Workers (Regulation of Employment) (Inapplicability to Major Ports) Act, 1997
https://www.indiacode.nic.in/bitstream/123456789/1939/3/A1997-31.pdf
central
# THE DOCK WORKERS (REGULATION OF EMPLOYMENT) (INAPPLICABILITY TO MAJOR PORTS) ACT, 1997 _________ ARRANGEMENT OF SECTIONS __________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Inapplicability of the provisions of the Dock Workers (Regulation of Employment) Act, 1948 to major ports. 4. Transfer of assets and liabilities of the Dock Labour Board, etc., to the Board. 1 ----- # THE DOCK WORKERS (REGULATION OF EMPLOYMENT) (INAPPLICABILITY TO MAJOR PORTS) ACT, 1997 ACT NO. 31 OF 1997 [18th August, 1997.] # An Act to provide for inapplicability of the Dock Workers (Regulation of Employment) Act, 1948 to dock workers of major port trusts and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Forty-eighth Year of the Republic of India as follows:— **1.** **Short title and commencement.—(1) This Act may be called the Dock Workers (Regulation of** Employment) (Inapplicability to Major Ports) Act, 1997. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2.** **Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day”, in relation to a major port, means the date specified under section 3 for that major port; (b) “Board” has the same meaning as in the Major Port Trusts Act, 1963 (38 of 1963); (c) “Dock Labour Board” means a Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948); (d) “major port” has the same meaning as in the Indian Ports Act, 1908 (15 of 1908). **3. Inapplicability of the provisions of the Dock Workers (Regulation of Employment) Act, 1948** **to major ports.—The Central Government may, after settlement is arrived at between the Dock Labour** Board of any major port, its workmen and the management of that major port in accordance with the provisions of the Industrial Disputes Act, 1947 (14 of 1947), direct, by notification in the Official Gazette that the provisions of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948), shall cease to have effect in relation to that major port with effect from the date specified in that notification. **4. Transfer of assets and liabilities of the Dock Labour Board, etc., to the Board.—(1) On the** appointed day in relation to a major port,— (a) all property, assets and funds vested in the Dock Labour Board immediately before such day, shall vest in the Board; (b) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done, by, with or for the Dock Labour Board immediately before such day, for or in connection with the purposes of the Dock Labour Board, shall be deemed to have been incurred, entered into and engaged to be done by, with or for the Board; (c) all sums of money due to the Dock Labour Board immediately before such day shall be deemed to be due to the Board; (d) all suits and other legal proceedings instituted by or against the Dock Labour Board immediately before such day for any matter in relation to the Dock Labour Board may be continued by or against the Board. 1. 5th January, 1998, _vide notification No. S.O. 22(E), dated 5th January, 1998,_ _see Gazette of India, Extraordinary,_ Part II, sec. 3(ii). 2 ----- (e) every employee and worker serving under the Dock Labour Board shall hold office or service under the Board on the terms and conditions which are not in any way less favourable than those which would have been admissible to him if there had not been transfer of his services to the Board and shall continue to do so unless and until his employment in the Board is duly terminated or until his tenure, remuneration or terms and conditions of service are duly altered by the Board. (2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, the transfer of the services of any employee under this section to the Board shall not entitle such employee to any compensation under that Act or any other law, and no such claim shall be entertained by any court, tribunal or other authority. 3 -----
26-Jun-1998
13
The National Institute of Pharmaceutical Education and Research Act, 1998
https://www.indiacode.nic.in/bitstream/123456789/1983/4/A1998-13.pdf
central
# THE NATIONAL INSTITUTES OF PHARMACEUTICAL EDUCATION AND RESEARCH ACT, 1998 ____________ ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Declaration of certain institutions as institutions of national importance. 3. Definitions. CHAPTER II THE INSTITUTE 4. Establishment and incorporation of Institutes. 4A. Centres of Institute. 5. [Omitted.]. 6. Effect of incorporation of Institute. 7. Functions of Institutes. 8. Powers of Board of an Institute. 9. Institutes to be open to all races, creeds and classes. 10. Teaching at Institutes. 11. Visitor. 12. Authorities of Institutes. 13. Senate. 14. Functions of Senate. 15. Functions, powers and duties of Chairperson. 16. Director. 17. Dean. 18. Registrar. 19. Powers and duties of other authorities and officers. 20. Grants by Central Government. 21. Fund of Institutes. 22. Setting up of endowment fund. 23. Accounts and audit. 24. Pension and provident fund. 25. Appointments. 26. Statutes. 27. Statutes how made. 28. Ordinances. 29. Ordinances how made. 30. Tribunal of Arbitration. CHAPTER II-A THE COUNCIL 30A. Establishment of Council. 30B. Term of office of, vacancies among, and allowances payable to, members of Council. 30C. Functions of Council. 30D. Chairman of Council. 30E. Power to make rules in respect of matters in this Chapter. 1 ----- CHAPTER III MISCELLANEOUS SECTIONS 31. Acts and proceedings not to be invalidated by vacancies. 32. Grant of degrees, etc., by Institutes. 33. Sponsored schemes. 33A. Power of Central Government to issue directions. 34. Power to remove difficulties. 35. Transitional provisions. THE SCHEDULE 36. Statutes and Ordinances to be published in the Official Gazette and to be laid before Parliament. 37. Repeal and saving. 2 ----- # THE NATIONAL INSTITUTES OF PHARMACEUTICAL EDUCATION AND RESEARCH ACT, 1998 ACT NO. 13 OF 1998 [26th June, 1998.] 1[An Act to declare certain institutions of pharmaceutical education and research to be # institutions of national importance and for matters connected therewith or incidental thereto.] BE it enacted by Parliament in the Forty-ninth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the National** [2][Institutes] of Pharmaceutical Education and Research Act, 1998. (2) It shall come into force on such date[3] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. 4[2. Declaration of certain institutions as institutions of national importance.— (1) Whereas the objects of the institutions mentioned in the Schedule, are such as to make them institutions of national importance, it is hereby declared that each such Institute is an institution of national importance. (2) It is hereby declared that every Institute established under sub-section (2A) of section 4, on and after the commencement of the National Institute of Pharmaceutical Education and Research (Amendment) Act, 2021 (43 of 2021), shall be an institution of national importance.] **3. Definitions.—In this Act, unless the context otherwise requires,—** 5[(a) “appointed day”, in relation to an Institute mentioned in column (3) of the Schedule, means the date of its establishment as mentioned against it in column (4) of that Schedule;] (b) “Board” means the Board of Governors of [6][an Institute] constituted under sub-section (3) of section 4; (c) “Chairperson” means the Chairperson of [6][an Institute] nominated under clause (a) of sub-section (3) of section (4); 7[(ca) “Council” means the Council established under sub-section (1) of section 30A;] (d) “Dean” means the Dean of [6][an Institute] appointed under section 17; (e) “Director” means the Director of [6][an Institute] appointed under section 16; (f) “Fund” means the fund of [6][an Institute] to be maintained under section 21; 8[(g) “Institute” means any of the institutions mentioned in column (3) of the Schedule; (ga) “member” means a member of the Council nominated or elected under sub-section (2) of section 30A; (gb) “prescribed” means prescribed by rules made under this Act; (gc) “Schedule” means the Schedule to this Act;] (h) “Senate” means the Senate of [6][an Institute] referred to in section 13; 1. Subs. by Act 43 of 2021, s. 2 for Long title (w.e.f. 25-5-2022). 2. Subs. by s. 3, ibid., for “Institute” (w.e.f. 25-5-2022). 3. 8th July, 1998, vide notification No. S.O. 1412(E), dated 7th July, 1998, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 4. Subs. by Act 43 of 2021, s. 4, for section 2 (w.e.f. 25-5-2022). 5. Subs. by s. 5, ibid., for clause (a) (w.e.f. 25-5-2022). 6. Subs. by s. 5, ibid., for “the Institute” (w.e.f. 25-5-2022). 7. Ins. by s. 5, ibid. (w.e.f. 25-5-2022). 8. Subs. by s. 5, ibid., for clause (g) (w.e.f. 25-5-2022). 3 ----- (i) “Society” means the National Institute of Pharmaceutical Education and Research Society, Sector-67, S.A.S. Nagar (Mohali), District Ropar, Punjab registered under the Societies Registration Act, 1860 (21 of 1860); (j) “Statutes” and “Ordinances” mean the Statutes and the Ordinances of [1][an Institute] made under this Act. CHAPTER II THE INSTITUTE **2[4. Establishment and incorporation of Institutes.]—3[(1) Each of the Institutes mentioned in** column (3) of the Schedule shall be a body corporate.] (2) [4][Each Institute] shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and shall, by that name, sue and be sued. 5[(2A) The Central Government may, by notification in the Official Gazette, establish similar Institutes in different parts of the country.] 6[(3) The Board of Governors of an Institute shall consist of the following persons, namely:— (a) a Chairperson, who shall be an eminent academician or scientist or technologist or professional, to be nominated by the Visitor; (b) the Director of the institute, ex officio; (c) the Joint Secretary to the Government of India in Department of Pharmaceuticals dealing with the national institutes of pharmaceutical education and research, ex officio; (d) the Secretary, dealing with medical or technical education in the State Government concerned, _ex officio;_ (e) the representative of Drug Controller General of India, Ministry of Health and Family Welfare of the Government of India, ex officio; (f) three eminent pharmaceutical experts, at least one of whom shall be a woman, having special knowledge or practical experience in education, research and biotechnology, to be nominated by the Council; (g) two pharmaceutical industrialists to be nominated by the Council; (h) two professors of the institute, to be nominated by the Senate: Provided that one member from amongst members to be nominated under clauses (f), (g) and (h) shall be either from the Scheduled Castes or from the Scheduled Tribes.] (4) The term of office of the Chairperson and Governors other than ex officio Governors shall be three years and they shall be entitled for such allowances as may be determined by the Central Government. 7* - - - (5) The term of office of Governor nominated to fill a casual vacancy shall continue for the remainder of the term of the Governor in whose place he has been nominated. (6) The Board shall meet at least three times in a year at such place and time and observe such rules of procedure in regard to the transaction of business at its meetings as may be determined by the Board. 1. Subs. by Act 43 of 2021, s. 5, for “the Institute” (w.e.f. 25-5-2022). 2. Subs. by s. 6, ibid., for marginal heading (w.e.f. 25-5-2022). 3. Subs. by s. 6, ibid., for sub-section (1) (w.e.f. 25-5-2022). 4. Subs. by s. 6, ibid., for “The Institute” (w.e.f. 25-5-2022). 5. Ins. by Act 19 of 2007, s. 3 (w.e.f. 29-1-2007). 6. Subs. by Act 43 of 2021, s. 6, for sub-section (3) (w.e.f. 25-5-2022). 7. Proviso omitted by s. 6, ibid. (w.e.f. 25-5-2022). 4 ----- 1[4A. Centres of Institute.—An Institute, with the prior approval of the Central Government, may, by notification in the Official Gazette, establish one or more centres in different locations [2]***.] **5. [Vesting of properties.]—omitted by the National Institute of Pharmaceutical Education and** _Research (Amendment) Act, 2021 (43 of 2021), s. 8_ (w.e.f. 25-5-2022). **6. Effect of incorporation of Institute.—[3][On and from the appointed day, in relation to the National** Institute of Pharmaceutical Education and Research, Mohali],— (a) any reference to the Society in any contract or other instrument shall be deemed as a reference to [4][that Institute]; 5[(aa) all property, movable and immovable of, or belonging to, the Society, shall vest in that Institute;] (b) all the rights and liabilities of the Society shall be transferred to, and be the rights and liabilities of, [4][that Institute]; and (c) every person employed by the Society immediately before the appointed day shall hold office or service in [4][that Institute] by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been passed, and shall continue to be so unless and until his employment is terminated or until such tenure, remuneration and terms and condition are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by [4][that Institute] in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by [4][that Institute] of compensation equivalent to three months’ remuneration in the case of permanent employee and one month’s remuneration in the case of other employee. **7. Functions of [6][Institutes].—The functions of the Institute shall be—** (i) to nurture and promote quality and excellence in pharmaceutical education and research; 7[(ii) to develop courses leading to graduate and post graduate degrees, doctoral and post-doctoral distinctions and research in pharmaceutical education or to develop integrated courses relating thereto; (iia) to conduct executive education courses, short-term certificate courses, training programmes, online or distant education, diploma courses and such other short-term executive courses;] (iii) to hold examinations and grant degrees; (iv) to confer honorary awards or other distinctions; (v) to cooperate with educational or other institutions having objects wholly or partly similar to those of the Institute [8][by promoting collaborative research, exchange of faculty members, researchers] and scholars and generally in such manner as may be conducive to their common objective; (vi) to conduct courses for teachers, pharmaceutical technologists, community and hospital pharmacists and other professionals; 1. Ins. by Act 19 of 2007, s. 4 (w.e.f. 29-1-2007). 2. The words “within its jurisdiction” omitted by Act 43 of 2021, s. 7 (w.e.f. 25-5-2022). 3. Subs. by s. 9, ibid., for “On and from the appointed day” (w.e.f. 25-5-2022). 4. Subs. by s. 9, ibid., for “the Institute” (w.e.f. 25-5-2022). 5. Ins. by s. 9, ibid. (w.e.f. 25-5-2022). 6. Subs. by s. 10, ibid., for “Institute” (w.e.f. 25-5-2022). 7. Subs. by s. 10, ibid., for clause (ii) (w.e.f. 25-5-2022). 8. Subs. by s. 10, ibid., for “by exchange of faculty members” (w.e.f. 25-5-2022). 5 ----- (vii) to collect and maintain world literature on pharmaceutical and related sciences and technology so as to develop an information centre of its own kind for other institutions within the country and in the developing world; (viii) to create a central faculty of pharmaceutical instrumentation and analysis for use by the researchers within and outside the Institute; (ix) to have a centre to experiment and innovate and to train teachers and other workers in the art or science of pharmaceutical teaching; (x) to develop a world level centre for creation of new knowledge and transmission of existing information in pharmaceutical areas, with focus on national, educational, professional and industrial commitments; 1[(xa) to establish Centres of Excellence for drug discovery and development and medical devices;] (xi) to develop a multi-disciplinary approach in carrying out research and training of pharmaceutical manpower so that the larger interests of the profession, academia and pharmaceutical industry are better served and a pharmaceutical work culture is evolved which is in tune with the changing world trends and patterns of pharmaceutical education and research; (xii) to organise national or international symposia, seminars and conferences in selected areas of pharmaceutical education, from time to time; (xiii) to arrange courses catering to the special needs of the developing countries; (xiv) to act as a nucleus for interaction between academic and industry by encouraging exchange of scientist and other technical staff between the Institute and the industry and by undertaking sponsored and funded research as well as consultancy projects by the Institute; and (xv) to pay due attention to studies on the distribution and usage of drugs by the rural masses, taking into account the socio-economic spectrum in the country. **8. Powers of [2][Board of an Institute].—(1) Subject to the provisions of this Act, the** [2][Board of an Institute] shall be responsible for the general superintendence, direction and control of the affairs of the Institute and shall exercise all the powers not otherwise provided for by this Act, the Statutes and the Ordinances, and shall have the power to review the acts of the Senate. (2) Without prejudice to the provisions of sub-section (1), the [2][Board of an Institute] shall— (a) take decisions on questions of policy relating to the administration and working of the Institute; (b) fix, demand and receive fees and other charges; (c) supervise and control the residence and regulate the discipline of students of the Institute and to make arrangements for promoting their health, general welfare and cultural and corporate life; (d) institute academic and other posts and to make appointments thereto (except in the case of the Director); (e) frame Statutes and Ordinances and to alter, modify or rescind the same; (f) institute and award fellowship, scholarship, prizes and medals; (g) consider and pass resolutions on the annual report, the annual accounts and the budget estimates of the Institute for the next financial year as it thinks fit together with a statement of its development plans; and (h) do all such things as may be necessary, incidental or conducive to the attainment of all or any of the aforesaid powers. 1. Ins. by Act 43 of 2021, s. 10 (w.e.f. 25-5-2022). 2. Subs. by s. 11, ibid., for “Board” (w.e.f. 25-5-2022). 6 ----- (3) The [1][Board of an Institute] shall have the power to appoint such committees as it considers necessary for the exercise of its powers and the performance of its duties under this Act. (4) Notwithstanding anything contained in sub-section (2) of section 4, the [1][Board of an Institute] shall not dispose of in any manner any immovable property without the prior approval of the Central Government. **9.** **[2][Institutes] to be open to all races, creeds and classes.—(1)** [3][Every Institute] shall be open to persons of either sex and of whatever race, creed, caste or class, and no test or condition shall be imposed as to religious belief or profession in admitting or appointing members, students, teachers or workers or in any other connection whatsoever. (2) No bequest, donation or transfer of any property shall be accepted by [4][any Institute] which in the opinion of the Board involves conditions or obligations opposed to the spirit and object of this section. **10. Teaching at** **[5][Institutes].—All teaching at** [6][each of the Institutes] shall be conducted by or in the name of the Institute in accordance with the Statutes and the Ordinances made in this behalf. **11. Visitor.—(1) The President of India shall be the Visitor of [7][every Institute].** (2) The Visitor may appoint one or more persons to review the work and progress of [8][any Institute] and to hold inquiries into the affairs thereof and to report thereon in such manner as the Visitor may direct. (3) Upon receipt of any such report, the Visitor may take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the Institute shall be bound to comply with such directions. **12. Authorities of** **[9][Institutes].—The following shall be the other authorities of** [10][an Institute], namely:— (a) a Senate; (b) such other authorities as may be declared by the Statutes to be the authorities of the Institute. **13. Senate.—The Senate of [11][each Institute] shall consist of the following persons, namely:—** (a) the Director, ex officio, who shall be the Chairperson of the Senate; (b) the Dean, ex officio; (c) five professors of the Institute, to be nominated by the Chairperson in consultation with the Director, by rotation; (d) three persons, not being employees of the Institute, to be nominated by the Chairperson in consultation with the Director, from among educationists of repute, one each from the fields of science, engineering and humanities and one of them shall be either from the Scheduled Castes or from the Scheduled Tribes; and (e) such other members of the staff as may be laid down in the Statutes. **14. Functions of Senate.—Subject to the provisions of this Act, the Statutes and the Ordinances, the** 12[senate of each Institute] shall have the control and general regulation, and be responsible for the 1. Subs. by Act 43 of 2021, s. 11, for “Board” (w.e.f. 25-5-2022). 2. Subs. by s. 12, ibid., for “Institute” (w.e.f. 25-5-2022). 3. Subs. by s. 12, ibid., for “The Institute” (w.e.f. 25-5-2022). 4. Subs. by s. 12, ibid., for “the Institute” (w.e.f. 25-5-2022). 5. Subs. by s. 13, ibid., for “Institute” (w.e.f. 25-5-2022). 6. Subs. by s. 13, ibid., for “the Institute” (w.e.f. 25-5-2022). 7. Subs. by s. 14, ibid., for “the Institute” (w.e.f. 25-5-2022). 8. Subs. by s. 14, ibid., for “the Institute” (w.e.f. 25-5-2022). 9. Subs. by s. 15, ibid., for “Institute” (w.e.f. 25-5-2022). 10. Subs. by s. 15, ibid., for “the Institute” (w.e.f. 25-5-2022). 11. Subs. by s. 16, ibid., for “the Institute” (w.e.f. 25-5-2022). 12. Subs. by s. 17, ibid., for “senate of the Institute” (w.e.f. 25-5-2022). 7 ----- maintenance of standards of instruction, education and examination in the Institute and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it by the Statutes. **15. Functions, powers and duties of Chairperson.—(1) The Chairperson shall ordinarily preside at** the meetings of the Board and at the Convocations of the Institute. (2) It shall be the duty of the Chairperson to ensure that the decisions taken by the Board are implemented. (3) The Chairperson shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes. **16. Director.—(1) The [1][Director of each Institute shall be appointed by the Council] with the prior** approval of the Visitor. (2) The Director shall be the principal academic and executive officer of the Institute and shall be responsible for the proper administration and academic performance of the Institute and for imparting of instruction and maintenance of discipline therein. (3) The Director shall submit annual reports and accounts to the Board. (4) The Director shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or the Ordinances. **17. Dean.—(1) The Dean of [2][each Institute] shall be appointed on such terms and conditions as may** be laid down by the Statutes and shall exercise such powers and perform such duties as may be assigned to him by this Act or the Statutes or the Director. (2) The Dean shall report to the Director. **18. Registrar.—(1) The [3][Registrar of each Institute] shall be appointed on such terms and conditions** as may be laid down by the Statutes and shall be the custodian of records, the common seal, the funds of the Institute and such other property of the Institute as the Board shall commit to his charge. (2) The Registrar shall act as the Secretary of the Board, the Senate and such committees as may be prescribed by the Statutes. (3) The Registrar shall be responsible to the Director for the proper discharge of his functions. (4) The Registrar shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or the Director. **19. Powers and duties of other authorities and officers.—The powers and duties of authorities and** officers, other than those hereinbefore mentioned, shall be determined by the Statutes. **20. Grants by Central Government.—For the purpose of** [4][enabling the Institutes] to discharge its functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, [5][pay to each Institute] in each financial year such sums of money and in such manner as it may think fit. **21. Fund of [6][Institutes].—(1) [7][Every Institute shall] maintain a Fund to which shall be credited—** (a) all moneys provided by the Central Government; (b) all fees and other charges; (c) all moneys received by the Institute by way of grants, gifts, donations, benefactions, bequests or transfers; and 1. Subs. by Act 43 of 2021, s. 18, for “Director of the Institute shall be appointed by the Board” (w.e.f. 25-5-2022). 2. Subs. by s. 19, ibid., for “the Institute” (w.e.f. 25-5-2022). 3. Subs. by s. 20, ibid., for “Registrar of the Institute” (w.e.f. 25-5-2022). 4. Subs. by s. 21, ibid., for “enabling the Institute” (w.e.f. 25-5-2022). 5. Subs. by s. 21, ibid., for “pay to the Institute” (w.e.f. 25-5-2022). 6. Subs. by s. 22, ibid., for “Institute” (w.e.f. 25-5-2022). 7. Subs. by s. 22, ibid., for “The Institute shall” (w.e.f. 25-5-2022). 8 ----- (d) all moneys received by the Institute in any other manner or from any other source. (2) All moneys credited to the Fund shall be deposited in such banks or invested in such manner as the Institute may, with the approval of the Central Government, decide. (3) The Fund shall be applied towards meeting the expenses of the Institute including expenses incurred in the exercise of its powers and discharge of its duties under this Act. **22. Setting up of endowment fund.—Notwithstanding anything contained in section 21, the Central** Government may direct [1][every Institute] to— (a) set up an endowment fund and any other fund for specified purpose; (b) transfer money from its Fund to endowment fund or any other fund. **23. Accounts and audit.—(1)** [2][Every Institute] shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the balance-sheet, in such form as may be specified, in accordance with such general directions as may be issued by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of [3][every Institute] shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the [4][accounts of any Institute] shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Institute. (4) The accounts of [3][every Institute] as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **24. Pension and provident fund.—(1)** [5][Every Institute] shall constitute, for the benefit of its employees, including the Director, in such manner and subject to such conditions as may be prescribed by the Statutes, such pension, insurance and provident funds as it may deem fit. (2) Where any such provident fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925) shall apply to such fund as if it were a Government provident fund. **25. Appointments.—All appointments of the staff of [6][an Institute], except that of the Director, shall** be made in accordance with the procedure laid down in the Statutes— (a) by the Board, if the appointment is made on the academic staff in the post of Assistant Professor or above or if the appointment is made on the non-academic staff in any cadre, the maximum of the pay-scale for which is the same or higher than that of Assistant Professor; and (b) by the Director, in any other case. **26. Statutes.—Subject to the provisions of this Act, the Statutes may provide for all or any of the** following matters, namely:— (a) the formation of departments of teaching; 1. Subs. by Act 43 of 2021, s. 23, for “the Institute” (w.e.f. 25-5-2022). 2. Subs. by s. 24, ibid., for “The Institute” (w.e.f. 25-5-2022). 3. Subs. by s. 24, ibid., for “the Institute” (w.e.f. 25-5-2022). 4. Subs. by s. 24, ibid., for “accounts of the Institute” (w.e.f. 25-5-2022). 5. Subs. by s. 25, ibid., for “The Institute” (w.e.f. 25-5-2022). 6. Subs. by s. 26, ibid., for “the Institute” (w.e.f. 25-5-2022). 9 ----- (b) the institution of fellowships, scholarships, exhibitions, medals and prizes; (c) the classification, the method of appointment and the determination of the terms and conditions of service of officers, teachers and other staff of the Institute; (d) the reservation of posts for the Scheduled Castes, the Scheduled Tribes and other categories of persons as may be determined by the Central Government, from time to time; (e) the constitution of pension, insurance and provident funds for the benefit of the officers, teachers and other staff of the Institute; (f) the constitution, powers and duties of the authorities of the Institute; (g) the establishment and maintenance of halls and hostels; (h) the manner of filling vacancies among members of the Board; (i) the authentication of the orders and decisions of the Board; (j) the meetings of the Senate, the quorum at such meetings and the procedure to be followed in the conduct of their business; and (k) any other matter which by this Act is to be, or may be, prescribed by the Statutes. **27. Statutes how made.—(1) The first Statutes of** [1][every Institute] shall be framed by the Board with the previous approval of the Visitor and a copy of the same shall be laid as soon as may be before each House of Parliament. (2) The Board may, from time to time, make new or additional Statutes or may amend or repeal the Statutes in the manner hereafter in this section provided. (3) A new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the previous approval of the Visitor who may assent thereto or withhold assent or remit it to the Board for consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. **28. Ordinances.—Subject to the provisions of this Act and the Statutes, the** [2][Ordinances of each Institute] may provide for all or any of the following matters, namely:— (a) the admission of the students to the Institute; (b) the reservation for the Scheduled Castes, the Scheduled Tribes and other categories of person; (c) the courses of study to be laid down for all degrees of the Institute; (d) the conditions under which students shall be admitted to the degree courses and to the examinations of the Institute and shall be eligible for degrees; (e) the conditions of award of the fellowships, scholarships, exhibitions, medals and prizes; (f) the conditions and mode of appointment and duties of examining bodies, examiners and moderators; (g) the conduct of examinations; (h) the maintenance of discipline among the students of the Institute; (i) the fees to be charged for courses of study in the Institute and for admission to the examinations of degrees of the Institute; (j) the conditions of residence of students of the Institute and the levying of the fees for residence in the halls and hostels and of other charges; and 1. Subs. by Act 43 of 2021, s. 27, for “the Institute” (w.e.f. 25-5-2022). 2. Subs. by s. 28, ibid., for “Ordinances of the Institute” (w.e.f. 25-5-2022). 10 ----- (k) any other matter which by this Act or the Statutes is to be, or may be, provided for by the Ordinances. **29. Ordinances how made.—(1) Save as otherwise provided in this section, Ordinances shall be** made by the Senate. (2) All Ordinances made by the Senate shall have effect from such date as it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the Board and shall be considered by the Board at its next succeeding meeting. (3) The Board shall have power by resolution to modify or cancel any such Ordinances and such Ordinances shall from the date of such resolution stand modified accordingly or cancelled, as the case may be. **30. Tribunal of Arbitration.—(1) Any dispute arising out of a contract between the Institute and any** of its employees shall, at the request of the employee concerned or at the instance of the Institute, be referred to a Tribunal of Arbitration consisting of one member appointed by the Institute, one member nominated by the employee, and an umpire appointed by the Visitor. (2) The decision of the Tribunal of Arbitration shall be final and shall not be questioned in any court. (3) No suit or proceeding shall lie in any court in respect of any matter which is required by sub-section (1) to be referred to the Tribunal of Arbitration. (4) The Tribunal of Arbitration shall have power to regulate its own procedure. (5) Nothing in any law for the time being in force relating to arbitration shall apply to arbitrations under this section. 1[CHAPTER II-A # THE COUNCIL **30A. Establishment of Council.— (1) With effect from such date as the Central Government may,** by notification in the Official Gazette, specify in this behalf, there shall be established for all the Institutes specified in column (3) of the Schedule, a central body to be called the Council. (2) The Council shall consist of the following members, namely:–– (a) Minister in charge of the Ministry or Department of the Central Government having administrative control of the Pharmaceuticals, ex officio, as Chairperson; (b) Minister of State in the Ministry or Department of the Central Government having administrative control of the Pharmaceuticals, ex officio, as Vice-Chairperson; (c) the Secretary to the Government of India in charge of the Ministry or Department of the Central Government having administrative control of the Pharmaceuticals, ex officio; (d) the Chairperson of every Board of Governors, ex officio; (e) the Director of every Institute, ex officio; (f) the Chairperson, All India Council for Technical Education, ex officio; (g) the Director General, Council of Scientific and Industrial Research, ex officio; (h) four Secretaries to the Government of India, to represent the Ministries or Departments of the Central Government dealing with Biotechnology, Health Research, Higher Education and Science and Technology, ex officio; (i) not less than three, but not more than five persons to be nominated by the Visitor, at least one of whom shall be a woman, having special knowledge or practical experience in education, pharmaceutical industry, medical devices industry or pharmaceutical research; 1. Ins. by Act 43 of 2021, s. 29, (w.e.f. 25-5-2022). 11 ----- (j) three members of Parliament of whom two shall be elected by the House of the People and one by the Council of States, from amongst its members; (k) the President, Indian Drugs Manufacturing Association, ex officio; (l) the President, Organisation of Pharmaceutical Producers of India, ex officio; (m) the President, Pharmacy Council of India, ex officio; (n) the Financial Advisor of the Ministry or Department of the Central Government dealing with Pharmaceuticals, ex officio; (o) the Joint Secretary to the Government of India in the Ministry or Department of the Central Government having administrative control of the Pharmaceuticals, ex officio, as Member-Secretary. (3) It is hereby declared that the office of a member of the Council shall not disqualify its holder for being chosen as, or for being, a member of either House of Parliament. **30B. Term of office of, vacancies among, and allowances payable to, members of Council. —(1)** Save as otherwise provided in this section, the term of office of a member of the Council shall be three years from the date of his nomination or election, as the case may be. (2) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member. (3) The term of office of a member elected under clause (j) of sub-section (2) of section 30A shall come to an end as soon as he becomes a Minister or Minister of State or Deputy Minister, or the Speaker or the Deputy Speaker of the House of the People, or the Deputy Chairperson of the Council of States or ceases to be a member of the House which elected him. (4) The term of office of a member nominated or elected to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he has been nominated or elected. (5) Notwithstanding anything contained in this section an outgoing member shall, unless the Central Government otherwise directs, continue in office until another person is nominated or elected as a member in his place. (6) The members of the Council shall be paid such travelling and other allowances by the Central Government as may be determined by that Government, but no member shall be entitled to any salary by reason of this sub-section. **30C. Functions of Council.—(1) It shall be the general duty of the Council to coordinate the** activities of all the Institutes and to take all such steps as to ensure planned and coordinated development of pharmaceutical education and research and maintenance of standards thereof. (2) Without prejudice to the provisions of sub-section (1), the Council shall perform the following functions, namely:— (a) to advise on matters relating to the duration of the courses, the degrees and other academic distinctions to be conferred by the Institutes, admission standards and other academic matters; (b) to lay down policy regarding cadres, methods of recruitment and conditions of service of employees, institution of scholarships and free-ships, levying of fees and other matters of common interest; (c) to examine the development plans of each Institute and to approve such of them as are considered necessary and also to indicate broadly the financial implications of such approved plans; (d) to lay down policy or guidelines for promoting research and development in pharmaceuticals and related areas, fostering collaboration and overseeing developments and on matters incidental thereto; (e) to examine the annual budget estimates of each Institute and to recommend to the Central Government the allocation of funds for that purpose; 12 ----- (f) to advise the Visitor, if so required, in respect of any function to be performed by him under this Act; and (g) to perform such other functions as are assigned to it by or under this Act. (3) The Council shall meet at least once every six months and follow such procedure in its meetings as may be prescribed. **30D. Chairman of Council.—(1) The Chairperson of the Council shall ordinarily preside at the** meetings of the Council: Provided that in the absence of the Chairperson, the Vice-Chairperson shall preside at the meetings of the Council: Provided further that in the absence of both the Chairperson and the Vice-Chairperson, any other member, chosen from amongst themselves by the members present at the meeting shall preside at that meeting. (2) It shall be the duty of the Chairperson of the Council to ensure that the decisions taken by the Council are implemented. (3) The Chairman shall exercise such other powers and perform such other duties as are assigned to him by this Act. **30E. Power to make rules in respect of matters in this Chapter. —(1) The Central Government** may, by notification in the Official Gazette, make rules to carry out the provisions of this Chapter. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner of filling vacancies among the members of the Council; (b) the disqualifications for being chosen as, and for being, a member of the Council; (c) the circumstances in which, and the authority by which, members may be removed; (d) the meetings of the Council and the procedure of conducting business thereat; (e) the travelling and other allowances payable to members of the Council; and (f) the functions of the Council and the manner in which such functions may be exercised. (3) Every rule made by the Central Government under this Chapter shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.] CHAPTER III MISCELLANEOUS **31. Acts and proceedings not to be invalidated by vacancies.—[1][No act of the Council or any** Institute] or Board or Senate or any other body set up under this Act or the Statutes, shall be invalid merely by reason of— (a) any vacancy in, or defect in, the constitution thereof, or (b) any defect in the election, nomination or appointment of person acting as a member thereof, or (c) any irregularity in its procedure not affecting the merits of the case. 1. Subs. by Act 43 of 2021, s. 30, for “No act of the Institute” (w.e.f. 25-5-2022). 13 ----- **32. Grant of degrees, etc., by** **[1][Institutes].—Notwithstanding anything contained in the University** Grants Commission Act, 1956 (3 of 1956) or in any other law for the time being in force, [2][every Institute] shall have power to grant degrees and other academic distinctions and titles under this Act. **33. Sponsored schemes.—[3][Whenever an Institute] receives funds from any Government, the** University Grants Commission or any other agency sponsoring a scheme to be executed by the Institute, notwithstanding anything in this Act,— (a) the amount received shall be kept by the Institute separately from the Fund of the Institute and utilised only for the purpose of the scheme; (b) the staff required to execute the same shall be recruited in accordance with the terms and conditions stipulated by the sponsoring organisation: Provided that any money remaining unutilised under clause (a) shall be transferred to the endowment fund created under section 22 of this Act. **4[33A. Power of Central Government to issue directions.— The Institute shall carry out such** directions as may be issued to it from time to time by the Central Government for the efficient administration of this Act.] **34. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions or give such directions not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of two years from the appointed day. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **35. Transitional provisions.—Notwithstanding anything contained in this Act,—** (a) the Board of Governors of the Society functioning as such immediately before the commencement of this Act shall continue to so function until a new Board is constituted for the Institute under this Act, but on the constitution of a new Board under this Act, the members of the Board holding office before such constitution shall cease to hold office; 5[(b) Until the first statutes and the Ordinances in relation to the institutes mentioned in column (3) of the Schedule are made under this Act, the Statues and the Ordinances of the National Institute of Pharmaceutical Education and Research, Sector-67, S.A.S. Nagar (Mohali), District Ropar, Punjab as in force, shall apply to those Institutes with the necessary modifications and adaptations in so far as they are not inconsistent with the provisions of this Act.] THE SCHEDULE [See sections 2(1), 3(a), (g), (gc), 4(1), 30A(1) and 35(b)] Sl. No Location of Institute and the State Name of institutions incorporated under this Act Date of establishment of Institute (1) (2) (3) (4) 1. Mohali, Punjab The National Institute of Pharmaceutical Education and 1. Subs. by Act 43 of 2021, s. 31, for “Institute” (w.e.f. 25-5-2022). 2. Subs. by s. 31, ibid., for “the Institute” (w.e.f. 25-5-2022). 3. Subs. by s. 32, ibid., for “Whenever the Institute” (w.e.f. 25-5-2022). 4. Ins. by s. 33, ibid., (w.e.f. 25-5-2022). 5. Subs. by s. 34, ibid., for clause (b) (w.e.f. 25-5-2022). 14 8th July, 1998 ----- Research Society, Mohali 2. Ahmedabad, Gujarat The National Institute of Pharmaceutical Education and Research, Ahmedabad 3. Hajipur, Bihar The National Institute of Pharmaceutical Education and Research, Hajipur 4. Hyderabad, Telengana 5. Kolkata, West Bengal The National Institute of Pharmaceutical Education and Research, Hyderabad The National Institute of Pharmaceutical Education and Research, Kolkata 6. Guwahati, Assam The National Institute of Pharmaceutical Education and Research, Guwahati 7. Raebareli, Uttar Pradesh The National Institute of Pharmaceutical Education and Research, Raebareli 6th September, 2007 6th September, 2007 6th September, 2007 6th September, 2007 5th August, 2008 26th September, 2008 **36. Statutes and Ordinances to be published in the Official Gazette and to be laid before** **Parliament.—(1) Every Statute or Ordinance made under this Act shall be published in the Official** Gazette. (2) Every Statute or Ordinance made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute or Ordinance or both Houses agree that the Statute or Ordinance should not be made, the Statute or Ordinance shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute or Ordinance. (3) The power to make the Statutes or the Ordinances shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act to the Statutes or the Ordinances or any of them but no retrospective effect shall be given to any Statute or Ordinance so as to prejudicially affect the interests of any person to whom such Statute or Ordinance may be applicable. **37. Repeal and saving.—(1) The National Institute of Pharmaceutical Education and Research** Ordinance, 1998 (Ord. 9 of 1998) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under this Act. 15 -----
7-Jul-1998
17
The Lotteries (Regulation) Act, 1998
https://www.indiacode.nic.in/bitstream/123456789/1994/1/A1998-17.pdf
central
# THE LOTTERIES (REGULATION) ACT, 1998 _______ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Prohibition of lotteries. 4. Conditions subject to which lotteries may be organised, etc. 5. Prohibition of sale of ticket in a State. 6. Prohibition of organisation, etc., of lottery. 7. Penalty. 8. Offences to be cognizable and non-bailable. 9. Offences by companies. 10. Power to give directions. 11. Power of Central Government to make rules. 12. Power of State Government to make rules. 13. Repeal and saving. 1 ----- # THE LOTTERIES (REGULATION) ACT, 1998 ACT NO. 17 OF 1998 [7th July, 1998.] # An Act to regulate the lotteries and to provide for matters connected therewith and incidental thereto. BE it enacted by Parliament in the Forty-ninth Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the Lotteries (Regulation)** Act, 1998. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 2nd day of October, 1997. **2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—** (a) “bumper draw of a lottery” means a special draw of lottery conducted on or during any festival or other special occasion wherein the prize money offered is greater than the prize money offered in the case of other ordinary draw of lotteries; (b) “lottery” means a scheme, in whatever form and by whatever name called, for distribution of prizes by lot or chance to those persons participating in the chances of a prize by purchasing tickets; (c) “prescribed” means prescribed by rules made under this Act. **3. Prohibition of lotteries.—Save as otherwise provided in section 4, no State Government shall** organise, conduct or promote any lottery. **4. Conditions subject to which lotteries may be organised, etc.—A State Government may** organise, conduct or promote a lottery, subject to the following conditions, namely:— (a) prizes shall not be offered on any pre-announced number or on the basis of a single digit; (b) the State Government shall print the lottery tickets bearing the imprint and logo of the State in such manner that the authenticity of the lottery ticket is ensured; (c) the State Government shall sell the tickets either itself or through distributors or selling agents; (d) the proceeds of the sale of lottery tickets shall be credited into the public account of the State; (e) the State Government itself shall conduct the draws of all the lotteries; (f) the prize money unclaimed within such time as may be prescribed by the State Government or not otherwise distributed, shall become the property of that Government; (g) the place of draw shall be located within the State concerned; (h) no lottery shall have more than one draw in a week; (i) the draws of all kinds of lotteries shall be conducted between such period of the day as may be prescribed by the State Government; (j) the number of bumper draws of a lottery shall not be more than six in a calendar year; (k) such other conditions as may be prescribed by the Central Government. **5. Prohibition of sale of ticket in a State.—A State Government may, within the State, prohibit the** sale of tickets of a lottery organised, conducted or promoted by every other State. **6. Prohibition of organisation, etc., of lottery.—The Central Government may, by order published** in the Official Gazette, prohibit a lottery organised, conducted or promoted in contravention of the provisions of section 4 or where tickets of such lottery are sold in contravention of the provisions of section 5. 2 ----- **7. Penalty.—(1) Where a lottery is organised, conducted or promoted after the date on which this Act** receives the assent of the President, in contravention of the provisions of this Act, by any Department of the State Government, the Head of the Department shall be punishable with rigorous imprisonment for a term which may extend to two years or with fine or with both: Provided that nothing contained in this section shall render such Head of the Department liable to any punishment if he proves that the contravention was committed without his knowledge or that he exercised all due diligence to prevent the commission of such contravention. (2) Notwithstanding anything contained in sub-section (1), where a contravention under this Act has been committed by a Department of Government and it is proved that the contravention has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any officer, other than the Head of the Department, such officer shall also be deemed to be guilty of that contravention and shall be liable to be proceeded against and punished accordingly. (3) If any person acts as an agent or promoter or trader in any lottery organised, conducted or promoted in contravention of the provisions of this Act or sells, distributes or purchases the ticket of such lottery, he shall be punishable with rigorous imprisonment for a term which may extend to two years or with fine or with both. **8. Offences to be cognizable and non-bailable.—The offence under this Act shall be cognizable and** non-bailable. **9. Offences by companies.—(1) Where an offence under this Act has been committed by a company,** every person who at the time the offence was committed was incharge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **10. Power to give directions.—The Central Government may give directions to the State** Government as to carrying into execution in the State of any of the provisions of this Act or of any rule or order made thereunder. **11. Power of Central Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules to carry out the provisions of this Act. (2) Every rule made by the Central Government shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 3 ----- **12. Power of State Government to make rules.—(1) The State Government may, by notification in** the Official Gazette, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) time to be fixed for claiming prize money under clause (f) of section 4; (b) period to be fixed for draws of all lotteries under clause (i) of section 4; and (c) any other matter which is required to be, or may be, prescribed. (3) Every rule made by the State Government under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **13. Repeal and saving.—(1) The Lotteries (Regulation) Ordinance, 1998 (Ord. 6 of 1998), is hereby** repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. 4 -----
7-Jan-1999
05
The Leaders and Chief Whips of Recognised Parties and Groups in Parliament (Facilities) Act, 1998
https://www.indiacode.nic.in/bitstream/123456789/1995/1/A1999-05.pdf
central
# THE LEADERS AND CHIEF WHIPS OF RECOGNISED PARTIES AND GROUPS IN PARLIAMENT (FACILITIES) ACT, 1998 ______ ARRANGEMENT OF SECTIONS ________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Facilities to the Leaders and Chief Whips of recognised groups and parties. 4. Power to make rules. 5. Amendment of section 3 of Act 10 of 1959. 1 ----- # THE LEADERS AND CHIEF WHIPS OF RECOGNISED PARTIES AND GROUPS IN PARLIAMENT (FACILITIES) ACT, 1998 ACT NO. 5 OF 1999 [7th January, 1999.] # An Act to provide for facilities to Leaders and Chief Whips of recognised parties and groups in Parliament. BE it enacted by Parliament in the Forty-ninth Year of the Republic of India as follows:— **1.** **Short title and commencement.—(1) This Act may be called the Leaders and Chief Whips of** Recognised Parties and Groups in Parliament (Facilities) Act, 1998. 1[(2) It shall be deemed to have come into force on the 5th day of February, 1999.] 2[2. Definitions.—In this Act, unless the context otherwise requires,— (a)„„recognised group” means,— (i)in relation to the Council of States, every party which has a strength of not less than fifteen members and not more than twenty-four members in the Council; (ii)in relation to the House of the People, every party which has a strength of not less than thirty members and not more than fifty-four members in the House; _(b) “recognised party” means,—_ (i)in relation to the Council of States, every party which has a strength of not less than twenty-five members in the Council; (ii)in relation to the House of the People, every party which has a strength of not less than fifty-five members in the House.] 3[3. Facilities to the Leaders and Chief Whips of recognised groups and parties.—Subject to any rules made in this behalf by the Central Government, each leader, deputy leader and each Chief Whip of a recognised group and a recognised party shall be entitled to telephone and secretarial facilities: Provided that such facilities shall not be provided to such leader, deputy leader or Chief Whip, as the case may be, who— (i)holds an office of Minister as defined in section 2 of the Salaries and Allowances of Ministers Act, 1952 (58 of 1952); or (ii)holds an office of the Leader of the Opposition as defined in section 2of the Salary and Allowances of Leaders of Opposition in Parliament Act, 1977 (33 of 1977); or (iii)is entitled to similar telephone and secretarial facilities by virtue of holding any office of, or representation in, a Parliamentary Committee or other Committee, Council, Board, Commission or other body set up by the Government; or (iv)is entitled to similar telephone and secretarial facilities provided to him in any other capacity by the Government or a local authority or Corporation owned or controlled by the Government or any local authority.] **4. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. 1. Subs. by Act 18 of2000, s.2, for sub-section (2) (w.e.f. 5-2-1999). 2. Subs. by s.3,ibid., for section 2 (w.e.f. 7-6-2000). 3. Subs. by s.4, ibid., for section 3 (w.e.f. 7-6-2000). 2 ----- (2) Every rule made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **5. Amendment of section 3 of Act 10 of 1959.—In the Parliament (Prevention of Disqualification)** Act, 1959, in section 3,— (i) after clause (ab),the following clause shall be inserted, namely:— “(ac) the office of[1][each leader and each deputy leader] of a recognised party and a recognised group in either House of Parliament;”; (ii) after Explanation 2, the following Explanation shall be inserted, namely:— _Explanation_ 3.—In clause (ac),the expressions “recognised party” and “recognised group” shall have the meanings assigned to them in Leaders and Chief Whips of Recognised Parties and Groups in Parliament (Facilities)Act, 1998.‟. 1. Subs. by Act 18 of 2000, s. 5, for “each leader” (w.e.f. 5-2-1999). 3 -----
18-Mar-1999
15
The Urban Land (Ceiling and Regulation) Repeal Act, 1999
https://www.indiacode.nic.in/bitstream/123456789/18941/1/a1999-15.pdf
central
# THE URBAN LAND (CEILING AND REGULATION) REPEAL ACT, 1999 __________ ARRANGEMENT OF SECTIONS __________ SECTIONS 1. Short title, application and commencement. 2. Repeal of Act 33 of 1976. 3. Abatement of legal proceedings 4. Abatement of legal proceedings 5. Repeal and saving. 1 ----- # THE URBAN LAND (CEILING AND REGULATION) REPEAL ACT, 1999 ACT NO. 15 OF 1999 [18th March, 1999.] # An Act to repeal the Urban Land (Ceiling and Regulation) Act, 1976. BE it enacted by Parliament in the Fiftieth Year of the Republic of India as follows: — **1.** **Short title, application and commencement. —(1) This Act may be called the Urban Land** (Ceiling and Regulation) Repeal Act, 1999. (2) It applies in the first instance to the whole of the States of Haryana and Punjab and to all the Union territories; and it shall apply to such other State which adopts this Act by resolution passed in [that behalf under clause (2) of article 252 of the Constitution.](javascript:fnOpenLinkPopUp('784','17238');) (3) It shall be deemed to have come into force in the States of Haryana and Punjab and in all the Union territories on the 11th day of January, 1999 and in any other State which adopts this Act under [clause (2) of article 252 of the Constitution on the date of such adoption; and the reference to repeal of](javascript:fnOpenLinkPopUp('784','17238');) the Urban Land (Ceiling and Regulation) Act, 1976 shall, in relation to any State or Union territory, mean the date on which this Act comes into force in such State or Union territory. **2. Repeal of Act 33 of 1976.—The Urban Land (Ceiling and Regulation) Act, 1976 (hereinafter** referred to as the principal Act) is hereby repealed. **3. Savings. —(1) The repeal of the principal Act shall not affect—** (a) the vesting of any vacant land under sub-section (3) of section 10, possession of which has been taken over by the State Government or any person duly authorised by the State Government in this behalf or by the competent authority; (b) the validity of any order granting exemption under sub-section (1) of section 20 or any action taken thereunder, notwithstanding any judgment of any court to the contrary; (c) any payment made to the State Government as a condition for granting exemption under sub-section (1) of section 20. (2) Where— (a) any land is deemed to have vested in the State Government under sub-section (3) of section 10 of the principal Act but possession of which has not been taken over by the State Government or any person duly authorised by the State Government in this behalf or by the competent authority; and (b) any amount has been paid by the State Government with respect to such land, then, such land shall not be restored unless the amount paid, if any, has been refunded to the State Government. **4. Abatement of legal proceedings. —All proceedings relating to any order made or purported to** be made under the principal Act pending immediately before the commencement of this Act, before any court, tribunal or other authority shall abate: Provided that this section shall not apply to the proceedings relating to section 11, 12, 13 ad 14 of the principal Act in so far as such proceedings are relatable to the land, possession of which has been taken over by the State Government or any person duly authorised by the State Government in this behalf or by the competent authority. 2 ----- **5. Repeal and saving. — (1) The Urban Land (Ceiling and Regulation) Repeal Ordinance, 1999** (Ord. 5 of 1999) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 3 -----
29-Dec-1999
40
The Central Industrial Security Force (Amendment and Validation) Act, 1999.
https://www.indiacode.nic.in/bitstream/123456789/19240/1/a1999-40.pdf
central
# THE CENTRAL INDUSTRIAL SECURITY FORCE (AMENDMENT AND VALIDATION) ACT, 1999 __________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title. 2. Amendment of long title. 3. Amendment of section 2. 4. Amendment of section 3. 5. Amendment of section 8. 6. Amendment of section 9. 7. Amendment of section 10. 8. Insertion of new section 14A. 9. Amendment of section 22. 10. Validation of the disposal of certain revision petitions. 1 ----- # THE CENTRAL INDUSTRIAL SECURITY FORCE (AMENDMENT AND VALIDATION) ACT, 1999 ACT NO. 40 OF 1999 [29th December, 1999.] # An Act further to amend the Central Industrial Security Force Act, 1968, and to validate certain revision petitions disposed of under the rules made under the said Act. BE it enacted by Parliament in the Fiftieth Year of the Republic of India as follows:– **1. Short title.–This Act may be called the Central Industrial Security Force (Amendment and** Validation) Act, 1999. **2. Amendment of long title.–In the Central Industrial Security Force Act, 1968 (50 of 1968)** (hereinafter referred to as the principal Act), for the long title, the following long title shall be substituted, namely:– “An Act to provide for the constitution and regulation of an armed force of the Union for the better protection and security of industrial undertakings owned by the Central Government, certain other industrial undertakings, employees of all such undertakings and to provide technical consultancy services to industrial establishments in the private sector and for matters connected therewith.”. **3. Amendment of section 2.–In section 2 of the principal Act, in sub-section (1), after clause (c), the** following clause shall be inserted, namely:– „(ca) “industrial establishment” means an industrial undertaking or a company as defined under section 3 of the Companies Act, 1956 (1 of 1956) or a firm registered under section 59 of the Indian Partnership Act, 1932 (9 of 1932) which is engaged in any industry, or in any trade, business or service;‟. **4. Amendment of section 3.–In section 3 of the principal Act, in sub-section (1), the words “and to** perform such other duties as may be entrusted to it by the Central Government” shall be inserted at the end. **5. Amendment of section 8.–In section 8 of the principal Act,–** (i) in clause (i), after the word “remove”, the words “, order for compulsory retirement of ”, shall be inserted; (ii) in clause (ii), after sub-clause (c), the following sub-clauses shall be inserted, namely:–– “(d) withholding of increment of pay with or without cumulative effect; (e) withholding of promotion; (f) censure.”. 2 ----- **6. Amendment of section 9.–In section 9 of the principal Act,–** (i) in sub-section (1), for the words, brackets and figure “subject to the provisions of sub-section (3)”, the words, brackets, figures and letters “subject to the provisions of sub-section (2A), subsection (2B) and sub-section (3)” shall be substituted; (ii) after sub-section (2), the following sub-sections shall be inserted, namely:– “(2A) Any enrolled member of the Force aggrieved by an order passed in appeal under sub section (1) may, within a period of six months from the date on which the order is communicated to him, prefer a revision petition against the order to such authority as may be prescribed and in disposing of the revision petition, the said authority shall follow such procedure as may be prescribed. (2B) The authority, as may be prescribed for the purpose of this sub-section, on a revision petition preferred by an aggrieved enrolled member of the Force or suo moto, may call for, within a prescribed period, the records of any proceeding under section 8 or sub-section (2) or sub-section (2A) and such authority may, after making inquiry in the prescribed manner, and subject to the provisions of this Act, pass such order thereon as it thinks fit.”; (iii) in sub-section (3), for the words, figures and brackets “under section 8 or under sub-section (2)”, the words, figures, brackets and letters “under section 8, sub-section (2), sub-section (2A) or sub-section (2B)” shall be substituted. **7. Amendment of section 10.–In section 10 of the principal Act, after clause (e), the following** clauses shall be inserted, namely:– “(f) to provide technical consultancy services relating to security of any private sector industrial establishments under section 14A; (g) to protect and safeguard the organisations owned or funded by the Government and the employees of such organisations as may be entrusted to him by the Central Government; (h) any other duty which may be entrusted to him by the Central Government from time to time.”. **8. Insertion of new section 14A.–After section 14 of the principal Act, the following section** shall be inserted, namely:– “14A. Technical Consultancy Service to industrial establishments.–(1) Subject to any general directions which may be issued by the Central Government, it shall be lawful for the Director-General, on a request received from the Managing Director of an industrial establishment in the private sector or any other person authorised by him in this behalf, to direct the members of the Force to provide technical consultancy services relating to security, to such industrial establishments in such manner and on payment of such fee as may be prescribed. (2) The fee received under sub-section (1) shall be credited to the Consolidated Fund of India. _Explanation.–For the purposes of this section, the expression “Managing Director”, in_ relation to an industrial establishment, means the person (whether called general manager, manager, chief executive officer or a partner of a firm or by any other name) who exercises control over the affairs of the establishment.”. 3 ----- **9. Amendment of section 22.–In section 22 of the principal Act, in sub-section (2),–** (i) after clause (ggg), the following clauses shall be inserted, namely:– “(gggg) prescribing authority under sub-section (2A) of section 9 and the procedure to be followed by such authority in disposing of the revision petition; (ggggg) prescribing authority under sub-section (2B) of section 9, the period within which such authority may call for the records and the manner in which such authority may make inquiry;”; (ii) in clause (h), the word “and” occurring at the end shall be omitted; (iii) after clause (h), the following clause shall be inserted, namely:– “(hh) the manner in which and the fee on payment of which the technical consultancy services shall be provided under sub-section (1) of section 14A; and”. **10. Validation of the disposal of certain revision petitions.–Notwithstanding any judgment, decree** or order of any court to the contrary, rule 49 of the Central Industrial Security Force Rules, 1969 published with the notification of the Government of India in the Ministry of Home Affairs number S.O. 4632, dated the 12th November, 1969 shall be deemed to be, and to have always been, made under the principal Act as amended by this Act as if the principal Act as so amended had been in force at all material times before the commencement of this Act and accordingly the disposal of any revision petition under the said rule 49 before the commencement of this Act or any order made or purporting to have been made or any action or thing taken or done in or under such petition shall not be deemed to be invalid or ever to have become invalid merely on the ground that the Central Government had no power under the principal Act to make the said rule 49. 4 -----
29-Dec-1999
41
The Insurance Regulatory and Development Authority Act, 1999
https://www.indiacode.nic.in/bitstream/123456789/1893/1/A1999_41.pdf
central
# THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT, 1999 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY 3. Establishment and incorporation of Authority. 4. Composition of Authority. 5. Tenure of office of Chairperson and other members. 6. Removal from office. 7. Salary and allowances of Chairperson and members. 8. Bar on future employment of members. 9. Administrative powers of Chairperson. 10. Meetings of Authority. 11. Vacancies, etc., not to invalidate proceedings of Authority. 12. Officers and employees of Authority. CHAPTER III TRANSFER OF ASSETS, LIABILITIES, ETC., OF INTERIM INSURANCE REGULATORY AUTHORITY 13. Transfer of assets, liabilities, etc., of Interim Insurance Regulatory Authority. CHAPTER IV DUTIES, POWERS AND FUNCTIONS OF AUTHORITY 14. Duties, powers and functions of Authority. CHAPTER V FINANCE, ACCOUNTS AND AUDIT 15. Grants by Central Government. 16. Constitution of Fund. 17. Accounts and audit. 1 ----- CHAPTER VI MISCELLANEOUS SECTIONS 18. Power of Central Government to issued directions. 19. Power of Central Government to supersede Authority. 20. Furnishing of returns, etc., to Central Government. 21. Chairperson, members, officers and other employees of Authority to be public servants. 22. Protection of action taken in good faith. 23. Delegation of powers. 23A. Powers of Authority not to apply to International Financial Services Centre. 24. Power to make rules. 25. Establishment of Insurance Advisory Committee. 26. Power to make regulations. 27. Rules and regulations to be laid before Parliament. 28. Application of other laws not barred. 29. Power to remove difficulties. 30. Amendment of Act 4 of 1938. 31. Amendment of Act 31 of 1956. 32. Amendment of Act 57 of 1972. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. 2 ----- # THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT, 1999 ACT NO. 41 OF 1999 [29th December, 1999.] # An Act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General Insurance Business (Nationalisation) Act, 1972. BE it enacted by Parliament in the Fiftieth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Insurance Regulatory** and Development Authority Act, 1999. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date on which the Authority is established under sub-section (1) of section 3; (b) “Authority” means the Insurance Regulatory and Development Authority [2][of India] established under sub-section (1) of section 3; (c) “Chairperson” means the Chairperson of the Authority; (d) “Fund” means the Insurance Regulatory and Development Authority Fund constituted under sub-section (1) of section 16; (e) “Interim Insurance Regulatory Authority” means the Insurance Regulatory Authority set up by the Central Government through Resolution No. 17(2)/94-Ins.-V, dated the 23rd January, 1996; 3[(f) “intermediary” or “insurance intermediary” includes insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, surveyors and loss assessors and such other entities, as may be notified by the Authority from time to time;] (g) “member” means a whole-time or a part-time member of the Authority and includes the Chairperson; (h) “notification” means a notification published in the Official Gazette; (i) “prescribed” means prescribed by rules made under this Act; (j) “regulations” means the regulations made by the Authority. 1.19th April, 2000, _vide_ notification No. S.O. 397(E), dated 19th April, 2000, _see Gazette of India, Extraordinary, Part II,_ sec. 3(ii). 2. Ins. by Act 5 of 2015, s. 105 (w.e.f. 26-12-2014). 3. Subs. by s. 105, ibid., for clause (f) (w.e.f. 26-12-2014). 3 ----- (2) Words and expressions used and not defined in this Act but defined in the Insurance Act, 1938 (4 of 1938) or the Life Insurance Corporation Act, 1956 (31 of 1956) or the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) shall have the meanings respectively assigned to them in those Acts. CHAPTER II INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY **3. Establishment and incorporation of Authority.—(1) With effect from such date as the Central** Government may, by notification, appoint, there shall be established, for the purposes of this Act, an Authority to be called “the Insurance Regulatory and Development Authority [1][of India]”. (2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (3) The head office of the Authority shall be at such place as the Central Government may decide from time to time. (4) The Authority may establish offices at other places in India. **4. Composition of Authority.—The Authority shall consist of the following members, namely:—** (a) a Chairperson; (b) not more than five whole-time members; (c) not more than four part-time members, to be appointed by the Central Government from amongst persons of ability, integrity and standing who have knowledge or experience in life insurance, general insurance, actuarial science, finance, economics, law, accountancy, administration or any other discipline which would, in the opinion of the Central Government, be useful to the Authority: Provided that the Central Government shall, while appointing the Chairperson and the whole-time members, ensure that at least one person each is a person having knowledge or experience in life insurance, general insurance or actuarial science, respectively. **5. Tenure of office of Chairperson and other members.—(1) The Chairperson and every other** whole-time member shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment: Provided that no person shall hold office as a Chairperson after he has attained the age of sixty-five years: Provided further that no person shall hold office as a whole-time member after he has attained the age of sixty-two years. (2) A part-time member shall hold office for a term not exceeding five years from the date on which he enters upon his office. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), a member may— (a) relinquish his office by giving in writing to the Central Government notice of not less than three months; or (b) be removed from his office in accordance with the provisions of section 6. **6. Removal from office.—(1) The Central Government may remove from office any member who—** (a) is, or at any time has been, adjudged as an insolvent; or (b) has become physically or mentally incapable of acting as a member; or 1. Ins. by Act 5 of 2015, s. 106 (w.e.f. 26-12-2014). 4 ----- (c) has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or (e) has so abused his position as to render his continuation in office detrimental to the public interest. (2) No such member shall be removed under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter. **7. Salary and allowances of Chairperson and members.—(1) The salary and allowances payable** to, and other terms and conditions of service of, the members other than part-time members shall be such as may be prescribed. (2) The part-time members shall receive such allowances as may be prescribed. (3) The salary, allowances and other conditions of service of a member shall not be varied to his disadvantage after appointment. **8. Bar on future employment of members.—The Chairperson and the whole-time members shall** not, for a period of two years from the date on which they cease to hold office as such, except with the previous approval of the Central Government, accept— (a) any employment either under the Central Government or under any State Government; or (b) any appointment in any company in the insurance sector. **9. Administrative powers of Chairperson.—The Chairperson shall have the powers of general** superintendence and direction in respect of all administrative matters of the Authority. **10. Meetings of Authority.—(1) The Authority shall meet at such time and places and shall observe** such rules and procedures in regard to transaction of business at its meetings (including quorum at such meetings) as may be determined by the regulations. (2) The Chairperson, or if for any reason he is unable to attend a meeting of the Authority, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes by the members present and voting, and in the event of an equality of votes, the Chairperson, or in his absence, the person presiding shall have a second or casting vote. (4) The Authority may make regulations for the transaction of business at its meetings. **11. Vacancies, etc., not to invalidate proceedings of Authority.—No act or proceeding of the** Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. **12. Officers and employees of Authority.—(1) The Authority may appoint officers and such other** employees as it considers necessary for the efficient discharge of its functions under this Act. (2) The terms and other conditions of service of officers and other employees of the Authority appointed under sub-section (1) shall be governed by the regulations made under this Act. 5 ----- CHAPTER III TRANSFER OF ASSETS, LIABILITIES, ETC., OF INTERIM INSURANCE REGULATORY AUTHORITY **13. Transfer of assets, liabilities, etc., of Interim Insurance Regulatory Authority.—On the** appointed day,— (a) all the assets and liabilities of the Interim Insurance Regulatory Authority shall stand transferred to, and vested in, the Authority. _Explanation.—The assets of the Interim Insurance Regulatory Authority shall be deemed to_ include all rights and powers, and all properties, whether movable or immovable, including, in particular, cash balances, deposits and all other interests and rights in, or arising out of, such properties as may be in the possession of the Interim Insurance Regulatory Authority and all books of account and other documents relating to the same; and liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind; (b) without prejudice to the provisions of clause (a), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Interim Insurance Regulatory Authority immediately before that day, for or in connection with the purpose of the said Regulatory Authority, shall be deemed to have been incurred, entered into or engaged to be done by, with or for, the Authority; (c) all sums of money due to the Interim Insurance Regulatory Authority immediately before that day shall be deemed to be due to the Authority; and (d) all suits and other legal proceedings instituted or which could have been instituted by or against the Interim Insurance Regulatory Authority immediately before that day may be continued or may be instituted by or against the Authority. CHAPTER IV DUTIES, POWERS AND FUNCTIONS OF AUTHORITY **14. Duties, powers and functions of Authority.—(1) Subject to the provisions of this Act and any** other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include,— (a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; (b) protection of the interests of the policy-holders in matters concerning assigning of policy, nomination by policy-holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; (c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; (d) specifying the code of conduct for surveyors and loss assessors; (e) promoting efficiency in the conduct of insurance business; (f) promoting and regulating professional organisations connected with the insurance and re-insurance business; (g) levying fees and other charges for carrying out the purposes of this Act; (h) calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business; (i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); 6 ----- (j) specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries; (k) regulating investment of funds by insurance companies; (l) regulating maintenance of margin of solvency; (m) adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n) supervising the functioning of the Tariff Advisory Committee; (o) specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f); (p) specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and (q) exercising such other powers as may be prescribed. CHAPTER V FINANCE, ACCOUNTS AND AUDIT **15. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, make to the Authority grants of such sums of money as the Government may think fit for being utilised for the purposes of this Act. **16. Constitution of Fund.—(1) There shall be constituted a fund to be called “the Insurance** Regulatory and Development Authority Fund” and there shall be credited thereto— (a) all Government grants, fees and charges received by the Authority; (b) all sums received by the Authority from such other source as may be decided upon by the Central Government; 1* - - - (2) The Fund shall be applied for meeting— (a) the salaries, allowances and other remuneration of the members, officers and other employees of the Authority; (b) the other expenses of the Authority in connection with the discharge of its functions and for the purposes of this Act. **17. Accounts and audit.—(1) The Authority shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books of account, connected vouchers and other documents and papers and to inspect any of the offices of the Authority. (4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. 1. Clause (c) omitted by Act 5 of 2015, s. 107 (w.e.f 26-12-2014). 7 ----- CHAPTER VI MISCELLANEOUS **18. Power of Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Authority shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy, other than those relating to technical and administrative matters, as the Central Government may give in writing to it from time to time: Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government, whether a question is one of policy or not, shall be final. **19. Power of Central Government to supersede Authority.—(1) If, at any time the Central** Government is of the opinion,— (a) that, on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or (b) that the Authority has persistently defaulted in complying with any direction given by the Central Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Authority or the administration of the Authority has suffered; or (c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification and for reasons to be specified therein, supersede the Authority for such period, not exceeding six months, as may be specified in the notification and appoint a person to be the Controller of Insurance under section 2B of the Insurance Act, 1938 (4 of 1938), if not already done: Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Authority to make representations against the proposed supersession and shall consider the representations, if any, of the Authority. (2) Upon the publication of a notification under sub-section (1) superseding the Authority,— (a) the Chairperson and other members shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted under sub-section (3), be exercised and discharged by the Controller of Insurance; and (c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the Central Government. (3) On or before the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government shall reconstitute the Authority by a fresh appointment of its Chairperson and other members and in such case any person who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for reappointment. (4) The Central Government shall cause a copy of the notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament at the earliest. **20. Furnishing of returns, etc., to Central Government.—(1) The Authority shall furnish to the** Central Government at such time and in such form and manner as may be prescribed, or as the Central Government may direct to furnish such returns, statements and other particulars in regard to any proposed or existing programme for the promotion and development of the insurance industry as the Central Government may, from time to time, require. 8 ----- (2) Without prejudice to the provisions of sub-section (1), the Authority shall, within nine months after the close of each financial year, submit to the Central Government a report giving a true and full account of its activities including the activities for promotion and development of the insurance business during the previous financial year. (3) Copies of the reports received under sub-section (2) shall be laid, as soon as may be after they are received, before each House of Parliament. **21. Chairperson, members, officers and other employees of Authority to be public servants.—** The Chairperson, members, officers and other employees of the Authority shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **22. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government or any officer of the Central Government or any member, officer or other employee of the Authority for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder: Provided that nothing in this Act shall exempt any person from any suit or other proceedings which might, apart from this Act, be brought against him. **23. Delegation of powers.— (1) The Authority may, by general or special order in writing, delegate** to the Chairperson or any other member or officer of the Authority subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act as it may deem necessary. (2) The Authority may, by a general or special order in writing, also form committees of the members and delegate to them the powers and functions of the Authority as may be specified by the regulations. **1[23A. Powers of Authority not to apply to International Financial Services Centre.—** Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Authority under this Act, — (a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 of 2005); (b) shall be exercisable by the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, in so far as regulation of financial products, financial services and financial institutions that are permitted in the International Financial Services Centres are concerned.] **24. Power to make rules.—(1) The Central Government may, by notification, make rules for** carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the salary and allowances payable to, and other terms and conditions of service of, the members other than part-time members under sub-section (1) of section 7; (b) the allowances to be paid to the part-time members under sub-section (2) of section 7; (c) such other powers that may be exercised by the Authority under clause (q) of sub-section (2) of section 14; (d) the form of annual statement of accounts to be maintained by the Authority under sub-section (1) of section 17; (e) the form and manner in which and the time within which returns and statements and particulars are to be furnished to the Central Government under sub-section (1) of section 20; 1. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). 9 ----- (f) the matters under sub-section (5) of section 25 on which the Insurance Advisory Committee shall advise the Authority; (g) any other matter which is required to be, or may be, prescribed, or in respect of which provision is to be or may be made by rules. **25. Establishment of Insurance Advisory Committee.—(1) The Authority may, by notification,** establish with effect from such date as it may specify in such notification, a Committee to be known as the Insurance Advisory Committee. (2) The Insurance Advisory Committee shall consist of not more than twenty-five members excluding _ex officio members to represent the interests of commerce, industry, transport, agriculture, consumer fora,_ surveyors, agents, intermediaries, organisations engaged in safety and loss prevention, research bodies and employees‟ association in the insurance sector. (3) The Chairperson and the members of the Authority shall be the _ex officio Chairperson and_ _ex officio members of the Insurance Advisory Committee._ (4) The objects of the Insurance Advisory Committee shall be to advise the Authority on matters relating to the making of the regulations under section 26. (5) Without prejudice to the provisions of sub-section (4), the Insurance Advisory Committee may advise the Authority on such other matters as may be prescribed. **26. Power to make regulations.—(1) The Authority may, in consultation with the Insurance** Advisory Committee, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the time and places of meetings of the Authority and the procedure to be followed at such meetings including the quorum necessary for the transaction of business under sub-section (1) of section 10; (b) the transaction of business at its meetings under sub-section (4) of section 10; (c) the terms and other conditions of service of officers and other employees of the Authority under sub-section (2) of section 12; (d) the powers and functions which may be delegated to committees of the members under sub-section (2) of section 23; and (e) any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be or may be made by regulations. **27. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **28. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the provisions of any other law for the time being in force. **29. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: 10 ----- Provided that no order shall be made under this section after the expiry of two years from the appointed day. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **30. Amendment of Act 4 of 1938.—The Insurance Act, 1938 shall be amended in the manner** specified in the First Schedule to this Act. **31. Amendment of Act 31 of 1956.—The Life Insurance Corporation Act, 1956 shall be amended in** the manner specified in the Second Schedule to this Act. **32. Amendment of Act 57 of 1972.—The General Insurance Business (Nationalisation) Act, 1972** shall be amended in the manner specified in the Third Schedule to this Act. 11 ----- THE FIRST SCHEDULE (See section 30) AMENDMENTS TO THE INSURANCE ACT, 1938 (4 OF 1938) 1. In the Act, except in clause (5B) of section 2 and section 2B, for “Controller” wherever it occurs, substitute “Authority” and such consequential changes as the rules of grammar may require shall also be made. 2. In sections 27, 27A, 27B, 31, 32A, 40A, 48B, 64F, 64G, 64-I, 64J, 64L, 64R, 64UC, 64UM, 113 and 115, for “Central Government” wherever they occur, substitute “Authority”. 3. Section 2,— (a) after clause (1), insert the following:— „(1A) “Authority” means the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999;‟; (b) for clause (5B), substitute the following:— „(5B) “Controller of Insurance” means the officer appointed by the Central Government under section 2B to exercise all the powers, discharge the functions and perform the duties of the Authority under this Act or the Life Insurance Corporation Act, 1956 (31 of 1956) or the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) or the Insurance Regulatory and Development Authority Act, 1999;‟; (c) after clause (7), insert the following:— „(7A) “Indian insurance company” means any insurer being a company— (a) which is formed and registered under the Companies Act, 1956 (1 of 1956); (b) in which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six per cent. paid-up equity capital of such Indian insurance company; (c) whose sole purpose is to carry on life insurance business or general insurance business or re-insurance business. _Explanation.—For the purposes of this clause, the expression “foreign company” shall have_ the meaning assigned to it under clause (23A) of section 2 of the Income-tax Act, 1961 (43 of 1961);‟; (d) in clause (14), for “section 114”, substitute “this Act”. 4. After section 2, insert the following:— “2A. _Interpretation of certain words and expressions.—Words and expressions used and not_ defined in this Act but defined in the Life Insurance Corporation Act, 1956 (31 of 1956), the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and the Insurance Regulatory and Development Authority Act, 1999 shall have the meanings respectively assigned to them in those Acts.”. 5. Section 2B, for sub-section (1), substitute the following:— “(1) If at any time, the Authority is superseded under sub-section (1) of section 19 of the Insurance Regulatory and Development Authority Act, 1999, the Central Government may, by notification in the Official Gazette, appoint a person to be the Controller of Insurance till such time the Authority is reconstituted under sub-section (3) of section 19 of that Act.”. 12 ----- 6. Section 2C, in sub-section (1), after the second proviso, insert the following:— “Provided also that no insurer other than an Indian insurance company shall begin to carry on any class of insurance business in India under this Act on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999.”. 7. Section 3,— (a) in sub-section (1), after the first proviso, insert the following:— “Provided further that a person or insurer, as the case may be, carrying on any class of insurance business in India, on or before the commencement of the Insurance Regulatory and Development Authority Act, 1999, for which no registration certificate was necessary prior to such commencement, may continue to do so for a period of three months from such commencement or, if he had made an application for such registration within the said period of three months, till the disposal of such application: Provided also that any certificate of registration, obtained immediately before the commencement of the Insurance Regulatory and Development Authority Act, 1999, shall be deemed to have been obtained from the Authority in accordance with the provisions of this Act.”; (b) in sub-section (2),— (i) in the opening portion, for “Every application for registration shall be accompanied by—”, substitute the following:— “Every application for registration shall be made in such manner as may be determined by the regulations made by the Authority and shall be accompanied by—”; (ii) in clause (d), for “working capital”, substitute “paid-up equity capital or working capital”; (iii) in clause (f), in the proviso, omit “and” occurring at the end; (iv) for clause (g), substitute the following:— “(g) the receipt showing payment of fee as may be determined by the regulations which shall not exceed fifty thousand rupees for each class of business as may be specified by the regulations made by the Authority; (h) such other documents as may be specified by the regulations made by the Authority;”; (c) after sub-section (2A), insert— “(2AA) The Authority shall give preference to register the applicant and grant him a certificate of registration if such applicant agrees, in the form and manner as may be specified by the regulations made by the Authority, to carry on the life insurance business or general insurance business for providing health cover to individuals or group of individuals.”; (d) in sub-section (4),— (i) in clause (f), for “of any rule or order made thereunder, or”, substitute the following:— “of any rule or any regulation or order made or, any direction issued thereunder, or”; (ii) in clause (h), insert “or” at the end; (iii) after clause (h), insert the following:— “(i) if the insurer makes a default in complying with any direction issued or order made, as the case may be, by the Authority under the Insurance Regulatory and Development Authority Act, 1999, or (j) if the insurer makes a default in complying with, or acts in contravention of, any requirement of the Companies Act, 1956 (1 of 1956) or the Life Insurance Corporation Act, 1956 (31 of 1956) or the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) or the Foreign Exchange Regulation Act, 1973 (46 of 1973).”; 13 ----- (e) in sub-section (5C),— (i) for “clause (h)”, substitute “clause (h) or clause (i) or clause (j)”; (ii) for “any requirement of this Act or of any rule or order made thereunder”, substitute the following:— “any requirement of this Act or the Insurance Regulatory and Development Authority Act, 1999, or of any rule or any regulation, or any order made thereunder or any direction issued under those Acts”; (f) after sub-section (5D), insert the following:— “(5E) The Authority may, by order, suspend or cancel any registration in such manner as may be determined by the regulations made by it: Provided that no order under this sub-section shall be made unless the person concerned has been given a reasonable opportunity of being heard.”; (g) for sub-section (7), substitute the following:— “(7) The Authority may, on payment of such fee, not exceeding five thousand rupees, as may be determined by the regulations, issue a duplicate certificate of registration to replace a certificate lost, destroyed or mutilated, or in any other case where the Authority is of opinion that the issue of duplicate certificate is necessary.”. 8. Section 3A,— (a) in sub-section (1), for “the 31st day of December, 1941.”, substitute the following:— “the 31st day of March, after the commencement of the Insurance Regulatory and Development Authority Act, 1999.”; (b) in sub-section (2),— (i) for “prescribed fee”, substitute “fee as determined by the regulations made by the Authority”; (ii) for clause (i), substitute the following:— “(i) exceed one-fourth of one per cent. of such premium income or rupees five crores, whichever is less,”; (iii) for clause (ii), substitute the following:— “(ii) be less, in any case, than fifty thousand rupees for each class of insurance business:”; (c) in sub-section (3), for “prescribed fee”, substitute “fee as determined by the regulations made by the Authority”; (d) in sub-section (4), for “prescribed fee”, substitute “fee as determined by the regulations made by the Authority, and”. 9. For section 6, substitute the following:— “6. _Requirement as to capital.—No insurer carrying on the business of life insurance, general_ insurance or re-insurance in India on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999, shall be registered unless he has,— (i) a paid-up equity capital of rupees one hundred crores, in case of a person carrying on the business of life insurance or general insurance; or (ii) a paid-up equity capital of rupees two hundred crores, in case of a person carrying on exclusively the business as a re-insurer: 14 ----- Provided that in determining the paid-up equity capital specified under clause (i) or clause (ii), the deposit to be made under section 7 and any preliminary expenses incurred in the formation and registration of the company shall be excluded: Provided further that an insurer carrying on business of life insurance, general insurance or re insurance in India before the commencement of the Insurance Regulatory and Development Authority Act, 1999 and who is required to be registered under this Act, shall have a paid-up equity capital in accordance with clause (i) and clause (ii), as the case may be, within six months of the commencement of that Act.”. 10. Section 6A,— (a) in sub-section (4), in clause (b),— (I) in sub-clause (i), omit “and” occurring at the end; (II) in sub-clause (ii), for “sanction of the Central Government has been obtained to the transfer.”, substitute “approval of the Authority has been obtained to the transfer;”; (III) after sub-clause (ii), insert the following:— „(iii) where, the nominal value of the shares intended to be transferred by any individual, firm, group, constituents of a group, or body corporate under the same management, jointly or severally exceeds one per cent. of the paid-up equity capital of the insurer, unless the previous approval of the Authority has been obtained for the transfer. _Explanation.—For the purposes of this sub-clause, the expressions “group” and “same_ management” shall have the same meanings respectively assigned to them in the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969).‟; (b) in sub-section (11),— (i) for “Explanation 1”, substitute “Explanation”; (ii) omit Explanation 2. 11. After section 6A, insert the following:— “6AA. Manner of divesting excess shareholding by promoter in certain cases.—(1) No promoter shall at any time hold more than twenty-six per cent. or such other percentage as may be prescribed, of the paid-up equity capital in an Indian insurance company: Provided that in a case where an Indian insurance company begins the business of life insurance, general insurance or re-insurance in which the promoters hold more than twenty-six per cent. of the paid-up equity capital or such other excess percentage as may be prescribed, the promoters shall divest in a phased manner the share capital in excess of the twenty-six per cent. of the paid-up equity capital or such excess paid-up equity capital as may be prescribed, after a period of ten years from the date of the commencement of the said business by such Indian insurance company or within such period as may be prescribed by the Central Government. _Explanation.—For the removal of doubts, it is hereby declared that nothing contained in the_ proviso shall apply to the promoters being foreign company, referred to in sub-clause (b) of clause (7A) of section 2. (2) The manner and procedure for divesting the excess share capital under sub-section (1) shall be specified by the regulations made by the Authority.”. 12. Section 7,— (a) in sub-section (1),— (i) omit “not being an insurer specified in sub-clause (c) of clause (9) of section 2”; 15 ----- (ii) for clauses (a) and (b), substitute the following:— “(a) in the case of life insurance business, a sum equivalent to one per cent. of his total gross premium written in India in any financial year commencing after the 31st day of March, 2000, not exceeding rupees ten crores; (b) in the case of general insurance business, a sum equivalent to three per cent. of his total gross premium written in India, in any financial year commencing after the 31st day of March, 2000, not exceeding rupees ten crores; (c) in the case of re-insurance business, a sum of rupees twenty crores:”; (b) omit sub-sections (1A), (1B), (1C), (1D) and (1E). 13. Section 11,— (a) in sub-section (1), for “calendar year”, substitute “financial year”; (b) after sub-section (1), insert the following:— “(1A) Notwithstanding anything contained in sub-section (1), every insurer, on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999, in respect of insurance business transacted by him and in respect of his shareholders‟ funds, shall, at the expiration of each financial year, prepare with reference to that year, a balance-sheet, a profit and loss account, a separate account of receipts and payments, a revenue account in accordance with the regulations made by the Authority. (1B) Every insurer shall keep separate accounts relating to funds of shareholders and policy holders.”. 14. Section 13,— (a) in sub-section (1), — (i) for “once at least in every three years”, substitute “every year”; (ii) in the first proviso, for “not later than four years”, substitute “not later than two years”; (iii) after the second proviso, insert the following:— “Provided also that for an insurer carrying on life insurance business in India immediately before the commencement of the Insurance Regulatory and Development Authority Act, 1999, the last date as at which the first investigation after such commencement should be caused by an actuary, shall be the 31st day of March, 2001:”; (iv) after the third proviso, insert the following:— “Provided also that every insurer, on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999, shall cause an abstract of the report of the actuary to be made in the manner specified by the regulations made by the Authority.”; (b) in sub-section (4), after the proviso, insert the following:— “Provided further that the statement referred to in sub-section (4) shall be appended in the form and in the manner specified by the regulations made by the Authority.”. 15. After section 27B, insert the following:— “27C. Prohibition for investment of funds outside India.—No insurer shall directly or indirectly invest outside India the funds of the policy-holders. 27D. _Manner and conditions of investment.—(1) Without prejudice to anything contained in_ sections 27, 27A and 27B, the Authority may, in the interests of the policy-holders, specify by the regulations made by it, the time, manner and other conditions of investment of assets to be held by an insurer for the purposes of this Act. 16 ----- (2) The Authority may give specific directions for the time, manner and other conditions subject to which the funds of policy-holders shall be invested in the infrastructure and social sector as may be specified by regulations made by the Authority and such regulations shall apply uniformly to all the insurers carrying on the business of life insurance, general insurance, or re-insurance in India on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999. (3) The Authority may, after taking into account the nature of business and to protect the interests of the policy-holders, issue to an insurer the directions relating to the time, manner and other conditions of investment of assets to be held by him: Provided that no direction under this sub-section shall be issued unless the insurer concerned has been given a reasonable opportunity of being heard.”. 16. Section 28A, in sub-section (1), for “31st day of December”, substitute “31st day of March”. 17. Section 28B, in sub-section (1), for “31st day of December”, substitute “31st day of March”. 18. Section 31B,— (a) in sub-section (1), for “Central Government” at both the places where they occur, substitute “Authority”; (b) in sub-section (2), for “a statement in the prescribed form”, substitute “a statement, in the form specified by the regulations made by the Authority,”; (c) after sub-section (3), insert the following:— “(4) Every direction under this section shall be issued by an order made by the Authority: Provided that no order under this section shall be made unless the person concerned has been given an opportunity of being heard.”. 19. After section 32A, insert the following:— “32B. Insurance business in rural or social sector.—Every insurer shall, after the commencement of the Insurance Regulatory and Development Authority Act, 1999, undertake such percentages of life insurance business and general insurance business in the rural or social sector, as may be specified, in the Official Gazette by the Authority, in this behalf. 32C. Obligations of insurer in respect of rural or unorganised sector and backward classes.— Every insurer shall, after the commencement of the Insurance Regulatory and Development Authority Act, 1999, discharge the obligations specified under section 32B to provide life insurance or general insurance policies to the persons residing in the rural sector, workers in the unorganised or informal sector or for economically vulnerable or backward classes of the society and other categories of persons as may be specified by regulations made by the Authority and such insurance policies shall include insurance for crops.”. 20. For section 33, substitute the following:— „INVESTIGATION 33. Power of investigation and inspection by Authority.—(1) The Authority may, at any time, by order in writing, direct any person (hereafter in this section referred to as “Investigating Authority”) specified in the order to investigate the affairs of any insurer and to report to the Authority on any investigation made by such Investigating Authority: Provided that the Investigating Authority may, wherever necessary, employ any auditor or actuary or both for the purpose of assisting him in any investigation under this section. (2) Notwithstanding anything to the contrary contained in section 235 of the Companies Act, 1956 (1 of 1956), the Investigating Authority may, at any time, and shall, on being directed so to do by the Authority, cause an inspection to be made by one or more of his officers of any insurer and his books of account; and the Investigating Authority shall supply to the insurer a copy of his report on such inspection. 17 ----- (3) It shall be the duty of every manager, managing director or other officer of the insurer to produce before the Investigating Authority directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers and other documents in his custody or power and to furnish him with any statement and information relating to the affairs of the insurer as the said Investigating Authority may require of him within such time as the said Investigating Authority may specify. (4) Any Investigating Authority, directed to make an investigation under sub-section (1), or inspection under sub-section (2), may examine on oath, any manager, managing director or other officer of the insurer in relation to his business and may administer oaths accordingly. (5) The Investigating Authority shall, if he has been directed by the Authority to cause an inspection to be made, and may, in any other case, report to the Authority on any inspection made under this section. (6) On receipt of any report under sub-section (1) or sub-section (5), the Authority may, after giving such opportunity to the insurer to make a representation in connection with the report as, in the opinion of the Authority, seems reasonable, by order in writing,— (a) require the insurer, to take such action in respect of any matter arising out of the report as the Authority may think fit; or (b) cancel the registration of the insurer; or (c) direct any person to apply to the court for the winding up of the insurer, if a company, whether the registration of the insurer has been cancelled under clause (b) or not. (7) The Authority may, after giving reasonable notice to the insurer, publish the report submitted by the Investigating Authority under sub-section (5) or such portion thereof as may appear to it to be necessary. (8) The Authority may by the regulations made by it specify the minimum information to be maintained by insurers in their books, the manner in which such information shall be maintained, the checks and other verifications to be adopted by insurers in that connection and all other matters incidental thereto as are, in its opinion, necessary to enable the Investigating Authority to discharge satisfactorily his functions under this section. _Explanation.—For the purposes of this section, the expression “insurer” shall include in the case_ of an insurer incorporated in India— (a) all its subsidiaries formed for the purpose of carrying on the business of insurance exclusively outside India; and (b) all its branches whether situated in India or outside India. (9) No order made under this section other than an order made under clause (b) of sub-section (6) shall be capable of being called in question in any court. (10) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer, shall have priority over that debts due from the insurer and shall be recoverable as an arrear of land revenue.‟. 21. Section 33A, omit “Central Government or the”. 22. Section 34H,— (a) in sub-section (1),— (i) for “Controller”, substitute “Chairperson of the Authority”; (ii) for “an Assistant Controller of Insurance”, substitute “an officer authorised by the Authority”; (b) in sub-sections (5) and (7), for “Controller” wherever it occurs, substitute “Chairperson of the Authority”. 18 ----- 23. Section 35,— (a) in sub-section (1), for “sanctioned by the Controller”, substitute “approved by the Authority”; (b) in sub-section (3),— (i) in the first paragraph, for “to sanction any such scheme”, substitute “to approve any such scheme”; (ii) in the second paragraph, for “the amalgamation or transfer if sanctioned”, substitute “the amalgamation or transfer if approved”. 24. Section 36,— (a) in sub-section (1), for “may sanction the arrangement”, substitute “may approve the arrangement”; (b) in sub-section (2),— (i) for “the insurers concerned in the amalgamation, the Controller may sanction”, substitute “the insurers concerned in the amalgamation, the Authority may approve”; (ii) for “contracts as sanctioned by the Controller”, substitute “contracts as approved by the Authority”. 25. Section 37, in clause (c), for “scheme sanctioned”, substitute “scheme approved”. 26. In section 40A, in sub-section (3), for the portion beginning with the words “an amount exceeding” and ending with the words “ten per cent. of the premium payable on the policy”, substitute “an amount not exceeding fifteen per cent. of the premium payable on the policy where the policy relates to fire or marine insurance or miscellaneous insurance.”. 27. Section 42,— (a) for sub-section (1), substitute the following:— “(1) The Authority or an officer authorised by it in this behalf shall, in the manner determined by the regulations made by it and on payment of the fee determined by the regulations, which shall not be more than two hundred and fifty rupees, issue to any person making an application in the manner determined by the regulations, a licence to act as an insurance agent for the purpose of soliciting or procuring insurance business: Provided that,— (i) in the case of an individual, he does not suffer from any of the disqualifications mentioned in sub-section (4); and (ii) in the case of a company or firm, any of its directors or partners does not suffer from any of the said disqualifications: Provided further that any licence issued immediately before the commencement of the Insurance Regulatory and Development Authority Act, 1999 shall be deemed to have been issued in accordance with the regulations which provide for such licence.”; (b) for sub-section (3), substitute the following:— “(3) A licence issued under this section, after the date of the commencement of the Insurance Regulatory and Development Authority Act, 1999, shall remain in force for a period of three years only from the date of issue, but shall, if the applicant, being an individual does not, or being a company or firm any of its directors or partners does not, suffer from any of the disqualifications mentioned in clauses (b), (c), (d), (e) and (f) of sub-section (4) and the application for renewal of licence reaches the issuing authority at least thirty days before the date on the licence ceases to remain in force, be renewed for a period of three years at any one time on payment of the fee determined by the regulations made by the Authority which shall not be more than rupees two hundred and fifty, and additional fee of an amount determined by the 19 ----- regulations not exceeding rupees one hundred by way of penalty, if the application for renewal of the licence does not reach the issuing authority at least thirty days before the date on which the licence ceases to remain in force.”; (c) in sub-section (3A), for the proviso, substitute the following:— “Provided that the Authority may, if satisfied that undue hardship would be caused otherwise, accept any application in contravention of this sub-section on payment by the applicant of a penalty of seven hundred and fifty rupees.”; (d) in sub-section (4), after clause (d), insert the following:— “(e) that he does not possess the requisite qualifications and practical training for a period not exceeding twelve months, as may be specified by the regulations made by the Authority in this behalf; (f) that he has not passed such examination as may be specified by the regulations made by the Authority in this behalf: Provided that a person who had been issued a licence under sub-section (1) of this section or sub-section (1) of section 64UM shall not be required to possess the requisite qualifications, practical training and pass such examination as required by clauses (e) and (f); (g) that he violates the code of conduct as may be specified by the regulations made by the Authority.”; (e) for sub-section (6), substitute the following:— “(6) The Authority may issue a duplicate licence to replace a licence lost, destroyed or mutilated, on payment of such fee not exceeding fifty rupees as may be determined by the regulations.”; (f) in sub-section (7),— (i) for “fifty rupees”, substitute “five hundred rupees”; (ii) for “one hundred rupees”, substitute “one thousand rupees”; (g) in sub-section (8), for “fifty rupees”, substitute “five thousand rupees”. 28. Section 42A, in sub-section (1),— (a) for “Controller or an officer authorised by him”, substitute “Authority or an officer authorised by it”; (b) for “an application to him”, substitute “an application to it”. 29. After section 42C, insert the following:— “42D. _Issue of licence to intermediary or insurance intermediary.—(1) The Authority or an_ officer authorised by it in this behalf shall, in the manner determined by the regulations made by the Authority and on payment of the fees determined by the regulations made by the Authority, issue to any person making an application in the manner determined by the regulations, and not suffering from any of the disqualifications herein mentioned, a licence to act as an intermediary or an insurance intermediary under this Act: Provided that,— (a) in the case of an individual, he does not suffer from any of the disqualifications mentioned in sub-section (4) of section 42, or (b) in the case of a company or firm, any of its directors or partners does not suffer from any of the said disqualifications. (2) A licence issued under this section shall entitle the holder thereof to act as an intermediary or insurance intermediary. 20 ----- (3) A licence issued under this section shall remain in force for a period of three years only from the date of issue, but shall, if the applicant, being an individual does not, or being a company or firm any of its directors or partners does not suffer from any of the disqualifications mentioned in clauses (b), (c), (d), (e) and (f) of sub-section (4) of section 42 and the application for renewal of licence reaches the issuing authority at least thirty days before the date on which the licence ceases to remain in force, be renewed for a period of three years at any one time on payment of the fee, determined by the regulations made by the Authority and additional fee for an amount determined by the regulations, not exceeding one hundred rupees by way of penalty, if the application for renewal of the licence does not reach the issuing authority at least thirty days before the date on which the licence ceases to remain in force. (4) No application for the renewal of a licence under this section shall be entertained if the application does not reach the issuing authority before the licence ceases to remain in force: Provided that the Authority may, if satisfied that undue hardship would be caused otherwise, accept any application in contravention of this sub-section on payment by the applicant of a penalty of seven hundred and fifty rupees. (5) The disqualifications above referred to shall be the following:— (a) that the person is a minor; (b) that he is found to be of unsound mind by a court of competent jurisdiction; (c) that he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction: Provided that, where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the Authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause; (d) that in the course of any judicial proceeding relating to any policy of insurance of the winding up of an insurance company or in the course of an investigation of the affairs of an insurer it has been found that he has been guilty of or has knowingly participated in or connived at any fraud dishonestly or misrepresentation against an insurer or an insured; (e) that he does not possess the requisite qualifications and practical training for a period not exceeding twelve months, as may be specified by the regulations made by the Authority in this behalf; (f) that he has not passed such examinations as may be specified by the regulations made by the Authority in this behalf; (g) that he violates the code of conduct as may be specified by the regulations made by the Authority. (6) If it be found that an intermediary or an insurance intermediary suffers from any of the foregoing disqualifications, without prejudice to any other penalty to which he may be liable, the Authority shall, and if the intermediary or an insurance intermediary has knowingly contravened any provision of this Act may cancel the licence issued to the intermediary or insurance intermediary under this section. (7) The Authority may issue a duplicate licence to replace a licence lost, destroyed or mutilated, on payment of such fee, as may be determined by the regulations made by the Authority. (8) Any person who acts as an intermediary or an insurance intermediary without holding a licence issued under this section to act as such, shall be punishable with fine, and any insurer or any person who appoints as an intermediary or an insurance intermediary or any person not licensed to act as such or transacts any insurance business in India through any such person, shall be punishable with fine. 21 ----- (9) Where the person contravening sub-section (8) is a company or a firm, then, without prejudice to any other proceedings which may be taken against the company or firm, every director, manager, secretary or other officer of the company, and every partner of the firm who is knowingly a party to such contravention shall be punishable with fine.”. 30. Section 64UA, in sub-section (1), in sub-clause (a), for “Controller of Insurance”, substitute “Chairperson of the Authority”. 31. Section 64UB,— (a) for sub-section (1), substitute the following:— “(1) The Authority may, by notification in the Official Gazette, make regulations to carryout the purposes of this Part.”; (b) in sub-section (2), for “rules”, substitute “regulations”; (c) in sub-section (3), for “Central Government” at both the places where it occur, substitute “Authority”; (d) in sub-section (5), for “Controller of Insurance”, substitute “Chairperson of the Authority”. 32. Section 64UC, in sub-section (1), in proviso, for “the Controller may, with the previous approval of the Central Government”, substitute “the Authority may”. 33. Section 64UD, after sub-section (1), insert the following:— “Provided that the Chairperson of the Authority shall become the Chairman of the Advisory Committee with effect from the commencement of the Insurance Regulatory and Development Authority Act, 1999 and function as such, and any Chairman of the Tariff Committee holding office immediately before such commencement shall cease to be the Chairman.”. 34. Section 64UJ, in sub-section (5), for “Central Government”, wherever it occurs, substitute “Authority”. 35. Section 64UM,— (a) in sub-section (1),— (i) in paragraph (B), after “the Insurance (Amendment) Act, 1968”, insert “but before the commencement of the Insurance Regulatory and Development Authority Act, 1999”; (ii) after paragraph (B), insert the following:— “(BA) Every person who intends to act as a surveyor or loss assessor after the expiry of a period of one year from the commencement of the Insurance Regulatory and Development Authority Act, 1999, shall make an application to the Authority within such time, in such manner and on payment of such fee as may be determined by the regulations made by the Authority: Provided that any licence issued immediately before the commencement of the Insurance Regulatory and Development Authority Act, 1999 shall be deemed to have been issued in accordance with the regulations providing for such licence.”; (iii) in paragraph (C), for “as may be prescribed”, substitute “as may be determined by the regulations”; (iv) in paragraph (D), in clause (i),— (A) for item (a), substitute the following:— “(a) has been in practice as a surveyor or loss assessor on the date of commencement of the Insurance Regulatory and Development Authority Act, 1999, or”; (B) in item (f), for “prescribed”, substitute “specified by the regulations made by the Authority”; 22 ----- (b) after sub-section (1), insert— “(1A) Every surveyor and loss assessor shall comply with the code of conduct in respect of their duties, responsibilities and other professional requirements as may be specified by the regulations made by the Authority.”. 36. Section 64V,— (a) in sub-section (1),— (i) in clause (i), after sub-clause (g), insert the following:— “(h) such other asset or assets as may be specified by the regulations made in this behalf;”; (ii) in clause (ii),— (A) in sub-clause (b), in items (i) and (ii), for “40 per cent.”, substitute “50 per cent.”; (B) after sub-clause (f), insert the following:— “(g) such other liability which may be made in this behalf to be included for the purpose of clause (ii).”; (b) for sub-section (2), substitute the following:— “(2) Every insurer shall furnish to the Authority with his returns under section 15 or section 16, as the case may be, a statement certified by an auditor approved by the Authority in respect of general insurance business, or an actuary approved by the Authority in respect of life insurance business, as the case may be, of his assets and liabilities assessed in the manner required by this section as on the 31st day of March of the preceding year. (3) Every insurer shall value his assets and liabilities in the manner required by this section and in accordance with the regulations which may be made by the Authority in this behalf.”. 37. Section 64VA,— (a) in sub-section (1), for “at all times”, substitute “at all times before the commencement of the Insurance Regulatory and Development Authority Act, 1999”; (b) after sub-section (1), insert the following:— „(1A) Every insurer shall, at all times, on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999, maintain an excess of the value of his assets over the amount of his liabilities of not less than the amount arrived at as follows (hereinafter referred to in this section referred to as the “required solvency margin”), namely:— (i) in the case of an insurer carrying on life insurance business, the required solvency margin shall be the higher of the following amounts— (a) fifty crores of rupees (one hundred crores of rupees in case of re-insurers); or (b) the aggregate sums of the results arrived at in items (I) and (II) stated below:— (I) the aggregate of the results arrived at by applying the calculation described in item (A) below (Step I) and the calculation described in item (B) below (Step II): (A) for Step I— (A. 1) there shall be taken, a sum equal to a percentage determined by the regulations not exceeding five per cent. of the mathematical reserves for direct business and re-insurance acceptances without any deduction for re-insurance cessions; (A. 2) the amount of mathematical reserves at the end of the preceding financial year after the deduction of re-insurance cessions shall be expressed as a 23 ----- percentage of the amount of those mathematical reserves before any such deduction; and (A. 3) the sum mentioned in item (A. 1) above shall be multiplied— (A.3.1) where the percentage arrived at under item (A. 2) above is greater than eighty-five per cent. (or in the case of a re-insurer carrying on exclusive re-insurance business, fifty per cent.), by that greater percentage; and (A.3.2) in any other case, by eighty-five per cent. (or in the case of a re insurer carrying on exclusive re-insurance business, by fifty per cent.); (B) for Step II— (B. 1) there shall be taken, a sum equal to a percentage determined by the regulations made by the Authority not exceeding one per cent. of the sum at risk for the policies on which the sum at risk is not a negative figure, and (B. 2) the amount of sum at risk at the end of the preceding financial year for policies on which the sum at risk is not a negative figure after the deduction of re-insurance cession shall be expressed as a percentage of the amount of that sum at risk before any such deduction, and (B. 3) the sum arrived at under item (B. 1) above shall be multiplied— (B. 3.1) where the percentage arrived at under item (B. 2) above is greater than fifty per cent., by that greater percentage; and (B. 3.2) in any other case, by fifty per cent. (II) a percentage determined by the regulations made by the Authority of the value of assets determined in accordance with the provisions of section 64V; (ii) in the case of an insurer carrying on general insurance business, the required solvency margin, shall be the highest of the following amounts:— (a) fifty crores of rupees (one hundred crores of rupees in case of re-insurer); or (b) a sum equivalent to twenty per cent. of net premium income; or (c) a sum equivalent to thirty per cent. of net incurred claims, subject to credit for re-insurance in computing net premiums and net incurred claims being actual but a percentage, determined by the regulations not exceeding fifty per cent.: Provided that if in respect of any insurer, the Authority is satisfied that either by reason of an unfavourable claim experience or because of sharp increase in the volume of the business, or for any other reason, compliance with the provisions of this sub-section would cause undue hardship to the insurer, the Authority may direct, for such period and subject to such conditions, such solvency margin not being less than the lower of the amount mentioned in sub-clause (i) or sub-clause (ii) above as the case may be. _Explanation.—For the purposes of this sub-section, the expressions—_ (i) “mathematical reserves” means the provision made by an insurer to cover liabilities (excluding liabilities which have fallen due and liabilities arising from deposit back arrangement in relation to any policy whereby an amount is deposited by re-insurer with the cedant) arising under or in connection with policies or contracts for life insurance business. Mathematical reserves also include specific provision for adverse deviations of the bases, such as mortality and morbidity rates, interest rates, and expense rates, and any explicit provisions made, in the valuation of liabilities, in accordance with the regulations made by the Authority for this purpose; (ii) “net incurred claims” means the average of the net incurred claims during the specified period of not exceeding three preceding financial years; 24 ----- (iii) “sum at risk”, in relation to a life insurance policy, means a sum which is— (a) in any case in which an amount is payable in consequence of death other than a case falling within sub-clause (b) below, the amount payable on death, and (b) in any case in which the benefit under the policy in question consists of the making, in consequence of death, of the payments of annuity, payment of a sum by instalments or any other kind of periodic payments, the present value of that benefit, less in either case the mathematical reserves in respect of the relevant policies.'; (c) after sub-section (2), insert the following:— “(2A) If, at any time an insurer does not maintain the required solvency margin in accordance with the provisions of this section, he shall, in accordance with the directions issued by the Authority, submit a financial plan, indicating a plan of action to correct the deficiency to the Authority within a specified period not exceeding three months. (2B) An insurer who has submitted a plan under sub-section (2A) to the Authority shall propose modifications to the plan if the Authority considers it inadequate, and shall give effect to any plan accepted by the Authority as adequate. (2C) An insurer who does not comply with the provisions of sub-section (2A) shall be deemed to be insolvent and may be wound up by the court.”; (d) after sub-section (6), insert the following:— “(7) Every insurer shall furnish to the Authority his returns under section 15 or section 16, as the case may be, in case of life insurance business a statement certified by an actuary approved by the Authority, and in case of general insurance business a statement certified by an auditor approved by the Authority, of the required solvency margin maintained by the insurer in the manner required by sub-section (1A).”. 38. Section 70, in sub-section (1), for “the Controller a certificate of registration”, substitute “the Authority, before the date of commencement of the Insurance Regulatory and Development Authority Act, 1999, a certificate of registration”. 39. Section 95, in sub-section (1), for “In this Part—”, substitute “In this Part, before the date of commencement of the Insurance Regulatory and Development Authority Act, 1999,—”. 40. Section 101A,— (a) in sub-section (1), for “the Central Government”, substitute “the Authority, with the previous approval of the Central Government,”; (b) in sub-section (2), for “the Central Government”, substitute “the Authority”. 41. Section 101B,— (a) in sub-section (1), for “the Central Government”, substitute “the Authority with the previous approval of the Central Government.”; (b) in sub-section (2), for “prescribed”, substitute “determined by the regulations made by the Authority”. 42. For sections 102 to 105, substitute the following:— “102. Penalty for default in complying with, or act in contravention of, this Act.—If any person, who is required under this Act, or rules or regulations made thereunder,— (a) to furnish any document, statement, account, return or report to the Authority, fails to furnish the same; or (b) to comply with the directions, fails to comply with such directions; 25 ----- (c) to maintain solvency margin, fails to maintain such solvency margin; (d) to comply with the directions on the insurance treaties, fails to comply with such directions on the insurance treaties, he shall be liable to a penalty not exceeding five lakh rupees for each such failure and punishable with fine. 103. Penalty for carrying on insurance business in contravention of sections 3, 7 and 98.—If a person makes a statement, or furnishes any document, statement, account, return or report which is false and which he either knows or believes to be false or does not believe to be true,— (a) he shall be liable to a penalty not exceeding five lakh rupees for each such failure; and (b) he shall be punishable with imprisonment which may extend to three years or with fine for each such failure. 104. Penalty for false statement in document.—If a person fails to comply with the provisions of section 27 or section 27A or section 27B or section 27C or section 27D, he shall be liable to a penalty not exceeding five lakh rupees for each such failure. 105. Wrongfully obtaining or withholding property.—If any director, managing director, manager or other officer or employees of an insurer wrongfully obtains possession of any property or wrongfully applies to any purpose of the Act, he shall be liable to a penalty not exceeding two lakh rupees for each such failure. 105A. Offences by companies.—(1) Where any offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate, and includes— (i) a firm; and (ii) an association of persons or a body of individuals whether incorporated or not; and (b) “director”, in relation to— (i) a firm, means a partner in the firm; (ii) an association of persons or a body of individuals, means any member controlling the affairs thereof. 105B. _Penalty for failure to comply with section 32B.—If an insurer fails to comply with the_ provisions of section 32B, he shall be liable to a penalty not exceeding five lakh rupees for each such failure and shall be punishable with imprisonment which may extend to three years or with fine for each such failure. 105C. _Penalty for failure to comply with section 32C.—If an insurer fails to comply with the_ provisions of section 32C, he shall be liable to a penalty not exceeding twenty-five lakh rupees for 26 ----- each such failure and in the case of subsequent and continuing failure, the registration granted to such insurer under section 3 shall be cancelled by the Authority.”. 43. In sections 110A, 110B and 110C, for “Controller” wherever it occurs, substitute “Chairperson of the Authority”. 44. Section 110G, for “Controller” at both the places where it occurs, substitute “Chairperson of the Authority”. 45. Section 110H, in sub-section (1), for “under sections”, substitute “under sections 27D,”. 46. Section 114, in sub-section (2),— (a) after clause (a), insert the following:— “(aa) such other percentage of paid-up equity capital in excess of twenty-six per cent. of the paid-up equity capital and the period within which such excess paid-up equity capital shall be divested under sub-section (1) of section 6AA.”; (b) omit clauses (g) and (ll). 47. After section 114, insert the following:— “114A. Power of Authority to make regulations.—(1) The Authority may, by notification in the Official Gazette, make regulations consistent with this Act and the rules made thereunder, to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the matters including fee relating to the registration of insurers under section 3; (b) the manner of suspension or cancellation of registration under sub-section (5E) of section 3; (c) such fee, not exceeding five thousand rupees, as may be determined by the regulations for issue of a duplicate certificate of registration under sub-section (7) of section 3; (d) the matters relating to the renewal of registration and fee therefor under section 3A; (e) the manner and procedure for divesting excess share capital under sub-section (2) of section 6AA; (f) the preparation of balance-sheet, profit and loss account and a separate account of receipts and payments and revenue account under sub-section (1A) of section 11; (g) the manner in which an abstract of the report of the actuary to be specified under the fourth proviso to sub-section (1) of section 13; (h) the form and manner in which the statement referred to in sub-section (4) of section 13 shall be appended; (i) the time, manner and other conditions of investment of assets held by an insurer under sub-sections (1), (2) and (3) of section 27D; (j) the minimum information to be maintained by insurer in their books, the manner in which such information should be maintained, the checks and other verifications to be adopted by insurers in that connection and all other matters incidental thereto under sub-section (8) of section 33; (k) the manner for making an application, the manner and the fee for issue of a licence to act as an insurance agent under sub-section (1) of section 42; (l) the fee and the additional fee to be determined for renewal of licence of insurance agent under sub-section (3) of section 42; 27 ----- (m) the requisite qualifications and practical training to act as an insurance agent under clause (e) of sub-section (4) of section 42; (n) the passing of examination to act as an insurance agent under clause (f) of sub-section (4) of section 42; (o) the code of conduct under clause (g) of sub-section (4) of section 42; (p) the fee not exceeding rupees fifty for issue of duplicate licence under sub-section (6) of section 42; (q) the manner and the fees for issue of a licence to an intermediary or an insurance intermediary under sub-section (1) of section 42D; (r) the fee and the additional fee to be determined for renewal of licence of intermediaries or insurance intermediaries under sub-section (3) of section 42D; (s) the requisite qualifications and practical training of intermediaries or insurance intermediaries under clause (e) of sub-section (5) of section 42D; (t) the examination to be passed to act as an intermediary or insurance intermediary under clause (f) of sub-section (5) of section 42D; (u) the code of conduct under clause (g) of sub-section (5) of section 42D; (v) the fee for issue of duplicate licence under sub-section (7) of section 42D; (w) such matters as specified under sub-section (2) of section 64UB relating to the Tariff Advisory Committee; (x) the matters relating to licensing of surveyors and loss assessors, their duties, responsibilities and other professional requirements under section 64UM; (y) such other asset or assets as may be specified under clause (h) of sub-section (1) of section 64V for the purposes of ascertaining sufficiency of assets under section 64VA; (z) the valuation of assets and liabilities under sub-section (3) of section 64V; (za) the matters specified under sub-section (1A) of section 64VA relating to sufficiency of assets; (zb) the matters relating to re-insurance under sections 101A and 101B; (zc) the matters relating to redressal of grievances of policy-holders to protect their interest and to regulate, promote and ensure orderly growth of insurance industry; and (zd) any other matter which is to be, or may be, specified by the regulations made by the Authority or in respect of which provision is to be made or may be made by the regulations. (3) Every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.”. 48. Section 116A, for “Central Government”, at both places where they occur, substitute “Central Government, before the date of commencement of the Insurance Regulatory and Development Authority Act, 1999,”. 28 ----- THE SECOND SCHEDULE (See section 31) AMENDMENTS TO THE LIFE INSURANCE CORPORATION ACT, 1956 (31 OF 1956) 1. In the Act, for “Controller” wherever it occurs, substitute “Authority”. 2. After section 30, insert the following:— “30A. Exclusive privilege of Corporation to cease.—Notwithstanding anything contained in this Act, the exclusive privilege of carrying on life insurance business in India by the Corporation shall cease on and from the commencement of the Insurance Regulatory and Development Authority Act, 1999 and the Corporation shall, thereafter, carry on life insurance business in India in accordance with the provisions of the Insurance Act, 1938 (4 of 1938).”. 29 ----- THE THIRD SCHEDULE (See section 32) AMENDMENT TO THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972 (57 OF1972) After section 24, insert the following:— “24A. Exclusive privilege of Corporation and acquiring companies to cease.—Notwithstanding anything contained in this Act, the exclusive privilege of the Corporation and the acquiring companies of carrying on general insurance business in India shall cease on and from the commencement of the Insurance Regulatory and Development Authority Act, 1999 and the Corporation and the acquiring companies shall, thereafter, carry on general insurance business in India in accordance with the provisions of the Insurance Act, 1938 (4 of 1938).” 30 -----
29-Dec-1999
42
The Foreign Exchange Management Act, 1999
https://www.indiacode.nic.in/bitstream/123456789/1988/1/A1999_42.pdf
central
# THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999 _________ # ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, application and commencement. 2. Definitions. CHAPTER II REGULATION AND MANAGEMENT OF FOREIGN EXCHANGE 3. Dealing in foreign exchange, etc. 4. Holding of foreign exchange, etc. 5. Current account transactions. 6. Capital account transactions. 7. Export of goods and services. 8. Realisation and repatriation of foreign exchange. 9. Exemption from realisation and repatriation in certain cases. CHAPTER III AUTHORISED PERSON 10. Authorised person. 11. Reserve Bank’s powers to issue directions to authorised person. 12. Power of Reserve Bank to inspect authorised person. CHAPTER IV CONTRAVENTION AND PENALTIES 13. Penalties. 14. Enforcement of the orders of Adjudicating Authority. 14A. Power of recover arrears of penalty. 15. Power to compound contravention. CHAPTER V ADJUDICATION AND APPEAL 16. Appointment of Adjudicating Authority. 17. Appeal to Special Director (Appeals). 18. Appellate Tribunal. 19. Appeal to Appellate Tribunal. 20. [Omitted.] 21. Qualifications, for appointment of Special Director (Appeals). 22. [Omitted.] 23. Terms and Conditions of service Special Director (Appeals). 24. [Omitted.] ----- SECTIONS 25. [Omitted.] 26. [Omitted.] 27. Staff of Special Director (Appeals). 28. Procedure and powers of Appellate Tribunal and Special Director (Appeals). 29. [Omitted.] 30. [Omitted.] 31. [Omitted.] 32. Right of appellant to take assistance of legal practitioner or chartered accountant and of Government, to appoint presenting officers. 33. Officers and employees etc., to be public servant. 34. Civil court not to have jurisdiction. 35. Appeal to High Court. CHAPTER VI DIRECTORATE OF ENFORCEMENT 36. Directorate of Enforcement. 37. Power of search, seizure, etc. 37A. Special provisions relating to assets held outside India in contravention of section 4. 38. Empowering other officers. CHAPTER VII MISCELLANEOUS 39. Presumption as to documents in certain cases. 40. Suspension of operation of this Act. 41. Power of Central Government to give directions. 42. Contravention by companies. 43. Death or insolvency in certain cases. 44. Bar of legal proceedings. 44A. Powers of Reserve Bank not to apply to International Financial Services Centre. 45. Removal of difficulties. 46. Power to make rules. 47. Power to make regulations. 48. Rules and regulations to be laid before Parliament. 49. Repeal and saving. ----- # THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999 ACT NO. 42 OF 1999 [29th December, 1999.] # An Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. BE it enacted by Parliament in the Fiftieth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, application and commencement.—(1) This Act may be called the Foreign** Exchange Management Act, 1999. (2) It extends to the whole of India. (3) It shall also apply to all branches, offices and agencies outside India owned or controlled by a person resident in India and also to any contravention thereunder committed outside India by any person to whom this Act applies. (4) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Adjudicating Authority” means an officer authorised under sub-section (1) of section 16; 2[(b) “Appellate Tribunal” means the Appellate Tribunal referred to in section 18;] (c) “authorised person” means an authorised dealer, money changer, off-shore banking unit or any other person for the time being authorised under sub-section (1) of section 10 to deal in foreign exchange or foreign securities; 3[(cc) “Authorised Officer” means an officer of the Directorate of Enforcement authorised by the Central Government under section 37A;] (d) “Bench” means a Bench of the Appellate Tribunal; (e) “capital account transaction” means a transaction which alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or assets or liabilities in India of persons resident outside India, and includes transactions referred to in sub-section (3) of section 6; (f) “Chairperson” means the Chairperson of the Appellate Tribunal; (g) “chartered accountant” shall have the meaning assigned to it in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949); 3[(gg) “Competent Authority” means the Authority appointed by the Central Government under sub-section (2) of section 37A;] (h) “currency” includes all currency notes, postal notes, postal orders, money orders, cheques, drafts, travellers cheques, letters of credit, bills of exchange and promissory notes, credit cards or such other similar instruments, as may be notified by the Reserve Bank; 1. 1st June, 2000, _vide notification No. G.S.R. 371(E), dated 1st May, 2000,_ _see Gazette of India, Extraordinary, Part II,_ sec. 3(i). 2. Subs. by Act 7 of 2017, s. 165, for clause (b) (w.e.f. 26-5-2017). 3. Ins. by Act 20 of 2015, s. 138 (w.e.f. 9-9-2015). ----- (i) “currency notes” means and includes cash in the form of coins and bank notes; (j) “current account transaction” means a transaction other than a capital account transaction and without prejudice to the generality of the foregoing such transaction includes,— (i) payments due in connection with foreign trade, other current business, services, and short-term banking and credit facilities in the ordinary course of business, (ii) payments due as interest on loans and as net income from investments, (iii) remittances for living expenses of parents, spouse and children residing abroad, and (iv) expenses in connection with foreign travel, education and medical care of parents, spouse and children; (k) “Director of Enforcement” means the Director of Enforcement appointed under sub-section (1) of section 36; (l) “export”, with its grammatical variations and cognate expressions, means— (i) the taking out of India to a place outside India any goods, (ii) provision of services from India to any person outside India; (m) “foreign currency” means any currency other than Indian currency; (n) “foreign exchange” means foreign currency and includes,— (i) deposits, credits and balances payable in any foreign currency, (ii) drafts, travellers cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency, (iii) drafts, travellers cheques, letters of credit or bills of exchange drawn by banks, institutions or persons outside India, but payable in Indian currency; (o) “foreign security” means any security, in the form of shares, stocks, bonds, debentures or any other instrument denominated or expressed in foreign currency and includes securities expressed in foreign currency, but where redemption or any form of return such as interest or dividends is payable in Indian currency; (p) “import”, with its grammatical variations and cognate expressions, means bringing into India any goods or services; (q) “Indian currency” means currency which is expressed or drawn in Indian rupees but does not include special bank notes and special one rupee notes issued under section 28A of the Reserve Bank of India Act, 1934 (2 of 1934); (r) “legal practitioner” shall have the meaning assigned to it in clause (i) of sub-section (1) of section 2 of the Advocates Act, 1961 (25 of 1961); (s) “Member” means a Member of the Appellate Tribunal and includes the Chairperson thereof; (t) “notify” means to notify in the Official Gazette and the expression “notification” shall be construed accordingly; (u) “person” includes— (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether incorporated or not, (vi) every artificial juridical person, not falling within any of the preceding sub-clauses, and (vii) any agency, office or branch owned or controlled by such person; ----- (v) “person resident in India” means— (i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include— (A) a person who has gone out of India or who stays outside India, in either case— (a) for or on taking up employment outside India, or (b) for carrying on outside India a business or vocation outside India, or (c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period; (B) a person who has come to or stays in India, in either case, otherwise than— (a) for or on taking up employment in India, or (b) for carrying on in India a business or vocation in India, or (c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period; (ii) any person or body corporate registered or incorporated in India, (iii) an office, branch or agency in India owned or controlled by a person resident outside India, (iv) an office, branch or agency outside India owned or controlled by a person resident in India; (w) “person resident outside India” means a person who is not resident in India; (x) “prescribed” means prescribed by rules made under this Act; (y) “repatriate to India” means bringing into India the realised foreign exchange and— (i) the selling of such foreign exchange to an authorised person in India in exchange for rupees, or (ii) the holding of realised amount in an account with an authorised person in India to the extent notified by the Reserve Bank, and includes use of the realised amount for discharge of a debt or liability denominated in foreign exchange and the expression “repatriation” shall be construed accordingly; (z) “Reserve Bank” means the Reserve Bank of India constituted under sub-section (1) of section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); (za) “security” means shares, stocks, bonds and debentures, Government securities as defined in the Public Debt Act, 1944 (18 of 1944), savings certificates to which the Government Savings Certificates Act, 1959 (46 of 1959) applies, deposit receipts in respect of deposits of securities and units of the Unit Trust of India established under sub-section (1) of section 3 of the Unit Trust of India Act, 1963 (52 of 1963)* or of any mutual fund and includes certificates of title to securities, but does not include bills of exchange or promissory notes other than Government promissory notes or any other instruments which may be notified by the Reserve Bank as security for the purposes of this Act; (zb) “service” means service of any description which is made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, medical assistance, legal assistance, chit fund, real estate, transport, processing, supply of electrical or other energy, boarding or lodging or both, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service ; (zc) “Special Director (Appeals)” means an officer appointed under [1][section 17]; (zd) “specify” means to specify by regulations made under this Act and the expression “specified” shall be construed accordingly; 1. Subs. by Act 7 of 2017, s.165, for “section 18” (w.e.f. 26-5-2017). *Now see the Unit Trust of India (transfer of Undertaking of Repeal) Act, 2002 (58 of 2002). ----- (ze) “transfer” includes sale, purchase, exchange, mortgage, pledge, gift, loan or any other form of transfer of right, title, possession or lien. CHAPTER II REGULATION AND MANAGEMENT OF FOREIGN EXCHANGE **3. Dealing in foreign exchange, etc.—Save as otherwise provided in this Act, rules or regulations** made thereunder, or with the general or special permission of the Reserve Bank, no person shall— (a) deal in or transfer any foreign exchange or foreign security to any person not being an authorised person; (b) make any payment to or for the credit of any person resident outside India in any manner; (c) receive otherwise through an authorised person, any payment by order or on behalf of any person resident outside India in any manner. _Explanation.—For the purpose of this clause, where any person in, or resident in, India receives_ any payment by order or on behalf of any person resident outside India through any other person (including an authorised person) without a corresponding inward remittance from any place outside India, then, such person shall be deemed to have received such payment otherwise than through an authorised person; (d) enter into any financial transaction in India as consideration for or in association with acquisition or creation or transfer of a right to acquire, any asset outside India by any person. _Explanation.—For the purpose of this clause, “financial transaction” means making any payment_ to, or for the credit of any person, or receiving any payment for, by order or on behalf of any person, or drawing, issuing or negotiating any bill of exchange or promissory note, or transferring any security or acknowledging any debt. **4. Holding of foreign exchange, etc.—Save as otherwise provided in this Act, no person resident in** India shall acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India. **5. Current account transactions.—Any person may sell or draw foreign exchange to or from an** authorised person if such sale or drawal is a current account transaction: Provided that the Central Government may, in public interest and in consultation with the Reserve Bank, impose such reasonable restrictions for current account transactions as may be prescribed. **6. Capital account transactions.—(1) Subject to the provisions of sub-section (2), any person may** sell or draw foreign exchange to or from an authorised person for a capital account transaction. (2) The Reserve Bank may, in consultation with the Central Government, specify— 1[(a) any class or classes of capital account transactions, involving debt instruments, which are permissible;] (b) the limit up to which foreign exchange shall be admissible for such transactions: 2[(c) any conditions which may be placed on such transactions;] 3[Provided that the Reserve Bank or the Central Government shall not impose any restrictions on the drawal of foreign exchange for payment due on account of amortisation of loans or for depreciation of direct investments in the ordinary course of business.] 1. Subs. by Act 20 of 2015, s. 139, for Clause (a) (w.e.f. 15-10-2019). 2. Ins. by s. 139, ibid. (w.e.f. 15-10-2019). 3. The Proviso subs. by s. 139, ibid. (w.e.f. 15-10-2019). ----- 1[(2A) The Central Government may, in consultation with the Reserve Bank, prescribe— (a) any class or classes of capital account transactions, not involving debt instruments, which are permissible; (b) the limit up to which foreign exchange shall be admissible for such transactions; and (c) any conditions which may be placed on such transactions.] 2* - - - (4) A person resident in India may hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India. (5) A person resident outside India may hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was resident in India or inherited from a person who was resident in India. (6) Without prejudice to the provisions of this section, the Reserve Bank may, by regulation, prohibit, restrict, or regulate establishment in India of a branch, office or other place of business by a person resident outside India, for carrying on any activity relating to such branch, office or other place of business. 3[(7) For the purposes of this section, the term “debt instruments” shall mean, such instruments as may be determined by the Central Government in consultation with the Reserve Bank.] **7. Export of goods and services.—(1) Every exporter of goods shall—** (a) furnish to the Reserve Bank or to such other authority a declaration in such form and in such manner as may be specified, containing true and correct material particulars, including the amount representing the full export value or, if the full export value of the goods is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions, expects to receive on the sale of the goods in a market outside India; (b) furnish to the Reserve Bank such other information as may be required by the Reserve Bank for the purpose of ensuring the realisation of the export proceeds by such exporter. (2) The Reserve Bank may, for the purpose of ensuring that the full export value of the goods or such reduced value of the goods as the Reserve Bank determines, having regard to the prevailing market conditions, is received without any delay, direct any exporter to comply with such requirements as it deems fit. (3) Every exporter of services shall furnish to the Reserve Bank or to such other authorities a declaration in such form and in such manner as may be specified, containing the true and correct material particulars in relation to payment for such services. **8. Realisation and repatriation of foreign exchange.—Save as otherwise provided in this Act,** where any amount of foreign exchange is due or has accrued to any person resident in India, such person shall take all reasonable steps to realise and repatriate to India such foreign exchange within such period and in such manner as may be specified by the Reserve Bank. **9. Exemption from realisation and repatriation in certain cases.—The provisions of sections 4** and 8 shall not apply to the following, namely:— (a) possession of foreign currency or foreign coins by any person up to such limit as the Reserve Bank may specify; 1. Ins. by Act 20 of 2015, s. 139 (w.e.f. 15-10-2019). 2. Sub-section (3) omitted by s. 139, ibid. (w.e.f. 15-10-2019). 3. Ins. by s. 139, ibid. (w.e.f. 15-10-2019). ----- (b) foreign currency account held or operated by such person or class of persons and the limit up to which the Reserve Bank may specify; (c) foreign exchange acquired or received before the 8th day of July, 1947 or any income arising or accruing thereon which is held outside India by any person in pursuance of a general or special permission granted by the Reserve Bank; (d) foreign exchange held by a person resident in India up to such limit as the Reserve Bank may specify, if such foreign exchange was acquired by way of gift or inheritance from a person referred to in clause (c), including any income arising therefrom; (e) foreign exchange acquired from employment, business, trade, vocation, services, honorarium, gifts, inheritance or any other legitimate means up to such limit as the Reserve Bank may specify; and (f) such other receipts in foreign exchange as the Reserve Bank may specify. CHAPTER III AUTHORISED PERSON **10. Authorised person.—(1) The Reserve Bank may, on an application made to it in this behalf,** authorise any person to be known as authorised person to deal in foreign exchange or in foreign securities, as an authorised dealer, money changer or off-shore banking unit or in any other manner as it deems fit. (2) An authorisation under this section shall be in writing and shall be subject to the conditions laid down therein. (3) An authorisation granted under sub-section (1) may be revoked by the Reserve Bank at any time if the Reserve Bank is satisfied that— (a) it is in public interest so to do; or (b) the authorised person has failed to comply with the condition subject to which the authorisation was granted or has contravened any of the provisions of the Act or any rule, regulation, notification, direction or order made thereunder: Provided that no such authorisation shall be revoked on any ground referred to in clause (b) unless the authorised person has been given a reasonable opportunity of making a representation in the matter. (4) An authorised person shall, in all his dealings in foreign exchange or foreign security, comply with such general or special directions or orders as the Reserve Bank may, from time to time, think fit to give, and, except with the previous permission of the Reserve Bank, an authorised person shall not engage in any transaction involving any foreign exchange or foreign security which is not in conformity with the terms of his authorisation under this section. (5) An authorised person shall, before undertaking any transaction in foreign exchange on behalf of any person, require that person to make such declaration and to give such information as will reasonably satisfy him that the transaction will not involve, and is not designed for the purpose of any contravention or evasion of the provisions of this Act or of any rule, regulation, notification, direction or order made thereunder, and where the said person refuses to comply with any such requirement or makes only unsatisfactory compliance therewith, the authorised person shall refuse in writing to undertake the transaction and shall, if he has reason to believe that any such contravention or evasion as aforesaid is contemplated by the person, report the matter to the Reserve Bank. (6) Any person, other than an authorised person, who has acquired or purchased foreign exchange for any purpose mentioned in the declaration made by him to authorised person under sub-section (5) does not use it for such purpose or does not surrender it to authorised person within the specified period or uses the foreign exchange so acquired or purchased for any other purpose for which purchase or acquisition of foreign exchange is not permissible under the provisions of the Act or the rules or regulations or direction ----- or order made thereunder shall be deemed to have committed contravention of the provisions of the Act for the purpose of this section. **11. Reserve Bank’s powers to issue directions to authorised person.—(1) The Reserve Bank may,** for the purpose of securing compliance with the provisions of this Act and of any rules, regulations, notifications or directions made thereunder, give to the authorised persons any direction in regard to making of payment or the doing or desist from doing any act relating to foreign exchange or foreign security. (2) The Reserve Bank may, for the purpose of ensuring the compliance with the provisions of this Act or of any rule, regulation, notification, direction or order made thereunder, direct any authorised person to furnish such information, in such manner, as it deems fit. (3) Where any authorised person contravenes any direction given by the Reserve Bank under this Act or fails to file any return as directed by the Reserve Bank, the Reserve Bank may, after giving reasonable opportunity of being heard, impose on the authorised person a penalty which may extend to ten thousand rupees and in the case of continuing contravention with an additional penalty which may extend to two thousand rupees for every day during which such contravention continues. **12. Power of Reserve Bank to inspect authorised person.—(1) The Reserve Bank may, at any** time, cause an inspection to be made, by any officer of the Reserve Bank specially authorised in writing by the Reserve Bank in this behalf, of the business of any authorised person as may appear to it to be necessary or expedient for the purpose of— (a) verifying the correctness of any statement, information or particulars furnished to the Reserve Bank; (b) obtaining any information or particulars which such authorised person has failed to furnish on being called upon to do so; (c) securing compliance with the provisions of this Act or of any rules, regulations, directions or orders made thereunder. (2) It shall be the duty of every authorised person, and where such person is a company or a firm, every director, partner or other officer of such company or firm, as the case may be, to produce to any officer making an inspection under sub-section (1), such books, accounts and other documents in his custody or power and to furnish any statement or information relating to the affairs of such person, company or firm as the said officer may require within such time and in such manner as the said officer may direct. CHAPTER IV CONTRAVENTION AND PENALTIES **13. Penalties.—(1) If any person contravenes any provision of this Act, or contravenes any rule,** regulation, notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject to which an authorisation is issued by the Reserve Bank, he shall, upon adjudication, be liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable, or up to two lakh rupees where the amount is not quantifiable, and where such contravention is a continuing one, further penalty which may extend to five thousand rupees for every day after the first day during which the contravention continues. 1[(1A) If any person is found to have acquired any foreign exchange, foreign security or immovable property, situated outside India, of the aggregate value exceeding the threshold prescribed under the proviso to sub-section (1) of section 37A, he shall be liable to a penalty up to three times the sum involved in such contravention and confiscation of the value equivalent, situated in India, the Foreign exchange, foreign security or immovable property. 1. Ins. by Act 20 of 2015, s. 140 (w.e.f. 9-9-2015). ----- (1B) If the Adjudicating Authority, in a proceeding under sub-section (1A) deems fits, he may, after recording the reasons in writing, recommend for the initiation of prosecution and if the Director of Enforcement is satisfied, he may, after recording the reasons in writing, may direct prosecution by filing a Criminal Complaint against the guilty person by an officer not below the rank of Assistant Director. (1C) If any person is found to have acquired any foreign exchange, foreign security or immovable property, situated outside India, of the aggregate value exceeding the threshold prescribed under the proviso to sub-section (1) of section 37A, he shall be, in addition to the penalty imposed under sub-section (1A), punishable with imprisonment for a term which may extend to five years and with fine. (1D) No court shall take cognizance of an offence under sub-section (1C) of section 13 except as on complaint in writing by an officer not below the rank of Assistant Director referred to in sub-section (1B).] (2) Any Adjudicating Authority adjudging any contravention under sub-section (1), may, if he thinks fit in addition to any penalty which he may impose for such contravention direct that any currency, security or any other money or property in respect of which the contravention has taken place shall be confiscated to the Central Government and further direct that the foreign exchange holdings, if any, of the persons committing the contraventions or any part thereof, shall be brought back into India or shall be retained outside India in accordance with the directions made in this behalf. _Explanation.—For the purposes of this sub-section, “property” in respect of which contravention has_ taken place, shall include— (a) deposits in a bank, where the said property is converted into such deposits; (b) Indian currency, where the said property is converted into that currency; and (c) any other property which has resulted out of the conversion of that property. **14. Enforcement of the orders of Adjudicating Authority.—(1) Subject to the provisions of** sub-section (2) of section 19, if any person fails to make full payment of the penalty imposed on him under section 13 within a period of ninety days from the date on which the notice for payment of such penalty is served on him, he shall be liable to civil imprisonment under this section. (2) No order for the arrest and detention in civil prison of a defaulter shall be made unless the Adjudicating Authority has issued and served a notice upon the defaulter calling upon him to appear before him on the date specified in the notice and to show cause why he should not be committed to the civil prison, and unless the Adjudicating Authority, for reasons in writing, is satisfied— (a) that the defaulter, with the object or effect of obstructing the recovery of penalty, has after the issue of notice by the Adjudicating Authority, dishonestly transferred, concealed, or removed any part of his property, or (b) that the defaulter has, or has had since the issuing of notice by the Adjudicating Authority, the means to pay the arrears or some substantial part thereof and refuses or neglects or has refused or neglected to pay the same. (3) Notwithstanding anything contained in sub-section (1), a warrant for the arrest of the defaulter may be issued by the Adjudicating Authority if the Adjudicating Authority is satisfied, by affidavit or otherwise, that with the object or effect of delaying the execution of the certificate the defaulter is likely to abscond or leave the local limits of the jurisdiction of the Adjudicating Authority. (4) Where appearance is not made pursuant to a notice issued and served under sub-section (1), the Adjudicating Authority may issue a warrant for the arrest of the defaulter. (5) A warrant of arrest issued by the Adjudicating Authority under sub-section (3) or sub-section (4) may also be executed by any other Adjudicating Authority within whose jurisdiction the defaulter may for the time being be found. (6) Every person arrested in pursuance of a warrant of arrest under this section shall be brought before the Adjudicating Authority issuing the warrant as soon as practicable and in any event within twenty-four hours of his arrest (exclusive of the time required for the journey): ----- Provided that, if the defaulter pays the amount entered in the warrant of arrest as due and the costs of the arrest to the officer arresting him, such officer shall at once release him. _Explanation.—For the purposes of this sub-section, where the defaulter is a Hindu undivided family,_ the karta thereof shall be deemed to be the defaulter. (7) When a defaulter appears before the Adjudicating Authority pursuant to a notice to show cause or is brought before the Adjudicating Authority under this section, the Adjudicating Authority shall give the defaulter an opportunity showing cause why he should not be committed to the civil prison. (8) Pending the conclusion of the inquiry, the Adjudicating Authority may, in his discretion, order the defaulter to be detained in the custody of such officer as the Adjudicating Authority may think fit or release him on his furnishing the security to the satisfaction of the Adjudicating Authority for his appearance as and when required. (9) Upon the conclusion of the inquiry, the Adjudicating Authority may make an order for the detention of the defaulter in the civil prison and shall in that event cause him to be arrested if he is not already under arrest: Provided that in order to give a defaulter an opportunity of satisfying the arrears, the Adjudicating Authority may, before making the order of detention, leave the defaulter in the custody of the officer arresting him or of any other officer for a specified period not exceeding fifteen days, or release him on his furnishing security to the satisfaction of the Adjudicating Authority for his appearance at the expiration of the specified period if the arrears are not satisfied. (10) When the Adjudicating Authority does not make an order of detention under sub-section (9), he shall, if the defaulter is under arrest, direct his release. (11) Every person detained in the civil prison in execution of the certificate may be so detained,— (a) where the certificate is for a demand of an amount exceeding rupees one crore, up to three years, and (b) in any other case, up to six months: Provided that he shall be released from such detention on the amount mentioned in the warrant for his detention being paid to the officer-in-charge of the civil prison. (12) A defaulter released from detention under this section shall not, merely by reason of his release, be discharged from his liability for the arrears, but he shall not be liable to be arrested under the certificate in execution of which he was detained in the civil prison. (13) A detention order may be executed at any place in India in the manner provided for the execution of warrant of arrest under the Code of Criminal Procedure, 1973 (2 of 1974). **1[14A. Power of recover arrears of penalty.—(1) Save as otherwise provided in this Act, the** Adjudicating Authority may, by order in writing, authorise an officer of Enforcement not below the rank of Assistant Director to recover any arrears of penalty from any person who fails to make full payment of penalty imposed on him under section 13 within the period of ninety days from the date on which the notice for payment of such penalty is served on him. (2) The officer referred to in sub-section (1) shall exercise all the like powers which are conferred on the income-tax authority in relation to recovery of tax under the Income-tax Act, 1961 (43 of 1961) and the procedure laid down under the Second Schedule to the said Act shall _mutatis mutandis apply in_ relation to recovery of arrears of penalty under this Act.] **15. Power to compound contravention.—(1) Any contravention under section 13 may, on an** application made by the person committing such contravention, be compounded within one hundred and eighty days from the date of receipt of application by the Director of Enforcement or such other officers of the Directorate of Enforcement and officers of the Reserve Bank as may be authorised in this behalf by the Central Government in such manner as may be prescribed. 1. Section 14A shall stand inserted (date to be notified) by Act 28 of 2016, s. 229. ----- (2) Where a contravention has been compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be initiated or continued, as the case may be, against the person committing such contravention under that section, in respect of the contravention so compounded. CHAPTER V ADJUDICATION AND APPEAL **16. Appointment of Adjudicating Authority.—(1) For the purpose of adjudication under** section 13, the Central Government may, by an order published in the Official Gazette, appoint as many officers of the Central Government as it may think fit, as the Adjudicating Authorities for holding an inquiry in the manner prescribed after giving the person alleged to have committed contravention under section 13, against whom a complaint has been made under sub-section (3) (hereinafter in this section referred to as the said person) a reasonable opportunity of being heard for the purpose of imposing any penalty: Provided that where the Adjudicating Authority is of opinion that the said person is likely to abscond or is likely to evade in any manner, the payment of penalty, if levied, it may direct the said person to furnish a bond or guarantee for such amount and subject to such conditions as it may deem fit. (2) The Central Government shall, while appointing the Adjudicating Authorities under sub-section (1), also specify in the order published in the Official Gazette, their respective jurisdictions. (3) No Adjudicating Authority shall hold an enquiry under sub-section (1) except upon a complaint in writing made by any officer authorised by a general or special order by the Central Government. (4) The said person may appear either in person or take the assistance of a legal practitioner or a chartered accountant of his choice for presenting his case before the Adjudicating Authority. (5) Every Adjudicating Authority shall have the same powers of a civil court which are conferred on the Appellate Tribunal under sub-section (2) of section 28 and— (a) all proceedings before it shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860); (b) shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). (6) Every Adjudicating Authority shall deal with the complaint under sub-section (2) as expeditiously as possible and endeavour shall be made to dispose of the complaint finally within one year from the date of receipt of the complaint: Provided that where the complaint cannot be disposed of within the said period, the Adjudicating Authority shall record periodically the reasons in writing for not disposing of the complaint within the said period. **17. Appeal to Special Director (Appeals).—(1) The Central Government shall, by notification,** appoint one or more Special Directors (Appeals) to hear appeals against the orders of the Adjudicating Authorities under this section and shall also specify in the said notification the matter and places in relation to which the Special Director (Appeals) may exercise jurisdiction. (2) Any person aggrieved by an order made by the Adjudicating Authority, being an Assistant Director of Enforcement or a Deputy Director of Enforcement, may prefer an appeal to the Special Director (Appeals). (3) Every appeal under sub-section (1) shall be filed within forty-five days from the date on which the copy of the order made by the Adjudicating Authority is received by the aggrieved person and it shall be in such form, verified in such manner and be accompanied by such fee as may be prescribed: Provided that the Special Director (Appeals) may entertain an appeal after the expiry of the said period of forty-five days, if he is satisfied that there was sufficient cause for not filing it within that period. (4) On receipt of an appeal under sub-section (1), the Special Director (Appeals) may after giving the parties to the appeal an opportunity of being heard, pass such order thereon as he thinks fit, confirming, modifying or setting aside the order appealed against. ----- (5) The Special Director (Appeals) shall send a copy of every order made by him to the parties to appeal and to the concerned Adjudicating Authority. (6) The Special Director (Appeals) shall have the same powers of a civil court which are conferred on the Appellate Tribunal under sub-section (2) of section 28 and— (a) all proceedings before him shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860); (b) shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). 1[18. Appellate Tribunal.—The Appellate Tribunal constituted under sub-section (1) of section 12 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976), shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.] **19. Appeal to Appellate Tribunal—(1) Save as provided in sub-section (2), the Central Government** or any person aggrieved by an order made by an Adjudicating Authority, other than those referred to in sub-section (1) of section 17, or the Special Director (Appeals), may prefer an appeal to the Appellate Tribunal: Provided that any person appealing against the order of the Adjudicating Authority or the Special Director (Appeals) levying any penalty, shall while filing the appeal, deposit the amount of such penalty with such authority as may be notified by the Central Government: Provided further that where in any particular case, the Appellate Tribunal is of the opinion that the deposit of such penalty would cause undue hardship to such person, the Appellate Tribunal may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation of penalty. (2) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order made by the Adjudicating Authority or the Special Director (Appeals) is received by the aggrieved person or by the Central Government and it shall be in such form, verified in such manner and be accompanied by such fee as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned Adjudicating Authority or the Special Director (Appeals), as the case may be. (5) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within one hundred and eighty days from the date of receipt of the appeal: Provided that where any appeal could not be disposed of within the said period of one hundred and eighty days, the Appellate Tribunal shall record its reasons in writing for not disposing off the appeal within the said period. (6) The Appellate Tribunal may, for the purpose of examining the legality, propriety or correctness of any order made by the Adjudicating Authority under section 16 in relation to any proceeding, on its own motion or otherwise, call for the records of such proceedings and make such order in the case as it thinks fit. **20. [Composition of Appellate Tribunal.]** _Omitted by the finance Act, 2017 (7_ _of 2017),_ _s. 165_ (w.e.f. 26-5-2017). 1. Subs. by Act 7 of 2017, s. 165, for section 18 (w.e.f. 26-5-2017). ----- [1][21. Qualifications, for appointment of Special Director (Appeals).—A person shall not be qualified for appointment as a Special Director (Appeals) unless he— (a) has been a member of the Indian Legal Service and has held a post in Grade I of that Service; or (b) has been a member of the Indian Revenue Service and has held a post equivalent to a Joint Secretary to the Government of India.] **22. [Term of office.] Omitted** _by the Finance Act, 2017 (7 of 2017), s. 165 (w.e.f. 26-5-2017)._ 2[23. Terms and Condition of service of Special Director of (Appeals).—The salary and allowances payable to and the other terms and conditions of service of the Special Director (Appeals) shall be such as may be prescribed.] **24. [Vacancies.] Omitted by the Finance Act, 2017 (7 of 2017), s. 165 (w.e.f. 26-5-2017).** **25. [Resignation and removal.] Omitted by** _s. 165, ibid. (w.e.f. 26-5-2017)._ **26. [Member to act as Chairperson in certain circumstances.]** _Omitted by_ _s. 165,_ _ibid._ (w.e.f. 26-5-2017). 3[27. **Staff of Special Director (Appeal).—(1) The Central Government shall provide the office of** the Special Director (Appeals) with such officers and employees as it may deem fit. (2) The officers and employees of the office of the Special Director (Appeals) shall discharge their functions under the general superintendence of the Special Director (Appeals). (3) The salaries and allowances and other terms and conditions of service of the officers and employees of the office of the Special Director (Appeals) shall be such as may be prescribed.] **28. Procedure and powers of Appellate Tribunal and Special Director (Appeals).—(1) The** Appellate Tribunal and the Special Director (Appeals) shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Appellate Tribunal and the Special Director (Appeals) shall have powers to regulate its own procedure. (2) The Appellate Tribunal and the Special Director (Appeals) shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing a representation of default or deciding it ex parte; (h) setting aside any order of dismissal of any representation for default or any order passed by it _ex parte; and_ (i) any other matter which may be prescribed by the Central Government. (3) An order made by the Appellate Tribunal or the Special Director (Appeals) under this Act shall be executable by the Appellate Tribunal or the Special Director (Appeals) as a decree of civil court and, for 1. Subs. by Act 7 of 2017, s. 165, for section 21 (w.e.f. 26-5-2017). 2. Subs. by s. 165, ibid., for section 23 (w.e.f. 26-5-2017). 3. Subs. by s. 165, ibid., for section 27 (w.e.f. 26-5-2017). ----- this purpose, the Appellate Tribunal and the Special Director (Appeals) shall have all the powers of a civil court. (4) Notwithstanding anything contained in sub-section (3), the Appellate Tribunal or the Special Director (Appeals) may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that court. (5) All proceedings before the Appellate Tribunal and the Special Director (Appeals) shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Appellate Tribunal shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). **29. [Distribution of business amongst Benches.] Omitted by the Finance Act, 2017 (7** _of 2017),_ _s. 165 (w.e.f. 26-5-2017)._ **30. [Power of Chairperson to transfer cases.] Omitted by s. 165, ibid. (w.e.f. 26-5-2017).** **31. [Decision to be by majority.] Omitted by** _s. 165, ibid. (w.e.f. 26-5-2017)._ **32. Right of appellant to take assistance of legal practitioner or chartered accountant and of** **Government, to appoint presenting officers.—(1) A person preferring an appeal to the** [1][Special Director (Appeals)] under this Act may either appear in person or take the assistance of a legal practitioner or a chartered accountant of his choice to present his case before the [2][Special Director (Appeals)]. (2) The Central Government may authorise one or more legal practitioners or chartered accountants or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the [2][Special Director (Appeals)]. 3[33. Officers and employees etc., to be public servant. — The Adjudicating Authority, Competent Authority and the Special Director (Appeals) and other officers and employees of the Special Director (Appeals) shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860).] **34. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which an Adjudicating Authority or the Appellate Tribunal or the Special Director (Appeals) is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **35. Appeal to High Court.—Any person aggrieved by any decision or order of the Appellate** Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal to him on any question of law arising out of such order: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. _Explanation.—In this section “High Court” means—_ (a) the High Court within the jurisdiction of which the aggrieved party ordinarily resides or carries on business or personally works for gain; and 1. Subs by Act 7 of 2017, s. 165, for “Appellate Tribunal or the Special Director (Appeals” (w.e.f. 26-5-2017). 2. Subs. by s. 165, ibid., for “Appellate Tribunal or the Special Director (Appeals), as the case may be” (w.e.f. 26-5-2017). 3. Subs. by s. 165, ibid., for section 33 (w.e.f. 26-5-2017). ----- (b) where the Central Government is the aggrieved party, the High Court within the jurisdiction of which the respondent, or in a case where there are more than one respondent, any of the respondents, ordinarily resides or carries on business or personally works for gain. CHAPTER VI DIRECTORATE OF ENFORCEMENT **36. Directorate of Enforcement.—(1) The Central Government shall establish a Directorate of** Enforcement with a Director and such other officers or class of officers as it thinks fit, who shall be called officers of Enforcement, for the purposes of this Act. (2) Without prejudice to the provisions of sub-section (1), the Central Government may authorise the Director of Enforcement or an Additional Director of Enforcement or a Special Director of Enforcement or a Deputy Director of Enforcement to appoint officers of Enforcement below the rank of an Assistant Director of Enforcement. (3) Subject to such conditions and limitations as the Central Government may impose, an officer of Enforcement may exercise the powers and discharge the duties conferred or imposed on him under this Act. **37. Power of search, seizure, etc.—(1) The Director of Enforcement and other officers of** Enforcement, not below the rank of an Assistant Director, shall take up for investigation the contravention referred to in section 13. (2) Without prejudice to the provisions of sub-section (1), the Central Government may also, by notification, authorise any officer or class of officers in the Central Government, State Government or the Reserve Bank, not below the rank of an Under Secretary to the Government of India to investigate any contravention referred to in section 13. (3) The officers referred to in sub-section (1) shall exercise the like powers which are conferred on income-tax authorities under the Income-tax Act, 1961 (43 of 1961) and shall exercise such powers, subject to such limitations laid down under that Act. **1[37A. Special provisions relating to assets held outside India in contravention of** **section 4.—(1) Upon receipt of any information or otherwise, if the Authorised Officer prescribed by the** Central Government has reason to believe that any foreign exchange, foreign security, or any immovable property, situated outside India, is suspected to have been held in contravention of section 4, he may after recording the reasons in writing, by an order, seize value equivalent, situated within India, of such foreign exchange, foreign security or immovable property: Provided that no such seizure shall be made in case where the aggregate value of such foreign exchange, foreign security or any immovable property, situated outside India, is less than the value as may be prescribed. (2) The order of seizure along with relevant material shall be placed before the Competent Authority, appointed by the Central Government, who shall be an officer not below the rank of Joint Secretary to the Government of India by the Authorised Officer within a period of thirty days from the date of such seizure. (3) The Competent Authority shall dispose of the petition within a period of one hundred eighty days from the date of seizure by either confirming or by setting aside such order, after giving an opportunity of being heard to the representatives of the Directorate of Enforcement and the aggrieved person. _Explanation.—While computing the period of one hundred eighty days, the period of stay granted by_ court shall be excluded and a further period of at least thirty days shall be granted from the date of communication of vacation of such stay order. (4) The order of the Competent Authority confirming seizure of equivalent asset shall continue till the disposal of adjudication proceedings and thereafter, the Adjudicating Authority shall pass appropriate directions in the adjudication order with regard to further action as regards the seizure made under sub-section (1): 1. Ins. by Act 20 of 2015, s. 142 (w.e.f. 9-9-2015). ----- Provided that if, at any stage of the proceedings under this Act, the aggrieved person discloses the fact of such foreign exchange, foreign security or immovable property and brings back the same into India, then the Competent Authority or the Adjudicating Authority, as the case may be, on receipt of an application in this regard from the aggrieved person, and after affording an opportunity of being heard to the aggrieved person and representatives of the Directorate of Enforcement, shall pass an appropriate order as it deems fit, including setting aside of the seizure made under sub-section (1). (5) Any person aggrieved by any order passed by the Competent Authority may prefer an appeal to the Appellate Tribunal. (6) Nothing contained in section 15 shall apply to this section.] **38. Empowering other officers.—(1) The Central Government may, by order and subject to such** conditions and limitations as it thinks fit to impose, authorise any officer of customs or any central excise officer or any police officer or any other officer of the Central Government or a State Government to exercise such of the powers and discharge such of the duties of the Director of Enforcement or any other officer of Enforcement under this Act as may be stated in the order. (2) The officers referred to in sub-section (1) shall exercise the like powers which are conferred on the income-tax authorities under the Income-tax Act, 1961 (43 of 1961), subject to such conditions and limitations as the Central Government may impose. CHAPTER VII MISCELLANEOUS **39. Presumption as to documents in certain cases.—Where any document—** (i) is produced or furnished by any person or has been seized from the custody or control of any person, in either case, under this Act or under any other law; or (ii) has been received from any place outside India (duly authenticated by such authority or person and in such manner as may be prescribed) in the course of investigation of any contravention under this Act alleged to have been committed by any person, and such document is tendered in any proceeding under this Act in evidence against him, or against him and any other person who is proceeded against jointly with him, the court or the Adjudicating Authority, as the case may be, shall— (a) presume, unless the contrary is proved, that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the court may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person’s handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested; (b) admit the document in evidence notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence; (c) in a case falling under clause (i), also presume, unless the contrary is proved, the truth of the contents of such document. **40. Suspension of operation of this Act.—(1) If the Central Government is satisfied that** circumstances have arisen rendering it necessary that any permission granted or restriction imposed by this Act should cease to be granted or imposed, or if it considers necessary or expedient so to do in public interest, the Central Government may, by notification, suspend or relax to such extent either indefinitely or for such period as may be notified, the operation of all or any of the provisions of this Act. (2) Where the operation of any provision of this Act has under sub-section (1) been suspended or relaxed indefinitely, such suspension or relaxation may, at any time while this Act remains in force, be removed by the Central Government by notification. (3) Every notification issued under this section shall be laid, as soon as may be after it is issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session ----- immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or both Houses agree that the notification should not be issued, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification. **41. Power of Central Government to give directions.—For the purposes of this Act, the Central** Government may, from time to time, give to the Reserve Bank such general or special directions as it thinks fit, and the Reserve Bank shall, in the discharge of its functions under this Act, comply with any such directions. **42. Contravention by companies.—(1) Where a person committing a contravention of any of the** provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised due diligence to prevent such contravention. (2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section—_ (i) “company” means any body corporate and includes a firm or other association of individuals; and (ii) “director”, in relation to a firm, means a partner in the firm. **43. Death or insolvency in certain cases.—Any right, obligation, liability, proceeding or appeal** arising in relation to the provisions of section 13 shall not abate by reason of death or insolvency of the person liable under that section and upon such death or insolvency such rights and obligations shall devolve on the legal representative of such person or the official receiver or the official assignee, as the case may be: Provided that a legal representative of the deceased shall be liable only to the extent of the inheritance or estate of the deceased. **44. Bar of legal proceedings.—No suit, prosecution or other legal proceeding shall lie against the** Central Government or the Reserve Bank or any officer of that Government or of the Reserve Bank or any other person exercising any power or discharging any functions or performing any duties under this Act, for anything in good faith done or intended to be done under this Act or any rule, regulation, notification, direction or order made thereunder. 1[44A. Powers of Reserve Bank not to apply to International Financial Services Centre.— Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Reserve Bank under this Act,— (a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 of 2005); (b) shall be exercisable by the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, in so far as regulation of financial products, financial services and financial institutions that are permitted in the International Financial Services Centres are concerned.] 1. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). ----- **45. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act,** the Central Government may, by order, do anything not inconsistent with the provisions of this Act for the purpose of removing the difficulty: Provided that no such order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **46. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may provide for,— (a) the imposition of reasonable restrictions on current account transactions under section 5; 1[(aa) the instruments which are determined to be debt instruments under sub-section (7) of section 6; (ab) the permissible classes of capital account transactions in accordance with sub-section (2A) of section 6, the limits of admissibility of foreign exchange, and the prohibition, restriction or regulation of such transactions;] (b) the manner in which the contravention may be compounded under sub-section (1) of section 15; (c) the manner of holding an inquiry by the Adjudicating Authority under sub-section (1) of section 16; (d) the form of appeal and fee for filing such appeal under sections 17 and 19; (e) the salary and allowances payable to and the other terms and conditions of service of the 2[Special Director (Appeals)] under section 23; (f) the salaries and allowances and other conditions of service of the officers and employees of the 3[office of the Special Director (Appeals)] under sub-section (3) of section 27; (g) the additional matters in respect of which the Appellate Tribunal and the Special Director (Appeals) may exercise the powers of a civil court under clause (i) of sub-section (2) of section 28; 4[(gg) the aggregate value of foreign exchange referred to in sub-section (1) of section 37A;] (h) the authority or person and the manner in which any document may be authenticated under clause (ii) of section 39; and (i) any other matter which is required to be, or may be, prescribed. **47. Power to make regulations.—(1) The Reserve Bank may, by notification, make regulations to** carry out the provisions of this Act and the rules made thereunder. (2) Without prejudice to the generality of the foregoing power, such regulations may provide for,— 5[(a) the permissible classes of capital account transactions involving debt instruments determined under sub-section (7) of section 6, the limits of admissibility of foreign exchange for such transactions, and the prohibition, restriction or regulation of such capital account transactions under section 6;] (b) the manner and the form in which the declaration is to be furnished under clause (a) of sub-section (1) of section 7; 1. Ins. by Act 20 of 2015, s. 143 (w.e.f. 15-10-2019). 2. Subs. by Act 7 of 2017, s. 165, for “Chairperson and other Member of the Appellate Tribunal and the Special Director (Appeals) (w.e.f. 26-5-2017). 3. Subs. by s. 165, ibid., for “Appellate Tribunal and the office of the Special Director (Appeals)” (w.e.f. 26-5-2017). 4. Ins. by Act 20 of 2015, s. 143 (w.e.f. 15-10-2019). 5. Subs. by s. 144, ibid., for clause (a) (w.e.f. 15-10-2019). ----- (c) the period within which and the manner of repatriation of foreign exchange under section 8; (d) the limit up to which any person may possess foreign currency or foreign coins under clause (a) of section 9; (e) the class of persons and the limit up to which foreign currency account may be held or operated under clause (b) of section 9; (f) the limit up to which foreign exchange acquired may be exempted under clause (d) of section 9; (g) the limit up to which foreign exchange acquired may be retained under clause (e) of section 9; 1[(ga) export, import or holding of currency or currency notes;] (h) any other matter which is required to be, or may be, specified. 2[(3) All regulations made by the Reserve Bank before the date on which the provisions of this section are notified under section 6 and section 47 of this Act on capital account transactions, the regulation making power in respect of which now vests with the Central Government, shall continue to be valid, until amended or rescinded by the Central Government.] **48. Rules and regulations to be laid before Parliament.—Every rule and regulation made under this** Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **49. Repeal and saving.—(1) The Foreign Exchange Regulation Act, 1973 (46 of 1973) is hereby** repealed and the Appellate Board constituted under sub-section (1) of section 52 of the said Act (hereinafter referred to as the repealed Act) shall stand dissolved. (2) On the dissolution of the said Appellate Board, the person appointed as Chairman of the Appellate Board and every other person appointed as Member and holding office as such immediately before such date shall vacate their respective offices and no such Chairman or other person shall be entitled to claim any compensation for the premature termination of the term of his office or of any contract of service. (3) Notwithstanding anything contained in any other law for the time being in force, no court shall take cognizance of an offence under the repealed Act and no adjudicating officer shall take notice of any contravention under section 51 of the repealed Act after the expiry of a period of two years from the date of the commencement of this Act. (4) Subject to the provisions of sub-section (3) all offences committed under the repealed Act shall continue to be governed by the provisions of the repealed Act as if that Act had not been repealed. (5) Notwithstanding such repeal,— (a) anything done or any action taken or purported to have been done or taken including any rule, notification, inspection, order or notice made or issued or any appointment, confirmation or declaration made or any license, permission, authorization or exemption granted or any document or instrument executed or any direction given under the Act hereby repealed shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act; (b) any appeal preferred to the Appellate Board under sub-section (2) of section 52 of the repealed Act but not disposed of before the commencement of this Act shall stand transferred to and shall disposed of by the Appellate Tribunal constituted under this Act; 1. Ins. by Act 20 of 2015, s. 144 (w.e.f. 15-10-2019). 2. Ins. by s. 144. ibid. (w.e.f. 15-10-2019). ----- (c) every appeal from any decision or order of the Appellate Board under sub-section (3) or sub-section (4) of section 52 of the repealed Act shall, if not filed before the commencement of this Act, be filled before the High Court within a period of sixty days of such commencement: Provided that the High Court may entertain such appeal after the expiry of the said period of sixty days if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period. (6) Save as otherwise provided in sub-section (3), the mention of particular matters in sub-sections (2), (4) and (5) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal. -----
30-Dec-1999
44
The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999
https://www.indiacode.nic.in/bitstream/123456789/1951/1/A1999_44.pdf
central
# THE NATIONAL TRUST FOR WELFARE OF PERSONS WITH AUTISM, CEREBRAL PALSY, MENTAL RETARDATION AND MULTIPLE DISABILITIES ACT, 1999 ARRANGEMENT OF SECTIONS CHAPTER I PRELIMINARY SECTIONS 1. Short title and extent. 2. Definitions. CHAPTERII THE NATIONAL TRUST FOR WELFARE OF PERSONS WITH AUTISM, CEREBRAL PALSY, MENTAL RETARDATION AND MULTIPLE DISABILITY 3. Constitution of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability, etc. 4. Term of office of Chairperson and Members, meeting of Board, etc. 5. Resignation of Chairperson and Members. 6. Disqualifications. 7. Vacation of office by Members. 8. Chief Executive Officer and staff of Trust. 9. Vacancies in Board not to invalidate acts, etc. CHAPTER III OBJECTS OF THETRUST 10. Objects of Trust. CHAPTER IV POWERS AND DUTIES OF THE BOARD 11. Powers and duties of Board. CHAPTER V PROCEDURE FOR REGISTRATION 12. Procedure for registration. CHAPTER VI LOCAL LEVEL COMMITTEES 13. Constitution of local level committees. 14. Appointment for guardianship. 15. Duties of guardian. 16. Guardian to furnish inventory and annual accounts. 17. Removal of guardian. CHAPTER VII ACCOUNTABILITY AND MONITORING 18. Accountability. 19. Monitoring. 20. Annual general meeting. ----- CHAPTER VIII FINANCE, ACCOUNTS AND AUDIT SECTIONS 21. Grants by the Central Government. 22. Fund. 23. Budget. 24. Accounts and audit. 25. Annual report. 26. Authentication of orders, etc. 27. Returns and information. CHAPTER IX MISCELLANEOUS 28. Power of Central Government to issue directions. 29. Power of Central Government to supersede Board. 30. Exemption from tax on income. 31. Protection of action taken in good faith. 32. Chairperson, Members and officers of Trust to be public servants. 33. Delegation. 34. Power to make rules. 35. Power to make regulations. 36. Rules and regulations to be laid before Parliament. ----- # THE NATIONAL TRUST FOR WELFARE OF PERSONS WITH AUTISM, CEREBRAL PALSY, MENTAL RETARDATION AND MULTIPLE DISABILITIES ACT, 1999 ACT NO. 44 OF 1999 [30th December, 1999.] # An Act to provide for the constitution of a body at the National level for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fiftieth year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1.** **Short title and extent.—(1) This Act may be called the National Trust for Welfare of Persons with** Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. (2) It extends to the whole of India [1]***. **2.** **Definitions.—In this Act, unless the context otherwise requires—** _(a)_ “autism” means a condition of uneven skill development primarily affecting the communication and social abilities of a person, marked by repetitive and ritualistic behaviour; _(b)_ “Board” means Board of trustees constituted under section3; _(c)_ “cerebral palsy” means a group of non-progressive conditions of a person characterised by abnormal motor control and posture resulting from brain insult or injuries occurring in the pre-natal, perinatal or infant period of development; _(d)_ “Chairperson” means the Chairperson of the Board appointed under clause (a) of sub-section (4) of section 3; _(e)_ “Chief Executive Officer” means the Chief Executive Officer appointed under sub-section (1) of section 8; _(f)_ “Member” means a Member of the Board and includes the Chairperson; _(g)_ “mental retardation” means a condition of arrested or incomplete development of mind of a person which is specially characterised by sub-normality of intelligence; _(h)_ “multiple disabilities” means a combination of two or more disabilities as defined in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); _(i)_ “notification” means a notification published in the Official Gazette; _(j)_ “persons with disability” means a person suffering from any of the conditions relating to autism, cerebral palsy, mental retardation or a combination of any two or more of such conditions and includes a person suffering from severe multiple disability; _(k)_ “prescribed” means prescribed by rules made under this Act; _(l)_ “professional” means a person who is having special expertise in a field which would promote the welfare of persons with disability; _(m)_ “registered organisation” means an association of persons with disability or an association of parents of persons with disability or a voluntary organisation, as the case may be, registered under section12; _(n)_ “regulations” means the regulations made by the Board under this Act; _(o)_ “severe disability” means disability with eighty per cent. or more of one or more multiple disabilities; _(p)_ “Trust” means the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability constituted under sub-section (1) of section 3. ----- CHAPTER II THE NATIONAL TRUST FOR WELFARE OF PERSONS WITH AUTISM, CEREBRAL PALSY, MENTAL RETARDATION AND MULTIPLE DISABILITY **3.** **Constitution of the National Trust for Welfare of Persons with Autism, Cerebral Palsy,** **Mental Retardation and Multiple Disability, etc.—(1) With effect from such date as the Central** Government may, by notification, appoint there shall be constituted, for the purposes of this Act, a body by the name of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities, which shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. _(2)_ The general superintendence, direction and management of the affairs and business of the Trust shall vest in a Board which may exercise all powers and do all acts and things which may be exercised or done by the Trust. _(3)_ The head office of the Trust shall be at New Delhi and the Board may, with the previous approval of the Central Government, establish offices at other places in India. _(4)_ The Board shall consist of— _(a)_ a Chairperson to be appointed by the Central Government from amongst the persons having expertise and experience in the field of autism, cerebral palsy, mental retardation and multiple disability; _(b)_ nine persons to be appointed in accordance with such procedure as may be prescribed from amongst the registered organisations out of which three members each shall be from voluntary organisations, association of parents of persons with autism, cerebral palsy, mental retardation and multiple disability and from association of persons with disability, Members: Provided that initial appointment under this clause shall be made by the Central Government by nomination; _(c)_ eight persons not below the rank of Joint Secretary to the Government of India nominated by that Government to represent the Ministries or Departments of Social Justice and Empowerment, Women and Child Development, Health and Family Welfare, Finance, Labour, Education, Urban Affairs and Employment and Rural Employment and Poverty Alleviation, Members, ex officio; _(d)_ three Persons to be nominated by the Board representing the associations of trade, commerce and industry engaged in philanthropic activities, Members; _(e)_ The Chief Executive Officer, who, shall be of the rank of Joint Secretary to the Government of India, Member-Secretary, ex officio. _(5)_ The Board may associate with itself, in such manner and for such purposes as may be determined by regulations, any person whose assistance or advice it may desire for carrying out the objects of the Trust: Provided that such person shall have a right to take part in the discussions relevant to that purposes but shall not have a right to vote at a meeting of the Board and shall not be a member for any other purposes: Provided further that the maximum number of persons so associated shall not exceed eight and so far as possible the person so associated shall belong to the registered organisation or from the professionals. **4.** **Term of office of Chairperson and Members, meeting of Board, etc.—(1) The Chairperson or a** Member shall hold office for a term of three years from the date of his appointment [1]***: Provided that no person shall hold office as the Chairperson or other Member after he has attained the age of sixty-five years. 2[(1A) The Central Government shall initiate the process for appointment of the Chairperson or Member, as the case may be, at least six months prior to the expiry of the term of office of such Chairperson or Member.] (2) The conditions of service of the Chairperson and other Members shall be such as may be prescribed. 1 The words “or until his successor shall have been duly appointed whichever is longer" omitted by Act 35 of 2018 s 2 ----- (3) A casual vacancy in the Board shall be filled in accordance with the provisions of section 3 and a person appointed shall hold office only for the remainder of the term for which the member, in whose place he was appointed, would have held that office. 1[Provided that the Central Government may, in case of a casual vacancy in the office of the Chairperson, by order in writing, direct an officer of appropriate level, to perform the functions of the Chairperson until such vacancy is filled in.] (4) Before appointing any person as the Chairperson or a Member, the Central Government shall satisfy itself that the person does not and will not, have any such financial or other interest as is likely to affect prejudicially his functions as such Member. (5) No Member of the Board shall be a beneficiary of the Trust during the period such Member holds office. (6) The Board shall meet at least once in three months at such time and place as may be determined by the Board by regulations and shall observe such rules of procedure in the transaction of business at a meeting as may be prescribed. (7) The Chairperson, if for any reason is unable to attend the meeting of the Board, any Member elected by the Members present from amongst themselves at the meeting, shall preside at the meeting. (8) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson, or in his absence, the person presiding shall have a second or casting vote. **5.** **Resignation of Chairperson and Members.—(1) The Chairperson may resign his office by** writing under his hand addressed to the Central Government: Provided that the Chairperson shall continue in office [2][until his resignation is accepted by the Central Government]. (2) A Member may resign from office by writing under his hand addressed to the Chairperson. **6.** **Disqualifications.—No person shall be a Member if he—** _(a)_ is, or becomes, of unsound mind or is so declared by a competent court; or _(b)_ is, or has been, convicted of an offence, which in the opinion of the Central Government, involves moral turpitude; or _(c)_ is, or at any time has been, adjudicated as an insolvent. **7.** **Vacation of office by Members.—If a member—** _(a)_ becomes subject to any of the disqualifications mentioned in section 6;or _(b)_ is, without obtaining leave of absence, absent from three consecutive meetings of the Board; or _(c)_ tenders his resignation under section 5, his seat shall thereupon become vacant. **8.** **Chief Executive Officer and staff of Trust.—(1) The Central Government shall appoint the Chief** Executive Officer to exercise such powers and perform such duties under the direction of the Board as may be prescribed or as may be delegated to him by the Chairperson. (2) The Board shall, with the previous approval of the Central Government, appoint such other officers and employees as it considers necessary to carry out the objectives of the Trust. (3) The salary and allowances payable to, and the other terms and conditions of service of, the Chief Executive Officer, other officers and employees of the Trust shall be such as may be determined by regulations. ----- **9.** **Vacancies in Board not to invalidate acts, etc.—No act or proceeding of the Board shall be** called in question on the grounds merely of the existence of any vacancy in, or any defect in the constitution of, the Board. CHAPTER III OBJECTS OF THE TRUST **10.** **Objects of Trust.—The objects of the Trust shall be—** _(a)_ to enable and empower persons with disability to live as independently and as fully as possible within and as close to the community to which they belong; _(b)_ to strengthen facilities to provide support to persons with disability to live within their own families; _(c)_ to extend support to registered organisations to provide need based services during the period of crisis in the family of persons with disability; _(d)_ to deal with problems of persons with disability who do not have family support; _(e)_ to promote measures for the care and protection of persons with disability in the event of death of their parent or guardian; _(f)_ to evolve procedure for the appointment of guardians and trustees for persons with disability requiring such protection; _(g)_ to facilitate the realisation of equal opportunities, protection of rights and full participation of persons with disability; and _(h)_ to do any other act which is incidental to the aforesaid objects. CHAPTER IV POWERS AND DUTIES OF THE BOARD **11.** **Powers and duties of Board.—(1) The Board shall—** _(a)_ receive from the Central Government a one-time contribution of rupees one hundred crores for a corpus, the income whereof shall be utilised to provide for adequate standard of living for persons with disability; _(b)_ receive bequests of movable property from any person for the benefit of the persons with disability in general and for furtherance of the objectives of the Trust in particular: Provided that it shall be obligatory on the part of the Board to make arrangement for adequate standard of living for the beneficiary named in the bequest, if any, and to utilise the property bequeathed for any other purpose for which the bequest has been made: Provided further that the Board shall not be under any obligation to utilise the entire amount mentioned in the bequest for the exclusive benefit of the persons with disability named as beneficiary in the bequest; _(c)_ receive from the Central Government such sums as may be considered necessary in each financial year for providing financial assistance to registered organisations for carrying out any approved programme. (2) For the purposes of sub-section (1), the expression “approved programme” means— _(a)_ any programme which promotes independent living in the community for persons with disability by— _(i)_ creating a conducive environment in the community; _(ii)_ counselling and training of family members of persons with disability; _(iii)_ setting up of adult training units, individual and group homes; _(b)_ any programme which promotes respite care, foster family care or day care service for persons with disability; ----- _(d)_ development of self-help groups of persons with disability to pursue the realisation of their rights; _(e)_ setting up of local level committee to grant approval for guardianship; and _(f)_ such other programmes which promote the objectives of the Trust. (3) While earmarking funds for the purposes of clause (c) of sub-section (2), preference shall be given to women with disability or to persons with severe disability and to senior citizens with disability. _Explanation.—For the purposes of this sub-section, the expression,—_ _(a)_ “persons with severe disability” shall have the same meaning as is assigned to it under sub section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of1996); _(b)_ “senior citizen” means a person who is above the age of sixty-five years or more. CHAPTER V PROCEDURE FOR REGISTRATION **12.** **Procedure for registration.—(1) Any association of persons with disability, or any association** of parents of persons with disability or a voluntary organisation whose main object is promotion of welfare of persons with disability may make an application for registration to the Board. (2) An application for registration shall be made in such form and manner and at such place as the Board may by regulation provide and shall contain such particulars and accompanied with such documents and such fees as may be provided in the regulations. (3) On receipt of application for registration, the Board may make such enquiries as it thinks fit in respect of genuineness of the application and correctness of any particulars thereon. (4) Upon receipt of such application the Board shall either grant registration to the applicant or reject such application for reasons to be recorded in writing: Provided that where registration has been refused to the applicant, the said applicant may again make an application for registration after removing defects, if any, in its previous application. CHAPTER VI LOCAL LEVEL COMMITTEES **13.** **Constitution of local level committees.—(1) The Board shall constitute a local level committee** for such area as may be specified by it from time to time. (2) A local level committee shall consist of— _(a)_ an officer of the civil service of the Union or of the State, not below the rank of a District Magistrate or a District Commissioner of a district; _(b)_ a representative of a registered organisation; and _(c)_ a person with disability as defined in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of1996). (3) A local level committee shall continue to work for a period of three years from the date of its constitution or till such time it is reconstituted by the Board. (4) A local level committee shall meet at least once in every three months or at such interval as may be necessary. **14.** **Appointment for guardianship.—(1) A parent of a person with disability or his relative may** make an application to the local level committee for appointment of any person of his choice to act as a guardian of the persons with disability. (2) Any registered organisation may make an application in the prescribed form to the local level committee for appointment of a guardian for a person with disability: Provided that no such application shall be entertained by the local level committee, unless the consent of the guardian of the disabled person is also obtained ----- consider— _(a)_ whether the person with disability needs a guardian; _(b)_ the purposes for which the guardianship is required for person with disability. (4) The local level committee shall receive, process and decide applications received under sub sections (1) and (2), in such manner as may be determined by regulations: Provided that while making recommendation for the appointment of a guardian, the local level committee shall provide for the obligations which are to be fulfilled by the guardian. (5) The local level committee shall send to the Board the particulars of the applications received by it and orders passed thereon at such interval as may be determined by regulations. **15.** **Duties of guardian.—Every person appointed as a guardian of a person with disability under this** Chapter shall, wherever required, either have the care of such person of disability and his property or be responsible for the maintenance of the person with disability. **16.** **Guardian to furnish inventory and annual accounts.—(1) Every person appointed as a** guardian under section 14 shall, within a period of six months from the date of his appointment, deliver to the authority which appointed him, an inventory of immovable property belonging to the person with disability and all assets and other movable property received on behalf of the person with disability, together with a statement of all claims due to and all debts and liabilities due by such person with disability. (2) Every guardian shall also furnish to the said appointing authority within a period of three months at the close of every financial year, an account of the property and assets in his charge, the sums received and disbursed on account of the person with disability and the balance remaining with him. **17.** **Removal of guardian.—(1) Whenever a parent or a relative of a person with disability or a** registered organisation finds that the guardian is— _(a)_ abusing or neglecting a person with disability; or _(b)_ misappropriating or neglecting the property, it may in accordance with the prescribed procedure apply to the committee for the removal of such guardian. (2) Upon receiving such application the committee may, if it is satisfied that there is a ground for removal and for reasons to be recorded in writing, remove such guardian and appoint a new guardian in his place or if such a guardian is not available make such other arrangements as may be necessary for the care and protection of person with disability. (3) Any person removed under sub-section (2) shall be bound to deliver the charge of all property of the person with disability to the new guardian, and to account for all moneys received or disbursed by him. _Explanation.—For the purposes of this Chapter, the expression “relative” includes any person related_ to the person with disability by blood, marriage or adoption. CHAPTER VII ACCOUNTABILITY AND MONITORING **18.** **Accountability.—(1) The books and documents in the possession of the Board shall be open to** inspection by any registered organisation. (2) Any registered organisation can submit a written requisition to the Board for getting a copy of any book or document maintained by the Board. (3) The Board shall frame such regulations as it thinks necessary for allowing the access of any book or document to a registered organisation. **19.** **Monitoring.—The Board shall determine by regulations the procedure for evaluating the** prefunding status of registered organisations seeking financial assistance from it and such regulations may ----- also provide for the guidelines for monitoring and evaluating the activities of the registered organisations who are receiving financial assistance from the Trust. **20.** **Annual general meeting.—(1) The Board shall in each year hold an annual general meeting of** registered organisations, and not more than six months shall elapse between the date of one annual general meeting and that of the next. (2) A notice of the annual general meeting along with a statement of accounts and records of its activities during the preceding year shall be sent by the Board to every registered organisation at such time as may be determined by regulations. (3) The quorum of such meeting shall be such number of persons of the registered organisations as may be determined by regulations. CHAPTER VIII FINANCE, ACCOUNTS AND AUDIT **21.** **Grants by the Central Government.—The Central Government may, after due appropriation** made be Parliament by law in this behalf, make to the Trust a one-time contribution of rupees one hundred crores for a corpus, the income whereof may be utilised to achieve the objects of the Trust under this Act. **22.** **Fund.—(1) There shall be constituted a Fund to be called the National Trust for Welfare of** Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Fund and there shall be credited thereto— _(a)_ all moneys received from the Central Government; _(b)_ all moneys received by the Trust by way of grants, gifts, donations, benefactions, bequests and transfers; _(c)_ all moneys received by the Trust in any other manner or from any other source. (2) All moneys belonging to the fund shall be deposited in such banks or invested in such manner as the Board may, subject to the approval of the Central Government, decide. (3) The Funds shall be applied towards meeting the administrative and other expenses of the Trust including expenses incurred in the exercise of its powers and performance of duties by the Board in relation to any of its activities under section 10 or for anything relatable thereto. **23.** **Budget.—The Board shall prepare, in such form and at such time in each financial year as may be** prescribed, the budget for the next financial year showing the estimated receipt and expenditure of the Trust and shall forward the same to the Central Government. **24.** **Accounts and audit.—(1) The Board shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts of the Trust including the income and expenditure accounts in such form as the Central Government may prescribe and in accordance with such general direction as may be issued by that Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Trust shall be audited by the Comptroller and Auditor General of India at such intervals as may be specified by him and any expenditure incurred by him in connection with such audit shall be payable by Board to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Trust shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India generally has in connection with the audit of the Government accounts and in particular, shall have the right to demand the production of books of account, connected vouchers and other documents and papers and to inspect any of the offices of the Trust. (4) The accounts of the Trust as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the Central Government, and that Government shall cause the same to be laid before each House of Parliament. **25.** **Annual report.—The Board shall prepare every year, in such form and within such time as may** ----- copies thereof shall be forwarded to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **26.** **Authentication of orders, etc.—All orders and decisions of the Board and instruments issued in** the name of the Trust shall be authenticated by the signature of the Chairperson, the Chief Executive Officer or any other officer authorised by the Chairperson in this behalf. **27.** **Returns and information.—The Board shall furnish to the Central Government such reports,** returns and other information as that Government may require from time to time. CHAPTER IX MISCELLANEOUS **28.** **Power of Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Board shall, in exercise of its powers or the performance of its duties under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Board shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government whether a question is one of policy or not shall be final. **29.** **Power of Central Government to supersede Board.—(1) If the Central Government on the** complaint of a registered organisation or otherwise has reason to believe that the Board is unable to perform or has persistently made default in the performance of the duties imposed on it, the Central Government may issue notice to the Board asking why it should not be superseded: Provided that no order superseding the Board shall be made by the Central Government, unless a notice affording reasonable opportunity to the Board has been given in writing that why it should not be superseded. (2) The Central Government after recording reasons in writing and by issuing a notification in the Official Gazette supersede the Board for a period of not more than six months: Provided that on the expiration of the period of supersession, the Central Government may reconstitute the Board, in accordance with section3. (3) Upon the publication of the notification under sub-section (2),— (a) all the members of the Board shall, notwithstanding that their term of office had not expired as on the date of supersession, vacate their office as such members; (b) all the powers and duties which may, by or under the provisions of this Act, be exercised or performed by or on behalf of the Trust shall, during the period of supersession, be exercised and performed by such person or persons as the Central Government may direct. (4) On the expiration of the period of supersession specified in the notification issued under sub section (2), the Central Government may— (a) extend the period of supersession for such further period as it may consider necessary so that the total period of supersession does not exceed more than six months; or (b) reconstitute the Board in the manner provided in section3. **30.** **Exemption from tax on income.—Notwithstanding anything contained in the Income-tax Act,** 1961 (43 of 1961), or any other law for the time being in force relating to tax on income, profits or gains, the Trust shall not be liable to pay income-tax or any other tax in respect of its income, profits or gains derived. **31.** **Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or the Trust or any member of the Board or Chief Executive Officer or any officer or other employee of the Trust or any other person authorised by the Board to perform duties under this Act for any loss or damage caused or likely to be caused by anything which is done in good faith. ----- _Explanation.—For the purposes of this section, the expression “good faith” shall have the same_ meaning as is assigned to it in the Indian Penal Code (45 of 1860). **32.** **Chairperson, Members and officers of Trust to be public servants.—All Members, Chief** Executive Officer, other officers and employees of the Trust shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **33.** **Delegation.—The Board may, by general or special order in writing, delegate to the Chairperson** or any member or any officer of the Trust or any other person subject to such conditions and limitations, if any, as may be specified in the order such of its powers under this Act (except the power to make regulations under section 35) as it may deem necessary. **34.** **Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all of the following matters, namely:— (a) the procedure in accordance with which the persons representing registered organisation shall be elected under clause (b) of sub-section (4) of section3; (b) the conditions of service of the Chairperson and Members under sub-section (2) of section4; (c) the rules of procedure in the transaction of business at meetings of the Board under sub- section (6) of section4; (d) the powers and duties of the Chief Executive Officer under sub-section (1) of section8; (e) the form in which an application for guardianship may be made by a registered organisation under sub-section (2) of section14; (f) the procedure in accordance with which a guardian may be removed under section17; (g) the form in which, and the time within which, the budget of the Trust shall be forwarded to the Central Government under section23; (h) the form in which the annual statement of accounts shall be maintained under sub-section (1) of section24; (i) the form in which, and the time within which, the annual reports shall be prepared and forwarded under section25; (j) any other matter which is required to be, or may be, prescribed. **35.** **Power to make regulations.—(1) The Board may, with the previous approval of the Central** Government, by notification in the Official Gazette, make regulations consistent with this Act and rules generally to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— _(a)_ the manner and purpose for which a person may be associated under sub-section (5) of section 3; _(b)_ the time and place at which the Board shall meet under sub-section (6) of section 4; _(c)_ the terms and conditions of service of, Chief Executive Officer, other officers and employees of the Trust under sub-section (3) of section 8; _(d)_ the form and manner in which the application shall be made for registration under sub section (2) of section 12 and the particulars which such application shall contain under that subsection; _(e)_ the manner in which application for guardianship shall be received, processed and decided by the local level committee under sub-section (4) of section14; _(f)_ the particulars of applications and orders passed thereon by the local level committee under sub-section (5) of section14; ----- _(g)_ the procedure for evaluating the pre-funding status of the registered organisations and framing of guidelines for monitoring and evaluating the activities of such registered organisations under section19; _(h)_ the time within which notice for annual general meeting shall be sent and quorum for such meeting under sub-sections (2) and (3) of section 20;and _(i)_ any other matter which is required to be, or may be, provided by regulations. **36.** **Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. -----
30-Dec-1999
47
The Trade Marks Act, 1999
https://www.indiacode.nic.in/bitstream/123456789/1993/5/a1999-47.pdf
central
# THE TRADE MARKS ACT, 1999 _________ # ARRANGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions and interpretation. CHAPTER II THE REGISTER AND CONDITIONS FOR REGISTRATION 3. Appointment of Registrar and other officers. 4. Power of Registrar to withdraw or transfer cases, etc. 5. Trade Marks Registry and offices thereof. 6. The Register of Trade Marks. 7. Classification of goods and services. 8. Publication of alphabetical index. 9. Absolute grounds for refusal of registration. 10. Limitation as to colour. 11. Relative grounds for refusal of registration. 12. Registration in the case of honest concurrent use, etc. 13. Prohibition of registration of names of chemical elements or international non-proprietary names. 14. Use of names and representations of living persons or persons recently dead. 15. Registration of parts of trade marks and of trade marks as a series. 16. Registration of trade marks as associated trade marks. 17. Effect of registration of parts of a mark. CHAPTER III PROCEDURE FOR AND DURATION OF REGISTRATION 18. Application for registration. 19. Withdrawal of acceptance. 20. Advertisement of application. 21. Opposition to registration. 22. Correction and amendment. 23. Registration. 24. Jointly owned trade marks. 25. Duration, renewal, removal and restoration of registration. 26. Effect of removal from register for failure to pay fee for renewal. CHAPTER IV EFFECT OF REGISTRATION 27. No action for infringement of unregistered trade mark. 28. Rights conferred by registration. 29. Infringement of registered trade marks. 30. Limits on effect of registered trade mark. 31. Registration to be prima facie evidence of validity. 32. Protection of registration on ground of distinctiveness in certain cases. 33. Effect of acquiescence. ----- SECTIONS 34. Saving for vested rights. 35. Saving for use of name, address or description of goods or services. 36. Saving for words used as name or description of an article or substance or service. CHAPTER IVA SPECIAL PROVISIONS RELATING TO PROTECTION OF TRADE MARKS THROUGH INTERNATIONAL REGISTRATION UNDER THE MADRID PROTOCOL 36A. Application of Act in case of international registration under Madrid Protocol. 36B. Definitions. 36C. Trade Marks Registry to deal with international applications. 36D. International application originating from India. 36E. International registrations where India has been designated. 36F. Effects of international registration. 36G. Duration and renewal of international registration. CHAPTER V ASSIGNMENT AND TRANSMISSION 37. Power of registered proprietor to assign and give receipts. 38. Assignability and transmissibility of registered trade marks. 39. Assignability and transmissibility of unregistered trade marks. 40. Restriction on assignment or transmission where multiple exclusive rights would be created. 41. Restriction on assignment or transmission when exclusive rights would be created in different parts of India. 42. Conditions for assignment otherwise than in connection with the goodwill of a business. 43. Assignability and transmissibility of certification trade marks. 44. Assignability and transmissibility of associated trade marks. 45. Registration of assignments and transmissions. CHAPTER VI USE OF TRADE MARKS AND REGISTERED USERS 46. Proposed use of trade mark by company to be formed, etc. 47. Removal from register and imposition of limitations on ground of non-use. 48. Registered users. 49. Registration as registered user. 50. Power of Registrar for variation or cancellation of registration as registered user. 51. Power of Registrar to call for information relating to agreement in respect of registered users. 52. Right of registered user to take proceedings against infringement. 53. No right of permitted user to take proceeding against infringement. 54. Registered user not to have right of assignment or transmission. 55. Use of one of associated or substantially identical trade marks equivalent to use of another. 56. Use of trade mark for export trade and use when form of trade connection changes. CHAPTER VII RECTIFICATION AND CORRECTION OF THE REGISTER 57. Power to cancel or vary registration and to rectify the register. 58. Correction of register. 59. Alteration of registered trade marks. 60. Adaptation of entries in register to amended or substituted classification of goods or services. ----- CHAPTER VIII COLLECTIVE MARKS SECTIONS 61. Special provisions for collective marks. 62. Collective mark not to be misleading as to character or significance. 63. Application to be accompanied by regulations governing use of collective marks. 64. Acceptance of application and regulations by Registrar. 65. Regulations to be open to inspection. 66. Amendment of regulations. 67. Infringement proceedings by registered proprietor of collective mark. 68. Additional grounds for removal of registration of collective mark. CHAPTER IX CERTIFICATION TRADE MARKS 69. Certain provisions of this Act not applicable to certification trade marks. 70. Registration of certification trade marks. 71. Applications for registration of certification trade marks. 72. Consideration of application for registration by Registrar. 73. Opposition to registration of certification trade marks. 74. Filing of regulations governing use of a certification trade mark. 75. Infringement of certification trade marks. 76. Acts not constituting infringement of certification trade marks. 77. Cancellation or varying of registration of certification trade marks. 78. Rights conferred by registration of certification trade marks. CHAPTER X. —SPECIAL PROVISIONS FOR TEXTILE GOODS. [Omitted] 79. [Omitted.] 80. [Omitted.] 81. [Omitted.] 82. [Omitted.] CHAPTER XI APPEALS 83. [Omitted.] 84. [Omitted.] 85. [Omitted.] 86. [Omitted.] 87. [Omitted.] 88. [Omitted.] 89. [Omitted.] 89A. [Omitted.] 90. [Omitted.] 91. Appeals to High Court. 92. [Omitted.] 93. [Omitted.] ----- SECTIONS 94. Bar to appear before Registrar. 95. [Omitted.] 96. [Omitted.] 97. Procedure for application for rectification, etc., before High Court. 98. Appearance of Registrar in legal proceedings. 99. [Omitted.] 100. [Omitted.] CHAPTER XII OFFENCES, PENALTIES AND PROCEDURE 101. Meaning of applying trade marks and trade descriptions. 102. Falsifying and falsely applying trade marks. 103. Penalty for applying false trade marks, trade descriptions, etc. 104. Penalty for selling goods or providing services to which false trade mark or false trade description is applied. 105. Enhanced penalty on second or subsequent conviction. 106. [Omitted.] 107. Penalty for falsely representing a trade mark as registered. 108. [Omitted.] 109. [Omitted.] 110. No offence in certain cases. 111. Forfeiture of goods. 112. Exemption of certain persons employed in ordinary course of business. 112A. Adjudication of penalties. 112B. Appeal. 113. Procedure where invalidity of registration is pleaded by the accused. 114. Offences by companies. 115. Cognizance of certain offences and the powers of police officer for search and seizure. 116. Evidence of origin of goods imported by sea. 117. Costs of defence or prosecution. 118. Limitation of prosecution. 119. Information as to commission of offence. 120. Punishment of abetment in India of acts done out of India. 121. Instructions of Central Government as to permissible variation to be observed by criminal courts. CHAPTER XIII MISCELLANEOUS 122. Protection of action taken in good faith. 123. Certain persons to be public servants. 124. Stay of proceedings where the validity of registration of the trade mark is questioned, etc. 125. Application for rectification of register to be made to High Court in certain cases. 126. Implied warranty on sale of marked goods. 127. Powers of Registrar. 128. Exercise of discretionary power by Registrar. 129. Evidence before Registrar. 130. Death of party to a proceeding. 131. Extension of time. 132. Abandonment. 133. Preliminary advice by the Registrar as to distinctiveness. 134. Suit for infringement, etc., to be instituted before District Court. 135. Relief in suits for infringement or for passing off. 136. Registered user to be impleaded in certain proceedings. ----- SECTIONS 137. Evidence of entries in register, etc., and things done by the Registrar. 138. Registrar and other officers not compellable to produce register, etc. 139. Power to require goods to show indication of origin. 140. Power to require information of imported goods bearing false trade marks. 141. Certificate of validity. 142. Groundless threats of legal proceedings. 143. Address for service. 144. Trade usages, etc., to be taken into consideration. 145. Agents. 146. Marks registered by an agent or representative without authority. 147. Indexes. 148. Documents open to public inspection. 149. Reports of Registrar to be placed before Parliament. 150. Fees and surcharge. 151. Savings in respect of certain matters in Chapter XII. 152. Declaration as to ownership of trade mark not registrable under the Registration Act, 1908. 153. Government to be bound. 154. Special provisions relating to applications for registration from citizens of convention countries. 155. Provision as to reciprocity. 156. Power of Central Government to remove difficulties. 157. Power to make rules. 158. Amendments. 159. Repeal and savings. THE SCHEDULE. ----- # THE TRADE MARKS ACT, 1999 ACT NO. 47 OF 1999 [30th December, 1999.] # An Act to amend and consolidate the law relating to trade marks, to provide for registration and better protection of trade marks for goods and services and for the prevention of the use of fraudulent marks. BE it enacted by Parliament in the Fiftieth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Trade Marks Act, 1999.** (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions and interpretation.—(1) In this Act, unless the context otherwise requires,—** 2* - - - (b) “assignment” means an assignment in writing by act of the parties concerned; (c) “associated trade marks” means trade marks deemed to be, or required to be, registered as associated trade marks under this Act; 2* - - - (e) “certification trade mark” means a mark capable of distinguishing the goods or services in connection with which it is used in the course of trade which are certified by the proprietor of the mark in respect of origin, material, mode of manufacture of goods or performance of services, quality, accuracy or other characteristics from goods or services not so certified and registrable as such under Chapter IX in respect of those goods or services in the name, as proprietor of the certification trade mark, of that person; 2* - - - (g) “collective mark” means a trade mark distinguishing the goods or services of members of an association of persons (not being a partnership within the meaning of the Indian Partnership Act, 1932 (9 of 1932) which is the proprietor of the mark from those of others; (h) “deceptively similar”.—A mark shall be deemed to be deceptively similar to another mark if it so nearly resembles that other mark as to be likely to deceive or cause confusion; (i) “false trade description” means— (I) a trade description which is untrue or misleading in a material respect as regards the goods or services to which it is applied; or (II) any alteration of a trade description as regards the goods or services to which it is applied, whether by way of addition, effacement or otherwise, where that alteration makes the description untrue or misleading in a material respect; or 1. 15th September, 2003, vide notification No. S.O. 1048(E), dated 15th September, 2003, _see Gazette of India, Extraordinary,_ Part II, sec. 3(ii). 2. Clauses (a), (d) and (f) omitted by Act 33 of 2021, s. 21 (w.e.f. 4-4-2021). ----- (III) any trade description which denotes or implies that there are contained, as regards the goods to which it is applied, more yards or metres than there are contained therein standard yards or standard metres; or (IV) any marks or arrangement or combination thereof when applied— (a) to goods in such a manner as to be likely to lead persons to believe that the goods are the manufacture or merchandise of some person other than the person whose merchandise or manufacture they really are; (b) in relation to services in such a manner as to be likely to lead persons to believe that the services are provided or rendered by some person other than the person whose services they really are; or (V) any false name or initials of a person applied to goods or services in such manner as if such name or initials were a trade description in any case where the name or initials— (a) is or are not a trade mark or part of a trade mark; and (b) is or are identical with or deceptively similar to the name or initials of a person carrying on business in connection with goods or services of the same description or both and who has not authorised the use of such name or initials; and (c) is or are either the name or initials of a fictitious person or some person not bona fide carrying on business in connection with such goods or services, and the fact that a trade description is a trade mark or part of a trade mark shall not prevent such trade description being a false trade description within the meaning of this Act; (j) “goods” means anything which is the subject of trade or manufacture; 1* - - - (l) “limitations” (with its grammatical variations) means any limitation of the exclusive right to the use of a trade mark given by the registration of a person as proprietor thereof, including limitations of that right as to mode or area of use within India or outside India; (m) “mark” includes a device, brand, heading, label, ticket, name, signature, word, letter, numeral, shape of goods, packaging or combination of colours or any combination thereof; 1* - - - (o) “name” includes any abbreviation of a name; (p) “notify” means to notify in the Trade Mark Journal published by the Registrar; (q) “package” includes any case, box, container, covering, folder, receptacle, vessel, casket, bottle, wrapper, label, band, ticket, reel, frame, capsule, cap, lid, stopper and cork; (r) “permitted use”, in relation to a registered trade mark, means the use of trade mark— (i) by a registered user of the trade mark in relation to goods or services— (a) with which he is connected in the course of trade; and (b) in respect of which the trade mark remains registered for the time being; and (c) for which he is registered as registered user; and (d) which complies with any conditions or limitations to which the registration of registered user is subject; or (ii) by a person other than the registered proprietor and registered user in relation to goods or services— (a) with which he is connected in the course of trade; and 1. Clauses (k) and (n) omitted by Act 33 of 2021, s. 21 (w.e.f. 4-4-2021). ----- (b) in respect of which the trade mark remains registered for the time being; and (c) by consent of such registered proprietor in a written agreement; and (d) which complies with any conditions or limitations to which such user is subject and to which the registration of the trade mark is subject; 1[(s) “prescribed” means,— (i) in relation to proceedings before a High Court, prescribed by rules made by the High Court; and (ii) in other cases, prescribed by rules made under this Act;] (t) “register” means the Register of Trade Marks referred to in sub-section (1) of section 6; (u) “registered” (with its grammatical variations) means registered under this Act; (v) “registered proprietor”, in relation to a trade mark, means the person for the time being entered in the register as proprietor of the trade mark; (w) “registered trade mark” means a trade mark which is actually on the register and remaining in force; (x) “registered user” means a person who is for the time being registered as such under section 49; (y) “Registrar” means the Registrar of Trade Marks referred to in section 3; (z) “Service” means service of any description which is made available to potential users and includes the provision of services in connection with business of any industrial or commercial matters such as banking, communication, education, financing, insurance, chit funds, real estate, transport, storage, material treatment, processing, supply of electrical or other energy, boarding, lodging, entertainment, amusement, construction, repair, conveying of news or information and advertising; (za) “trade description” means any description, statement or other indication, direct or indirect,— (i) as to the number, quantity, measure, gauge or weight of any goods; or (ii) as to the standard of quality of any goods or services according to a classification commonly used or recognised in the trade; or (iii) as to fitness for the purpose, strength, performance or behaviour of any goods, being “drug” as defined in the Drugs and Cosmetics Act, 1940 (23 of 1940), or “food” as defined in the Prevention of Food Adulteration Act, 1954 (37 of 1954); or (iv) as to the place or country in which or the time at which any goods or services were made, produced or provided, as the case may be; or (v) as to the name and address or other indication of the identity of the manufacturer or of the person providing the services or of the person for whom the goods are manufactured or services are provided; or (vi) as to the mode of manufacture or producing any goods or providing services; or (vii) as to the material of which any goods are composed; or (viii) as to any goods being the subject of an existing patent, privilege or copyright, and includes— (a) any description as to the use of any mark which according to the custom of the trade is commonly taken to be an indication of any of the above matters; (b) the description as to any imported goods contained in any bill of entry or shipping bill; 1. Subs. by Act 33 of 2021, s. 21, for clause (s) (w.e.f. 4-4-2021). ----- (c) any other description which is likely to be misunderstood or mistaken for all or any of the said matters; (zb) “trade mark” means a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one person from those of others and may include shape of goods, their packaging and combination of colours; and— (i) in relation to Chapter XII (other than section 107), a registered trade mark or a mark used in relation to goods or services for the purpose of indicating or so as to indicate a connection in the course of trade between the goods or services, as the case may be, and some person having the right as proprietor to use the mark; and (ii) in relation to other provisions of this Act, a mark used or proposed to be used in relation to goods or services for the purpose of indicating or so as to indicate a connection in the course of trade between the goods or services, as the case may be, and some person having the right, either as proprietor or by way of permitted user, to use the mark whether with or without any indication of the identity of that person, and includes a certification trade mark or collective mark; (zc) “transmission” means transmission by operation of law, devolution on the personal representative of a deceased person and any other mode of transfer, not being assignment; (zd) “Technical Member” means a Member who is not a Judicial Member; 1* - - - (zg) “well known trade mark”, in relation to any goods or services, means a mark which has become so to the substantial segment of the public which uses such goods or receives such services that the use of such mark in relation to other goods or services would be likely to be taken as indicating a connection in the course of trade or rendering of services between those goods or services and a person using the mark in relation to the first-mentioned goods or services. (2) In this Act, unless the context otherwise requires, any reference— (a) to “trade mark” shall include reference to “collective mark” or “certification trade mark”; (b) to the use of a mark shall be construed as a reference to the use of printed or other visual representation of the mark; (c) to the use of a mark,— (i) in relation to goods, shall be construed as a reference to the use of the mark upon, or in any physical or in any other relation whatsoever, to such goods; (ii) in relation to services, shall be construed as a reference to the use of the mark as or as part of any statement about the availability, provision or performance of such services; (d) to the Registrar shall be construed as including a reference to any officer when discharging the functions of the Registrar in pursuance of sub-section (2) of section 3; (e) to the Trade Marks Registry shall be construed as including a reference to any office of the Trade Marks Registry. (3) For the purposes of this Act, goods and services are associated with each other if it is likely that those goods might be sold or otherwise traded in and those services might be provided by the same business and so with descriptions of goods and descriptions of services. (4) For the purposes of this Act, “existing registered trade mark” means a trade mark registered under the Trade and Merchandise Marks Act, 1958 (43 of 1958) immediately before the commencement of this Act. 1. Clauses (ze) and (zf) omitted by Act 33 of 2021, s. 21 (w.e.f. 4-4-2021). ----- CHAPTER II THE REGISTER AND CONDITIONS FOR REGISTRATION **3. Appointment of Registrar and other officers.—(1) The Central Government may, by** notification in the Official Gazette, appoint a person to be known as the Controller-General of Patents, Designs and Trade Marks, who shall be the Registrar of Trade Marks for the purposes of this Act. (2) The Central Government may appoint such other officers with such designations as it thinks fit for the purpose of discharging, under the superintendence and direction of the Registrar, such functions of the Registrar under this Act as he may from time to time authorise them to discharge. **4. Power of Registrar to withdraw or transfer cases, etc.—Without prejudice to the generality of** the provisions of sub-section (2) of section 3, the Registrar may, by order in writing and for reasons to be recorded therein, withdraw any matter pending before an officer appointed under the said sub-section (2) and deal with such matter himself either _de novo or from the stage it was so withdrawn or transfer the_ same to another officer so appointed who may, subject to special directions in the order of transfer, proceed with the matter either de novo or from the stage it was so transferred. **5. Trade Marks Registry and offices thereof.—(1) For the purposes of this Act, there shall be a** trade marks registry and the Trade Marks Registry established under the Trade and Merchandise Marks Act, 1958 (43 of 1958) shall be the Trade Marks Registry under this Act. (2) The head office of the Trade Marks Registry shall be at such place as the Central Government may specify, and for the purpose of facilitating the registration of trade marks, there may be established at such places as the Central Government may think fit branch offices of the Trade Marks Registry. (3) The Central Government may, by notification in the Official Gazette, define the territorial limits within which an office of the Trade Marks Registry may exercise its functions. (4) There shall be a seal of the Trade Marks Registry. **6. The Register of Trade Marks.—(1) For the purposes of this Act, a record called the Register of** Trade Marks shall be kept at the head office of the Trade Marks Registry, wherein shall be entered all registered trade marks with the names, addresses and description of the proprietors, notifications of assignment and transmissions, the names, addresses and descriptions of registered users, conditions, limitations and such other matter relating to registered trade marks as may be prescribed. (2) Notwithstanding anything contained in sub-section (1), it shall be lawful for the Registrar to keep the records wholly or partly in computer floppies diskettes or in any other electronic form subject to such safeguards as may be prescribed. (3) Where such register is maintained wholly or partly on computer under sub-section (2) any reference in this Act to entry in the Register shall be construed as the reference to any entry as maintained on computer or in any other electronic form. (4) No notice of any trust, express or implied or constructive, shall be entered in the register and no such notice shall be receivable by the Registrar. (5) The register shall be kept under the control and management of the Registrar. (6) There shall be kept at each branch office of the Trade Marks Registry a copy of the register and such of the other documents mentioned in section 148 as the Central Government may, by notification in the Official Gazette, direct. (7) The Register of Trade Marks, both Part A and Part B, existing at the commencement of this Act, shall be incorporated in and form part of the register under this Act. **7. Classification of goods and services.—(1) The Registrar shall classify goods and services, as far** as may be, in accordance with the International classification of goods and services for the purposes of registration of trade marks. (2) Any question arising as to the class within which any goods or services falls shall be determined by the Registrar whose decision shall be final. ----- **8. Publication of alphabetical index.—(1) The Registrar may publish in the prescribed manner an** alphabetical index of classification of goods and services referred to in section 7. (2) Where any goods or services are not specified in the alphabetical index of goods and services published under sub-section (1), the classification of goods or services shall be determined by the Registrar in accordance with sub-section (2) of section 7. **9. Absolute grounds for refusal of registration.—(1) The trade marks—** (a) which are devoid of any distinctive character, that is to say, not capable of distinguishing the goods or services of one person from those of another person; (b) which consist exclusively of marks or indications which may serve in trade to designate the kind, quality, quantity, intended purpose, values, geographical origin or the time of production of the goods or rendering of the service or other characteristics of the goods or service; (c) which consist exclusively of marks or indications which have become customary in the current language or in the bona fide and established practices of the trade, shall not be registered: Provided that a trade mark shall not be refused registration if before the date of application for registration it has acquired a distinctive character as a result of the use made of it or is a well-known trade mark. (2) A mark shall not be registered as a trade mark if— (a) it is of such nature as to deceive the public or cause confusion; (b) it contains or comprises of any matter likely to hurt the religious susceptibilities of any class or section of the citizens of India; (c) it comprises or contains scandalous or obscene matter; (d) its use is prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950 (12 of 1950). (3) A mark shall not be registered as a trade mark if it consists exclusively of— (a) the shape of goods which results from the nature of the goods themselves; or (b) the shape of goods which is necessary to obtain a technical result; or (c) the shape which gives substantial value to the goods. _Explanation.—For the purposes of this section, the nature of goods or services in relation to which_ the trade mark is used or proposed to be used shall not be a ground for refusal of registration. **10. Limitation as to colour.—(1) A trade mark may be limited wholly or in part to any combination** of colours and any such limitation shall be taken into consideration by the [1][Registrar or the High Court, as the case may be] having to decide on the distinctive character of the trade mark. (2) So far as a trade mark is registered without limitation of colour, it shall be deemed to be registered for all colours. **11. Relative grounds for refusal of registration.—(1) Save as provided in section 12, a trade mark** shall not be registered if, because of— (a) its identity with an earlier trade mark and similarity of goods or services covered by the trade mark; or (b) its similarity to an earlier trade mark and the identity or similarity of the goods or services covered by the trade mark, there exists a likelihood of confusion on the part of the public, which includes the likelihood of association with the earlier trade mark. 1. Subs. by Act 33 of 2021, s. 21, for “tribunal” (w.e.f. 4-4-2021). ----- (2) A trade mark which— (a) is identical with or similar to an earlier trade mark; and (b) is to be registered for goods or services which are not similar to those for which the earlier trade mark is registered in the name of a different proprietor, shall not be registered if or to the extent the earlier trade mark is a well-known trade mark in India and the use of the later mark without due cause would take unfair advantage of or be detrimental to the distinctive character or repute of the earlier trade mark. (3) A trade mark shall not be registered if, or to the extent that, its use in India is liable to be prevented— (a) by virtue of any law in particular the law of passing off protecting an unregistered trade mark used in the course of trade; or (b) by virtue of law of copyright. (4) Nothing in this section shall prevent the registration of a trade mark where the proprietor of the earlier trade mark or other earlier right consents to the registration, and in such case the Registrar may register the mark under special circumstances under section 12. _Explanation.—For the purposes of this section, earlier trade mark means—_ 1[(a) a registered trade mark or an application under section 18 bearing an earlier date of filing or an international registration referred to in section 36E or convention application referred to in section 154 which has a date of application earlier than that of the trade mark in question, taking account, where appropriate, of the priorities claimed in respect of the trade marks;] (b) a trade mark which, on the date of the application for registration of the trade mark in question, or where appropriate, of the priority claimed in respect of the application, was entitled to protection as a well-known trade mark. (5) A trade mark shall not be refused registration on the grounds specified in sub-sections (2) and (3), unless objection on any one or more of those grounds is raised in opposition proceedings by the proprietor of the earlier trade mark. (6) The Registrar shall, while determining whether a trade mark is a well-known trade mark, take into account any fact which he considers relevant for determining a trade mark as a well-known trade mark including— (i) the knowledge or recognition of that trade mark in the relevant section of the public including knowledge in India obtained as a result of promotion of the trade mark; (ii) the duration, extent and geographical area of any use of that trade mark; (iii) the duration, extent and geographical area of any promotion of the trade mark, including advertising or publicity and presentation, at fairs or exhibition of the goods or services to which the trade mark applies; (iv) the duration and geographical area of any registration of or any application for registration of that trade mark under this Act to the extent that they reflect the use or recognition of the trade mark; (v) the record of successful enforcement of the rights in that trade mark, in particular the extent to which the trade mark has been recognised as a well-known trade mark by any court or Registrar under that record. (7) The Registrar shall, while determining as to whether a trade mark is known or recognised in a relevant section of the public for the purposes of sub-section (6), take into account— (i) the number of actual or potential consumers of the goods or services; (ii) the number of persons involved in the channels of distribution of the goods or services; 1. Subs. by Act 40 of 2010, s. 2, for clause (a) (w.e.f. 8-7-2013). ----- (iii) the business circles dealing with the goods or services, to which that trade mark applies. (8) Where a trade mark has been determined to be well known in at least one relevant section of the public in India by any court or Registrar, the Registrar shall consider that trade mark as a well-known trade mark for registration under this Act. (9) The Registrar shall not require as a condition, for determining whether a trade mark is a well-known trade mark, any of the following, namely:— (i) that the trade mark has been used in India; (ii) that the trade mark has been registered; (iii) that the application for registration of the trade mark has been filed in India; (iv) that the trade mark— (a) is well-known in; or (b) has been registered in; or (c) in respect of which an application for registration has been filed in, any jurisdiction other than India, or (v) that the trade mark is well-known to the public at large in India. (10) While considering an application for registration of a trade mark and opposition filed in respect thereof, the Registrar shall— (i) protect a well-known trade mark against the identical or similar trade marks; (ii) take into consideration the bad faith involved either of the applicant or the opponent affecting the right relating to the trade mark. (11) Where a trade mark has been registered in good faith disclosing the material informations to the Registrar or where right to a trade mark has been acquired through use in good faith before the commencement of this Act, then, nothing in this Act shall prejudice the validity of the registration of that trade mark or right to use that trade mark on the ground that such trade mark is identical with or similar to a well-known trade mark. **12. Registration in the case of honest concurrent use, etc.—In the case of honest concurrent use or** of other special circumstances which in the opinion of the Registrar, make it proper so to do, he may permit the registration by more than one proprietor of the trade marks which are identical or similar (whether any such trade mark is already registered or not) in respect of the same or similar goods or services, subject to such conditions and limitations, if any, as the Registrar may think fit to impose. **13. Prohibition of registration of names of chemical elements or international non-proprietary** **names.—No word—** (a) which is the commonly used and accepted name of any single chemical element or any single chemical compound (as distinguished from a mixture) in respect of a chemical substance or preparation, or (b) which is declared by the World Health Organisation and notified in the prescribed manner by the Registrar from time to time, as an international non-proprietary name or which is deceptively similar to such name, shall be registered as a trade mark and any such registration shall be deemed for the purpose of section 57 to be an entry made in the register without sufficient cause or an entry wrongly remaining on the register, as the circumstances may require. **14. Use of names and representations of living persons or persons recently dead.—Where an** application is made for the registration of a trade mark which falsely suggests a connection with any living person, or a person whose death took place within twenty years prior to the date of application for registration of the trade mark, the Registrar may, before he proceeds with the application, require the ----- applicant to furnish him with the consent in writing of such living person or, as the case may be, of the legal representative of the deceased person to the connection appearing on the trade mark, and may refuse to proceed with the application unless the applicant furnishes the Registrar with such consent. **15. Registration of parts of trade marks and of trade marks as a series.—(1) Where the** proprietor of a trade mark claims to be entitled to the exclusive use of any part thereof separately, he may apply to register the whole and the part as separate trade marks. (2) Each such separate trade mark shall satisfy all the conditions applying to and have all the incidents of, an independent trade mark. (3) Where a person claiming to be the proprietor of several trade marks in respect of the same or similar goods or services or description of goods or description of services, which, while resembling each other in the material particulars thereof, yet differ in respect of— (a) statement of the goods or services in relation to which they are respectively used or proposed to be used; or (b) statement of number, price, quality or names of places; or (c) other matter of a non-distinctive character which does not substantially affect the identity of the trade mark; or (d) colour, seeks to register those trade marks, they may be registered as a series in one registration. **16. Registration of trade marks as associated trade marks.—(1) Where a trade mark which is** registered, or is the subject of an application for registration, in respect of any goods or services is identical with another trade mark which is registered, or is the subject of an application for registration, in the name of the same proprietor in respect of the same goods or description of goods or same services or description of services or so nearly resembles it as to be likely to deceive or cause confusion if used by a person other than the proprietor, the Registrar may, at any time, require that the trade marks shall be entered on the register as associated trade marks. (2) Where there is an identity or near resemblance of marks that are registered, or are the subject of applications for registration in the name of the same proprietor, in respect of goods and services which are associated with those goods or services, or goods or services of that description, sub-section (1) shall apply as it applies as where there is an identity or near resemblance of marks that are registered, or are the subject of applications for registration, in the name of the same proprietor in respect of the same goods or description of goods or same services or description of services. (3) Where a trade mark and any part thereof are, in accordance with the provisions of sub-section (1) of section 15, registered as separate trade marks in the name of the same proprietor, they shall be deemed to be, and shall be registered as, associated trade marks. (4) All trade marks registered in accordance with the provisions of sub-section (3) of section 15 as a series in one registration shall be deemed to be, and shall be registered as, associated trade marks. (5) On application made in the prescribed manner by the registered proprietor of two or more trade marks registered as associated trade marks, the Registrar may dissolve the association as respects any of them if he is satisfied that there would be no likelihood of deception or confusion being caused if that trade mark were used by any other person in relation to any of the goods or services or both in respect of which it is registered, and may amend the register accordingly. **17. Effect of registration of parts of a mark.—(1) When a trade mark consists of several matters,** its registration shall confer on the proprietor exclusive right to the use of the trade mark taken as a whole. (2) Notwithstanding anything contained in sub-section (1), when a trade mark— (a) contains any part— (i) which is not the subject of a separate application by the proprietor for registration as a trade mark; or ----- (ii) which is not separately registered by the proprietor as a trade mark; or (b) contains any matter which is common to the trade or is otherwise of a non-distinctive character, the registration thereof shall not confer any exclusive right in the matter forming only a part of the whole of the trade mark so registered. CHAPTER III PROCEDURE FOR AND DURATION OF REGISTRATION **18. Application for registration.—(1) Any person claiming to be the proprietor of a trade mark used** or proposed to be used by him, who is desirous of registering it, shall apply in writing to the Registrar in the prescribed manner for the registration of his trade mark. (2) A single application may be made for registration of a trade mark for different classes of goods and services and fee payable therefor shall be in respect of each such class of goods or services. (3) Every application under sub-section (1) shall be filed in the office of the Trade Marks Registry within whose territorial limits the principal place of business in India of the applicant or in the case of joint applicants the principal place of business in India of the applicant whose name is first mentioned in the application as having a place of business in India, is situate: Provided that where the applicant or any of the joint applicants does not carry on business in India, the application shall be filed in the office of the Trade Marks Registry within whose territorial limits the place mentioned in the address for service in India as disclosed in the application, is situate. (4) Subject to the provisions of this Act, the Registrar may refuse the application or may accept it absolutely or subject to such amendments, modifications, conditions or limitations, if any, as he may think fit. (5) In the case of a refusal or conditional acceptance of an application, the Registrar shall record in writing the grounds for such refusal or conditional acceptance and the materials used by him in arriving at his decision. **19. Withdrawal of acceptance.—Where, after the acceptance of an application for registration of a** trade mark but before its registration, the Registrar is satisfied— (a) that the application has been accepted in error; or (b) that in the circumstances of the case the trade mark should not be registered or should be registered subject to conditions or limitations or to conditions additional to or different from the conditions or limitations subject to which the application has been accepted, the Registrar may, after hearing the applicant if he so desires, withdraw the acceptance and proceed as if the application had not been accepted. **20. Advertisement of application.—(1) When an application for registration of a trade mark has** been accepted, whether absolutely or subject to conditions or limitations, the Registrar shall, as soon as may be after acceptance, cause the application as accepted together with the conditions or limitations, if any, subject to which it has been accepted, to be advertised in the prescribed manner: Provided that the Registrar may cause the application to be advertised before acceptance if it relates to a trade mark to which sub-section (1) of section 9 and sub-sections (1) and (2) of section 11 apply, or in any other case where it appears to him that it is expedient by reason of any exceptional circumstances so to do. (2) Where— (a) an application has been advertised before acceptance under sub-section (1); or (b) after advertisement of an application,— (i) an error in the application has been corrected; or ----- (ii) the application has been permitted to be amended under section 22, the Registrar may in his discretion cause the application to be advertised again or in any case falling under clause (b) may, instead of causing the application to be advertised again, notify in the prescribed manner the correction or amendment made in the application. **21. Opposition to registration.—[1][(1) Any person may, within four months from the date of the** advertisement or re-advertisement of an application for registration, give notice in writing in the prescribed manner and on payment of such fee as may be prescribed, to the Registrar, of opposition to the registration.] (2) The Registrar shall serve a copy of the notice on the applicant for registration and, within two months from the receipt by the applicant of such copy of the notice of opposition, the applicant shall send to the Registrar in the prescribed manner a counterstatement of the grounds on which he relies for his application, and if he does not do so he shall be deemed to have abandoned his application. (3) If the applicant sends such counter-statement, the Registrar shall serve a copy thereof on the person giving notice of opposition. (4) Any evidence upon which the opponent and the applicant may rely shall be submitted in the prescribed manner and within the prescribed time to the Registrar, and the Registrar shall give an opportunity to them to be heard, if they so desire. (5) The Registrar shall, after hearing the parties, if so required, and considering the evidence, decide whether and subject to what conditions or limitations, if any, the registration is to be permitted, and may take into account a ground of objection whether relied upon by the opponent or not. (6) Where a person giving notice of opposition or an applicant sending a counter-statement after receipt of a copy of such notice neither resides nor carries on business in India, the Registrar may require him to give security for the costs of proceedings before him, and in default of such security being duly given, may treat the opposition or application, as the case may be, as abandoned. (7) The Registrar may, on request, permit correction of any error in, or any amendment of, a notice of opposition or a counter-statement on such terms as he thinks just. **22. Correction and amendment.—The Registrar may, on such terms as he thinks just, at any time,** whether before or after acceptance of an application for registration under section 18, permit the correction of any error in or in connection with the application or permit an amendment of the application: Provided that if an amendment is made to a single application referred to in sub-section (2) of section 18 involving division of such application into two or more applications, the date of making of the initial application shall be deemed to be the date of making of the divided applications so divided. **23. Registration.—(1) Subject to the provisions of section 19, when an application for registration of** a trade mark has been accepted and either— (a) the application has not been opposed and the time for notice of opposition has expired; or (b) the application has been opposed and the opposition has been decided in favour of the applicant, the Registrar shall, unless the Central Government otherwise directs, register the said trade mark [2][within eighteen months of the filing of the application] and the trade mark when registered shall be registered as of the date of the making of the said application and that date shall, subject to the provisions of section 154, be deemed to be the date of registration. (2) On the registration of a trade mark, the Registrar shall issue to the applicant a certificate in the prescribed form of the registration thereof, sealed with the seal of the Trade Marks Registry. (3) Where registration of a trade mark is not completed within twelve months from the date of the application by reason of default on the part of the applicant, the Registrar may, after giving notice to the 1. Subs. by Act 40 of 2010, s. 3, for sub-section (1) (w.e.f. 8-7-2013). 2. Ins. by s. 4, ibid. (w.e.f. 8-7-2013). ----- applicant in the prescribed manner, treat the application as abandoned unless it is completed within the time specified in that behalf in the notice. (4) The Registrar may amend the register or a certificate of registration for the purpose of correcting a clerical error or an obvious mistake. **24. Jointly owned trade marks.—(1) Save as provided in sub-section (2), nothing in this Act shall** authorise the registration of two or more persons who use a trade mark independently, or propose so as to use it, as joint proprietors thereof. (2) Where the relations between two or more persons interested in a trade mark are such that no one of them is entitled as between himself and the other or others of them to use it except— (a) on behalf of both or all of them; or\ (b) in relation to an article or service with which both or all of them are connected in the course of trade, those persons may be registered as joint proprietors of the trade mark, and this Act shall have effect in relation to any rights to the use of the trade mark vested in those persons as if those rights had been vested in a single person. **25. Duration, renewal, removal and restoration of registration.—(1) The registration of a trade** mark, after the commencement of this Act, shall be for a period of ten years, but may be renewed from time to time in accordance with the provisions of this section. (2) The Registrar shall, on application made by the registered proprietor of a trade mark in the prescribed manner and within the prescribed period and subject to payment of the prescribed fee, renew the registration of the trade mark for a period of ten years from the date of expiration of the original registration or of the last renewal of registration, as the case may be (which date is in this section referred to as the expiration of the last registration). (3) At the prescribed time before the expiration of the last registration of a trade mark the Registrar shall send notice in the prescribed manner to the registered proprietor of the date of expiration and the conditions as to payment of fees and otherwise upon which a renewal of registration may be obtained, and, if at the expiration of the time prescribed in that behalf those conditions have not been duly complied with the Registrar may remove the trade mark from the register: Provided that the Registrar shall not remove the trade mark from the register if an application is made in the prescribed form and the prescribed fee and surcharge is paid within six months from the expiration of the last registration of the trade mark and shall renew the registration of the trade mark for a period of ten years under sub-section (2). (4) Where a trade mark has been removed from the register for non-payment of the prescribed fee, the Registrar shall, after six months and within one year from the expiration of the last registration of the trade mark, on receipt of an application in the prescribed form and on payment of the prescribed fee, if satisfied that it is just so to do, restore the trade mark to the register and renew the registration of the trade mark either generally or subject to such conditions or limitations as he thinks fit to impose, for a period of ten years from the expiration of the last registration. **26. Effect of removal from register for failure to pay fee for renewal.—Where a trade mark has** been removed from the register for failure to pay the fee for renewal, it shall nevertheless, for the purpose of any application for the registration of another trade mark during one year, next after the date of the removal, be deemed to be a trade mark already on the register, unless the [1][Registrar or the High Court, as the case may be] is satisfied either— (a) that there has been no bona fide trade use of the trade mark which has been removed during the two years immediately preceding its removal; or 1. Subs. by Act 33 of 2021, s. 21, for “Tribunal” (w.e.f. 4-4-2021). ----- (b) that no deception or confusion would be likely to arise from the use of the trade mark which is the subject of the application for registration by reason of any previous use of the trade mark which has been removed. CHAPTER IV EFFECT OF REGISTRATION **27. No action for infringement of unregistered trade mark.—(1) No person shall be entitled to** institute any proceeding to prevent, or to recover damages for, the infringement of an unregistered trade mark. (2) Nothing in this Act shall be deemed to affect rights of action against any person for passing off goods or services as the goods of another person or as services provided by another person, or the remedies in respect thereof. **28. Rights conferred by registration.—(1) Subject to the other provisions of this Act, the** registration of a trade mark shall, if valid, give to the registered proprietor of the trade mark the exclusive right to the use of the trade mark in relation to the goods or services in respect of which the trade mark is registered and to obtain relief in respect of infringement of the trade mark in the manner provided by this Act. (2) The exclusive right to the use of a trade mark given under sub-section (1) shall be subject to any conditions and limitations to which the registration is subject. (3) Where two or more persons are registered proprietors of trade marks, which are identical with or nearly resemble each other, the exclusive right to the use of any of those trade marks shall not (except so far as their respective rights are subject to any conditions or limitations entered on the register) be deemed to have been acquired by any one of those persons as against any other of those persons merely by registration of the trade marks but each of those persons has otherwise the same rights as against other persons (not being registered users using by way of permitted use) as he would have if he were the sole registered proprietor. **29. Infringement of registered trade marks.—(1) A registered trade mark is infringed by a person** who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which is identical with, or deceptively similar to, the trade mark in relation to goods or services in respect of which the trade mark is registered and in such manner as to render the use of the mark likely to be taken as being used as a trade mark. (2) A registered trade mark is infringed by a person who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which because of— (a) its identity with the registered trade mark and the similarity of the goods or services covered by such registered trade mark; or (b) its similarity to the registered trade mark and the identity or similarity of the goods or services covered by such registered trade mark; or (c) its identity with the registered trade mark and the identity of the goods or services covered by such registered trade mark, is likely to cause confusion on the part of the public, or which is likely to have an association with the registered trade mark. (3) In any case falling under clause (c) of sub-section (2), the court shall presume that it is likely to cause confusion on the part of the public. (4) A registered trade mark is infringed by a person who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which— (a) is identical with or similar to the registered trade mark; and ----- (b) is used in relation to goods or services which are not similar to those for which the trade mark is registered; and (c) the registered trade mark has a reputation in India and the use of the mark without due cause takes unfair advantage of or is detrimental to, the distinctive character or repute of the registered trade mark. (5) A registered trade mark is infringed by a person if he uses such registered trade mark, as his trade name or part of his trade name, or name of his business concern or part of the name, of his business concern dealing in goods or services in respect of which the trade mark is registered. (6) For the purposes of this section, a person uses a registered mark, if, in particular, he— (a) affixes it to goods or the packaging thereof; (b) offers or exposes goods for sale, puts them on the market, or stocks them for those purposes under the registered trade mark, or offers or supplies services under the registered trade mark; (c) imports or exports goods under the mark; or (d) uses the registered trade mark on business papers or in advertising. (7) A registered trade mark is infringed by a person who applies such registered trade mark to a material intended to be used for labeling or packaging goods, as a business paper, or for advertising goods or services, provided such person, when he applied the mark, knew or had reason to believe that the application of the mark was not duly authorised by the proprietor or a licensee. (8) A registered trade mark is infringed by any advertising of that trade mark if such advertising— (a) takes unfair advantage of and is contrary to honest practices in industrial or commercial matters; or (b) is detrimental to its distinctive character; or (c) is against the reputation of the trade mark. (9) Where the distinctive elements of a registered trade mark consist of or include words, the trade mark may be infringed by the spoken use of those words as well as by their visual representation and reference in this section to the use of a mark shall be construed accordingly. **30. Limits on effect of registered trade mark.—(1) Nothing in section 29 shall be construed as** preventing the use of a registered trade mark by any person for the purposes of identifying goods or services as those of the proprietor provided the use— (a) is in accordance with honest practices in industrial or commercial matters, and (b) is not such as to take unfair advantage of or be detrimental to the distinctive character or repute of the trade mark. (2) A registered trade mark is not infringed where— (a) the use in relation to goods or services indicates the kind, quality, quantity, intended purpose, value, geographical origin, the time of production of goods or of rendering of services or other characteristics of goods or services; (b) a trade mark is registered subject to any conditions or limitations, the use of the trade mark in any manner in relation to goods to be sold or otherwise traded in, in any place, or in relation to goods to be exported to any market or in relation to services for use or available for acceptance in any place or country outside India or in any other circumstances, to which, having regard to those conditions or limitations, the registration does not extend; (c) the use by a person of a trade mark— (i) in relation to goods connected in the course of trade with the proprietor or a registered user of the trade mark if, as to those goods or a bulk of which they form part, the registered proprietor or the registered user conforming to the permitted use has applied the trade mark and has not ----- subsequently removed or obliterated it, or has at any time expressly or impliedly consented to the use of the trade mark; or (ii) in relation to services to which the proprietor of such mark or of a registered user conforming to the permitted use has applied the mark, where the purpose and effect of the use of the mark is to indicate, in accordance with the fact, that those services have been performed by the proprietor or a registered user of the mark; (d) the use of a trade mark by a person in relation to goods adapted to form part of, or to be accessory to, other goods or services in relation to which the trade mark has been used without infringement of the right given by registration under this Act or might for the time being be so used, if the use of the trade mark is reasonably necessary in order to indicate that the goods or services are so adapted, and neither the purpose nor the effect of the use of the trade mark is to indicate, otherwise than in accordance with the fact, a connection in the course of trade between any person and the goods or services, as the case may be; (e) the use of a registered trade mark, being one of two or more trade marks registered under this Act which are identical or nearly resemble each other, in exercise of the right to the use of that trade mark given by registration under this Act. (3) Where the goods bearing a registered trade mark are lawfully acquired by a person, the sale of the goods in the market or otherwise dealing in those goods by that person or by a person claiming under or through him is not infringement of a trade mark by reason only of— (a) the registered trade mark having been assigned by the registered proprietor to some other person, after the acquisition of those goods; or (b) the goods having been put on the market under the registered trade mark by the proprietor or with his consent. (4) Sub-section (3) shall not apply where there exists legitimate reasons for the proprietor to oppose further dealings in the goods in particular, where the condition of the goods, has been changed or impaired after they have been put on the market. **31. Registration to be prima** **_facie evidence of validity.—(1) In all legal proceedings relating to a_** trade mark registered under this Act (including applications under section 57), the original registration of the trade mark and of all subsequent assignments and transmissions of the trade mark shall be prima facie evidence of the validity thereof. (2) In all legal proceedings as aforesaid a registered trade mark shall not be held to be invalid on the ground that it was not a registrable trade mark under section 9 except upon evidence of distinctiveness and that such evidence was not submitted to the Registrar before registration, if it is proved that the trade mark had been so used by the registered proprietor or his predecessor in title as to have become distinctive at the date of registration. **32. Protection of registration on ground of distinctiveness in certain cases.—Where a trade mark** is registered in breach of sub-section (1) of section 9, it shall not be declared invalid if, in consequence of the use which has been made of it, it has after registration and before commencement of any legal proceedings challenging the validity of such registration, acquired a distinctive character in relation to the goods or services for which it is registered. **33. Effect of acquiescence.—(1) Where the proprietor of an earlier trade mark has acquiesced for a** continuous period of five years in the use of a registered trade mark, being aware of that use, he shall no longer be entitled on the basis of that earlier trade mark— (a) to apply for a declaration that the registration of the later trade mark is invalid, or (b) to oppose the use of the later trade mark in relation to the goods or services in relation to which it has been so used, unless the registration of the later trade mark was not applied in good faith. ----- (2) Where sub-section (1) applies, the proprietor of the later trade mark is not entitled to oppose the use of the earlier trade mark, or as the case may be, the exploitation of the earlier right, notwithstanding that the earlier trade mark may no longer be invoked against his later trade mark. **34. Saving for vested rights.—Nothing in this Act shall entitle the proprietor or a registered user of** registered trade mark to interfere with or restrain the use by any person of a trade mark identical with or nearly resembling it in relation to goods or services in relation to which that person or a predecessor in title of his has continuously used that trade mark from a date prior— (a) to the use of the first-mentioned trade mark in relation to those goods or services by the proprietor or a predecessor in title of his; or (b) to the date of registration of the first-mentioned trade mark in respect of those goods or services in the name of the proprietor of a predecessor in title of his; whichever is the earlier, and the Registrar shall not refuse (on such use being proved) to register the second mentioned trade mark by reason only of the registration of the first-mentioned trade mark. **35. Saving for use of name, address or description of goods or services.—Nothing in this Act** shall entitle the proprietor or a registered user of a registered trade mark to interfere with any _bona fide_ use by a person of his own name or that of his place of business, or of the name, or of the name of the place of business, of any of his predecessors in business, or the use by any person of any _bona fide_ description of the character or quality of his goods or services. **36. Saving for words used as name or description of an article or substance or service.—(1) The** registration of a trade mark shall not be deemed to have become invalid by reason only of any use after the date of the registration of any word or words which the trade mark contains or of which it consists as the name or description of an article or substance or service: Provided that, if it is proved either— (a) that there is a well known and established use of the said word as the name or description of the article or substance or service by a person or persons carrying on trade therein, not being use in relation to goods or services connected in the course of trade with the proprietor or a registered user of the trade mark or (in the case of a certification trade mark) in relation to goods or services certified by the proprietor; or (b) that the article or substance was formerly manufactured under a patent that a period of two years or more after the cesser of the patent has elapsed and that the said word is the only practicable name or description of the article or substance, the provisions of sub-section (2) shall apply. (2) Where the facts mentioned in clause (a) or clause (b) of the proviso to sub-section (1) are proved with respect to any words, then,— (a) for the purposes of any proceedings under section 57 if the trade mark consists solely of such words, the registration of the trade mark, so far as regards registration in respect of the article or substance in question or of any goods of the same description, or of the services or of any services of the same description, as the case requires, shall be deemed to be an entry wrongly remaining on the register; (b) for the purposes of any other legal proceedings relating to the trade mark,— (i) if the trade mark consists solely of such words, all rights of the proprietor under this Act or any other law to the use of the trade mark; or (ii) if the trade mark contains such words and other matter, all such right of the proprietor to the use of such words, in relation to the article or substance or to any goods of the same description, or to the service or to any services of the same description, as the case requires, shall be deemed to have ceased on the date on which the use mentioned in clause (a) of the proviso to sub-section (1) first became well known and established or at the expiration of the period of two years mentioned in clause (b) of the said proviso. ----- 1[CHAPTER IVA SPECIAL PROVISIONS RELATING TO PROTECTION OF TRADE MARKS THROUGH INTERNATIONAL REGISTRATION UNDER THE MADRID PROTOCOL **36A. Application of Act in case of international registration under Madrid Protocol.—The** provisions of this Chapter shall apply to international applications and international registrations under the Madrid Protocol. **36B. Definitions.—In this Chapter, unless the context otherwise requires,—** (a) “application”, in relation to a Contracting State or a Contracting Organisation, means an application made by a person who is a citizen of, or is domiciled in, or has a real and effective industrial or commercial establishment in, that Contracting State or a State which is a member of that Contracting Organisation, as the case may be. _Explanation.—For the purposes of this clause, “real and effective industrial or commercial_ establishment” means and includes any establishment where some bona fide industrial or commercial activity takes place and need not necessarily be the principal place of business; (b) “basic application” means an application for the registration of a trade mark filed under section 18 and which is used as a basis for applying for an international registration; (c) “basic registration” means the registration of a trade mark under section 23 and which is used as a basis for applying for an international registration; (d) “Common Regulations” means the Regulations concerning the implementation of the Madrid Protocol; (e) “Contracting Organisation” means a Contracting Party that is an intergovernmental organisation; (f) “Contracting Party” means a Contracting State or Contracting Organisation party to the Madrid Protocol; (g) “Contracting State” means a country party to the Madrid Protocol; (h) “international application” means an application for international registration or for extension of the protection resulting from an international registration to any Contracting Party made under the Madrid Protocol; (i) “International Bureau” means the International Bureau of the World Intellectual Property Organisation; (j) “international registration” means the registration of a trade mark in the register of the International Bureau effected under the Madrid Protocol; (k) “Madrid Agreement” means the Madrid Agreement Concerning the International Registration of Marks adopted at Madrid on the 14th day of April, 1891, as subsequently revised and amended; (l) “Madrid Protocol” means the Protocol relating to the Madrid Agreement Concerning the International Registration of Marks adopted at Madrid on the 27th day of June, 1989, as amended from time to time. **36C. Trade Marks Registry to deal with international applications.—Notwithstanding anything** contained in sub-section (3) of section 5, an international application shall be dealt with by the head office of the Trade Marks Registry or such branch office of the Registry, as the Central Government may, by notification in the Official Gazette, specify. **36D. International application originating from India.—(1) Where an application for the** registration of a trade mark has been made under section 18 or a trade mark has been registered under section 23, the applicant or the registered proprietor may make an international application on the form prescribed by the Common Regulations for international registration of that trade mark. 1. Ins. by Act 40 of 2010, s. 5 (w.e.f. 8-7-2013). ----- (2) A person holding an international registration may make an international application on the form prescribed by the Common Regulations for extension of the protection resulting from such registration to any other Contracting Party. (3) An international application under sub-section (1) or sub-section (2) shall designate the Contracting Parties where the protection resulting from the international registration is required. (4) The Registrar shall certify in the prescribed manner that the particulars appearing in the international application correspond to the particulars appearing, at the time of the certification, in the application under section 18 or the registration under section 23, and shall indicate the date and number of that application or the date and number of that registration as well as the date and number of the application from which that registration resulted, as the case may be, and shall within the prescribed period, forward the international application to the International Bureau for registration, also indicating the date of the international application. (5) Where at any time before the expiry of a period of five years of an international registration, whether such registration has been transferred to another person or not, the application under section 18 or the registration under section 23, as the case may be, has been withdrawn or cancelled or has expired or has been finally refused in respect of all or some of the goods or services listed in the international registration, the protection resulting from such international registration shall cease to have effect: Provided that where an appeal is made against the decision of registration and an action requesting for withdrawal of application or an opposition to the application has been initiated before the expiry of the period of five years of an international registration, any final decision resulting into withdrawal, cancellation, expiration or refusal shall be deemed to have taken place before the expiry of five years of the international registration. (6) The Registrar shall, during the period of five years beginning with the date of international registration, transmit to the International Bureau every information referred to in sub-section (5). (7) The Registrar shall notify the International Bureau the cancellation to be effected to an international registration keeping in view the current status of the basic application or the basic registration, as the case may be. **36E. International registrations where India has been designated.—(1) The Registrar shall, after** receipt of an advice from the International Bureau about any international registration where India has been designated, keep a record of the particulars of that international registration in the prescribed manner. (2) Where, after recording the particulars of any international registration referred to in sub-section (1), the Registrar is satisfied that in the circumstances of the case the protection of trade mark in India should not be granted or such protection should be granted subject to conditions or limitations or to conditions additional to or different from the conditions or limitations subject to which the international registration has been accepted, he may, after hearing the applicant if he so desires, refuse grant of protection and inform the International Bureau in the prescribed manner within eighteen months from the date on which the advice referred to in sub-section (1) was received. (3) Where the Registrar finds nothing in the particulars of an international registration to refuse grant of protection under sub-section (2), he shall within the prescribed period cause such international registration to be advertised in the prescribed manner. (4) The provisions of sections 9 to 21 (both inclusive), 63 and 74 shall apply _mutatis mutandis_ in relation to an international registration as if such international registration was an application for registration of a trade mark under section 18. (5) When the protection of an international registration has not been opposed and the time for notice of opposition has expired, the Registrar shall within a period of eighteen months of the receipt of advice under sub-section (1) notify the International Bureau its acceptance of extension of protection of the trade mark under such international registration and, in case the Registrar fails to notify the International Bureau, it shall be deemed that the protection has been extended to the trade mark. (6) Where a registered proprietor of a trade mark makes an international registration of that trade mark and designates India, the international registration from the date of the registration shall be deemed ----- to replace the registration held in India without prejudice to any right acquired under such previously held registration and the Registrar shall, upon request by the applicant, make necessary entry in the register referred to in sub-section (1) of section 6. (7) A holder of international registration of a trade mark who designates India and who has not been extended protection in India shall have the same remedy which is available to any person making an application for the registration of a trade mark under section 18 and which has not resulted in registration under section 23. (8) Where at any time before the expiry of a period of five years of an international registration, whether such registration has been transferred to another person or not, the related basic application or, as the case may be, the basic registration in a Contracting Party other than India has been withdrawn or cancelled or has expired or has been finally refused in respect of all or some of the goods or services listed in the international registration, the protection resulting from such international registration in India shall cease to have effect. **36F. Effects of international registration.—(1) From the date of the international registration of a** trade mark where India has been designated or the date of the recording in the register of the International Bureau about the extension of the protection resulting from an international registration of a trade mark to India, the protection of the trade mark in India shall be the same as if the trade mark had been registered in India. (2) The indication of classes of goods and services given by the applicant shall not bind the Registrar with regard to the determination of the scope of the protection of the trade mark. **36G. Duration and renewal of international registration.—(1) The international registration of a** trade mark at the International Bureau shall be for a period of ten years and may be renewed for a period of ten years from the expiry of the preceding period. (2) Subject to payment of a surcharge prescribed by the rules, a grace period of six months shall be allowed for renewal of the international registration.] CHAPTER V ASSIGNMENT AND TRANSMISSION **37. Power of registered proprietor to assign and give receipts.—The person for the time being** entered in the register as proprietor of a trade mark shall, subject to the provisions of this Act and to any rights appearing from the register to be vested in any other person, have power to assign the trade mark, and to give effectual receipts for any consideration for such assignment. **38. Assignability and transmissibility of registered trade marks.—Notwithstanding anything in** any other law to the contrary, a registered trade mark shall, subject to the provisions of this Chapter, be assignable and transmissible, whether with or without the goodwill of the business concerned and in respect either of all the goods or services in respect of which the trade mark is registered or of some only of those goods or services. **39. Assignability and transmissibility of unregistered trade marks.—An unregistered trade mark** may be assigned or transmitted with or without the goodwill of the business concerned. **40. Restriction on assignment or transmission where multiple exclusive rights would be** **created.—(1) Notwithstanding anything in sections 38 and 39, a trade mark shall not be assignable or** transmissible in a case in which as a result of the assignment or transmission there would in the circumstances subsist, whether under this Act or any other law, exclusive rights in more than one of the persons concerned to the use, in relation to— (a) same goods or services; (b) same description of goods or services; (c) goods or services or description of goods or services which are associated with each other, ----- of trade marks nearly resembling each other or of identical trade mark, if having regard to the similarity of the goods and services and to the similarity of the trade marks, the use of the trade marks in exercise of those rights would be likely to deceive or cause confusion: Provided that an assignment or transmission shall not be deemed to be invalid under this sub-section if the exclusive rights subsisting as a result thereof in the persons concerned respectively are, having regard to limitations imposed thereon, such as not to be exercisable by two or more of those persons in relation to goods to be sold, or otherwise traded in, within India otherwise than for export therefrom, or in relation to goods to be exported to the same market outside India or in relation to services for use at any place in India or any place outside India in relation to services available for acceptance in India. (2) The proprietor of a registered trade mark who proposes to assign it may submit to the Registrar in the prescribed manner a statement of case setting out the circumstances and the Registrar may issue to him a certificate stating whether, having regard to the similarity of the goods or services and of the trade marks referred to in the case, the proposed assignment would or would not be invalid under sub-section (1), and a certificate so issued shall, subject to appeal and unless it is shown that the certificate was obtained by fraud or misrepresentation, be conclusive as to the validity or invalidity under sub-section (1) of the assignment in so far as such validity or invalidity depends upon the facts set out in the case, but, as regards a certificate in favour of validity, only if application for the registration under section 45 of the title of the person becoming entitled is made within six months from the date on which the certificate is issued. **41. Restriction on assignment or transmission when exclusive rights would be created in** **different parts of India.—Notwithstanding anything in sections 38 and 39, a trade mark shall not be** assignable or transmissible in a case in which as a result of the assignment or transmission there would in the circumstances subsist, whether under this Act or any other law— (a) an exclusive right in one of the persons concerned, to the use of the trade mark limited to use in relation to goods to be sold or otherwise traded in, in any place in India, or in relation to services for use, or services available for acceptance in any place in India; and (b) an exclusive right in another of these persons concerned, to the use of a trade mark nearly resembling the first-mentioned trade mark or of an identical trade mark in relation to— (i) the same goods or services; or (ii) the same description of goods or services; or (iii) services which are associated with those goods or goods of that description or goods which are associated with those services or services of that description, limited to use in relation to goods to be sold or otherwise traded in, or services for use, or available for acceptance, in any other place in India: Provided that in any such case, on application in the prescribed manner by the proprietor of a trade mark who proposes to assign it, or by a person who claims that a registered trade mark has been transmitted to him or to a predecessor in title of his since the commencement of this Act, the Registrar, if he is satisfied that in all the circumstances the use of the trade mark in exercise of the said rights would not be contrary to the public interest may approve the assignment or transmission, and an assignment or transmission so approved shall not, unless it is shown that the approval was obtained by fraud or misrepresentation, be deemed to be invalid under this section or section 40 if application for the registration under section 45 of the title of the person becoming entitled is made within six months from the date on which the approval is given or, in the case of a transmission, was made before that date. **42. Conditions for assignment otherwise than in connection with the goodwill of a business.—** Where an assignment of a trade mark, whether registered or unregistered is made otherwise than in connection with the goodwill of the business in which the mark has been or is used, the assignment shall not take effect unless the assignee, not later than the expiration of six months from the date on which the assignment is made or within such extended period, if any, not exceeding three months in the aggregate, as the Registrar may allow, applies to the Registrar for directions with respect to the advertisement of the assignment, and advertises it in such form and manner and within such period as the Registrar may direct. ----- _Explanation.—For the purposes of this section, an assignment of a trade mark of the following_ description shall not be deemed to be an assignment made otherwise than in connection with the goodwill of the business in which the mark is used, namely:— (a) an assignment of a trade mark in respect only of some of the goods or services for which the trade mark is registered accompanied by the transfer of the goodwill of the business concerned in those goods or services only; or (b) an assignment of a trade mark which is used in relation to goods exported from India or in relation to services for use outside India if the assignment is accompanied by the transfer of the goodwill of the export business only. **43. Assignability and transmissibility of certification trade marks.—A certification trade mark** shall not be assignable or transmissible otherwise than with the consent of the Registrar, for which application shall be made in writing in the prescribed manner. **44. Assignability and transmissibility of associated trade marks.—Associated trade marks shall** be assignable and transmissible only as a whole and not separately, but, subject to the provisions of this Act, they shall, for all other purposes, be deemed to have been registered as separate trade mark. **1[45. Registration of assignments and transmissions.—(1) Where a person becomes entitled by** assignment or transmission to a registered trade mark, he shall apply in the prescribed manner to the Registrar to register his title, and the Registrar shall, on receipt of the application, register him as the proprietor of the trade mark in respect of the goods or services in respect of which the assignment or transmission has effect, and shall cause particulars of such assignment or transmission to be entered on the register. (2) The Registrar may require the applicant to furnish evidence or further evidence in proof of title only where there is a reasonable doubt about the veracity of any statement or any document furnished. (3) Where the validity of an assignment or transmission is in dispute between the parties, the Registrar may refuse to register the assignment or transmission until the rights of the parties have been determined by a competent court and in all other cases the Registrar shall dispose of the application within the prescribed period. (4) Until an application under sub-section (1) has been filed, the assignment or transmission shall be ineffective against a person acquiring a conflicting interest in or under the registered trade mark without the knowledge of assignment or transmission.] CHAPTER VI USE OF TRADE MARKS AND REGISTERED USERS **46. Proposed use of trade mark by company to be formed, etc.—(1) No application for the** registration of a trade mark in respect of any goods or services shall be refused nor shall permission for such registration be withheld, on the ground only that it appears that the applicant does not use or propose to use the trade mark if the Registrar is satisfied that— (a) a company is about to be formed and registered under the Companies Act, 1956 (1 of 1956) and that the applicant intends to assign the trade mark to that company with a view to the use thereof in relation to those goods or services by the company, or (b) the proprietor intends it to be used by a person, as a registered user after the registration of the trade mark. (2) The provisions of section 47 shall have effect, in relation to a trade mark registered under the powers conferred by this sub-section, as if for the reference, in clause (a) of sub-section (1) of that section, to the intention on the part of an applicant for registration that a trade mark should be used by him there were substituted a reference to the intention on his part that it should be used by the company or registered user concerned. 1. Subs. by Act 40 of 2010, s. 6, for section 45 (w.e.f. 8-7-2013). ----- (3) The [1][Registrar or the High Court, as the case may be] may, in a case to which sub-section (1) applies, require the applicant to give security for the costs of any proceedings relating to any opposition or appeal, and in default of such security being duly given, may treat the application as abandoned. (4) Where in a case to which sub-section (1) applies, a trade mark in respect of any goods or services is registered in the name of an applicant who, relies on intention to assign the trade mark to a company, then, unless within such period as may be prescribed or within such further period not exceeding six months as the Registrar may, on application being made to him in the prescribed manner, allow, the company has been registered as the proprietor of the trade mark in respect of those goods or services, the registration shall cease to have effect in respect thereof at the expiration of that period and the Registrar shall amend the register accordingly. **47. Removal from register and imposition of limitations on ground of non-use.—(1) A registered** trade mark may be taken off the register in respect of the goods or services in respect of which it is registered on application made in the prescribed manner to the Registrar or the [2][High Court] by any person aggrieved on the ground either— (a) that the trade mark was registered without any bona fide intention on the part of the applicant for registration that it should be used in relation to those goods or services by him or, in a case to which the provisions of section 46 apply, by the company concerned or the registered user, as the case may be, and that there has, in fact, been no bona fide use of the trade mark in relation to those goods or services by any proprietor thereof for the time being up to a date three months before the date of the application; or (b) that up to a date three months before the date of the application, a continuous period of five years from the date on which the trade mark is actually entered in the register or longer had elapsed during which the trade mark was registered and during which there was no bona fide use thereof in relation to those goods or services by any proprietor thereof for the time being: Provided that except where the applicant has been permitted under section 12 to register an identical or nearly resembling trade mark in respect of the goods or services in question, or where the [1][Registrar or the High Court, as the case may be] is of opinion that he might properly be permitted so to register such a trade mark, the [1][Registrar or the High Court, as the case may be] may refuse an application under clause (a) or clause (b) in relation to any goods or services, if it is shown that there has been, before the relevant date or during the relevant period, as the case may be, bona fide use of the trade mark by any proprietor thereof for the time being in relation to— (i) goods or services of the same description; or (ii) goods or services associated with those goods or services of that description being goods or services, as the case may be, in respect of which the trade mark is registered. (2) Where in relation to any goods or services in respect of which a trade mark is registered— (a) the circumstances referred to in clause (b) of sub-section (1) are shown to exist so far as regards non-use of the trade mark in relation to goods to be sold, or otherwise traded in a particular place in India (otherwise than for export from India), or in relation to goods to be exported to a particular market outside India; or in relation to services for use or available for acceptance in a particular place in India or for use in a particular market outside India; and (b) a person has been permitted under section 12 to register an identical or nearly resembling trade mark in respect of those goods, under a registration extending to use in relation to goods to be so sold, or otherwise traded in, or in relation to goods to be so exported, or in relation to services for use or available for acceptance in that place or for use in that country, or the tribunal is of opinion that he might properly be permitted so to register such a trade mark, on application by that person in the prescribed manner to the [2][High Court] or to the Registrar, the tribunal may impose on the registration of the first-mentioned trade mark such limitations as it thinks proper for securing that that registration shall cease to extend to such use. 1. Subs. by Act 33 of 2021, s. 21, for “tribunal” (w.e.f. 4-4-2021). 2. Subs. by s. 21, ibid., for “Appellate Board” (w.e.f. 4-4-2021). ----- (3) An applicant shall not be entitled to rely for the purpose of clause (b) of sub-section (1) or for the purposes of sub-section (2) on any non-use of a trade mark which is shown to have been due to special circumstances in the trade, which includes restrictions on the use of the trade mark in India imposed by any law or regulation and not to any intention to abandon or not to use the trade mark in relation to the goods or services to which the application relates. **48. Registered users.—(1) Subject to the provisions of section 49, a person other than the registered** proprietor of a trade mark may be registered as a registered user thereof in respect of any or all of the goods or services in respect of which the trade mark is registered. (2) The permitted use of a trade mark shall be deemed to be used by the proprietor thereof, and shall be deemed not to be used by a person other than the proprietor, for the purposes of section 47 or for any other purpose for which such use is material under this Act or any other law. **49. Registration as registered user.—(1) Where it is proposed that a person should be registered as** a registered user of a trade mark, the registered proprietor and the proposed registered user shall jointly apply in writing to the Registrar in the prescribed manner, and every such application shall be accompanied by— (a) the agreement in writing or a duly authenticated copy thereof, entered into between the registered proprietor and the proposed registered user with respect to the permitted use of the trade mark; and (b) an affidavit made by the registered proprietor or by some person authorised to the satisfication of the Registrar to act on his behalf,— (i) giving particulars of the relationship, existing or proposed, between the registered proprietor and the proposed registered user, including particulars showing the degree of control by the proprietor over the permitted use which their relationship will confer and whether it is a term of their relationship that the proposed registered user shall be the sole registered user or that there shall be any other restriction as to persons for whose registration as registered users application may be made; (ii) stating the goods or services in respect of which registration is proposed; (iii) stating the conditions or restrictions, if any, proposed with respect to the characteristics of the goods or services, to the mode or place of permitted use, or to any other matter; (iv) stating whether the permitted use is to be for a period or without limit of period, and, if for a period, the duration thereof; and (c) such further documents or other evidence as may be required by the Registrar or as may be prescribed. (2) When the requirements of sub-section (1) have been complied with, the Registrar shall register the proposed registered user in respect of the goods or services as to which he is so satisfied. (3) The Registrar shall issue notice in the prescribed manner of the registration of a person as a registered user, to other registered users of the trade mark, if any. (4) The Registrar shall, if so requested by the applicant, take steps for securing that information given for the purposes of an application under this section (other than matters entered in the register) is not disclosed to rivals in trade. **50. Power of Registrar for variation or cancellation of registration as registered user.—(1)** Without prejudice to the provisions of section 57, the registration of a person as registered user— (a) may be varied by the Registrar as regards the goods or services in respect of which it has effect on the application in writing in the prescribed manner of the registered proprietor of the trade mark; (b) may be cancelled by the Registrar on the application in writing in the prescribed manner of the registered proprietor or of the registered user or of any other registered user of the trade mark; ----- (c) may be cancelled by the Registrar on the application in writing in the prescribed manner of any person on any of the following grounds, namely:— (i) that the registered user has used the trade mark otherwise than in accordance with the agreement under clause (a) of sub-section (1) of section 49 or in such way as to cause or to be likely to cause, deception or confusion; (ii) that the proprietor or the registered user misrepresented, or failed to disclose, some fact material to the application for registration which if accurately represented or disclosed would not have justified the registration of the registered user; (iii) that the circumstances have changed since the date of registration in such a way that at the date of such application for cancellation they would not have justified registration of the registered user; (iv) that the registration ought not to have been effected having regard to rights vested in the applicant by virtue of a contract in the performance of which he is interested; (d) may be cancelled by the Registrar on his own motion or on the application in writing in the prescribed manner by any person, on the ground that any stipulation in the agreement between the registered proprietor and the registered user regarding the quality of the goods or services in relation to which the trade mark is to be used is either not being enforced or is not being complied with; (e) may be cancelled by the Registrar in respect of any goods or services in relation to which the trade mark is no longer registered. (2) The Registrar shall issue notice in the prescribed manner in respect of every application under this section to the registered proprietor and each registered user (not being the applicant) of the trade mark. (3) The procedure for cancelling a registration shall be such as may be prescribed: Provided that before cancelling of registration, the registered proprietor shall be given a reasonable opportunity of being heard. **51. Power of Registrar to call for information relating to agreement in respect of registered** **users.—(1) The Registrar may, at any time during the continuance of the registration of the registered** user, by notice in writing, require the registered proprietor to confirm to him within one month that the agreement filed under clause (a) of sub-section (1) of section 49 continues to be in force. (2) If the registered proprietor fails to furnish the confirmation within one month as required under sub-section (1), the registered user shall cease to be the registered user on the day immediately after the expiry of the said period and the Registrar shall notify the same. **52. Right of registered user to take proceedings against infringement.—(1) Subject to any** agreement subsisting between the parties, a registered user may institute proceedings for infringement in his own name as if he were the registered proprietor, making the registered proprietor a defendant and the rights and obligations of such registered user in such case being concurrent with those of the registered proprietor. (2) Notwithstanding anything contained in any other law, a registered proprietor so added as defendant shall not be liable for any costs unless he enters an appearance and takes part in the proceedings. **53. No right of permitted user to take proceeding against infringement.—A person referred to in** sub-clause (ii) of clause (r) of sub-section (1) of section 2 shall have no right to institute any proceeding for any infringement. **54. Registered user not to have right of assignment or transmission.—Nothing in this Act shall** confer on a registered user of a trade mark any assignable or transmissible right to the use thereof. _Explanation I.—The right of a registered user of a trade mark shall not be deemed to have been_ assigned or transmitted within the meaning of this section in the following cases, namely:— (a) where the registered user being an individual enters into a partnership with any other person for carrying on the business concerned; but in any such case the firm may use the trade mark, if otherwise in force, only for so long as the registered user is a member of the firm; ----- (b) where the registered user being a firm subsequently undergoes a change in its constitution; but in any such case the reconstituted firm may use the trade mark, if otherwise in force, only for so long as any partner of the original firm at the time of its registration as registered user, continues to be a partner of the reconstituted firm. _Explanation II.—For the purposes of_ _Explanation I, “firm” has the same meaning as in the Indian_ Partnership Act, 1932 (9 of 1932). **55. Use of one of associated or substantially identical trade marks equivalent to use of** **another.—(1) Where under the provisions of this Act, use of a registered trade mark is required to be** proved for any purpose, the [1][Registrar or the High Court, as the case may be] may, if and, so far as it shall think right, accept use of a registered associated trade mark, or of the trade mark with additions or alterations not substantially affecting its identity, as an equivalent for the use required to be proved. (2) The use of the whole of a registered trade mark shall, for the purpose of this Act, be deemed to be also use of any trade mark being a part thereof and registered in accordance with sub-section (1) of section 15 in the name of the same proprietor. (3) Notwithstanding anything in section 32, the use of part of the registered trade mark in sub-section (2) shall not be conclusive as to its evidence of distinctiveness for any purpose under this Act. **56. Use of trade mark for export trade and use when form of trade connection changes.—(1)** The application in India of trade mark to goods to be exported from India or in relation to services for use outside India and any other act done in India in relation to goods to be so exported or services so rendered outside India which, if done in relation to goods to be sold or services provided or otherwise traded in within India would constitute use of a trade mark therein, shall be deemed to constitute use of the trade mark in relation to those goods or services for any purpose for which such use is material under this Act or any other law. (2) The use of a registered trade mark in relation to goods or services between which and the person using the mark any form of connection in the course of trade subsists shall not be deemed to be likely to cause deception or confusion on the ground only that the mark has been or is used in relation to goods or services between which and the said person or a predecessor in title of that person a different form of connection in the course of trade subsisted or subsists. CHAPTER VII RECTIFICATION AND CORRECTION OF THE REGISTER **57. Power to cancel or vary registration and to rectify the register.—(1) On application made in** the prescribed manner to the [2][High Court] or to the Registrar by any person aggrieved, the [3][Register or the High Court, as the case may be,] may make such order as it may think fit for cancelling or varying the registration of a trade mark on the ground of any contravention, or failure to observe a condition entered on the register in relation thereto. (2) Any person aggrieved by the absence or omission from the register of any entry, or by any entry made in the register without sufficient cause, or by any entry wrongly remaining on the register, or by any error or defect in any entry in the register, may apply in the prescribed manner to the [2][High Court] or to the Registrar, and the [3][Register or the High Court, as the case may be,] may make such order for making, expunging or varying the entry as it may think fit. (3) The [3][Register or the High Court, as the case may be,] may in any proceeding under this section decide any question that may be necessary or expedient to decide in connection with the rectification of the register. (4) The [3][Register or the High Court, as the case may be,] of its own motion, may, after giving notice in the prescribed manner to the parties concerned and after giving them an opportunity of being heard, make any order referred to in sub-section (1) or sub-section (2). (5) Any order of the [2][High Court] rectifying the register shall direct that notice of the rectification shall be served upon the Registrar in the prescribed manner who shall upon receipt of such notice rectify the register accordingly. 1. Subs. by Act 33 of 2021, s. 21, for “tribunal” (w.e.f. 4-4-2021). 2. Subs. by s. 21, ibid., for “Appellate Board” (w.e.f. 4-4-2021). 3. Subs. by s. 21, ibid., for “tribunal” (w.e.f. 4-4-2021). ----- **58. Correction of register.—(1) The Registrar may, on application made in the prescribed manner** by the registered proprietor,— (a) correct any error in the name, address or description of the registered proprietor of a trade mark, or any other entry relating to the trade mark; (b) enter any change in the name, address or description of the person who is registered as proprietor of a trade mark; (c) cancel the entry of a trade mark on the register; (d) strike out any goods or classes of goods or services from those in respect of which a trade mark is registered, and may make any consequential amendment or alteration in the certificate of registration, and for that purpose, may require the certificate of registration to be produced to him. (2) The Registrar may, on application made in the prescribed manner by a registered user of a trade mark, and after notice to the registered proprietor, correct any error, or enter any change, in the name, address or description of the registered user. **59. Alteration of registered trade marks.—(1) The registered proprietor of a trade mark may apply** in the prescribed manner to the Registrar for leave to add to or alter the trade mark in any manner not substantially affecting the identity thereof, and the Registrar may refuse leave or may grant it on such terms and subject to such limitations as he may think fit. (2) The Registrar may cause an application under this section to be advertised in the prescribed manner in any case where it appears to him that it is expedient so to do, and where he does so, if within the prescribed time from the date of the advertisement any person gives notice to the Registrar in the prescribed manner of opposition to the application, the Registrar shall, after hearing the parties if so required, decide the matter. (3) Where leave is granted under this section, the trade mark as altered shall be advertised in the prescribed manner, unless the application has already been advertised under sub-section (2). **60. Adaptation of entries in register to amended or substituted classification of goods or** **services.—(1) The Registrar shall not make any amendment of the register which would have the effect** of adding any goods or classes of goods or services to those in respect of which a trade mark is registered (whether in one or more classes) immediately before the amendment is to be made or of antedating the registration of a trade mark in respect of any goods or services: Provided that this sub-section, shall not apply when the Registrar is satisfied that compliance therewith would involve undue complexity and that the addition or antedating, as the case may be, would not affect any substantial quantity of goods or services and would not substantially prejudice the rights of any person. (2) A proposal so to amend the register shall be brought to the notice of the registered proprietor of the trade mark affected and advertised in the prescribed manner, and may be opposed before the Registrar by any person aggrieved on the ground that the proposed amendment contravenes the provisions of sub-section (1). CHAPTER VIII COLLECTIVE MARKS **61. Special provisions for collective marks.—(1) The provisions of this Act shall apply to collective** marks subject to the provisions contained in this Chapter. (2) In relation to a collective mark the reference in clause (zb) of sub-section (1) of section 2 to distinguishing the goods or services of one person from those of others shall be construed as a reference to distinguishing the goods or services of members of an association of persons which is the proprietor of the mark from those of others. ----- **62. Collective mark not to be misleading as to character or significance.—A collective mark shall** not be registered if it is likely to deceive or cause confusion on the part of public in particular if it is likely to be taken to be something other than a collective mark, and in such case the Registrar may require that a mark in respect of which application is made for registration comprise some indication that it is a collective mark. **63. Application to be accompanied by regulations governing use of collective marks.—(1) An** application for registration of a collective mark shall be accompanied by the regulations governing the use of such collective mark. (2) The regulations referred to in sub-section (1) shall specify the persons authorised to use the mark, the conditions of membership of the association and, the conditions of use of the mark, including any sanctions against misuse and such other matters as may be prescribed. **64. Acceptance of application and regulations by Registrar.—If it appears to the Registrar that the** requirements for registration are satisfied, he shall accept the application together with the regulations, either unconditionally or subject to such conditions including amendments of the said regulations, if any, as he may deem fit or refuse to accept it and if accepted shall notify the regulations. **65. Regulations to be open to inspection.—The regulations referred to in sub-section (1) of section** 63 shall be open to public inspection in the same way as the register as provided in section 148. **66. Amendment of regulations.—Any amendment of regulations referred to in sub-section (1) of** section 63 shall not be effective unless the amended regulations are filed with the Registrar, and accepted and published by him in accordance with section 64. **67. Infringement proceedings by registered proprietor of collective mark.—In a suit for** infringement instituted by the registered proprietor of a collective mark as plaintiff the court shall take into account any loss suffered or likely to be suffered by authorised users and may give such directions as it thinks fit as to the extent to which the plaintiff shall hold the proceeds of any pecuniary remedy on behalf of such authorised users. **68. Additional grounds for removal of registration of collective mark.—The registration of a** collective mark may also be removed from the register on the ground— (a) that the manner in which the collective mark has been used by the proprietor or authorised user has caused it to become liable to mislead the public as a collective mark; or (b) that the proprietor has failed to observe, or to secure the observance of the regulations governing the use of the mark. _Explanation I.—For the purposes of this Chapter, unless the context otherwise requires, “authorised_ user” means a member of an association authorised to use the registered collective mark of the association. _Explanation II.—For the purposes of this Act, use of a collective mark by an authorised user referred_ to in Explanation I shall be deemed to be the use by the registered proprietor thereof. CHAPTER IX CERTIFICATION TRADE MARKS **69. Certain provisions of this Act not applicable to certification trade marks.—The following** provisions of this Act shall not apply to certification trade marks, that is to say,— (a) clauses (a) and (c) of sub-section (1) of section 9; (b) Sections 18, 20 and 21, except as expressly applied by this Chapter; (c) Sections 28, 29, 30, 41, 42, 47, 48, 49, 50, 52, 54 and sub-section (2) of section 56; (d) Chapter XII, except section 107. ----- **70. Registration of certification trade marks.—A mark shall not be registrable as a certification** trade mark in the name of a person who carries on a trade in goods of the kind certified or a trade of the provision of services of the kind certified. **71. Applications for registration of certification trade marks.—(1) An application for the** registration of a mark as a certification trade mark shall be made to the Registrar in the prescribed manner by the person proposed to be registered as the proprietor thereof, and accompanied by a draft for the regulations to be deposited under section 74. (2) Subject to the provisions of section 70, the provisions of sections 18, 19 and 22 shall apply in relation to an application under this section as they apply in relation to an application under section 18, subject to the modification that references therein to acceptance of an application shall be construed as references to authorisation to proceed with an application. (3) In dealing under the said provisions with an application under this section, the [1][Registrar or the High Court, as the case may be,] shall have regard to the like considerations, so far as relevant, as if the application were applications under section 18 and to any other considerations relevant to applications under this section, including the desirability of securing that a certification trade mark shall comprise some indication that it is a certification trade mark. **72. Consideration of application for registration by Registrar.—(1) The Registrar shall consider** the application made under section 71 with regard to the following matters, namely:— (a) whether the applicant is competent to certify the goods in respect of which the mark is to be registered; (b) whether the draft of the regulations to be filed under section 74 is satisfactory; (c) whether in all the circumstances the registration applied for would be to the public advantage, and may either— (i) refuse the application; or (ii) accept the application and approve the said draft of the regulations either without modification and unconditionally or subject to any conditions or limitations, or to any amendments or modifications of the application or of the regulations, which he thinks requisite having regard to any of the said matters. (2) Except in the case of acceptance and approval without modification and unconditionally, the Registrar shall not decide any matter under sub-section (1) without giving the applicant an opportunity of being heard. **73. Opposition to registration of certification trade marks.—When an application has been** accepted, the Registrar shall, as soon as may be thereafter, cause the application as accepted to be advertised in the prescribed manner, and the provisions of section 21 shall apply in relation to the registration of the mark as they apply in relation to an application under section 18. **74. Filing of regulations governing use of a certification trade mark.—(1) There shall be filed at** the Trade Marks Registry in respect of every mark registered as a certification trade mark regulations for governing the use thereof, which shall include provisions as to the cases in which the proprietor is to certify goods or services and to authorise the use of the certification trade mark, and may contain any other provisions which the Registrar may by general or special order, require or permit to be inserted therein (including provisions conferring a right of appeal to the Registrar against any refusal of the proprietor to certify goods or to authorise the use of the certification trade mark in accordance with the regulations); and regulations so filed shall be open to inspection in like manner as the register as provided in section 148. (2) The regulations so filed may, on the application of the registered proprietor, be altered by the Registrar. (3) The Registrar may cause such application to be advertised in any case where it appears to him expedient so to do, and where he does so, if within the time specified in the advertisement any person 1. Subs. by Act 33 of 2021, s. 21, for “tribunal” (w.e.f. 4-4-2021). ----- gives notice of opposition to the application, the Registrar shall not decide the matter without giving the parties an opportunity of being heard. **75. Infringement of certification trade marks.—The right conferred by section 78 is infringed by** any person who, not being the registered proprietor of the certification trade mark or a person authorised by him in that behalf under the regulations filed under section 74, using it in accordance therewith, uses in the course of trade, a mark, which is identical with, or deceptively similar to the certification trade mark in relation to any goods or services in respect of which it is registered, and in such manner as to render the use of the mark likely to be taken as being a use as a trade mark. **76. Acts not constituting infringement of certification trade marks.—(1) Notwithstanding** anything contained in this Act, the following acts do not constitute an infringement of the right to the use of a registered certification trade mark— (a) where a certification trade mark is registered subject to any conditions or limitations entered on the register, the use of any such mark in any mode, in relation to goods to be sold or otherwise traded in any place, or in relation to goods to be exported to any market or in relation to services for use or available for acceptance in any place, country or territory or in any other circumstances, to which having regard to any such limitations, the registration does not extend; (b) the use of a certification trade mark in relation to goods or services certified by the proprietor of the mark if, as to those goods or services or a bulk of which they form part, the proprietor or another in accordance with his authorisation under the relevant regulations has applied the mark and has not subsequently removed or obliterated it, or the proprietor has at any time expressly or impliedly consented to the use of the mark; (c) the use of a certification trade mark in relation to goods or services adapted to form part of, or to be accessory to, other goods in relation to which the mark has been used without infringement of the right given as aforesaid or might for the time being be so used, if the use of the mark is reasonably necessary in order to indicate that the goods or services are so adapted and neither the purpose nor the effect of the use of the mark is to indicate otherwise than in accordance with the fact that the goods or services are certified by the proprietor. (2) Clause (b) of sub-section (1) shall not apply to the case of use consisting of the application of a certification trade mark to goods or services, notwithstanding that they are such goods or services as are mentioned in that clause if such application is contrary to the regulations referred to in that clause. (3) Where a certification trade mark is one of two or more trade marks registered under this Act, which are identical or nearly resemble each other, the use of any of those trade marks in exercise of the right to the use of that trade mark given by registration, shall not be deemed to be an infringement of the right so given to the use of any other of those trade marks. **77. Cancellation or varying of registration of certification trade marks.—The Registrar may, on** the application in the prescribed manner of any person aggrieved and after giving the proprietor an opportunity of opposing the application, make such order as he thinks fit for expunging or varying any entry in the register to a certification trade mark, or for varying the regulations, on any of the following grounds, namely:— (a) that the proprietor is no longer competent, in the case of any of the goods or services in respect of which the mark is registered, to certify those goods or services; (b) that the proprietor has failed to observe any provisions of the regulations to be observed on his part; (c) that it is no longer to the public advantage that the mark should remain registered; (d) that it is requisite for the public advantage that if the mark remains registered, the regulations should be varied. **78. Rights conferred by registration of certification trade marks.—(1) Subject to the provisions** of sections 34, 35 and 76, the registration of a person as a proprietor of certification trade mark in respect of any goods or services shall, if valid, give to that person the exclusive right to the use of the mark in relation to those goods or services. ----- (2) The exclusive right to the use of a certification trade mark given under sub-section (1) shall be subject to any conditions and limitations to which the registration is subject. [CHAPTER X.—SPECIAL PROVISIONS FOR TEXTILE GOODS.]—Omitted by the Trade Marks (Amendment) Act, 2010 (40 of 2010), s. 7 (w.e.f. 8-7-2013). **79. [Textile goods.]—Omitted by s. 7, ibid. (w.e.f. 8-7-2013).** **80. [Restriction on registration of textile goods.]—Omitted by s. 7, ibid. (w.e.f. 8-7-2013).** **81. [Stamping of piece goods, cotton yarn and thread.]— Omitted by s. 7, ibid. (w.e.f. 8-7-2013).** **82. [Determination of character of textile goods by sampling.]—Omitted by s. 7, ibid. (w.e.f. 8-7-** 2013). CHAPTER XI 1[APPEALS] **83. [Establishment of Appellate Board.]—Omitted by The Tribunal Reforms Act, 2021 (33 of 2021),** _s. 21 (w.e.f. 4-4-2021)._ **84. [Composition of Appellate Board.]—Omitted by s. 21, ibid. (w.e.f. 4-4-2021).** **85. [Qualifications for appointment as Chairperson,** **_Vice-Chairperson,_** **_or other Members.]—_** _Omitted by s. 21, ibid. (w.e.f. 4-4-2021)._ **86. [Term of office of** **_Chairperson,_** **_Vice-Chairperson_** **_and other Members.]—Omitted by s. 21,_** _ibid. (w.e.f. 4-4-2021)._ **87. [Vice-Chairperson** **_or senior-most Member to act as_** **_Chairperson_** **_or discharge his functions in_** **_certain circumstances.]— Omitted by s. 21, ibid. (w.e.f. 4-4-2021)._** **88. [Salaries, allowances and other terms and conditions of service of Chairperson,** **_Vice-_** **[Chairperson] and other Members.]—Omitted by s. 21, ibid. (w.e.f. 4-4-2021).** **89. [Resignation and removal.]—Omitted by s. 21, ibid. (w.e.f. 4-4-2021).** **89A. [Qualifications, terms and conditions of service of Chairperson, Vice-Chairperson and** **_member.]—Omitted by s. 21, ibid. (w.e.f. 4-4-2021)._** **90. [Staff of Appellate Board.]—Omitted by s. 21, ibid. (w.e.f. 4-4-2021).** **91. Appeals to** **[2][High Court].—(1) Any person aggrieved by an order or decision of the Registrar** under this Act, or the rules made thereunder may prefer an appeal to the [2][High Court] within three months from the date on which the order or decision sought to be appealed against is communicated to such person preferring the appeal. (2) No appeal shall be admitted if it is preferred after the expiry of the period specified under sub-section (1): Provided that an appeal may be admitted after the expiry of the period specified therefor, if the appellant satisfies the [2][High Court] that he had sufficient cause for not preferring the appeal within the specified period. (3) An appeal to the [2][High Court] shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a copy of the order or decision appealed against and by such fees as may be prescribed. **92. [Procedure and powers of Appellate Board.]—Omitted by The Tribunal Reforms Act, 2021 (33** _of 2021), s. 21 (w.e.f. 4-4-2021)._ **93. [Bar of jurisdiction of courts, etc.]—Omitted by** _s. 21, ibid. (w.e.f. 4-4-2021)._ **3[94. Bar to appear before Registrar.—On ceasing to hold the office, the erstwhile Chairperson,** Vice-Chairperson or other Members shall not appear before the Registrar.] **95. [Conditions as to making of interim orders.]—Omitted by The Tribunal Reforms Act, 2021 (33** _of 2021), s. 21 (w.e.f. 4-4-2021)._ 1. Subs. by Act 33 of 2021, s. 21, for “APPELLATE BOARD” (w.e.f. 4-4-2021). 2. Subs. by Act 33 of 2021, s. 21, for “Appellate Board” (w.e.f. 4-4-2021). 3. Subs. by s. 21, ibid, for section 94 (w.e.f. 4-4-2021). ----- **96. [Power of** **_Chairperson_** **_to transfer cases from one Bench to another.]—Omitted by_** _s. 21, ibid._ (w.e.f. 4-4-2021). **97. Procedure for application for rectification, etc., before [1][High Court].—(1) An application for** rectification of the register made to the [1][High Court] under section 57 shall be in such form as may be prescribed. (2) A certified copy of every order or judgment of the [1][High Court] relating to a registered trade mark under this Act shall be communicated to the Registrar by the Board and the Registrar shall give effect to the order of the Board and shall, when so directed, amend the entries in, or rectify, the register in accordance with such order. **98. Appearance of Registrar in legal proceedings.—(1) The Registrar shall have the right to appear** and be heard— (a) in any legal proceedings before the [1][High Court] in which the relief sought includes alteration or rectification of the register or in which any question relating to the practice of the Trade Marks Registry is raised; (b) in any appeal to the [2][High Court] from an order of the Registrar on an application for registration of a trade mark— (i) which is not opposed, and the application is either refused by the Registrar or is accepted by him subject to any amendments, modifications, conditions or limitations, or (ii) which has been opposed and the Registrar considers that his appearance is necessary in the public interest, and the Registrar shall appear in any case if so directed by the [2][High Court]. (2) Unless the [1][High Court] otherwise directs, the Registrar may, in lieu of appearing, submit a statement in writing signed by him, giving such particulars as he thinks proper of the proceedings before him relating to the matter in issue or of the grounds of any decision given by him affecting it, or of the practice of the Trade Marks Registry in like cases, or of other matters relevant to the issues and within his knowledge as Registrar, and such statement shall be evidence in the proceeding. **99. [Costs of Registrar in proceedings before Appellate Board.]—Omitted by The Tribunals** _Reforms Act, 2021 (33 of 2021), s. 21 (w.e.f. 4-4-2021)._ **100. [Transfer of pending proceedings to Appellate Board.]—Omitted by s. 21,** _ibid._ (w.e.f. 4-4-2021). CHAPTER XII OFFENCES, PENALTIES AND PROCEDURE **101. Meaning of applying trade marks and trade descriptions.—(1) A person shall be deemed to** apply a trade mark or mark or trade description to goods or services who— (a) applies it to the goods themselves or uses it in relation to services; or (b) applies it to any package in or with which the goods are sold, or exposed for sale, or had in possession for sale or for any purpose of trade or manufacture; or (c) places, encloses or annexes any goods which are sold, or exposed for sale, or had in possession for sale or for any purpose of trade or manufacture, in or with any package or other thing to which a trade mark or mark or trade description has been applied; or (d) uses a trade mark or mark or trade description in any manner reasonably likely to lead to the belief that the goods or services in connection with which it is used are designated or described by that trade mark or mark or trade description; or 1. Subs. by Act 33 of 2021, s. 21, for “Appellate Board” (w.e.f. 4-4-2021). 2. Subs. by s. 21, ibid., for “Board” (w.e.f. 4-4-2021). ----- (e) in relation to the goods or services uses a trade mark or trade description in any sign, advertisement, invoice, catalogue, business letter, business paper, price list or other commercial document and goods are delivered or services are rendered to a person in pursuance of a request or order made by reference to the trade mark or trade description as so used. (2) A trade mark or mark or trade description shall be deemed to be applied to goods whether it is woven in, impressed on, or otherwise worked into, or annexed or affixed to, the goods or to any package or other thing. **102. Falsifying and falsely applying trade marks.—(1) A person shall be deemed to falsify a trade** mark who, either,— (a) without the assent of the proprietor of the trade mark makes that trade mark or a deceptively similar mark; or (b) falsifies any genuine trade mark, whether by alteration, addition, effacement or otherwise. (2) A person shall be deemed to falsely apply to goods or services a trade mark who, without the assent of the proprietor of the trade mark,— (a) applies such trade mark or a deceptively similar mark to goods or services or any package containing goods; (b) uses any package bearing a mark which is identical with or deceptively similar to the trade mark of such proprietor, for the purpose of packing, filling or wrapping therein any goods other than the genuine goods of the proprietor of the trade mark. (3) Any trade mark falsified as mentioned in sub-section (1) or falsely applied as mentioned in sub-section (2), is in this Act referred to as a false trade mark. (4) In any prosecution for falsifying a trade mark or falsely applying a trade mark to goods or services, the burden of proving the assent of the proprietor shall lie on the accused. **103. Penalty for applying false trade marks, trade descriptions, etc.—Any person who—** (a) falsifies any trade mark; or (b) falsely applies to goods or services any trade mark; or (c) makes, disposes of, or has in his possession, any die, block, machine, plate or other instrument for the purpose of falsifying or of being used for falsifying, a trade mark; or (d) applies any false trade description to goods or services; or (e) applies to any goods to which an indication of the country or place in which they were made or produced or the name and address of the manufacturer or person for whom the goods are manufactured is required to be applied under section 139, a false indication of such country, place, name or address; or (f) tampers with, alters or effaces an indication of origin which has been applied to any goods to which it is required to be applied under section 139; or (g) causes any of the things above mentioned in this section to be done, shall, unless he proves that he acted, without intent to defraud, be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees: Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees. **104. Penalty for selling goods or providing services to which false trade mark or false trade** **description is applied.—Any person who sells, lets for hire or exposes for sale, or hires or has in his** possession for sale, goods or things, or provides or hires services, to which any false trade mark or false trade description is applied or which, being required under section 139 to have applied to them an indication of the country or place in which they were made or produced or the name and address of the ----- manufacturer, or person for whom the goods are manufactured or services provided, as the case may be, are without the indications so required, shall, unless he proves,— (a) that, having taken all reasonable precautions against committing an offence against this section, he had at the time of commission of the alleged offence no reason to suspect the genuineness of the trade mark or trade description or that any offence had been committed in respect of the goods or services; or (b) that, on demand by or on behalf of the prosecutor, he gave all the information in his power with respect to the person from whom he obtained such goods or things or services; or (c) that otherwise he had acted innocently, be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees: Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees. **105. Enhanced penalty on second or subsequent conviction.—Whoever having already been** convicted of an offence under section 103 or section 104 is again convicted of any such offence shall be punishable for the second and for every subsequent offence, with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to two lakh rupees: Provided that the court may, for adequate and special reason to be mentioned in the judgement, impose a sentence of imprisonment for a term of less than one year or a fine of less than one lakh rupees: Provided further that for the purposes of this section, no cognizance shall be taken of any conviction made before the commencement of this Act. **106. [Penalty for removing piece goods, etc., contrary to section 81.]—Omitted by The Jan** _Vishwas (Amendment of Provisions) Act, 2023 (18 of 2023), s. 2 and Schedule (w.e.f. 1-8-2024)._ **107. Penalty for falsely representing a trade mark as registered.—(1) No person shall make any** representation— (a) with respect to a mark, not being a registered trade mark, to the effect that it is a registered trade mark; or (b) with respect to a part of a registered trade mark, not being a part separately registered as a trade mark, to the effect that it is separately registered as a trade mark; or (c) to the effect that a registered trade mark is registered in respect of any goods or services in respect of which it is not in fact registered; or (d) to the effect that registration of a trade mark gives an exclusive right to the use thereof in any circumstances in which, having regard to limitation entered on the register, the registration does not in fact give that right. (2) If any person contravenes any of the provisions of sub-section (1), he shall be [1][liable to penalty of a sum equal to one half per cent. of the total sales or turnover, as the case may be, in business or of the gross receipts in profession, as computed in the audited accounts of such person, or a sum equal to five lakh rupees, whichever is less]. (3) For the purposes of this section, the use in India in relation to a trade mark of the word “registered”, or of any other expression, symbol or sign referring whether expressly or impliedly to registration, shall be deemed to import a reference to registration in the register, except— (a) where that word or other expression, symbol or sign is used in direct association with other words delineated in characters at least as large as those in which that word or other expression, 1. Subs. by Act 18 of 2023, s. 2 and Schedule, for certain words (w.e.f. 1-8-2024). ----- symbol or sign is delineated and indicating that the reference is to registration as a trade mark under the law of a country outside India being a country under the law of which the registration referred to is in fact in force; or (b) where that other expression, symbol or sign is of itself such as to indicate that the reference is to such registration as is mentioned in clause (a); or (c) where that word is used in relation to a mark registered as a trade mark under the law of a country outside India and in relation solely to goods to be exported to that country or in relation to services for use in that country. **108. [Penalty for improperly describing a place of business as connected with the Trade Marks** **Office.]—Omitted by The Jan Vishwas (Amendment of Provisions) Act, 2023 (18** _of 2023),_ _s. 2_ _and_ _Schedule (w.e.f. 1-8-2024)._ **109. [Penalty for falsification of entries in the register.]—Omitted by s. 2** _and Schedule, ibid._ (w.e.f. 1-8-2024). **110. No offence in certain cases.—The provisions of sections 102, 103, 104 and 105 shall, in** relation to a registered trade mark or proprietor of such mark, be subject to the rights created or recognised by this Act and no act or omission shall be deemed to be an offence under the aforesaid sections if,— (a) the alleged offence relates to a registered trade mark and the act or omission is permitted under this Act; and (b) the alleged offence relates to a registered or an unregistered trade mark and the act or omission is permitted under any other law for the time being in force. **111. Forfeiture of goods.—(1) Where a person is convicted of an offence under section 103 or** section 104 or section 105 or is acquitted of an offence under section 103 or section 104 on proof that he acted without intent to defraud, or under section 104 on proof of the matters specified in clause (a), clause (b) or clause (c) of that section, the court convicting or acquitting him may direct the forfeiture to Government of all goods and things by means of, or in relation to, which the offence has been committed, or but for such proof as aforesaid would have been committed. (2) When a forfeiture is directed on a conviction and an appeal lies against the conviction, an appeal shall lie against the forfeiture also. (3) When a forfeiture is directed on acquittal and the goods or things to which the direction relates are of value exceeding fifty rupees, an appeal against the forfeiture may be preferred, within thirty days from the date of the direction, to the court to which in appealable cases appeals lie from sentences of the court which directed the forfeiture. (4) When a forfeiture is directed on a conviction, the court, before whom the person is convicted, may order any forfeited articles to be destroyed or otherwise disposed of as the court thinks fit. **112. Exemption of certain persons employed in ordinary course of business.—Where a person** accused of an offence under section 103 proves— (a) that in the ordinary course of his business he is employed on behalf of other persons to apply trade marks or trade descriptions, or as the case may be, to make dies, blocks, machines, plates, or other instruments for making, or being used in making, trade marks; and (b) that in the case which is the subject of the charge he was so employed, and was not interested in the goods or other thing by way of profit or commission dependent on the sale of such goods or providing of services, as the case may be; and (c) that, having taken all reasonable precautions against committing the offence charged, he had, at the time of the commission of the alleged offence, no reason to suspect the genuineness of the trade mark or trade description; and (d) that, on demand made by or on behalf of the prosecutor, he gave all the information in his power with respect to the persons on whose behalf the trade mark or trade description was applied, he shall be acquitted. ----- 1[112A. Adjudication of penalties.— The Registrar may, by an order, authorise an officer referred to in section 3, to be adjudicating officer for holding an inquiry and imposing penalty under the provisions of this Act, in the manner as may be prescribed, after giving a reasonable opportunity of being heard. **112B. Appeal.—(1) Whoever aggrieved by an order of the adjudicating officer under section 112A** may prefer an appeal to the appellate authority, who shall be an officer at least one rank above the adjudicating officer, within a period of sixty days from the date of receipt of the order, as the Central Government may by notification authorise in this behalf (2) Every appeal under this section shall be preferred in such form and manner as may be prescribed. (3) An appeal may be admitted after the expiry of the period of sixty days if the appellant satisfies the appellate authority that he had sufficient cause for not preferring the appeal within that period. (4) No appeal shall be disposed of unless the appellant has been given a reasonable opportunity of being heard. (5) The appellate authority referred to in sub-section (1) shall dispose of the appeal within sixty days from the date of filing. (6) Notwithstanding anything contained in this Act, if the person fails to comply with the order of the adjudicating officer under section 112A or the order of the appellate authority under this section, as the case may be, within ninety days of such order, he shall, in addition to the penalty, be punishable with fine of one lakh rupees or imprisonment for a term which may extend to one year, or with both.] **113. Procedure where invalidity of registration is pleaded by the accused.—(1) Where the** offence charged under section 103 or section 104 or section 105 is in relation to a registered trade mark and the accused pleads that the registration of the trade mark is invalid, the following procedure shall be followed:— (a) If the court is satisfied that such defence is prima facie tenable, it shall not proceed with the charge but shall adjourn the proceeding for three months from the date on which the plea of the accused is recorded to enable the accused to file an application before the [2][High Court] under this Act, for the rectification of the register on the ground that the registration is invalid. (b) If the accused proves to the court that he has made such application within the time so limited or within such further time as the court may for sufficient cause allow, the further proceedings in the prosecution shall stand stayed till the disposal of such application for rectification. (c) If within a period of three months or within such extended time as may be allowed by the court the accused fails to apply to the [2][High Court] for rectification of the register, the court shall proceed with the case as if the registration were valid. (2) Where before the institution of a complaint of an offence referred to in sub-section (1), any application for the rectification of the register concerning the trade mark in question on the ground of invalidity of the registration thereof has already been properly made to and is pending before the 3[Registrar or the High Court, as the case may be,], the court shall stay the further proceedings in the prosecution pending the disposal of the application aforesaid and shall determine the charge against the accused in conformity with the result of the application for rectification in so far as the complainant relies upon the registration of his mark. **114. Offences by companies.—(1) If the person committing an offence under this Act is a company,** the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 1. Ins. by Act 18 of 2023, s. 2 and Schedule (w.e.f. 1-8-2024). 2. Subs. by Act 33 of 2021, s. 21, for “Appellate Board” (w.e.f. 4-4-2021). 3. Subs. by s. 21, ibid., for “tribunal” (w.e.f. 4-4-2021). ----- Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **115. Cognizance of certain offences and the powers of police officer for search and seizure.—(1)** No court shall take cognizance of an offence under section 107 or section 108 or section 109 except on complaint in writing made by the Registrar or any officer authorised by him in writing: Provided that in relation to clause (c) of sub-section (1) of section 107, a court shall take cognizance of an offence on the basis of a certificate issued by the Registrar to the effect that a registered trade mark has been represented as registered in respect of any goods or services in respect of which it is not in fact registered. (2) No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the first class shall try an offence under this Act. (3) The offences under section 103 or section 104 or section 105 shall be cognizable. (4) Any police officer not below the rank of deputy superintendent of police or equivalent, may, if he is satisfied that any of the offences referred to in sub-section (3) has been, is being, or is likely to be, committed, search and seize without warrant the goods, die, block, machine, plate, other instruments or things involved in committing the offence, wherever found, and all the articles so seized shall, as soon as practicable, be produced before a Judicial Magistrate of the first class or Metropolitan Magistrate, as the case may be: Provided that the police officer, before making any search and seizure, shall obtain the opinion of the Registrar on facts involved in the offence relating to trade mark and shall abide by the opinion so obtained. (5) Any person having an interest in any article seized under sub-section (4), may, within fifteen days of such seizure, make an application to the Judicial Magistrate of the first class or Metropolitan Magistrate, as the case may be, for such article being restored to him and the Magistrate, after hearing the applicant and the prosecution, shall make such order on the application as he may deem fit. **116. Evidence of origin of goods imported by sea.—In the case of goods brought into India by sea,** evidence of the port of shipment shall, in a prosecution for an offence under this Act or under clause (b) of section 112 of the Customs Act, 1962 (52 of 1962) relating to confiscation of goods under clause (d) of section 111 and notified by the Central Government under clause (n) of sub-section (2) of section 11 of the said Act for the protection of trade marks relating to import of goods, be prima _facie evidence of the_ place or country in which the goods were made or produced. **117. Costs of defence or prosecution.—In any prosecution under this Act, the court may order such** costs to be paid by the accused to the complainant, or by the complainant to the accused, as the court deems reasonable having regard to all the circumstances of the case and the conduct of the parties and the costs so awarded shall be recoverable as if they were a fine. **118. Limitation of prosecution.—No prosecution for an offence under this Act or under clause (b)** of section 112 of the Customs Act,1962 (52 of 1962), relating to confiscation of goods under clause (d) of section 111 and notified by the Central Government under clause (n) of sub-section (2) of section 11 of the said Act for the protection of trade marks, relating to import of goods shall be commenced after ----- expiration of three years next after the commission of the offence charged, or two years after the discovery thereof by the prosecutor, whichever expiration first-happens. **119. Information as to commission of offence.—An officer of the Government whose duty it is to** take part in the enforcement of the provisions of this Chapter shall not be compelled in any court to say whence he got any information as to the commission of any offence against this Act. **120. Punishment of abetment in India of acts done out of India.—If any person, being within** India, abets the commission, without India, of any act which, if committed in India, would, under this Act, be an offence, he may be tried for such abetment in any place in India in which he may be found, and be punished therefor with the punishment to which he would be liable if he had himself committed in that place the act which he abetted. **121. Instructions of Central Government as to permissible variation to be observed by criminal** **courts.—The Central Government may, by notification in the Official Gazette, issue instructions for the** limits of variation, as regards number, quantity, measure, gauge or weight which are to be recognised by criminal courts as permissible in the case of any goods. CHAPTER XIII MISCELLANEOUS **122. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any person in respect of anything which is in good faith done or intended to be done in pursuance of this Act. **123. Certain persons to be public servants.—Every person appointed under this Act [1]*** shall be** deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **124. Stay of proceedings where the validity of registration of the trade mark is questioned,** **etc.—(1) Where in any suit for infringement of a trade mark—** (a) the defendant pleads that registration of the plaintiff’s trade mark is invalid; or (b) the defendant raises a defence under clause (e) of sub-section (2) of section 30 and the plaintiff pleads the invalidity of registration of the defendant’s trade mark, the court trying the suit (hereinafter referred to as the court), shall,— (i) if any proceedings for rectification of the register in relation to the plaintiff’s or defendant’s trade mark are pending before the Registrar or the [2][High Court], stay the suit pending the final disposal of such proceedings; (ii) if no such proceedings are pending and the court is satisfied that the plea regarding the invalidity of the registration of the plaintiff’s or defendant’s trade mark is prima facie tenable, raise an issue regarding the same and adjourn the case for a period of three months from the date of the framing of the issue in order to enable the party concerned to apply to the [2][High Court] for rectification of the register. (2) If the party concerned proves to the court that he has made any such application as is referred to in clause (b) (ii) of sub-section (1) within the time specified therein or within such extended time as the court may for sufficient cause allow, the trial of the suit shall stand stayed until the final disposal of the rectification proceedings. (3) If no such application as aforesaid has been made within the time so specified or within such extended time as the court may allow, the issue as to the validity of the registration of the trade mark concerned shall be deemed to have been abandoned and the court shall proceed with the suit in regard to the other issues in the case. (4) The final order made in any rectification proceedings referred to in sub-section (1) or sub-section (2) shall be binding upon the parties and the court shall dispose of the suit conformably to such order in so far as it relates to the issue as to the validity of the registration of the trade mark. 1. The words “and every Member of the Appellate Board” omitted by Act 33 of 2021, s. 21 (w.e.f. 4-4-2021). 2. Subs. by s. 21, ibid., for “Appellate Board” (w.e.f. 4-4-2021). ----- (5) The stay of a suit for the infringement of a trade mark under this section shall not preclude the court from making any interlocutory order (including any order granting an injunction, directing account to be kept, appointing a receiver or attaching any property), during the period of the stay of the suit. **125. Application for rectification of register to be made to** **[2][High Court] in certain cases.—(1)** Where in a suit for infringement of a registered trade mark the validity of the registration of the plaintiff’s trade mark is questioned by the defendant or where in any such suit the defendant raises a defence under clause (e) of sub-section (2) of section 30 and the plaintiff questions the validity of the registration of the defendant’s trade mark, the issue as to the validity of the registration of the trade mark concerned shall be determined only on an application for the rectification of the register and, notwithstanding anything contained in section 47 or section 57, such application shall be made to the [1][High Court] and not the Registrar. (2) Subject to the provisions of sub-section (1), where an application for rectification of the register is made to the Registrar under section 47 or section 57, the Registrar may, if he thinks fit, refer the application at any stage of the proceedings to the [1][High Court]. **126. Implied warranty on sale of marked goods.—Where a mark or a trade mark or trade** description has been applied to the goods on sale or in the contract for sale of any goods or in relation to any service, the seller shall be deemed to warrant that the mark is a genuine mark and not falsely applied, or that the trade description is not a false trade description within the meaning of this Act unless the contrary is expressed in writing signed by or on behalf of the seller and delivered at the time of the sale of goods or providing of services on contract to and accepted by the buyer. **127. Powers of Registrar.—In all proceedings under this Act before the Registrar,—** (a) the Registrar shall have all the powers of a civil court for the purposes of receiving evidence, administering oaths, enforcing the attendance of witnesses, compelling the discovery and production of documents and issuing commissions for the examination of witnesses; (b) the Registrar may, subject to any rules made in this behalf under section 157, make such orders as to costs as he considers reasonable, and any such order shall be executable as a decree of a civil court: Provided that the Registrar shall have no power to award costs to or against any party on an appeal to him against a refusal of the proprietor of a certification trade mark to certify goods or provision of services or to authorise the use of the mark; (c) the Registrar may, on an application made in the prescribed manner, review his own decision. **128. Exercise of discretionary power by Registrar.—Subject to the provisions of section 131, the** Registrar shall not exercise any discretionary or other power vested to him by this Act or the rules made thereunder adversely to a person applying for the exercise of that power without (if so required by that person within the prescribed time) giving to the person an opportunity of being heard. **129. Evidence before Registrar.—In any proceeding under this Act before the Registrar, evidence** shall be given by affidavit: Provided that the Registrar may, if he thinks fit, take oral evidence in lieu of, or in addition to, such evidence by affidavit. **130. Death of party to a proceeding.—If a person who is a party to a proceeding under this Act (not** being a proceeding before [2]*** a court) dies pending the proceeding, the Registrar may, on request, and on proof to his satisfaction of the transmission of the interest of the deceased person, substitute in the proceeding his successor in interest in his place, or, if the Registrar is of opinion that the interest of the deceased person is sufficiently represented by the surviving parties, permit the proceeding to continue without the substitution of his successor in interest. **131. Extension of time.—(1) If the Registrar is satisfied, on application made to him in the** prescribed manner and accompanied by the prescribed fee, that there is sufficient cause for extending the 1. Subs. by Act 33 of 2021, s. 21, for “Appellate Board” (w.e.f. 4-4-2021). 2. The words “the Appellate Board or” omitted by Act 33 of 2021, s. 21 (w.e.f. 4-4-2021). ----- time for doing any act (not being a time expressly provided in this Act), whether the time so specified has expired or not, he may, subject to such conditions as he may think fit to impose, extend the time and inform the parties accordingly. (2) Nothing in sub-section (1) shall be deemed to require the Registrar to hear the parties before disposing of an application for extension of time, and no appeal shall lie from any order of the Registrar under this section. **132. Abandonment.—Where, in the opinion of the Registrar, an applicant is in default in the** prosecution of an application filed under this Act or any Act relating to trade marks in force prior to the commencement of this Act, the Registrar may, by notice require the applicant to remedy the default within a time specified and after giving him, if so, desired, an opportunity of being heard, treat the application as abandoned, unless the default is remedied within the time specified in the notice. **133. Preliminary advice by the Registrar as to distinctiveness.—(1) The Registrar may, on** application made to him in the prescribed manner by any person who proposes to apply for the registration of a trade mark, give advice as to whether the trade mark appears to him _prima facie to be_ distinctive. (2) If, on an application for the registration of a trade mark as to which the Registrar has given advice as aforesaid in the affirmative made within three months after the advice was given, the Registrar, after further investigation or consideration, gives notice, to the applicant of objection on the ground that the trade mark is not distinctive, the applicant shall be entitled, on giving notice of withdrawal of the application within the prescribed period, to have repaid to him any fee paid on the filing of the application. **134. Suit for infringement, etc., to be instituted before District Court.—(1) No suit—** (a) for the infringement of a registered trade mark; or (b) relating to any right in a registered trade mark; or (c) for passing off arising out of the use by the defendant of any trade mark which is identical with or deceptively similar to the plaintiff’s trade mark, whether registered or unregistered, shall be instituted in any court inferior to a District Court having jurisdiction to try the suit. (2) For the purpose of clauses (a) and (b) of sub-section (1), a “District Court having jurisdiction” shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908) or any other law for the time being in force, include a District Court within the local limits of whose jurisdiction, at the time of the institution of the suit or other proceeding, the person instituting the suit or proceeding, or, where there are more than one such persons any of them, actually and voluntarily resides or carries on business or personally works for gain. _Explanation.—For the purposes of sub-section (2), “person” includes the registered proprietor and_ the registered user. **135. Relief in suits for infringement or for passing off.—(1) The relief which a court may grant in** any suit for infringement or for passing off referred to in section 134 includes injunction (subject to such terms, if any, as the court thinks fit) and at the option of the plaintiff, either damages or an account of profits, together with or without any order for the delivery-up of the infringing labels and marks for destruction or erasure. (2) The order of injunction under sub-section (1) may include an _ex parte injunction or any_ interlocutory order for any of the following matters, namely:— (a) for discovery of documents; (b) preserving of infringing goods, documents or other evidence which are related to the subject-matter of the suit; (c) restraining the defendant from disposing of or dealing with his assets in a manner which may adversely affect plaintiff’s ability to recover damages, costs or other pecuniary remedies which may be finally awarded to the plaintiff. ----- (3) Notwithstanding anything contained in sub-section (1), the court shall not grant relief by way of damages (other than nominal damages) or on account of profits in any case— (a) where in a suit for infringement of a trade mark, the infringement complained of is in relation to a certification trade mark or collective mark; or (b) where in a suit for infringement the defendant satisfies the court— (i) that at the time he commenced to use the trade mark complained of in the suit, he was unaware and had no reasonable ground for believing that the trade mark of the plaintiff was on the register or that the plaintiff was a registered user using by way of permitted use; and (ii) that when he became aware of the existence and nature of the plaintiff’s right in the trade mark, he forthwith ceased to use the trade mark in relation to goods or services in respect of which it was registered; or (c) where in a suit for passing off, the defendant satisfies the court— (i) that at the time he commenced to use the trade mark complained of in the suit, he was unaware and had no reasonable ground for believing that the trade mark for the plaintiff was in use; and (ii) that when he became aware of the existence and nature of the plaintiff’s trade mark he forthwith ceased to use the trade mark complained of. **136. Registered user to be impleaded in certain proceedings.—(1) In every proceeding under** chapter VII or under section 91, every registered user of a trade mark using by way of permitted use, who is not himself an applicant in respect of any proceeding under that Chapter or section, shall be made a party to the proceeding. (2) Notwithstanding anything contained in any other law, a registered user so made a party to the proceeding shall not be liable for any costs unless he enters an appearance and takes part in the proceeding. **137. Evidence of entries in register, etc., and things done by the Registrar.—(1) A copy of any** entry in the register or of any document referred to in sub-section (1) of section 148 purporting to be certified by the Registrar and sealed with the seal of the Trade Marks Registry shall be admitted in evidence in all courts and in all proceedings without further proof or production of the original. (2) A certificate purporting to be under the hand of the Registrar as to any entry, matter or thing that he is authorised by this Act or the rules to make or do shall be prima facie evidence of the entry having been made, and of the contents thereof, or of the matter or things having been done or not done. **138. Registrar and other officers not compellable to produce register, etc.—The Registrar or any** officer of the Trade Marks Registry shall not, in any legal proceedings to which he is not a party, be compellable to produce the register or any other document in his custody, the contents of which can be proved by the production of a certified copy issued under this Act or to appear as a witness to prove the matters therein recorded unless by order of the court made for special cause. **139. Power to require goods to show indication of origin.—(1) The Central Government may, by** notification in the Official Gazette, require that goods of any class specified in the notification which are made or produced beyond the limits of India and imported into India, or, which are made or produced within the limits of India, shall, from such date as may be appointed by the notification not being less than three months from its issue, have applied to them an indication of the country or place in which they were made or produced, or of the name and address of the manufacturer or the person for whom the goods were manufactured. (2) The notification may specify the manner in which such indication shall be applied that is to say, whether to goods themselves or in any other manner, and the times or occasions on which the presence of the indication shall be necessary, that is to say, whether on importation only, or also at the time of sale, whether by wholesale or retail or both. (3) No notification under this section shall be issued, unless application is made for its issue by persons or associations substantially representing the interests of dealers in, or manufacturers, producers, ----- or users of, the goods concerned, or unless the Central Government is otherwise convinced that it is necessary in the public interest to issue the notification, with or without such inquiry, as the Central Government may consider necessary. (4) The provisions of section 23 of the General Clauses Act, 1897 (10 of 1897) shall apply to the issue of a notification under this section as they apply to the making of a rule or bye-law the making of which is subject to the condition of previous publication. (5) A notification under this section shall not apply to goods made or produced beyond the limits of India and imported into India, if in respect of those goods, the Commissioner of Customs is satisfied at the time of importation that they are intended for exportation whether after transshipment in or transit through India or otherwise. **140. Power to require information of imported goods bearing false trade marks.—(1) The** proprietor or a licensee of a registered trade mark may give notice in writing to the Collector of Customs to prohibit the importation of any goods if the import of the said goods constitute infringement under clause (c) of sub-section (6) of section 29. (2) Where goods, which are prohibited to be imported into India by notification of the Central Government under clause (n) of sub-section (2) of section 11 of the Customs Act, 1962 (52 of 1962), for the protection of trade marks, and are liable to confiscation on importation under that Act, are imported into India, the Commissioner of Customs if, upon representation made to him, he has reason to believe that the trade mark complained of is used as a false trade mark, may require the importer of the goods, or his agent, to produce any documents in his possession relating to the goods and to furnish information as to the name and address of the person by whom the goods were consigned to India and the name and address of the person to whom the goods were sent in India. 1[(3) The importer or his agent shall, within fourteen days, comply with the requirement as aforesaid, and if he fails to do so, he shall be liable to penalty of ten thousand rupees: Provided that the penalty under this section shall be levied and recovered by such authority under the Customs Act, 1962 (52 of 1962) for this purpose.] (4) Any information obtained from the importer of the goods or his agent under this section may be communicated by the Commissioner of Customs to the registered proprietor or registered user of the trade mark which is alleged to have been used as a false trade mark. **141. Certificate of validity.—If in any legal proceeding for rectification of the register before the** 2[High Court] a decision is on contest given in favour of the registered proprietor of the trade mark on the issue as to the validity of the registration of the trade mark, the [2][High Court] may grant a certificate to that effect, and if such a certificate is granted, then, in any subsequent legal proceeding in which the said validity comes into question the said proprietor on obtaining a final order or judgment in his favour affirming validity of the registration of the trade mark shall, unless the said final order or judgment for sufficient reason directs otherwise, be entitled to his full cost charges and expenses as between legal practitioner and client. **142. Groundless threats of legal proceedings.—(1) Where a person, by means of circulars,** advertisements or otherwise, threatens a person with an action or proceeding for infringement of a trade mark which is registered, or alleged by the first-mentioned person to be registered, or with some other like proceeding, a person aggrieved may, whether the person making the threats is or is not the registered proprietor or the registered user of the trade mark, bring a suit against the first-mentioned person and may obtain a declaration to the effect that the threats are unjustifiable, and an injunction against the continuance of the threats and may recover such damages (if any) as he has sustained, unless the first-mentioned person satisfies the court that the trade mark is registered and that the acts in respect of which the proceedings were threatened, constitute, or, if done, would constitute, an infringement of the trade mark. 1. Subs. by Act 18 of 2023, s. 2 and Schedule, for sub-section (3) (w.e.f. 1-8-2024). 2. Subs. by Act 33 of 2021, s. 21, for “Appellate Board” (w.e.f. 4-4-2021). ----- (2) The last preceding sub-section does not apply if the registered proprietor of the trade mark, or a registered user acting in pursuance of sub-section (1) of section 52 with due diligence commences and prosecutes an action against the person threatened for infringement of the trade mark. (3) Nothing in this section shall render a legal practitioner or a registered trade marks agent liable to an action under this section in respect of an act done by him in his professional capacity on behalf of a client. (4) A suit under sub-section (1) shall not be instituted in any court inferior to a District Court. **143. Address for service.—An address for service stated in an application or notice of opposition** shall for the purposes of the application or notice of opposition be deemed to be the address of the applicant or opponent, as the case may be, and all documents in relation to the application or notice of opposition may be served by leaving them at or sending them by post to the address for service of the applicant or opponent, as the case may be. **144. Trade usages, etc., to be taken into consideration.—In any proceeding relating to a trade** mark, the [1][Registrar or the High Court, as the case may be,] shall admit evidence of the usages of the trade concerned and of any relevant trade mark or trade name or get up legitimately used by other persons. **145. Agents.—Where, by or under this Act, any act, other than the making of an affidavit, is required** to be done before the Registrar by any person, the act may, subject to the rules made in this behalf, be done instead of by that person himself, by a person duly authorised in the prescribed manner, who is— (a) a legal practitioner, or (b) a person registered in the prescribed manner as a trade marks agent, or (c) a person in the sole and regular employment of the principal. **146. Marks registered by an agent or representative without authority.—If an agent or a** representative of the proprietor of a registered trade mark, without authority uses or attempts to register or registers the mark in his own name, the proprietor shall be entitled to oppose the registration applied for or secure its cancellation or rectification of the register so as to bring him as the registered proprietor of the said mark by assignment in his favour: Provided that such action shall be taken within three years of the registered proprietor of the trade mark becoming aware of the conduct of the agent or representative. **147. Indexes.—There shall be kept under the direction and supervision of the Registrar—** (a) an index of registered trade marks; (b) an index of trade marks in respect of which applications for registration are pending; (c) an index of the names of the proprietors of registered trade marks; and (d) an index of the names of registered users. **148. Documents open to public inspection.—(1) Save as otherwise provided in sub-section (4) of** section 49,— (a) the register and any document upon which any entry in the register is based; (b) every notice of opposition to the registration of a trade mark application for rectification before the Registrar, counter-statement thereto, and any affidavit or document filed by the parties in any proceedings before the Registrar; (c) all regulations deposited under section 63 or section 74, and all applications under section 66 or section 77 for varying such regulations; (d) the indexes mentioned in section 147; and 1. Subs. Act 33 of 2021, by s. 21, for “tribunal” (w.e.f. 4-4-2021). ----- (e) such other documents as the Central Government may, by notification in the Official Gazette, specify, shall, subject to such conditions as may be prescribed, be open to public inspection at the Trade Marks Registry: Provided that when such register is maintained wholly or partly on computer, the inspection of such register under this section shall be made by inspecting the computer printout of the relevant entry in the register so maintained on computer. (2) Any person may, on an application to the Registrar and on payment of such fees as may be prescribed, obtain a certified copy of any entry in the register or any document referred to in sub-section (1). **149. Reports of Registrar to be placed before Parliament.—The Central Government shall cause** to be placed before both Houses of Parliament once a year a report respecting the execution by or under the Registrar of this Act. **150. Fees and surcharge.—(1) There shall be paid in respect of** [1][applications, international applications] and registration and other matters under this Act such fees and surcharge as may be prescribed by the Central Government. (2) Where a fee is payable in respect of the doing of an act by the Registrar, the Registrar shall not do that act until the fee has been paid. (3) Where a fee is payable in respect of the filing of a document at the Trade Marks Registry, the document shall be deemed not to have been filed at the Registry until the fee has been paid. **151. Savings in respect of certain matters in Chapter XII.—Nothing in Chapter XII shall—** (a) exempt any person from any suit or other proceeding which might, but for anything in that Chapter, be brought against him; or (b) entitle any person to refuse to make a complete discovery, or to answer any question or interrogatory in any suit or other proceeding, but such discovery or answer shall not be admissible in evidence against such person in any such prosecution for an offence under that Chapter or against clause (h) of section 112 of the Customs Act, 1962 (52 of 1962) relating to confiscation of goods under clause (d) of section 111 of that Act and notified by the Central Government under clause (n) of sub-section (2) of section 11 thereof for the protection of trade marks relating to import of goods; or (c) be construed so as to render liable to any prosecution or punishment any servant of a master resident in India who in good faith acts in obedience to the instructions of such master, and, on demand made by or on behalf of the prosecutor, has given full information as to his master and as to the instructions which he has received from his master. **152. Declaration as to ownership of trade mark not registrable under the Registration** **Act, 1908.—Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908), no** document declaring or purporting to declare the ownership or title of a person to a trade mark other than a registered trade mark shall be registered under that Act. **153. Government to be bound.—The provisions of this Act shall be binding on the Government.** **154. Special provisions relating to applications for registration from citizens of convention** **countries.—(1) With a view to the fulfilment of a treaty, convention or arrangement with any country or** country which is a member of a group of countries or union of countries or Inter-Governmental Organisation outside India which affords to citizens of India similar privileges as granted to its own citizens, the Central Government may, by notification in the Official Gazette, declare such country or group of countries or union of countries or Inter-Governmental Organisation to be a convention country or group of countries or union of countries or Inter-Governmental Organisation, as the case may be, for the purposes of this Act. 1. Subs. by Act 40 of 2010, s. 8, for “applications” (w.e.f. 8-7-2013). ----- (2) Where a person has made an application for the registration of a trade mark in a convention country or country which is a member of a group of countries or union of countries or Inter-Governmental Organisation and that person, or his legal representative or assignee, makes an application for the registration of the trade mark in India within six months after the date on which the application was made in the convention country or country which is a member of a group of countries or union of countries or Inter-Governmental Organisations, the trade mark shall, if registered under this Act, be registered as of the date on which the application was made in the convention country or country which is a member of a group of countries or union of countries or Inter-Governmental Organisation and that date shall be deemed for the purposes of this Act to be the date of registration. (3) Where applications have been made for the registration of a trade mark in two or more convention countries or country which are members of group of countries or union of countries or Inter-Governmental Organisation, the period of six months referred to in the last preceding sub-section shall be reckoned from the date on which the earlier or earliest of those applications was made. (4) Nothing in this Act shall entitle the proprietor of a trade mark to recover damages for infringement which took place prior to the date of application for registration under this Act. **155. Provision as to reciprocity.—Where any country or country which is a member of a group of** countries or union of countries or Inter-Governmental Organisation specified by the Central Government in this behalf by notification in the Official Gazette does not accord to citizens of India the same rights in respect of the registration and protection of trade marks as it accords to its own nationals, no national of such country or country which is a member of a group of countries or union of countries or InterGovernmental Organisation, as the case may be, shall be entitled, either solely or jointly with any other person,— (a) to apply for the registration of, or be registered as the proprietor of, a trade mark; (b) to be registered as the assignee of the proprietor of a registered trade mark; or (c) to apply for registration or be registered as a registered user of a trade mark under section 49. **156. Power of Central Government to remove difficulties.—(1) If any difficulty arises in giving** effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of five years from the commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **157. Power to make rules.—(1) The Central Government may, by notification in the Official** Gazette and subject to the conditions of previous publication, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (i) the matters to be included in the Register of Trade Marks under sub-section (1) of section 6, and the safeguards to be observed in the maintenance of records on computer floppies or diskettes or in any other electronic form under sub-section (2) of that section; (ii) the manner of publication of alphabetical index of classification of goods and services under sub-section (1) of section 8; (iii) the manner in which the Registrar may notify a word as an international non-proprietary name under section 13; (iv) the manner of making an application for dissolution of an association under sub-section (5) of section 16; ----- (v) the manner of making an application for registration of a trade mark under sub-section (1) of section 18; (vi) the manner of advertising of an application for registration under sub-section (1), and the manner of notifying corrections or amendments under sub-section (2), of section 20; 1[(vii) the manner of giving a notice of opposition and the fee payable for such notice under sub-section (1) and sending counter-statement under sub-section (2) and submission of evidence and the time therefor under sub-section (4) of section 21;] (viii) the form of certificate of registration under sub-section (2), and the manner of giving notice to the applicant under sub-section (3) of section 23; (ix) the forms of application for renewal and restoration the time within which such application is to be made and fee and surcharge if any payable with each application, under section 25 and the time within which the Registrar shall send a notice and the manner of such notice under sub-section (3) of that section; 2[(ixa) the time within which the international application is to be forwarded to the International Bureau and the manner of certifying the particulars by the Registrar under sub-section (4) of section 36D; (ixb) the manner of keeping a record of particulars of an international registration under sub-section (1) of section 36E; (ixc) the manner of informing the International Bureau under sub-section (2) of section 36E; (ixd) the manner of advertising the international registration and the time within which the international registration shall be advertised under sub-section (3) of section 36E;] (x) the manner of submitting statement of cases under sub-section (2) of section 40; (xi) the manner of making an application by the proprietor of a trade mark under section 41; (xii) the manner of making an application for assignment or transmission of a certification trade mark under section 43; (xiii) the manner of making an application to the Registrar to register title under sub-section (1) of section 45; 2[(xiiia) the period within which the Registrar shall dispose of an application under sub-section (3) of section 45;] (xiv) the manner in which and the period within which an application is to be made under sub-section (4) of section 46; (xv) the manner of making an application under sub-section (2) of section 47; (xvi) the manner of making an application, documents and other evidence to accompany such application under sub-section (1) and the manner in which notice is to be issued under sub-section (3) of section 49; (xvii) the manner of making an application under sub-section (1), the manner of issuing a notice under sub-section (2) and the procedure for cancelling a registration under sub-section (3) of section 50; (xviii) the manner of making applications under sub-sections (1) and (2), the manner of giving notice under sub-section (4) and the manner of service of notice of rectification under sub-section (5) of section 57; (xix) the manner of making an application under section 58; 1. Subs. by Act 40 of 2010, s. 9, for clause (vii) (w.e.f. 8-7-2013). 2. Ins. by s. 9, ibid. (w.e.f. 8-7-2013). ----- (xx) the manner of making an application under sub-section (1), the manner of advertising an application, time and manner of notice by which application may be opposed under sub-sections (2) and (3) of section 59; (xxi) the manner of advertisement under sub-section (2) of section 60; (xxii) the other matters to be specified in the regulations under sub-section (2) of section 63; (xxiii) the manner of making an application under sub-section (1) of section 71; (xxiv) the manner of advertising an application under section 73; (xxv) the manner of making an application under section 77; 1* - - - (xxix) the salaries and allowances payable to, and the other terms and conditions of service of, the 2[Chairperson], 3[Vice-Chairperson] and other Members under sub-section (1) of section 88; (xxx) the procedure for investigation of misbehavior or incapacity of the[ 2][Chairperson], 3[Vice-Chairperson] and other Members under sub-section (3) of section 89; 4* - - - (xxxiii) the form in which and the particulars to be included in the application to the [5][High Court] under sub-section (1) of section 97; 6[(xxxiiia) the manner of holding inquiry and imposing penalty under Section 112A; (xxxiiib) the form and manner of preferring appeal under sub-section (2) of Section 112B;] (xxxiv) the manner of making an application for review under clause (c) of section 127; (xxxv) the time within which an application is to be made to the Registrar for exercising his discretionary power under section 128; (xxxvi) the manner of making an application and the fee payable therefor under sub-section (1) of section 131; (xxxvii) the manner of making an application under sub-section (1) and the period for withdrawal of such application under sub-section (2) of section 133; (xxxviii) the manner of authorising any person to act and the manner of registration as a trade mark agent under section 145; (xxxix) the conditions for inspection of documents under sub-section (1) and the fee payable for obtaining a certified copy of any entry in the register under sub-section (2) of section 148; (xl) the fees and surcharge payable for making applications and registration and other matters under section 150; (xli) any other matter which is required to be or may be prescribed. (3) The power to make rules conferred by this section shall include the power to give retrospective effect in respect of the matters referred to in clauses (xxix) and (xxxi) of sub-section (2) from a date not earlier than the date of commencement of this Act, but no retrospective effect shall be given to any such rule so as to prejudicially affect the interests of any person to whom sub-rule may be applicable. (4) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session 1. Cls. (xxvi), (xxvii) and (xxviii) omitted by Act 40 of 2010, s. 9, (w.e.f. 8-7-2013). 2. Subs. by Act 7 of 2017, s. 161, for “Chairman” (w.e.f. 26-5-2017). 3. Subs. by s. 161, ibid., for “Vice-Chairman” (w.e.f. 26-5-2017). 4. Clauses (xxxi) and (xxxii) omitted by Act 33 of 2021, s. 21 (w.e.f. 4-4-2021). 5. Subs. by s. 21, ibid., for “Appellate Board” (w.e.f. 4-4-2021). 6. Ins. by Act 18 of 2023, s. 2 and Schedule (w.e.f. 1-8-2024). ----- immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **158. Amendments.—The enactment specified in the Schedule shall be amended in the manner** specified therein. **159. Repeal and savings.—(1) The Trade and Merchandise Marks Act, 1958 (43 of 1958) is hereby** repealed. (2) Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1987), with respect to repeals, any notification, rule, order, requirement, registration, certificate, notice, decision, determination, direction, approval, authorisation, consent, application, request or thing made, issued, given or done under the Trade and Merchandise Marks Act, 1958 (43 of 1958) shall, if in force at the commencement of this Act, continue to be in force and have effect as if made, issued, given or done under the corresponding provisions of this Act. (3) The provisions of this Act shall apply to any application for registration of a trade mark pending at the commencement of this Act and to any proceedings consequent thereon and to any registration granted in pursuance thereof. (4) Subject to the provisions of section 100 and notwithstanding anything contained in any other provision of this Act, any legal proceeding pending in any court at the commencement of this Act may be continued in that court as if this Act had not been passed. (5) Notwithstanding anything contained in this Act, where a particular use of a registered trade mark is not an infringement of a trade mark registered before the commencement of this Act, then, the continued use of that mark shall not be an infringement under this Act. (6) Notwithstanding anything contained in sub-section (2), the date of expiration of registration of a trade mark registered before the commencement of this Act shall be the date immediately after the period of seven years for which it was registered or renewed: Provided that the registration of a defensive trade mark referred to in section 47 of the Trade and Merchandise Marks Act, 1958 (43 of 1958) shall cease to have effect on the date immediately after the expiry of five years of such commencement or after the expiry of the period for which it was registered or renewed, whichever is earlier. ----- THE SCHEDULE (See section 158) AMENDMENTS Amendment (1) In Section 20, for sub-section (2), the following |Year|Act No.|Short title|Amendment| |---|---|---|---| |1956|1|The Companies Act, 1956|(1) In Section 20, for sub-section (2), the following sub-sections shall be substituted, namely:— “(2) Without prejudice to the generality of the foregoing power, a name which is identical with, or too nearly resembles,— (i) the name by which a company in existence has been previously registered, or (ii) a registered trade mark, or a trade mark which is subject of an application for registration, of any other person under the Trade Marks Act, 1999, may be deemed to be undesirable by the Central Government within the meaning of sub-section (1). (3) The Central Government may, before deeming a name as undesirable under clause (ii) of sub-section (2), consult the Registrar of Trade Marks.”. (II) In section 22, in sub-section (1),— (i) for the portion beginning with “if, through” and ending with “the first-mentioned company–” the following shall be substituted, namely:— “If, through inadvertence or otherwise, a company on its first registration or on its registration by a new name, is registered by a name which,— (i) in the opinion of the Central Government, is identical with, or too nearly resembles, the name by which a company in existence has been previously registered, whether under this Act or any previous companies law, the first mentioned company, or (ii) on an application by a registered proprietor of a trade mark, is in the opinion of the Central Government identical with, or too nearly resembles, a registered trade mark of such proprietor under the Trade Marks Act, 1999, such company,—”; (ii) the following proviso shall be added, namely:— “Provided that no application under clause (ii) made by a registered proprietor of a trade mark after five years of coming to notice of registration of the company shall be considered by the Central Government.”.| -----
30-Dec-1999
48
The Geographical Indications of Goods (Registration and Protection) Act, 1999
https://www.indiacode.nic.in/bitstream/123456789/1981/5/A1999-48.pdf
central
# THE GEOGRAPHICAL INDICATIONS OF GOODS (REGISTRATION AND PROTECTION) ACT, 1999 ______________ ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions and interpretation. CHAPTER II THE REGISTER AND CONDITIONS FOR REGISTRATION 3. Registrar of Geographical Indications. 4. Power of Registrar to withdraw or transfer cases, etc. 5. Geographical Indications Registry and offices thereof. 6. Register of Geographical Indications. 7. Part A and Part B of the register. 8. Registration to be in respect of particular goods and area. 9. Prohibition of registration of certain geographical indications. 10. Registration of homonymous geographical indications. CHAPTER III PROCEDURE FOR AND DURATION OF REGISTRATION 11. Application for registration. 12. Withdrawal of acceptance. 13. Advertisement of application. 14. Opposition to registration. 15. Correction and amendment. 16. Registration. 17. Application for registration as authorised user. 18. Duration, renewal, removal and restoration of registration. 19. Effect of removal from register for failure to pay fee for renewal. CHAPTER IV EFFECT OF REGISTRATION 20. No action for infringement of unregistered geographical indication. 21. Rights conferred by registration. 22. Infringement or registered geographical indications. 23. Registration to be prima facie evidence of validity. 24. Prohibition of assignment or transmission, etc. # 1 ----- CHAPTER V SPECIAL, PROVISIONS RELATING TO TRADE MARK AND PRIOR USERS SECTIONS 25. Prohibition of registration of geographical indication as trade mark. 26. Protection to certain trade marks. CHAPTER VI RECTIFICATION AND CORRECTION OF THE REGISTER 27. Power to cancel or vary registration and to rectify the register. 28. Correction of register. 29. Alteration of registered geographical indications. 30. Adaptation of entries in register to amend or substitute classification of goods. CHAPTER VII APPEALS 31. Appeals to the High Court. 32. [Omitted.] 33. [Omitted.] 34. Procedure for application for rectification, etc., before High Court. 35. Appearance of Registrar in legal proceedings. 36. [Omitted.] CHAPTER VIII OFFENCES, PENALTIES AND PROCEDURE 37. Meaning of applying geographical indications. 37A. Adjudication of penalties. 37B. Appeal. 38. Falsifying and falsely applying geographical indications. 39. Penalty for applying false geographical indications. 40. Penalty for selling goods to which false geographical indication is applied. 41. Enhanced penalty on second or subsequent conviction. 42. Penalty for falsely representing a geographical indication as registered. 43. [Omitted.] 44. [Omitted.] 45. No offence in certain cases. 46. Forfeiture of goods. 47. Exemption of certain persons employed in ordinary course of business. 48. Procedure where invalidity of registration is pleaded by the accused. 49. Offences by companies. 50. Cognizance of certain offences and the powers of police officer for search and seizure. 51. Costs of defence of prosecution. 52. Limitation of prosecution. 53. Information as to commission of offence. 54. Punishment for abetement in India of acts done out of India. # 2 ----- CHAPTER IX MISCELLANEOUS SECTIONS 55. Protection of action taken in good faith. 56. Certain persons to be public servants. 57. Stay of proceedings where the validity of registration of the geographical indication is questioned etc. 58. Application for rectification of register to be made to High Court in certain cases. 59. Implied warranty on sale of indicated goods. 60. Powers of Registrar. 61. Exercise of discretionary power by Registrar. 62. Evidence before Registrar. 63. Death of party to a proceeding. 64. Extension of time. 65. Abandonment. 66. Suit for infringement, etc., to be instituted before district court. 67. Relief in suit for infringement or for passing off. 68. Authorised user to be impleaded in certain proceedings. 69. Evidence of entries in register, etc., and things done by the Registrar. 70. Registrar and other officers not compellable to produce register, etc. 71. Power to require goods to show indication of origin. 72. Certificate of validity. 73. Groundless threats of legal proceedings. 74. Address for service. 75. Trade usages, etc., to be taken into consideration. 76. Agents. 77. Indexes. 78. Documents open to public inspection. 79. Reports of Registrar to be placed before Parliament. 80. Fees and surcharge. 81. Savings in respect of certain matters in Chapter VIII. 82. Declaration as to title of geographical indication not registrable under the Registration Act, 1908. 83. Government to be bound. 84. Special provisions relating to applications for registration from citizens of convention countries. 85. Provision as to reciprocity. 86. Powers of Central Government to remove difficulties. 87. Power to make rules. # 3 ----- # THE GEOGRAPHICAL INDICATIONS OF GOODS (REGISTRATION AND PROTECTION) ACT, 1999 ACT NO. 48 OF 1999 [30th December, 1999.] # An Act to provide for the registration and better protection of geographical indications relating to goods. BE it enacted by Parliament in the Fiftieth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Geographical** Indications of Goods (Registration and Protection) Act, 1999. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions and interpretation.—(1) In this Act, unless the context otherwise requires,—** 2* - - - (b) “authorised user” means the authorised user of a geographical indication registered under section 17; (c) “deceptively similar” A geographical indication shall be deemed to be deceptively similar to another geographical indication if it so nearly resembles that other geographical indication as to be likely to deceive or cause confusion; (d) “district court” has the meaning assigned to it in the Code of Civil Procedure, 1908 (5 of 1908); (e) “geographical indication”, in relation to goods, means an indication which identifies such goods as agricultural goods, natural goods or manufactured goods as originating, or manufactured in the territory of a country, or a region or locality in that territory, where a given quality, reputation or other characteristic of such goods is essentially attributable to its geographical origin and in case where such goods are manufactured goods one of the activities of either the production or of processing or preparation of the goods concerned takes place in such territory, region or locality, as the case may be. _Explanation.—For the purposes of this clause, any name which is not the name of a country,_ region or locality of that country shall also be considered as the geographical indication if it relates to a specific geographical area and is used upon or in relation to particular goods originating from that country, region or locality, as the case may be; (f) “goods” means any agricultural, natural or manufactured goods or any goods of handicraft or of industry and includes food stuff; (g) “indication” includes any name, geographical or figurative representation or any combination of them conveying or suggesting the geographical origin of goods to which it applies; (h) “name” includes any abbreviation of a name; 1. 15th September, 2003, vide notification No. S.O. 1051(E), dated 15th September, 2003, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2. Clause (a) omitted by Act 33 of 2021, s. 22 (w.e.f. 4-4-2021). # 4 ----- (i) “package” includes any case, box, container, covering, folder, receptacle, vessel, casket, bottle, wrapper, label, band, ticket, reel, frame, capsule, cap, lid, stopper and cork; (j) “prescribed” means prescribed by rules made under this Act; (k) “producer”, in relation to goods, means any person who,— # (i) if such goods are agricultural goods, produces the goods and includes the person who processes or packages such goods; (ii) if such goods are natural goods, exploits the goods; (iii) if such goods are handicraft or industrial goods, makes or manufactures the goods, and includes any person who trades or deals in such production, exploitation, making or manufacturing, as the case may be, of the goods; (l) “register” means the Register of Geographical Indications referred to in section 6; (m) “registered” (with its grammatical variations) means registered under this Act; (n) “registered proprietor”, in relation to a geographical indication, means any association of persons or of producers or any organisation for the time being entered in the register as proprietor of the geographical indication; (o) “Registrar” means the Registrar of Geographical Indications referred to in section 3; 1* - - - (2) Words and expressions used and not defined in this Act but defined in the Trade Marks Act, 1999 (47 of 1999) shall have the meanings respectively assigned to them in that Act. (3) In this Act, unless the context otherwise requires, any reference— (a) to the use of a geographical indication shall be construed as a reference to the use of a printed or other visual representation of the geographical indication; (b) to the use of a geographical indication in relation to goods shall be construed as a reference to the use of the geographical indication upon, or in any physical or in any other relation whatsoever, to such goods; (c) to a registered geographical indication shall be construed as including a reference to a geographical indication registered in the register; (d) to the Registrar shall be construed as including a reference to any officer when discharging the functions of the Registrar in pursuance of sub-section (2) of section 3; (e) to the Geographical Indications Registry shall be construed as including a reference to any office of the Geographical Indications Registry. CHAPTER II THE REGISTER AND CONDITIONS FOR REGISTRATION **3. Registrar of Geographical Indications.—(1) The Controller-General of Patents, Designs and** Trade Marks appointed under sub-section (1) of section 3 of the Trade Marks Act, 1999, shall be the Registrar of Geographical Indications. (2) The Central Government may appoint such officers with such designations as it thinks fit for the purpose of discharging, under the superintendence and direction of the Registrar, such functions of the Registrar under this Act, as he may from time to time authorise them to discharge. **4. Power of Registrar to withdraw or transfer cases, etc.—Without prejudice to the generality of** the provisions of sub-section (2) of section 3, the Registrar may, by order in writing and for reasons to be recorded therein, withdraw any matter pending before an officer appointed under the said sub-section (2) 1. Clause (p) omitted by Act 33 of 2021, s. 22 (w.e.f. 4-4-2021). # 5 ----- and deal with such matter himself either _de novo or from the stage it was so withdrawn or transfer the_ same to another officer so appointed who may, subject to special directions in the order of transfer, proceed with the matter either de novo or from the stage it was so transferred. **5. Geographical Indications Registry and offices thereof.—(1) For the purpose of this Act, there** shall be established a Registry which shall be known as the Geographical Indications Registry. (2) The head office of the Geographical Indications Registry shall be at such place as the Central Government may, by notification in the Official Gazette, specify, and for the purpose of facilitating the registrations of geographical indications, there may be established at such places as the Central Government may think fit branch offices of the Geographical Indications Registry. (3) The Central Government may, by notification in the Official Gazette, define the territorial limits within which an office of the Geographical Indications Registry may exercise its functions. (4) There shall be a seal of the Geographical Indications Registry. **6. Register of Geographical Indications.—For the purposes of this Act, a record called the Register** of geographical indications shall be kept at the head office of the Geographical Indications Registry, wherein shall be entered all registered geographical indications with the names, addresses and descriptions of the proprietors, the names, addresses and descriptions of authorised users and such other matters relating to registered geographical indications as may be prescribed and such registers may be maintained wholly or partly on computer. (2) Notwithstanding anything contained in sub-section (1), it shall be lawful for the Registrar to keep the records wholly or partly in computer floppies or diskettes or in any other electronic form, subject to such safeguards as may be prescribed. (3) Where such register is maintained wholly or partly in computer floppies or diskettes or in any other electronic form under sub-section (2), any reference in this Act to any entry in the register shall be construed as the reference to the entry as maintained on computer floppies or diskettes or in any other electronic form, as the case may be. (4) No notice of any trust, express or implied or constructive, shall be entered in the register and no such notice shall be receivable by the Registrar. (5) Subject to the superintendence and direction of the Central Government, the register shall be kept under the control and management of the Registrar. (6) There shall be kept at each branch office of the Geographical Indications Registry a copy of the register and such other documents mentioned in section 78 as the Central Government may, by notification in the Official Gazette, direct. **7. Part A and Part B of the register.—(1) The register referred to in section 6 shall be divided into** two Parts called respectively Part A and Part B. (2) The particulars relating to the registration of the geographical indications shall be incorporated and form Part A of the register in the prescribed manner. (3) The particulars relating to the registration of the authorised users shall be incorporated and form part of Part B of the register in the prescribed manner. **8. Registration to be in respect of particular goods and area.—(1) A geographical indication may** be registered in respect of any or all of the goods, comprised in such class of goods as may be classified by the Registrar and in respect of a definite territory of a country, or a region or locality in that territory, as the case may be. (2) The Registrar shall classify the goods under sub-section (1), as far as may be, in accordance with the International classification of goods for the purposes of registration of geographical indications. (3) The Registrar may publish in the prescribed manner an alphabetical index of classification of goods referred to in sub-section (2). # 6 ----- (4) Any question arising as to the class within which any goods fall or the definite area as referred to in sub-section (1) in respect of which the geographical indication is to be registered or where any goods are not specified in the alphabetical index of goods published under sub-section (3) shall be determined by the Registrar whose decision in the matter shall be final. **9. Prohibition of registration of certain geographical indications.—A geographical indication—** (a) the use of which would be likely to deceive or cause confusion; or (b) the use of which would be contrary to any law for the time being in force; or (c) which comprises or contains scandalous or obscene matter; or (d) which comprises or contains any matter likely to hurt the religious susceptibilities of any class or section of the citizens of India; or (e) which would otherwise be disentitled to protection in a court; or (f) which are determined to be generic names or indications of goods and are, therefore, not or ceased to be protected in their country of origin, or which have fallen into disuse in that country; or (g) which, although literally true as to the territory, region or locality in which the goods originate, but falsely represent to the persons that the goods originate in another territory, region or locality, as the case may be, shall not be registered as a geographical indication. _Explanation 1.—For the purposes of this section, “generic names or indications”, in relation to goods,_ means the name of a goods which, although relates to the place or the region where the goods was originally produced or manufactured, has lost its original meaning and has become the common name of such goods and serves as a designation for or indication of the kind, nature, type or other property or characteristic of the goods. _Explanation 2.—In determining whether the name has become generic, account shall be taken of all_ factors including the existing situation in the region or place in which the name originates and the area of consumption of the goods. **10. Registration of homonymous geographical indications.—Subject to the provisions of section 7,** a homonymous geographical indication may be registered under this Act, if the Registrar is satisfied, after considering the practical conditions under which the homonymous indication in question shall be differentiated from other homonymous indications and the need to ensure equitable treatment of the producers of the goods concerned, that the consumers of such goods shall not be confused or misled in consequence of such registration. CHAPTER III PROCEDURE FOR AND DURATION OF REGISTRATION **11. Application for registration.—(1) Any association of persons or producers or any organisation** or authority established by or under any law for the time being in force representing the interest of the producers of the concerned goods, who are desirous of registering a geographical indication in relation to such goods shall apply in writing to the Registrar in such form and in such manner and accompanied by such fees as may be prescribed for the registration of the geographical indication. (2) The application under sub-section (1) shall contain— (a) a statement as to how the geographical indication serves to designate the goods as originating from the concerned territory of the country or region or locality in the country, as the case may be, in respect of specific quality, reputation or other characteristics of which are due exclusively or essentially to the geographical environment, with its inherent natural and human factors, and the production, processing or preparation of which takes place in such territory, region or locality, as the case may be; (b) the class of goods to which the geographical indication shall apply; # 7 ----- (c) the geographical map of the territory of the country or region or locality in the country in which the goods orginate or are being manufactured; (d) the particulars regarding the appearance of the geographical indication as to whether it is comprised of the words or figurative elements or both; (e) a statement containing such particulars of the producers of the concerned goods, if any, proposed to be initially registered with the registration of the geographical indication as may be prescribed; and (f) such other particulars as may be prescribed. (3) A single application may be made for registration of a geographical indication for different classes of goods and fee payable therefor shall be in respect of each such class of goods. (4) Every application under sub-section (1) shall be filed in the office of the Geographical Indications Registry within whose territorial limits, the territory of the country or the region or locality in the country to which the geographical indication relates is situated: Provided that where such territory, region or locality, as the case may be, is not situated in India, the application shall be filed in the office of the Geographical Indications Registry within whose territorial limits the place mentioned in the address for services in India as disclosed in the application, is situated. (5) Every applications under sub-section (1) shall be examined by the Registrar in such manner as may be prescribed. (6) Subject to the provisions of this Act, the Registrar may refuse the application or may accept it absolutely or subject to such amendments, modification, conditions or limitations, if any, as he thinks fit. (7) In the case of refusal or conditional acceptance of application, the Registrar shall record in writing the grounds for such refusal or conditional acceptance and the materials used by him in arriving at his decision. **12. Withdrawal of acceptance.—Where, after the acceptance of an application for registration of a** geographical indication but before its registration, the Registrar is satisfied,— (a) that the application has been accepted in error, or (b) that in the circumstances of the case the geographical indication should not be registered or should be registered subject to conditions or limitations or to conditions additional to or different from the conditions or limitations subject to which the application has been accepted, the Registrar may, after hearing the applicant if he so desires, withdraw the acceptance and proceed as if the application had not been accepted. **13. Advertisement of application.—(1) When an application for registration of a geographical** indication has been accepted, whether absolutely or subject to conditions or limitations, the Registrar shall, as soon as may be after acceptance, cause the application as accepted together with the conditions or limitations, if any, subject to which it has been accepted, to be advertised in such manner as may be prescribed. (2) Where after advertisement of an application— (a) an error in the application has been corrected; or (b) the application has been permitted to be amended under section 15, the Registrar may, in his discretion cause the application to be advertised again or instead of causing the application to be advertised again, notify in the prescribed manner, the correction made in the application. **14. Opposition to registration.—(1) Any person may, within three months from the date of** advertisement or readvertisement of an application for registration or within such further period, not exceeding one month, in the aggregate, as the Registrar, on application made to him in such manner and on payment of such fee as may be prescribed allows, give notice in writing in the prescribed manner to the Registrar, of opposition to the registration. # 8 ----- (2) The Registrar shall serve a copy of the notice on the applicant for registration and, within two months from the receipt by the applicant of such copy of the notice of opposition, the applicant shall sent to the Registrar in the prescribed manner a counter-statement of the grounds on which he relies for his application, and if he does not do so, he shall be deemed to have abandoned his application. (3) If the applicant sends such counter-statement, the Registrar shall serve a copy thereof on the person giving notice of opposition. (4) Any evidence upon which the opponent and the applicant may rely shall be submitted in such manner and within the such time as may be prescribed to the Registrar, and the Registrar shall give an opportunity to them to be heard, if they so desire. (5) The Registrar shall, after hearing the parties, if so required, and considering the evidence, decide whether and subject to what conditions or limitations, if any, the registration is to be permitted, and may take into account a ground of objection whether relied upon by the opponent or not. (6) Where a person giving notice of opposition or an applicant sending a counter-statement after receipt of a copy of such notice neither resides nor carries on business in India, the Registrar may require him to give security for the costs of proceeding before him, and in default of such security being duly given, may treat the opposition or application, as the case may be, as abandoned. (7) The Registrar may, on request, permit correction of any error in, or any amendment of, a notice of opposition or a counter-statement on such terms as he thinks just. **15. Correction and amendment.—The Registrar may, on such terms, as he thinks just, at any time,** whether before or after acceptance of an application for registration under section 11, permit the correction of any error or in connection with the application or permit an amendment of the application: Provided that if an amendment is made to a single application referred to in sub-section (3) of section 11 involving division of such application into two or more applications, the date of making of the initial application shall be deemed to be the date of making of the divided applications so divided. **16. Registration.—(1) Subject to the provisions of section 12, when an application for registration of** a geographical indication has been accepted and either— (a) the application has not been opposed and the time for notice of opposition has expired; or (b) the application has been opposed and the opposition has been decided in favour of the applicant, the Registrar shall, unless the Central Government otherwise directs, register the said geographical indication and the authorised users, if any, mentioned in the application and the geographical indication and the authorised users when registered shall be registered as of the date of the making of the said application and that date shall, subject to the provisions of section 84, be deemed to be the date of registration. (2) On the registration of a geographical indication, the Registrar shall issue each to the applicant and the authorised users, if registered with the geographical indication, a certificate in such form as may be prescribed of the registration thereof, sealed with the seal of the Geographical Indications Registry. (3) Where registration of a geographical indication is not completed within twelve months from the date of the application by reason of default on the part of the applicant, the Registrar may, after giving notice to the applicant in the prescribed manner, treat the application as abandoned unless it is completed within the time specified in that behalf in the notice. (4) The Registrar may amend the register or a certificate of registration for the purpose of correcting a clerical error or an obvious mistake. **17. Application for registration as authorised user.—(1) Any person claiming to be the producer** of the goods in respect of which a geographical indication has been registered under section 16 may apply in writing to the Registrar in the prescribed manner for registering him as an authorised user of such geographical indication. # 9 ----- (2) The application under sub-section (1) shall be accompanied by a statement and such documents of facts as may be prescribed and required by the Registrar to determine as to whether such person is the producer of the goods referred to in that sub-section and such fee as may be prescribed. (3) The provisions of this Chapter relating to— (a) the filing and examination of the application; (b) the refusal and acceptance of registration; (c) withdrawal of acceptance of application; (d) advertisement of application; (e) opposition to registration; (f) correction or error in an amendment of the application; and (g) registration, shall apply in respect of the application and registration of authorised users referred to in sub-section (1) in the same manner as they apply for the application for registration and registration of the geographical indication. **18. Duration, renewal, removal and restoration of registration.—(1) The registration of a** geographical indication shall be for a period of ten years, but may be renewed from time to time in accordance with the provisions of this section. (2) The registration of an authorised user shall be for a period of ten years or for the period till the date on which the registration of the geographical indication in respect of which the authorised user is registered expires, whichever is earlier. (3) The Registrar shall, on application made in the prescribed manner, by the registered proprietor or by the authorised user and within the prescribed period and subject to the payment of the prescribed fee, renew the registration of the geographical indication or authorised user, as the case may be, for a period of ten years from the date of expiration of the original registration or of the last renewal of registration, as the case may be (which date is in this section referred to as the expiration of the last registration). (4) At the prescribed time before the expiration of the last registration of a geographical indication or the authorised user, as the case may be, the Registrar shall send notice in the prescribed manner to the registered proprietor or the authorised user, as the case may be, of the date of expiration and the conditions as to payment of fees and otherwise upon which a renewal of registration may be obtained, and, if at the expiration of time prescribed in that behalf those conditions have not been duly complied with, the Registrar may remove the geographical indication or the authorised user, as the case may be, from the register: Provided that the Registrar shall not remove the geographical indication or the authorised user, as the case may be, from the register, if an application is made in the prescribed form and the prescribed fee and surcharge is paid within six months from the expiration of the last registration of the geographical indication or the authorised user, as the case may be, and shall renew the registration of geographical indication or the authorised user, as the case may be, for a period of ten years under sub-section (3). (5) Where a geographical indication or authorised user, as the case may be, has been removed from the register for non-payment of the prescribed fee, the Registrar shall, after six months and within one year from the expiration of the last registration of the geographical indication or the authorised user, as the case may be, on receipt of an application in the prescribed form and on payment of the prescribed fee, if satisfied that it is just so to do, restore the geographical indication or the authorised user, as the case may be, to the register and renew registration of the geographical indication or authorised user, as the case may be, either generally or subject to such condition or limitation as he thinks fit to impose, for a period of ten years from the expiration of the last registration. **19. Effect of removal from register for failure to pay fee for renewal.—Where a geographical** indication has been removed from the register for failure to pay the fee for renewal, it shall nevertheless, for the purpose of any application for the registration of another geographical indication during one year, # 10 ----- next after the date of removal, be deemed to be a geographical indication already on the register, unless the [1][Registrar or the High Court, as the case may be,] is satisfied either— (a) that there has been no _bona fide trade use of the geographical indication which has been_ removed within the two years immediately preceding its removal; or (b) that no deception or confusion would be likely to arise from the use of the geographical indication which is the subject of the application for registration by reason of any previous use of the geographical indication which has been removed. CHAPTER IV EFFECT OF REGISTRATION **20. No action for infringement of unregistered geographical indication.—(1) No person shall be** entitled to institute any proceeding to prevent, or to recover damages for, the infringement of an unregistered geographical indication. (2) Nothing in this Act shall be deemed to affect rights of action against any person for passing off goods as the goods of another person or the remedies in respect thereof. **21. Rights conferred by registration.—(1) Subject to the other provisions of this Act, the** registration of a geographical indication shall, if valid, give,— (a) to the registered proprietor of the geographical indication and the authorised user or users thereof the right to obtain relief in respect of infringement of the geographical indication in the manner provided by this Act; (b) to the authorised user thereof the exclusive right to the use of the geographical indication in relation to the goods in respect of which the geographical indication is registered. (2) The exclusive right to the use of a geographical indication given under clause (b) of sub-section (1) shall be subject to any condition and limitation to which the registration is subject. (3) Where two or more persons are authorised users of geographical indications, which are identical with or nearly resemble each other, the exclusive right to the use of any of those geographical indications shall not (except so far as their respective rights are subject to any conditions or limitations entered on the register) be deemed to have been acquired by anyone of those persons as against any other of those persons merely by registration of the geographical indications, but each of those persons has otherwise the same rights as against other persons as he would have if he were the sole authorised user. **22. Infringement or registered geographical indications.—(1) A registered geographical indication** is infringed by a person who, not being an authorised user thereof,— (a) uses such geographical indication by any means in the designations or presentation of goods that indicates or suggests that such goods originate in a geographical area other than the true place of origin of such goods in a manner which misleads the persons as to the geographical origin of such goods; or (b) uses any geographical indication in such manner which constitutes an act of unfair competition including passing off in respect of registered geographical indication. _Explanation 1.—For the purposes of this clause, “act of unfair competition” means any act of_ competition contrary to honest practices in industrial or commercial matters. _Explanation 2.—For the removal of doubts, it is hereby clarified that the following acts shall be_ deemed to be acts of unfair competition, namely:— (i) all acts of such a nature as to create confusion by any means whatsoever with the establishment, the goods or the industrial or commercial activities, of a competitor; (ii) false allegations in the course of trade of such a nature as to discredit the establishment, the goods or the industrial or commercial activities, of a competitor; 1. Subs. by Act 33 of 2021, s. 22, for “tribunal” (w.e.f. 4-4-2021). # 11 ----- (iii) geographical indications, the use of which in the course of trade is liable to mislead the persons as to the nature, the manufacturing process, the characteristics, the suitability for their purpose, or the quantity, of the goods; (c) uses another geographical indication to the goods which, although literally true as to the territory, region or locality in which the goods originate, falsely represents to the persons that the goods originate in the territory, region or locality in respect of which such registered geographical indication relates. (2) The Central Government may, if it thinks necessary so to do for providing additional protection to certain goods or classes of goods under sub-section (3), by notification in the Official Gazette, specify such goods or class or classes of goods, for the purposes of such protection. (3) Any person who is not an authorised user of a geographical indication registered under this Act in respect of the goods or any class or classes of goods notified under sub-section (2), uses any other geographical indication to such goods or class or classes of goods not originating in the place indicated by such other geographical indication or uses such other geographical indication to such goods or class or classes of goods even indicating the true origin of such goods or uses such other geographical indication to such goods or class or classes of goods in translation of the true place of origin or accompanied by expression such as “kind”, “style”, “imitation” or the like expression, shall infringe such registered geographical indication. (4) Notwithstanding anything contained in this section, where the goods in respect of which a geographical indication has been registered are lawfully acquired by a person other than the authorised user of such geographical indication, further dealings in those goods by such person including processing or packaging, shall not constitute an infringement of such geographical indication, except where the condition of goods is impaired after they have been put in the market. **23. Registration to be prima facie evidence of validity.—(1) In all legal proceedings relating to a** geographical indication, the certificate of registration granted in this regard by the Registrar under this Act, being a copy of the entry in the register under the seal of the Geographical Indications Registry, shall be _prima facie evidence of the validity thereof and be admissible in all courts_ [1][before whom] without further proof or production of the original. (2) Nothing in this section shall be deemed to be affect the right of action in respect of an unregistered geographical indication. **24. Prohibition of assignment or transmission, etc.—Notwithstanding** anything contained in any law for the time being in force, any right to a registered geographical indication shall not be the subject matter of assignment, transmission, licensing, pledge, mortgage or any such other agreement: Provided that on the death of an authorised user his right in a registered geographical indication shall devolve on his successor in title under the law for the time being in force. CHAPTER V SPECIAL PROVISIONS RELATING TO TRADE MARKS AND PRIOR USERS **25. Prohibition of registration of geographical indication as trade mark.—Notwithstanding** anything contained in the Trade Marks Act, 1999 (47 of 1999), the Registrar of Trade Marks referred to in section 3 of that Act, shall, _suo motu or at the request of an interested party, refuse or invalidate the_ registration of a trade mark which— (a) contains or consists of a geographical indication with respect to the goods or class or classes of goods not originating in the territory of a country, or a region or locality in that territory which such geographical indication indicates, if use of such geographical indications in the trade mark for such goods, is of such a nature as to confuse or mislead the persons as to the true place of origin of such goods or class or classes of goods; (b) contains or consists of a geographical indication identifying goods or class or classes of goods notified under sub-section (2) of section 22. 1. Subs. by Act 33 of 2021, s. 22, for “and before the Appellate Board” (w.e.f. 4-4-2021) # 12 ----- **26. Protection to certain trade marks.—(1) Where a trade mark contains or consists of a** geographical indication and has been applied for or registered in good faith under the law relating to trade marks for the time being in force, or where rights to such trade mark have been acquired through use in good faith either— (a) before the commencement of this Act; or (b) before the date of filing the application for registration of such geographical indication under this Act, nothing contained in this Act shall prejudice the registrability or the validity of the registration of such trade mark under the law relating to the trade marks for the time being in force, or the right to use such trade mark, on the ground that such trade mark is identical with or similar to such geographical indication. (2) Nothing contained in this Act shall apply in respect of a geographical indication with respect to goods or class or classes of goods for which such geographical indication is identical with the term customary in common language as the common name of such goods in any part of India on or before the 1st day of January, 1995. (3) Nothing contained in this Act shall in any way prejudice the right of any person to use, in the course of trade, that person’s name or the name of that person’s predecessor in business, except where such name is used in such a manner as to confuse or mislead the people. (4) Notwithstanding anything contained in the Trade Marks Act, 1999 (47 of 1999) or in this Act, no action in connection with the use or registration of a trade mark shall be taken after the expiry of five years from the date on which such use or registration infringes any geographical indication registered under this Act has become known to the registered proprietor or authorised user registered in respect of such geographical indication under this Act or after the date of registration of the trade mark under the said Trade Marks Act subject to the condition that the trade mark has been published under the provisions of the said Trade Marks Act, 1999 or the rules made thereunder by that date, if such date is earlier than the date on which such infringement became known to such proprietor or authorised user and such geographical indication is not used or registered in bad faith. CHAPTER VI RECTIFICATION AND CORRECTION OF THE REGISTER **27. Power to cancel or vary registration and to rectify the register.—(1) On application made in** the prescribed manner to the [1][High Court] or to the Registrar by any person aggrieved, the [2][Registrar or the High Court, as the case may be,] may make such order as it may think fit for cancelling or varying the registration of a geographical indication or authorised user on the ground of any contravention, or failure to observe the condition entered on the register in relation thereto. (2) Any person aggrieved by the absence or omission from the register of any entry, or by any entry made in the register without sufficient cause, or by any entry wrongly remaining on the register, or by any error or defect in any entry in the register, may apply in the prescribed manner to the [1][High Court] or to the Registrar, and the [2][Registrar or the High Court, as the case may be,] may make such order for making, expunging or varying the entry as it may think fit. (3) The [2][Registrar or the High Court, as the case may be,] may in any proceeding under this section decide any question that may be necessary or expedient to decide in connection with the rectification of the register. (4) The [2][Registrar or the High Court, as the case may be,], of its own motion, may, after giving notice in the prescribed manner to the parties concerned and after giving them an opportunity of being heard, make any order referred to in sub-section (1) or sub-section (2). (5) Any order of the [1][High Court] rectifying the register shall direct that notice of the rectification shall be served upon the Registrar in the prescribed manner who shall upon receipt of such notice rectify the register accordingly. **28. Correction of register.—The Registrar may, on application made in the prescribed manner by** the registered proprietor or the authorised user,— 1. Subs. by Act 33 of 2021, s. 22, for “Appellate Board” (w.e.f. 4-4-2021). 2. Subs. by s. 22. ibid., for “tribunal” (w.e.f. 4-4-2021). # 13 ----- (a) correct any error in the name, address or description of the registered proprietor or the authorised user, as the case may be, of a geographical indication, or any other entry relating to the geographical indication on the register; (b) enter any change in the name, address or description of the association of persons or of producers or any ogranisation or authority, as the case may be, who is registered as proprietor of a geographical indication on the register; (c) cancel the entry of a geographical indication on the register; (d) strike out any goods or class or classes of goods from those in respect of which a geographical indication is registered from the register, and may make any consequential amendment or alteration in the certificate of registration, and for that purpose, may require the certificate of registration to be produced to him. **29. Alteration of registered geographical indications.—(1) The registered proprietor of a** geographical indication may apply in the prescribed manner to the Registrar for leave to add to or alter the geographical indication in any manner not substantially affecting the identity thereof, and the Registrar may refuse leave or may grant it on such terms and subject to such limitations as he may think fit. (2) The Registrar may cause an application under this section to be advertised in the prescribed manner in any case where it appears to him that it is expedient so to do, and where he does so, if within the prescribed time from the date of the advertisement any person gives notice to the Registrar in the prescribed manner of the opposition to the application, the Registrar shall, after hearing the parties if so required, decide the matter. (3) Where leave is granted under this section, the geographical indication as altered shall be advertised in the prescribed manner, unless the application has already been advertised under sub-section (2). **30. Adaptation of entries in register to amend or substitute classification of goods.—(1) The** Registrar shall not make any amendment of the register which would have the effect of adding any goods or classes of goods to those in respect of which a geographical indication is registered (whether in one or more classes) immediately before the amendment is to be made or antedating the registration of a geographical indication in respect of any goods: Provided that this sub-section, shall not apply when the Registrar is satisfied that compliance therewith would involve complexity and that the addition or antedating, as the case may be, would not affect any substantial quantity of goods and would not substantially prejudice the rights of any person. (2) A proposal so to amend the register shall be brought to the notice of the registered proprietor and every authorised user of the geographical indication affected and advertised in the prescribed manner, and may be opposed before the Registrar by any person aggrieved on the ground that the proposed amendment contravenes the provisions of sub-section (1). CHAPTER VII 1[APPEALS] **31. Appeals to the** **[2][High Court].—(1) Any person aggrieved by an order or decision of the** Registrar under this Act, or the rules made thereunder, may prefer an appeal to the [2][High Court] within three months from the date on which the order or decision sought to be appealed against is communicated to such person preferring the appeal. (2) No appeal shall be admitted if it is preferred after the expiry of the period specified under sub-section (1): Provided that an appeal may be admitted after the expiry of the period specified therefore, if the appellant satisfies the [2][High Court] that he had sufficient cause for not preferring the appeal within the specified period. 1. Subs. by Act 33 of 2021, s. 22, for “APPEALS TO THE APPELLATE BOARD” (w.e.f. 4-4-2021). 2. Subs. by s. 22, ibid., for “Appellate Board” (w.e.f. 4-4-2021). # 14 ----- 1* - - - **32. [Bar of jurisdiction of courts, etc.]—Omitted by The Tribunals Reforms Act, 2021 (33 of 2021),** _s. 22 (w.e.f. 4-4-2021)._ **33. [Procedure of the Appellate Board.]—Omitted by s. 22, ibid. (w.e.f. 4-4-2021).** **34. Procedure for application for rectification, etc., before [2][High Court].—(1) An application for** rectification of the register made to the [2][High Court] under section 27 shall be in such form as may be prescribed. (2) A certified copy of every order or judgment of the [2][High Court] relating to a registered geographical indication under this Act shall be communicated to the Registrar by the [2][High Court] and the Registrar shall give effect to the order of the Board and shall, when so directed, amend the entries in, or rectify, the register in accordance with such order. **35. Appearance of Registrar in legal proceedings.—(1) The Registrar shall have the right to appear** and be heard— (a) in any legal proceedings before the [2][High Court] in which the relief sought includes alteration or rectification of the register or in which any question relating to the practice of the Geographical Indications Registry is raised; (b) in any appeal to the Board from an order of the Registrar on an application for registration of a geographical indication or authorised user— (i) which is not opposed, and the application is either refused by the Registrar or is accepted by him subject to any amendments, modifications, conditions or limitations, or (ii) which has been opposed and the Registrar considers that his appearance is necessary in the public interest, and the Registrar shall appear in any case if so directed by the Board. (2) Unless the [2][High Court] otherwise directs, the Registrar may, in lieu of appearing, submit a statement in writing signed by him, giving such particulars as he thinks proper of the proceedings before him relating to the matter in issue or of the grounds of any decision given by him affecting it, or of the practice of the Geographical Indications Registry in like cases, or of other matters relevant to the issues and within his knowledge as Registrar, and such statement shall be evidence in the proceeding. **36. [Costs of Registrar in proceedings before Appellate Board.]—Omitted by The Tribunal Reforms** _Act 2021 (33 of 2021), s. 22 (w.e.f. 4-4-2021)._ CHAPTER VIII OFFENCES, PENALTIES AND PROCEDURE **37. Meaning of applying geographical indications.—(1) A person shall be deemed to apply a** geographical indication to goods who— (a) applies it to the goods themselves; or (b) applies it to any package in or with which the goods are sold, or exposed for sale, or had in possession for sale or for any purpose of trade or manufacture; or (c) places, encloses or annexes any goods which are sold, or exposed for sale, or had in possession for sale or for any purpose of trade or manufacture, in or with any package or other thing to which a geographical indication has been applied; or (d) uses a geographical indication in any manner reasonably likely to lead to the belief that the goods in connection with which it is used are designated or described by that geographical indication; or 1. Sub-section (3) omitted by Act 33 of 2021, s. 22 (w.e.f. 4-4-2021). 2. Subs. by s. 22, ibid., for “Appellate Board” (w.e.f. 4-4-2021). # 15 ----- (e) in relation to the goods uses a geographical indication in any sign, advertisement, invoice, catalogue, business letter, business paper, price list or other commercial documents and goods are delivered to a person in pursuance of a request or order made by reference to the geographical indication as so used. (2) A geographical indication shall be deemed to be applied to goods whether it is woven in, impressed on, or otherwise worked into, or annexed or affixed to, the goods or to any package or other thing. 1[37A. Adjudication of penalties.— The Registrar may, by an order, authorise an officer referred to in section 3, to be adjudicating officer for holding an inquiry and imposing penalty under the provisions of this Act, in the manner as may be prescribed, after giving a reasonable opportunity of being heard. **37B. Appeal.—(1) Whoever aggrieved by an order of the adjudicating officer under section 37A may** prefer an appeal to the appellate authority, who shall be an officer at least one rank above the adjudicating officer, within a period of sixty days from the date of receipt of the order, as the Central Government may by notification authorise in this behalf. (2) Every appeal under this section shall be preferred in such form and manner as may be prescribed. (3) An appeal may be admitted after the expiry of the period of sixty days if the appellant satisfies the appellate authority that he had sufficient cause for not preferring the appeal within that period. (4) No appeal shall be disposed of unless the appellant has been given a reasonable opportunity of being heard. (5) The appellate authority referred to in sub-section (1) shall dispose of the appeal within sixty days from the date of filing. (6) Notwithstanding anything contained in this Act, if the person fails to comply with the order of the adjudicating officer under section 37A or the order of the appellate authority under this section, as the case may be, within ninety days of such order, he shall, in addition to the penalty, be punishable with fine of one lakh rupees or imprisonment for a term which may extend to one year, or with both.] **38. Falsifying and falsely applying geographical indications.—(1) A person shall be deemed to** falsify a geographical indication who, either,— (a) without the assent of the authorised user of the geographical indication makes that geographical indication or deceptively similar geographical indication; or (b) falsifies any genuine geographical indication, whether by alteration, addition, effacement or otherwise. (2) A person shall be deemed to falsely apply to goods a geographical indication who, without the assent of the authorised user of the geographical indication,— (a) applies such geographical indication or a deceptively similar geographical indication to goods or any package containing goods; (b) uses any package bearing a geographical indication which is identical with or deceptively similar to the geographical indication of such authorised user, for the purpose of packing, filling or wrapping therein any goods other than the genuine goods of the authorised user of the geographical indication. (3) Any geographical indication falsified as mentioned in sub-section (1) or falsely applied as mentioned in sub-section (2), is in this Act referred to as a false geographical indication. (4) In any prosecution for falsifying a geographical indication or falsely applying a geographical indication to goods, the burden of proving the assent of proprietor shall lie on the accused. **39. Penalty for applying false geographical indications.—Any person who,—** (a) falsifies any geographical indication; or 1. Ins. by Act 18 of 2023, s. 2 and Schedule (w.e.f. 1-8-2024). # 16 ----- (b) falsely applies to goods any geographical indication; or (c) makes, disposes of, or has in his possession, any die, block, machine, plate or other instrument for the purpose of falsifying or of being used for falsifying, a geographical indication; or (d) applies to any goods to which an indication of the country or place in which they were made or produced or the name and the address of the manufacturer or person for whom the goods are manufactured is required to be applied under section 71, a false indication of such country, place, name or address; or (e) tampers with, alters or effaces an indication of origin which has been applied to any goods to which it is required to be applied under section 71; or (f) causes any of the things above-mentioned in this section to be done, shall, unless he proves that he acted, without intent to defraud, be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees: Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees. **40. Penalty for selling goods to which false geographical indication is applied.—Any person who** sells, lets for hire or exposes for sale, or hires or has in his possession for sale, goods or things to which any false geographical indication is applied or which, being required under section 71 to have applied to them an indication of the country or place in which they were made or produced or the name and address of the manufacturer, or person for whom the goods are manufactured or without the indications so required, shall, unless he proves,— (a) that, having taken all reasonable precautions against committing an offence against this section, he had at the time of commission of the alleged offence no reason to suspect the genuineness of the geographical indication or that any offence had been committed in respect of the goods; or (b) that, on demand by or on behalf of the prosecutor, he gave all the information in his power with respect to the person from whom he obtained such goods or things; or (c) that otherwise he had acted innocently, be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees: Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees. **41. Enhanced penalty on second or subsequent conviction.—Whoever having already been** convicted of an offence under section 39 or section 40 is again convicted of any such offence shall be punishable for the second and for every subsequent offence, with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to two lakh rupees: Provided that the court may, for adequate and special reason to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than one year or a fine of less than one lakh rupees: Provided further that for the purposes of this section, no cognizance shall be taken of any conviction made before the commencement of this Act. **42. Penalty for falsely representing a geographical indication as registered.—(1) No person shall** make any representation— (a) with respect to a geographical indication, not being a registered geographical indication, to the effect that it is a registered geographical indication; or # 17 ----- (b) to the effect that a registered geographical indication is registered in respect of any goods in respect of which it is not in fact registered; or (c) to the effect that registration of a geographical indication gives an exclusive right to the use thereof in any circumstances in which having regard to limitation entered on the register, the registration does not in fact give that right. (2) If any person contravenes any of the provisions of sub-section (1), he shall be [1][liable to penalty of a sum equal to one-half per cent. of the total sales or turnover, as the case may be, in business or of the gross receipts in profession as computed in the audited accounts of such person, or a sum equal to five lakh rupees, whichever is less]. (3) For the purposes of this section the use in India in relation to a geographical indication of the words “registered geographical indication” or any other expression, symbol or sign like “R.G.I.” referring whether expressly or impliedly to registration, shall be deemed to import a reference to registration in the register, except— (a) where that word or other expression, symbol or sign is used in direct association with other words delineated in characters at least as large as those in which that word or other expression, symbol or sign is delineated and indicating that the reference to registration as a geographical indication under the law of a country outside India being a country under the law of which the registration referred to is in fact in force; or (b) where that other expression, symbol or sign is of itself such as to indicate that the reference is to such registration as is mentioned in clause (a); or (c) where that word is used in relation to a geographical indication registered under the law of a country outside India and in relation solely to goods to be exported to that country for use in that country. **43. [Penalty for improperly describing a place of business as connected with the Geographical** **Indications Registry.]— Omitted by The Jan Vishwas (amendment of Provisions) Act, 2023 (18 of 2023),** _s. 2 and Schedule (w.e.f. 1-8-2024)._ **44. [Penalty for falsification of entries in the register.]—Omitted by s. 2 and Schedule, ibid. (w.e.f.** 1-8-2024). **45. No offence in certain cases.—The provisions of sections 39, 40 and 41 shall in relation to a** registered geographical indication or authorised user of such geographical indication, be subject to the rights created or recognised by this Act and no act or omission shall be deemed to be an offence under the aforesaid sections if,— (a) the alleged offence relates to a registered geographical indication and the act or omission is permitted under this Act; and (b) the alleged offence relates to a registered geographical indication and the act or omission is permitted under any other law for the time being in force. **46. Forfeiture of goods.—(1) Where a person is convicted of an offence under section 39 or section** 40 or section 41 or is acquitted of an offence under section 39 or section 40 on proof that he acted without intend or defraud, or under section 40 on proof of the matters specified in clause (a) or clause (b) or clause (c) of that section, the court convicting or acquitting him may direct the forfeiture to Government of all goods and things by means of, or in relation to, which the offence has been committed, or but for such proof as aforesaid would have been committed. (2) When a forfeiture is directed on a conviction and an appeal lies against the conviction, an appeal shall lie against the forfeiture also. (3) When, a forfeiture is directed on acquittal and the goods or things to which the direction relates are of value exceeding fifty rupees, an appeal against the forfeiture may be preferred, within thirty days 1. Subs. by Act 18 of 2023, s. 2 and Schedule, for certain words (w.e.f. 1-8-2024). # 18 ----- from the date of the direction, to the court to which in appealable cases appeal lie from sentences of the court which directed the forfeiture. (4) When a forfeiture is directed on a conviction, the court, before whom the person is convicted, may order any forfeited articles to be destroyed or otherwise disposed of as the court thinks fit. **47. Exemption of certain persons employed in ordinary course of business.—Where a person** accused of an offence under section 39 proves,— (a) that in the ordinary course of his business he is employed on behalf of other persons to apply geographical indications, or as the case may be, to make dies, blocks, machines, plates, or other instruments for making, or being used in making, geographical indications; (b) that in the case which is the subject of the charge he was so employed, and was not interested in the goods or other thing by way of profit or commission depend on the sale of such goods; (c) that, having taken all reasonable precautions against committing the offence charged, he had, at the time of the commission of the alleged offence, no reason to suspect the genuineness of the geographical indication; and (d) that, on demand made by or on behalf of the prosecutor, he gave all the information in his power with respect to the persons on whose behalf the geographical indication was applied, he shall be acquitted. **48. Procedure where invalidity of registration is pleaded by the accused.—(1) Where the offence** charged under section 39 or section 40 or section 41 is in relation to a registered geographical indication and the accused pleads that the registration of the geographical indication is invalid, the following procedure shall be followed:— (a) if the court is satisfied that such defence is prima facie tenable, it shall not proceed with the charge but shall adjourn the proceeding for three months from the date on which the plea of the accused is recorded to enable the accused to file an application before the [1][High Court] under this Act, for the rectification of the register on the ground that the registration is invalid; (b) if the accused proves to the court that he has made such application within the time so limited or within such further time as the court may for sufficient cause allow, the further proceedings in the prosecution shall stand stayed till the disposal of such application for rectification; (c) if within a period of three months or within such extended time as may be allowed by the court the accused fails to apply to the [1][High Court] for rectification of the register, the court shall proceed with the case as if the registration were valid. (2) Where before the institution of a complaint of an offence referred to in sub-section (1), any application for the rectification of the register concerning the geographical indication in question on the ground of invalidity of the registration thereof has already been properly made to and is pending before the [2][Registrar or the High Court, as the case may be,] the court shall stay the further proceedings in the prosecution pending the disposal of the application aforesaid and shall determine the charge against the accused in conformity with the result of the application for rectification in so far as the complainant relies upon the registration of his geographical indication. **49. Offences by companies.—(1) If the person committing an offence under this Act is a company,** the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. 1. Subs. by Act 33 of 2021, s. 22, for “Appellate Board” (w.e.f. 4-4-2021). 2. Subs. by s. 22, ibid., for “tribunal” (w.e.f. 4-4-2021). # 19 ----- (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **50. Cognizance of certain offences and the powers of police officer for search and seizure.—(1)** No court shall take cognizance of an offence under section 42 or section 43 or section 44 except on complaint in writing made by the Registrar or any officer authorised by him in writing: Provided that in relation to clause (b) of sub-section (1) of section 42, a court shall take a cognizance of an offence on the basis of a certificate issued by the Registrar to the effect that a registered geographical indication has been represented as registered in respect of any goods in respect of which it is not in fact registered. (2) No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the first class shall try an offence under this Act. (3) The offences under section 39 or section 40 or section 41 shall be cognizable. (4) Any police officer not below the rank of deputy superintendent of police or equivalent, may, if he satisfied that any of the offences referred to in sub-section (3) has been, is being, or is likely to be, committed, search and seize without warrant the goods, die, block, machine, plate, other instruments or things involved in committing the offence, wherever found, and all the articles so seized shall, as soon as practicable, be produced before the Judicial Magistrate of the first class or Metropolitan Magistrate, as the case may be: Provided that the police officer, before making any search and seizure, shall obtain the opinion of the Registrar on the facts involved in the offence relating to geographical indication and shall abide by the opinion so obtained. (5) Any person having an interest in any article seized under sub-section (4), may, within fifteen days of such seizure, make an application to the Judicial Magistrate of the first class or Metropolitan Magistrate, as the case may be, for such article being restored to him and the Magistrate, after hearing the application and the prosecution, shall make such order on the application as he may deem fit. **51. Costs of defence of prosecution.—In any prosecution under this Act, the court may order such** costs to be paid by the accused to the complainant, or by the complainant to the accused, as the court deemed reasonable having regard to all the circumstances of the case and the conduct of the parties and the costs so awarded shall be recoverable as if they were a fine. **52. Limitation of prosecution.—No prosecution for an offence under this Act shall be commenced** after the expiration of three years next after the commission of the offence charged or two years after the discovery thereof by the prosecutor, whichever expiration first happens. **53. Information as to commission of offence.—An officer of the Government whose duty it is to** take part in the enforcement of the provisions of this Chapter shall not be compelled in any court to say whence he got any information as to the commission of any offence against this Act. **54. Punishment for abetement in India of acts done out of India.—If any person, being within** India, abets the commission, without India, of any act which, if committed in India, would, under this Act, be an offence, he may be tried for such abetement in any place in India in which he may be found, and be punished therefor with the punishment to which he would be liable if he had himself committed in that place the act which he abetted. # 20 ----- CHAPTER IX MISCELLANEOUS **55. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any person in respect of anything which is in good faith done or intended to be done in pursuance of this Act. **56. Certain persons to be public servants.—Every person appointed under this Act shall be deemed** to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **57. Stay of proceedings where the validity of registration of the geographical indication is** **questioned, etc.—(1) Where in any suit for infringement of a geographical indication the defendant** pleads that registration of the geographical indication relating to plaintiff is invalid, the court trying the suit (hereinafter referred to as the court), shall,— (a) if any proceedings for rectification of the register to the geographical indication relating to plaintiff or defendant are pending before the Registrar or the [1][High Court], stay the suit pending the final disposal of such proceedings; (b) if no such proceedings are pending and the court is satisfied that the plea regarding the invalidity of the registration of the geographical indication relating to plaintiff or defendant is _prima_ _facie tenable, raise an issue regarding the same and adjourn the case for a period of three months from_ the date of the framing of the issue in order to enable the party concerned to apply to the [1][High Court] for rectification of the register. (2) If the party concerned proves to the court that he has made any such application as is referred to in clause (b) of sub-section (1) within the time specified therein or within such extended time as the court may for sufficient cause allow, the trial of the suit shall stand stayed until the final disposal of the rectification proceedings. (3) If no such application as aforesaid has been made within the time so specified or within such extended time as the court may allow, the issue as to the validity of the registration of the geographical indication concerned shall be deemed to have been abandoned and the court shall proceed with the suit in regard to the other issues in the case. (4) The final order made in any rectification proceedings referred to in sub-section (1) or sub-section (2) shall be binding upon the parties and the court shall dispose of the suit conformably to such order in so far as it relates to the issue as to the validity of the registration of the geographical indication. (5) The stay of a suit for the infringement of a geographical indication under this section shall not preclude the court from making any interlocutory order (including any order granting an injunction, directing account to be kept, appointing a receiver or attaching any property), during the period of the stay of the suit. **58. Application for rectification of register to be made to** **1[High Court] in certain** **cases.—(1) Where in a suit for infringement of a registered geographical indication the validity of the** registration of the geographical indication relating to plaintiff is questioned by the defendant or where in any such suit the plaintiff questions the validity of the registration of the geographical indication relating to defendant, the issue as to the validity of the registration of the geographical indication concerned shall be determined only on an application for the rectification of the register and, notwithstanding anything contained in section 27, such application shall be made to the [1][High Court] and not to the Registrar. (2) Subject to the provisions of sub-section (1), where an application for rectification of the register is made to the Registrar under section 27, the Registrar may, if he thinks fit, refer the application at any stage of the proceedings to the [1][High Court]. **59. Implied warranty on sale of indicated goods.—Where a geographical indication has been** applied to the goods on sale or in the contract for sale of any goods, the seller shall be deemed to warrant 1. Subs. by Act 33 of 2021, s. 22, for “Appellate Board” (w.e.f. 4-4-2021). # 21 ----- that the geographical indication is a genuine geographical indication and not falsely applied, unless the contrary is expressed in writing signed by or on behalf of the seller and delivered at the time of the sale of goods on contract to and accepted by the buyer. **60. Powers of Registrar.—In all proceedings under this Act before the Registrar,—** (a) the Registrar shall have all the powers of a civil court for the purposes of receiving evidence, administering oaths, enforcing the attendance of witnesses, compelling the discovery and production of documents and issuing commissions for the examination of witnesses; (b) the Registrar may, subject to any rules made in this behalf under section 87, make such orders as to costs as he considers reasonable, and any such order shall be executable as a decree of a civil court; (c) the Registrar may, on an application made in the prescribed manner, review his own decision. **61. Exercise of discretionary power by Registrar.—Subject to the provisions of section 64, the** Registrar shall not exercise any discretionary or other power vested in him by this Act or the rules made thereunder adversely to a person applying for the exercise of that power without (if so required by that person within the prescribed time) giving to the person an opportunity of being heard. **62. Evidence before Registrar.—In any proceeding under this Act before the Registrar, evidence** shall be given by affidavit: Provided that the Registrar may, if he thinks fit, take oral evidence in lieu of, or in addition to, such evidence by affidavit. **63. Death of party to a proceeding.—If a person who is a party to a proceeding under this Act (not** being a proceeding before [1]*** a court) dies pending the proceeding, the Registrar may, on request, and on proof to his satisfaction of the transmission of the interest of the deceased person, substitute in the proceeding his successor in interest in his place, or, if the Registrar is of opinion that the interest of the deceased person is sufficiently represented by the surviving parties, permit the proceeding to continue without the substitution of his successor in interest. **64. Extension of time.—(1) If the Registrar is satisfied, on application made to him in the prescribed** manner and accompanied by the prescribed fee, that there is sufficient cause for extending the time for doing any act (not being a time expressly provided in the Act), whether the time so specified has expired or not, he may, subject to such conditions as he may think fit to impose, extend the time and inform the parties accordingly. (2) Nothing in sub-section (1) shall be deemed to require the Registrar to hear the parties before disposing of an application for extension of time, and no appeal shall lie from any order of the Registrar under this section. **65. Abandonment.—Where, in the opinion of the Registrar, an applicant is in default in the** prosecution of an application filed under this Act, the Registrar may, by notice require the applicant to remedy the default within a time specified and after giving him, if so, desired, an opportunity of being heard, treat the application as abandoned, unless the default is remedied within the time specified in the notice. **66. Suit for infringement, etc., to be instituted before district court.—(1) No suit,—** (a) for the infringement of a registered geographical indication; or (b) relating to any right in a registered geographical indication; or (c) for passing of arising out of the use by the defendant of any geographical indication which is indentical on with or deceptively similar to the geographical indication relating to the plaintiff, whether registered or unregistered, shall be instituted in any court inferior to a district court having jurisdiction to try the suit. 1. The words “the Appellate Board or” omitted by Act 33 of 2021, s. 22 (w.e.f. 4-4-2021). # 22 ----- (2) For the purpose of clauses (a) and (b) of sub-section (1), a “district court having jurisdiction” shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), or any other law for the time being in force, include a district court within the local limits of whose jurisdiction, at the time of the institution of the suit or other proceeding, the person instituting the suit or proceeding, or, where there are more than one such persons any of them, actually and voluntarily resides or carries on business or personally works for gain. _Explanation.—For the purposes of sub-section (2), “person” includes the registered proprietor and_ the authorised user. **67. Relief in suit for infringement or for passing off.—(1) The relief which a court may grant in** any suit for infringement or for passing off referred to in section 66 includes injunction (subject to such terms, if any, as the court thinks fit) and at the option of the plaintiff, either damages or account of profits, together with or without any order for the delivery-up of the infringing labels and indications for destruction or erasure. (2) The order of injunction under sub-section (1) may include an _ex parte injunction or any_ interlocutory order for any of the following matters, namely:— (a) for discovery of documents; (b) preserving of infringing goods, documents or other evidence which are related to the subject-matter of the suit; (c) restraining the defendant from disposing of or dealing with his assets in a manner which may adversely affect plaintiff’s ability to recover damages, costs or other pecuniary remedies which may be finally awarded to the plaintiff. (3) Notwithstanding anything contained in sub-section (1), the court shall not grant relief by way of damages (other than nominal damages) on account of profits in any case— (a) where in a suit for infringement the defendant satisfies the court— (i) that at the time he commenced to use the geographical indication complained of in the suit he was unaware and had no reasonable ground for believing that the geographical indication of the plaintiff was on the register; and (ii) that when he became aware of the existence and nature of the plaintiff’s right in the geographical indication, he forthwith ceased to use the geographical indication in relation to good in respect of which it was registered; or (b) where in a suit for passing off, the defendant satisfies the court— (i) that at the time he commenced to use the geographical indication complained of in the suit he was unaware and had no reasonable ground for believing that the geographical indication relating to the plaintiff was in use; and (ii) that when he became aware of the existence and nature of the geographical indication relating to the plaintiff he forthwith ceased to use the geographical indication complained of. **68. Authorised user to be impleaded in certain proceedings.—(1) In every proceeding under** Chapter VI or under section 31, every authorised user of a geographical indication to which such proceeding relate, who is not himself an applicant in respect of any proceeding under that Chapter or section, shall be made a party to the proceeding. (2) Notwithstanding anything contained in any other law, an authorised user so made a party to the proceeding shall not be liable for any costs unless he enters an appearance and takes part in the proceeding. **69. Evidence of entries in register, etc., and things done by the Registrar.—(1) A copy of any** entry in the register or of any document referred to in sub-section (1) of section 78 purporting to be certified by the Registrar and sealed with the seal of the Geographical Indications Registry shall be # 23 ----- admitted in evidence in all courts and in all proceedings without further proof or production of the original. (2) A certificate purporting to be under the hand of the Registrar as to any entry, matter or thing that he is authorised by this Act or the rules to make or do shall be prima facie evidence of the entry having been made, and of the contents thereof, or of the matter or things having been done or not done. **70. Registrar and other officers not compellable to produce register, etc.—The Registrar or any** officer of the Geographical Indications Registry shall not, in any legal proceedings to which he is not a party, be compellable to produce the register or any other document in his custody, the contents of which can be proved by the production of a certified copy issued under this Act or to appear as a witness to prove the matters therein recorded unless by order of the court made for special cause. **71. Power to require goods to show indication of origin.—(1) The Central Government may, by** notification in the Official Gazette, require that goods of any class specified in the notification which are made or produced beyond the limits of India and imported into India, or, which are made or produced within the limits of India, shall, from such date as may be appointed by the notification not being less than three months from its issue, have applied to them an indication of the country or place in which they were made or produced, or of the name and address of the manufacturer or the person for whom the goods were manufactured. (2) The notification may specify the manner in which such indication shall be applied, that is to say, whether to goods themselves or in any other manner, and the times or occasions on which the presence of the indication shall be necessary, that is to say, whether on importation only, or also at the time of sale, whether by wholesale or retail or both. (3) No notification under this section shall be issued, unless application is made for its issue by persons or associations substantially representing the interests of dealers in, or manufacturers, producers, or users of, the goods concerned, or unless the Central Government is otherwise convinced that it is necessary in the public interest to issue the notification, with or without such inquiry, as the Central Government may consider necessary. (4) The provisions of section 23 of the General Clauses Act, 1897 (10 of 1897) shall apply to the issue of a notification under this section as they apply to the making of a rule or bye-law the making of which is subject to the condition of previous publication. (5) A notification under this section shall not apply to goods made or produced beyond the limits of India and imported into India, if in respect of those goods, the Commissioner of Customs is satisfied at the time of importation that they are intended for exportation whether after transhipment in or transit through India or otherwise. **72. Certificate of validity.—If in any legal proceedings for rectification of the register before the** 1[High Court] a decision is on contest given in favour of the registered proprietor or, as the case may be, authorised user of the geographical indication on the issue as to the validity of the registration of the geographical indication or the authorised user, the [1][High Court] may grant a certificate to that effect, and if such a certificate is granted, then, in any subsequent legal proceeding in which the said validity comes into question the said proprietor or the authorised user, as the case may be, on obtaining a final order or judgment in his favour affirming validity of the registration of the geographical indication or the authorised user, as the case may be, shall unless the said final order or judgment for sufficient reason directs otherwise, be entitled to his full cost charges and expenses as between legal practitioner and client. **73. Groundless threats of legal proceedings.—(1) Where a person, by means of circulars,** advertisements or otherwise, threatens a person with an action or proceeding for infringement of a geographical indication which is registered, or alleged by the first-mentioned person to be registered, or with some other like proceeding, a person aggrieved may, whether the person making the threats is or is not the registered proprietor or the authorised user of the geographical indication, bring a suit against the first-mentioned person and may obtain a declaration to the effect that the threats are unjustifiable, and an injunction against the continuance of the threats and may recover such damages (if any) as he has 1. Subs. by Act 33 of 2021, s. 22, for “Appellate Board” (w.e.f. 4-4-2021). # 24 ----- sustained, unless the first-mentioned person satisfies the court that the geographical indication is registered and that the acts in respect of which the proceedings were threatened, constitute, or, if done, would constitute, an infringement of the geographical indication. (2) The last preceding sub-section does not apply if the registered proprietor of the geographical indication or an authorised user thereof with due diligence commences and prosecutes an action against the person threatened for infringement of the geographical indication. (3) Nothing in this section shall render a legal practitioner or a registered geographical indications agent liable to an action under this section in respect of an act done by him in his professional capacity on behalf of a client. (4) A suit under sub-section (1) shall not be instituted in any court inferior to a district court. **74. Address for service.—An address for service stated in an application or notice of opposition** shall, for the purposes of the application or notice of opposition be deemed to be the address of the applicant or opponent, as the case may be, and all documents in relation to the application or notice of opposition may be served by leaving them at or sending them by post to the address for service of the applicant or opponent, as the case may be. **75. Trade usages, etc., to be taken into consideration.—In any proceeding relating to a** geographical indication, the [1][Registrar or the High Court, as the case may be,] shall admit evidence of the usages of the trade concerned and of any relevant geographical indication legitimately used by other persons. **76. Agents.—Where, by or under this Act, any act, other than the making of an affidavit, is required** to be done before the Registrar by any person, the act may, subject to the rules made in this behalf, be done instead of by that person himself, by a person duly authorised in the prescribed manner, who is,— (a) a legal practitioner, or (b) a person registered in the prescribed manner as a geographical indications agent, or (c) a person in the sole and regular employment of the principal. **77. Indexes.—There shall be kept under the directions and supervision of the Registrar,—** (a) an index of registered geographical indications, (b) an index of geographical indications in respect of which applications for registration are pending, (c) an index of the names of the proprietors of registered geographical indications, and (d) an index of the names of authorised users. **78. Documents open to public inspection.—(1) The following documents, subject to such** conditions as may be prescribed, be open to public inspection at the Geographical Indications Registry, namely:— (a) the register and any document upon which any entry in the register is based; (b) every notice of opposition to the registration of a geographical indication, application for rectification before the Registrar, counter-statement thereto, and any affidavit or document filed by the parties in any proceedings before the Registrar; (c) the indexes mentioned in section 77; and (d) such other documents as the Central Government may, by notification in the Official Gazette, specify: 1. Subs. by Act 33 of 2021, s. 22, for “tribunal” (w.e.f. 4-4-2021). # 25 ----- Provided that where such register is maintained wholly or partly on computer, the inspection of such register under this section shall be made by inspecting the computer print out of the relevant entry in the register so maintained on computer. (2) Any person may, on an application to the Registrar and on payment of such fee as may be prescribed, obtain a certified copy of any entry in the register or any document referred to in sub-section (1). **79. Reports of Registrar to be placed before Parliament.—The Central Government shall cause to** be placed before both Houses of Parliament once a year a report respecting the execution by or under this Act. **80. Fees and surcharge.—(1) There shall be paid in respect of applications and registrations and** other matters under this Act such fees and surcharge as may be prescribed by the Central Government. (2) Where a fee is payable in respect of the doing of an act by the Registrar, the Registrar shall not do that act until the fee has been paid. (3) Where a fee is payable in respect of the filing of a document at the Geographical Indications Registry, the document shall be deemed not to have been filed at the registry until the fee has been paid. **81. Savings in respect of certain matters in Chapter VIII.—Nothing in Chapter VIII shall—** (a) exempt any person from any suit or other proceeding which might, but for anything in that Chapter, be brought against him, or (b) be construed so as to render liable to any prosecution or punishment any servant of a master resident in India who in good faith acts in obedience to the instructions of such master, and, on demand made by or on behalf of the prosecutor, has given full information as to his master and as to the instructions which he has received from his master. **82. Declarations as to title of geographical indication not registerable under the Registration** **Act, 1908.—Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908), no** document declaring or purporting to declare any title of a person to a geographical indication other than a registered geographical indication shall be registered under that Act. **83. Government to be bound.—The provisions of this Act shall be binding on the Government.** **84. Special provisions relating to applications for registration from citizens of convention** **countries.—(1) With a view to the fulfilment of a treaty, convention or arrangement with any country or** a country which is a member of a group of countries or union of countries or Inter-Governmental Organisations outside India which affords to citizens of India similar privileges as granted to its own citizens, the Central Government may, by notification in the Official Gazette, declare such country or group of countries or union of countries or Inter-Governmental Organisations to be a convention country or convention countries for the purposes of this Act. (2) Nothing contained in this Act or the Trade Marks Act, 1999 (47 of 1999) shall prevent a continued and similar use of geographical indication relating to a country or a country which is a member of a group of countries or union of countries or any Inter-Governmental Organisations, as the case may be, notified under sub-section (1) identifying wines or spirits in connection with goods by any citizen or domiciliary of such country who has used that geographical indication in continuous manner with regard to such goods or any goods relating to such goods, as the case may be, in any part of the territory of that country either— (a) for at least ten years preceding the 15th day of April, 1994; or (b) in good faith preceding the date referred to in clause (a). **85. Provision as to reciprocity.—Where any country or a country which is a member of a group of** countries or union of countries or any Inter-Governmental Organisation specified by the Central Government in this behalf by notification in the Official Gazette does not accord to citizens of India the same rights in respect of the registration and protection of geographical indications as it accords to its own # 26 ----- nationals, no nationals of such country or a country which is a member of a group of countries or union or countries or Inter-Governmental Organisations, as the case may be, shall be entitled— (a) to apply for the registration of, or be registered as the proprietor of geographical indication; (b) to apply for registration or be registered as an authorised user of a geographical indication. **86. Powers of Central Government to remove difficulties.—(1) If any difficulty arises in giving** effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of five years from the commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **87. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette** and subject to the condition of previous publication, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the matters to be included in the Register of Geographical Indications under sub-section (1), and the safeguards to be observed in the maintenance of such register in computer floppies or diskettes under sub-section (2) of section 6; (b) the manner of incorporation of particulars relating to registration of geographical indications in Part A under sub-section (2) and the manner of incorporation of particulars relating to the registration of the authorised users under sub-section (3) of section 7; (c) the classification of goods and the manner of publication of the alphabetical index of classification of goods and the definite territory or locality or region for the purpose of registration of geographical indications under sub-section (1) of section 8; (d) the form in which and the manner in which an application for registration of a geographical indication may be made and the fees which may accompany the application under sub-section (1) and the particulars to be made in the statement of producers of goods who proposes to be initially registered with the registration under clause (f) of sub-section (2) of section 11; (e) the manner of publication of advertisement of accepted application, for registration of geographical indications, etc., under sub-section (1), and the manner of notifying the corrections or amendments made in the application under sub-section (2) of section 13; (f) the manner in which and the fee which may accompany an application and the manner of giving notice under sub-section (1) and the manner of sending counter statement under sub-section (2) and the manner of submission of evidence and the time therefor under sub-section (4) of section 14; (g) the form of certificate of registration under sub-section (2) and the manner of giving notice to the applicant under sub-section (3) of section 16; (h) the manner of applying for registration as an authorised user under sub-section (1) and the manner of submitting statements and documents along with such application and the fee which may accompany such application under sub-section (2) of section 17; (i) the manner of making application, the time within which such application is to be made and the fee payable with each application, under sub-section (3) and the time within which the Registrar shall send notice and the manner of such notice under sub-section (4) and the form in which and the fee which may accompany an application for renewal to be made under sub-section (5) of section 18; (j) the manner of making applications under sub-sections (1) and (2), the manner of giving notice under sub-section (4) and the manner of service of notice of rectification under sub-section (5) of section 27; # 27 ----- (k) the manner of making an application for correction, etc., under section 28; (l) the manner of making an application under sub-section (1), the manner of advertising an application under sub-section (1), the time and manner of notice by which an application may be opposed under sub-sections (2) and (3) of section 29; (m) the manner of advertisement under sub-section (2) of section 30; 1* - - - (o) the form in which an application for rectification shall be made, under sub-section (1) of section 34; 2[(oa) the manner of holding inquiry and imposing penalty under section 37A; (ob) the form and manner of preferring appeal under sub-section (2) of section 37B;] (p) the manner of making an application for review under clause (c) of section 60; (q) the time within which an application is to be made to the Registrar for exercising his discretionary power under section 61; (r) the manner of making an application and the fee payable therefore under sub-section (1) of section 64; (s) the manner of authorising any person to act and the manner of registration of a geographical indications agent under section 76; (t) the fee and surcharge payable for applications and registrations and other matters under sub-section (1) of section 80; (u) any other matter which is required to be, or may be, prescribed. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 1. Clause (n) omitted by Act 33 of 2021, s. 22 (w.e.f. 4-4-2021). 2. Ins. by Act 18 of 2023, s. 2 and Schedule (w.e.f. 1-8-2024). # 28 -----
25-May-2000
16
The Designs Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/1917/1/200016.pdf
central
# THE DESIGNS ACT, 2000 _______ # ARRANGEMENT OF SECTIONS _______ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGISTRATION OF DESIGNS 3. Controller and other officers. 4. Prohibition of registration of certain designs. 5. Application for registration of designs. 6. Registration to be in respect of particular article. 7. Publication of particulars of registered designs. 8. Power of Controller to make orders regarding substitution of application, etc. 9. Certificate of registration. 10. Register of designs. CHAPTER III COPYRIGHT IN REGISTERED DESIGNS 11. Copyright on registration. 12. Restoration of lapsed designs. 13. Procedure for disposal of applications for restoration of lapsed designs. 14. Rights of proprietor of lapsed design which have been restored. 15. Requirements before delivery on sales. 16. Effect of disclosure on copyright. 17. Inspection of registered designs. 18. Information as to existence of copyright. 19. Cancellation of registration. 20. Designs to bind Government. CHAPTER IV INDUSTRIAL AND INTERNATIONAL EXHIBITIONS 21. Provisions as to exhibitions. CHAPTER V LEGAL PROCEEDINGS 22. Piracy of registered design. 23. Application of certain provisions of the Act as to patents to designs. ----- SECTIONS 24. Fees. CHAPTER VI GENERAL _Fees_ _Provisions as to registers and other documents in the patent office_ 25. Notice of trust not to be entered in registers. 26. Inspection of and extracts from registers. 27. Privilege of reports of Controller. 28. Prohibition and publication of specification, drawings, etc., where application abandoned, etc. 29. Power of Controller to correct clerical errors. 30. Entry of assignment and transmissions in registers. 31. Rectification of register. CHAPTER VII POWERS AND DUTIES OF CONTROLLER 32. Powers of Controller in proceedings under Act. 33. Exercise of discretionary power by Controller. 34. Power of Controller to take directions of the Central Government. 35. Refusal to register a design in certain cases. 36. Appeals to the High Court. CHAPTER VIII EVIDENCE, ETC. 37. Evidence before the Controller. 38. Certificate of Controller to be evidence. 39. Evidence of documents in patent office. 40. Applications and notices by post. 41. Declaration by infant, lunatic, etc. 42. Avoidance of certain restrictive conditions. CHAPTER IX AGENCY 43. Agency. CHAPTER X POWERS, ETC., OF CENTRAL GOVERNMENT 44. Reciprocal arrangement with the United Kingdom and other convention countries or group of countries of inter-governmental organisations. 45. Report of the Controller to be placed before Parliament. 46. Protection of security of India. 47. Power of Central Government to make rules. CHAPTER XI REPEAL AND SAVINGS 48. Repeal and savings. ----- # THE DESIGNS ACT, 2000 ACT NO. 16 OF 2000 [25th May, 2000.] # An Act to consolidate and amend the law relating to protection of designs. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Designs Act, 2000.** (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2.** **Definitions.—In this Act, unless there is anything repugnant in the subject or context,—** (a) “article” means any article of manufacture and any substance, artificial, or partly artificial and partly natural; and includes any part of an article capable of being made and sold separately; (b) “Controller” means the Controller-General of Patents, Designs and Trade Marks referred to in section 3; (c) “copyright” means the exclusive right to apply a design to any article in any class in which the design is registered; (d) “design” means only the features of shape, configuration, pattern, ornament or composition of lines or colours applied to any article whether in two dimensional or three dimensional or in both forms, by any industrial process or means, whether manual, mechanical or chemical, separate or combined, which in the finished article appeal to and are judged solely by the eye; but does not include any mode or principle of construction or anything which is in substance a mere mechanical device, and does not include any trade mark as defined in clause (v) of sub-section (1) of section 2 of the Trade and Merchandise Marks Act, 1958 (43 of 1958) or property mark as defined in section 479 of the Indian Penal Code (45 of 1860) or any artistic work as defined in clause (c) of section 2 of the Copyright Act, 1957 (14 of 1957). (e) “High Court” shall have the same meaning as assigned to it in clause (i) of section 2 of the Patents Act, 1970 (39 of 1970); (f) “legal representative” means a person who in law represents the estate of a deceased person; (g) “original”, in relation to a design, means originating from the author of such design and includes the cases which though old in themselves yet are new in their application; (h) “Patent Office” means the patent office referred to in section 74 of the Patents Act, 1970 (39 of 1970); (i) “prescribed” means prescribed by rules made under this Act; (j) “proprietor of a new or original design”,— (i) where the author of the design, for good consideration, executes the work for some other person, means the person for whom the design is so executed; (ii) where any person acquires the design or the right to apply the design to any article, either exclusively of any other person or otherwise, means, in the respect and to the extent in and to which the design or right has been so acquired, the person by whom the design or right is so acquired; and 1 11 h 2001 _d_ ifi i S O 414( ) d d 11 h 2001 G f di di ----- (iii) in any other case, means the author of the design; and where the property in or the right to apply, the design has devolved from the original proprietor upon any other person, includes that other person. CHAPTER II REGISTRATION OF DESIGNS **3. Controller and other officers.—(1) The Controller-General of Patents, Designs and Trade Marks** appointed under sub-section (1) of section 4 of the Trade and Merchandise Marks Act, 1958 (43 of 1958) shall be the Controller of Designs for the purposes of this Act. (2) For the purposes of this Act, the Central Government may appoint as many examiners and other officers with such designations as it thinks fit. (3) Subject to the provisions of this Act, the officers appointed under sub-section (2) shall discharge under the superintendence and directions of the Controller such functions of the Controller under this Act as he may, from time to time, by general or special order in writing, authorise them to discharge. (4) Without prejudice to the generality of the provisions of sub-section (3), the Controller may, by order in writing and for reasons to be recorded therein, withdraw any matter pending before an officer appointed under sub-section (2) and deal with such matter himself either de novo or from the stage it was so withdrawn or transfer the same to another officer appointed under sub-section (2) who may, subject to special directions in the order of transfer, proceed with the matter either de novo or from the stage it was so transferred. **4. Prohibition of registration of certain designs.—A design which—** (a) is not new or original; or (b) has been disclosed to the public anywhere in India or in any other country by publication in tangible form or by use or in any other way prior to the filing date, or where applicable, the priority date of the application for registration; or (c) is not significantly distinguishable from known designs or combination of known designs; or (d) comprises or contains scandalous or obscene matter, shall not be registered. **5. Application for registration of designs.—(1) The Controller may, on the application of any** person claiming to be the proprietor of any new or original design not previously published in any country and which is not contrary to public order or morality, register the design under this Act: Provided that the Controller shall before such registration refer the application for examination, by an examiner appointed under sub-section (2) of section 3, as to whether such design is capable of being registered under this Act and the rules made thereunder and consider the report of the examiner on such reference. (2) Every application under sub-section (1) shall be in the prescribed form and shall be filed in the patent office in the prescribed manner and shall be accompanied by the prescribed fee. (3) A design may be registered in not more than one class, and, in case of doubt as to the class in which a design ought to be registered, the Controller may decide the question. (4) The Controller may, if he thinks fit, refuse to register any design presented to him for registration; but any person aggrieved by any such refusal may appeal to the High Court. (5) An application which, owing to any default or neglect on the part of the applicant, has not been completed so as to enable registration to be effected within the prescribed time shall be deemed to be abandoned. (6) A design when registered shall be registered as of the date of the application for registration. **6. Registration to be in respect of particular article.—(1) A design may be registered in respect of** any or all of the articles comprised in a prescribed class of articles. (2) Any question arising as to the class within which any article falls shall be determined by the ----- (3) Where a design has been registered in respect of any article comprised in a class of article, the application of the proprietor of the design to register it in respect of some one or more other articles comprised in that class of articles shall not be refused, nor shall the registration thereof invalidated— (a) on the ground of the design not being a new or original design, by reason only that it was so previously registered; or (b) on the ground of the design having been previously published in India or in any other country, by reason only that it has been applied to article in respect of which it was previously registered: Provided that such subsequent registration shall not extend the period of copyright in the design beyond that arising from previous registration. (4) Where any person makes an application for the registration of a design in respect of any article and either— (a) that design has been previously registered by another person in respect of some other article; or (b) the design to which the application relates consists of a design previously registered by another person in respect of the same or some other article with modifications or variations not sufficient to alter the character or substantially to affect the identity thereof, then, if at any time while the application is pending the applicant becomes the registered proprietor of the design previously registered, the foregoing provisions of this section shall apply as if at the time of making the application, the applicant, had been the registered proprietor of that design. **7. Publication of particulars of registered designs.—The Controller shall, as soon as may be after** the registration of a design, cause publication of the prescribed particulars of the design to be published in such manner as may be prescribed and thereafter the design shall be open to public inspection. **8. Power of Controller to make orders regarding substitution of application, etc.—(1) If the** Controller is satisfied on a claim made in the prescribed manner at any time before a design has been registered that by virtue of any assignment or agreement in writing made by the applicant or one of the applicants for registration of the design or by operation of law, the claimant would, if the design were then registered, be entitled thereto or to the interest of the applicant therein, or to an undivided share of the design or of that interest, the Controller may, subject to the provisions of this section, direct that the application shall proceed in the name of the claimant or in the names of the claimants and the applicant or the other joint applicant or applicants, accordingly, as the case may require. (2) No such direction as aforesaid shall be given by virtue of any assignment or agreement made by one of two or more joint applicants for registration of a design except with the consent of the other joint applicant or applicants. (3) No such direction as aforesaid shall be given by virtue of any assignment or agreement for the assignment of the benefit of a design unless— (a) the design is identified therein by reference to the number of the application for the registration; or (b) there is produced to the Controller an acknowledgement by the person by whom the assignment or agreement was made that the assignment or agreement relates to the design in respect of which that application is made; or (c) the rights of the claimant in respect of the design have been finally established by the decision of a court; or (d) the Controller gives directions for enabling the application to proceed or for regulating the manner in which it should be proceeded with under sub-section (5). (4) Where one of two or more joint applicants for registration of a design dies at any time before the design has been registered, the Controller may, upon a request in that behalf made by the survivor or survivors, and with the consent of the legal representative of the deceased, direct that the application shall proceed in the name of the survivor or survivors alone. (5) If any dispute arises between joint applicants for registration of a design whether or in what ----- the prescribed manner by any of the parties, and after giving to all parties concerned an opportunity to be heard, give such directions as he thinks fit for enabling the application to proceed in the name of one or more of the parties alone or for regulating the manner in which it should be proceeded with, or for both those purposes, as the case may require. **9. Certificate of registration.—(1) The Controller shall grant a certificate of registration to the** proprietor of the design when registered. (2) The Controller may, in case of loss of the original certificate, or in any other case in which he deems it expedient, furnish one or more copies of the certificate. **10. Register of designs.—(1) There shall be kept at the patent office a book called the register of** designs, wherein shall be entered the names and addresses of proprietors of registered designs, notifications of assignments and of transmissions of registered designs, and such other matter as may be prescribed and such register may be maintained wholly or partly on computer, floppies or diskettes, subject to such safeguards as may be prescribed. (2) Where the register is maintained wholly or partly on computer floppies and diskettes under sub-section (1), any reference in this Act to any entry in the register shall be construed as the reference to entry so maintained on computer floppies or diskettes. (3) The register of designs existing at the commencement of this Act shall be incorporated with and form part of the register of designs under this Act. (4) The register of designs shall be _prima facie_ evidence of any matter by this Act directed or authorized to be entered therein. CHAPTER III COPYRIGHT IN REGISTERED DESIGNS **11. Copyright on registration.—(1) When a design is registered, the registered proprietor of the** design shall, subject to the provisions of this Act, have copyright in the design during ten years from the date of registration. (2) If, before the expiration of the said ten years, application for the extension of the period of copyright is made to the Controller in the prescribed manner, the Controller shall, on payment of the prescribed fee, extend the period of copy-right for a second period of five years from the expiration of the original period of ten years. **12. Restoration of lapsed designs.—(1) Where a design has ceased to have effect by reason of** failure to pay the fee for the extension of copyright under sub-section (2) of section 11, the proprietor of such design or his legal representative and where the design was held by two or more persons jointly, then, with the leave of the Controller one or more of them without joining the others, may, within one year from the date on which the design ceased to have effect, make an application for the restoration of the design in the prescribed manner on payment of such fee as may be prescribed. (2) An application under this section shall contain a statement, verified in the prescribed manner, fully setting out the circumstances which led to the failure to pay the prescribed fee, and the Controller may require from the applicant such further evidence as he may think necessary. **13. Procedure for disposal of applications for restoration of lapsed designs.—(1) If, after hearing** the applicant in cases where the applicant so desires or the Controller thinks fit, the Controller is satisfied that the failure to pay the fee for extension of the period of copyright was unintentional and that there has been no undue delay in the making of the application, the Controller shall upon payment of any unpaid fee for extension of the period of copyright together with prescribed additional fee restore the registration of design. (2) The Controller may, if he thinks fit as a condition of restoring the design, require that any entry shall be made in the register of any document or matter which under the provisions of this Act, has to be entered in the register but which has not been so entered. **14. Rights of proprietor of lapsed design which have been restored.—(1) Where the registration** of a design is restored, the rights of the registered proprietor shall be subject to such provisions as may be prescribed and to such other provisions as the Controller thinks fit to impose for the protection or ----- contract or otherwise to avail themselves of, the benefit of applying the design between the date when the registration of the design ceased to have effect and the date of restoration of the registration of the design. (2) No suit or other proceeding shall be commenced in respect of piracy of a registered design or infringement of the copyright in such design committed between the date on which the registration of the design ceased to have effect and the date of the restoration of the design. **15. Requirements before** **delivery on sales.—(1) Before delivery on sale of any articles to which a** registered design has been applied, the proprietor shall— (a) (if exact representations or specimens were not finished on the application for registration) furnish to the Controller the prescribed number of exact representations or specimens of the design; and, if he fails to do so, the Controller may, after giving notice thereof to the proprietor, erase his name from the register and thereupon the copyright in the design shall cease; and (b) causes each such article to be marked with the prescribed mark, or with the prescribed words or figures denoting that the design is registered; and, if he fails to do so, the proprietor shall not be entitled to recover any penalty or damages in respect of any infringement of his copyright in the design unless he shows that he took all proper steps to ensure the marking of the article, or unless he shows that the infringement took place after the person guilty thereof knew or had received notice of the existence of the copyright in the design. (2) Where a representation is made to the Central Government by or on behalf of any trade or industry that in the interest of the trade or industry it is expedient to dispense with or modify as regards any class or description of articles any of the requirements of this section as to marking, the Central Government may, if it thinks fit, by rule under this Act, dispense with or modify such requirements as regards any such class or description of articles to such extent and subject to such conditions as it thinks fit. **16.** **Effect of disclosure on copyright.—The disclosure of a design by the proprietor to any other** person, in such circumstances as would make it contrary to good faith for that other person to use or publish the design, and the disclosure of a design in breach of good faith by any person, other than the proprietor of the design, and the acceptance of a first and confidential order for articles bearing a new or original textile design intended for registration, shall not be deemed to be a publication of the design sufficient to invalidate the copyright thereof if registration thereof is obtained subsequently to the disclosure or acceptance. **17. Inspection of registered designs.—(1) During the existence of copyright in a design, any person** on furnishing such information as may enable the Controller to identify the design and on payment of the prescribed fee may inspect the design in the prescribed manner. (2) Any person may, on an application to the Controller and on payment of such fee as may be prescribed, obtain a certified copy of any registered design. **18. Information as to existence of copyright.—On the request of any person furnishing such** information as may enable the Controller to identify the design, and on payment of the prescribed fee, the Controller shall inform such person whether the registration still exists in respect of the design, and, if so, in respect of what classes of articles, and shall state the date of registration, and the name and address of the registered proprietor. **19. Cancellation of registration.—(1) Any person interested may present a petition for the** cancellation of the registration of a design at any time after the registration of the design, to the Controller on any of the following grounds, namely:— (a) that the design has been previously registered in India; or (b) that it has been published in India or in any other country prior to the date of registration; or (c) that the design is not a new or original design; or (d) that the design is not registrable under this Act; or (e) that it is not a design as defined under clause (d) of section 2. ----- (2) An appeal shall lie from any order of the Controller under this section to the High Court, and the Controller may at any time refer any such petition to the High Court, and the High Court shall decide any petition so referred. **20.** **Designs to bind Government.—A registered design shall have to all intents the like effect as** against the Government as it has against any person and the provisions of Chapter XVII of the Patents Act, 1970 (39 of 1970) shall apply to registered designs as they apply to patents. CHAPTER IV INDUSTRIAL AND INTERNATIONAL EXHIBITIONS **21. Provisions as to exhibitions.—The exhibition of a design, or of any article to which a design is** applied, at an industrial or other exhibition to which the provisions of this section have been extended by the Central Government by notification in the Official Gazette, or the publication of a description of the design, during or after the period of the holding of the exhibition, or the exhibition of the design or the article or the publication of a description of the design by any person elsewhere during or after the period of the holding of the exhibition, without the privity or consent of the proprietor, shall not prevent the design from being registered or invalidate the registration thereof: Provided that— (a) the exhibitor exhibiting the design or article, or publishing a description of the design, gives to the Controller previous notice in the prescribed form; and (b) the application for registration is made within six months from the date of first exhibiting the design or article or publishing a description of the design. CHAPTER V LEGAL PROCEEDINGS **22. Piracy of registered design.—(1) During the existence of copyright in any design it shall not be** lawful for any person— (a) for the purpose of sale to apply or cause to be applied to any article in any class of articles in which the design is registered, the design or any fraudulent or obvious imitation thereof, except with the license or written consent of the registered proprietor, or to do anything with a view to enable the design to be so applied; or (b) to import for the purposes of sale, without the consent of the registered proprietor, any article belonging to the class in which the design has been registered, and having applied to it the design or any fraudulent or obvious imitation thereof; or (c) knowing that the design or any fraudulent or obvious imitation thereof has been applied to any article in any class of articles in which the design is registered without the consent of the registered proprietor, to publish or expose or cause to be published or exposed for sale that article. (2) If any person acts in contravention of this section, he shall be liable for every contravention— (a) to pay to the registered proprietor of the design a sum not exceeding twenty-five thousand rupees recoverable as a contract debt, or (b) if the proprietor elects to bring a suit for the recovery of damages for any such contravention, and for an injunction against the repetition thereof, to pay such damages as may be awarded and to be restrained by injunction accordingly: Provided that the total sum recoverable in respect of any one design under clause (a) shall not exceed fifty thousand rupees: Provided further that no suit or any other proceeding for relief under this sub-section shall be instituted in any court below the court of District Judge. (3) In any suit or any other proceeding for relief under sub-section (2), ever ground on which the registration of a design may be cancelled under section 19 shall be available as a ground of defence. (4) Notwithstanding anything contained in the second proviso to sub-section (2), where any ground or which the registration of a design may be cancelled under section 19 has been availed of as a ground of ----- defence under sub-section (3) in any suit or other proceeding for relief under sub-section (2), the suit or such other proceedings shall be transferred by the Court, in which the suit or such other proceeding is pending, to the High Court for decision. (5) When the court makes a decree in a suit under sub-section (2), it shall send a copy of the decree to the Controller, who shall cause an entry thereof to be made in the register of designs. **23.** **Application of certain provisions of the Act as to patents to designs.—The provisions of the** Patents Act, 1970 (39 of 1970) with regard to certificates of the validity of a patent, and to the remedy in case of groundless threats of legal proceedings by a patentee shall apply in the case of registered designs in like manner as they apply in the case of patents, with the substitution of references to the copyright in a design for reference to a patent, and of references to the proprietor of a design for references to patentee, and of references to the design for references to the invention. CHAPTER VI GENERAL _Fees_ **24. Fees.—(1) There shall be paid in respect of the registration of designs and applications therefor** and in respect of other matters relating to designs under this Act such fees as may be prescribed. (2) A proceeding in respect of which a fee is payable under this Act or the rules made thereunder shall be of no effect unless the fee has been paid. _Provisions as to registers and other documents in the patent office_ **25. Notice of trust not to be entered in registers.—There shall not be entered in any register kept** under this Act, or be receivable by the Controller, any notice of any trust expressed, implied or constructive. **26.** **Inspection of and extracts from registers.—Every register kept under this Act shall at all** convenient times be open to the inspection of the public, subject to the provisions of this Act; and certified copies, sealed with the seal of the Patent Office, of any entry in any such register shall be given to any person requiring the same on payment of the prescribed fee: Provided that where such register is maintained wholly or partly on computer, the inspection of such register under this section shall be made by inspecting the computer printout of the relevant entry in the register so maintained on computer. **27. Privilege of reports of Controller.—Reports of or to the Controller made under this Act other** than the report referred to in section 45 shall not in any case be published or be open to public inspection. **28.** **Prohibition and publication of specification, drawings, etc., where application abandoned,** **etc.—Where an application for a design has been abandoned or refused, the application and any drawings,** photographs, tracings, representations or specimens left in connection with the application shall not at any time be open to public inspection or be published by the Controller. **29.** **Power of Controller to correct clerical errors.—The Controller may, on request in writing** accompanied by the prescribed fee, correct any clerical error in the representation of a design or in the name or address of the proprietor of any design, or in any other matter, which is entered upon the register of designs. **30. Entry of assignment and transmissions in registers.—(1) Where a person becomes entitled by** assignments, transmission or other operation of law to the copyright in a registered design, he may make application in the prescribed form to the Controller to register his title, and the Controller shall, on receipt of such application and on proof of title to his satisfaction, register him as the proprietor of such design, and shall cause an entry to be made in the prescribed manner in the register of the assignment, transmission or other instrument affecting the title. (2) Where any person becomes entitled as mortgagee, licensee or otherwise to any interest in a registered design, he may make an application in the prescribed form to the Controller to register his title, and the Controller shall, on receipt of such application and on proof of title to his satisfaction, cause notice of the interest to be entered in the prescribed manner in the register of designs, with particulars of th i t t if ti h i t t ----- (3) For the purposes of sub-section (1) or sub-section (2), an assignment of a design or of a share in a design, a mortgage, licence or the creation of any other interest in a design shall not be valid unless the same were in writing and the agreement between the parties concerned is reduced to the form of an instrument embodying all the terms and conditions governing their rights and obligation and the application for registration of title under such instrument is filed in the prescribed manner with the Controller within six months from the execution of the instrument or within such further period not exceeding six months in the aggregate as the Controller on application made in the prescribed manner allows: Provided that the instrument shall, on entry of its particulars in the register under sub-section (1) or sub-section (2), have the effect from the date of its execution. (4) The person registered as the proprietor of a design shall, subject to the provisions of this Act and to any rights appearing from the register to be vested in any other person, have power absolutely to assign, grant licenses as to, or otherwise deal with, the design and to give effectual receipts for any consideration for any such assignment, licence or dealing: Provided that any equities in respect of the design may be enforced in like manner as in respect of any other movable property. (5) Except in the case of an application made under section 31, a document or instrument in respect of which no entry has been made in the register in accordance with the provisions of sub-sections (1) and (2) shall not be admitted in evidence in any court in proof of the title to copyright in a design or to any interest therein, unless the court, for reasons to be recorded in writing, otherwise directs. **31.** **Rectification of register.—(1) The Controller may, on the application in the prescribed manner** of any person aggrieved by the non-insertion in or omission from the register of designs of any entry, or by any entry made in such register without sufficient cause, or by any entry wrongly remaining on such register, or by an error or defect in any entry in such register, make such order for making, expunging or varying such entry as he thinks fit and rectify the register accordingly. (2) The Controller may, in any proceeding under this section, decide any question that may be necessary or expedient to decide in connection with the rectification of a register. (3) An appeal shall lie to the High Court from any order of the Controller under this section and the Controller may refer any application under this section to the High Court for decision, and the High Court shall dispose of any application so referred. (4) Any order of the Court rectifying a register shall direct that notice of the rectification be served on the Controller in the prescribed manner who shall upon the receipt of such notice rectify the register accordingly. (5) Nothing in this section shall be deemed to empower the Controller to make any such order cancelling the registration of a design as is provided for in section 19. CHAPTER VII POWERS AND DUTIES OF CONTROLLER **32. Powers of Controller in proceedings under Act.—Subject to any rules made in this behalf, the** Controller in any proceedings before him under this Act shall have the powers of a civil court for the purpose of receiving evidence, administering oaths, enforcing the attendance of witnesses, compelling the discovery and production of documents, issuing commissions for the examining of witnesses and awarding costs and such award shall be executable in any court having jurisdiction as if it were a decree of that court. **33. Exercise of discretionary power by Controller.—Where any discretionary power is by or under** this Act given to Controller, he shall not exercise that power adversely to the applicant for registration of a design without (if so required within the prescribed time by the applicant) giving the applicant an opportunity of being heard. **34.** **Power of Controller to take directions of the Central Government.—The Controller may, in** any case of doubt or difficulty arising in the administration of any of the provisions of this Act, apply to the Central Government for directions in the matter. ----- **35.** **Refusal to register a design in certain cases.—(1) The Controller may refuse to register a design** of which the use would, in his opinion, be contrary to public order or morality. (2) An appeal shall lie to the High Court from an order of the Controller under this section. **36. Appeals to the High Court.—(1) Where an appeal is declared by this Act to lie from the** Controller to the High Court, the appeal shall be made within three months of the date of the order passed by the Controller. (2) In calculating the said period of three months, the time (if any) occupied in granting a copy of the order appealed against shall be excluded. (3) The High Court may, if it thinks fit, obtain the assistance of an expert in deciding such appeals, and the decision of the High Court shall be final. (4) The High Court my make rules consistent with this Act as to the conduct and procedure of all proceedings under this Act before it. CHAPTER VIII EVIDENCE, ETC. **37. Evidence before the Controller.—Subject to any rules made under section 44, in any proceeding** under this Act before the Controller, the evidence shall be given by affidavit in the absence of directions by the Controller to the contrary; but in any case in which the Controller thinks it right so to do he may take evidence _viva voce in lieu of or in addition to evidence by affidavit or may allow any party to be_ cross-examined on the contents of his affidavit. **38. Certificate of Controller to be evidence.—A certificate purporting to be under the hand of the** Controller as to any entry, matter or thing which he is authorized by this Act, or any rules made thereunder to make or do, shall be _prima facie evidence of the entry having been made, and of the_ contents thereof, and of the matter or thing having been done or left undone. **39. Evidence of documents in patent office.—Printed or written copies or extracts, purporting to be** certified by Controller and sealed with the seal of the patent office, of documents in the patent office, and of or from registers and other books kept there, shall be admitted in evidence in all courts in India, and in all proceedings, without further proof or production of the originals: Provided that a court may, if it has reason to doubt the accuracy or authenticity of the copies tendered in evidence, require the production of the originals or such further proof as it considers necessary. **40. Applications and notices by post.—Any application, notice or other document authorized or** required to be left, made or given at the patent office or to the Controller, or to any other person under this Act, may be sent by post. **41. Declaration by infant, lunatic, etc.—(1) If any person, is by reason of infancy, lunacy or other** disability, incapable of making any statement or doing anything required or permitted by or under this Act, the lawful guardian, committee or manager (if any) of the person subject to the disability, or, if there be none, any person appointed by any court possessing jurisdiction in respect of his property, may make such statement or a statement as nearly corresponding thereto as circumstances permit, and do such thing in the name and on behalf of the person subject to the disability. (2) An appointment may be made by the court for the purposes of this section upon the petition of any person acting on behalf of the person subject to the disability or of any other person interested in the making of the statement or the doing of the thing. **42. Avoidance of certain restrictive conditions.—(1) It shall not be lawful to insert—** (i) in any contract for or in relation to the sale or lease of an article in respect of which a design is registered; or (ii) in a licence to manufacture or use an article in respect of which a design is registered; or (iii) in a licence to package the article in respect of which a design is registered, ----- condition the effect of which may be— (a) to require the purchaser, lessee, or licensee to acquire from the vendor, lessor, or licensor or his nominees, or to prohibit him from acquiring or to restrict in any manner or to any extent his right to acquire from any person or to prohibit him from acquiring except from the vendor, lessor, or licensor or his nominees any article other than the article in respect of which a design is registered; or (b) to prohibit the purchaser, lessee or licensee from using or to restrict in any manner or to any extent the right of the purchaser, lessee or licensee, to use an article other than the article in respect of which a design is registered which is not supplied by the vendor, lessor or licensor or his nominee, and any such condition shall be void. (2) A condition of the nature referred to in clause (a) or clause (b) of sub-section (1) shall not cease to be a condition falling within that sub-section merely by reason of the fact that the agreement containing it has been entered into separately, whether before or after the contract relating to the sale, lease or licence of the article in respect of which a design is registered. (3) In proceeding against any person for any act in contravention of section 22, it shall be a defence to prove that at the time of such contravention there was in force a contract relating to the registered design and containing a condition declared unlawful by this section: Provided that this sub-section shall not apply if the plaintiff is not a party to the contract and proves to the satisfaction of the court that the restrictive condition was inserted in the contract without his knowledge and consent, express or implied. (4) Nothing in this section shall— (a) affect a condition in a contract by which a person is prohibited from selling goods other than those of particular person; (b) validate a contract which, but for this section, would be invalid; (c) affect a condition in a contract for the lease of, or licence to use, an article in respect of which a design is registered, by which the lessor or licensor reserves to himself or his nominee the right to supply such new parts of the article, in respect of which a design is registered, as may be required or to put or keep it in repair. (5) The provision of this section shall also apply to contracts made before the commencement of this Act if, and in so far as, any restrictive conditions declared unlawful by this section continue in force after the expiration of one year from such commencement. CHAPTER IX AGENCY **43. Agency.—(1) All applications and communications to the Controller under this Act may be** signed by, and all attendances upon the Controller may be made by or through a legal practitioner or by or through an agent whose name and address had been entered in the register of patent agents maintained under section 125 of the Patents Act, 1970 (39 of 1970). (2) The Controller may, if he sees fit, require— (a) any such agent to be resident in India; (b) any person not residing in India to employ an agent residing in India; (c) the personal signature or presence of any applicant or other person. CHAPTER X POWERS, ETC., OF CENTRAL GOVERNMENT **44. Reciprocal arrangement with the United Kingdom and other convention countries or group** **of countries of inter-governmental organisations.—(1) Any person who has applied for protection for** any design in the United Kingdom or any of other convention countries or group of countries or countries which are members of inter-governmental organisations, or his legal representative or assignee shall, either alone or jointly with any other person, be entitled to claim that the registration of the said design ----- application in the United Kingdom or any of such other convention countries or group of countries or countries which are members of inter-governmental organisations, as the case may be: Provided that— (a) the application is made within six months from the application for protection in the United Kingdom or any such other convention countries or group of countries or countries which are members of inter-governmental organisations, as the case may be; and (b) nothing in this section shall entitle the proprietor of the design to recover damages for piracy of design happening prior to the actual date on which the design is registered in India. (2) The registration of a design shall not be invalidated by reason only of the exhibition or use of or the publication of a description or representation of the design in India during the period specified in this section as that within which the application may be made. (3) The application for registration of a design under this section has been made in the same manner as an ordinary application under this Act. (4) Where it is made to appear to the Central Government that the legislature of the United Kingdom or any such other convention country or a country which is member of any group of countries or intergovernmental organisation as may be notified by the Central Government in this behalf has made satisfactory provision for the protection of designs registered in India, the Central Government may, by notification in the Official Gazette, direct that the provisions of this section, with such variations or additions, if any, as may be set out in such notification, shall apply for the protection of designs registered in the United Kingdom or that other convention country or such country which is member of any group of countries or inter-governmental organisation, as the case may be. _Explanation 1.—For the purposes of this section, the expression “convention countries”, “group of_ countries” or “inter-governmental organisation” means, respectively, such countries, group of countries or inter-governmental organisation to which the Paris Convention for Protection of Industrial Property, 1883 as revised at Stockholm in 1967 and as amended in 1979 or the Final Act, embodying the results of the Uruguay Round of Multilateral Trade Negotiations, provided for the establishment of World Trade Organisation applies. _Explanation 2.—Where more than one application for protection referred to in sub-section (1) has_ been made for similar protections in the United Kingdom or one or more convention countries, group of countries or countries which are members of inter-governmental organisations, the period of six months referred to in clause (a) of that sub-section shall be reckoned from the date of which the earlier or the earliest application, as the case may be, of such applications has been made. **45. Report of the Controller to be placed before Parliament.—The Central Government shall** cause to be placed before both Houses of Parliament once a year a report respecting the execution of this Act by or under the Controller. **46. Protection of security of India.—Notwithstanding anything contained in this Act, the Controller** shall— (a) not disclose any information relating to the registration of a design or any application relating to the registration of a design under this Act, which he considers prejudicial to the interest of the security of India; and (b) take any action regarding the cancellation of registration of such designs registered under this Act which the Central Government may, by notification in the Official Gazette, specify in the interest of the security of India. _Explanation.—For the purposes of this section, the expression “security of India” means any action_ necessary for the security of India which relates to the application of any design registered under this Act to any article used for war or applied directly or indirectly for the purposes of military establishment or for the purposes of war or other emergency in international relations. **47. Power of Central Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules for carrying out the purposes of this Act. ----- (2) In particular, and without prejudice to the generally of the forgoing power, such rules may provide for all or any of the following matters, namely:— (a) the form of application for registration of design, the manner of filing it at the patent office and the fee which shall accompany it, under sub-section (2) of section 5; (b) the time within which the registration is to be effected under sub-section (5) of section 5; (c) the classification of articles for registration under sub-section (1) of section 6; (d) the particulars of design to be published and the manner of their publication under section 7; (e) the manner of making claim under sub-section (1) of section 8; (f) the manner of making applications to the Controller under sub-section (5) of section 8; (g) the additional matters required to be entered in the register of designs and the safeguards to be made in maintaining such register in computer floppies or diskettes under sub-section (1) of section 10; (h) the manner of making application and fee to be paid for extension of the period of copyright under and the fee payable thereto, sub-section (2) of section 11; (i) the manner of making application for restoration of design and the fee to be paid with it under sub-section (1) of section 12; (j) the manner of verification of statement contained in an application under sub-section (2) of section 12; (k) the additional fee to be paid for restoration of the registration of design under sub-section (1) of section 13; (l) the provisions subject to which the right of the registered proprietor shall be under sub-section (1) of section 14; (m) the number of exact representation or specimen of the design to be furnished to the Controller under clause (a) of sub-section (1) of section 15; (n) the mark, words or figures with which the article is to be marked denoting that the design is registered under clause (b) of sub-section (1) of section 15; (o) the rules to dispense with or modify as regards any class or description of articles any of the requirements of section 15 as to marking under sub-section (2) of that section; (p) the fee to be paid for and the manner of inspection under sub-section (1) of section 17; (q) the fee to be paid to obtain a certified copy of any design under sub-section (2) of section 17; (r) the fee on payment of which the Controller shall inform under section 18; (s) the form for giving notice to the controller under clause (a) of the proviso to section 21; (t) the fee to be paid in respect of the registration of designs and application therefor, and in respect of other matters relating to designs under sub-section (1) of section 24; (u) the fee to be paid for giving certified copy of any entry in the register under section 26; (v) the fee to be accompanied with the request in writing for correcting any clerical error under section 29; (w) the form in which an application for registration as proprietor shall be made and the manner in which the Controller shall cause an entry to be made in the register of the assignment, transmission or other instruments effecting the title under sub-section (1) of section 30; (x) the form in which an application for title shall be made and the manner in which the Controller shall cause notice of the interest to be entered in the register of designs with particulars of the instrument, if any, creating such interest under sub-section (2) of section 30; (y) the manner of filing an application for registration and for making application for extension of time as referred to in sub-section (3) of section 30; ----- (z) the manner of making application to the Controller for rectification of register under sub-section (1) of section 31; (za) the manner in which the notice of rectification shall be served on the Controller under sub-section (4) of section 31; (zb) the rules regulating the proceedings before the Controller under section 32; (zc) the time which shall be granted to the applicants for being heard by the Controller under section 33; (zd) the fee to be accompanied with an appeal under sub-section (1) of section 36; (ze) any other matter which is required to be, or may be, prescribed. (3) The power to make rules under this section shall be subject to the conditions of the rules being made after previous publication. (4) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Act. CHAPTER XI REPEAL AND SAVING **48. Repeal and savings.—(1) The Designs Act, 1911 (2 of 1911) is hereby repealed.** (2) Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897) with respect to repeals, any notification, rule, order, requirement, registration, certificate, notice, decision, determination, direction, approval, authorisation, consent, application, request or thing made, issued, given or done under the Designs Act, 1911 (2 of 1911), shall, in force at the commencement of this Act, continue to be in force and have effect as if made, issued, given or done under the corresponding provisions of this Act. (3) The provisions of this Act shall apply to all applications for registration of designs pending at the commencement of this Act and to any proceedings consequent thereon and to any registration granted in pursuance thereof. (4) Notwithstanding anything contained in this Act, any proceeding pending in any court at the commencement of this Act may be continued in that court as if this Act has not been passed. (5) Notwithstanding anything contained in sub-section (2), the date of expiration of the copyright in the design registered before the commencement of this Act shall, subject to the provisions of this Act, be the date immediately after the period of five years for which it was registered or the date immediately after the period of five years for which the extension of the period of copyright for a second period from the expiration of the original period has been made. _____________ -----
9-Jun-2000
21
The Information Technology Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/1999/1/A2000-21%20%281%29.pdf
central
# THE INFORMATION TECHNOLOGY ACT, 2000 ––––––––– ARRANGEMENT OF SECTIONS ––––––––– CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, commencement and application. 2. Definitions. CHAPTER II DIGITAL SIGNATURE AND ELECTRONIC SIGNATURE 3. Authentication of electronic records. 3A. Electronic signature. CHAPTER III ELECTRONIC GOVERNANCE 4. Legal recognition of electronic records. 5. Legal recognition of electronic signatures. 6. Use of electronic records and electronic signatures in Government and its agencies. 6A. Delivery of services by service provider. 7. Retention of electronic records. 7A. Audit of documents, etc., maintained in electronic form. 8. Publication of rule, regulation, etc., in Electronic Gazette. 9. Sections 6, 7 and 8 not to confer right to insist document should be accepted in electronic form. 10. Power to make rules by Central Government in respect of electronic signature. 10A. Validity of contracts formed through electronic means. CHAPTER IV ATTRIBUTION, ACKNOWLEDGEMENT AND DESPATCH OF ELECTRONIC RECORDS 11. Attribution of electronic records. 12. Acknowledgment of receipt. 13. Time and place of despatch and receipt of electronic record. CHAPTER V SECURE ELECTRONIC RECORDS AND SECURE ELECTRONIC SIGNATURE 14. Secure electronic record. 15. Secure electronic signature. 16. Security procedure and practices. CHAPTER VI REGULATION OF CERTIFYING AUTHORITIES 17. Appointment of Controller and other officers. 18. Functions of Controller. 19. Recognition of foreign Certifying Authorities. 20. [Omitted.] 21. Licence to issue electronic signature Certificates. 22. Application for licence. 23. Renewal of licence. 24. Procedure for grant or rejection of licence. 25 Suspension of licence ----- SECTIONS 27. Power to delegate. 28. Power to investigate contraventions. 29. Access to computers and data. 30. Certifying Authority to follow certain procedures. 31. Certifying Authority to ensure compliance of the Act, etc. 32. Display of licence. 33. Surrender of licence. 34. Disclosure. CHAPTER VII ELECTRONIC SIGNATURE CERTIFICATES 35. Certifying authority to issue electronic signature Certificate. 36. Representations upon issuance of Digital signature Certificate. 37. Suspension of Digital Signature Certificate. 38. Revocation of Digital Signature Certificate. 39. Notice of suspension or revocation. CHAPTER VIII DUTIES OF SUBSCRIBERS 40. Generating key pair. 40A. Duties of subscriber of Electronic Signature Certificate. 41. Acceptance of Digital Signature Certificate. 42. Control of private key. CHAPTER IX PENALTIES AND ADJUDICATION 43. Penalty and compensation for damage to computer, computer system, etc. 43A. Compensation for failure to protect data. 44. Penalty for failure to furnish information, return, etc. 45. Residuary penalty. 46. Power to adjudicate. 47. Factors to be taken into account by the adjudicating officer. CHAPTER X APPELLATE TRIBUNAL 48. Establishment of Appellate Tribunal. 49. [Omitted.] 50. [Omitted.] 51. [Omitted.] 52. [Omitted.] 52A. [Omitted.] 52B. [Omitted.] 52C. [Omitted.] 52D. Decision by majority. 53. [Omitted.] 54. [Omitted.] 55. Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings. 56. [Omitted.] 57. Appeal to Appellate Tribunal. 58. Procedure and powers of the Appellate Tribunal. 59. Right to legal representation. 60. Limitation. 61. Civil court not to have jurisdiction. 62. Appeal to High Court. ----- SECTIONS 64. Recovery of penalty. CHAPTER XI OFFENCES 65. Tampering with computer source documents. 66. Computer related offences. 66A. [Omitted.]. 66B. Punishment for dishonestly receiving stolen computer resource or communication device. 66C. Punishment for identity theft. 66D. Punishment for cheating by personation by using computer resource. 66E. Punishment for violation of privacy. 66F. Punishment for cyber terrorism. 67. Punishment for publishing or transmitting obscene material in electronic form. 67A. Punishment for publishing or transmitting of material containing sexually explicit act, etc., in electronic form. 67B. Punishment for publishing or transmitting of material depicting children in sexually explicit act, etc., in electronic form. 67C. Preservation and retention of information by intermediaries. 68. Power of Controller to give directions. 69. Power to issue directions for interception or monitoring or decryption of any information through any computer resource. 69A. Power to issue directions for blocking for public access of any information through any computer resource. 69B. Power to authorise to monitor and collect traffic data or information through any computer resource for cyber security. 70. Protected system. 70A. National nodal agency. 70B. Indian Computer Emergency Response Team to serve as national agency for incident response. 71. Penalty for misrepresentation. 72. Penalty for Breach of confidentiality and privacy. 72A. Penalty for disclosure of information in breach of lawful contract. 73. Penalty for publishing electronic signature Certificate false in certain particulars. 74. Publication for fraudulent purpose. 75. Act to apply for offence or contravention committed outside India. 76. Confiscation. 77. Compensation, penalties or confiscation not to interfere with other punishment. 77A. Compounding of offences. 77B. Offences with three years imprisonment to be bailable. 78. Power to investigate offences. CHAPTER XII INTERMEDIARIES NOT TO BE LIABLE IN CERTAIN CASES 79. Exemption from liability of intermediary in certain cases. CHAPTER XIIA EXAMINER OF ELECTRONIC EVIDENCE 79A. Central Government to notify Examiner of Electronic Evidence. CHAPTER XIII MISCELLANEOUS 80. Power of police officer and other officers to enter, search, etc. 81. Act to have overriding effect. 81A. Application of the Act to electronic cheque and truncated cheque. 82 Chairperson Members officers and employees to be public servants ----- SECTIONS 84. Protection of action taken in good faith. 84A. Modes or methods for encryption. 84B. Punishment for abetment of offences. 84C. Punishment for attempt to commit offences. 85. Offences by companies. 86. Removal of difficulties. 87. Power of Central Government to make rules. 88. Constitution of Advisory Committee. 89. Power of Controller to make regulations. 90. Power of State Government to make rules. 91. [Omitted]. 92. [Omitted]. 93. [Omitted]. 94. [Omitted]. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. [Omitted.] THE FOURTH SCHEDULE. [Omitted.] ----- # THE INFORMATION TECHNOLOGY ACT, 2000 ACT NO. 21 OF 2000 [9th June, 2000.] # An Act to provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as “electronic commerce”, which involve the use of alternatives to paper-based methods of communication and storage of information, to facilitate electronic filing of documents with the Government agencies and further to amend the Indian Penal Code, the Indian Evidence Act, 1872, the Banker’s Books Evidence Act, 1891 and the Reserve Bank of India Act, 1934 and for matters connected therewith or incidental thereto; WHEREAS the General Assembly of the United Nations by resolution A/RES/51/162, dated the 30th January, 1997 has adopted the Model Law on Electronic Commerce adopted by the United Nations Commission on International Trade Law; AND WHEREAS the said resolution recommends _inter alia, that all States give favourable_ consideration to the said Model Law when they enact or revise their laws, in view of the need for uniformity of the law applicable to alternatives to paper-based methods of communication and storage of information; AND WHEREAS it is considered necessary to give effect to the said resolution and to promote efficient delivery of Government services by means of reliable electronic records. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:– CHAPTER 1 PRELIMINARY **1. Short title, extent, commencement and application.–(1) This Act may be called the Information** Technology Act, 2000. (2) It shall extend to the whole of India and, save as otherwise provided in this Act, it applies also to any offence or contravention thereunder committed outside India by any person. (3) It shall come into force on such date[1] as the Central Government may, by notification, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. 2[(4) Nothing in this Act shall apply to documents or transactions specified in the First Schedule: Provided that the Central Government may, by notification in the Official Gazette, amend the First Schedule by way of addition or deletion of entries thereto. (5) Every notification issued under sub-section (4) shall be laid before each House of Parliament.] **2. Definitions.–(1) In this Act, unless the context otherwise requires,–** (a) “access” with its grammatical variations and cognate expressions means gaining entry into, instructing or communicating with the logical, arithmetical, or memory function resources of a computer, computer system or computer network; (b) “addressee” means a person who is intended by the originator to receive the electronic record but does not include any intermediary; (c) “adjudicating officer” means an adjudicating officer appointed under sub-section (1) of section 46; 1. 17th October, 2000, _vide notification No. G.S.R. 788 (E), dated 17th October, 2000,_ _see_ Gazette of India, Extraordinary, ----- (d) “affixing [1][electronic signature]” with its grammatical variations and cognate expressions means adoption of any methodology or procedure by a person for the purpose of authenticating an electronic record by means of [1][electronic signature]; 2[(da) “Appellate Tribunal” means the Appellate Tribunal referred to in sub-section (1) of section 48;] (e) “appropriate Government” means as respects any matter,– (i) enumerated in List II of the Seventh Schedule to the Constitution; (ii) relating to any State law enacted under List III of the Seventh Schedule to the Constitution, the State Government and in any other case, the Central Government; (f) “asymmetric crypto system” means a system of a secure key pair consisting of a private key for creating a digital signature and a public key to verify the digital signature; (g) “Certifying Authority” means a person who has been granted a licence to issue a [1][electronic signature] Certificate under section 24; (h) “certification practice statement” means a statement issued by a Certifying Authority to specify the practices that the Certifying Authority employs in issuing [1][electronic signature] Certificates; 3[(ha) “communication device” means cell phones, personal digital assistance or combination of both or any other device used to communicate, send or transmit any text, video, audio or image;] (i) “computer” means any electronic, magnetic, optical or other high-speed data processing device or system which performs logical, arithmetic, and memory functions by manipulations of electronic, magnetic or optical impulses, and includes all input, output, processing, storage, computer software or communication facilities which are connected or related to the computer in a computer system or computer network; 4[(j) “computer network” means the inter-connection of one or more computers or computer systems or communication device through– (i) the use of satellite, microwave, terrestrial line, wire, wireless or other communication media; and (ii) terminals or a complex consisting of two or more interconnected computers or communication device whether or not the inter-connection is continuously maintained;] (k) “computer resource” means computer, computer system, computer network, data, computer data base or software; (l) “computer system” means a device or collection of devices, including input and output support devices and excluding calculators which are not programmable and capable of being used in conjunction with external files, which contain computer programmes, electronic instructions, input data and output data, that performs logic, arithmetic, data storage and retrieval, communication control and other functions; (m) “Controller” means the Controller of Certifying Authorities appointed under sub-section (1) of section 17; 5* - - - 3[(na) “cyber cafe” means any facility from where access to the internet is offered by any person in the ordinary course of business to the members of the public; 1. Subs. by Act 10 of 2009, s. 2, for “digital signature” (w.e.f. 27-10-2009). 2. Ins. by 7 of 2017, s. 169 (w.e.f. 26-5-2017). 3. Ins. by 10 of 2009, s. 4 (w.e.f. 27-10-2009). ----- (nb) “cyber security means protecting information, equipment, devices, computer, computer resource, communication device and information stored therein from unauthorised access, use, disclosure, disruption, modification or destruction;] (o) “data” means a representation of information, knowledge, facts, concepts or instructions which are being prepared or have been prepared in a formalised manner, and is intended to be processed, is being processed or has been processed in a computer system or computer network, and may be in any form (including computer printouts magnetic or optical storage media, punched cards, punched tapes) or stored internally in the memory of the computer; (p) “digital signature” means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3; (q) “Digital Signature Certificate” means a Digital Signature Certificate issued under sub-section (4) of section 35; (r) “electronic form” with reference to information, means any information generated, sent, received or stored in media, magnetic, optical, computer memory, micro film, computer generated micro fiche or similar device; (s) “Electronic Gazette” means the Official Gazette published in the electronic form; (t) “electronic record” means data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or computer generated micro fiche; 1[(ta) “electronic signature” means authentication of any electronic record by a subscriber by means of the electronic technique specified in the Second Schedule and includes digital signature; (tb) “Electronic Signature Certificate” means an Electronic Signature Certificate issued under section 35 and includes Digital Signature Certificate;] (u) “function”, in relation to a computer, includes logic, control, arithmetical process, deletion, storage and retrieval and communication or telecommunication from or within a computer; 1[(ua) Indian Computer Emergency Response Team” means an agency established under sub section (1) of Section 70B;] (v) “information” includes [2][data, message, text,] images, sound, voice, codes, computer programmes, software and data bases or micro film or computer generated micro fiche; 3[(w) “intermediary”, with respect to any particular electronic records, means any person who on behalf of another person receives, stores or transmits that record or provides any service with respect to that record and includes telecom service providers, network service providers, internet service providers, web-hosting service providers, search engines, online payment sites, online-auction sites, online-market places and cyber cafes;] (x) “key pair”, in an asymmetric crypto system, means a private key and its mathematically related public key, which are so related that the public key can verify a digital signature created by the private key; (y) “law” includes any Act of Parliament or of a State Legislature, Ordinances promulgated by the President or a Governor, as the case may be, Regulations made by the President under article 240, Bills enacted as President's Act under sub-clause (a) of clause (1) of article 357 of the Constitution and includes rules, regulations, bye-laws and orders issued or made thereunder; (z) “licence” means a licence granted to a Certifying Authority under section 24; (za) “originator” means a person who sends, generates, stores or transmits any electronic message or causes any electronic message to be sent, generated, stored or transmitted to any other person but does not include an intermediary; (zb) “prescribed” means prescribed by rules made under this Act; (zc) “private key” means the key of a key pair used to create a digital signature; 1. Ins. by Act 10 of 2009, s. 4 (w.e.f. 27-10-2009). ----- (zd) “public key” means the key of a key pair used to verify a digital signature and listed in the Digital Signature Certificate; (ze) “secure system” means computer hardware, software, and procedure that– (a) are reasonably secure from unauthorised access and misuse; (b) provide a reasonable level of reliability and correct operation; (c) are reasonably suited to performing the intended functions; and (d) adhere to generally accepted security procedures; (zf) “security procedure” means the security procedure prescribed under section 16 by the Central Government; (zg) “subscriber” means a person in whose name the [1][electronic signature] Certificate is issued; (zh) “verify”, in relation to a digital signature, electronic record or public key, with its grammatical variations and cognate expressions, means to determine whether– (a) the initial electronic record was affixed with the digital signature by the use of private key corresponding to the public key of the subscriber; (b) the initial electronic record is retained intact or has been altered since such electronic record was so affixed with the digital signature. (2) Any reference in this Act to any enactment or any provision thereof shall, in relation to an area in which such enactment or such provision is not in force, be construed as a reference to the corresponding law or the relevant provision of the corresponding law, if any, in force in that area. CHAPTER II 2[DIGITAL SIGNATURE AND ELECTRONIC SIGNATURE] **3. Authentication of electronic records.–(1) Subject to the provisions of this section any subscriber** may authenticate an electronic record by affixing his digital signature. (2) The authentication of the electronic record shall be effected by the use of asymmetric crypto system and hash function which envelop and transform the initial electronic record into another electronic record. _Explanation.–For the purposes of this sub-section, “hash function” means an algorithm mapping or_ translation of one sequence of bits into another, generally smaller, set known as “hash result” such that an electronic record yields the same hash result every time the algorithm is executed with the same electronic record as its input making it computationally infeasible– (a) to derive or reconstruct the original electronic record from the hash result produced by the algorithm; (b) that two electronic records can produce the same hash result using the algorithm. (3) Any person by the use of a public key of the subscriber can verify the electronic record. (4) The private key and the public key are unique to the subscriber and constitute a functioning key pair. 3[3A. Electronic signature.–(1) Notwithstanding anything contained in section 3, but subject to the provisions of sub-section (2), a subscriber may authenticate any electronic record by such electronic signature or electronic authentication technique which– (a) is considered reliable; and (b) may be specified in the Second Schedule. (2) For the purposes of this section any electronic signature or electronic authentication technique shall be considered reliable if– 1. Subs. by Act 10 of 2009, s. 2, for “digital signature” (w.e.f. 27-10-2009). ----- (a) the signature creation data or the authentication data are, within the context in which they are used, linked to the signatory or, as the case may be, the authenticator and to no other person; (b) the signature creation data or the authentication data were, at the time of signing, under the control of the signatory or, as the case may be, the authenticator and of no other person; (c) any alteration to the electronic signature made after affixing such signature is detectable; (d) any alteration to the information made after its authentication by electronic signature is detectable; and (e) it fulfils such other conditions which may be prescribed. (3) The Central Government may prescribe the procedure for the purpose of ascertaining whether electronic signature is that of the person by whom it is purported to have been affixed or authenticated. (4) The Central Government may, by notification in the Official Gazette, add to or omit any electronic signature or electronic authentication technique and the procedure for affixing such signature from the Second Schedule: Provided that no electronic signature or authentication technique shall be specified in the Second Schedule unless such signature or technique is reliable. (5) Every notification issued under sub-section (4) shall be laid before each House of Parliament.] CHAPTER III ELECTRONIC GOVERNANCE **4. Legal recognition of electronic records.–Where any law provides that information or any other** matter shall be in writing or in the typewritten or printed form, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied if such information or matter is– (a) rendered or made available in an electronic form; and (b) accessible so as to be usable for a subsequent reference. **5. Legal recognition of** [1][electronic signatures].–Where any law provides that information or any other matter shall be authenticated by affixing the signature or any document shall be signed or bear the signature of any person, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied, if such information or matter is authenticated by means of [1][electronic signature] affixed in such manner as may be prescribed by the Central Government. _Explanation.–For the purposes of this section, “signed”, with its grammatical variations and cognate_ expressions, shall, with reference to a person, mean affixing of his hand written signature or any mark on any document and the expression “signature” shall be construed accordingly. **6. Use of electronic records and** [1][electronic signatures] in Government and its agencies.–(1) Where any law provides for– (a) the filing of any form, application or any other document with any office, authority, body or agency owned or controlled by the appropriate Government in a particular manner; (b) the issue or grant of any licence, permit, sanction or approval by whatever name called in a particular manner; (c) the receipt or payment of money in a particular manner, then, notwithstanding anything contained in any other law for the time being in force, such requirement shall be deemed to have been satisfied if such filing, issue, grant, receipt or payment, as the case may be, is effected by means of such electronic form as may be prescribed by the appropriate Government. (2) The appropriate Government may, for the purposes of sub-section (1), by rules, prescribe– (a) the manner and format in which such electronic records shall be filed, created or issued; ----- (b) the manner or method of payment of any fee or charges for filing, creation or issue any electronic record under clause (a). 1[6A. Delivery of services by service provider.–(1) The appropriate Government may, for the purposes of this Chapter and for efficient delivery of services to the public through electronic means authorise, by order, any service provider to set up, maintain and upgrade the computerised facilities and perform such other services as it may specify, by notification in the Official Gazette. _Explanation.–For the purposes of this section, service provider so authorised includes any individual,_ private agency, private company, partnership firm, sole proprietor firm or any such other body or agency which has been granted permission by the appropriate Government to offer services through electronic means in accordance with the policy governing such service sector. (2) The appropriate Government may also authorise any service provider authorised under sub section (1) to collect, retain and appropriate such service charges, as may be prescribed by the appropriate Government for the purpose of providing such services, from the person availing such service. (3) Subject to the provisions of sub-section (2), the appropriate Government may authorise the service providers to collect, retain and appropriate service charges under this section notwithstanding the fact that there is no express provision under the Act, rule, regulation or notification under which the service is provided to collect, retain and appropriate e-service charges by the service providers. (4) The appropriate Government shall, by notification in the Official Gazette, specify the scale of service charges which may be charged and collected by the service providers under this section: Provided that the appropriate Government may specify different scale of service charges for different types of services.] **7. Retention of electronic records.–(1) Where any law provides that documents, records or** information shall be retained for any specific period, then, that requirement shall be deemed to have been satisfied if such documents, records or information are retained in the electronic form, if– (a) the information contained therein remains accessible so as to be usable for a subsequent reference; (b) the electronic record is retained in the format in which it was originally generated, sent or received or in a format which can be demonstrated to represent accurately the information originally generated, sent or received; (c) the details which will facilitate the identification of the origin, destination, date and time of despatch or receipt of such electronic record are available in the electronic record: Provided that this clause does not apply to any information which is automatically generated solely for the purpose of enabling an electronic record to be despatched or received. (2) Nothing in this section shall apply to any law that expressly provides for the retention of documents, records or information in the form of electronic records. 2[7A. Audit of documents, etc., maintained in electronic form.–Where in any law for the time being in force, there is a provision for audit of documents, records or information, that provision shall also be applicable for audit of documents, records or information processed and maintained in the electronic form.] **8. Publication of rule, regulation, etc., in Electronic Gazette.–Where any law provides that any** rule, regulation, order, bye-law, notification or any other matter shall be published in the Official Gazette, then, such requirement shall be deemed to have been satisfied if such rule, regulation, order, bye-law, notification or any other matter is published in the Official Gazette or Electronic Gazette: Provided that where any rule, regulation, order, by-law, notification or any other matter is published in the Official Gazette or Electronic Gazette, the date of publication shall be deemed to be the date of the Gazette which was first published in any form. **9. Sections 6, 7 and 8 not to confer right to insist document should be accepted in electronic** **form.–Nothing contained in sections 6, 7 and 8 shall confer a right upon any person to insist that any** ----- Ministry or Department of the Central Government or the State Government or any authority or body established by or under any law or controlled or funded by the Central or State Government should accept, issue, create, retain and preserve any document in the form of electronic records or effect any monetary transaction in the electronic form. **10. Power to make rules by Central Government in respect of** [1][electronic signature].–The Central Government may, for the purposes of this Act, by rules, prescribe– (a) the type of [1][electronic signature]; (b) the manner and format in which the [1][electronic signature] shall be affixed; (c) the manner or procedure which facilitates identification of the person affixing the [1][electronic signature]; (d) control processes and procedures to ensure adequate integrity, security and confidentiality of electronic records or payments; and (e) any other matter which is necessary to give legal effect to [1][electronic signatures]. 2[10A. Validity of contracts formed through electronic means.–Where in a contract formation, the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, are expressed in electronic form or by means of an electronic records, such contract shall not be deemed to be unenforceable solely on the ground that such electronic form or means was used for that purpose.] CHAPTER IV ATTRIBUTION, ACKNOWLEDGMENT AND DESPATCH OF ELECTRONIC RECORDS **11. Attribution of electronic records.–An electronic record shall be attributed to the originator–** (a) if it was sent by the originator himself; (b) by a person who had the authority to act on behalf of the originator in respect of that electronic record; or (c) by an information system programmed by or on behalf of the originator to operate automatically. **12. Acknowledgment of receipt.–(1) Where the originator has not** 3[stipulated] that the acknowledgment of receipt of electronic record be given in a particular form or by a particular method, an acknowledgment may be given by– (a) any communication by the addressee, automated or otherwise; or (b) any conduct of the addressee, sufficient to indicate to the originator that the electronic record has been received. (2) Where the originator has stipulated that the electronic record shall be binding only on receipt of an acknowledgment of such electronic record by him, then unless acknowledgment has been so received, the electronic record shall he deemed to have been never sent by the originator. (3) Where the originator has not stipulated that the electronic record shall be binding only on receipt of such acknowledgment, and the acknowledgment has not been received by the originator within the time specified or agreed or, if no time has been specified or agreed to within a reasonable time, then the originator may give notice to the addressee stating that no acknowledgment has been received by him and specifying a reasonable time by which the acknowledgement must be received by him and if no acknowledgment is received within the aforesaid time limit he may after giving notice to the addressee, treat the electronic record as though it has never been sent. **13. Time and place of despatch and receipt of electronic record.–(1) Save as otherwise agreed to** between the originator and the addressee, the despatch of an electronic record occurs when it enters a computer resource outside the control of the originator. 1. Subs. by Act 10 of 2009, s. 2, for “digital signature” (w.e.f. 27-10-2009). ----- (2) Save as otherwise agreed between the originator and the addressee, the time of receipt of an electronic record shall be determined as follows, namely:– (a) if the addressee has designated a computer resource for the purpose of receiving electronic records,– (i) receipt occurs at the time when the electronic record enters the designated computer resource; or (ii) if the electronic record is sent to a computer resource of the addressee that is not the designated computer resource, receipt occurs at the time when the electronic record is retrieved by the addressee; (b) if the addressee has not designated a computer resource along with specified timings, if any, receipt occurs when the electronic record enters the computer resource of the addressee. (3) Save as otherwise agreed to between the originator and the addressee, an electronic record is deemed to be despatched at the place where the originator has his place of business, and is deemed to be received at the place where the addressee has his place of business. (4) The provisions of sub-section (2) shall apply notwithstanding that the place where the computer resource is located may be different from the place where the electronic record is deemed to have been received under sub-section (3). (5) For the purposes of this section,– (a) if the originator or the addressee has more than one place of business, the principal place of business, shall be the place of business; (b) if the originator or the addressee does not have a place of business, his usual place of residence shall be deemed to be the place of business; (c) “usual place of residence”, in relation to a body corporate, means the place where it is registered. CHAPTER V SECURE ELECTRONIC RECORDS ANS SECURE [1][ELECTRONIC SIGNATURE] **14. Secure electronic record.–Where any security procedure has been applied to an electronic record** at a specific point of time, then such record shall he deemed to be a secure electronic record from such point of time to the time of verification. 2[15. Secure electronic signature.– An electronic signature shall be deemed to be a secure electronic signature if– (i) the signature creation data, at the time of affixing signature, was under the exclusive control of signatory and no other person; and (ii) the signature creation data was stored and affixed in such exclusive manner as may be prescribed. _Explanation.–In case of digital signature, the “signature creation data” means the private key of the_ subscriber. **16. Security procedures and practices.–The Central Government may, for the purposes of sections** 14 and 15, prescribe the security procedures and practices: Provided that in prescribing such security procedures and practices, the Central Government shall have regard to the commercial circumstances, nature of transactions and such other related factors as it may consider appropriate.] CHAPTER VI REGULATION OF CERTIFYING AUTHORITIES **17. Appointment of Controller and other officers.–(1) The Central Government may, by** notification in the Official Gazette, appoint a Controller of Certifying Authorities for the purposes of this Act and may also by the same or subsequent notification appoint such number of Deputy Controllers 3[, Assistant Controllers, other officers and employees] as it deems fit. 1. Subs. by Act 10 of 2009, s. 2, for “digital signatures” (w.e.f. 27-10-2009). ----- (2) The Controller shall discharge his functions under this Act subject to the general control and directions of the Central Government. (3) The Deputy Controllers and Assistant Controllers shall perform the functions assigned to them by the Controller under the general superintendence and control of the Controller. (4) The qualifications, experience and terms and conditions of service of Controller, Deputy Controllers [1][, Assistant Controllers, other officers and employees] shall be such as may be prescribed by the Central Government. (5) The Head Office and Branch Office of the office of the Controller shall be at such places as the Central Government may specify, and these may be established at such places as the Central Government may think fit. (6) There shall be a seal of the Office of the Controller. **18. Functions of Controller.–The Controller may perform all or any of the following functions,** namely:– (a) exercising supervision over the activities of the Certifying Authorities; (b) certifying public keys of the Certifying Authorities; (c) laying down the standards to be maintained by the Certifying Authorities; (d) specifying the qualifications and experience which employees of the Certifying Authority should possess; (e) specifying the conditions subject to which the Certifying Authorities shall conduct their business; (f) specifying the contents of written, printed or visual materials and advertisements that may be distributed or used in respect of a [2][electronic signature] Certificate and the public key; (g) specifying the form and content of a [2][electronic signature] Certificate and the key; (h) specifying the form and manner in which accounts shall be maintained by the Certifying Authorities; (i) specifying the terms and conditions subject to which auditors may be appointed and the remuneration to be paid to them; (j) facilitating the establishment of any electronic system by a Certifying Authority either solely or jointly with other Certifying Authorities and regulation of such systems; (k) specifying the manner in which the Certifying Authorities shall conduct their dealings with the subscribers; (l) resolving any conflict of interests between the Certifying Authorities and the subscribers; (m) laying down the duties of the Certifying Authorities; (n) maintaining a data base containing the disclosure record of every Certifying Authority containing such particulars as may be specified by regulations, which shall be accessible to public. **19. Recognition of foreign Certifying Authorities.–(1) Subject to such conditions and restrictions as** may be specified by regulations, the Controller may with the previous approval of the Central Government, and by notification in the Official Gazette, recognise any foreign Certifying Authority as a Certifying Authority for the purposes of this Act. (2) Where any Certifying Authority is recognised under sub-section (1), the [2][electronic signature] Certificate issued by such Certifying Authority shall be valid for the purposes of this Act. (3) The Controller may, if he is satisfied that any Certifying Authority has contravened any of the conditions and restrictions subject to which it was granted recognition under sub-section (1) he may, for reasons to be recorded in writing, by notification in the Official Gazette, revoke such recognition. ----- **20. [Controller to act as repository.] Omitted by the Information Technology (Amendment) Act, 2008** (10 of 2009), s. 13 (w.e.f. 27-10-2009). **21. Licence to issue** **[1][electronic signature] Certificates.–(1) Subject to the provisions of** sub-section (2), any person may make an application, to the Controller, for a licence to issue [1][electronic signature] Certificates. (2) No licence shall be issued under sub-section (1), unless the applicant fulfills such requirements with respect to qualification, expertise, manpower, financial resources and other infrastructure facilities, which arc necessary to issue [1][electronic signature] Certificates as may be prescribed by the Central Government. (3) A licence granted under this section shall– (a) be valid for such period as may be prescribed by the Central Government; (b) not be transferable or heritable; (c) be subject to such terms and conditions as may be specified by the regulations. **22. Application for licence.–(1) Every application for issue of a licence shall be in such form as may** be prescribed by the Central Government. (2) Every application for issue of a licence shall be accompanied by– (a) a certification practice statement; (b) a statement including the procedures with respect to identification of the applicant; (c) payment of such fees, not exceeding twenty-five thousand rupees as may be prescribed by the Central Government; (d) such other documents, as may be prescribed by the Central Government. **23. Renewal of licence.–An application for renewal of a licence shall be–** (a) in such form; (b) accompanied by such fees, not exceeding five thousand rupees, as may be prescribed by the Central Government and shall be made not less than forty-five days before the date of expiry of the period of validity of the licence. **24. Procedure for grant or rejection of licence.–The Controller may, on receipt of an application** under sub-section (1) of section 21, after considering the documents accompanying the application and such other factors, as he deems fit, grant the licence or reject the application: Provided that no application shall be rejected under this section unless the applicant has been given a reasonable opportunity of presenting his case. **25. Suspension of licence.– (1) The Controller may, if he is satisfied after making such inquiry, as he** may think fit, that a Certifying Authority has– (a) made a statement in, or in relation to, the application for the issue or renewal of the licence, which is incorrect or false in material particulars; (b) failed to comply with the terms and conditions subject to which the licence was granted; 2[(c) failed to maintain the procedures and standards specified in section 30;] (d) contravened any provisions of this Act, rule, regulation or order made thereunder, revoke the licence: Provided that no licence shall be revoked unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed revocation. (2) The Controller may, if he has reasonable cause to believe that there is any ground for revoking a licence under sub-section (1), by order suspend such licence pending the completion of any enquiry ordered by him: ----- Provided that no licence shall be suspended for a period exceeding ten days unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed suspension. (3) No Certifying Authority whose licence has been suspended shall issue any [1][electronic signature] Certificate during such suspension. **26. Notice of suspension or revocation of licence.–(1) Where the licence of the Certifying Authority** is suspended or revoked, the Controller shall publish notice of such suspension or revocation, as the case may be, in the data base maintained by him. (2) Where one or more repositories are specified, the Controller shall publish notices of such suspension or revocation, as the case may be, in all such repositories: Provided that the data base containing the notice of such suspension or revocation, as the case may be, shall be made available through a web site which shall be accessible round the clock: Provided further that the Controller may, if he considers necessary, publicise the contents of data base in such electronic or other media, as he may consider appropriate. **27. Power to delegate.–The Controller may, in writing, authorise the Deputy Controller, Assistant** Controller or any officer to exercise any of the powers of the Controller under this Chapter. **28. Power to investigate contraventions.–(1) The Controller or any officer authorised by him in this** behalf shall take up for investigation any contravention of the provisions of this Act, rules or regulations made thereunder. (2) The Controller or any officer authorised by him in this behalf shall exercise the like powers which are conferred on Income-tax authorities under Chapter XIII of the Income-tax Act, 1961 (43 of 1961), and shall exercise such powers, subject to such limitations laid down under that Act. **29. Access to computers and data.–(1) Without prejudice to the provisions of sub-section (1) of** section 69, the Controller or any person authorised by him shall, if he has reasonable cause to suspect that 2[any contravention of the provisions of this Chapter] has been committed, have access to any computer system, any apparatus, data or any other material connected with such system, for the purpose of searching or causing a search to be made for obtaining any information or data contained in or available to such computer system. (2) For the purposes of sub-section (1), the Controller or any person authorised by him may, by order, direct any person in charge of, or otherwise concerned with the operation of, the computer system, data apparatus or material, to provide him with such reasonable technical and other assistance as he may consider necessary. **30. Certifying Authority to follow certain procedures.–Every Certifying Authority shall,–** (a) make use of hardware, software and procedures that are secure from intrusion and misuse; (b) provide a reasonable level of reliability in its services which are reasonably suited to the performance of intended functions; (c) adhere to security procedures to ensure that the secrecy and privacy of the [1][electronic signatures] are assured; [3]*** 4[(ca) be the repository of all electronic signature Certificates issued under this Act; (cb) publish information regarding its practices, electronic signature Certificates and current status of such certificates; and ] (d) observe such other standards as may be specified by regulations. **31. Certifying Authority to ensure compliance of the Act, etc.–Every Certifying Authority shall** ensure that every person employed or otherwise engaged by it complies, in the course of his employment or engagement, with the provisions of this Act, rules, regulations and orders made thereunder. 1. Subs. by Act 10 of 2009, s. 2, for “digital signature” (w.e.f. 27-10-2009). 2. Subs. by s. 14, _ibid.,_ for “any contravention of the provisions of this Act, rules and regulations made thereunder” (w.e.f. 27-10-2009). ----- **32. Display of licence.–Every Certifying Authority shall display its licence at a conspicuous place of** the premises in which it carries on its business. **33. Surrender of licence.–(1) Every Certifying Authority whose licence is suspended or revoked** shall immediately after such suspension or revocation, surrender the licence to the Controller. (2) Where any Certifying Authority fails to surrender a licence under sub-section (1), the person in whose favour a licence is issued, shall be guilty of an offence and shall be [1][liable to penalty which may extend to five lakh rupees]. **34. Disclosure.–(1) Every Certifying Authority shall disclose in the manner specified by regulations–** (a) its [2][electronic signature] Certificate [3]***; (b) any certification practice statement relevant thereto; (c) notice of the revocation or suspension of its Certifying Authority certificate, if any; and (d) any other fact that materially and adversely affects either the reliability of a [2][electronic signature] Certificate, which that Authority has issued, or the Authority's ability to perform its services. (2) Where in the opinion of the Certifying Authority any event has occurred or any situation has arisen which may materially and adversely affect the integrity of its computer system or the conditions subject to which a [2][electronic signature] Certificate was granted, then, the Certifying Authority shall– (a) use reasonable efforts to notify any person who is likely to be affected by that occurrence; or (b) act in accordance with the procedure specified in its certification practice statement to deal with such event or situation. CHAPTERVII 2[ELECTRONIC SIGNATURE] CERTIFICATES **35. Certifying authority to issue [2][electronic signature] Certificate.–(1) Any person may make an** application to the Certifying Authority for the issue of a [2][electronic signature] Certificate in such form as may be prescribed by the Central Government. (2) Every such application shall be accompanied by such fee not exceeding twenty-five thousand rupees as may be prescribed by the Central Government, to be paid to the Certifying Authority: Provided that while prescribing fees under sub-section (2) different fees may be prescribed for different classes of applicants. (3) Every such application shall be accompanied by a certification practice statement or where there is no such statement, a statement containing such particulars, as may be specified by regulations. (4) On receipt of an application under sub-section (1), the Certifying Authority may, after consideration of the certification practice statement or the other statement under sub-section (3) and after making such enquiries as it may deem fit, grant the [2][electronic signature] Certificate or for reasons to be recorded in writing, reject the application: 4* - - - 5[Provided] that no application shall be rejected unless the applicant has been given a reasonable opportunity of showing cause against the proposed rejection. **36. Representations upon issuance of Digital Signature Certificate.–A Certifying Authority while** issuing a Digital Signature Certificate shall certify that– (a) it has complied with the provisions of this Act and the rules and regulations made thereunder; (b) it has published the Digital Signature Certificate or otherwise made it available to such person relying on it and the subscriber has accepted it; 1. Subs. by Act 18 of 2023, s. 2 and Schedule for certain words (w.e.f. 30-11-2023). 2. Subs. by Act 10 of 2009, s. 2, for “digital signature” (w.e.f. 27-10-2009). 3. Certain words omitted by s. 16, ibid. (w.e.f. 27-10-2009). ----- (c) the subscriber holds the private key corresponding to the public key, listed in the Digital Signature Certificate; 1[(ca) the subscriber holds a private key which is capable of creating a digital signature; (cb) the public key to be listed in the certificate can be used to verify a digital signature affixed by the private key held by the subscriber;] (d) the subscriber's public key and private key constitute a functioning key pair; (e) the information contained in the Digital Signature Certificate is accurate; and (f) it has no knowledge of any material fact, which if it had been included in the Digital Signature Certificate would adversely affect the reliability of the representations in clauses (a) to (d). **37. Suspension of Digital Signature Certificate.–(1) Subject to the provisions of sub-section (2), the** Certifying Authority which has issued a Digital Signature Certificate may suspend such Digital Signature Certificate,– (a) on receipt of a request to that effect from– (i) the subscriber listed in the Digital Signature Certificate; or (ii) any person duly authorised to act on behalf of that subscriber; (b) if it is of opinion that the Digital Signature Certificate should be suspended in public interest. (2) A Digital Signature Certificate shall not be suspended for a period exceeding fifteen days unless the subscriber has been given an opportunity of being heard in the matter. (3) On suspension of a Digital Signature Certificate under this section, the Certifying Authority shall communicate the same to the subscriber. **38. Revocation of Digital Signature Certificate.–(1) A Certifying Authority may revoke a Digital** Signature Certificate issued by it– (a) where the subscriber or any other person authorised by him makes a request to that effect; or (b) upon the death of the subscriber; or (c) upon the dissolution of the firm or winding up of the company where the subscriber is a firm or a company. (2) Subject to the provisions of sub-section (3) and without prejudice to the provisions of sub-section (1), a Certifying Authority may revoke a Digital Signature Certificate which has been issued by it at any time, if it is of opinion that– (a) a material fact represented in the Digital Signature Certificate is false or has been concealed; (b) a requirement for issuance of the Digital Signature Certificate was not satisfied; (c) the Certifying Authority's private key or security system was compromised in a manner materially affecting the Digital Signature Certificate's reliability; (d) the subscriber has been declared insolvent or dead or where a subscriber is a firm or a company, which has been dissolved, wound-up or otherwise ceased to exist. (3) A Digital Signature Certificate shall not be revoked unless the subscriber has been given an opportunity of being heard in the matter. (4) On revocation of a Digital Signature Certificate under this section, the Certifying Authority shall communicate the same to the subscriber. **39. Notice of suspension or revocation.–(1) Where a Digital Signature Certificate is suspended or** revoked under section 37 or section 38, the Certifying Authority shall publish a notice of such suspension or revocation, as the case may be, in the repository specified in the Digital Signature Certificate for publication of such notice. ----- (2) Where one or more repositories are specified, the Certifying Authority shall publish notices of such suspension or revocation, as the case may be, in all such repositories. CHAPTER VIII DUTIES OF SUBSCRIBERS **40. Generating key pair.–Where any Digital Signature Certificate the public key of which** corresponds to the private key of that subscriber which is to be listed in the Digital Signature Certificate has been accepted by a subscriber, [1]*** the subscriber shall generate [2][that key] pair by applying the security procedure. 3[40A. Duties of subscriber of Electronic Signature Certificate.–In respect of Electronic Signature Certificate the subscriber shall perform such duties as may be prescribed.] **41. Acceptance of Digital Signature Certificate.–(1) A subscriber shall be deemed to have accepted** a Digital Signature Certificate if he publishes or authorises the publication of a Digital Signature Certificate– (a) to one or more persons; (b) in a repository; or otherwise demonstrates his approval of the Digital Signature Certificate in any manner. (2) By accepting a Digital Signature Certificate the subscriber certifies to all who reasonably rely on the information contained in the Digital Signature Certificate that– (a) the subscriber holds the private key corresponding to the public key listed in the Digital Signature Certificate and is entitled to hold the same; (b) all representations made by the subscriber to the Certifying Authority and all material relevant to the information contained in the Digital Signature Certificate are true; (c) all information in the Digital Signature Certificate that is within the knowledge of the subscriber is true. **42. Control of private key.–(1) Every subscriber shall exercise reasonable care to retain control of** the private key corresponding to the public key listed in his Digital Signature Certificate and take all steps to prevent its disclosure [4]***. (2) If the private key corresponding to the public key listed in the Digital Signature Certificate has been compromised, then, the subscriber shall communicate the same without any delay to the Certifying Authority in such manner as may be specified by the regulations. _Explanation.–For the removal of doubts, it is hereby declared that the subscriber shall be liable till he_ has informed the Certifying Authority that the private key has been compromised. CHAPTER IX 5[PENALTIES, COMPENSATION AND ADJUDICATION] **43.** [6][Penalty and compensation] for damage to computer, computer system, etc.–If any person without permission of the owner or any other person who is in charge of a computer, computer system or computer network,– (a) accesses or secures access to such computer, computer system or computer network 7[or computer resource]; 1. The word “then” omitted by notification No. S.O. 1015(E) (w.e.f. 19-9-2002). 2. Subs. ibid., for “the key” (w.e.f. 19-9-2002). 3. Ins. by Act 10 of 2009, s. 19 (w.e.f. 27-10-2009). 4. The words “to a person not authorised to affix the digital signature of the subscriber” omitted by notification No. S.O.1015(E) (w.e.f. 19-9-2002). 5. Subs. by Act 10 of 2009, s. 20, for “PENALTIES AND ADJUDICATION” (w.e.f. 27-10-2009). ----- (b) downloads, copies or extracts any data, computer data base or information from such computer, computer system or computer network including information or data held or stored in any removable storage medium; (c) introduces or causes to be introduced any computer contaminant or computer virus into any computer, computer system or computer network; (d) damages or causes to be damaged any computer, computer system or computer network, data, computer data base or any other programmes residing in such computer, computer system or computer network; (e) disrupts or causes disruption of any computer, computer system or computer network; (f) denies or causes the denial of access to any person authorised to access any computer, computer system or computer network by any means; (g) provides any assistance to any person to facilitate access to a computer, computer system or computer network in contravention of the provisions of this Act, rules or regulations made thereunder; (h) charges the services availed of by a person to the account of another person by tampering with or manipulating any computer, computer system, or computer network; 1[(i) destroys, deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means; (j) steal, conceal, destroys or alters or causes any person to steal, conceal, destroy or alter any computer source code used for a computer resource with an intention to cause damage;] 2[he shall be liable to pay damages by way of compensation to the person so affected.] _Explanation.–For the purposes of this section,–_ (i) “computer contaminant” means any set of computer instructions that are designed– (a) to modify, destroy, record, transmit data or programme residing within a computer, computer system or computer network; or (b) by any means to usurp the normal operation of the computer, computer system, or computer network; (ii) “computer data-base” means a representation of information, knowledge, facts, concepts or instructions in text, image, audio, video that are being prepared or have been prepared in a formalised manner or have been produced by a computer, computer system or computer network and are intended for use in a computer, computer system or computer network; (iii) “computer virus” means any computer instruction, information, data or programme that destroys, damages, degrades or adversely affects the performance of a computer resource or attaches itself to another computer resource and operates when a programme, data or instruction is executed or some other event takes place in that computer resource; (iv) “damage” means to destroy, alter, delete, add, modify or rearrange any computer resource by any means. 1[(v) “computer source code” means the listing of programme, computer commands, design and layout and programme analysis of computer resource in any form.] **3[43A. Compensation for failure to protect data.–Where a body corporate, possessing, dealing or** handling any sensitive personal data or information in a computer resource which it owns, controls or operates, is negligent in implementing and maintaining reasonable security practices and procedures and thereby causes wrongful loss or wrongful gain to any person, such body corporate shall be liable to pay damages by way of compensation to the person so affected. 1. Ins. by Act 10 of 2009, s. 21 (w.e.f. 27-10-2009). ----- _Explanation.–For the purposes of this section,–_ (i) “body corporate” means any company and includes a firm, sole proprietorship or other association of individuals engaged in commercial or professional activities; (ii) “reasonable security practices and procedures” means security practices and procedures designed to protect such information from unauthorised access, damage, use, modification, disclosure or impairment, as may be specified in an agreement between the parties or as may be specified in any law for the time being in force and in the absence of such agreement or any law, such reasonable security practices and procedures, as may be prescribed by the Central Government in consultation with such professional bodies or associations as it may deem fit; (iii) “sensitive personal data or information” means such personal information as may be prescribed by the Central Government in consultation with such professional bodies or associations as it may deem fit.] **44. Penalty for failure to furnish information, return, etc.–If any person who is required under this** Act or any rules or regulations made thereunder to– (a) furnish any document, return or report to the Controller or the Certifying Authority fails to furnish the same, he shall be liable to a penalty not exceeding [1][fifteen lakh] rupees for each such failure; (b) file any return or furnish any information, books or other documents within the time specified therefor in the regulations fails to file return or furnish the same within the time specified therefor in the regulations, he shall be liable to a penalty not exceeding [2][fifty thousand] rupees for every day during which such failure continues; (c) maintain books of account or records, fails to maintain the same, he shall be liable to a penalty not exceeding [3][one lakh] rupees for every day during which the failure continues. **45. Residuary penalty.–Whoever contravenes any** [4][rules, regulations, directions or orders] made under this Act, for the contravention of which no penalty has been separately provided, shall be liable to pay a [5][penalty not exceeding one lakh rupees, in addition to compensation to the person affected by such contravention not exceeding— (a) ten lakh rupees, by an intermediary, company or body corporate; or (b) one lakh rupees, by any other person.] **46. Power to adjudicate.–(1) For the purpose of adjudging [6][under this Act] whether any person has** committed a contravention of any of the provisions of this Act or of any rule, regulation, [7][direction or order made thereunder which renders him liable to pay penalty or compensation,] the Central Government shall, subject to the provisions of sub-section (3), appoint any officer not below the rank of a Director to the Government of India or an equivalent officer of a State Government to be an adjudicating officer for holding an inquiry in the manner prescribed by the Central Government. 8[(1A) The adjudicating officer appointed under sub-section (1) shall exercise jurisdiction to adjudicate matters in which the claim for [9]*** damage does not exceed rupees five crore: Provided that the jurisdiction in respect of the claim for [9]*** damage exceeding rupees five crores shall vest with the competent court.] (2) The adjudicating officer shall, after giving the person referred to in sub-section (1) a reasonable opportunity for making representation in the matter and if, on such inquiry, he is satisfied that the person 1. Subs. by Act 18 of 2023, s. 2 and Schedule, for “one lakh and fifty thousand” (w.e.f. 30-11-2023). 2. Subs. by ibid., s. 2 and Schedule, for “five thousand” (w.e.f. 30-11-2023). 3. Sub. by ibid., s. 2 and Schedule, for “ten thousand” (w.e.f. 30-11-2023). 4. Subs. by ibid., s. 2 and Schedule, for “rules or regulations” (w.e.f. 30-11-2023). 5. Subs. by ibid., s. 2 and Schedule, for certain words (w.e.f. 30-11-2023). 6. Subs. by ibid., s. 2 and Schedule, for “under this Chapter” (w.e.f. 30-11-2023). 7. Subs. by Act 10 of 2009, s. 23, for “direction or order made thereunder” (w.e.f. 27-10-2009). ----- has committed the contravention, he may impose such penalty or award such compensation as he thinks fit in accordance with the provisions of that section. (3) No person shall be appointed as an adjudicating officer unless he possesses such experience in the field of Information Technology and legal or judicial experience as may be prescribed by the Central Government. (4) Where more than one adjudicating officers are appointed, the Central Government shall specify by order the matters and places with respect to which such officers shall exercise their jurisdiction. (5) Every adjudicating officer shall have the powers of a civil court which are conferred on the 1[Appellate Tribunal] under sub-section (2) of section 58, and– (a) all proceedings before it shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860); (b) shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974); 2[(c) shall be deemed to be a civil court for purposes of Order XXI of the Civil Procedure Code, 1908 (5 of 1908).] **47. Factors to be taken into account by the adjudicating officer.–While adjudging the quantum of** compensation under this Chapter, the adjudicating officer shall have due regard to the following factors, namely:– (a) the amount of gain of unfair advantage, wherever quantifiable, made as a result of the default; (b) the amount of loss caused to any person as a result of the default; (c) the repetitive nature of the default. CHAPTER X 3[APPELLATE TRIBUNAL] **48. Establishment of [1][Appellate Tribunal].–[4][(1) The Telecom Disputes Settlement and Appellate** Tribunal established under section 14 of the Telecom Regulatory Authority of India Act, 1997 shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.] (2) The Central Government [5][shall specify, by notification] the matters and places in relation to which the [1][Appellate Tribunal] may exercise jurisdiction. **49. [Composition of Cyber Appellate Tribunal.]—Omitted by the Finance** _Act, 2017 (7_ _of 2017),_ _s. 169 (w.e.f. 26-5-2017)._ **50. [Qualifications for appointment as Chairperson and Members of Cyber Appellate** **Tribunal.]—Omitted by s. 169, ibid. (w.e.f. 26-5-2017).** **51. [Term of office, conditions of service, etc., of Chairperson and Members.]—Omitted by s.** 169, ibid. (w.e.f. 26-5-2017). **52. [Salary, allowances and other terms and conditions of service of Chairperson and** **Members.]—Omitted by s. 169, ibid. (w.e.f. 26-5-2017).** **52A. [Powers of superintendence, direction, etc.]—Omitted by s. 169, ibid. (w.e.f. 26-5-2017).** **52B. [Distribution of business among Benches.]—Omitted by s. 169, ibid. (w.e.f. 26-5-2017).** **52C. [Power of Chairperson to transfer cases.]—Omitted by s. 169, ibid. (w.e.f. 26-5-2017).** **52D. Decision by majority.–If the Members of a Bench consisting of two Members differ in opinion** on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson of the [1][Appellate Tribunal] who shall hear the point or points himself and such point or 1. Subs. by Act 7 of 2017, s. 169, for “Cyber Appellate Tribunal” (w.e.f. 26-5-2017) 2. Ins. by Act 10 of 2009, s. 23 (w.e.f. 27-10-2009). 3. Subs. by Act 7 of 2017, s. 169, for Chapter heading (w.e.f. 26-5-2017). ----- points shall be decided according to the opinion of the majority of the Members who have heard the case, including those who first heard it.] **53. [Filling up of vacancies.]—Omitted by the Finance** _Act, 2017 (7 of 2017), s. 169 (w.e.f. 26-5-_ 2017). **54. [Resignation and removal.]—Omitted by s. 169, ibid. (w.e.f. 26-5-2017).** **55. Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings.–No** order of the Central Government appointing any person as the [1][Chairperson or the Member] of a 2[Appellate Tribunal] shall be called in question in any manner and no act or proceeding before a 2[Appellate Tribunal] shall be called in question in any manner on the ground merely of any defect in the constitution of a [2][Appellate Tribunal]. **56. [Staff of the Cyber Appellate Tribunal.]—Omitted by the Finance** _Act, 2017 (7 of 2017), s. 169_ (w.e.f. 26-5-2017). **57. Appeal to [2][Appellate Tribunal].–(1) Save as provided in sub-section (2), any person aggrieved** by an order made by controller or an adjudicating officer under this Act may prefer an appeal to a 2[Appellate Tribunal] having jurisdiction in the matter. (2) No appeal shall lie to the [2][Appellate Tribunal] from an order made by an adjudicating officer with the consent of the parties. (3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order made by the Controller or the adjudicating officer is received by the person aggrieved and it shall be in such form and be accompanied by such fee as may be prescribed: Provided that the [2][Appellate Tribunal] may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (4) On receipt of an appeal under sub-section (1), the [2][Appellate Tribunal] may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (5) The [2][Appellate Tribunal] shall send a copy of every order made by it to the parties to the appeal and to the concerned Controller or adjudicating officer. (6) The appeal filed before the [2][Appellate Tribunal] under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal. **58. Procedure and powers of the [2][Appellate Tribunal].–(1) The [2][Appellate Tribunal] shall not be** bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules, the 2[Appellate Tribunal] shall have powers to regulate its own procedure including the place at which it shall have its sittings. (2) The [2][Appellate Tribunal] shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:– (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents or other electronic records; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) reviewing its decisions; (f) dismissing an application for default or deciding it ex parte; (g) any other matter which may be prescribed. ----- (3) Every proceeding before the [1][Appellate Tribunal] shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code (45 of 1860) and the [1][Appellate Tribunal] shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **59. Right to legal representation.–The appellant may either appear in person or authorise one or** more legal practitioners or any of its officers to present his or its case before the [1][Appellate Tribunal]. **60. Limitation.–The provisions of the Limitation Act, 1963 (36 of 1963), shall, as far as may be,** apply to an appeal made to the [1][Appellate Tribunal]. **61. Civil court not to have jurisdiction.–No court shall have jurisdiction to entertain any suit or** proceeding in respect of any matter which an adjudicating officer appointed under this Act or the 1[Appellate Tribunal] constituted under this Act is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **62. Appeal to High Court.–Any person aggrieved by any decision or order of the** [1][Appellate Tribunal] may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the [1][Appellate Tribunal] to him on any question of fact or law arising out of such order: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. **63. Compounding of contraventions.–(1) Any contravention under this [2][Act] may, either before or** after the institution of adjudication proceedings, be compounded by the Controller or such other officer as may be specially authorised by him in this behalf or by the adjudicating officer, as the case may be, subject to such conditions as the Controller or such other officer or the adjudicating officer may specify: Provided that such sum shall not, in any case, exceed the maximum amount of the penalty which may be imposed under this Act for the contravention so compounded. (2) Nothing in sub-section (1) shall apply to a person who commits the same or similar contravention within a period of three years from the date on which the first contravention, committed by him, was compounded. _Explanation.–For the purposes of this sub-section, any second or subsequent contravention_ committed after the expiry of a period of three years from the date on which the contravention was previously compounded shall be deemed to be a first contravention. (3) Where any contravention has been compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the person guilty of such contravention in respect of the contravention so compounded. **64. Recovery of [3][penalty or compensation].–A [4][penalty imposed or compensation awarded] under** this Act, if it is not paid, shall he recovered as an arrear of land revenue and the licence or the [5][electronic signature] Certificate, as the case may be, shall be suspended till the penalty is paid. CHAPTER XI OFFENCES **65. Tampering with computer source documents.–Whoever knowingly or intentionally conceals,** destroys or alters or intentionally or knowingly causes another to conceal, destroy, or alter any computer source code used for a computer, computer programme, computer system or computer network, when the computer source code is required to be kept or maintained by law for the time being in force, shall be punishable with imprisonment up to three years, or with fine which may extend up to two lakh rupees, or with both. 1. Subs. by 7 of 2017, s. 169, for “Cyber Appellate Tribunal” (w.e.f. 26-5-2017). 2. Subs. by notification No. S.O. 1015(E) (w.e.f. 19-9-2002). 3. Subs. by Act 10 of 2009, s. 31, for marginal heading (w.e.f. 27-10-2009). ----- _Explanation.–For the purposes of this section, “computer source code” means the listing of_ programmes, computer commands, design and layout and programme analysis of computer resource in any form. **1[66. Computer related offences.–If any person, dishonestly or fraudulently, does any act referred to** in section 43, he shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to five lakh rupees or with both. _Explanation.–For the purposes of this section,–_ (a) the word “dishonestly” shall have the meaning assigned to it in section 24 of the Indian Penal Code (45 of 1860); (b) the word “fraudulently” shall have the meaning assigned to it in section 25 of the Indian Penal Code (45 of 1860). **266A. [Punishment for sending offensive messages through communication service, etc.]–** _Omitted by the Jan Vishwas (Amendment of Provisions)_ _Act, 2023 (18 of 2023), s. 2 and Schedule (w.e.f._ 30-11-2023). **66B. Punishment for dishonestly receiving stolen computer resource or communication device.–** Whoever dishonestly received or retains any stolen computer resource or communication device knowing or having reason to believe the same to be stolen computer resource or communication device, shall be punished with imprisonment of either description for a term which may extend to three years or with fine which may extend to rupees one lakh or with both. **66C. Punishment for identity theft.–Whoever, fraudulently or dishonestly make use of the** electronic signature, password or any other unique identification feature of any other person, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to rupees one lakh. **66D. Punishment for cheating by personation by using computer resource.–Whoever, by means** of any communication device or computer resource cheats by personating, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to one lakh rupees. **66E. Punishment for violation of privacy.–Whoever, intentionally or knowingly captures, publishes** or transmits the image of a private area of any person without his or her consent, under circumstances violating the privacy of that person, shall be punished with imprisonment which may extend to three years or with fine not exceeding two lakh rupees, or with both. _Explanation.–For the purposes of this section–_ (a) “transmit” means to electronically send a visual image with the intent that it be viewed by a person or persons; (b) “capture”, with respect to an image, means to videotape, photograph, film or record by any means; (c) “private area” means the naked or undergarment clad genitals, public area, buttocks or female breast: (d) “publishes” means reproduction in the printed or electronic form and making it available for public; (e) “under circumstances violating privacy” means circumstances in which a person can have a reasonable expectation that– (i) he or she could disrobe in privacy, without being concerned that an image of his private area was being captured; or (ii) any part of his or her private area would not be visible to the public, regardless of whether that person is in a public or private place. 1. Subs. by Act 10 of 2009, s. 32, for sections 66 and 67 (w.e.f. 27-10-2009). 2. Section 66A has been struck down by supreme Court’s Order dated 24-3-2015 in the Shreya Singhal Vs. Union of India, AIR 2015 SC 1523 ----- **66F. Punishment for cyber terrorism.–(1) Whoever,–** (A) with intent to threaten the unity, integrity, security or sovereignty of India or to strike terror in the people or any section of the people by– (i) denying or cause the denial of access to any person authorised to access computer resource; or (ii) attempting to penetrate or access a computer resource without authorisation or exceeding authorised access; or (iii) introducing or causing to introduce any computer contaminant, and by means of such conduct causes or is likely to cause death or injuries to persons or damage to or destruction of property or disrupts or knowing that it is likely to cause damage or disruption of supplies or services essential to the life of the community or adversely affect the critical information infrastructure specified under section 70; or (B) knowingly or intentionally penetrates or accesses a computer resource without authorisation or exceeding authorised access, and by means of such conduct obtains access to information, data or computer data base that is restricted for reasons of the security of the State or foreign relations; or any restricted information, data or computer data base, with reasons to believe that such information, data or computer data base so obtained may be used to cause or likely to cause injury to the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality, or in relation to contempt of court, defamation or incitement to an offence, or to the advantage of any foreign nation, group of individuals or otherwise, commits the offence of cyber terrorism. (2) Whoever commits or conspires to commit cyber terrorism shall be punishable with imprisonment which may extend to imprisonment for life. **67. Punishment for publishing or transmitting obscene material in electronic form.–Whoever** publishes or transmits or causes to be published or transmitted in the electronic form, any material which is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it, shall be punished on first conviction with imprisonment of either description for a term which may extend to three years and with fine which may extend to five lakh rupees and in the event of second or subsequent conviction with imprisonment of either description for a term which may extend to five years and also with fine which may extend to ten lakh rupees. **67A. Punishment for publishing or transmitting of material containing sexually explicit act, etc.,** **in electronic form.–Whoever publishes or transmits or causes to be published or transmitted in the** electronic form any material which contains sexually explicit act or conduct shall be punished on first conviction with imprisonment of either description for a term which may extend to five years and with fine which may extend to ten lakh rupees and in the event of second or subsequent conviction with imprisonment of either description for a term which may extend to seven years and also with fine which may extend to ten lakh rupees. **67B. Punishment for publishing or transmitting of material depicting children in sexually** **explicit act, etc., in electronic form.–Whoever,–** (a) publishes or transmits or causes to be published or transmitted material in any electronic form which depicts children engaged in sexually explicit act or conduct; or (b) creates text or digital images, collects, seeks, browses, downloads, advertises, promotes, exchanges or distributes material in any electronic form depicting children in obscene or indecent or sexually explicit manner; or (c) cultivates, entices or induces children to online relationship with one or more children for and on sexually explicit act or in a manner that may offend a reasonable adult on the computer resource; or (d) facilitates abusing children online, or ----- (e) records in any electronic form own abuse or that of others pertaining to sexually explicit act with children, shall be punished on first conviction with imprisonment of either description for a term which may extend to five years and with fine which may extend to ten lakh rupees and in the event of second or subsequent conviction with imprisonment of either description for a term which may extend to seven years and also with fine which may extend to ten lakh rupees: Provided that provisions of section 67, section 67A and this section does not extend to any book, pamphlet, paper, writing, drawing, painting representation or figure in electronic form– (i) the publication of which is proved to be justified as being for the public good on the ground that such book, pamphlet, paper, writing, drawing, painting representation or figure is the interest of science, literature, art or learning or other objects of general concern; or (ii) which is kept or used for bona fide heritage or religious purposes. _Explanation–For the purposes of this section, “children” means a person who has not completed_ the age of 18 years. **67C. Preservation and retention of information by intermediaries.–(1) Intermediary shall** preserve and retain such information as may be specified for such duration and in such manner and format as the Central Government may prescribe. (2) any intermediary who intentionally or knowingly contravenes the provisions of sub-section (1) shall be [1][liable to penalty which may extend to twenty-five lakh rupees].] **68. Power of Controller to give directions.–(1) The Controller may, by order, direct a Certifying** Authority or any employee of such Authority to take such measures or cease carrying on such activities as specified in the order if those are necessary to ensure compliance with the provisions of this Act, rules or any regulations made thereunder. 2[(2) Any person who intentionally or knowingly fails to comply with any order under sub-section (1) shall be guilty of an offence and shall be liable [1][to penalty which may extend to twenty-five lakh rupees].] **3[69. Power to issue directions for interception or monitoring or decryption of any information** **through any computer resource.–(1) Where the Central Government or a State Government or any of** its officers specially authorised by the Central Government or the State Government, as the case may be, in this behalf may, if satisfied that it is necessary or expedient so to do, in the interest of the sovereignty or integrity of India, defence of India, security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of any cognizable offence relating to above or for investigation of any offence, it may subject to the provisions of sub-section (2), for reasons to be recorded in writing, by order, direct any agency of the appropriate Government to intercept, monitor or decrypt or cause to be intercepted or monitored or decrypted any information generated, transmitted, received or stored in any computer resource. (2) The procedure and safeguards subject to which such interception or monitoring or decryption may be carried out, shall be such as may be prescribed. (3) The subscriber or intermediary or any person in-charge of the computer resource shall, when called upon by any agency referred to in sub-section (1), extend all facilities and technical assistance to– (a) provide access to or secure access to the computer resource generating, transmitting, receiving or storing such information; or (b) intercept, monitor, or decrypt the information, as the case may be; or (c) provide information stored in computer resource. (4) The subscriber or intermediary or any person who fails to assist the agency referred to in sub section (3) shall be punished with imprisonment for a term which may extend to seven years and shall also be liable to fine. 1. Subs. by Act 18 of 2023, s. 2 and Schedule for certain words (w.e.f. 30-11-2023). ----- **69A. Power to issue directions for blocking for public access of any information through any** **computer resource.–(1) Where the Central Government or any of its officers specially authorised by it in** this behalf is satisfied that it is necessary or expedient so to do, in the interest of sovereignty and integrity of India, defence of India, security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of any cognizable offence relating to above, it may subject to the provisions of sub-section (2), for reasons to be recorded in writing, by order, direct any agency of the Government or intermediary to block for access by the public or cause to be blocked for access by the public any information generated, transmitted, received, stored or hosted in any computer resource. (2) The procedure and safeguards subject to which such blocking for access by the public may be carried out, shall be such as may be prescribed. (3) The intermediary who fails to comply with the direction issued under sub-section (1) shall be punished with an imprisonment for a term which may extend to seven years and also be liable to fine. **69B. Power to authorise to monitor and collect traffic data or information through any** **computer resource for cyber security.–(1) The Central Government may, to enhance cyber security and** for identification, analysis and prevention of intrusion or spread of computer contaminant in the country, by notification in the Official Gazette, authorise any agency of the Government to monitor and collect traffic data or information generated, transmitted, received or stored in any computer resource. (2) The intermediary or any person in-charge or the computer resource shall, when called upon by the agency which has been authorised under sub-section (1), provide technical assistance and extend all facilities to such agency to enable online access or to secure and provide online access to the computer resource generating, transmitting, receiving or storing such traffic data or information. (3) The procedure and safeguards for monitoring and collecting traffic data or information, shall be such as may be prescribed. (4) Any intermediary who intentionally or knowingly contravenes the provisions of sub-section (2) shall be punished with an imprisonment for a term which any extend to [1][one year or shall be liable to fine which may extend to one crore rupees, or with both]. _Explanation.–For the purposes of this section,–_ (i) “computer contaminant” shall have the meaning assigned to it in section 43; (ii) “traffic data” means any data identifying or purporting to identify any person, computer system or computer network or location to or from which the communication is or may be transmitted and includes communications origin, destination, route, time, data, size, duration or type of underlying service and any other information.] **70. Protected system.–[2][(1) The appropriate Government may, by notification in the Official** Gazette, declare any computer resource which directly or indirectly affects the facility of Critical Information Infrastructure, to be a protected system. _Explanation.–For the purposes of this section, “Critical Information Infrastructure” means the_ computer resource, the incapacitation or destruction of which, shall have debilitating impact on national security, economy, public health or safety.] (2) The appropriate Government may, by order in writing, authorise the persons who are authorised to access protected systems notified under sub-section (1). (3) Any person who secures access or attempts to secure access to a protected system in contravention of the provisions of this section shall be punished with imprisonment of either description for a term which may extend to ten years and shall also be liable to fine. 3[(4) The Central Government shall prescribe the information security practices and procedures for such protected system.] 4[70A. National nodal agency.–(1) The Central Government may, by notification published in the Official Gazette, designate any organisation of the Government as the national nodal agency in respect of Critical Information Infrastructure Protection. 1. Subs. by Act 18 of 2023, s. 2 and Schedule for “three years and shall also be liable to fine” (w.e.f. 30-11-2023). 2. Subs. by Act 10 of 2009, s. 35, for sub-section (1) (w.e.f. 27-10-2009). ----- (2) The national nodal agency designated under sub-section (1) shall be responsible for all measures including Research and Development relating to protection of Critical Information Infrastructure. (3) The manner of performing functions and duties of the agency referred to in sub-section (1) shall be such as may be prescribed. **70B. Indian Computer Emergency Response Team to serve as national agency for incident** **response.–(1) The Central Government shall, by notification in the Official Gazette, appoint an agency of** the Government to be called the Indian Computer Emergency Response Team. (2) The Central Government shall provide the agency referred to in sub-section (1) with a Director General and such other officers and employees as may be prescribed. (3) The salary and allowances and terms and conditions of the Director-General and other officers and employees shall be such as may be prescribed. (4) The Indian Computer Emergency Response Team shall serve as the national agency for performing the following functions in the area of cyber security,– (a) collection, analysis and dissemination of information on cyber incidents; (b) forecast and alerts of cyber security incidents; (c) emergency measures for handling cyber security incidents; (d) coordination of cyber incidents response activities; (e) issue guidelines, advisories, vulnerability notes and white papers relating to information security practices, procedures, preventation, response and reporting of cyber incidents; (f) such other functions relating to cyber security as may be prescribed. (5) The manner of performing functions and duties of the agency referred to in sub-section (1) shall be such as may be prescribed. (6) For carrying out the provisions of sub-section (4), the agency referred to in sub-section (1) may call for information and give direction to the service providers, intermediaries, data centres, body corporate and any other person. (7) Any service provider, intermediaries, data centres, body corporate or person who fails to provide the information called for or comply with the direction under sub-section (6), shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to [1][one crore] rupees or with both. (8) No court shall take cognizance of any offence under this section, except on a complaint made by an officer authorised in this behalf by the agency referred to in sub-section (1).] **71. Penalty for misrepresentation.–Whoever makes any misrepresentation to, or suppresses any** material fact from the Controller or the Certifying Authority for obtaining any licence or [2][electronic signature] Certificate, as the case may be, shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both. **72. Penalty for Breach of confidentiality and privacy.–Save as otherwise provided in this Act or** any other law for the time being in force, if any person who, in pursuance of any of the powers conferred under this Act, rules or regulations made thereunder, has secured access to any electronic record, book, register, correspondence, information, document or other material without the consent of the person concerned discloses such electronic record, book, register, correspondence, information, document or other material to any other person shall be [3][liable to penalty which may extend to five lakh rupees]. **4[72A.** **5[Penalty] for disclosure of information in breach of lawful contract.–Save as otherwise** provided in this Act or any other law for the time being in force, any person including an intermediary who, while providing services under the terms of lawful contract, has secured access to any material 1. Subs. by Act 18 of 2023, s. 2 and Schedule, for “one lakh” (w.e.f. 30-11-2023). 2. Subs. by Act 10 of 2009, s. 2, for “digital signature” (w.e.f. 27-10-2009). 3. Subs. by Act 18 of 2023, s. 2 and Schedule, for certain world (w.e.f. 30-11-2023). ----- containing personal information about another person, with the intent to cause or knowing that he is likely to cause wrongful loss or wrongful gain discloses, without the consent of the person concerned, or in breach of a lawful contract, such material to any other person, shall be [1][liable to penalty which may extend to twenty-five lakh rupees].] **73. Penalty for publishing** [2][electronic signature] Certificate false in certain particulars.–(1) No person shall publish a [2][electronic signature] Certificate or otherwise make it available to any other person with the knowledge that– (a) the Certifying Authority listed in the certificate has not issued it; or (b) the subscriber listed in the certificate has not accepted it; or (c) the certificate has been revoked or suspended, unless such publication is for the purpose of verifying a [2][electronic signature] created prior to such suspension or revocation. (2) Any person who contravenes the provisions of sub-section (1) shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both. **74. Publication for fraudulent purpose.–Whoever knowingly creates, publishes or otherwise makes** available a [2][electronic signature] Certificate for any fraudulent or unlawful purpose shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both. **75. Act to apply for offence or contravention committed outside India.–(1) Subject to the** provisions of sub-section (2), the provisions of this Act shall apply also to any offence or contravention committed outside India by any person irrespective of his nationality. (2) For the purposes of sub-section (1), this Act shall apply to an offence or contravention committed outside India by any person if the act or conduct constituting the offence or contravention involves a computer, computer system or computer network located in India. **76. Confiscation.–Any computer, computer system, floppies, compact disks, tape drives or any other** accessories related thereto, in respect of which any provision of this Act, rules, orders or regulations made thereunder has been or is being contravened, shall be liable to confiscation: Provided that where it is established to the satisfaction of the court adjudicating the confiscation that the person in whose possession, power or control of any such computer, computer system, floppies, compact disks, tape drives or any other accessories relating thereto is found is not responsible for the contravention of the provisions of this Act, rules, orders or regulations made thereunder, the court may, instead of making an order for confiscation of such computer, computer system, floppies, compact disks, tape drives or any other accessories related thereto, make such other order authorised by this Act against the person contravening of the provisions of this Act, rules, orders or regulations made thereunder as it may think fit. 3[77. Compensation, penalties or confiscation not to interfere with other punishment.–No compensation awarded, penalty imposed or confiscation made under this Act shall prevent the award of compensation or imposition of any other penalty or punishment under any other law for the time being in force. **77A. Compounding of offences.–A court of competent jurisdiction may compound offences, other** than offences for which the punishment for life or imprisonment for a term exceeding three years has been provided, under this Act: Provided that the court shall not compound such offence where the accused is, by reason of his previous conviction, liable to either enhanced punishment or to a punishment of a different kind: 1. Subs. by Act 18 of 2023, s. 2 and Schedule, for certain word (w.e.f. 30-11-2023). ----- Provided further that the court shall not compound any offence where such offence affects the socio economic conditions of the country or has been committed against a child below the age of 18 years or a woman. (2) The person accused of an offence under this Act may file an application for compounding in the court in which offence is pending for trial and the provisions of sections 265B and 265C of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply. **77B. Offences with three years imprisonment to be bailable.–Notwithstanding anything contained** in the Code of Criminal Procedure, 1973 (2 of 1974), the offence punishable with imprisonment of three years and above shall be cognizable and the offence punishable with imprisonment of three years shall be bailable.] **78. Power to investigate offences.–Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), a police officer not below the rank of [1][Inspector] shall investigate any offence under this Act. 2[CHAPTER XII INTERMEDIARIES NOT TO BE LIABLE IN CERTAIN CASES **79. Exemption from liability of intermediary in certain cases.–(1) Notwithstanding anything** contained in any law for the time being in force but subject to the provisions of sub-sections (2) and (3), an intermediary shall not be liable for any third party information, data, or communication link made available or hosted by him. (2) The provisions of sub-section (1) shall apply if– (a) the function of the intermediary is limited to providing access to a communication system over which information made available by third parties is transmitted or temporarily stored or hosted; or (b) the intermediary does not– (i) initiate the transmission, (ii) select the receiver of the transmission, and (iii) select or modify the information contained in the transmission; (c) the intermediary observes due diligence while discharging his duties under this Act and also observes such other guidelines as the Central Government may prescribe in this behalf. (3) The provisions of sub-section (1) shall not apply if– (a) the intermediary has conspired or abetted or aided or induced, whether by threats or promise or otherwise in the commission of the unlawful act; (b) upon receiving actual knowledge, or on being notified by the appropriate Government or its agency that any information, data or communication link residing in or connected to a computer resource controlled by the intermediary is being used to commit the unlawful act, the intermediary fails to expeditiously remove or disable access to that material on that resource without vitiating the evidence in any manner. _Explanation.–For the purposes of this section, the expression “third party information” means any_ information dealt with by an intermediary in his capacity as an intermediary. CHAPTER XIIA EXAMINER OF ELECTRONIC EVIDENCE **79A. Central Government to notify Examiner of Electronic Evidence.–The Central Government** may, for the purposes of providing expert opinion on electronic form evidence before any court or other authority specify, by notification in the Official Gazette, any Department, body or agency of the Central Government or a State Government as an Examiner of Electronic Evidence. ----- _Explanation.–For the purposes of this section, “electronic form evidence” means any information of_ probative value that is either stored or transmitted in electronic form and includes computer evidence, digital audio, digital video, cell phones, digital fax machines.] CHAPTER XIII MISCELLANEOUS **80. Power of police officer and other officers to enter, search, etc.–(1) Notwithstanding anything** contained in the Code of Criminal Procedure, 1973 (2 of 1974), any police officer, not below the rank of a 1[Inspector], or any other officer of the Central Government or a State Government authorised by the Central Government in this behalf may enter any public place and search and arrest without warrant any person found therein who is reasonably suspected of having committed or of committing or of being about to commit any offence under this Act. _Explanation.–For the purposes of this sub-section, the expression “public place” includes any public_ conveyance, any hotel, any shop or any other place intended for use by, or accessible to the public. (2) Where any person is arrested under sub-section (1) by an officer other than a police officer, such officer shall, without unnecessary delay, take or send the person arrested before a magistrate having jurisdiction in the case or before the officer-in-charge of a police station. (3) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall, subject to the provisions of this section, apply, so far as may be, in relation to any entry, search or arrest, made under this section. **81. Act to have overriding effect.–The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force. 2[Provided that nothing contained in this Act shall restrict any person from exercising any right conferred under the Copyright Act, 1957 (14 of 1957) or the Patents Act, 1970 (39 of 1970).] 3[81A. Application of the Act to electronic cheque and truncated cheque.–(1) The provisions of this Act, for the time being in force, shall apply to, or in relation to, electronic cheques and the truncated cheques subject to such modifications and amendments as may be necessary for carrying out the purposes of the Negotiable Instruments Act, 1881 (26 of 1881) by the Central Government, in consultation with the Reserve Bank of India, by notification in the Official Gazette. (2) Every notification made by the Central Government under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or both Houses agree that the notification should not be made, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification. _Explanation.–For the purposes of this Act, the expressions “electronic cheque” and “truncated_ cheque” shall have the same meaning as assigned to them in section 6 of the Negotiable Instruments Act, 1881 (26 of 1881).] 4[82. Controller, Deputy Controller and Assistant Controller to be public servants.–The Controller, the Deputy Controller and the Assistant Controllers shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).] **83. Power to give directions.–The Central Government may give directions to any State Government** as to the carrying into execution in the State of any of the provisions of this Act or of any rule, regulation or order made thereunder. **84. Protection of action taken in good faith.–No suit, prosecution or other legal proceeding shall lie** against the Central Government, the State Government, the Controller or any person acting on behalf of 1. Subs. by Act 10 of 2009, s. 41, for “Deputy Superintendent of Police” (w.e.f. 27-10-2009). 2. Ins. by s. 42, ibid. (w.e.f. 27-10-2009). ----- him, [1][and adjudicating officers] for anything which is in good faith done or intended to be done in pursuance of this Act or any rule, regulation or order made thereunder. 2[84A. Modes or methods for encryption.–The Central Government may, for secure use of the electronic medium and for promotion of e-governance and e-commerce, prescribe the modes or methods for encryption. **84B. Punishment for abetment of offences.–Whoever abets any offence shall, if the act abetted is** committed in consequence of the abetment, and no express provision is made by this Act for the punishment of such abetment, be punished with the punishment provided for the offence under this Act. _Explanation.–An act or offence is said to be committed in consequence of abetment, when it is_ committed in consequence of the instigation, or in pursuance of the conspiracy, or with the aid which constitutes the abetment. **84C. Punishment for attempt to commit offences.–Whoever attempts to commit an offence** punishable by this Act or causes such an offence to be committed, and in such an attempt does any act towards the commission of the offence, shall, where no express provision is made for the punishment of such attempt, be punished with imprisonment of any description provided for the offence, for a term which may extend to one-half of the longest term of imprisonment provided for that offence, or with such fine as is provided for the offence, or with both.] **85. Offences by companies.–(1) Where a person committing a contravention of any of the provisions** of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for the conduct of business of the company as well as the company, shall be guilty of the contravention and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention. (2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. _Explanation.–For the purposes of this section,–_ (i) “company” means any body corporate and includes a firm or other association of individuals; and (ii) “director”, in relation to a firm, means a partner in the firm. **86. Removal of difficulties.–(1) If any difficulty arises in giving effect to the provisions of this Act,** the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **87. Power of Central Government to make rules.–(1) The Central Government may, by** notification in the Official Gazette and in the Electronic Gazette, make rules to carry out the provisions of this Act. 1. Subs. by Act 7 of 2017, s. 169, for “the Chairperson Members, adjudicating officers and the staff of the Cyber Appellate ----- (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:– 1[(a) the conditions for considering reliability of electronic signature or electronic authentication technique under sub-section (2) of section 3A; (aa) the procedure for ascertaining electronic signature or authentication under sub-section (3) of section 3A; (ab) the manner in which any information or matter may be authenticated by means of electronic signature under section 5;] (b) the electronic form in which filing, issue, grant or payment shall be effected under sub-section (1) of section 6; (c) the manner and format in which electronic records shall be filed, or issued and the method of payment under sub-section (2) of section 6; 2[(ca) the manner in which the authorised service provider may collect, retain and appropriate service charges under sub-section (2) of section 6A;] (d) the matters relating to the type of [3][electronic signature], manner and format in which it may be affixed under section 10; 4[(e) the manner of storing and affixing electronic signature creation data under section 15; (ea) the security procedures and practices under section 16;] (f) the qualifications, experience and terms and conditions of service of Controller, Deputy Controllers [5][, Assistant Controllers, other officers and employees] under section 17; 6* - - - (h) the requirements which an applicant must fulfil under sub-section (2) of section 21; (i) the period of validity of licence granted under clause (a) of sub-section (3) of section 21; (j) the form in which an application for licence may be made under sub-section (1) of section 22; (k) the amount of fees payable under clause (c) of sub-section (2) of section 22; (l) such other documents which shall accompany an application for licence under clause (d) of sub-section (2) of section 22; (m) the form and the fee for renewal of a licence and the fee payable thereof under section 23; [2][(ma) the form of application and fee for issue of Electronic Signature Certificate under section 35;] (n) the form in which application for issue of a [3][electronic signature] Certificate may be made under sub-section (1) of section 35; (o) the fee to be paid to the Certifying Authority for issue of a [3][electronic signature] Certificate under sub-section (2) of section 35; 2[(oa) the duties of subscribers under section 40A; (ob) the reasonable security practices and procedures and sensitive personal data or information under section 43A;] (p) the manner in which the adjudicating officer shall hold inquiry under sub-section (1) of section 46; (q) the qualification and experience which the adjudicating officer shall possess under sub-section (3) of section 46; 1. Subs. by Act 10 of 2009, s. 46, for clause (a) (w.e.f. 27-10-2009). 2. Ins. by s. 46, ibid. (w.e.f. 27-10-2009). 3. Subs. by s. 2, ibid., for “digital signature” (w.e.f. 27-10-2009). 4. Subs. by s. 46, ibid., for clause (e) (w.e.f. 27-10-2009). ----- 1* - - (u) the form in which appeal may be filed and the fee thereof under sub-section (3) of section 57; (v) any other power of a civil court required to be prescribed under clause (g) of sub-section (2) of section 58; and 2[(w) the powers and functions of the Chairperson of the 3[Appellate Tribunal] under section 52A; (x) the information, duration, manner and form of such information to be retained and preserved under section 67C; (y) the procedures and safeguards for interception, monitoring or decryption under sub-section (2) of section 69A; (z) the procedures and safeguards for blocking for access by the public under sub-section (3) of section 69 B; (za) the procedure and safeguards for monitoring and collecting traffic data or information under sub-section (3) of section 69B; (zb) the information security practices and procedures for protected system under section 70; (zc) manner of performing functions and duties of the agency under sub-section (3) of section 70 A; (zd) the officers and employees under sub-section (2) of section 70B; (ze) salaries and allowances and terms and conditions of service of the Director General and other officers and employees under sub-section (3) of section 70B; (zf) the manner in which the functions and duties of agency shall be performed under sub-section (5) of section 70B; (zg) the guidelines to be observed by the intermediaries under sub-section (2) of section 79; (zh) the modes or methods for encryption under section 84 A.] (3) [4][Every notification made by the Central Government under sub-section (1) of section 70A and every rule made by it] shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in [5]*** the rule or both Houses agree that [5]*** the rule should not be made, [5]*** the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule. **88. Constitution of Advisory Committee.–(1) The Central Government shall, as soon as may be** after the commencement of this Act, constitute a Committee called the Cyber Regulations Advisory Committee. (2) The Cyber Regulations Advisory Committee shall consist of a Chairperson and such number of other official and non-official members representing the interests principally affected or having special knowledge of the subject-matter as the Central Government may deem fit. (3) The Cyber Regulations Advisory Committee shall advise– (a) the Central Government either generally as regards any rules or for any other purpose connected with this Act; (b) the Controller in framing the regulations under this Act. 1. Clauses (r), (s) and (t) omitted by Act 7 of 2017, s. 169 (w.e.f. 26-5-2017). 2. Subs. by Act 10 of 2009, s. 46, for clause (w) (w.e.f. 27-10-2009). 3. Subs. by Act 7 of 2017, s. 169, for “Cyber Appellate Tribunal”(w.e.f. 26-5-2017). ----- (4) There shall be paid to the non-official members of such Committee such travelling and other allowances as the Central Government may fix. **89. Power of Controller to make regulations.–(1) The Controller may, after consultation with the** Cyber Regulations Advisory Committee and with the previous approval of the Central Government, by notification in the Official Gazette, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:– (a) the particulars relating to maintenance of data base containing the disclosure record of every Certifying Authority under clause [1][(n)] of section 18; (b) the conditions and restrictions subject to which the Controller may recognise any foreign Certifying Authority under sub-section (1) of section 19; (c) the terms and conditions subject to which a licence may be granted under clause (c) of sub-section (3) of section 21; (d) other standards to be observed by a Certifying Authority under clause (d) of section 30; (e) the manner in which the Certifying Authority shall disclose the matters specified in sub-section (1) of section 34; (f) the particulars of statement which shall accompany an application under sub-section (3) of section 35. (g) the manner by which the subscriber shall communicate the compromise of private key to the Certifying Authority under sub-section (2) of section 42. (3) Every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation. **90. Power of State Government to make rules.–(1) The State Government may, by notification in** the Official Gazette, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:– (a) the electronic form in which filing, issue, grant, receipt or payment shall be effected under sub-section (1) of section 6; (b) for matters specified in sub-section (2) of section 6; 2* - - - (3) Every rule made by the State Government under this section shall be laid, as soon as may be after it is made, before each House of the Stale Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **91. [Amendment of Act 45 of 1860.]—Omitted by the Information Technology (Amendment) Act, 2008** (10 of 2009), s. 48 (w.e.f. 27-10-2009). **92. [Amendment of Act 1 of 1872.]—Omitted by s. 48, ibid. (w.e.f. 27-10-2009).** **93. [Amendment of Act 18 of 1891.]—Omitted by s. 48, ibid. (w.e.f. 27-10-2009).** **94. [Amendment of Act 2 of 1934.]—Omitted by s. 48, ibid. (w.e.f. 27-10-2009).** ----- 1[THE FIRST SCHEDULE [See sub-section (4) of section 1] DOCUMENTS OR TRANSACTIONS TO WHICH THE ACT SHALL NOT APPLY Sl. No. Description of documents or transactions 2[1. A negotiable instrument (other than a cheque, a Demand Promissory Note or a Bill of Exchange issued in favour of or endorsed by an entity regulated by the Reserve Bank of India, National Housing Bank, Securities and Exchange Board of India, Insurance Regulatory and Development Authority of India and Pension Fund Regulatory and Development Authority) as defined in Section 13 of the Negotiable Instrument Act, 1881 (26 of 1881).] 2. A power-of-attorney as defined in section 1A of the Powers-of-Attorney Act, 1882 (7 of 1882) 3[but excluding those power-of-attorney that empower an entity regulated by the Reserve Bank of India, National Housing Bank, Securities and Exchange Board of India, Insurance Regulatory and Development Authority of India and Pension Fund Regulatory and Development Authority to act for, on behalf of, and in the name of the person executing them.]. 3. A trust as defined in section 3 of the Indian Trust Act, 1882 (2 of 1882). 4. A will as defined in clause (h) of section 2 of the Indian Succession Act, 1925 (39 of 1925), including any other testamentary disposition by whatever name called. 5. 4[***] ______________ 1. Subs. by Act 10 of 2009, s. 49, for the First Schedule and the Second Schedule (w.e.f. 27-10-2009). 2. Subs. by notification No S.O. 4720(E), for serial number 1 and the entries relating thereto, Dated 26-9-2022. 3 I b S O 4720(E) D t d 26 9 2022 ----- 1[THE SECOND SCHEDULE [See sub-section (1) of section 3A] ELECTRONIC SIGNATURE OR ELECTRONIC AUTHENTICATION TECHNIQUE AND PROCEDURE Sl. No. Description Procedure (1) (2) (3) 2[1. e-authentication technique using Aadhaar [3][or other] e-KYC services Authentication of an electronic record by e-authentication Technique which shall be done by— (a) the applicable use of e authentication, hash, and asymmetric crypto system techniques, leading to issuance of Digital Signature Certificate by Certifying Authority (b) a trusted third party service by subscriber's key pair-generation, storing of key pairs [4][* * *] and creation of digital signature provided that the trusted third party shall be offered by the certifying authority. The trusted third party shall send application form and certificate signing request to the Certifying Authority for issuing a Digital Signature Certificate to the subscriber. (c) Issuance of Digital Signature Certificate by Certifying Authority shall be based on e-authentication, particulars specified in Form C of Schedule IV of the Information Technology (Certifying Authorities) Rules, 2000, digitally signed verified information from Aadhaar [5][or other] e-KYC services and electronic consent of Digital Signature Certificate applicant. (d) The manner and requirements for eauthentication shall be as issued by the Controller from time to time. (e) The security procedure for creating the subscriber’s key pair [6][and other eKYC services] shall be in accordance with the e-authentication guidelines issued by the Controller. (f) The standards referred to in Rule 6 of the Information Technology (Certifying Authorities) Rules, 2000 shall be 1. Subs. by Act 10 of 2009, s. 49, (w.e.f. 27-10-2009). 2. Ins. by G.S.R. 61(E), dated 27-1-2015 (w.e.f. 28-1-2015). 3. Ins. by S.O. 1119(E), dated 1-3-2019. 4. The words “on hardware security module” omitted by G.S.R. 539(E), dt. 30-6-2015 (w.e.f. 6-7-2015). ----- 2[2. e-authentication technique and procedure for creating and accessing subscriber’s signature key facilitated by trusted third party 1 S b b G S R 446(E) f “( )” d t d 27 4 2016 ( f 27 4 2016) ” complied with, in so far as they relate to the certification function of public key of Digital Signature Certificate applicant. 1[(g) The manner in which the information is authenticated by means of digital signature shall comply with the manner and standards specified in Rules 3 to 12 of the Digital Signature (End entity) Rules, 2015 in so far as they relate to the creation, storage, and verification of Digital Signature] Authentication of an electronic record by e-authentication technique which shall be done by— (a) the applicable use of e-authentication, hash and asymmetric crypto system techniques leading to issuance of Digital Signature Certificate by Certifying Authority, provided that Certifying Authority shall ensure the subscriber identity verification, secure storage of the keys by trusted third party and subscriber’s sole authentication control to the signature key. (b) Identity verification of Digital Signature Certificate applicant shall be in accordance with the Identity Verification Guidelines issued by Controller from time-to-time. (c) The requirement to operate as trusted third party shall be specified under eauthentication guidelines issued by the Controller. (d) a trusted third party shall (i) facilitate Identity verification of Digital Signature Certificate applicant; (ii) establish secure storage for subscriber to have sole control for creation and subsequent usage of subscriber’s signature key by sole authentication of subscriber; (iii) facilitate key pair-generation, secure storage of subscriber's signature key and facilitate signature creation functions; (vi) facilitate the submission of DSC application form and certificate signing request to the Certifying Authority for issuing a Digital Signature Certificate to the DSC applicant, and ----- (v) facilitate revocation of Digital Signature Certificate and destruction of subscriber’s signature key. (e) The manner and requirements for authentication and storage of keys shall be as issued by the Controller from time to time under e-authentication guidelines (g) The security procedure for creating the subscriber's key pair shall be in accordance with the e-authentication guidelines issued by the Controller. (h) The standards referred to in Rule 6 of the Information Technology (Certifying Authorities) Rules, 2000 shall be complied with, in so far as they relate to the certification function of public key of Digital Signature Certificate applicant. (i) The manner in which information is authenticated by means of digital signature shall comply with the manner and standards specified in Rule 3 to 12 of Digital Signature (End entity) Rules, 2015 in so far as they relate to the creation, storage and verification of Digital Signature.] _______________ ----- [THE THIRD SCHEDULE.] Omitted by the Information Technology (Amendment) Act, 2008 (10 of 2009), s. 50 (w.e.f. 27-10-2009). ----- [THE FOURTH SCHEDULE.] _Omitted by the Information Technology (Amendment) Act, 2008 (10 of_ 2009), s. 50 (w.e.f. 27-10-2009). -----
25-Aug-2000
29
The Uttar Pradesh Reorganisation Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/2000/1/200029.pdf
central
# THE UTTAR PRADESH REORGANISATION ACT, 2000 __________________ # ARRANGEMENT OF SECTIONS __________________ PART I PRELIMINARY SECTIONS 1. Short title. 2. Definitions. PART II REORGANISATION OF THE STATE OF UTTAR PRADESH 3. Formation of Uttaranchal State. 4. State of Uttar Pradesh and territorial divisions thereof. 5. Amendment of the First Schedule to the Constitution. 6. Saving powers of State Governments. PART III REPRESENTATION IN THE LEGISLATURES _The Council of States_ 7. Amendment of the Fourth Schedule to the Constitution. 8. Allocation of sitting members. _The House of the People_ 9. Representation in the House of the people. 10. Delimitation of Parliamentary and Assembly Constituencies. 11. Provisions as to sitting members. _The Legislative Assembly_ 12. Provisions as to Legislative Assemblies. 13. Allocation of sitting members. 14. Composition of provisional Legislative Assembly of Uttaranchal. 15. Duration of Legislative Assemblies. 16. Speaker and Deputy Speaker. 17. Rules of procedure. 1 ----- _The Legislative Council of Uttar Pradesh_ SECTIONS 18. Legislative Council of Uttar Pradesh. 19. Amendment of the Delimitation of Council Constituencies. 20. Provision as to certain sitting members. 21. Deputy Chairman. _Delimitation of constituencies_ 22. Delimitation of constituencies. 23. Power of Election Commission to maintain Delimitation Orders up-to-date. _Scheduled Castes and Scheduled Tribes_ 24. Amendment of the Scheduled Castes Order. 25. Amendment of the Scheduled Tribes Order. PART IV HIGH COURT 26. High Court of Uttaranchal. 27. Judges of Uttaranchal High Court. 28. Jurisdiction of Uttaranchal High Court. 29. Special provision relating to Bar Council and advocates. 30. Practice and procedure in Uttaranchal High Court. 31. Custody of seal of Uttaranchal High Court. 32. Form of writs and other processes. 33. Powers of Judges. 34. Procedure as to appeals to Supreme Court. 35. Transfer of proceedings from Allahabad High Court to Uttaranchal High Court. 36. Right to appear or to act in proceedings transferred to Uttaranchal High Court. 37. Interpretation. 38. Savings. PART V AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES 39. Authorisation of expenditure of Uttaranchal State. 40. Reports relating to accounts of Uttar Pradesh State. 41. Distribution of revenue. 2 ----- PART VI APPORTIONMENT OF ASSETS AND LIABILITIES SECTIONS 42. Application of Part. 43. Land and goods. 44. Treasury and bank balances. 45. Arrears of taxes. 46. Right to recover loans and advances. 47. Investments and credits in certain funds. 48. Assets and liabilities of State undertakings. 49. Public Debt. 50. Floating Debt. 51. Refund of taxes collected in excess. 52. Deposits, etc. 53. Provident fund. 54. Pensions. 55. Contracts. 56. Liability in respect of actionable wrong. 57. Liability as guarantor. 58. Items in suspense. 59. Residuary provision. 60. Apportionment of assets or liabilities by agreement. 61. Power of Central Government to order allocation or adjustment in certain cases. 62. Certain expenditure to be charged on Consolidated Fund. PART VII PROVISIONS AS TO CERTAIN CORPORATIONS 63. Provisions for Uttar Pradesh Power Corporation Limited, etc. 64. Continuance of arrangements in regard to generation and supply of electric power and supply of water. 65. Provisions as to Uttar Pradesh State Financial Corporation. 66. Provisions as to certain companies. 67. General provision as to statutory Corporations. 68. Temporary provisions as to continuance of certain existing road transport permits. 69. Special provisions relating to retrenchment compensation in certain cases. 70. Special provision as to income-tax. 71. Continuance of facilities in certain State institutions. PART VIII PROVISIONS AS TO SERVICES 72. Provisions relating to All-India Services. 3 ----- SECTIONS 73. Provisions relating to other services. 74. Other provisions relating to services. 75. Provisions as to continuance of officers in same post. 76. Advisory Committees. 77. Power of Central Government to give directions. 78. Provisions as to State Public Service Commission. PART IX MANAGEMENT AND DEVELOPMENT OF WATER REOURCES 79. Water Resources Development and its Management. 80. Constitution and functions of the Ganga Management Board. 81. Staff of the Management Board. 82. Jurisdiction of the Board. 83. Power of Board to make regulations. 84. Allocation of the water resources of the River Yamuna. PART X LEGAL AND MISCELLANEOUS PROVISIONS 85. Amendment of section 15 of Act 37 of 1956. 86. Territorial extent of laws. 87. Power to adapt laws. 88. Power to construe laws. 89. Power to name authorities, etc., for exercising statutory functions. 90. Legal proceedings. 91. Transfer of pending proceedings. 92. Right to pleaders to practise in certain cases. 93. Effect of provisions of the Act inconsistent with other laws. 94. Power to remove difficulties. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. THE FOURTH SCHEDULE. THE FIFTH SCHEDULE. THE SIXTH SCHEDULE. THE SEVENTH SCHEDULE. THE EIGHTH SCHEDULE. THE NINTH SCHEDULE. THE TENTH SCHEDULE. 4 ----- # THE UTTAR PRADESH REORGANISATION ACT, 2000 ACT NO. 29 OF 2000 [25th August, 2000.] # An Act to provide for the reorganisation of the existing State of Uttar Pradesh and for matters connected therewith. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— PART 1 PRELIMINARY **1. Short title.—This Act may be called the Uttar Pradesh Reorganisation Act, 2000.** **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day”[1] means the day which the Central Government may, by notification in the Official Gazette, appoint; (b) “article” means an article of the Constitution; (c) “assembly constituency”, “council constituency” and “parliamentary constituency” have the same meanings as in the Representation of the People Act, 1950 (43 of 1950); (d) “Election Commission” means the Election Commission appointed by the President under article 324; (e) “existing State of Uttar Pradesh” means the State of Uttar Pradesh as existing immediately before the appointed day; (f) “law” includes any enactment, ordinance, regulation, order, bye-law, rule, scheme, notification or other instrument having, immediately before the appointed day, the force of law in the whole or in any part of the existing State of Uttar Pradesh; (g) “notified order” means an order published in the Official Gazette; (h) “population ratio”, in relation to the States of Uttar Pradesh and Uttaranchal, means the ratio of 1321:70; (i) “sitting member”, in relation to either House of Parliament or of the Legislature of the existing State of Uttar Pradesh, means a person who immediately before the appointed day, is a member of that House; (j) “successor State”, in relation to the existing State of Uttar Pradesh, means the State of Uttar Pradesh or Uttaranchal; (k) “transferred territory” means the territory which on the appointed day is transferred from the existing State of Uttar Pradesh to the State of Uttaranchal; (l) “treasury” includes a sub-treasury; and (m) any reference to a district, tehsil or other territorial division of the existing State of Uttar Pradesh shall be construed as a reference to the area comprised within that territorial division on the appointed day. 1. 9th November, 2000, vide notification No. S.O. 950(E), dated 20th October, 2000, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 5 ----- PART II REORGANISATION OF THE STATE OF UTTAR PRADESH **3. Formation of Uttaranchal State.—On and from the appointed day, there shall be formed a new** State to be known as the State of Uttaranchal comprising the following territories of the existing State of Uttar Pradesh, namely:— Pauri Garhwal, Tehri Garhwal, Uttar Kashi, Chamoli, Dehradun, Nainital, Almora, Pithoragarh, Udham Singh Nagar, Bageshwar, Champawat, Rudraprayag and Hardwar districts, and thereupon the said territories shall cease to form part of the existing State of Uttar Pradesh. **4. State of Uttar Pradesh and territorial divisions thereof.—On and from the appointed day, the** State of Uttar Pradesh shall comprise the territories of the existing State of Uttar Pradesh other than those specified in section 3. **5. Amendment of the First Schedule to the Constitution.—On and from the appointed day, in the** First Schedule to the Constitution, under the heading “I. THE STATES”,— (a) in the paragraph relating to the territories of the State of Uttar Pradesh, after the words, brackets and figures “clause (a) of sub-section (1) of section 3 of the Bihar and Uttar Pradesh (Alteration of Boundaries) Act, 1968 (24 of 1968), the following shall be inserted, namely:— “and the territories specified in section 3 of the Uttar Pradesh Reorganisation Act, 2000”; (b) after entry 26, the following entry shall be inserted, namely:— “27. Uttaranchal: The territories specified in section 3 of the Uttar Pradesh Reorganisation Act, 2000.”. **6. Saving powers of State Governments.—Nothing in the foregoing provisions of this Part shall be** deemed to affect the power of the Government of Uttar Pradesh or Uttaranchal to alter, after the appointed day, the name, area or boundaries of any district or other territorial division in the State. PART III REPRESENTATION IN THE LEGISLATURES _The Council of States_ **7. Amendment of the Fourth Schedule to the Constitution.—On and from the appointed day, in** the Fourth Schedule to the Constitution, in the Table,— (a) entries 17 to 28 shall be renumbered as entries 18 to 29 respectively; (b) in entry 16, for the figures “34”, the figures “31” shall be substituted; (c) after entry 16, the following entry shall be inserted, namely:— “17.Uttaranchal ....................................................................3”. **8. Allocation of sitting members.—(1) On and from the appointed day, thirty-four sitting members** of the Council of States representing the existing State of Uttar Pradesh shall be deemed to have been elected to fill the seats allotted to the States of Uttar Pradesh and Uttaranchal, as specified in the First Schedule to this Act. (2) The term of office of such sitting members shall remain unaltered. _The House of the People_ **9. Representation in the House of the People.—On and from the appointed day, there shall be** allocated 80 seats to the successor State of Uttar Pradesh, and 5 to the successor State of Uttaranchal, in 6 ----- the House of the People, and the First Schedule to the Representation of the People Act, 1950 (43 of 1950) shall be deemed to be amended accordingly. **10. Delimitation of Parliamentary and Assembly Constituencies.—On and from the appointed** day, the Delimitation of Parliamentary and Assembly Constituencies Order, 1976, shall stand amended as directed in the Second Schedule to this Act. **11. Provision as to sitting members.—(1) Every sitting member of the House of the People** representing a constituency which, on the appointed day by virtue of the provisions of section 10, stands allotted, with or without alteration of boundaries, to the successor State of Uttar Pradesh or Uttaranchal, shall be deemed to have been elected to the House of the People by that constituency as so allotted. (2) The term of office of such sitting members shall remain unaltered. _The Legislative Assembly_ **12. Provisions as to Legislative Assemblies.—(1) The number of seats as on the appointed day in** the Legislative Assemblies of the States of Uttar Pradesh and Uttaranchal shall be four hundred and three and seventy respectively. (2) In the Second Schedule to the Representation of the People Act, 1950 (43 of 1950), under heading “I. States”— (a) entries 25 and 26 shall be renumbered as entries 26 and 27 respectively; (b) after entry 24, the following entry shall be inserted, namely:— 1 5 “25. Uttaranchal.......................…......... 70”; (c) in entry 26 as so renumbered, for the figures “425”, the figures “403” shall be substituted. **13. Allocation of sitting members.—(1) Every sitting member of the Legislative Assembly of the** existing State of Uttar Pradesh elected to fill a seat in that Assembly from a constituency which on the appointed day by virtue of the provisions of section 10 stands allotted, with or without alteration of boundaries, to the State of Uttaranchal shall, on and from that day, cease to be a member of the Legislative Assembly of Uttar Pradesh and shall be deemed to have been elected to fill a seat in the provisional Legislative Assembly of Uttaranchal from that constituency as so allotted. (2) All other sitting members of the Legislative Assembly of the existing State of Uttar Pradesh shall continue to be members of the Legislative Assembly of that State and any such sitting member representing a constituency the extent or the name and extent of which are altered by virtue of the provisions of section 10 shall be deemed to have been elected to the Legislative Assembly of Uttar Pradesh by that constituency as so altered. (3) Notwithstanding anything contained in any other law for the time being in force, the Legislative Assemblies of Uttar Pradesh and Uttaranchal shall be deemed to be duly constituted on the appointed day. (4) The sitting member of the Legislative Assembly of the existing State of Uttar Pradesh nominated to that Assembly under article 333 to represent the Anglo-Indian community shall be deemed to have been nominated to represent the said community in the Legislative Assembly of Uttar Pradesh under that article. **14. Composition of provisional Legislative Assembly of Uttaranchal.—(1) On and from the** appointed day and until the Legislative Assembly of the successor State of Uttaranchal has been duly constituted and summoned to meet for the first session under the provisions of the Constitution, a provisional Legislative Assembly of the State of Uttaranchal, consisting of the twenty-two sitting members of the Legislative Assembly and nine members of the Legislative Council of the existing State 7 ----- of Uttar Pradesh representing the Assembly constituencies or Council constituencies of the territories transferred by virtue of the provisions of section 3 shall be constituted. (2) The provisional Legislative Assembly of the State of Uttaranchal shall exercise all the powers and perform all the duties conferred by the provisions of the Constitution on the Legislative Assembly of that State. (3) The term of office of the members of the provisional Legislative Assembly of the State of Uttaranchal shall, unless the said Legislative Assembly is sooner dissolved, expire immediately before the first meeting of the Legislative Assembly of the State of Uttaranchal. **15. Duration of Legislative Assemblies.—The period of five years referred to in clause (1) of** article 172 shall, in the case of the Legislative Assembly of the State of Uttar Pradesh, be deemed to have commenced on the date on which it actually commenced in the case of the Legislative Assembly of the existing State of Uttar Pradesh. **16. Speaker and Deputy Speaker.—(1) The persons who immediately before the appointed day are** the Speaker and Deputy Speaker of the Legislative Assembly of the existing State of Uttar Pradesh shall continue to be the Speaker and Deputy Speaker respectively of that Assembly on and from that day. (2) As soon as may be after the appointed day, the provisional Legislative Assembly of the successor State of Uttaranchal shall choose two members of that Assembly to be respectively Speaker and Deputy Speaker thereof and until they are so chosen, the duties of the office of Speaker shall be performed by such member of the Assembly as the Governor may appoint for the purpose. **17. Rules of procedure.—The rules of procedure and conduct of business of the Legislative** Assembly of Uttar Pradesh as in force immediately before the appointed day shall, until rules are made under clause (1) of article 208, be the rules of procedure and conduct of business of the Legislative Assembly of Uttaranchal, subject to such modifications and adaptations as may be made therein by the Speaker thereof. _The Legislative Council of Uttar Pradesh_ **1[18. Legislative Council of Uttar Pradesh.—On and from the appointed day, there shall be one** hundred seats in the Legislative Council of Uttar Pradesh, and in the Third Schedule to the Representation of the People Act, 1950 (43 of 1950), for the existing entry 8, the following entry shall be substituted, namely:— “8. Uttar Pradesh.......................100 36 8 8 38 10”.] **19. Amendment of the Delimitation of Council Constituencies.—On and from the appointed day,** the Delimitation of the Council Constituencies (Uttar Pradesh) Order, 1951 shall stand amended as directed in the Third Schedule. **20. Provision as to certain sitting members.—(1) On and from the appointed day, the sitting** members of the Legislative Council of the existing State of Uttar Pradesh specified in the Fourth Schedule to this Act shall cease to be members of that Council and shall be deemed to be the members of the provisional Legislative Assembly. (2) On and from the appointed day, all sitting members of the Legislative Council of the existing State of Uttar Pradesh other than those referred to in sub-section (1) shall continue to be members of that Council. (3) The term of office of the members referred to in sub-section (2) shall remain unaltered. 1. Subs. by Act 7 of 2004, s. 2, for section 18 (w.e.f. 9-11-2000). 8 ----- **21. Deputy Chairman.—The person who immediately before the appointed day is the Deputy** Chairman of the Legislative Council of the existing State of Uttar Pradesh shall continue to be the Deputy Chairman, on and from that day of that Council. _Delimitation of constituencies_ **22. Delimitation of constituencies.—(1) For the purpose of giving effect to the provisions of** section 12, the Election Commission shall determine in the manner hereinafter provided— (a) the number of seats to be reserved for the Scheduled Castes and the Scheduled Tribes in the Legislative Assemblies of the States of Uttar Pradesh and Uttaranchal, respectively, having regard to the relevant provisions of the Constitution; (b) the assembly constituencies into which each State referred to in clause (a) shall be divided, the extent of each of such constituencies and in which of them seats shall be reserved for the Scheduled Castes or for the Scheduled Tribes; and (c) the adjustments in the boundaries and description of the extent of the parliamentary constituencies in each State referred to in clause (a) that may be necessary or expedient. (2) In determining the matters referred to in clauses (b) and (c) of sub-section (1), the Election Commission shall have regard to the following provisions, namely:— (a) all the constituencies shall be single-member constituencies; (b) all constituencies shall, as far as practicable, be geographically compact areas, and in delimiting them, regard shall be had to physical features, existing boundaries of administrative units, facilities of communication and conveniences to the public; and (c) constituencies in which seats are reserved for the Scheduled Castes and the Scheduled Tribes shall, as far as practicable, be located in areas where the proportion of their population to the total population is the largest. (3) The Election Commission shall, for the purpose of assisting it in the performance of its functions under sub-section (1), associate with itself as associate members, five persons as the Central Government may by order specify, being persons who are the members of the Legislative Assembly of the State or of the House of the People representing the State: Provided that none of the associate members shall have a right to vote or to sign any decision of the Election Commission. (4) If, owing to death or resignation, the office of an associate member falls vacant, it shall be filled as far as practicable, in accordance with the provisions of sub-section (3). (5) The Election Commission shall— (a) publish its proposals for the delimitation of constituencies together with the dissenting proposals, if any, of any associate member who desires publication thereof in the Official Gazette and in such other manner as the Commission may consider fit, together with a notice inviting objections and suggestions in relation to the proposals and specifying a date on or after which the proposals will be further considered by it; (b) consider all objections and suggestions which may have been received by it before the date so specified; and (c) after considering all objections and suggestions which may have been received by it before the date so specified, determine by one or more orders the delimitation of constituencies and cause such order or orders to be published in the Official Gazette; and upon such publication, the order or orders shall have the full force of law and shall not be called in question in any court. 9 ----- (6) As soon as may be after such publication, every such order relating to assembly constituencies shall be laid before the Legislative Assembly of the concerned State. **23. Power of Election Commission to maintain Delimitation Orders up-to-date.—(1) The** Election Commission may, from time to time by notification in the Official Gazette,— (a) correct any printing mistakes in any order made under section 22 or any error arising therein from inadvertent slip or omission; and (b) where the boundaries or name of any territorial division mentioned in any such order or orders is or are altered, make such amendments as appear to it to be necessary or expedient for bringing such order up-to-date. (2) Every notification under this section relating to an assembly constituency shall be laid, as soon as may be after it is issued, before the concerned Legislative Assembly. _Scheduled castes and Scheduled Tribes_ **24. Amendment of the Scheduled Castes Order.—On and from the appointed day, the Constitution** (Scheduled Castes) Order, 1950, shall stand amended as directed in the Fifth Schedule to this Act. **25. Amendment of the Scheduled Tribes Order.—On and from the appointed day, the Constitution** (Scheduled Tribes) Order, 1950, shall stand amended as directed in the Sixth Schedule to this Act. PART IV HIGH COURT **26. High Court of Uttaranchal.—(1) As from the appointed day, there shall be a separate High** Court for the State of Uttaranchal (hereinafter referred to as “the High Court of Uttaranchal”) and the High Court of Judicature at Allahabad shall become the High Court for the State of Uttar Pradesh (hereinafter referred to as the High Court at Allahabad). (2) The principal seat of the High Court of Uttaranchal shall be at such place as the President may, by notified order, appoint. (3) Notwithstanding anything contained in sub-section (2), the Judges and division courts of the High Court of Uttaranchal may sit at such other place or places in the State of Uttaranchal other than its principal seat as the Chief Justice may, with the approval of the Governor of Uttaranchal, appoint. **27. Judges of Uttaranchal High Court.—(1) Such of the Judges of the High Court at Allahabad** holding office immediately before the appointed day as may be determined by the President shall on that day cease to be Judges of the High Court at Allahabad and become, Judges of the High Court of Uttaranchal. (2) The persons who by virtue of sub-section (1) become Judges of the High Court of Uttaranchal shall, except in the case where any such person is appointed to be the Chief Justice of that High Court, rank in that Court according to the priority of their respective appointments as Judges of the High Court at Allahabad. **28. Jurisdiction of Uttaranchal High Court.—The High Court of Uttaranchal shall have, in respect** of any part of the territories included in the State of Uttaranchal, all such jurisdiction, powers and authority as, under the law in force immediately before the appointed day, are exercisable in respect of that part of the said territories by the High Court at Allahabad. **29. Special provision relating to Bar Council and advocates.—(1) On and from the appointed day,** in the Advocates Act, 1961 (25 of 1961), in section 3, in sub-section (1), in clause (a), for the words “and Uttar Pradesh”, the words “Uttar Pradesh and Uttaranchal” shall be substituted. (2) Any person who immediately before the appointed day is an advocate on the roll of the Bar Council of the existing State of Uttar Pradesh may give his option in writing, within one year from the 10 ----- appointed day to the Bar Council of such existing State, to transfer his name on the roll of the Bar Council of Uttaranchal and notwithstanding anything contained in the Advocates Act, 1961 (25 of 1961) and the rules made thereunder, on such option so given his name shall be deemed to have been transferred on the roll of the Bar Council of Uttaranchal with effect from the date of the option so given for the purposes of the said Act, and the rules made thereunder. (3) The persons other than the advocates who are entitled immediately before the appointed day, to practise in the High Court at Allahabad or any subordinate court thereof shall, on and after the appointed day, be recognised as such persons entitled also to practise in the High Court of Uttaranchal or any subordinate court thereof, as the case may be. (4) The right of audience in the High Court of Uttaranchal shall be regulated in accordance with the like principles as immediately before the appointed day are in force with respect to the right of audience in the High Court at Allahabad. **30. Practice and procedure in Uttaranchal High Court.—Subject to the provisions of this Part, the** law in force immediately before the appointed day with respect to practice and procedure in the High Court at Allahabad shall, with the necessary modifications, apply in relation to the High Court of Uttaranchal, and accordingly, the High Court of Uttaranchal shall have all such powers to make rules and orders with respect to practice and procedure as are immediately before the appointed day exercisable by the High Court at Allahabad: Provided that any rules or orders which are in force immediately before the appointed day with respect to practice and procedure in the High Court at Allahabad shall, until varied or revoked by rules or orders made by the High Court of Uttaranchal, apply with the necessary modifications in relation to practice and procedure in the High Court of Uttaranchal as if made by that Court. **31. Custody of seal of Uttaranchal High Court.—The law in force immediately before the** appointed day with respect to the custody of the seal of the High Court at Allahabad shall, with the necessary modifications, apply with respect to the custody of the seal of the High Court of Uttaranchal. **32. Form of writs and other processes.—The law in force immediately before the appointed day** with respect to the form of writs and other processes used, issued or awarded by the High Court at Allahabad shall, with the necessary modifications, apply with respect to the form of writs and other processes used, issued or awarded by the High Court of Uttaranchal. **33. Powers of Judges.—The law in force immediately before the appointed day relating to the** powers of the Chief Justice, single Judges and division courts of the High Court at Allahabad and with respect to all matters ancillary to the exercise of those powers shall, with the necessary modifications, apply in relation to the High Court of Uttaranchal. **34. Procedure as to appeals to Supreme Court.—The law in force immediately before the** appointed day relating to appeals to the Supreme Court from the High Court at Allahabad and the Judges and division courts thereof shall, with the necessary modifications, apply in relation to the High Court of Uttaranchal. **35. Transfer of proceedings from Allahabad High Court to Uttaranchal High Court.—(1)** Except as hereinafter provided, the High Court at Allahabad shall, as from the appointed day, have no jurisdiction in respect of the transferred territory. (2) Such proceedings pending in the High Court at Allahabad immediately before the appointed day as are certified, whether before or after that day, by the Chief Justice of that High Court, having regard to the place of accrual of the cause of action and other circumstances, to be proceedings which ought to be heard and decided by the High Court of Uttaranchal shall, as soon as may be after such certification, be transferred to the High Court of Uttaranchal. 11 ----- (3) Notwithstanding anything contained in sub-sections (1) and (2) of this section or in section 28, but save as hereinafter provided, the High Court at Allahabad shall have, and the High Court of Uttaranchal shall not have, jurisdiction to entertain, hear or dispose of appeals, applications for leave to the Supreme Court, applications for review and other proceedings where any such proceedings seek any relief in respect of any order passed by the High Court at Allahabad before the appointed day: Provided that if after any such proceedings have been entertained by the High Court at Allahabad, it appears to the Chief Justice of that High Court that they ought to be transferred to the High Court of Uttaranchal, he shall order that they shall be so transferred, and such proceedings shall thereupon be transferred accordingly. (4) Any order made by the High Court at Allahabad— (a) before the appointed day, in any proceedings transferred to the High Court of Uttaranchal by virtue of sub-section (2), or (b) in any proceedings with respect to which the High Court at Allahabad retains jurisdiction by virtue of sub-section (3), shall for all purposes have effect, not only as an order of the High Court at Allahabad, but also as an order made by the High Court of Uttaranchal. **36. Right to appear or to act in proceedings transferred to Uttaranchal High Court.—Any** person who, immediately before the appointed day, is an advocate entitled to practise or any other persons entitled to practise in the High Court at Allahabad and was authorised to appear in any proceedings transferred from that High Court to the High Court of Uttaranchal under section 35, shall have the right to appear in the High Court of Uttaranchal in relation to those proceedings. **37. Interpretation.—For the purposes of section 35—** (a) proceedings shall be deemed to be pending in a court until that court has disposed of all issues between the parties, including any issues with respect to the taxation of the costs of the proceedings and shall include appeals, applications for leave to appeal to the Supreme Court, applications for review, petitions for revision and petitions for writs; and (b) references to a High Court shall be construed as including references to a Judge or division court thereof, and references to an order made by a court or a Judge shall be construed as including references to a sentence, judgment or decree passed or made by that court or Judge. **38. Savings.—Nothing in this Part shall affect the application to the High Court of Uttaranchal of any** provisions of the Constitution, and this Part shall have effect subject to any provision that may be made on or after the appointed day with respect to that High Court by any Legislature or other authority having power to make such provision. PART V AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES **39. Authorisation of expenditure of Uttaranchal State.—The Governor of Uttar Pradesh may, at** any time before the appointed day, authorise such expenditure from the Consolidated Fund of the State of Uttaranchal as he deems necessary for any period not more than six months beginning with the appointed day pending the sanction of such expenditure by the Legislative Assembly of the State of Uttaranchal: Provided that the Governor of Uttaranchal may, after the appointed day, authorise such further expenditure as he deems necessary from the Consolidated Fund of the State of Uttaranchal for any period not extending beyond the said period of six months. **40. Reports relating to accounts of Uttar Pradesh State.—(1) The reports of the Comptroller and** Auditor-General of India referred to in clause (2) of article 151 relating to the accounts of the existing 12 ----- State of Uttar Pradesh in respect of any period prior to the appointed day shall be submitted to the Governor of each of the successor States of Uttar Pradesh and Uttaranchal who shall cause them to be laid before the Legislature of that State. (2) The President may by order— (a) declare any expenditure incurred out of the Consolidated Fund of Uttar Pradesh on any service in respect of any period prior to the appointed day during the financial year or in respect of any earlier financial year in excess of the amount granted for that service and for that year as disclosed in the reports referred to in sub-section (1) to have been duly authorised; and (b) provide for any action to be taken on any matter arising out of the said reports. **41. Distribution of revenue.—The President shall, by order, determine the share of the States of** Uttar Pradesh and Uttaranchal in its total amount payable to the existing State of Uttar Pradesh on the recommendation of the Finance Commission constituted under article 280 in such manner as he thinks fit. PART VI APPORTIONMENT OF ASSETS AND LIABILITIES **42. Application of Part.—(1) The provisions of this Part shall apply in relation to the apportionment** of the assets and liabilities of the existing State of Uttar Pradesh immediately before the appointed day. (2) The successor States shall be entitled to receive benefits arising out of the decisions taken by the predecessor State and the successor States shall be liable to bear the financial liabilities arising out of the decisions taken by the existing State of Uttar Pradesh. (3) The apportionment of assets and liabilities would be subject to such financial adjustment as may be necessary to secure just, reasonable and equitable apportionment of the assets and liabilities amongst the successor States. (4) Any dispute regarding the amount of financial assets and liabilities shall be settled through mutual agreement, failing which by order by the Central Government on the advice of the Comptroller and Auditor-General of India. **43. Land and goods.—(1) Subject to the other provisions of this Part, all land and all stores, articles** and other goods belonging to the existing State of Uttar Pradesh shall,— (a) if within the transferred territory, pass to the State of Uttaranchal; or (b) in any other case, remain the property of the State of Uttar Pradesh: Provided that where the Central Government is of opinion that any goods or class of goods should be distributed among the States of Uttar Pradesh and Uttaranchal, otherwise than according to the situation of the goods, the Central Government may issue such directions as it thinks fit for a just and equitable distribution of the goods and the goods shall pass to the successor States accordingly: Provided further that in case of any dispute relating to the distribution of any goods or class of goods under this sub-section, the Central Government shall endeavour to settle such dispute through mutual agreement arrived at between the Governments of the successor States for that purpose, failing which the Central Government may, on request by any of the Governments of the successor States, after consulting both the Governments of the successor States, issue such direction as it may deem fit for the distribution of such goods or class of goods, as the case may be, under this sub-section. (2) Stores held for specific purposes, such as use or utilisation in particular institutions, workshops or undertakings or on particular works under construction, shall pass to the successor States in whose territories such institutions, workshops, undertakings or works are located. 13 ----- (3) Stores relating to the Secretariat and offices of Heads of Departments having jurisdiction over the whole of the existing State of Uttar Pradesh shall be divided between the successor States in accordance with such directions as the Central Government may, after consultation with the Government of each successor States, think fit to issue for a just and equitable distribution of such stores. (4) Any other unissued stores of any class in the existing State of Uttar Pradesh shall be divided between the successor States in proportion to the total stores of that class purchased in the period of three years prior to the appointed day, for the territories of the existing State of Uttar Pradesh included respectively in each of the successor States: Provided that where such proportion cannot be ascertained in respect of any class of stores or where the value of any class of such stores does not exceed rupees ten thousand, that class of stores shall be divided between the successor States according to the population ratio. (5) In this section, the expression “land” includes immovable property of every kind and any rights in or over such property, and the expression “goods” does not include coins, bank notes and currency notes. **44. Treasury and bank balances.—The total of the cash balances in all treasuries of the State of** Uttar Pradesh and the credit balances of the State with the Reserve Bank of India, the State Bank of India or any other bank immediately before the appointed day shall be divided between the States of Uttar Pradesh and Uttaranchal according to the population ratio: Provided that for the purposes of such division, there shall be no transfer of cash balances from any treasury to any other treasury and the apportionment shall be effected by adjusting the credit balances of the two States in the books of the Reserve Bank of India on the appointed day: Provided further that if the State of Uttaranchal has no account on the appointed day with the Reserve Bank of India, the adjustment shall be made in such manner as the Central Government may, by order, direct. **45. Arrears of taxes.—The right to recover arrears of the tax or duty on property, including arrears** of land revenue, shall belong to the successor State in which the property is situated, and the right to recover arrears of any other tax or duty shall belong to the successor State in whose territories the place of assessment of that tax or duty is included on the appointed day. **46. Right to recover loans and advances.—(1) The right of the existing State of Uttar Pradesh to** recover any loans or advances made before the appointed day to any local body, society, agriculturist or other person in an area within that State shall belong to the successor State in which that area is included on that day. (2) The right of the existing State of Uttar Pradesh to recover any loans or advances made before the appointed day to any person or institution outside that State shall belong to the State of Uttar Pradesh: Provided that any sum recovered in respect of any such loan or advance shall be divided between the States of Uttar Pradesh and Uttaranchal according to the population ratio. **47. Investments and credits in certain funds.—(1) The securities held in respect of the investments** made from Cash Balances Investment Account or from any Fund in the Public Account of the existing State of Uttar Pradesh as specified in the Seventh Schedule shall be apportioned in the ratio of population of the successor States: Provided that the securities held in investments made from the Calamity Relief Fund of the existing State of Uttar Pradesh shall be divided in the ratio of the area of the territories occupied by the successor States: Provided further that the balance in the Reserve Funds in the Public Account of Uttar Pradesh created wholly out of appropriations from the Consolidated Fund of the existing State of Uttar Pradesh, to the 14 ----- extent the balances have not been invested outside Government account, shall not be carried forward to similar Reserve Funds in the Public Account of the successor States. (2) The investments of the existing State of Uttar Pradesh immediately before the appointed day in any special fund, the objects of which are confined to a local area, shall belong to the State in which that area is included on the appointed day. (3) The investments of the existing State of Uttar Pradesh immediately before the appointed day in any private, commercial or industrial undertaking, in so far as such investments have not been made or are deemed not to have been made from the Cash Balances Investment Account, shall pass to the State in which the principal seat of business of the undertaking is located. (4) Where any body corporate constituted under a Central Act, State Act or Provincial Act for the existing State of Uttar Pradesh or any part thereof has, by virtue of the provisions of Part II, become an inter-State body corporate, the investments in, or loans or advances to, any such body corporate by the existing State of Uttar Pradesh made before the appointed day shall, save as otherwise expressly provided by or under this Act, be divided between the States of Uttar Pradesh and Uttaranchal in the same proportion in which the assets of the body corporate are divided under the provisions of this Part. **48. Assets and liabilities of State undertakings.—(1) The assets and liabilities relating to any** commercial or industrial undertaking of the State of Uttar Pradesh shall pass to the State in which the undertaking is located. (2) Where a depreciation reserve fund is maintained by the State of Uttar Pradesh for any such commercial or industrial undertaking, the securities held in respect of investments made from that fund shall pass to the State in which the undertaking is located. **49. Public Debt.—(1) All liabilities on account of Public Debt and Public Account of the existing** State of Uttar Pradesh outstanding immediately before the appointed day shall be apportioned in the ratio of population of the successor States unless a different mode of apportionment is provided under the provisions of this Act. (2) The individual items of liabilities to be allocated to the successor States and the amount of contribution required to be made by one successor State to another shall be such as may be ordered by the Central Government in consultation with the Comptroller and Auditor-General of India: Provided that till such orders are issued, the liabilities on account of Public Debt and Public Account of the existing State of Uttar Pradesh shall continue to be the liabilities of the successor State of Uttar Pradesh. (3) The liability on account of loan raised from any source and re-lent by the existing State of Uttar Pradesh to such entities as may be specified by the Central Government and whose area of operation is confined to either of the successor States shall devolve on the respective States as specified in sub-section (4). (4) The public debt of the existing State of Uttar Pradesh attributable to loan taken from any source for the express purpose of re-lending the same to a specific institution and outstanding immediately before the appointed day shall,— (a) if re-lent to any local body, body corporate or other institution in any local area, be the debt of the State in which the local area is included on the appointed day; or (b) if re-lent to the Uttar Pradesh Power Corporation Limited, the Uttar Pradesh Jal Vidyut Nigam Limited, the Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited, the Uttar Pradesh State Road Transport Corporation, or the Uttar Pradesh Housing Board or any other institution which becomes an inter-State institution on the appointed day, be divided between the States of Uttar Pradesh and 15 ----- Uttaranchal in the same proportion in which the assets of such body corporate or institution are divided under the provisions of Part VII. (5) Where a sinking fund or a depreciation fund is maintained by the existing State of Uttar Pradesh for repayment of any loan raised by it, the securities held in respect of investments made from that fund shall be divided between the successor States of Uttar Pradesh and Uttaranchal in the same proportion in which the total public debt is divided between the two States under this section. (6) In this section, the expression “Government security” means a security created and issued by a State Government for the purpose of raising a public loan and having any of the forms specified in, or prescribed under, clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944). **50. Floating Debt.—The liability of the State of Uttar Pradesh in respect of any floating loan to** provide short-term finance to any commercial undertaking shall be the liability of the State in whose territories the undertaking is located. **51. Refund of taxes collected in excess.—The liability of the existing State of Uttar Pradesh to** refund any tax or duty on property, including land revenue, collected in excess shall be the liability of the successor State in whose territories the property is situated, and the liability of the existing State of Uttar Pradesh to refund any other tax or duty collected in excess shall be the liability of the successor State in whose territories the place of assessment of that tax or duty is included. **52. Deposits, etc.—(1) The liability of the existing State of Uttar Pradesh in respect of any civil** deposit or local fund deposit shall, as from the appointed day, be the liability of the State in whose area the deposit has been made. (2) The liability of the existing State of Uttar Pradesh in respect of any charitable or other endowment shall, as from the appointed day, be the liability of the State in whose area the institution entitled to the benefit of the endowment is located or of the State to which the objects of the endowment, under the terms thereof, are confined. **53. Provident fund.—The liability of the existing State of Uttar Pradesh in respect of the provident** fund account of a Government servant in service on the appointed day shall, as from that day, be the liability of the State to which that Government servant is permanently allotted. **54. Pensions.—The liability of the existing State of Uttar Pradesh in respect of pensions shall pass to,** or be apportioned between, the successor States of Uttar Pradesh and Uttaranchal in accordance with the provisions contained in the Eighth Schedule to this Act. **55. Contracts.—(1) Where, before the appointed day, the existing State of Uttar Pradesh has made** any contract in the exercise of its executive power for any purposes of the State, that contract shall be deemed to have been made in the exercise of the executive power— (a) if the purposes of the contract are, on and from the appointed day, exclusive purposes of either of the successor States of Uttar Pradesh and Uttaranchal; and (b) in any other case, of the State of Uttar Pradesh, and all rights and liabilities which have accrued, or may accrue under any such contract shall, to the extent to which they would have been rights or liabilities of the existing State of Uttar Pradesh, be rights or liabilities of the State of Uttaranchal or the State of Uttar Pradesh, as the case may be: Provided that in any such case as is referred to in clause (b), the initial allocation of rights and liabilities made by this sub-section shall be subject to such financial adjustment as may be agreed upon between the successor States of Uttar Pradesh and Uttaranchal or in default of such agreement, as the Central Government may, by order, direct. 16 ----- (2) For the purposes of this section, there shall be deemed to be included in the liabilities which have accrued or may accrue under any contract— (a) any liability to satisfy an order or award made by any court or other tribunal in proceedings relating to the contract; and (b) any liability in respect of expenses incurred in or in connection with any such proceedings. (3) This section shall have effect subject to the other provisions of this Part relating to the apportionment of liabilities in respect of loans, guarantees and other financial obligation; and bank balances and securities shall, notwithstanding that they partake of the nature of contractual rights, be dealt with under those provisions. **56. Liability in respect of actionable wrong.—Where, immediately before the appointed day, the** existing State of Uttar Pradesh is subject to any liability in respect of any actionable wrong other than breach of contract, that liability shall,— (a) if the cause of action arose wholly within the territories which, as from that day, are the territories of either of the successor States of Uttar Pradesh or Uttaranchal, be a liability of that successor State; and (b) in any other case, be initially a liability of the State of Uttar Pradesh, but subject to such financial adjustment as may be agreed upon between the States of Uttar Pradesh and Uttaranchal or, in default of such agreement, as the Central Government may, by order, direct. **57. Liability as guarantor.—Where, immediately before the appointed day, the existing State of** Uttar Pradesh is liable as guarantor in respect of any liability of a registered co-operative society or other person, that liability of the existing State of Uttar Pradesh shall,— (a) if the area of operations of such society or persons is limited to the territories which, as from that day, are the territories of either of the States of Uttar Pradesh or Uttaranchal, be a liability of that successor State; and (b) in any other case, be initially a liability of the State of Uttar Pradesh, subject to such financial adjustment as may be agreed upon between the States of Uttar Pradesh and Uttaranchal or, in default of such agreements, as the Central Government may, by order, direct. **58. Items in suspense.—If any item in suspense is ultimately found to affect an asset or liability of** the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance with that provision. **59. Residuary provision.—The benefit or burden of any asset or liability of the existing State of** Uttar Pradesh not dealt with in the foregoing provisions of this Part shall pass to the State of Uttar Pradesh in the first instance, subject to such financial adjustment as may be agreed upon between the States of Uttar Pradesh and Uttaranchal or, in default of such agreement, as the Central Government may, by order, direct. **60. Apportionment of assets or liabilities by agreement.—Where the successor States of Uttar** Pradesh and Uttaranchal agree that the benefit or burden of any particular asset or liability should be apportioned between them in a manner other than that provided for in the foregoing provisions of this Part, notwithstanding anything contained therein, the benefit or burden of that asset or liability shall be apportioned in the manner agreed upon. **61. Power of Central Government to order allocation or adjustment in certain cases.—Where,** by virtue of any of the provisions of this Part, any of the successor States of Uttar Pradesh and Uttaranchal becomes entitled to any property or obtains any benefits or becomes subject to any liability, and the Central Government is of opinion, on a reference made within a period of three years from the appointed day by either of the States, that it is just and equitable that property or those benefits should be 17 ----- transferred to, or shared with, the other successor State, or that a contribution towards that liability should be made by the other successor State, the said property or benefits shall be allocated in such manner between the two States, or the other State shall make to the State subject to the liability such contribution in respect thereof, as the Central Government may, after consultation with the two State Governments, by order, determine. **62. Certain expenditure to be charged on Consolidated Fund.—All sums payable either by the** State of Uttar Pradesh or by the State of Uttaranchal to the other States or by the Central Government to either of those States, by virtue of the provisions of this Act, shall be charged on the Consolidated Fund of the State by which such sums are payable or, as the case may be, the Consolidated Fund of India. PART VII PROVISIONS AS TO CERTAIN CORPORATIONS **63. Provisions for Power Corporation Limited, etc.—(1) The following bodies corporate** constituted for the existing State of Uttar Pradesh, namely:— (a) the Uttar Pradesh Power Corporation Limited, the Uttar Pradesh Jal Vidyut Nigam Limited and the Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited; (b) the Uttar Pradesh Electricity Regulatory Commission; and (c) the State Warehousing Corporation established under the Warehousing Corporations Act, 1962 (58 of 1962), shall, on and from the appointed day, continue to function in those areas in respect of which they were functioning immediately before that day, subject to the provisions of this section and to such directions as may, from time to time, be issued by the Central Government. (2) Any directions issued by the Central Government under sub-section (1) in respect of the Power Corporation, Commission or Warehousing Corporation shall include a direction that the Act under which the Power Corporation, Commission or Warehousing Corporation was constituted shall, in its application to that Power Corporation, Commission or Warehousing Corporation, have effect subject to such exceptions and modifications as the Central Government thinks fit. (3) The Power Corporation, Commission or Warehousing Corporation referred to in sub-section (1) shall cease to function as from, and shall be deemed to be dissolved on such date as the Central Government may, by order, appoint; and upon such dissolution, its assets, rights and liabilities shall be apportioned between the successor States of Uttar Pradesh and Uttaranchal in such manner as may be agreed upon between them within one year of the dissolution of the Power Corporation, Commission or Warehousing Corporation, as the case may be, or if no agreement is reached, in such manner as the Central Government may, by order, determine: Provided that any liabilities of any of the said Power Corporations referred to in clause (a) of sub-section (1) relating to the unpaid dues of the coal supplied to the Power Corporation by any public sector coal company shall be provisionally apportioned between the corresponding Power Corporations constituted respectively in the successor States of the existing State of Uttar Pradesh or after the date appointed for the dissolution of the Power Corporation under this sub-section in such manner as may be agreed upon between the Governments of the successor States within one month of such dissolution or if no agreement is reached, in such manner as the Central Government may by order determine subject to reconciliation and finalisation of the liabilities which shall be completed within three months from the date of such dissolution by the mutual agreement between the successor States or failing such agreement by the direction of the Central Government: Provided further that an interest at the rate of two per cent. higher than the cash credit interest shall be paid on outstanding unpaid dues of the coal supplied to the Electricity Corporation by the public sector 18 ----- coal company till the liquidation of such dues by the concerned State Power Corporation constituted in the successor States on or after the date appointed for the dissolution of the Power Corporation under this sub-section. (4) Nothing in the preceding provisions of this section shall be construed as preventing the Government of the State of Uttar Pradesh or, as the case may be, the Government of the State of Uttaranchal from constituting, at any time on or after the appointed day, a State Power Corporation, an Electricity Regulatory Commission or a State Warehousing Corporation for the State under the provisions of this Act relating to such Power Corporation, Commission or Warehousing Corporation; and if such a Power Corporation, Commission or Warehousing Corporation is so constituted in either of the States before the dissolution of the Power Corporation, Commission or Warehousing Corporation referred to in sub-section (1),— (a) provision may be made by order of the Central Government enabling the new Power Corporation, new Commission or the new Warehousing Corporation to take over from the existing Power Corporation, Commission or Warehousing Corporation all or any of its undertakings, assets, rights and liabilities in that State, and (b) upon the dissolution of the existing Power Corporation, Commission or Warehousing Corporation,— (i) any assets, rights and liabilities which would otherwise have passed to that State by or under the provisions of sub-section (3) shall pass to the new Board, new Commission or the new Warehousing Corporation instead of to that State; (ii) any employee who would otherwise have been transferred to or re-employed by that State under sub-section (3), read with clause (i) of sub-section (5), shall be transferred to or re-employed by the new Power Corporation, new Commission or the new Warehousing Corporation instead of to or by that State. (5) An agreement entered into between the successor States under sub-section (3) and an order made by the Central Government under that sub-section or under clause (a) of sub-section (4) may provide for the transfer or re-employment of any employee of the Power Corporation, Commission or Warehousing Corporation referred to in sub-section (1),— (i) to or by the successor States, in the case of an agreement under sub-section (2) or an order made under that sub-section; (ii) to or by the new Power Corporation, new Commission or the new Warehousing Corporation constituted under sub-section (4), in the case of an order made under clause (a) of that sub-section, and, subject to the provisions of section 68, also for the terms and conditions of service applicable to such employees after such transfer or re-employment. **64. Continuance of arrangements in regard to generation and supply of electric power and** **supply of water.—If it appears to the Central Government that the arrangement in regard to the** generation or supply of electric power or the supply of water for any area or in regard to the execution of any project for such generation or supply has been or is likely to be modified to the disadvantage of that area by reason of the fact that it is, by virtue of the provisions of Part II, outside the State in which the power stations and other installations for the generation and supply of such power, or the catchment area, reservoirs and other works for the supply of water, as the case may be, are located, the Central Government may, after consultation with the Government of each successor States wherever necessary, give such directions as it deems proper to the State Government or other authority concerned for the maintenance, so far as practicable, of the previous arrangement. **65. Provisions as to Uttar Pradesh State Financial Corporation.—(1) The Uttar Pradesh State** Financial Corporation established under the State Financial Corporations Act, 1951 (63 of 1951) shall, on 19 ----- and from the appointed day, continue to function in those areas in respect of which it was functioning immediately before that day, subject to the provisions of this section and to such directions as may, from time to time, be issued by the Central Government. (2) Any directions issued by the Central Government under sub-section (1) in respect of the Corporation may include a direction that the said Act, in its application to the Corporation, shall have effect subject to such exceptions and modifications as may be specified in the direction. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Board of Directors of the Corporation may, with the previous approval of the Central Government and shall, if so required by the Central Government, convene at any time after the appointed day a meeting for the consideration of a scheme for the reconstitution or reorganisation or dissolution, as the case may be, of the Corporation, including proposals regarding the formation of new Corporations, and the transfer thereto of the assets, rights and liabilities of the existing Corporation, and if such a scheme is approved at the general meeting by a resolution passed by a majority of the shareholders present and voting, the scheme shall be submitted to the Central Government for its sanction. (4) If the scheme is sanctioned by the Central Government either without modifications or with modifications which are approved at a general meeting, the Central Government shall certify the scheme, and upon such certification, the scheme shall, notwithstanding anything to the contrary contained in any other law for the time being in force, be binding on the Corporations affected by the scheme as well as the shareholders and creditors thereof. (5) If the scheme is not so approved or sanctioned, the Central Government may refer the scheme to such Judge of the High Court of Uttar Pradesh and Uttaranchal as may be nominated in this behalf by the Chief Justice thereof, and the decision of the Judge in regard to the scheme shall be final and shall be binding on the Corporations affected by the scheme as well as the shareholders and creditors thereof. (6) Nothing in the preceding provisions of this section shall be construed as preventing the Government of the States of Uttar Pradesh and Uttaranchal from constituting, at any time on or after the appointed day, a State Financial Corporation for that State under the State Financial Corporations Act, 1951 (63 of 1951). **66. Provisions as to certain companies.—(1) Notwithstanding anything contained in the foregoing** provisions of this Part, each of the companies specified in the Ninth Schedule to this Act shall, on and from the appointed day and until otherwise provided for in any law, or in any agreement among the successor States, or in any direction issued by the Central Government, continue to function in the areas in which it was functioning immediately before that day; and the Central Government may from time to time issue such directions in relation to such functioning as it may deem fit, notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law. (2) Any directions issued under sub-section (1) in respect of a company referred to in that sub-section, may include directions— (a) regarding the division of the interests and shares of existing State of Uttar Pradesh in the Company among the successor States; (b) requiring the reconstitution of the Board of Directors of the Company so as to give adequate representation to all the successor States. **67. General provision as to statutory Corporations.—(1) Save as otherwise expressly provided by** the foregoing provisions of this Part, where any body corporate constituted under a Central Act, State Act or Provincial Act for the existing State of Uttar Pradesh or any part thereof has, by virtue of the provisions of Part II, become an inter-State body corporate, then, the body corporate shall, on and from the appointed day, continue to function and operate in those areas in respect of which it was functioning and operating 20 ----- immediately before that day, subject to such directions as may from time to time be issued by the Central Government, until other provision is made by law in respect of the said body corporate. (2) Any directions issued by the Central Government under sub-section (1) in respect of any such body corporate shall include a direction that any law by which the said body corporate is governed shall, in its application to that body corporate, have effect subject to such exceptions and modifications as may be specified in the direction. **68. Temporary provisions as to continuance of certain existing road transport permits.—(1)** Notwithstanding anything contained in section 89 of the Motor Vehicles Act, 1988 (59 of 1988), a permit granted by the State Transport Authority of the existing State of Uttar Pradesh or any Regional Transport Authority in that State shall, if such permit was, immediately before the appointed day, valid and effective in any area in the transferred territory, be deemed to continue to be valid and effective in that area after that day subject to the provisions of that Act as for the time being in force in that area; and it shall not be necessary for any such permit to be countersigned by the State Transport Authority of Uttaranchal or any Regional Transport Authority therein for the purpose of validating it for use in such area: Provided that the Central Government may, after consultation with the successor State Government or Governments concerned add to amend or vary the conditions attached to the permit by the Authority by which the permit was granted. (2) No tolls, entrance fees or other charges of a like nature shall be levied after the appointed day in respect of any transport vehicle for its operations in any of the successor States under any such permit, if such vehicle was, immediately before that day, exempt from the payment of any such toll, entrance fees or other charges for its operations in the transferred territory: Provided that the Central Government may, after consultation with the State Government or Governments concerned, authorise the levy of any such toll, entrance fees or other charges, as the case may be: Provided further that the provisions of this sub-section shall not be applicable where any such tolls, entrance fees or other charges of a like nature is leviable for the use of any road or bridge which is constructed or developed for commercial purpose by the State Government, an undertaking of the State Government, a joint undertaking in which the State Government is a shareholder or a private sector. **69. Special provisions relating to retrenchment compensation in certain cases.—Where on** account of the reorganisation of the existing State of Uttar Pradesh under this Act, any body corporate constituted under a Central Act, State Act or Provincial Act, any co-operative society registered under any law relating to co-operative societies or any commercial or industrial undertaking of that State is reconstituted or reorganised in any manner whatsoever or is amalgamated with any other body corporate, co-operative society or undertaking, or is dissolved, and in consequence of such reconstitution, reorganisation, amalgamation or dissolution, any workman employed by such body corporate or in any such co-operative society or undertaking, is transferred to, or re-employed by, any other body corporate, or in any other co-operative society or undertaking, then, notwithstanding anything contained in section 25F or section 25FF or section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947), such transfer or re-employment shall not entitle him to any compensation under that section: Provided that— (a) the terms and conditions of service applicable to the workman after such transfer or re-employment are not less favourable to the workman than those applicable to him immediately before the transfer or re-employment; (b) the employer in relation to the body corporate, the co-operative society or the undertaking where the workman transferred or re-employed is, by agreement or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation under section 25F or section 25FF or 21 ----- section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947) on the basis that his service has been continuous and has not been interrupted by the transfer or re-employment. **70. Special provision as to income-tax.—Where the assets, rights and liabilities of any body** corporate carrying on business are, under the provisions of this Part, transferred to any other bodies corporate which after the transfer carry on the same business, the losses or profits or gains sustained by the body corporate first-mentioned which, but for such transfer, would have been allowed to be carried forward and set off in accordance with the provisions of Chapter VI of the Income-tax Act, 1961 (43 of 1961), shall be apportioned amongst the transferee bodies corporate in accordance with the rules to be made by the Central Government in this behalf and, upon such apportionment, the share of loss allotted to each transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of the said Act, as if the transferee body corporate had itself sustained such loss in a business carried on by it in the years in which these losses were sustained. **71. Continuance of facilities in certain State institutions.—(1) The Government of State of Uttar** Pradesh or Uttaranchal, as the case may be, shall, in respect of the institutions specified in the Tenth Schedule to this Act, located in that State, continue to provide facilities to the people of the other State which shall not, in any respect, be less favourable to such people than what were being provided to them before the appointed day, for such period and upon such terms and conditions as may be agreed upon between the two State Governments before the 1st day of December, 2001 or if no agreement is reached by the said date as may be fixed by order of the Central Government, (2) The Central Government may, at any time before the 1st day of December, 2001, by notification in the Official Gazette, specify in the Tenth Schedule referred to in sub-section (1) any other institution existing on the appointed day in the States of Uttar Pradesh and Uttaranchal and on the issue of such notification, such Schedule shall be deemed to be amended by the inclusion of the said institution therein. PART VIII PROVISIONS AS TO SERVICES **72. Provisions relating to All-India Services.—(1) In this section, the expression “State cadre”—** (a) in relation to the Indian Administrative Service, has the meaning assigned to it in the Indian Administrative Service (Cadre) Rules, 1954; (b) in relation to the Indian Police Service, has the meaning assigned to it in the Indian Police Service (Cadre) Rules, 1954; and (c) in relation to the Indian Forest Service, has the meaning assigned to it in the Indian Forest Service (Cadre) Rules, 1966. (2) In place of the cadres of the Indian Administrative Service, Indian Police Service and Indian Forest Service for the existing State of Uttar Pradesh, there shall, on and from the appointed day, be two separate cadres, one for the State of Uttar Pradesh and the other for the State of Uttaranchal in respect of each of these services. (3) The initial strength and composition of the State cadres referred to in sub-section (2) shall be such as the Central Government may, by order, determine before the appointed day. (4) The members of each of the said services borne on the Uttar Pradesh cadre thereof immediately before the appointed day shall be allocated to the State cadres of the same service constituted under sub-section (2) in such manner and with effect from such date or dates as the Central Government may, by order, specify. (5) Nothing in this section shall be deemed to affect the operation, on or after the appointed day, of the All-India Services Act, 1951 (61 of 1951), or the rules made thereunder. 22 ----- **73. Provisions relating to other services.—(1) Every person who immediately before the appointed** day is serving in connection with the affairs of the existing State of Uttar Pradesh shall, on and from that day provisionally continue to serve in connection with the affairs of the State of Uttar Pradesh unless he is required, by general or special order of the Central Government to serve provisionally in connection with the affairs of the State of Uttaranchal : Provided that every direction under this sub-section issued after the expiry of a period of one year from the appointed day shall be issued with the consultation of the Governments of the successor States. (2) As soon as may be after the appointed day, the Central Government shall, by general or special order, determine the successor State to which every person referred to in sub-section (1) shall be finally allotted for service and the date with effect from which such allotment shall take effect or be deemed to have taken effect. (3) Every person who is finally allotted under the provisions of sub-section (2) to a successor State shall, if he is not already serving therein be made available for serving in the successor State from such date as may be agreed upon between the Governments concerned or in default of such agreement, as may be determined by the Central Government. **74. Other provisions relating to services.—(1) Nothing in this section or in section 73 shall be** deemed to affect on or after the appointed day, the operation of the provisions of Chapter I of Part XIV of the Constitution in relation to determination of the conditions of service of persons serving in connection with the affairs of the Union or any State: Provided that the conditions of service applicable immediately before the appointed day in the case of any person deemed to have been allocated to the State of Uttar Pradesh or to the State of Uttaranchal under section 73 shall not be varied to his disadvantage except with the previous approval of the Central Government. (2) All services prior to the appointed day rendered by a person,— (a) if he is deemed to have been allocated to any State under section 73, shall be deemed to have been rendered in connection with the affairs of that State; (b) if he is deemed to have been allocated to the Union in connection with the administration of the Uttaranchal, shall be deemed to have been rendered in connection with the affairs of the Union, for the purposes of the rules regulating his conditions of service. (3) The provisions of section 73, shall not apply in relation to members of any All-India Service. **75. Provisions as to continuance of officers in same post.—(1) Every person who, immediately** before the appointed day, is holding or discharging the duties of any post or office in connection with the affairs of the existing State of Uttar Pradesh in any area which on that day falls within any of the successor States shall continue to hold the same post or office in that successor State, and shall be deemed, on and from that day, to have been duly appointed to the post or office by the Government of, or any other appropriate authority in that successor State: Provided that nothing in this section shall be deemed to prevent a competent authority, on and from the appointed day, from passing in relation to such person any order affecting the continuance in such post or office. **76. Advisory Committees.—The Central Government may, by order, establish one or more Advisory** Committees for the purpose of assisting it in regard to— (a) the discharge of any of its functions under this Part; and (b) the ensuring of fair and equitable treatment to all persons affected by the provisions of this Part and the proper consideration of any representations made by such persons. 23 ----- **77. Power of Central Government to give directions.—The Central Government may give such** directions to the State Government of Uttar Pradesh and the State Government of Uttaranchal as may appear to it to be necessary for the purpose of giving effect to the foregoing provisions of this Part and the State Government shall comply with such directions. **78. Provisions as to State Public Service Commission.—(1) The Public Service Commission for** the existing State of Uttar Pradesh shall, on and from the appointed day, be the Public Service Commission for the State of Uttar Pradesh. (2) The persons holding office immediately before the appointed day as the Chairman or other member of the Public Service Commission for the existing State of Uttar Pradesh shall, as from the appointed day, be the Chairman or, as the case may be, the other member of the Public Service Commission for the State of Uttar Pradesh. (3) Every person who becomes the Chairman or other member of the Public Service Commission for the State of Uttar Pradesh on the appointed day under sub-section (2), shall— (a) be entitled to receive from the Government of the State of Uttar Pradesh conditions of service not less favourable than those to which he was entitled under the provisions applicable to him; (b) subject to the proviso to clause (2) of article 316, hold office or continue to hold office until the expiration of his term of office as determined under the provisions applicable to him immediately before the appointed day. (4) The report of the Uttar Pradesh Public Service Commission as to the work done by the Commission in respect of any period prior to the appointed day shall be presented under clause (2) of article 323 to the Governors of the States of Uttar Pradesh and Uttaranchal, and the Governor of the State of Uttar Pradesh shall, on receipt of such report, cause a copy thereof together with a memorandum explaining as far as possible, as respects the cases, if any, where the advice of the Commission was not accepted, the reasons for such non-acceptance to be laid before the Legislature of the State of Uttar Pradesh and it shall not be necessary to cause such report or any such memorandum to be laid before the Legislative Assembly of the State of Uttaranchal. PART IX MANAGEMENT AND DEVELOPMENT OF WATER RESOURCES **79. Water Resources Development and its Management.—(1) Notwithstanding anything contained** in this Act but subject to the provisions of section 80, all rights and liabilities of the existing State of Uttar Pradesh in respect of water resource projects in relation to— (i) Ganga and its tributaries traversing the successor States excluding the Upper Yamuna River up to Okhla; and (ii) Upper Yumuna River and its tributaries up to Okhla, shall, on the appointed day, be the rights and liabilities of the successor States in such proportion as may be fixed, and subject to such adjustments as may be made, by agreement entered into by the said States after consultation with the Central Government, or, if no such agreement is entered into within two years of the appointed day, then, the Central Government may, by order, determine within one year having regard to the purposes of the project: Provided that the order so made by the Central Government may be varied by any subsequent agreement entered into by the successor States after consultation with the Central Government. (2) An agreement or order referred to in sub-section (1) shall, where an extension or further development of any of the projects referred to in that sub-section after the appointed day is undertaken, be the rights and liabilities of the successor States in relation to such extension or further development. 24 ----- (3) The rights and liabilities referred to in sub-sections (1) and (2) shall include— (a) the right to receive and utilise the water available for distribution as a result of the projects; and (b) the right to receive and utilise the power generated as a result of the projects, but shall not include the rights and liabilities under any contract entered into before the appointed day by the Government of the existing State of Uttar Pradesh with any person or authority other than Government. **80. Constitution and functions of the Ganga Management Board.—(1) The Central Government** shall constitute a Board to be called the Ganga Management Board (hereinafter referred to as the Board) for administration, construction, maintenance and operation of projects referred to in sub-section (1) of section 79 for any or for a combination of the following purposes, namely:— (i) irrigation; (ii) rural and urban water supply; (iii) hydro power generation; (iv) navigation; (v) industries; and (vi) for any other purpose which the Central Government may, by notification in the Official Gazette, specify. (2) The Board shall consist of— (a) a whole-time Chairman to be appointed by the Central Government in consultation with the successor States; (b) two full time members, one from each of the successor States, to be nominated by the respective State Government; (c) four part-time members, two from each of the successor States, to be nominated by the respective State Government; (d) two representatives of the Central Government to be nominated by that Government. (3) The functions of the Board shall include— (a) the regulation of supply of water from the projects referred to in clause (i) of sub-section (1) of section 79 to the successor States having regard to— (i) any agreement entered into or arrangement made covering the Government of existing State of Uttar Pradesh and any other State or Union territory, and (ii) the agreement or the order referred to in sub-section (2) of section 79; (b) the regulation of supply of power generated at the projects referred to in clause (i) of sub-section (1) of section 79, to any Electricity Board or other authority in-charge of the distribution of power having regard to— (i) any agreement entered into, or arrangement made covering the Government of the existing State of Uttar Pradesh and any other State or Union territory, and (ii) the agreement or the order referred to in sub-section (2) of section 79; 25 ----- (c) the construction of such of the remaining on-going or new works connected with the development of the water resources projects relating to the rivers or their tributaries as the Central Government may specify by notification in the Official Gazette; (d) such other functions as the Central Government may, after consultation with the successor States entrust to it. **81. Staff of the Management Board.—(1) The Board may employ such staff, as it may consider** necessary for the efficient discharge of its functions under this Act. Such staff shall at the first instance, be appointed on deputation from the successor State failing which through any other method: Provided that every person who, immediately before the constitution of the said Board, was engaged in the construction, maintenance or operation of the works relating to the projects referred to in clause (i) of sub-section (1) of section 79 shall continue to be so employed under the Board in connection with the said works on the same terms and conditions of service as were applicable to him before such constitution until the Central Government, by order, directs otherwise: Provided further that the said Board may, in consultation with the Government of the successor State or the Electricity Board concerned and with the prior approval of the Central Government, retain any such person for service under that State Government or Board. (2) The Government of the successor States shall at all times provide the necessary funds to the Board to meet all expenses (including the salaries and allowances of the staff) required for the discharge of its functions and such amounts shall be apportioned between the States concerned in such proportion as the Central Government may, having regard to the benefits to each of the said States specify. (3) The Board shall be under the control of the Central Government and shall comply with such directions, as may, from time to time, be given to it by that Government. (4) The Board may delegate such of its powers, functions and duties as it may deem fit to the Chairman of the said Board or to any officer subordinate to the Board. (5) The Central Government may, for the purpose of enabling the Board to function efficiently, issue such directions to the State Governments concerned, or any other authority, and the State Governments, or the other authority shall comply with such directions. **82. Jurisdiction of the Board.—(1) The Board shall, ordinarily exercise jurisdiction in regard to any** of the projects referred to in clause (i) of sub-section (1) of section 79 over headworks (barrages, dams, reservoirs, regulating structures), part of canal network and transmission lines necessary to deliver water or power to the States concerned. (2) If any question arises as to whether the Board has jurisdiction under sub-section (1) over any project referred thereto, the same shall be referred to the Central Government for decision thereon. **83. Power of Board to make regulations.—The Board may make regulations consistent with the** Act and the rules made thereunder, to provide for— (a) regulating the time and place of meetings of the Board and the procedure to be followed for the transaction of business at such meetings; (b) delegation of powers and duties of the Chairman or any officer of the Board; (c) the appointment and regulation of the conditions of service of the officers and other staff of the Board; (d) any other matter for which regulations are considered necessary by the Board. **84. Allocation of the water resources of the River Yamuna.—(1) The utilisable water resources of** the Yamuna River up to Okhla, as allocated, before the appointed day, to the existing State of Uttar 26 ----- Pradesh under the Memorandum of Undertakings, dated the 12th May, 1994 shall be further allocated between the successor States by mutual agreement within a period of two years, failing which, the Central Government shall, by order, determine the allocation of such water resource between the successor States within a further period of one year. (2) The State of Uttaranchal shall, on the appointed day, be inducted as a member of the Upper Yamuna Board constituted for the implementation of the Memorandum of Undertaking referred to in sub-section (1). PART X LEGAL AND MISCELLANEOUS PROVISIONS **85. Amendment of section 15 of Act 37 of 1956.—On and from the appointed day, in section 15 of** the States Reorganisation Act, 1956, in clause (b), for the words “Uttar Pradesh and Madhya Pradesh”, the words “Uttar Pradesh, Uttaranchal and Madhya Pradesh” shall be substituted. **86. Territorial extent of laws.—The provisions of Part II shall not be deemed to have affected any** change in the territories to which the Uttar Pradesh Imposition of Ceiling of Land Holding Act, 1961 (U.P. Act 1 of 1961) and any other law in force immediately before the appointed day, extends or applies, and territorial references in any such law to the State of Uttar Pradesh shall, until otherwise provided by a competent Legislature or other competent authority be construed as meaning the territories within the existing State of Uttar Pradesh before the appointed day. **87. Power to adapt laws.—For the purpose of facilitating the application in relation to the State of** Uttar Pradesh or Uttaranchal of any law made before the appointed day, the appropriate Government may, before the expiration of two years from that day, by order, make such adaptations and modifications of the law, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to the adaptations and modifications so made until altered, repealed or amended by a competent Legislature or other competent authority. _Explanation.—In this section, the expression “appropriate Government” means as respects any law_ relating to a matter enumerated in the Union List, the Central Government, and as respects any other law in its application to a State, the State Government. **88. Power to construe laws.—Notwithstanding that no provision or insufficient provision has been** made under section 87 for the adaptation of a law made before the appointed day, any court, tribunal or authority, required or empowered to enforce such law may, for the purpose of facilitating its application in relation to the State of Uttar Pradesh or Uttaranchal, construe the law in such manner, without affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority. **89. Power to name authorities, etc., for exercising statutory functions.—The Government of the** State of Uttaranchal, as respects the transferred territory may, by notification in the Official Gazette, specify the authority, officer or person who, on or after the appointed day, shall be competent to exercise such functions exercisable under any law in force on that day as may be mentioned in that notification and such law shall have effect accordingly. **90. Legal proceedings.—Where, immediately before the appointed day, the existing State of Uttar** Pradesh is a party to any legal proceedings with respect to any property, rights or liabilities subject to apportionment between the States of Uttar Pradesh and Uttaranchal under this Act, the State of Uttar Pradesh or Uttaranchal which succeeds to, or acquires a share in, that property or those rights or liabilities by virtue of any provision of this Act shall be deemed to be substituted for the existing State of Uttar Pradesh or added as a party to those proceedings, and the proceedings may continue accordingly. **91. Transfer of pending proceedings.—(1) Every proceeding pending immediately before the** appointed day before a court (other than High Court), tribunal, authority or officer in any area which on that day falls within the State of Uttar Pradesh shall, if it is a proceeding relating exclusively to the 27 ----- territory, which as from that day are the territories of Uttaranchal State, stand transferred to the corresponding court, tribunal, authority or officer of that State. (2) If any question arises as to whether any proceeding should stand transferred under sub-section (1) it shall be referred to the High Court at Allahabad and the decision of that High Court shall be final. (3) In this section— (a) “proceeding” includes any suit, case or appeal; and (b) “corresponding court, tribunal, authority or officer” in the State of Uttaranchal means— (i) the court, tribunal, authority or officer in which, or before whom, the proceeding would have laid if it had been instituted after the appointed day; or (ii) in case of doubt, such court, tribunal, authority, or officer in that State, as may be determined after the appointed day by the Government of that State or the Central Government, as the case may be, or before the appointed day by the Government of the existing State of Uttar Pradesh to be the corresponding court, tribunal, authority or officer. **92. Right of pleaders to practise in certain cases.—Any person who, immediately before the** appointed day, is enrolled as a pleader entitled to practise in any subordinate courts in the existing State of Uttar Pradesh shall, for a period of one year from that day, continue to be entitled to practise in those courts, notwithstanding that the whole or any part of the territories within the jurisdiction of those courts has been transferred to the State of Uttaranchal. **93. Effect of provisions of the Act inconsistent with other laws.—The provisions of this Act shall** have effect notwithstanding anything inconsistent therewith contained in any other law. **94. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the President may, by order, do anything not inconsistent with such provisions which appears to him to be necessary or expedient for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of a period of three years from the appointed day. (2) Every order made under this section shall be laid before each House of Parliament. 28 ----- THE FIRST SCHEDULE (See section 8) (i) Of the eleven sitting members whose term of office will expire in [1][25[th] November, 2002], namely, Shri Narendra Mohan, Shri Raj Nath Singh, Shri Chaudhary Chunni Lal, Shri Devi Prasad Singh, Shri Manohar Kant Dhyani, Shri Amar Singh, Shri Mohammad Azam Khan, Shri R.N. Arya, Shri Gandhi Azad, Shri [1][Akhilesh Das] and Shri [1][Balwant Singh Ramuwalia], Shri Manohar Kant Dhyani shall be deemed to have been elected to fill one seat out of the three seats allocated in the Council of States to the State of Uttaranchal and the other ten sitting members shall be deemed to have been elected to fill ten of the seats allotted to the State of Uttar Pradesh. (ii) Of the twelve sitting members whose term of office will expire in [1][4[th] July, 2004, namely, Shri Arun Shourie, Shri [1][Triloki Nath], Shri B.P. Singhal, Shri Dharam Pal Yadav, Shri Deena Nath Mishra, Shri Ram Gopal Yadav, Shri Kanshi Ram, Shri Sangh Priya Gautam, Shri Munavvar Hasan, Shri 1[Khan Gufaran Zahidi], Shri Syed Akhter Hasan Rizvi, Shri Rama Shanker Kaushik, such one as the Chairman of the Council of States may determine by drawing lot shall be deemed to have been elected to fill one of the seats allotted to the State of Uttaranchal and the other eleven sitting members shall be deemed to have been elected to fill eleven of the seats allotted to the State of Uttar Pradesh. (iii) Of the eleven sitting Members representing the State of Uttar Pradesh whose term of office will expire on 2nd April, 2006, such one as the Chairman of the Council of States may determine by drawing lot shall be deemed to have been elected to fill one of the seats allotted to the State of Uttaranchal. 1. Subs. by notification No. G.S.R. 674(E) (w.e.f. 19-8-2003). 29 ----- THE SECOND SCHEDULE (See section 10) AMENDMENTS TO THE DELIMITATION OF PARLIAMENTARY AND ASSEMBLY CONSTITUENCIES ORDER, 1976 In the Delimitation of Parliamentary and Assembly Constituency Order, 1976,— 1. In Schedule XXII,— (i) in PART A—Parliamentary Constituencies,— (a) serial numbers 1, 2, 3, 4 and 85 and entries relating thereto shall be omitted; (b) in serial number 12 at the end, the following figures and word shall be inserted, namely:— “56—Baheri”; (c) in serial number 82 at the end, the following figures and word shall be inserted, namely:— “416—Deoband”; (d) in serial number 84 at the end, the following figures, brackets and letters shall be inserted, namely:— “415—Nagal (SC)”; (ii) in PART B--Assembly Constituencies, serial numbers 1 to 16 (both inclusive) and 420 to 425 (both inclusive) and the entries relating thereto shall be omitted. 2. After Schedule XXII, the following shall be inserted, namely:— “SCHEDULE XXIIA UTTARANCHAL PART A.—Parliamentary Constituencies Serial No., Name and extent in terms of assembly Constituencies Tehri Garhwal.—1-Uttar Kashi (SC), 2-Tehri, 3-Deoprayag, 4-Mussoorie and 5-Chakrata (ST). 1. Garhwal.—6-Lansdowne, 7-Pauri, 8-Karanprayag, 9-Badri-Kedar and 10-Dehra Dun. 2. Almora.—11-Didihat, 12-Pithoragarh, 13-Almora, 14-Bageshwar (SC) and 15-Ranikhet. 3. Naini Tal.—16-Naini Tal, 17-Khatima (SC), 18-Haldwani and 19-Kashipur. 4. Hardwar (SC).—20-Roorkee, 21-Lhaksar and 22-Hardwar.”. 5. PART B.—Assembly Constituency Serial No., Name and extent of Constituency The detailed particulars regarding the name and extent of the Constituencies in each of the districts in the State of Uttaranchal shall be as delimited by the Election Commission.”. 30 ----- THE THIRD SCHEDULE (See section 19) MODIFICATION IN THE DELIMITATION OF COUNCIL CONSTITUENCIES (UTTAR PRADESH) ORDER, 1951 For the table appended to the Delimitation of Council Constituencies (Uttar Pradesh) Order, 1951, the following table shall be substituted, namely:— “TABLE Name of Constituency Extent of Constituency Number of Seats 1 2 3 **Graduates Constituencies** 1. Bareilly-Moradabad Division Graduates Bareilly, Pilibhit, Shahjahanpur, 1[Budaun], Rampur, Moradabad, Jyotibaphule Nagar and Bijnor districts. 2. Lucknow Division Graduates Lucknow, Hardoi, Kheri, Sitapur, Barabanki, Rae Bareli and Pratapgarh districts. 3. Gorakhpur-Faizabad Division Graduates Bahraich, Shravasti, Gonda, Balrampur, Basti, Siddharthnagar, Santkabir Nagar, Gorakhpur, Maharajganj, Deoria, Kushinagar, Azamgarh, Mau, Sultanpur, Faizabad and Ambedkarnagar districts. 4. Varanasi Division Graduates Ballia, 1[Ghazipur], Jaunpur, Varanasi, Chandauli, Sant Ravidas Nagar, Mirzapur and Sonbhadra districts. 5. Allahabad-Jhansi Division Graduates Allahabad, Kaushambi, Fatehpur, Banda, Chitrakot, Hamirpur, Mahoba, Jalaun, Jhansi and Lalitpur districts. 1 1 1 1 1 1 1 1 6. Kanpur Graduates Kanpur Nagar and Kanpur Dehat and Unnao Districts. 7. Agra Division Graduates Agra, Firozabad, Mathura, Aligarh, Hathras, Etah, Mainpuri, Etawah, Kannauj, Auraiya and Farrukhabad districts. 8. Meerut Division Graduates Bulandshahar, Ghaziabad, Gautambuddhnagar, Meerut 1[Baghpat], Muzaffarnagar and Saharanpur districts. 1. Subs. by notification No. G.S.R. 674(E) (w.e.f. 19-8-2003). 31 ----- 1 2 3 **Teachers’ Constituencies** 1. Bareilly-Mordabad Division Teachers Bareilly, Pilibhit, Shahjahanpur, [1][Budaun], Rampur, Mordabad, Jyotibaphule Nagar, and Bijnor districts. 2. Lucknow Division Teachers Lucknow, Hardoi, Kheri, Sitapur, Barabanki, Rae Bareli and Pratapgarh districts. 3. Gorakhpur-Faizabad Division Teachers Bahraich, Shravasti, Gonda, Balrampur, Basti, Siddarthnagar, Santkabir Nagar, Gorakhpur, Maharajganj, Deoria, Kushinagar, Azamgarh, Mau, Sultanpur, Faizabad and Ambedkarnagar districts. 1 1 1 1 1 1 1 1 4. Varanasi Division Teachers Ballia, [1][Ghazipur], Jaunpur, Varanasi, Chandauli, Sant Ravidas Nagar, Mirzapur and Sonbhadra districts. 5. Allahabad-Jhansi Division Teachers Allahabad, Kaushambi, Fathepur, Banda, Chitrakoot, Hamirpur, Mahoba, Jalaun, Jhansi and Lalitpur districts. 6. Kanpur Teachers Kanpur Nagar and Kanpur Dehat and Unnao districts. 7. Agra Division Teachers Agra, Firozabad, Mathura, Aligarh, Hathras, Etah, Mainpuri, Etawah, Kannauj, Auraiya and Farrukhabad districts. 8. Meerut Division Teachers Bulandshahar, Ghaziabad, Gautambuddhnagar, 1[Baghpat], Meerut, Muzaffarnagar and Saharanpur districts. **Local Authorities' Constituencies** 1. Mordabad-Bijnor Local Authorities 2. Rampur-Bareilly Local Authorities 3. 1[Budaun] Local Authorities 4. Pilibhit Shahjahanpur Local Authorities Mordabad, Jyotibaphule Nagar, and Bijnor districts. 1 Rampur and Bareilly districts. 1 1[Budaun] district. 1 Pilibhit and Shahjahanpur districts. 1 5. Hardoi Local Authorities Hardoi district. 1 6. Kheri Local Authorities Kheri district. 1 7. Sitapur Local Authorities Sitapur district. 1 1. Subs. by notification No.G.S.R. 674(E) (w.e.f. 19-8-2003). 32 ----- 1 2 3 8. Lucknow-Unnao Local Authorities 9. Rae Bareli Local Authorities 10. Pratapgarh Local Authorities 11. Sultanpur Local Authorities 12. Barabanki Local Authorities Lucknow and Unnao districts. 1 Rae Bareli district. 1 Pratapgarh district. 1 Sultanpur district 1 Barabanki district. 1 13. Bahraich Local Authorities Bahraich and Shravasti districts. 1 14. Gonda Local Authorities 1[Gonda and Balrampur districts]. 1 15. Faizabad Local authorities Faizabad and Ambedkarnagar districts. 1 16. Basti-Siddharth Nagar Local Authorities 17. Gorakhpur-Mahrajganj Local Authorities Basti, Santkabir Nagar and Siddharthnagar districts. 1 Gorakhpur and Mahrajganj districts. 1 18. Deoria Local Authorities Deoria and Kushinagar districts. 1 19. Azamgarh-Mau Local Authorities Azamgarh and Mau districts. 1 20. Ballia Local Authorities Ballia district. 1 21. Ghazipur Local Authorities Ghazipur district. 1 22. Jaunpur Local Authorities Jaunpur district. 1 23. Varanasi Local Authorities Varanasi, Chandauli and Sant Ravidasnagar districts. 1 24. Mirzapur-Sonbhadra Local Authorities 25. Allahabad Local Authorities 26. Banda-Hamirpur Local Authorities 27. Jhansi-Jalaun-Lulitpur Local Authorities Mirzapur and Sonbhadra districts. 1 Allahabad and Kaushambi districts. 1 Banda, Chitrakoot, Hamirpur and Mahoba districts. 1 Jalaun, Jhansi and Lalitpur districts. 1 1. Subs. by notification No. G.S.R. 674(E) (w.e.f. 19-8-2003). 33 ----- 1 2 3 28. Kanpur-Fatehpur Local Authorities 29. Etawah-Farrukhabad Local Authorities 30. Agra-Firozabad Local Authorities 31. Mathura-Etah-Mainpuri Local Authorities Kanpur Nagar and Kanpur Dehat and Fatehpur districts. 1 Etawah, Farrukhabad, Kannauj and Auraiya districts. 1 Agra and Firozabad districts. 1 Mathura, Etah and Mainpuri districts. 2 32. Aligarh Local Authorities Aligarh and Hathras districts. 1 33. Bulandshahar Local Authorities 34. Meerut-Ghaziabad Local Authorities 35. Muzaffarnagar-Saharanpur Local Authorities Bulandshahar and Gautambuddhnagar districts. 1 Meerut, Bagpat and Ghaziabad districts. 1 Muzaffarnagar and Saharanpur districts. 1”. 34 ----- THE FOURTH SCHEDULE (See section 20) List of members of the Legislative Council of Uttar Pradesh who shall cease to be such members on the appointed day and deemed to be the members of the Provisional Legislative Assembly:— 1. Shri Nitya Nand Swami. 2. Dr. (Smt.) Indira Hridayesh. 3. Shri Narayan Singh Rana. 4. Shri Tirath Singh Rawat. 1[5. Shri Prakash Pant]. 2* * * * * 7. Smt. Nirupama Gaur. 1[8. Shri Bhagat Singh Koshyari]. 1[9. Shri Islam Singh]. 1. Subs. by notification No.G.S.R. 674(E) (w.e.f. 19-8-2003). 2. Entry 6 omitted by notification No.G.S.R. 840(E) (w.e.f. 27-10- 2000). 35 ----- THE FIFTH SCHEDULE (See section 24) AMENDMENT OF THE CONSTITUTION (SCHEDULED CASTES) ORDER, 1950 In the Constitution (Scheduled Castes) Order, 1950,— (a) in paragraph 2, for the figures “XXIII”, the figures “XXIV” shall be substituted; (b) in the Schedule, after Part XXIII, the following shall be inserted, namely:— “PART XXIV—Uttaranchal 1. Agariya 2. Badhik 3. Badi 4. Baheliya 5. Baiga 6. Baiswar 7. Bajaniya 8. Bajgi 1[9. Balahar] 10. Balai 11. Balmiki 12. Bangali 13. Banmanus 14. Bansphor 15. Barwar 16. Basor 17. Bawariya 18. Beldar 19. Beriya 20. Bhantu 21. Bhuiya 22. Bhuyiar 23. Boria 24. Chamar, Dhusia, Jhusia, Jatava 25. Chero 26. Dabgar 1. Subs. by notification No. G.S.R. 674(E) (w.e.f. 19-8-2003). 36 ----- 27. Dhangar 28. Dhanuk 29. Dharkar 30. Dhobi 31. Dom 32. Domar 33. Dusadh 1[34. Gharami] 1[35. Ghasiya] 36. Gond 1[37. Gual] 38. Habura 39. Hari 40. Hela 41. Kalabaz 42. Kanjar 43. Kapariya 44. Karwal 1[45. Khairaha] 1[46. Kharwar (excluding Benbansi)] 47. Khatik 1[48. Khorot] 49. Kol 50. Kori 51. Korwa 52. Lalbegi 53. Majhwar 54. Mazhabi 55. Musahar 56. Nat 57. Pankha 58. Parahiya 59. Pasi, Tarmali 60. Patari 1[61. Saharya] 1. Subs. by notification No. G.S.R. 674(E) (w.e.f. 19-8-2003). 37 ----- 62. Sanaurhiya 63. Sansiya 64. Shilpkar 65. Turaiha.”. 38 ----- THE SIXTH SCHEDULE (See section 25) AMENDMENTS TO THE CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950 In the Constitution (Scheduled Tribes) Order, 1950,— (1) in paragraph 2, for the figures “XX”, the figures “XXI” shall be substituted; (2) in the Schedule, after Part XX, the following Part shall be inserted, namely:— “PART XXI.—Uttaranchal 1. Bhotia. 2. Buksa. 3. Jannsari. 4. Raji. 5. Tharu.”. 39 ----- THE SEVENTH SCHEDULE (See section 47) LIST OF FUNDS 1. Depreciation Reserve Fund--Irrigation. 2. Depreciation Reserve Fund--Government Press. 3. Depreciation Reserve Fund--Precision Instrument Factory. 4. Rural Development Fund. 5. Famine Relief Fund. 6. Sugar Research and Labour Housing Management Fund. 7. Zamindari Abolition Fund. 8. U. P. Road Fund. 9. Hospital Fund. 10. Teachers Gratuity Fund. 11. State Bridge Fund. 12. General Insurance Fund. 13. Nazul Fund. 14. State Co-operative Development Fund. 15. Agriculture Credit Relief and Security Fund. 16. Farmer Relief Fund. 17. Depreciation Reserve Fund-Power. 18. Contingency Reserve Fund-Power. 19. Sugar Factory Rehabilitation, Modernisation and Establishment Fund. 20. Cane Research and Development Fund. 21. Consolidated Reduction on Debt Fund for State Development Loan and Zamindari Abolition and Compensation Bond. 22. Police House Building Fund. 23. Fourth Class House Building Fund. 24. Government Servant Housing Fund. 25. Balanced Area Development Fund. 26. U.P. Youth Welfare Fund. 27. U.P. Student Welfare Fund. 28. Language Fund. 29. Police Welfare Fund. 30. Acharya Narendra Deo Fund. 31. Calamity Relief Fund. 40 ----- 32. Purvanchal Development Fund. 33. Bundelkhand Development Fund. 34. Loan Assistance Fund for payment of Cane Prices. 35. Relief for Productivity Research and Modernisation of Sick Industrial Units. 36. Secretariat Fund. 37. Vidhayak Nidhi. 41 ----- THE EIGHTH SCHEDULE (See section 54) APPORTIONMENT OF LIABILITY IN RESPECT OF PENSIONS 1. Subject to the adjustments mentioned in paragraph 3, each of the successor States shall, in respect of pensions granted before the appointed day by the existing State of Uttar Pradesh, pay the pensions drawn in its treasuries. 2. Subject to the said adjustments, the liability in respect of pensions of officers serving in connection with the affairs of the existing State of Uttar Pradesh who retire or proceed on leave preparatory to retirement before the appointed day, but whose claims for pensions are outstanding immediately before that day, shall be the liability of the State of Uttar Pradesh. 3. There shall be computed, in respect of the period commencing on the appointed day and ending on such date after the appointed day, as may be fixed by the Central Government and in respect of each subsequent financial year, the total payments made in all the successor States in respect of pensions referred to in paragraphs 1 and 2. The total representing the liability of the existing State of Uttar Pradesh in respect of pensions shall be apportioned between the successor States in the population ratio and any successor State paying the State paying more than its due share shall be reimbursed the excess amount by the successor State or State paying less. 4. The liability of the existing State of Uttar Pradesh in respect of pensions granted before the appointed day and drawn in any area outside the territories of the existing State shall be the liability of the State of Uttar Pradesh subject to adjustments to be made in accordance with paragraph 3 as if such pensions had been drawn in any treasury in the State of Uttar Pradesh under paragraph 1. 5. (1) The liability in respect of the pension of any officer serving immediately before the appointed day in connection with the affairs of the existing State of Uttar Pradesh and retiring on or after that day, shall be that of the successor State granting him the pension; but the portion of the pension attributable to the service of any such officer before the appointed day in connection with the affairs of the existing State of Uttar Pradesh shall be allocated between the successor States in the population ratio, and the Government granting the pension shall be entitled to receive from each of the other successor States its share of this liability. (2) If any such officer was serving after the appointed day in connection with the affairs of more than one successor State other than the one granting the pension shall reimburse to the Government by which the pension is granted an amount which bears to the portion of the pension attributable to his service after the appointed day the same ratio as the period of his qualifying service after the appointed day under the reimbursing State bears to the total qualifying service of such officer after the appointed day reckoned for the purposes of pension. 6. Any reference in this Schedule to a pension shall be construed as including a reference to the commuted value of the pension. 42 ----- S. No. THE NINTH SCHEDULE (See section 66) LIST OF GOVERNMENT COMPANIES Name of Government Company Address 1. Uttar Pradesh Bhumi Sudhar Nigam Ltd. Bhumitra Bhawan, 19-B,Vibhuti Khand, Gomati Nagar, Lucknow. 2. Uttar Pradesh Agro Industrial Corporation 22, Vidhan Sabha Marg, Lucknow. Ltd. 3. Uttar Pradesh Alpasankhyak Vittiya Nigam 7th Floor, Jawahar Bhawan, Lucknow. Ltd. 4. Uttar Pradesh Electronic Corporation Ltd. Nav Chetna Kendra, Ashok Marg, Lucknow. 5. Uttar Pradesh Jal Vidyut Nigam Ltd. 12th Floor, Vikas Deep, Station Road, Lucknow. 6. Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. 7. Uttar Pradesh Leather Development and Marketing Corporation Ltd. 4-B, Gokhle Marg, Lucknow. 16/58- A, Sadar Bhati Road, Agra. 8. Uttar Pradesh Export Corporation Ltd. 2, Rana Pratap Marg, Lucknow. 9. Uttar Pradesh State Food and Essential Commodities Corporation Ltd. 10. Uttar Pradesh Small Industries Corporation Ltd. 11. Uttar Pradesh State Handloom Corporation Ltd. 17, Gokhle Marg, Lucknow. 110, Industrial Estate, Fazalganj, Kanpur. Hathkargha Bhawan, G.T. Road, Kanpur. 12. Uttar Pradesh Police Awas Nigam Ltd. A-81, Vijay Khand-II, Gomati Nagar, Lucknow. 13. Provincial Industrial Investment Corporation of Uttar Pradesh (PICUP) Ltd. 14. The Indian Turpentine and Rosin Company Ltd. PICUP Bhawan, Gomati Nagar, Lucknow. Culucttarbuckganj, Bareilly. 15. Uttar Pradesh State Cement Corporation Ltd. Churk, Sonbhadra. 16. Uttar Pradesh State Mineral Development Corporation Ltd. Kapurthal Complex, Aliganj, Lucknow. 17. Uttar Pradesh State Taxtile Corporation Ltd. Vastra Bhawan, Sharda Nagar, Kanpur. 18. Uttar Pradesh State Industrial Development Corporation Ltd. A- 1/4, Lakhanpur, P.O. Box No.1150, Kanpur. 43 ----- S. No. Name of Government Company 19. Uttar Pradesh Project and Tubewells Corporation Ltd. Address Left Bank, Gomati Bairaj, Gomati Nagar, Lucknow. 20. Uttar Pradesh Mahila Kalyan Nigam Ltd. B-2/5, Vikas Khand, Gomati Nagar, Lucknow. 21. Uttar Pradesh Matsya Vikas Nigam Ltd. 4/13-14, Vivek Khand, Gomati Nagar, Lucknow. 22. Uttar Pradesh Panchayati Raj Vitta Nigam Ltd. C-232, Niralanagar, Lucknow. 23. Uttar Pradesh Pashudhan Udyog Nigam Ltd. Central Dairy Farm, Aligarh. 24. Uttar Pradesh Pichhara Varg Vitta Evam Vikas Nigam Ltd. 25. Uttar Pradesh Poultry and Livestock Specialities Ltd. 26. Uttar Pradesh Development Systems Corporation Ltd. PCF Building, 4th Floor, Station Road, Lucknow. Campus Animal Husbandry, Badshahbagh, Lucknow. 9, Sarojini Naidu Marg, Lucknow. 27. Uttar Pradesh State Bridge Corporation Ltd. 16, Madan Mohan Malviya Marg, Lucknow. 28. Uttar Pradesh Rajkiya Nirman Nigam Ltd. Vishveshwaraiya Bhawan, Gomati Nagar, Lucknow. 29. Uttar Pradesh Anusuchit Jati/Janjati Vikas Nigam Ltd. 30. Uttar Pradesh Samaj Kalyan Nirman Nigam Ltd. 31. Uttar Pradesh Bhootpurva Sainik Kalyan Nigam Ltd. 32. Uttar Pradesh (Madhya) Ganna Beej Vikas Nigam Ltd. 33. Uttar Pradesh (Paschim) Ganna Beej Vikas Nigam Ltd. 34. Uttar Pradesh (Poorva) Ganna Beej Vikas Nigam Ltd. 35. Uttar Pradesh (Rohilkhand Terai) Ganna Beej Vikas Nigam Ltd. B-912, Sector C. Mahanagar, Lucknow. Lekhraj Market, Indira Nagar, Lucknow. 54-X, Jopling Road, Lucknow. New Berry Road, Near Deputy Cane Commissioner's Office, Lucknow. Circular Road, Near Ganna Kisan Sansthan, Muzaffarnagar. HIG-VI, Acharya Ram Chandra Shukla Nagar, Deoria. 26-27, B.D.A. Colony, Shahamatganj, Barielly. 36. Uttar Pradesh State Sugar Corporation Ltd. Vipin Khand, Near Taj Hotel, Gomati Nagar, Lucknow. 37. Uttar Pradesh Tourism Corporation Ltd. Chitrahar-3, Nawal Kishore Road, Lucknow. 44 ----- S. No Name of Government Company Address 38. Garhwal Mandal Vikas Nigam Ltd. 74, Rajpur Road, Dehradun. 39. Kumaon Mandal Vikas Nigam Ltd. Oak Park House, Malli Tal, Nainital. 40. Uttar Pradesh Hill Electronics Corporation Ltd. B-2/140, Vishal Khand Gomati Nagar, Lucknow. 41. Uttar Pradesh Waqf Vikas Nigam Ltd. First Floor, 118, Jawahar Bhawan, Lucknow. 42. Uttar Pradesh Seed and Tarai Development Corporation Ltd. Haldi, Pantnagar, Udhamsinghnagar. 43. Kumaon Anusuchit Janjati Vikas Nigam Ltd. Raj Mahal Hotel Campus, Malli Tal, Nainital. 44. Garhwal Anusuchit Janjati Vikas Nigam Ltd. 74, Rajpur Road, Dehradun. 45 ----- THE TENTH SCHEDULE (See section 71) CONTINUANCE OF FACILITIES IN CERTAIN STATE INSTITUTIONS _List of Training Institutions/Centres_ 1. Uttar Pradesh Academy of Administration, Nainital 2. Uttar Pradesh State Observatory, Nainital 3. Institute of Management Development Uttar Pradesh, Lucknow 4. Judicial Training and Research Institute, Lucknow 5. Dr. B. R. Ambedkar Police Academy, Moradabad 6. Police Training College-II, Moradabad 7. Police Training College-Ill, Gorakhpur 8. Armed Training Centre, Sitapur 9. Police Training College, Moradabad 10. Police Training College, Gorakhpur 11. Recruit Training Centre, Chunar, Mirzapur 12. Police Training College, Unnao 13. Sampurnanand Prison Training Institute, Lucknow 14. Secretariat Training and Management Institute, Lucknow 15. Raja Todarmal Survey and Land Records Institute, Hardoi 16. Land Consolidation Training College, Ayodhya, Faizabad 17. State Engineers' Training Institute, Kalagarh 18. U. P. Water and Land Management Institute, Lucknow 19. Institute of Financial Management Training and Research, Lucknow 20. Cooperative and Panchayat Audit Training Centre, Ayodhya, Faizabad 21. Local Funds Accounts and Audit Training Institute, Allahabad 22. Trade Tax Officers' Training Institute, Lucknow 23. State Electricity Board Training Institute, Dehradun 24. U.P. State Electricity Board Staff College, Dehradun 25. Thermal Power Training Institute, UPSEB, Obra, Sonbhadra 26. Central Civil Defence Training Institute, Lucknow 27. Deen Dayal Upadhyay State Institute of Rural Development, Bakshi Ka Talab, Lucknow 28. Minor Irrigation Management and Water Management Training Institute, Bakshi Ka Talab, Lucknow 29. Smt, Indira Gandhi Cooperative Institute, Lucknow 30. Cooperative Training College, Dehradun 46 ----- 31. Agriculture Cooperative Staff Training Institute, Lucknow 32. Institute of Cooperative, Corporate Management Research and Training, Indira Nagar, Lucknow 33. U. P. Cane Development Institute, Lucknow 34. Uttar Pradesh State Transport Corporation Training Institute, Kanpur 35. Uttar Pradesh State Education Research and Training Board, Allahabad 36. Scheduled Castes and Scheduled Tribes Research and Training Institute, Lucknow 37. Hotel Management and Catering Institute, Dehradun 38. Research, Development and Training Institute, Kanpur 39. Uttar Pradesh Excise Training Institute, Rae Bareili 40. Central Workers Education Board, Kanpur 41. State Institute of Health and Family Welfare, Indira Nagar, Lucknow 42. Office of the Inspector of Officers, U.P. Allahabad 43. State Planning Institute, Training Division, Kalakankar House, Old Hyderabad, Lucknow 44. Institute of Entrepreneurship Development, Lucknow 45. Hotel Management and Catering Institute, Almora 46. Moti Lal Nehru Regional Engineering College, Allahabad 47. State Architecture College, Lucknow 48. Central Textile Institute, Kanpur 49. Institute of Engineering and Rural Technology, Allahabad 50. Northern Regional Institute of Printing Technology, Allahabad 51. Khadi and Gramodyog Board, 8, Tilak Marg, Lucknow 52. Dr. Ambedkar Institute of Technology for Handicapped, Kanpur 53. Government Leather Institute, Agra 54. Government Leather Institute, Kanpur 55. Joint Entrance Examination Council, Lucknow 1[56. King George Medical Colleges, Lucknow. 57. Ganesh Shankar Vidyarthi Medical College, Kanpur. 58. Motilal Nehru Medical College, Allahabad. 59. Rani Laxmibai Medical College, Jhansi. 60. Baba Raghav Das Medical College, Gorakpur. 61. Sarojini Naidu Medical College, Agra. 62. Lala Lajpat Rai Memorial Medical College, Meerut. 63. Ayurvedic College, Lucknow. 1. Added by notification No. S.o. 153(E) dated 20-2-2001 (w.e.f. 20-2-2001). 47 ----- 64. Rishikul Ayurvedic College, Haridwar. 65. Lalithari Ayurvedic College, Pilibhit. 66. Gurukul Kangadi Ayurvedic College, Haridwar. 67. Bundelkhand Ayurvedic College, Jhansi. 68. Ayurvedic College, Atarra, Banda. 69. Sahu Ramnarayan Murti Manohar Ayurvedic College, Bareilly. 70. Swami Kalyandev Ayurvedic College, Rampur, Muzaffarnagar. 71. Lal Bahadur Shastri Ayurvedic College, Handia, Allahabad. 72. Rajkiya Ayurvedic College, Varanasi. 73. Unani Medical College, Allahabad. 74. Takmil Uttib College, Lucknow. 75. National Homeopathic College, Lucknow. 76. Lal Bahadur Shastri Homeopathic College, Allahabad. 77. Kanpur Homeopathic College, Kanpur. 78. Dr. V. K. Homeopathic College, Faizabad. 79. Mohan Homeopathic College, Lucknow. 80. Shri Durgaji Homeopathic College, Chandeshwar, Azamgarh. 81. T.D. Homeopathic College, Jaunpur. 82. Ghazipur Homeopathic College, Ghazipur. 83. Rajkiya Homeopathic Medical College, Nagina, Bijnor. 84. Rajkiya K.G.K Homeopathic Medical College, Moradabad. 85. Uttar Pradesh State Seed Certification Agency, Lucknow. 86. State Institute of management of Agriculture, Rehmankhera, Lucknow.] 1[87. Lekhpal Prashikshan Sansthan, Sheesh Mahal, Lucknow.] 1. Added by notification No. S.O. 1186(E), dated 29-11-2001 (w.e.f. 29-11-2001). 48 -----
25-Aug-2000
28
The Madhya Pradesh Reorganisation Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/1992/3/a2000-28.pdf
central
# THE MADHYA PRADESH REORGANISATION ACT, 2000 _____________ # ARRANGEMENT OF SECTIONS _____________ PART I PRELIMINARY SECTIONS 1. Short title. 2. Definitions. PART II REORGANISATION OF THE STATE OF MADHYA PRADESH 3. Formation of Chhattisgarh State. 4. State of Madhya Pradesh and territorial divisions thereof. 5. Amendment of the First Schedule to the Constitution. 6. Saving powers of the State Government. PART III REPRESENTATION IN THE LEGISLATURES _The Council of States_ 7. Amendment of the Fourth Schedule to the Constitution. 8. Allocation of sitting members. _The House of the People_ 9. Representation in the House of the People. 10. Delimitation of Parliamentary and Assembly constituencies. 11. Provision as to sitting members. _The Legislative Assembly_ 12. Provisions as to Legislative Assemblies. 13. Allocation of sitting members. 14. Duration of Legislative Assemblies. 15. Speakers and Deputy Speakers. 16. Rules of procedure. _Delimitation of constituencies_ 17. Delimitation of constituencies. 18. Power of the Election Commission to maintain Delimitation Orders up-to-date. _Scheduled Castes and Scheduled Tribes_ 19. Amendment of the Scheduled Castes Order. 20. Amendment of the Scheduled Tribes Order. PART IV HIGH COURT 21. High Court of Chhattisgarh. 22. Judges of Chhattisgarh High Court. 23. Jurisdiction of Chhattisgarh High Court. 24. Special provision relating to Bar Council and advocates. 25. Practice and procedure in Chhattisgarh High Court. 26. Custody of seal of Chhattisgarh High Court. 27. Form of writs and other processes. 28 P f J d ----- SECTIONS 29. Procedure as to appeals to Supreme Court. 30. Transfer of proceedings from Madhya Pradesh High Court to Chhattisgarh High Court. 31. Right to appear or to act in proceedings transferred to Chhattisgarh High Court. 32. Interpretation. 33. Saving. PART V AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES 34. Authorisation of expenditure of Chhattisgarh State. 35. Reports relating to accounts of Madhya Pradesh State. 36. Distribution of revenue. PART VI APPORTIONMENT OF ASSETS AND LIABILITIES 37. Application of Part. 38. Land and goods. 39. Treasury and bank balances. 40. Arrears of taxes. 41. Right to recover loans and advances. 42. Investments and credits in certain funds. 43. Assets and liabilities of State undertaking. 44. Public Debt. 45. Floating loans. 46. Refund of taxes collected in excess. 47. Deposits, etc. 48. Provident fund. 49. Pensions. 50. Contracts. 51. Liability in respect of actionable wrong. 52. Liability as guarantor. 53. Items in suspense. 54. Residuary provision. 55. Apportionment of assets or liabilities by agreement. 56. Power of Central Government to order allocation or adjustment in certain cases. 57. Certain expenditure to be charged on Consolidated Fund. PART VII PROVISIONS AS TO CERTAIN CORPORATIONS 58. Provisions as to Madhya Pradesh State Electricity Board, State Road Transport Corporation and State Warehousing Corporation, etc. 59. Provisions as to Madhya Pradesh State Financial Corporation. 60. Provisions as to certain companies. 61. Functioning of organisation, registered society or trust incorporated on behest of State Government. 62. General provisions as to statutory corporations. 63. Temporary provisions as to continuance of certain existing road transport permits. 64. Special provisions relating to retrenchment compensation in certain cases. 65. Special provisions as to income-tax. 66. Continuance of facilities in certain State institutions. ----- PART VIII PROVISIONS AS TO SERVICES SECTIONS 67. Provisions relating to All-India Services. 68. Provisions relating to services in Madhya Pradesh and Chhattisgarh. 69. Provisions relating to other services. 70. Provisions as to continuance of officers in same post. 71. Advisory Committees. 72. Power of Central Government to give directions. 73. Provisions as to State Public Service Commission. 74. Jurisdiction of the Commissions, authorities and tribunals. PART IX MANAGEMENT AND DEVELOPMENT OF POWER AND WATER RESOURCES 75. Management of power and water supply in certain cases. 76. Inter-State River Water Board. PART X LEGAL AND MISCELLANEOUS PROVISIONS 77. Amendment of Act 37 of 1956. 78. Territorial extent of laws. 79. Power to adapt laws. 80. Power to construe laws. 81. Power to name authorities, etc., for exercising statutory functions. 82. Legal proceedings. 83. Transfer of pending proceedings. 84. Right of pleaders to practise in certain cases. 85. Effect of provisions of the Act inconsistent with other laws. 86. Power to remove difficulties. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. THE FOURTH SCHEDULE. THE FIFTH SCHEDULE. THE SIXTH SCHEDULE. THE SEVENTH SCHEDULE. THE EIGHTH SCHEDULE. ----- # THE MADHYA PRADESH REORGANISATION ACT, 2000 ACT NO. 28 OF 2000 [25th August, 2000.] # An Act to provide for the reorganisation of the existing State of Madhya Pradesh and for matters connected therewith. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— PART I PRELIMINARY **1. Short title.—This Act may be called the Madhya Pradesh Reorganisation Act, 2000.** 2. Definitions.—In this Act, unless the context otherwise requires,— (a) “appointed day” means the day[1] which the Central Government may, by notification in the Official Gazette, appoint; (b) “article” means an article of the Constitution; (c) “assembly constituency”, “council constituency” and “parliamentary constituency” have the same meanings as in the Representation of the People Act, 1950 (43 of 1950); (d) “Election Commission” means the Election Commission appointed by the President under article 324; (e) “existing State of Madhya Pradesh” means the State of Madhya Pradesh as existing immediately before the appointed day; (f) “law” includes any enactment, ordinance, regulation, order, bye-law, rule, scheme, notification or other instrument having, immediately before the appointed day, the force of law in the whole or in any part of the existing State of Madhya Pradesh; (g) “notified order” means an order published in the Official Gazette; (h) “population ratio” in relation to the States of Madhya Pradesh and Chhattisgarh means the ratio of 485.7 : 176.2; (i) “sitting member”, in relation to either House of Parliament or of the Legislature of the existing State of Madhya Pradesh means a person who immediately before the appointed day, is a member of that House; (j) “successor State”, in relation to the existing State of Madhya Pradesh, means the State of Madhya Pradesh or Chhattisgarh; (k) “transferred territory” means the territory which on the appointed day is transferred from the existing State of Madhya Pradesh to the State of Chhattisgarh; (l) “treasury” includes a sub-treasury; and (m) any reference to a district, tehsil or other territorial division of the existing State of Madhya Pradesh shall be construed as a reference to the area comprised within that territorial division on the appointed day. PART II REORGANISATION OF THE STATE OF MADHYA PRADESH **3. Formation of Chhattisgarh State.—On and from the appointed day, there shall be formed a new** State to be known as the State of Chhattisgarh comprising the following territories of the existing State of Madhya Pradesh, namely:— Bastar, laspur, Dantewada, Dhamtari, Durg, Janjgir-Champa, Jashpur, Kanker, Kawardha, Korba, Koria, Mahasamund, Raigarh, Raipur, Rajnandgaon and Surguja districts, 1 1 N b 2000 _id_ ifi i N S O 827(E) d d 14 h S b 2000 G f I di E di ----- and thereupon the said territories shall cease to form part of the existing State of Madhya Pradesh. **4.** **State of Madhya Pradesh and territorial divisions thereof.—On and from the appointed day,** the State of Madhya Pradesh shall comprise the territories of the existing State of Madhya Pradesh other than those specified in section 3. **5.** **Amendment of the First Schedule to the Constitution.—On and from the appointed day, in the** First Schedule to the Constitution, under the heading “I. THE STATES”,— (a) in the paragraph relating to the territories of the State of Madhya Pradesh, after the words, brackets and figures, “the Rajasthan and Madhya Pradesh (Transfer of Territories) Act, 1959 (47 of 1959)”, the following shall be added, namely:— “but excluding the territories specified in section 3 of the Madhya Pradesh Reorganisation Act, 2000.”; (b) after entry 25, the following entry shall be inserted, namely:— **“26. Chhattisgarh: The territories specified in section 3 of the Madhya Pradesh** Reorganisation Act, 2000.”. **6. Saving powers of the State Government.—Nothing in the foregoing provisions of this Part shall** be deemed to affect the power of the Government of Madhya Pradesh or Chhattisgarh to alter, after the appointed day, the name, area or boundaries of any district or other territorial division in the State. PART III REPRESENTATION IN THE LEGISLATURES _The Council of States_ **7. Amendment of the Fourth Schedule to the Constitution.—On and from the appointed day, in** the Fourth Schedule to the Constitution, in the Table,— (a) entries 9 to 27 shall be renumbered as entries 10 to 28 respectively; (b) in entry 8, for the figures “16”, the figures “11 “ shall be substituted; (c) after entry 8, the following entry shall be inserted, namely:— “9. Chhattisgarh ……………………5.”. **8. Allocation of sitting members.—(1) On and from the appointed day, the sixteen sitting members** of the Council of States representing the existing State of Madhya Pradesh, shall be deemed to have been elected to fill the seats allotted to the States of Madhya Pradesh and Chhattisgarh, as specified in the First Schedule to this Act. (2) The term of office of such sitting members shall remain unaltered. _The House of the People_ **9.** **Representation in the House of the People.—On and from the appointed day, there shall be** allocated 29 seats to the successor State of Madhya Pradesh, and 11 to the successor State of Chhattisgarh, in the House of the People, and the First Schedule to the Representation of the People Act, 1950 (43 of 1950) shall be deemed to be amended accordingly. **10. Delimitation of Parliamentary and Assembly constituencies.—On and from the appointed day,** the Delimitation of Parliamentary and Assembly Constituencies Order, 1976, shall stand amended as directed in the Second Schedule to this Act. **11. Provision as to sitting members.—(1) Every sitting member of the House of the People** representing a constituency which, on the appointed day by virtue of the provisions of section 10, stands allotted, with or without alteration of boundaries, to the successor States of Madhya Pradesh or Chhattisgarh, shall be deemed to have been elected to the House of the People by that constituency as so allotted. (2) The term of office of such sitting members shall remain unaltered. ----- _The Legislative Assembly_ **12.** **Provisions as to Legislative Assemblies.—(1) The number of seats as on the appointed day in** the Legislative Assemblies of the States of Madhya Pradesh and Chhattisgarh shall be two hundred and thirty and ninety respectively. (2) In the Second Schedule to the Representation of the People Act, 1950 (43 of 1950), under heading “I. States”,— (a) entries 5 to 25 shall be renumbered as entries 6 to 26 respectively; (b) after entry 4, the following entry shall be inserted, namely :— “1 5 5. Chhattisgarh……………………………………………………….………..90.”; (c) in entry 13, as so renumbered, for the figures “320”, the figures “230” shall be substituted. **13.** **Allocation of sitting members.—(1) Every sitting member of the Legislative Assembly of the** existing State of Madhya Pradesh elected to fill a seat in that Assembly from a constituency which on the appointed day by virtue of the provisions of section 10 stands allotted, with or without alteration of boundaries, to the State of Chhattisgarh shall, on and from that day, cease to be a member of the Legislative Assembly of Madhya Pradesh and shall be deemed to have been elected to fill a seat in the Legislative Assembly of Chhattisgarh from that constituency so allotted. (2) All other sitting members of the Legislative Assembly of the existing State of Madhya Pradesh shall continue to be members of the Legislative Assembly of that State and any such sitting member representing a constituency the extent, or the name and extent of which are altered by virtue of the provisions of section 9 shall be deemed to have been elected to the Legislative Assembly of Madhya Pradesh by that constituency as so altered. (3) Notwithstanding anything contained in any other law for the time being in force, the Legislative Assemblies of Madhya Pradesh and Chhattisgarh shall be deemed to be duly constituted on the appointed day. (4) The sitting member of the Legislative Assembly of the existing State of Madhya Pradesh nominated to that Assembly under Article 333 to represent the Anglo-Indian community shall be deemed to have been nominated to represent the said community in the Legislative Assembly of Madhya Pradesh under that Article. **14.** **Duration of Legislative Assemblies.—The period of five years referred to in clause (1) of** article 172, shall, in the case of Legislative Assembly of the State of Madhya Pradesh and the State of Chhattisgarh be deemed to have commenced on the date on which it actually commenced in the case of Legislative Assembly of the existing State of Madhya Pradesh. **15.** **Speakers and Deputy Speakers.—(1) The persons who immediately before the appointed day** are the Speaker and Deputy Speaker of the Legislative Assembly of the existing State of Madhya Pradesh shall continue to be the Speaker and Deputy Speaker respectively of that Assembly on and from that day. (2) As soon as may be after the appointed day, the Legislative Assembly of the successor State of Chhattisgarh shall choose two members of that Assembly to be respectively Speaker and Deputy Speaker thereof and until they are so chosen, the duties of the office of the Speaker shall be performed by such member of the Assembly as the Governor may appoint for the purpose. **16.** **Rules of procedure.—The rules of procedure and conduct of business of the Legislative** Assembly of Madhya Pradesh as in force immediately before the appointed day shall, until rules are made under clause (1) of article 208, be the rules of procedure and conduct of business of the Legislative Assembly of the State of Chhattisgarh, subject to such modifications and adaptations as may be made therein by the Speaker thereof. ----- _Delimitation of constituencies_ **17.** **Delimitation of constituencies.—(1) For the purpose of giving effect to the provisions of section** 12, the Election Commission shall determine in the manner hereinafter provided— (a) the number of seats to be reserved for the Scheduled Castes and the Scheduled Tribes in the Legislative Assemblies of the States of Madhya Pradesh and Chhattisgarh, respectively having regard to the relevant provisions of the Constitution; (b) the assembly constituencies into which each State referred to in clause (a) shall be divided, the extent of each of such constituencies and in which of them seats shall be reserved for the Scheduled Castes or for the Scheduled Tribes; and (c) the adjustments in the boundaries and description of the extent of the parliamentary constituencies in each State referred to in clause (a) that may be necessary or expedient. (2) In determining the matters referred to in clauses (b) and (c) of sub-section (1), the Election Commission shall have regard to the following provisions, namely:— (a) all the constituencies shall be single-member constituencies; (b) all constituencies shall, as far as practicable, be geographically compact areas, and in delimiting them, regard shall be had to physical features, existing boundaries of administrative units, facilities of communication and conveniences to the public; and (c) constituencies in which seats are reserved for the Scheduled Castes and the Scheduled Tribes shall, as far as practicable, be located in areas where the proportion of their population to the total population is the largest. (3) The Election Commission shall, for the purpose of assisting it in the performance of its functions under sub-section (1), associate with itself as associate members, five persons as the Central Government may, by order specify, being persons who are members of the Legislative Assembly of the State or of the House of the People representing the State: Provided that none of the associate members shall have a right to vote or to sign any decision of the Election Commission. (4) If, owing to death or resignation, the office of an associate member falls vacant, it shall be filled as far as practicable, in accordance with the provisions of sub-section (3). (5) The Election Commission shall— (a) publish its proposals for the delimitation of constituencies together with the dissenting proposals, if any, of any associate member who desires publication thereof in the Official Gazette and in such other manner as the Commission may consider fit, together with a notice inviting objections and suggestions in relation to the proposals and specifying a date on or after which the proposals will be further considered by it; (b) consider all objections and suggestions which may have been received by it before the date so specified; and (c) after considering all objections and suggestions which may have been received by it before the date so specified, determine by one or more orders the delimitation of constituencies and cause such order or orders to be published in the Official Gazette; and upon such publication, the order or orders shall have the full force of law and shall not be called in question in any court. (6) As soon as may be after such publication, every such order relating to assembly constituencies shall be laid before the Legislative Assembly of the concerned State. (7) The delimitation of constituencies in the States of Madhya Pradesh and Chhattisgarh shall be determined on the basis of the published figures of the census taken in the year 1971. **18.** **Power of the Election Commission to maintain Delimitation Orders up-to-date.—(1) The** Election Commission may, from time to time, by notification in the Official Gazette,— (a) correct any printing mistakes in any order made under section 17 or any error arising therein from inadvertent slip or omission; and ----- (b) where the boundaries or name of any territorial division mentioned in any such order or orders is or are altered, make such amendments as appear to it to be necessary or expedient for bringing such order up-to-date. (2) Every notification under this section relating to an assembly constituency shall be laid, as soon as may be after it is issued, before the concerned Legislative Assembly. _Scheduled Castes and Scheduled Tribes_ **19. Amendment of the Scheduled Castes Order.—On and from the appointed day, the Constitution** (Scheduled Castes) Order, 1950, shall stand amended as directed in the Third Schedule. **20. Amendment of the Scheduled Tribes Order.—On and from the appointed day, the Constitution** (Scheduled Tribes) Order, 1950, shall stand amended as directed in the Fourth Schedule. PART IV HIGH COURT **21.** **High Court of Chhattisgarh.—(1) As from the appointed day, there shall be a separate High** Court for the State of Chhattisgarh (hereinafter referred to as “the High Court of Chhattisgarh”) and the High Court of Madhya Pradesh shall become the High Court for the State of Madhya Pradesh (hereinafter referred to as the High Court of Madhya Pradesh). (2) The principal seat of High Court of Chhattisgarh shall be at such place as the President may, by notified order, appoint. (3) Notwithstanding anything contained in sub-section (2), the Judges and Division Courts of the High Court of Chhattisgarh may sit at such other place or places in the State of Chhattisgarh other than its principal seat as the Chief Justice may, with the approval of the Governor of Chhattisgarh, appoint. **22. Judges of Chhattisgarh High Court.—(1) Such of the Judges of the High Court of Madhya** Pradesh holding office immediately before the appointed day as may be determined by the President shall on that day cease to be Judges of the High Court of Madhya Pradesh and become Judges of the High Court of Chhattisgarh. (2) The persons who by virtue of sub-section (1) become Judges of the High Court of Chhattisgarh shall, except in the case where any such person is appointed to be the Chief Justice of that High Court, rank in that Court according to the priority of their respective appointments as Judges of the High Court of Madhya Pradesh. **23.** **Jurisdiction of Chhattisgarh High Court.—The High Court of Chhattisgarh shall have, in** respect of any part of the territories included in the State of Chhattisgarh, all such jurisdiction, powers and authority as, under the law in force immediately before the appointed day, are exercisable in respect to that part of the said territories by the High Court of Madhya Pradesh. **24.** **Special provision relating to Bar Council and advocates.—On and from the appointed day, in** the Advocates Act, 1961 (25 of 1961) in section 3, in sub-section (1), in clause (a), for the words “and Madhya Pradesh”, the words “Madhya Pradesh and Chhattisgarh” shall be substituted. (2) Any person who immediately before the appointed day is an Advocate on the roll of the Bar Council of the existing State of Madhya Pradesh may give his option in writing, within one year from the appointed day to the Bar Council of such existing State, to transfer his name on the roll of the Bar Council of Chhattisgarh and notwithstanding anything contained in the Advocates Act, 1961 (25 of 1961) and the rules made thereunder, on such option so given his name shall be deemed to have been transferred on the roll of the Bar Council of Chhattisgarh with effect from the date of the option so given for the purposes of the said Act and the rules made thereunder. (3) The persons other than the Advocates who are entitled immediately before the appointed day, to practise in the High Court of Madhya Pradesh or any subordinate court thereof shall, on and after the appointed day, be recognised as such persons entitled also to practise in the High Court of Chhattisgarh or any subordinate court thereof, as the case may be. (4) The right of audience in the High Court of Chhattisgarh shall be regulated in accordance with the like principles as immediately before the appointed day are in force with respect to the right of audience i th Hi h C t f M dh P d h ----- **25.** **Practice and procedure in Chhattisgarh High Court.—Subject to the provisions of this Part,** the law in force immediately before the appointed day with respect to practice and procedure in the High Court of Madhya Pradesh shall, with the necessary modifications, apply in relation to the High Court of Chhattisgarh, and accordingly, the High Court of Chhattisgarh shall have all such powers to make rules and orders with respect to practice and procedure as are immediately before the appointed day exercisable by the High Court of Madhya Pradesh: Provided that any rules or orders which are in force immediately before the appointed day with respect to practice and procedure in the High Court of Madhya Pradesh shall, until varied or revoked by rules or orders made by the High Court of Chhattisgarh, apply with the necessary modifications in relation to practice and procedure in the High Court of Chhattisgarh as if made by that Court. **26.** **Custody of seal of Chhattisgarh High Court.—The law in force immediately before the** appointed day with respect to the custody of the seal of the High Court of Madhya Pradesh shall, with the necessary modifications, apply with respect to the custody of the seal of the High Court of Chhattisgarh. **27. Form of writs and other processes.—The law in force immediately before the appointed day** with respect to the form of writs and other processes used, issued or awarded by the High Court of Madhya Pradesh shall, with the necessary modifications, apply with respect to the form of writs and other processes used, issued or awarded by the High Court of Chhattisgarh. **28.** **Powers of Judges.—The law in force immediately before the appointed day relating to the** powers of the Chief Justice, Single Judge and Division Courts of the High Court of Madhya Pradesh and with respect to all matters ancillary to the exercise of those powers shall, with the necessary modifications, apply in relation to the High Court of Chhattisgarh. **29.** **Procedure as to appeals to Supreme Court.—The law in force immediately before the** appointed day relating to appeals to the Supreme Court from the High Court of Madhya Pradesh and the Judges and division courts thereof shall, with the necessary modifications, apply in relation to the High Court of Chhattisgarh. **30. Transfer of proceedings from Madhya Pradesh High Court to Chhattisgarh High Court.—** (1) Except as hereinafter provided, the High Court of Madhya Pradesh shall, as from the appointed day, have no jurisdiction in respect of the transferred territory. (2) Such proceedings pending in the High Court of Madhya Pradesh immediately before the appointed day as are certified, whether before or after that day, by the Chief Justice of that High Court, having regard to the place of accrual of the cause of action and other circumstances, to be proceedings which ought to be heard and decided by the High Court of Chhattisgarh shall, as soon as may be after such certification, be transferred to the High Court of Chhattisgarh. (3) Notwithstanding anything contained in sub-sections (1) and (2) of this section or in section 23, but save as hereinafter provided, the High Court of Madhya Pradesh shall have, and the High Court of Chhattisgarh shall not have, jurisdiction to entertain, hear or dispose of appeals, applications for leave to the Supreme Court, applications for review and other proceedings where any such proceedings seek any relief in respect of any order passed by the High Court of Madhya Pradesh before the appointed day: Provided that if after any such proceedings have been entertained by the High Court of Madhya Pradesh, it appears to the Chief Justice of that High Court that they ought to be transferred to the High Court of Chhattisgarh, he shall order that they shall be so transferred, and such proceedings shall thereupon be transferred accordingly. (4) Any order made by the High Court of Madhya Pradesh— (a) before the appointed day, in any proceedings transferred to the High Court of Chhattisgarh by virtue of sub-section (2); or (b) in any proceedings with respect to which the High Court of Madhya Pradesh retains jurisdiction by virtue of sub-section (3), shall for all purposes have effect, not only as an order of the High Court of Madhya Pradesh, but also as an order made by the High Court of Chhattisgarh. **31. Right to appear or to act in proceedings transferred to Chhattisgarh High Court.—Any** person, who, immediately before the appointed day, is an Advocate entitled to practise or any other ----- proceedings transferred from that High Court to the High Court of Chhattisgarh under section 30, shall have the right to appear in the High Court of Chhattisgarh in relation to those proceedings. **32.** **Interpretation.—For the purposes of section 30—** (a) proceedings shall be deemed to be pending in a Court until that Court has disposed of all issues between the parties, including any issues with respect to the taxation of the costs of the proceedings and shall include appeals, applications for leave to the Supreme Court, applications for review, petitions for revision and petitions for writs; and (b) references to a High Court shall be construed as including references to a Judge or division court thereof, and references to an order made by a Court or a Judge shall be construed as including references to a sentence, judgment or decree passed or made by that Court or Judge. **33. Saving.—Nothing in this Part shall affect the application to the High Court of Chhattisgarh of any** provisions of the Constitution, and this Part shall have effect subject to any provision that may be made on or after the appointed day with respect to that High Court by any Legislature or other authority having power to make such provision. PART V AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES **34.** **Authorisation of expenditure of Chhattisgarh State.—The Governor of Madhya Pradesh may,** at any time before the appointed day, authorise such expenditure from the Consolidated Fund of the State of Chhattisgarh as he deems necessary for any period not more than six months beginning with the appointed day pending the sanction of such expenditure by the Legislative Assembly of the State of Chhattisgarh: Provided that the Governor of Chhattisgarh may, after the appointed day, authorise such further expenditure as he deems necessary from the Consolidated Fund of the State of Chhattisgarh for any period not extending beyond the said period of six months. **35.** **Reports relating to accounts of Madhya Pradesh State.—(1) The reports of the Comptroller** and Auditor-General of India referred to in clause (2) of article 151 relating to the accounts of the State of Madhya Pradesh in respect of any period prior to the appointed day shall be submitted to the Governor of each of the successor States of Madhya Pradesh and Chhattisgarh who shall cause them to be laid before the Legislature of that State. (2) The President may by order— (a) declare any expenditure incurred out of the Consolidated Fund of Madhya Pradesh on any service in respect of any period prior to the appointed day during the financial year or in respect of any earlier financial year in excess of the amount granted for that service and for that year as disclosed in the reports referred to in sub-section (1) to have been duly authorised; and (b) provide for any action to be taken on any matter arising out of the said reports. **36.** **Distribution of revenue.—The President shall, by order, determine the share of the States of** Madhya Pradesh and Chhattisgarh in the total amount payable to the existing State of Madhya Pradesh on the recommendation of the Finance Commission constituted under article 280 of the Constitution, in such manner as he thinks fit. PART VI APPORTIONMENT OF ASSETS AND LIABILITIES **37.** **Application of Part.—(1) The provisions of this Part shall apply in relation to the apportionment** of the assets and liabilities of the State of Madhya Pradesh immediately before the appointed day. (2) The successor State shall be entitled to receive benefits arising out of the decisions taken by the predecessor State and the successor States shall be liable to bear the financial liabilities arising out of the decision taken by the existing State of Madhya Pradesh. (3) The apportionment of assets and liabilities would be subject to such financial adjustment as may be necessary to secure just, reasonable and equitable apportionment of the assets and liabilities amongst th St t ----- (4) Any dispute regarding the amount of financial assets and liabilities shall be settled through mutual agreement, failing which by order by the Central Government on the advice of the Comptroller and Auditor-General of India. **38.** **Land and goods.—(1) Subject to the other provisions of this Part, all land and all stores, articles** and other goods belonging to the existing State of Madhya Pradesh shall,— (a) if within the transferred territory, pass to the State of Chhattisgarh; or (b) in any other case, remain the property of the State of Madhya Pradesh: Provided that any land, stores, articles or other goods may be distributed otherwise than in accordance with the situation of such land, stores, articles or goods by mutual agreement between the successor States, failing which the Central Government may, on the request of any of the Governments of the successor States and after consulting both the Governments of the successor States, issue directions for the just and equitable distribution of such land, stores, articles or goods between the successor States and the land, articles or goods shall accordingly pass to the successor States: Provided further that in case of the distribution, of any land, stores, articles and goods or class of goods under this sub-section located outside the existing State of Madhya Pradesh, such distribution shall be made through mutual agreement arrived at between the Governments of the successor States for that purpose, failing which the Central Government may, on request by any of the Governments of the successor States, after consulting both the Governments of the successor States, issue such direction as it may deem fit for the distribution of such land, stores, articles and goods or class of goods, as the case may be, under this sub-section. (2) Stores held for specific purposes, such as use or utilisation in particular institutions, workshops or undertakings or on particular works under construction, shall pass to the successor States in whose territories such institutions, workshops, undertakings or works are located. (3) Stores relating to the Secretariat and offices of Heads of Departments having jurisdiction over the whole of the existing State of Madhya Pradesh shall be divided between the successor States in accordance with the mutual agreement arrived at between the Government of the successor States for that purpose, failing which the Central Government may, on request by any of the Governments of the successor States, after consulting both the Governments of the successor States, issue such direction as it may deem fit for the distribution of such stores or any part of such stores, as the case may be. (4) Any other unissued stores of any class in the existing State of Madhya Pradesh shall be divided between the successor States in proportion to the total stores of that class purchased in the period of three years prior to the appointed day, for the territories of the existing State of Madhya Pradesh included respectively in each of the successor States: Provided that where such proportion cannot be ascertained in respect of any class of stores or where the value of any class of such stores does not exceed rupees ten thousand, that class of stores shall be divided between the successor States according to the population ratio. (5) In this section, the expression “land” includes immovable property of every kind and any rights in or over such property, and the expression “goods” does not include coins, bank notes and currency notes. **39.** **Treasury and bank balances.—The total of the cash balances in all treasuries of the State of** Madhya Pradesh and the credit balances of the State with Reserve Bank of India, the State Bank of India or any other bank immediately before the appointed day shall be divided between the States of Madhya Pradesh and Chhattisgarh according to the population ratio: Provided that for the purposes of such division, there shall be no transfer of cash balances from any treasury to any other treasury and the apportionments shall be effected by adjusting the credit balances of the two States in the books of the Reserve Bank of India on the appointed day: Provided further that if the State of Chhattisgarh has no account on the appointed day with the Reserve Bank of India, the adjustment shall be made in such manner as the Central Government may, by order, direct. **40.** **Arrears of taxes.—The right to recover arrears of any tax or duty on property, including arrears** of land revenue, shall belong to the successor State in which the property is situated, and the right to ----- recover arrears of any other tax or duty shall belong to the successor State in whose territories the place of assessment of that tax or duty is included on the appointed day. **41.** **Right to recover loans and advances.—(1) The right of the existing State of Madhya Pradesh to** recover any loans or advances made before the appointed day to any local body, society, agriculturist or other person in an area within that State shall belong to the successor State in which that area is included on that day. (2) The right of the existing State of Madhya Pradesh to recover any loans or advances made before the appointed day to any person or institution outside that State shall belong to the State of Madhya Pradesh: Provided that any sum recovered in respect of any such loan or advance shall be divided between the States of Madhya Pradesh and Chhattisgarh according to the population ratio. **42.** **Investments and credits in certain funds.—(1) The securities held in respect of the investments** made from Cash Balances Investment Account or from any Fund in the Public Account of the existing State of Madhya Pradesh as specified in the Fifth Schedule to this Act shall be apportioned in the ratio of population of the successor States: Provided that the securities held in investments made from the Calamity Relief Fund of the existing State of Madhya Pradesh shall be divided in the ratio of the area of the territories occupied by the successor States: Provided further that the balance in the Reserve Funds in the Public Account of Madhya Pradesh created wholly out of appropriations from the Consolidated Fund of the existing State of Madhya Pradesh, to the extent the balances have not been invested outside Government account, shall not be carried forward to similar Reserve Funds in the Public Account of, successor States: Provided also that the balances in any other Reserve Funds, excluding those specified in sub-section (2), shall be allocated between the States of Madhya Pradesh and Chhattisgarh in the ratio of population of those States. (2) The investments of the existing State of Madhya Pradesh immediately before the appointed day in any special fund the objects of which are confined to a local area shall belong to the State in which that area is included on the appointed day. (3) The investments of the existing State of Madhya Pradesh immediately before the appointed day in any private, commercial or industrial undertaking, in so far as such investments have not been made or are deemed not to have been made from the cash balance investment account, shall pass to the State in which the principal seat of business of the undertaking is located. (4) Where any body corporate constituted under a Central Act, State Act or Provincial Act for the existing State of Madhya Pradesh or any part thereof has, by virtue of the provisions of Part II of this Act, become an inter-State body corporate, the investments in, or loans or advances to, any such body corporate by the existing State of Madhya Pradesh made before the appointed day shall, save as otherwise expressly provided by or under this Act, be divided between the States of Madhya Pradesh and Chhattisgarh in the same proportion in which the assets of the body corporate are divided under the provisions of this Part. **43. Assets and liabilities of State undertaking.—(1) The assets and liabilities relating to any** undertaking of the existing State of Madhya Pradesh whether directly owned or through a body corporate constituted or incorporated or registered under any Central, State or Provincial Act, shall,— (a) if exclusively located in a successor State, pass to the successor State, and where a depreciation reserve is maintained by the existing State of Madhya Pradesh for such undertaking, the securities held in respect of investment made from that fund shall also pass to such successor State; (b) where any such undertaking or part thereof is located, in more than one successor State, the assets, liabilities and securities shall be divided in such manner as may be agreed upon between the successor States within a period of two years from the appointed day or in failure of such agreement as the Central Government may by order direct. (2) An agreement entered into between the successor States, or order made by the Central G d b i (1) id f h di l i f h d ki f ----- re-employment of any employee of the undertaking to or by the successor States, subject to the provisions of section 62. (3) An agreement entered into between the successor States, or order made by the Central Government under sub-section (1) may also provide for the transfer of the assets and liabilities which would otherwise have passed to a successor State to any other undertaking of that successor State; and any employee of the undertaking referred to in sub-section (1), who would otherwise have been transferred to or re-employed by a successor State, may be transferred to or be re-employed by such undertaking instead of that successor State. **44.** **Public Debt.—(1) All liabilities on account of Public Debt and Public Account of the existing** State of Madhya Pradesh outstanding immediately before the appointed day shall be apportioned in the ratio of population of the successor States unless a different mode of apportionment is provided under the provisions of this Act. (2) The individual items of liabilities to be allocated to the successor States and the amount of contribution required to be made by one successor State to another shall be such as may be ordered by the Central Government in consultation with the Comptroller and Auditor-General of India: Provided that till such orders are issued, the liabilities on account of Public Debt and Public Account of the existing State of Madhya Pradesh shall continue to be the liabilities of the successor State of Madhya Pradesh. (3) The liability on account of loans raised from any source and re-lent by the existing State of Madhya Pradesh to such entities as may be specified by the Central Government and whose area of operation is confined to either of the successor States shall devolve on the respective States as specified in sub-section (4). (4) The Public Debt of the existing State of Madhya Pradesh attributable to loan taken from any source for the express purpose of re-lending the same to a specific institution and outstanding immediately before the appointed day shall— (a) if re-lent to any local body, body corporate or other institution in any local area, be the debt of the State in which the local area is included on the appointed day; or (b) if re-lent to the Madhya Pradesh State Electricity Board, the Madhya Pradesh State Road Transport Corporation, or the Madhya Pradesh Housing Board or any other institution which becomes an inter-State institution on the appointed day, be divided between the States of Madhya Pradesh and Chhattisgarh in the same proportion in which the assets of such body corporate or institution are divided under the provisions of Part VII of this Act. (5) Where a sinking fund or a depreciation fund is maintained by the existing State of Madhya Pradesh for repayment of any loan raised by it, the securities held in respect of investments made from that fund shall be divided between the successor States of Madhya Pradesh and Chhattisgarh in the same proportion in which the total public debt is divided between the two States under this section. (6) In this section, the expression “Government security” means a security, created and issued by a State Government for the purpose of raising a public loan and having any of the forms specified in, or prescribed under clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944). **45.** **Floating loans.—All liabilities of the existing State of Madhya Pradesh of any floating loan to** provide short term finance to any local body, body corporate or other institution shall be determined by mutual agreement between the successor States, failing which the Central Government shall determine such liability between the successor States in consultation with such States. **46.** **Refund of taxes collected in excess.—The liability of the existing State of Madhya Pradesh to** refund any tax or duty on property, including land revenue, collected in excess shall be the liability of the successor State in whose territories the property is situated, and the liability of the existing State of Madhya Pradesh to refund any other tax or duty collected in excess shall be the liability of the successor State in whose territories the place of assessment of that tax or duty is included. **47.** **Deposits, etc.—(1) The liability of the existing State of Madhya Pradesh in respect of any civil** deposit or local fund deposit shall, as from the appointed day, be the liability of the State in whose area the deposit has been made. ----- (2) The liability of the existing State of Madhya Pradesh in respect of any charitable or other endowment shall, as from the appointed day, be the liability of the State in whose area the institution entitled to the benefit of the endowment is located or of the State to which the objects of the endowment, under the terms thereof, are confined. **48.** **Provident fund.—The liability of the existing State of Madhya Pradesh in respect of the** provident fund account of a Government servant in service on the appointed day shall, as from that day, be the liability of the State to which that Government servant is permanently allotted. **49. Pensions.—The liability of the existing State of Madhya Pradesh in respect of pensions shall pass** to, or be apportioned between the successor States of Madhya Pradesh and Chhattisgarh in accordance with the provisions contained in the Sixth Schedule to this Act. **50.** **Contracts.—(1) Where, before the appointed day, the existing State of Madhya Pradesh has made** any contract in the exercise of its executive power for any purposes of the State, that contract shall be deemed to have been made in the exercise of the executive power— (a) if the purposes of the contract are, on and from the appointed day, exclusive purposes of either of the successor States of Madhya Pradesh and Chhattisgarh, then, of that State; or (b) in any other case, of the State of Madhya Pradesh, all rights and liabilities which have accrued, or may accrue under any such contract shall, to the extent to which they would have been rights or liabilities of the existing State of Madhya Pradesh, be rights or liabilities of the State of Chhattisgarh or the State of Madhya Pradesh, as the case may be: Provided that in any such case as is referred to in clause (b), the initial allocation of rights and liabilities made by this sub-section shall be subject to such financial adjustment as may be agreed upon between the successor States of Madhya Pradesh and Chhattisgarh or in default of such agreement, as the Central Government may, by order, direct. (2) For the purposes of this section, there shall be deemed to be included in the liabilities which have accured or may accrue under any contract— (a) any liability to satisfy an order or award made by any court or other tribunal in proceedings relating to the contract; and (b) any liability in respect of expenses incurred in or in connection with any such proceedings. (3) This section shall have effect subject to the other provisions of this Part relating to the apportionment of liabilities in respect of loans, guarantees and other financial obligations; and bank balances and securities shall, notwithstanding that they partake of the nature of contractual rights, be dealt with under those provisions. **51.** **Liability in respect of actionable wrong.—Where, immediately before the appointed day, the** existing State of Madhya Pradesh is subject to any liability in respect of any actionable wrong other than breach of contract, that liability shall,— (a) if the cause of action arose wholly within the territories which, as from that day, are the territories of either of the successor States of Madhya Pradesh or Chhattisgarh, be a liability of that successor State; and (b) in any other case, be initially a liability of the State of Madhya Pradesh, but subject to such financial adjustment as may be agreed upon between the States of Madhya Pradesh and Chhattisgarh or, in default of such agreement, as the Central Government may, by order, direct. **52.** **Liability as guarantor.—Where, immediately before the appointed day, the existing State of** Madhya Pradesh is liable as guarantor in respect of any liability of a registered co-operative society or other person, that liability of the existing State of Madhya Pradesh shall— (a) if the area of operations of such society or persons is limited to the territories which, as from that day, are the territories of either of the States of Madhya Pradesh or Chhattisgarh, be a liability of that successor State; and (b) in any other case, be initially a liability of the State of Madhya Pradesh, subject to such financial adjustment as may be agreed upon between the States of Madhya Pradesh and Chhattisgarh ----- **53. Items in suspense.—If any item in suspense is ultimately found to affect an asset or liability of** the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance with that provision. **54. Residuary provision.—The benefit or burden of any asset or liability of the existing State of** Madhya Pradesh not dealt with in the foregoing provisions of this Part shall pass to the State of Madhya Pradesh in the first instance, subject to such financial adjustment as may be agreed upon between the States of Madhya Pradesh and Chhattisgarh or, in default of such agreement, as the Central Government may, by order, direct. **55. Apportionment of assets or liabilities by agreement.—Where the successor States of Madhya** Pradesh and Chhattisgarh agree that the asset, liability or benefit or burden of any particular asset or liability should be apportioned between them in a manner other than that provided for in the foregoing provisions of this Part then, notwithstanding anything contained therein, the assets, liability or benefit or burden of that asset or liability shall be apportioned in the manner agreed upon. **56. Power of Central Government to order allocation or adjustment in certain cases.—Where,** by virtue of any of the provisions of this Part, any of the successor States of Madhya Pradesh and Chhattisgarh becomes entitled to any property or obtains any benefits or becomes subject to any liability, and the Central Government is of opinion, on a reference made within a period of three years from the appointed day by either of the States, that it is just and equitable that property or those benefits should be transferred to, or shared with, the other successor State, or that a contribution towards that liability should be made by the other successor State, the said property or benefits shall be allocated in such manner between the two States, or the other State shall make to the State subject to the liability such contribution in respect thereof, as the Central Government may, after consultation with the two State Governments, by order determine. **57.** **Certain expenditure to be charged on Consolidated Fund.—All sums payable either by the** State of Madhya Pradesh or by the State of Chhattisgarh to the other States or by the Central Government to either of those States, by virtue of the provisions of this Act, shall be charged on the Consolidated Fund of the State by which such sums are payable or, as the case may be, the Consolidated Fund of India. PART VII PROVISIONS AS TO CERTAIN CORPORATIONS **58.** **Provisions as to Madhya Pradesh Electricity Board, State Road Transport Corporation and** **State Warehousing Corporation, etc.—(1) The following bodies corporate constituted for the existing** State of Madhya Pradesh, namely:— (a) the State Electricity Board constituted under the Electricity Supply Act, 1948 (54 of 1948); (b) the State Road Transport Corporation established under the Road Transport Corporations Act, 1950 (64 of 1950); and (c) the State Warehousing Corporation established under the Warehousing Corporations Act, 1962 (58 of 1962), shall, on and from the appointed day, continue to function in those areas in respect of which they were functioning immediately before that day, subject to the provisions of this section and arrangements for the functioning of such body corporates as may be mutually agreed upon between the successor States failing which to such directions as may, from time to time, be issued by the Central Government. (2) Any directions issued by the Central Government under sub-section (1) in respect of the Board or the Corporation shall include a direction that the Act under which the Board or the Corporation was constituted shall, in its application to that Board or Corporation, have effect subject to such exceptions and modifications as the Central Government thinks fit. (3) The Board or the Corporation referred to in sub-section (1) shall cease to function as from, and shall be deemed to be dissolved on such date as the Central Government may, by order, appoint; and upon such dissolution, its assets, rights and liabilities shall be apportioned between the successor States of Madhya Pradesh and Chhattisgarh in such manner as may be agreed upon between them within one year ----- of the dissolution of the Board or the Corporation, as the case may be, or if no agreement is reached, in such manner as the Central Government may, by order, determine: Provided that any liabilities of the said Board relating to the unpaid dues of the coal supplied to the Board by any public sector coal company shall be provisionally apportioned between the successor organisations constituted respectively in the successor States of the existing State of Madhya Pradesh or after the date appointed for the dissolution of the Board under this sub-section in such manner as may be agreed upon between the Governments of the successor States within one month of such dissolution or if no agreement is reached, in such manner as the Central Government may, by order, determine subject to reconciliation and finalisation of the liabilities which shall be completed within three months from the date of such dissolution by the mutual agreement between the successor States or failing such agreement by the direction of the Central Government: Provided further that an interest at the rate of two per cent. higher than the Cash Credit interest shall be paid on outstanding unpaid dues of the coal supplied to the Board by the public sector coal company till the liquidation of such dues by the concerned successor organisations constituted in the successor States on or after the date appointed for the dissolution of the Board under this sub-section. (4) Nothing in the preceding provisions of this section shall be construed as preventing the Government of the State of Madhya Pradesh or, as the case may be, the Government of the State of Chhattisgarh from constituting, at any time on or after the appointed day, a State Electricity Board or a State Road Transport Corporation or a State Warehousing Corporation for the State under the provisions of the Act relating to such Board or Corporation; and if such a Board or Corporation is so constituted in either of the States before the dissolution of the Board or the Corporation referred to in sub-section (1),— (a) provision may be made by order of the Central Government enabling the new Board or the new Corporation to take over form the existing Board or Corporation all or any of its undertakings, assets, rights and liabilities in that State, and (b) upon the dissolution of existing Board or Corporation,— (i) any assets, rights and liabilities which would otherwise have passed to that State by or under the provisions of sub-section (3) shall pass to the new Board or the new Corporation instead of to that State; (ii) any employee who would otherwise have been transferred to or re-employed by that State under sub-section (3), read with clause (i) of sub-section (5), shall be transferred to or re-employed by the new Board or the new Corporation instead of to or by that State. (5) An agreement entered into between the successor States under sub-section (3) and an order made by the Central Government under that sub-section or under clause (a) of sub-section (4) may provide for the transfer or re-employment of any employee of the Board or the Corporation referred to in sub-section (1),— (i) to or by the successor States, in the case of an agreement under sub-section (4) or an order made under that sub-section; (ii) to or by the new Board or the new Corporation constituted, under sub-section (4), in the case of an order made under clause (a) of that sub-section, and subject to the provisions of section 64, also for the terms and conditions of service applicable to such employees after such transfer or re-employment. **59.** **Provisions as to Madhya Pradesh State Financial Corporation.—(1) The Madhya Pradesh** State Financial Corporation established under the State Financial Corporation Act, 1951 (63 of 1951) shall, on and from the appointed day, continue to function in those areas in respect of which it was functioning immediately before that day, subject to the provisions of this section and to such directions as may from time to time, be issued by the Central Government after consultation with the Governments of the successor States. (2) Any directions issued by the Central Government under sub-section (1) in respect of the Corporation may include a direction that the said Act, in its application to the Corporation, shall have effect subject to such exceptions and modifications as may be specified in the direction. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Board of Directors f th C ti ith th i l f th C t l G t d h ll if i d b ----- the Central Government, convene at any time after the appointed day a meeting for the consideration of a scheme for the reconstitution or reorganisation or dissolution, as the case may be, of the Corporation, including proposals regarding the formation of new Corporations, and the transfer thereto of the assets, rights and liabilities of the existing Corporation, and if such a scheme is approved at the general meeting by a resolution passed by a majority of the shareholders present and voting, the scheme shall be submitted to the Central Government for its sanction. (4) If the scheme is sanctioned by the Central Government either without modifications or with modifications which are approved at a general meeting, the Central Government shall certify the scheme, and upon such certification, the scheme shall, notwithstanding anything to the contrary contained in any law for the time being in force, be binding on the corporations affected by the scheme as well as the shareholders and creditors thereof. (5) If the scheme is not so approved or sanctioned, the Central Government may refer the scheme to such Judge of the High Court of Madhya Pradesh as may be nominated in this behalf by the Chief Justice thereof, and the decision of the Judge in regard to the scheme shall be final and shall be binding on the corporations affected by the scheme as well as the shareholders and creditors thereof. (6) Nothing in the preceding provisions of this section shall be construed as preventing the Government of the State of Madhya Pradesh and Chhattisgarh from constituting, at any time on or after the appointed day, a State Financial Corporation for that State under the State Financial Corporation Act, 1951 (63 of 1951). **60. Provisions as to certain companies.—(1) Notwithstanding anything contained in the foregoing** provisions of this Part, each of the companies specified in the Seventh Schedule to this Act shall, on and from the appointed day and until otherwise provided for in any law, or in any agreement among the successor States, or in any direction issued by the Central Government, continue to function in the areas in which it was functioning immediately before that day; and the Central Government may, after consultation with the Governments of the successor States, from time to time issue such directions in relation to such functioning as it may deem fit, notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956) or in any other law. (2) Any directions issued under sub-section (1), in respect of a company referred to in that sub section, may include directions— (a) regarding the division of the interests and shares of existing State of Madhya Pradesh in the company among the successor States; (b) requiring the reconstitution of the Board of Directors of the company so as to give adequate representation to both the successor States. **61. Functioning of organisation, registered society or trust incorporated on behest of State** **Government.—(1) Notwithstanding anything contained in the foregoing provisions of this Part or any** other law for the time being in force, any organisation, registered society or trust, incorporated at the behest of the State Government, shall, on and from the appointed day, and until otherwise provided for in any law for the time being in force, or in any agreement between the successor States, or in any direction issued by the Central Government in consultation with the successor States, continue to function in the areas in which it was functioning immediately before that day, and the Central Government may, after consulting the Governments of successor States, issue directions in relation to such functioning. (2) Any directions issued under sub-section (1) may include directions regarding the— (i) reconstitution of the Board of Directors of the organisation, society or trust by whatever name it may be called; or (ii) appointment of the Chief Executive by whatever name it may be called; or (iii) regulations or bye-laws, by whatever name they may be called; or (iv) assessment and apportionment of financial support, if any, provided by the existing State of Madhya Pradesh for meeting fixed charges. **62.** **General provisions as to statutory corporations.—(1) Save as otherwise expressly provided by** the foregoing provisions of this Part, where any body corporate constituted under a Central Act, State Act or Provincia1 Act for the existing State of Madhya Pradesh or any part thereof has, by virtue of the provisions of Part II of this Act, become an inter-State body corporate, then, the body corporate shall, on ----- functioning and operating immediately before that day, subject to such directions as may from time to time be issued by the Central Government, after consultation with the Governments of the successor States, until other provision is made by law in respect of the said body corporate. (2) Any directions issued by the Central Government under sub-section (1) in respect of any such body corporate shall include a direction that any law by which the said body corporate is governed shall, in its application to that body corporate, have effect subject to such exceptions and modifications as may be specified in the direction. **63. Temporary provisions as to continuance of certain existing road transport permits.—(1)** Notwithstanding anything contained in section 88 of the Motor Vehicles Act, 1988 (59 of 1988), a permit granted by the State Transport Authority of the existing State of Madhya Pradesh or any Regional Transport Authority in that State shall, if such permit was, immediately before the appointed day, valid and effective in any area in the transferred territory, be deemed to continue to be valid and effective in that area after that day subject to the provisions of that Act as for the time being in force in that area; and it shall not be necessary for any such permit to be countersigned by the State Transport Authority of Chhattisgarh or any Regional Transport Authority therein for the purpose of validating it for use in such area: Provided that the Central Government may, after consultation with the successor State Government or Governments concerned add to, amend or vary the conditions attached to the permit by the Authority by which the permit was granted. (2) No tolls, entrance fees or other charges of a like nature shall be levied after the appointed day in respect any transport vehicle for its operations in any of the successor States under any such permit, if such vehicle was, immediately before that day, exempt from the payment of any such toll, entrance fees or other charges for its operations in the transferred territory: Provided that the Central Government may, after consultation with the State Government or Governments concerned, authorise the levy of any such toll, entrance fees or other charges, as the case may be. **64. Special provisions relating to retrenchment compensation in certain cases.—Where on** account of the reorganisation of the existing State of Madhya Pradesh under this Act, any body corporate constituted under a Central Act, State Act or Provincial Act, any co-operative society registered under any law relating to co-operative societies or any commercial or industrial undertaking of that State is reconstituted or reorganised in any manner whatsoever or is amalgamated with any other body corporate, co-operative society or undertaking, or is dissolved, and in consequence of such reconstitution, reorganisation, amalgamation or dissolution, any workman employed by such body corporate or in any such co-operative society or undertaking, is transferred to, or re-employed by any other body corporate, or in any other co-operative society or undertaking, then notwithstanding anything contained in section 25F, section 25FF or section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947), such transfer or re-employment shall not entitle him to any compensation under that section: Provided that— (a) the terms and conditions of service applicable to the workman after such transfer or re-employment are not less favourable to the workman than those applicable to him immediately before the transfer or re-employment; (b) the employer in relation to the body corporate, the co-operative society or the undertaking where the workman is transferred or re-employed is, by agreement or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation under section 25F, section 25FF or section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947) on the basis that his service has been continuous and has not been interrupted by the transfer or re-employment. **65. Special provisions as to income-tax.—Where the assets, rights and liabilities of any body** corporate carrying on any business are, under the provisions of this Part, transferred to any other bodies corporate which after the transfer carry on the same business, the losses or profits or gains sustained by the body corporate first mentioned which, but for such transfer, would have been allowed to be carried forward and set off in accordance with the provisions of Chapter VI of the Income-tax Act, 1961 (43 of 1961), shall be apportioned amongst the transferee bodies corporate in accordance with the rules to be made by the Central Government in this behalf and, upon such apportionment, the share of loss allotted to each transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of the ----- said Act, as if the transferee body corporate had itself sustained such loss in a business carried on by it in the years in which these losses were sustained. **66. Continuance of facilities in certain State institutions.—(1) The Government of State of** Madhya Pradesh or Chhattisgarh, as the case may be, shall, in respect of the institutions specified in the Eighth Schedule to this Act, located in that State, continue to provide facilities to the people of the other State which shall not, in any respect, be less favourable to such people than what were being provided to them before the appointed day, for such period and upon such terms and conditions as may be agreed upon between the two State Governments within a period of one year from the appointed day or if no agreement is reached within the said period of one year, then, as may be fixed by order of the Central Government. (2) The Central Government may, at any time within a period of one year from the appointed day, by notification in the Official Gazette, specify in the Eighth Schedule any other institution existing on the appointed day in the States of Madhya Pradesh and Chhattisgarh and on the issue of such notification, the Schedule shall be deemed to be amended by the inclusion of the said institution therein. PART VIII PROVISIONS AS TO SERVICES **67.** **Provisions relating to All India Services.—(1) In this section, the expression “State cadre”,—** (a) in relation to the Indian Administrative Service, has the meaning assigned to it in the Indian Administrative Service (Cadre) Rules, 1954; (b) in relation to the Indian Police Service, has the meaning assigned to it in the Indian Police Service (Cadre) Rules, 1954; (c) in relation to the Indian Forest Service, has the meaning assigned to it in the Indian Forest Service (Cadre) Rules, 1966. (2) In place of the cadres of the Indian Administrative Service, Indian Police Service and Indian Forest Service for the existing State of Madhya Pradesh, there shall, on and from the appointed day, be two separate cadres, one for the State of Madhya Pradesh and the other for the State of Chhattisgarh in respect of each of these services. (3) The initial strength and composition of the State cadres referred to in sub-section (2) shall be such as the Central Government may, by order, determine before the appointed day. (4) The members of each of the said service borne on the Madhya Pradesh cadre thereof immediately before the appointed day shall be allocated to the State cadres of the same service constituted under sub-section (2) in such manner and with effect from such date or dates as the Central Government may, by order, specify. (5) Nothing in this section shall be deemed to affect the operation, on or after the appointed day, of the All-India Service Act, 1951 (61 of 1951) or the rules made thereunder. **68. Provisions relating to services in Madhya Pradesh and Chhattisgarh.—(1) Every person who** immediately before the appointed day is serving in connection with the affairs of the existing State of Madhya Pradesh shall, on and from that day provisionally continue to serve in connection with the affairs of the State of Madhya Pradesh unless he is required, by general or special order of the Central Government to serve provisionally in connection with the affairs of the State of Chhattisgarh: Provided that no direction shall be issued under this section after the expiry of a period of one year from the appointed day. (2) As soon as may be after the appointed day, the Central Government shall, by general or special order, determine the successor State to which every person referred to in sub-section (1) shall be finally allotted for service and the date with effect from which such allotment shall take effect or be deemed to have taken effect. (3) Every person who is finally allotted under the provisions of sub-section (2) to a successor State shall, if he is not already serving therein be made available for serving in the successor State from such date as may be agreed upon between the Governments concerned or in default of such agreement, as may be determined by the Central Government. **69. Provisions relating to other services.—(1) Nothing in this section or section 68 shall be deemed** ----- Constitution in relation to determination of the conditions of service of persons serving in connection with the affairs of the Union or any State: Provided that the conditions of service applicable immediately before the appointed day in the case of any person deemed to have been allocated to the State of Madhya Pradesh or to the State of Chhattisgarh under section 68 shall not be varied to his disadvantage except with the previous approval of the Central Government. (2) All services prior to the appointed day rendered by a person— (a) if he is deemed to have been allocated to any State under section 68, shall be deemed to have been rendered in connection with the affairs of that State; (b) if he is deemed to have been allocated to the Union in connection with the administration of the Chhattisgarh shall be deemed to have been rendered in connection with the affairs of the Union, for the purposes of the rules regulating his conditions of service. (3) The provisions of section 68, shall not apply in relation to members of any All-India Service. **70. Provisions as to continuance of officers in same post.—(1) Every person who, immediately** before the appointed day is holding or discharging duties of any post or office in connection with the affairs of the existing State of Madhya Pradesh in any area which on that day falls within any of the successor States shall continue to hold the same post or office in that successor State, and shall be deemed, on and from that day, to have been duly appointed to the post or office by the Government of, or any other appropriate authority in, that successor State: Provided that nothing in this section shall be deemed to prevent a competent authority, on and from the appointed day, from passing in relation to such person any order affecting the continuance in such post or office. **71.** **Advisory Committees.—The Central Government may, by order establish one or more Advisory** Committees for the purpose of assisting it in regard to— (a) the discharge of any of its functions under this Part; and (b) the ensuring of fair and equitable treatment to all persons affected by the provisions of this Part and the proper consideration of any representations made by such persons. **72.** **Power of Central Government to give directions.—The Central Government may, give such** directions to the State Government of Madhya Pradesh and the State Government of Chhattisgarh as may appear to it to be necessary for the purpose of giving effect to the foregoing provisions of this Part and the State Governments shall comply with such directions. **73.** **Provisions as to State Public Service Commission.—(1) The Public Service Commission for** the existing State of Madhya Pradesh shall, on and from the appointed day, be the Public Service Commission for the State of Madhya Pradesh. (2) The persons holding office immediately before the appointed day as Chairman or other member of the Public Service Commission for the existing State of Madhya Pradesh shall, as from the appointed day, be the Chairman or, as the case may be, the other member of the Public Service Commission for the State of Madhya Pradesh. (3) Every person who becomes Chairman or other member of the Public Service Commission for the State of Madhya Pradesh on the appointed day under sub-section (2), shall— (a) be entitled to receive from the Government of the State of Madhya Pradesh conditions of service not less favourable than those to which he was entitled under the provisions applicable to him; (b) subject to the proviso to clause (2) of article 316, hold office or continue to hold office until the expiration of his term of office as determined under the provisions applicable to him immediately before the appointed day. (4) The report of the Madhya Pradesh Public Service Commission as to the work done by the Commission in respect of any period prior to the appointed day shall be presented under clause (2) of article 323 to the Governors of the States of Madhya Pradesh and Chhattisgarh, and the Governor of the State of Madhya Pradesh shall on receipt of such report cause a copy thereof together with a ----- Commission was not accepted, the reasons for such non-acceptance to be laid before the Legislature of the State of Madhya Pradesh and it shall not be necessary to cause such report or any such memorandum to be laid before the Legislative Assembly of the State of Chhattisgarh. **74.** **Jurisdiction of the Commissions, Authorities and Tribunals.—(1) Notwithstanding anything** contained in any law for the time being in force, every Commission, Authority, Tribunal, University, Board or any other body constituted under a Central Act, State Act or Provincial Act and having jurisdiction over the existing State of Madhya Pradesh shall on and from the appointed day continue to function in the successor State of Madhya Pradesh and also exercise jurisdiction as existed before the appointed day over the State of Chhattisgarh for a maximum period of two years from the appointed day or till such period as is decided by mutual agreement between the successor States— (i) to continue such body as a joint body for the successor States; or (ii) to abolish it, on the expiry of that period, for either of the successor States; or (iii) to constitute a separate Commission, Authority, Tribunal, University, Board or any other body, as the case may be, for the State of Chhattisgarh, whichever is earlier. (2) No suit or other legal proceeding shall be instituted, in case such body is abolished under clause (ii) of sub-section (1), by any employee of such body against the termination of his appointment or for the enforcement of any service conditions or for securing absorption in alternative public employment against the Central Government or any of the successor States. (3) Notwithstanding anything contained in any law for the time being in force or in any judgment, decree or order of any court or Tribunal or contract or agreement, any Chairman or member of any body abolished under clause (ii) of sub-section (1) shall not be entitled to any compensation for the unexpired period of his tenure. (4) Notwithstanding anything contained in this section or any law for the time being in force, the Central Government, shall, in accordance with any mutual agreement between the successor States or if there is no such agreement, after consultation with the Governments of the successor States, issue directions for the resolution of any matter relating to any body referred to in sub-section (1) and falling within the jurisdiction of any of the successor States within any period referred to in sub-section (1). PART IX MANAGEMENT AND DEVELOPMENT OF POWER AND WATER RESOURCES **75.** **Management of power and water supply in certain cases.—(1) Where it appears to the Central** Government that the arrangement in regard to the generation or supply of electric power or the supply of water for any area or in regard to the execution of any project for such generation or supply has been or is likely to be, modified to the disadvantage of that area by reason of the formation of successor States, the Central Government may, after consultation with the successor States, give such directions to the State Government or other authority responsible for the maintenance, so far as practicable, of such arrangement before the appointed day. (2) The Central Government shall within a period of three months from the appointed day, by order, also determine the share of the successor States in the entitlement of the existing State of Madhya Pradesh to power produced by the Central Government undertakings having due regard to the likely disadvantage which might have been occasioned to any successor State as a result of modified arrangements for generation and supply of electric power. **76.** **Inter-State River Water Board.—(1) The Central Government may, as and when it considers** necessary, constitute an inter-State River Water Board, after consultation with the successor States, for the planning and development of inter-State rivers and river valleys. (2) The Inter-State River Board constituted under sub-section (1) may be entrusted with the following functions, namely:— (a) to examine the requirement of funds for various projects according to the programmes laid down for such projects and to advise regarding the apportionment of the expenditure to the State participating to implement such programmes keeping in view the agreement on the sharing of costs; ----- (b) to decide the sharing and withdrawal of water from the reservoirs for irrigation, power and other purposes with a view to securing better use of available water; (c) to determine the programmes of re-settlement of displaced persons as a result of the projects; and (d) to approve and supervise the planning, survey and investigation, preparation of project reports and construction of joint inter-State Projects and their subsequent operation and maintenance. PART X LEGAL AND MISCELLANEOUS PROVISIONS **77.** **Amendment of Act 37 of 1956.—On and from the appointed day, in section 15 of the States** Reorganisation Act, 1956, in clause (b), for the words “Uttar Pradesh and Madhya Pradesh”, the words “Uttar Pradesh, Madhya Pradesh and Chhattisgarh” shall be substituted. **78.** **Territorial extent of laws.—The provisions of Part II of this Act shall not be deemed to have** effected any change in the territories to which any law in force immediately before the appointed day extends or applies, and territorial references in any such law to the State of Madhya Pradesh shall, until otherwise provided by a competent Legislature or other competent authority be constituted as meaning the territories within the existing State of Madhya Pradesh before the appointed day. **79.** **Power to adapt laws.—For the purpose of facilitating the application in relation to the State of** Madhya Pradesh or Chhattisgarh of any law made before the appointed day, the appropriate Government may, before the expiration of two years from that day, by order, make such adaptations and modifications of the law, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to the adaptations and modifications so made until altered, repealed or amended by a competent legislature or other competent authority. _Explanation.—In this Section, the expression “appropriate Government” means as respects any law_ relating to a matter enumerated in the Union List, the Central Government, and as respects any other law in its application to a State, the State Government. **80.** **Power to construe laws.—Notwithstanding that no provision or insufficient provision has been** made under section 79 for the adaptation of a law made before the appointed day, any court, tribunal or authority, required or empowered to enforce such law may, for the purpose of facilitating its application in relation to the State of Madhya Pradesh or Chhattisgarh, construe the law in such manner, without affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority. **81.** **Power to name authorities, etc., for exercising statutory functions.—The Government of the** State of Chhattisgarh, as respects the transferred territory may, by notification in the Officia1 Gazette, specify the authority, officer or person who, on or after the appointed day, shall be competent to exercise such functions exercisable under any law in force on that day as may be mentioned in that notification and such law shall have effect accordingly. **82.** **Legal proceedings.—Where immediately before the appointed day, the existing State of Madhya** Pradesh is a party to any legal proceedings with respect to any property, rights or liabilities subject to apportionment between the States of Madhya Pradesh and Chhattisgarh under this Act, the State of Madhya Pradesh or Chhattisgarh which succeeds to, or acquires a share in, that property or those rights or liabilities by virtue of any provision of this Act shall be deemed to be substituted for the existing State of Madhya Pradesh or added as a party to those proceedings, and the proceedings may continue accordingly. **83.** **Transfer of pending proceedings.—(1) Every proceeding pending immediately before the** appointed day before a court (including High Court), tribunal, authority or officer in any area which on that day falls within the State of Madhya Pradesh shall, if it is a proceeding relating exclusively to the territory, which as from that day are the territories of Chhattisgarh State, stand transferred to the corresponding court, tribunal, authority or officer of the State of Chhattisgarh. (2) If any question arises as to whether any proceeding should stand transferred under sub-section (1), it shall be referred to the High Court of Madhya Pradesh and the decision of that High Court shall be final. ----- (3) In this Section— (a) “proceeding” includes any suit, case or appeal; and (b) “corresponding court, tribunal, authority or officer” in the State of Chhattisgarh means— (i) the court, tribunal, authority or officer in which, or before whom, the proceeding would have laid if it had been instituted after the appointed day; or (ii) in case of doubt, such court, tribunal, authority or officer in the State of Chhattisgarh, as may be determined after the appointed day by the Government of that State or the Central Government, as the case may be, or before the appointed day by the Government of the existing State of Madhya Pradesh to be the corresponding court, tribunal, authority or officer. **84.** **Right of pleaders to practise in certain cases.—Any person who, immediately before the** appointed day, is enrolled as a pleader entitled to practise in any subordinate courts in the existing State of Madhya Pradesh shall, for a period of one year from that day, continue to be entitled to practise in those courts, notwithstanding that the whole or any part of the territories within the jurisdiction of those courts has been transferred to the State of Chhattisgarh. **85. Effect of provisions of the Act inconsistent with other laws.—The provision of this Act shall** have effect notwithstanding anything in consistent therewith contained in any other law. **86. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the President may, by order, do anything not in consistent with such provisions which appears to him to be necessary or expedient for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of a period of three years from the appointed day. (2) Every order made under this section shall be laid, before each House of Parliament. ----- THE FIRST SCHEDULE (See section 8) (1) Of the five sitting members whose term of office will expire on the 9th day of April, 2002, namely Shri [1][Lakkhiram], Shri Surendra Kumar Singh, Shri Sikandar Bakht, Shri [1][Suresh Pachauri] and Shri [1][Abdul Gaiyur Qureshi]; Shri [1][Lakkhiram] and Shri Surendra Kumar Singh shall be deemed to have been elected to fill two of the seats allotted to the State of Chhattisgarh and other three sitting members shall be deemed to have been elected to fill three of the seats allotted to the State of Madhya Pradesh. (2) Of the five sitting members whose term of office will expire on the [1][ the 29th day of June, 2000], namely Shri [1][O. Rajgopal], Shri [1][Dilip Kumar], Shri [1][Jhumuklal], Shri [1][Balkavi] and [1][Sushri Mobal Ribelo]; Shri [1][Dilip Kumar] and Shri [1][Jhumuklal] both shall be deemed to have been elected to fill two of the seats allotted to the State of Chhattisgarh and other three sitting members shall be deemed to have been elected to fill three of the seats allotted to the State of Madhya Pradesh. (3) Of the six members whose term of office will expire on the 2nd day of April, 2006, namely, Shri Arjun Singh, Shri [1][Kailash Chandra], Shri [1][Bhagatram], Shri Hansraj Bhardwaj, Shri P.K. Maheshwari and Shri [1][Vikram Singh], Shri [1][Bhagatram], shall be deemed to have been elected to fill the one of the seats allotted to the State of Chhattisgarh and other five members shall be deemed to have been elected to fill the five seats allotted to the State of Madhya Pradesh. ----- THE SECOND SCHEDULE (See section10) 1. AMENDMENTS TO THE DELIMITATION OF PARLIAMENTARY AND ASSEMBLY CONSTITUENCIES ORDER, 1976 In the Delimitation of Parliamentary and Assembly Constituencies Order, 1976,— 1. in Schedule XII,— (i) In PART A—Parliamentary Constituencies— (a) serial numbers 12 to 22 (both inclusive) and entries relating thereto shall be omitted; (b) in serial number 10, the following figures, words, brackets and letters shall be omitted, namely:— “87-Manendragarh (ST)” and “88-Baikunthpur”. (ii) In PART B—Assembly Constituencies, serial numbers 87 to 176 (both inclusive) and entries relating thereto shall be omitted. 2. after Schedule XIl, the following Schedule shall be inserted, namely:— “SCHEDULE XIIA CHHATTISGARH PART A.—PARLIAMENTARY CONSTITUENCIES Serial No. Name and extent of constituency (1) (2) 1. **Surguja (ST)—2. Baikunthpur, 3. Premnagar (ST), 4. Surajpur (ST), 5. Pal (ST), 6. Samri** (ST), 7. Lundra (ST), 8. Pilkha (ST) 9. Ambikapur (ST) and 10. Sitapur (ST). 2. **Raigarh (ST)—11. Bagicha (ST).12. Jashpur (ST), 13. Tapkar (ST), 14. Pathalgaon (ST),** 15. Dharamjaigarh (ST), 16. Lailunga (ST), 17. Raigarh and 18. Kharsia. 3. **Janjgir—21. Rampur (ST), 22. Katghora, 23. Tanakhar (ST),** [1][32-Masturi (SC)], 33. Sipat, 34. Akaltara, 36. Champa and 37. Sakti. 4. **Bilaspur** **(SC)—1. Manendragarh (ST), 24. Marwahi (ST), 25. Kota, 26. Lormi,** 27. Mungeli (SC), 28. Jarhagaon (SC), 29 Takhatpur, 30. Bilaspur and 31. Bilha. 5. **Sarangarh (SC)—19. Saria, 20. Sarangarh (SC), 35. Pamgarh, 38. Malkharoda (SC),** 39. Chandrapur, 48. Pallari (SC), 49. Kasdol and 50. Bhatgaon (SC). 6. **Raipur—40—Raipur Town, 41. Raipur Rural, 42. Abhanpur, 43. Mandirhasod,** 44. Arang (SC), 45. Dharsiwa, 46. Bhatapara and 47. Baloda Bazar. 7. **Mahasamund—53. Saraipali, 54. Basna, 55. Khallari, 56. Mahasamund, 51. Rajim,** 52. Bindranawagarh (ST), 58. Kurud and 59. Dhamtari. 8. **Kanker (ST)—57. Sihawa (ST), 60. Bhanupratappur (ST), 61. Kanker (ST), 63. Keskala** (ST), 62. Narayanpur (ST), 79. Gunderdehi, 81. Balod and 82. Dondi Lohara (ST). 9. **Bastar (ST)—64. Kondagaon (ST), 65. Bhanpuri (ST), 66. Jagdalpur (ST), 67. Keslur** (ST), 68. Chitrakote (ST), 69. Dantewara (ST), 70. Konta (ST) and 71. Bijapur (ST). 10. **Durg—72. Maro (SC), 73. Bemetara, 74. Saja, 75. Dhamdha, 76. Durg, 77. Bhilai,** 78. Patan and 80. Khertha. 11. **Rajnandgaon—83.Chowki (ST), 84. Khujji, 85. Dongargaon, 86. Rajnandgaon,** 87. Dongargarh (SC), 88. Khairagarh, 89. Birendranagar and 90. Kawardha. ----- Serial No. Name and extent of constituency (1) (2) PART B.—ASSEMBLY CONSNTITUENCIES **KORIA DISTRICT** 1. **Manendragarh** (ST)—Bharatpur tahsil and Manendragarh tahsil (excluding P.C. 15 in Khadgawan RIC) and the forest villages in the area. 2. **Baikunthpur—Baikunthpur tahsil and the forest villages in the area and P.C. 15 in** Khadgawan RIC in Manendragarh tahsil. **SURGUJA DISTRICT** 3. **Premnagar (ST).—Premnagar RIC and Ramanujnagar RIC (excluding P.Cs. 73 to 80) in** Surajpur tahsil and Udaipur RIC and P.Cs. 55, 57, 58 and 65 in Lakhanpur RIC in Ambikapur tehsil and the forest villages in the area. 4. **Surajpur (ST)—Surajpur and Bhaiyathan RICs and P.Cs. 73 to 80 in Ramanujnagar RIC** and Chandramedha RIC (excluding P.Cs. 17 to 26) in Surajpur tahsil. 5. **Pal (ST)—Basantpur, Ramchandrapur and Chailgali RICs and Ramanujganj Town and** P.Cs. 32 to 34A and 34B in Balrampur RIC in Pal tahsil. 6. **Samri (ST)—Samri tahsil and the forest villages in the area and Balrampur RIC** (excluding Ramanujganj Town and P.Cs. 32 to 34A and 34B) in Pal tahsil. 7. **Lundra (ST)—Lundra and Raipur RICs in Arnbikapur tahsil and the forest villages in the** area and P.Cs. 39 to 42 in Pratappur RIC in Surajpur tahsil. 8. **Pilkha (ST)—Pilkha RIC, Pratappur (excluding P.Cs. 39 to 42), and P.Cs. 17 to 26 in** Chandramedha RIC in Surajpur tahsil and the forest villages in the area. 9. **Ambikapur (ST)—Ambikapur-I and Ambikapur-Il RICs. and Lakhanpur RIC (excluding** P.Cs. 55, 57, 58 and 65) in Ambikapur tahsil and the forest villages in the area. 10. **Sitapur (ST)—Sitapur and Batauli RICs in Ambikapur tahsil.** **JASHPUR DISTRICT** 11. **Bagicha (ST)—Bagicha and Sanna RICs in Jashpur tahsil and the forest villages in the** area. 12. **Jashpur (ST)—Jashpur and Kastura RICs and P.Cs. 78 to 82 and 98 in Kunkuri RIC in** Jashpur tahsil and the forest villages in the area. 13. **Tapkara (ST)—Tapkara RIC and Kunkuri RIC (excluding P.Cs. 78 to 82 and 98) in** Jashpur tahsil and the forest villages in the area. 14. **Pathalgaon (ST)—Pathalgaon RIC and Kapu RIC (excluding P.Cs. 1 to 6 and 36) in** Udaipur (Dharamjaigarh) tahsil. **RAIGARH DISTRICT** 15. **Dhramjaigarh (ST)—Dharamjaigarh RIC and P.Cs. 1 to 6 and 36 in Kapu RIC in** Udaipur (Dharamjaigarh) tahsil and Gharghoda RIC in Gharghoda tahsil and the forest villages in the area. 16. **Lailunga (ST)—Lailunga and Tamnar RICs in Gharghoda tahsil and the forest villages in** the area. 17. **Raigarh- Raigarh—I and Raigarh- II RICs and P.Cs. 44 to 52 in pussour RIC in Raigarh** tahsil. 18. **Kharsia—Kharsia and Bhupdeopur RICs in Raigarh tahsil.** 19. **Saria—Pussour RIC (excluding P.Cs. 44 to 52) in Raigarh tahsil and Saria and Baramkela** RICs in Sarangarh tahsil and the forest villages in the area ----- Serial No. Name and extent of constituency (1) (2) 1[20. **Sarangarh (SC)]—Sarangarh and Hardi RICs in Sarangarh tahsil and the forest villages** in the area. **KORBA DISTRICT** 21. **Rampur (ST)—Korba RIC (excluding Korba Town and P.C. 21) Rampur RIC** (excluding P.Cs. 73 to 80) and P.Cs. 14, 20, 22 and 30 in Tanakhar RIC in Katghora tahsil. 22. **Katghora—Korba Town and P.C 21 in Korba RIC, Katghora RIC and Pali RIC** (excluding P.Cs. 34 and 36 to 46) in Katghora tahsil. 23. **Tanakhar (ST)—Pasan RIC, Tanakhar RIC (excluding P.Cs. 14, 20, 22 and 30) and** P.Cs. 34 and 36 to 46 in Pali RIC in Katghora tahsil. **BILASPUR DISTRICT** 24. **Marwahi (ST)—Marwahi RIC, Gaurella RIC (excluding P.Cs. of 26 to 28) and P.Cs. 31** to 33 and 37 in Kota RIC in Bilaspur tahsil. 25. **Kota—P.Cs. 26 to 28 in Gaurella RIC, Kota RIC (excluding P.Cs. 31 to 33 and 37) and** P.Cs. 64 to 67 in Ghutku-I RIC in Bilaspur tahsil and the forest villages in the area. 26 **Lormi—Lormi RIC (excluding P.Cs. 12 to 14, 17, 35 and 36) and Pandaria RIC in** Mungeli tahsil and the forest villages in the area. 27. **1[Mungeli (SC)]—Mungeli and Kunda RICs and P.Cs. 17, 35 and 36 in Lormi RIC in** Mungeli tahsil. 28. **Jarhagaon (SC)—P.Cs. 12 to 14 in Lormi RIC, and Jarhagaon RIC and Patharia RIC** (excluding P.Cs. 84 to 91) in Mungeli tahsil. 29. **Takhatpur—Takhatpur RIC, Ghutku-II RIC (excluding P.C. 96) and Ghutku-I RIC** (excluding P.Cs. 64 to 67, 78 to 80, 97 and 98) in Bilaspur tahsil. 30. **Bilaspur—Bilaspur Town including Railway Colony and P.Cs. 109, 110-A and 110-B in** Bilaspur RIC in Bilaspur tahsil. 31. **Bilha—Bilha RIC and P.Cs. 94, 95, 112 and 117 in Bilaspur RIC in Bilaspur tahsil and** P.Cs. 81 to 91 in Patharia RIC in Mungeli tahsil. 32. **Masturi (SC)—Masturi RIC, P.Cs. 111, 130 and 131 in Bilaspur RIC and P.Cs. 133, 135** and 136 in Sipat (Nargoda) RIC in Bilaspur tahsil. 33. **Sipat—Sipat (Nargoda) RIC (excluding P.Cs. 133, 135 and 136), P.Cs. 107, 108 and 132** in Bilaspur RIC, P.Cs. 78 to 80, 97 and 98 in Ghutku-I RIC and P.C 96 in Ghuktu-II RIC in Bilaspur tahsil and the forest villages in the area. **JANJGIR-CHAMPA DISTRICT** 34. **Akaltara—Baloda RIC and Akaltara RIC (excluding P.Cs. 58 and 60) in Janjgir tahsil** and the forest villages in the area. 35. **Pamgarh—Pamgarh and Nawagarh RICs, P.Cs. 58 and 60 in Akaltara RIC and P.Cs. 50,** 52 and 53 in Janjgir RIC in Janjgir tehsil. 36. **Champa—Champa RIC and Janjgir RIC (excluding P.Cs. 50, 52 and 53) in Janjgir tahsil.** 37. **Sakti—Sakti RIC in Sakti tahsil and P.Cs. 73 to 80 in Rampur RIC in Katghora tahsil.** 38. **Malkharoda (SC)—Jaijaipur RIC and Malkharoda RIC (excluding P.Cs. 51, 52, 57, 59** and 60) in Sakti tahsil. ----- Serial No. Name and extent of constituency (1) (2) 39. **Chandrapur—Chandrapur RIC and P.Cs. 51, 52, 57, 59 and 60 in Malkharoda RIC in** Sakti tahsil. **RAIPUR DISTRICT** 40. **Raipur Town—Raipur town (excluding wards 20 to 24, 29, 30, 34 and 35 and non-ward** municipal area). 41. **Raipur Rural—Wards 20 to 24, 29, 30, 34 and 35 in Raipur town including non-ward** municipal area. Raipur-II RIC and Raipur-I RIC (excluding P.Cs.111, 112 and 115) in Raipur tahsil. 42. **Abhanpur—Abhanpur and Nawapara RICs in Raipur tahsil.** 43. **Mandirhasod—Mandirhasod RIC and P.Cs. 111, 112 and 115 in Raipur-I RIC in Raipur** tahsil. 44. **Arang (SC)—Arang and Kharora RICs in Raipur tahsil.** 45. **Dharsiwa—Dharsiwa-I, Pharsiwa-II and Tilda RICs in Raipur tahsil.** 46. **Bhatapara—Simga RIC and Bhatapara RIC (excluding P.Cs. 34 to 38) in Baloda Bazar** tahsil. 47. **Baloda Bazar—P.Cs. 34 to 38 in Bhatapara RIC and Baloda Bazar and Jarod RICs in** Baloda Bazar tahsil. 48. **Pallari (SC)—Pallari and Lawan RICs in Baloda Bazar tahsil and the forest villages in the** area. 49. **Kasdol—Kasdol and Bilaigarh RICs in Baloda Bazar tahsil and the forest villages in the** area. 50. **Bhatgaon (SC)—Bhatgaon RIC in Baloda Bazar tahsil and the forest villages in the area** and Bhanwarpur RIC in Mahasamund tahsil. 51. **Rajim—Rajim RIC, Chhura RIC (excluding P.Cs. 31 to 35) and P.Cs. 36 to 39, 41 and 42** in Gariaband RIC in Bindranawagarh tahsil. 52. **Bindranawagarh (ST)—Deobhog RIC, Gariaband RIC (excluding P.Cs. 36 to 39,41 and** 42) and P.Cs. 31 to 35 in Chhura RIC in Bindranawagarh tehsil and the forest villages in the area. **MAHASAMUND DISTRICT** 53. **Saraipali—Saraipali and Khamharpali RICs Mahasamund tahsil.** 54. **Basna—Basna RIC and Pithora RIC (excluding P.Cs. 25 to 28) in Mahasamund tahsil and** the forest villages in the area. 55. **Khallari—Khallari and Komakhan RICs and P.Cs. 25 to 28 in Pithora RIC in** Mahasamund tahsil and the forest villages in the area. 56. **Mahasamund—Mahasamund and Patewa RICs in Mahasamund tahsil and the forest** villages in the area. **DHAMTARI DISTRICT** 57. **Sihawa (ST)—Sihawa RIC and Dhamtari RIC (excluding Dhamtari town and P.Cs. 50 to** 52) in Dhamtari tahsil and the forest villages in the area. 58. **Kurud—Kurud and Magarlod RICs in Dhamtari tahsil and the forest villages in the area.** 59. **Dhamtari—Bhothali RIC, Dhamtari town and P.Cs. 50 to 52 in Dhamtari RIC in** Dhamtari tahsil. ----- Serial No. Name and extent of constituency (1) (2) **KANKER DISTRICT** 60. **Bhanupratappur (ST)—Bhanupratappur tahsil and Charama RIC (excluding P.Cs. 2 and** 13 to 16) and P.Cs. 20 to 24 and 26 in Kanker RIC in Kanker tahsil. 61. **Kanker (ST)—Narharpur RIC, P.Cs. 2 and 13 to 16 in Charama RIC and Kanker RIC** (excluding P.Cs. 20 to 24 and 26) in Kanker tahsil. 62. **Narayanpur (ST)—Koilibeda and Antagarh RICs and P.Cs. 23 to 25 in Narayanpur RIC** in Narayanpur tahsil and the forest villages in the area. **BASTAR DISTRICT** 63. **Keskal (ST)—Keskal RIC and P.Cs. 19 to 26 in Pharasgaon RIC in Kondagaon tahsil and** the forest villages in the area. 64. **Kondagaon (ST)—Pharasgaon RIC (excluding P.Cs. 19 to 26) and Kondagaon RIC** (excluding P.Cs. 35 and 37 to 43) in Kondagaon tahsil and the forest villages in the area and Narayanpur RIC (excluding P.Cs. 23 to 25) in Narayanpur tahsil. 65. **Bhanpuri (ST)—Bhanpnri RIC and P.C 38 in Bakawand RIC in Jagdalpur tahsil and** P.Cs. 35 and 37 to 43 in Kondagaon RIC in Kondagaon tahsil and the forest villages in the area. 66. **Jagdalpur (ST)—Bakawand RIC (excluding P.C 38), Jagdalpur (B) RIC and Jagdalpur** (A) RIC (excluding P.Cs. 54 to 59) in Jagdalpur tahsil and the forest villages in the area. 67. **Keslur (ST)—P.Cs. 54 to 59 in Jagdalpur (A) RIC and Keslur in Jagdalpur tahsil and the** forest villages in the area and P.Cs. 7 to 9 in Chindgarh RIC in Konta tahsil. 68. **Chitrakote (ST)—Chitiakote RIC in Jagdalpur tahsil and P.Cs. 1 to 9 in Dantewara RIC** in Dantewara tahsil and the forest villages in the area. **DANTEWARA DISTRICT** 69. **Dantewara (ST)—Dantewara tahsil (excluding P.Cs. 1 to 9 in Dantewara RIC) and the** forest villages in the area. 70. **Konta (ST)—Konta tahsil (excluding P.Cs. 7 to 9 in Chindgarh RIC) and the forest** villages in the area. 71. **Bijapur (ST)—Bijapur tahsil and the forest villages in the area.** **DURG DISTRICT** 72. **Maro (SC)—Maro and Nawagarh RICs and P.Cs. 46, 51, 52 and 55 to 57 in Khandsara** RIC in Bemetara tahsil. 73. **Bemetara—Bemetara and Anandgaon RICs and P.Cs. 47 to 50, 53 and 54 in Khandsara** RIC in Bemetara tahsil. 74. **Saja—Saja and Deokar RICs and Khandsara RIC (excluding P.Cs. 46 to 57) 10 Bemetara** tahsil. 75. **Dhamdha—Dhamdha and Nankathi RICs and P.Cs. 46 to 48 and 50 to 52 in Bhilai RIC** in Durg tahsil. 76. **Durg—Durg-I and Durg-II RICs and S.A.F. Colony, Kosa Nala, Supela Bazar West,** Supela Bazar, Supela Bazar East and Supela Camp West in Bhilainagar and ex-revenue village Chhaoni lying on the periphery of Bhilainagar in Bhilai RIC in Durg tahsil. 77. **Bhilai—Bhilainagar (excluding S.A.F. Colony, Kosa Nala, Supela Bazar West, Supela** Bazar, Supela Bazar East, Supela, Camp West and ex-revenue village Chhaoni lying on the periphery of Bhilainagar) in Bhilai RIC in Durg tahsil. ----- Serial No. Name and extent of constituency (1) (2) 78. **Patan—Bhilai RIC (excluding P.Cs. 46 to 48 and 50 to 52 and Bhilainagar) and Patan** RIC (excluding P.Cs. 95 to 98) in Durg tahsil. 79. **Gunderdehi—Bhatagaon and Gunderdehi RICs and P.Cs. 95 to 98 in Patan RIC in Durg** tahsil. 80. **Khertha—Anda RIC in Durg tahsil and Khertha RIC in Balod tahsil.** 81. **Balod—Gurur and Balod RICs in Balod tahsil and the forest villages in the area.** 82. **Dondi Lohara (ST)—Kusumkasa and Dondi Lohara RICs in Balod tehsil and the forest** villages in the area. **RAJNANDGAON DISTRICT** 83. **Chowki (ST)—Manpur and Mohala RICs and Chowki RIC (excluding P.Cs. 99 to 105) in** Rajnandgaon tahsil. 84. **Khuiji—Chhuria and Khujji RICs and P.Cs. 99 to 105 in Chowki RIC in Rajnandgaon** tahsil and the forest villages in the area. 85. **Dongargaon—Dongargaon RIC in Rajnandgaon tahsil and Lal Bahadur Nagar RIC** (excluding P.C 88) in Khairagarh tahsil and the forest villages in the area. 86. **Rajnandgaon—Rajnandgaon RIC in Rajnandgaon tahsil.** 87. **Dongargarh (SC)—Ghumka RIC in Rajnandgaon tahsil, P.C 88 in Lal Bahadur Nagar** RIC and Dongargarh RIC and P.Cs. 52 and 55 to 61 in Pandadah RIC in Khairagarh tahsil. 88. **Khairagarh—Khairagarh and Chhuikhadan RICs, Pandadah RIC (excluding P.Cs. 52 and** 55 to 61) and Gandai RIC (excluding P.Cs. 6 and 8 to 14) in Khairagarh tahsil and the forest villages in the area. **KAWARDHA DISTRICT** 89. **Birendranagar—P.Cs. 6 and 8 to 14 in Gandai RIC in Khairagarh tahsil and** Birendranagar and Sahaspur Lohara RICs and Kawardha RIC (excluding P.Cs. 28, 29, 34 and 35 and Kawardha Town) in Kawardha tahsil and the forest villages in the area. 90. **Kawardha—Pasrangpur and Bodla RICs and Kawardha Town and P.Cs. 28, 29, 34 and** 35 in Kawardha RIC in Kawardha tahsil and the forest villages in the area.” ----- THE THIRD SCHEDULE (See section 19) AMENDMENT OF THE CONSTITUTION (SCHEDULED CASTES) ORDER, 1950 In the Constitution (Scheduled Castes) Order, 1950,— (a) in Paragraph 2, for the figures “XXII”, the figures “XXIII” shall be substituted; (b) in the Schedule, after Part XXII, the following shall be inserted, namely:— “PART XXIII.—CHHATTISGARH 1. Audhelia 2. Bagri, Bagdi 3. Bahna, Bajana 4. Balahi, Balai 5. Banchada 6. Barabar, Basod 7. Bargunda 8. Basor, Burud, Bansor, Bansodi, Bansphor, Basar 9. Bedia 10. Beldar, Sunkar 11. Bhangi, Mehtar, Balmiki, Lalbegi, Dharkar 12. Bhanumati 13. Chadar 14. Chamar, Chamari, Bairwa, Bhambhi, Jatav, Mochi, Regar, Nona, Rohidas, Ramnami, Satnami, Surjyabanshi, Surjyaramnami, Ahirwar, Chamar, Mangan, Raidas 15. Chidar 16. Chikwa, Chikvi 17. Chitar 18. Dahait, Dahayat, Dahat 19. Dewar 20. Dhanuk 21. Dhed, Dher 22. Dohor 23. Dom, Dumar, Dome, Domar, Doris 24. Ganda, Gandi 25. Ghasi, Ghasia 26. Holiya 27. Kanjar 28. Katia, Patharia 29. Khatik 30. Koli, Kori 31. Khangar, Kanera, Mirdha 32. Kuchbandhia 33. Mahar, Mehra, Mehar 34. Mang, Mang Garodi, Mang Garudi, Dankhani Mang, Mang Mahasi, Madari, Garudi, Radhe Mang 35. Meghwal 36. Moghia 37. Muskhan 38. Nat, Kalbelia, Sapera, Navdigar, Kubutar 39. Pasi 40. Rujihar 41. Sansi, Sansia 42. Silawat 43. Zamral.”. ----- THE FOURTH SCHEDULE (See section 20) AMENDMENT OF THE CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950 In the Constitution (Scheduled Tribes) Order, 1950,— (a) in Paragraph 2, for the figures “XIX”, the figures “XX” shall be substituted; (b) in the Schedule, (i) for Part VIII, the following Part shall be substituted, namely:— “PART VIII.—MADHYA PRADESH 1. Agariya 2. Andh 3. Baiga 4. Bhaina 5. Bharia Bhumia, Bhuinhar Bhumia, Bhumiya, Bharia, Paliha, Pando 6. Bhattra 7. Bhil, Bhilala, Barela, Patelia 8. Bhil Mina 9. Bhunjia 10. Biar, Biyar 11. Binjhwar 12. Birhul, Birhor 13. Damor, Damaria 14. Dhanwar 15. Gadaba, Gadba 16. Gond, Arakh, Arrakh, Agaria, Asur, Badi Maria, Bada Maria, Bhatola, Bhimma, Bhuta, Koilabhuta, Koliabhuti, Bhar, Bisonhorn Maria, Chota Maria, Dandami Maria, Dhuru, Dhurwa, Dhoba, Dhulia, Dorla, Gaiki, Gatta, Gatti, Gaita, [1][Gond Gowari], Hill Maria, Kandra, Kalanga, Khatola, Koitar, Koya, Khirwar, Khirwara, Kucha Maria, [1][Kuchaki Maria], Madia, Maria, Mana, Mannewar, Moghya, Mogia, Monghya, Mudia, Muria, Nagarchi, Nagwanshi, Ojha, [1][Raj], Sonjhari, Jhareka, Thatia, Thotya, Wade Maria, Vade Maria, Daroi 17. Halba, Halbi 18. Kamar 19. Karku 20. Kawar, Kanwar, Kaur, Cherwa, Rathia, Tanwar, Chattri 21. Keer (in Bhopal, Raisen and Sehore Districts) 22. Khairwar, Kondar 23. Kharia 24. Kondh, Khond, [1][Kandh] 25. Kol 26. Kolam 27. Korku, BoP.Chi, Mouasi, [1][Nihal], Nahul, [1][Bondhi] Bondeya 28. Korwa, Kodaku 29. Majhi 30. Majhwar 31. Mawasi 32. Mina (in Sironj Sub-Division of Vidisha District) 33. Munda 34. Nagesia, Nagasia 35. Oraon, Dhanka, Dhangad 36. Panika [in (i) Chhattarpur, Panna, Rewa, Satna, Shahdol, Umaria, Sidhi and Tikamgarh districts, and (ii) Sevda and Datia tahsils of Datia district)] 37. Pao 38. Pardhan, Pathari, Saroti ----- 39. Pardhi (in Bhopal, Raisen and Sehore Districts) 40. Pardhi, Bahelia, Bahellia, Chita Pardhi, Langoli Pardhi, Phans Pardhi, Shikari, Takankar, Takia [in (i) Chhindwara, Mandla, Dindori and Seoni Districts, (ii) Baihar tahsil of Balaghat District, (iii) Betul, Bhainsdehi and Shahpur tahsils of Betul District, (iv) Patan tahsil and Sihora and Majholi blocks of Jabalpur District, (v) Katni (Murwara) and Vijaya Raghogarh tahsils and Bahoribandh and Dhemerkheda blocks of Katni District, (vi) Hoshangabad, Babai, Sohagpur, Pipariy and Bankhedi tahsils and Kesla block of Hoshangabad District, (vii) Narsinghpur District, and (viii) Harsud tahsil of Khandwa District] 41. Parja 42. Sahariya, Saharia, Seharia, Sehria, Sosia, Sor 43. Saonta, Saunta 44. Saur 45. Sawar, Sawara, 46. Sonr.”; (ii) after Part XIV, the following shall be added, namely:— “PART XX.—CHHATTISGARH 1. Agariya 2. Andh 3. Baiga 4. Bhaina 5. Bharia Bhumia, Bhuinhar Bhumia, Bhumiya, Bharia, Paliha, Pando 6. Bhattra 7. Bhil, Bhilala, Barela, Patelia 8. Bhil Mina 9. Bhunjia 10. Biar, Biyar 11. Binjhwar 12. Birhul, Birhor 13. Damor, Damaria 14. Dhanwar 15. Gadaba, Gadba 16. Gond, Arakh, Arrakh, Agaria, Asur, Badi Maria, Bada Maria, Bhatola, Bhimma, Bhuta, Koilabhuta, [1][Koliabhuti], Bhar, Bisonhorn Maria, Chota Maria, Dandami Maria, Dhuru, Dhurwa, Dhoba, Dhulia, Dorla, Gaiki, Gatta, Gatti, Gaita, [1][Gond Gowari], [1][Hill Maria], Kandra, Kalanga, Khatola, Koitar, Koya, Khirwar, Khirwara, Kucha Maria, Kuchaki Maria, Madia, Maria, Mana, Mannewar, Moghya, Mogia, Monghya, Mudia, Muria, Nagarchi, Nagwanshi, Ojha, 1[Raj], Sonjhari, Jhareka, Thatia, Thotya, Wade Maria, Vade Maria, Daroi 17. Halba, Halbi 18. Kamar 19. Karku 20. Kawar, Kanwar, Kaur, Cherwa, Rathia, Tanwar, Chattri 21. Khairwar, Kondar 22. Kharia 23. Kondh, Khond, Kandh, 24. Kol 25. Kolam 26. Korku, BoP.Chi, Mouasi, [1][Nihal], Nahul, Bondhi, Bondeya 27. Korwa, Kadaku 28. Majhi 29. Majhwar 30. Mawasi 31. Munda 32. Nagesia, Nagasia 33. Oraon, Dhanka, Dhangad 34. Pao ----- 35. Pardhan, Pathari, Saroti 36. Pardhi, Bahelia, Bahellia, Chita Pardhi, Langoli Pardhi, Phans Pardhi, Shikari, Takankar, Takia [in (i) Bastar, Dantewara, Kanker, Raigarh, Jashpurnagar, Surguja and Koria district, (ii) Katghora, Pali, Kartala and Korba tahsils of Korba district, (iii) Bilaspur, Pendra, Kota and Takhatpur tahsils of Bilaspur district, (iv) Durg, Patan, Gunderdehi, Dhamdha, Balod, Gurur and Dondilohara tahsils of Durg district, (v) Chowki, Manpur and Mohala Revenue Inspector Circles of Rajnandgaon district, (vi) Mahasamund, Saraipali and Basna tahsils of Mahasamund district, (vii) Bindra Navagarh Rajim and Deobhog tahsils of Raipur district, and (viii) Dhamtari, Kurud and Sihava tahsils of Dhamtari district] 37. Parja 38. Sahariya, Saharia, Seharia, Sehria, Sosia, Sor 39. Saonta, Saunta 40. Saur 41. Sawar, Sawara 42. Sonr.”. ----- THE FIFTH SCHEDULE (See section 42) 1. Famine Relief Fund 2. Guarantee Reserve Fund Investment Account 3. Revenue Reserve Fund Investment Account 4. State Agriculture Credit (Relief and Guarantee) Fund 5. Cash Balance Investment Account 6. Land Revenue and Stamp Fund 7. Rural Development Fund 8. Energy Development Cess Fund 9. Compensatory Afforestation Fund 10. Forest Development Cess Fund 11. Road Safety Fund 12. Depreciation/Renewal Reserve Fund 13. Madhya Pradesh Calamity Relief Fund 14. World Food Programme Project Fund. . 15. Madhya Pradesh State Employees Family Benefit Fund 16. School Building Fund 17. Pensioners Welfare Fund 18. Crop Insurance Fund. ----- THE SIXTH SCHEDULE (See section 49) APPORTIONMENT OF LIABILITY IN RESPECT OF PENSIONS 1. Subject to the adjustments mentioned in Paragraph 3, each of the successor State shall in respect to pensions granted before the appointed day by the existing State of Madhya Pradesh, pay the pensions drawn in its treasuries. 2. Subject to the adjustments, the liability in respect of pensions of officers serving in connection with the affairs of the existing State of Madhya Pradesh who retire or proceed on leave preparatory to retirement before the appointed day, but whose claims for pensions are outstanding immediately before that day, shall be the liability of the State of Madhya Pradesh. 3. There shall be computed, in respect of the period commencing on the appointed day and ending on the 31st day of March of that financial year and in respect of each subsequent financial year, the total payment made in all the successor State in respect of pension referred to in Paragraphs 1 and 2. The total representing the liability of the existing State of Madhya Pradesh in respect of pension shall be apportioned between the successor State on the population ratio and any successor State paying more than its due share shall be reimbursed the excess amount by the successor State or State paying less. 4. The liability of the existing State of Madhya Pradesh in respect of Pension granted before the appointed day and drawn in any area outside the territories of the existing State shall be the liability of the State of Madhya Pradesh subject to adjustments to be made in accordance with Paragraph 3 as if such pensions had been drawn in any treasury in the State of Madhya Pradesh under Paragraph 1. 5 (1) The liability in respect of the pensions of any officer serving immediately before the appointed day in connection with the affairs of the existing State of Madhya Pradesh and retiring on or after that day, shall be that of the successor State granting him the pension, but the portion of the pension attributable to the service of any such officer before the appointed day in connection with the affairs of the existing State of Madhya Pradesh shall be allocated between the successor State in the population ratio, and the Government granting the pension shall be entitled to receive from each of the successor State its share or this liability. (2) If any such officer was serving after the appointed day in connection with the affairs of more than one successor State, the State Government other than the one granting the pension shall reimburse to the Government by which pension is granted an amount which bears to the portion of the pension attributable to his service after the appointed day the same ratio as the period of his qualifying service after the appointed day under the reimbursing State bears to total qualifying service of such officer after the appointed day reckoned for the purposes of pension. 6 Any reference in this schedule to a pension shall be construed as including a reference value of the pension. ----- THE SEVENTH SCHEDULE (See section 60) LIST OF GOVERNMENT COMPANIES 1. Madhya Pradesh State Industries Corporation Limited Bhopal 2. Madhya Pradesh Laghu Udyog Nigam Limited Bhopal 3. Madhya Pradesh State Mining Corporation Limited Bhopal 4. Madhya Pradesh State Industrial Development Corporation Limited Bhopal 5. Madhya Pradesh State Agro Industries Development Corporation Limited Bhopal 6. Madhya Pradesh State Civil Supplies Corporation Limited Bhopal 7. Madhya Pradesh State Textile Corporation Limited Bhopal 8. Madhya Pradesh Rajya Van Vikas Nigam Limited Bhopal 9. Madhya Pradesh State Tourism Development Corporation Limited Bhopal 10. Madhya Pradesh Police Housing Corporation Limited Bhopal 11. Madhya Pradesh Leather Development Corporation Limited Bhopal 12. Madhya Pradesh Hastshilp Avam Hathkargha Vikas Nigam Limited Bhopal 13. Madhya Pradesh Urja Vikas Nigam Limited Bhopal 14. Madhya Pradesh State Electronics Development Corporation Limited Bhopal 15. Madhya Pradesh Pichhra Varg Tatha Alpsankhyak Vitta Avam Vikas Nigam Bhopal 16. Madhya Pradesh Adivasi Vitta Avam Vikas Nigam Bhopal 17. Madhya Pradesh Export Corporation Limited Bhopal 18. The Provident Investment Company Limited Mumbai 19. Madhya Pradesh Film Development Corporation Limited Bhopal 20. Optel Telecommunications Limited Bhopal 21. Madhya Pradesh Audyogik Kendra Vikas Nigam (Bhopal) Limited Bhopal 22. Madhya Pradesh Audyogik Kendra Vikas Nigam (Indore) Limited Indore 23. Madhya Pradesh Audyogik Kendra Vikas Nigam (Raipur) Limited Raipur 24. Madhya Pradesh Audyogik Kendra Vikas Nigam (Jabalpur) Limited Jabalpur 25. Madhya Pradesh Audyogik Kendra Vikas Nigam (Gwalior) Limited Gwalior 26. Madhya Pradesh Audyogik Kendra Vikas Nigam (Rewa) Limited Rewa 27. Madhya Pradesh Agro Pesticides Limited Bhopal 28. Madhya Pradesh Agro Oils and Cattlefeed Limited Bhopal. ----- THE EIGHTH SCHEDULE (See section 66) CONTINUANCE OF FACILITIES IN CERTAIN STATE INSTITUTION LIST OF TRAINING INSTITUTIONS/CENTRES 1. Prevention of Food Adulteration Organisation State Laboratory Controller, Lal Ghati, Bhopal. 2. State Institute of Health Management and Communication, Gwalior. 3. Madhya Pradesh State Seed Certification Agency, Officer Complex, B-2, Gautam Nagar, Bhopal. 4. Madhya Pradesh State Forest Research Institute, Polipathar, Narmada Road, Jabalpur. 5. Pandit Kunjilal Dubey Rashtriya Sansadiya Vidyapeeth, Old Vidhan Sabha Campus, Bhopal. 6. Mahatma Gandhi State Institute of Rural Development and Training, Adhartal, Jabalpur. 7. Madhy Pradesh State Employment and Training Institution, Rajiv Gandhi Bhawan, Shyamla Hills, Bhopal. 8. State Academy of Administration, Hitkarni Nagar, 1100 Quarters, Bhopal. 9. Medico Legal Institute, Gandhi Medical College, Bhopal. 10. Ranger Training College, Balaghat. 11. Agriculture Cooperative Staff Training Institute of Apex Bank, Kotra Sultanabad, Bhopal. 12. Jawaharlal Nehru Police Academy, Sagar. 13. Tribal Research and Training Institute, Shyamla Hills, Bhopal. 14. Jail Training Centre, Sagar. 15. Armed Police College, Indore. 16. Police Radio Training School, Indore. 17. Central Training Institute, Home Guards and Civil Defence, Khamaria, Jabalpur. 18. Forensic Science Laboratory, Sagar. 19. Madhya Pradesh Water and Land Management Institute, Walmi Hills, Near Kaliasot Dam, Kolar Road, Bhopal. 20. Judicial Officers Training Institute, High Court Campus, Jabalpur. 21. Sanjay Gandhi Youth Leadership and Rural Development Training Institute, Pachmarhi, District Hoshangabad. 22. State level Training Institute, Mahalgaon, Gwalior. 23. Artificial Insemination Training Institute, Bhopal/Mandla. 24. Assistant Veterinary Field Officers Training Centre, Mahasamund, Shivpuri. 25. Poultry Training Centre, Rewa. 26. Food Analysis Unit, Bhopal. 27. Fisheries Training Institute, Raipur and Naogaon. 28. Central Semen Station, Bhopal. 29. Poultry Research Centre, Bhopal. 30. Soil Conservation Training Centre, Gwalior and Betul. 31. Plant Protection Training Centre, Obedullaganj (Raisen). 32. Officers Training Centre, Horticulture, Pachmarhi. 33. Sister Tutor Training Institute, Ujjain. 34. Central Research Laboratory Centre, Shyamla Hills, Bhopal. 35. Bureau of Design for Hydel and Irrigation Project, Bhopal. 36. Pre-Examination Training Centre for Backward Classes, Bhopal. 37. State Institute of Education Management and Training, Bhopal. 38. All India Services Pre-Examination Training Centre, Ravishankar University Campus, Raipur. 39. Excise Training Institute, Birlanagar. 40. Aviation Workshop, State Hangar, Bhopal. __________ -----
25-Aug-2000
30
The Bihar Reorganisation Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/2001/1/200030.pdf
central
SECTIONS 1. Short title. 2. Definitions. # THE BIHAR REORGANISATION ACT, 2000 __________ ARRANGEMENT OF SECTIONS _________ PART I PRELIMINARY PART II REORGANISATION OF THE STATE OF BIHAR 3. Formation of Jharkhand State. 4. State of Bihar and territorial divisions thereof. 5. Amendment of the First Schedule to the Constitution. 6. Saving powers of State Governments. PART III REPRESENTATION IN THE LEGISLATURES _The Council of States_ 7. Amendment of the Fourth Schedule to the Constitution. 8. Allocation of sitting members. _The House of the People_ 9. Representation in the House of the People. 10. Delimitation of Parliamentary and Assembly Constituencies. 11. Provision as to sitting members. _The Legislative Assembly_ 12. Provisions as to Legislative Assemblies. 13. Allocation of sitting members. 14. Duration of Legislative Assemblies. 15. Speaker and Deputy Speaker. 16. Rules of procedure. _The Legislative Council of Bihar_ 17. Legislative Council of Bihar. 18. Council constituencies. 19. Provision as to sitting members. 20. Chairman and Deputy Chairman. _Delimitation of constituencies_ 21. Delimitation of constituencies. 22. Power of the Election Commission to maintain Delimitation Orders up-to-date. ----- _Scheduled Castes and Scheduled Tribes_ SECTIONS 23. Amendment of the Scheduled Castes Order. 24. Amendment of the Scheduled Tribes Order. PART IV HIGH COURT 25. High Court for Jharkhand. 26. Judges of High Court. 27. Jurisdiction of High Court. 28. Special provision relating to Bar Council and Advocates. 29. Practice and procedure in common High Court. 30. Custody of seal of High Court. 31. Form of writs and other processes. 32. Powers of Judges. 33. Procedure as to appeals to Supreme Court. 34. Transfer to proceedings from High Court at Patna to High Court of Jharkhand. 35. Right to appear or to act in proceedings transferred to High Court of Jharkhand. 36. Interpretation. 37. Saving. PART V AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES 38. Authorisation of expenditure of Jharkhand State. 39. Reports relating to accounts of Bihar State. 40. Distribution of revenue. PART VI APPORTIONMENT OF ASSETS AND LIABILITIES 41. Application of Part. 42. Land and goods. 43. Treasury and bank balances. 44. Arrears of taxes. 45. Right to recover loans and advances. 46. Investments and credits in certain funds. 47. Assets and liabilities of State undertakings. 48. Public Debt. 49. Floating Debt. 50. Refund of taxes collected in excess. 51. Deposits, etc. 52. Provident fund. 53. Pensions. 54. Contracts. 55. Liability in respect of actionable wrong. 56. Liability as guarantor. 57. Items in suspense. 58. Residuary provision. 59. Apportionment of assets or liabilities by agreement. 60. Power of Central Government to order allocation or adjustment in certain cases. 61. Certain expenditure to be charged on Consolidated Fund. ----- PART VII PROVISIONS AS TO CERTAIN CORPORATIONS SECTIONS 62. Provisions as to Bihar State Electricity Board, State Warehousing Corporation and State Road Transport Corporation. 63. Continuance of arrangements in regard to generation and supply of electric power and supply of water. 64. Provisions as to Bihar State Financial Corporation. 65. Provisions as to certain companies. 66. General provision as to statutory corporations. 67. Temporary provisions as to continuance of certain existing road transport permits. 68. Special provisions relating to retrenchment compensation in certain cases. 69. Special provision as to income-tax. 70. Continuance of facilities in certain State institutions. PART VIII PROVISIONS AS TO SERVICES 71. Provisions relating to All-India Services. 72. Provisions relating to services in Bihar and Jharkhand. 73. Other provisions relating to services. 74. Provisions as to continuance of officers in same post. 75. Advisory Committees. 76. Power of Central Government to give directions. 77. Provisions as to State Public Service Commission. PART IX MANGEMENT AND DEVELOPMET OF WATER RESOURCES 78. Water Resources Development and its Management. 79. Constitution and functions of Management Board. 80. Staff of the Management Board. 81. Jurisdiction of the Board. 82. Power to make regulations. PART X LEGAL AND MISCELLANEOUS PROVISIONS 83. Amendment of Act 37 of 1956. 84. Territorial extent of laws. 85. Power to adapt laws. 86. Power to construe laws. 87. Power to name authorities, etc., for exercising statutory functions. 88. Legal proceedings. 89. Transfer of pending proceedings. 90. Right of pleaders to practise in certain cases. 91. Effect of provisions of the Act inconsistent with other laws. ----- SECTIONS 92. Power to remove difficulties. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. THE FOURTH SCHEDULE. THE FIFTH SCHEDULE. THE SIXTH SCHEDULE. THE SEVENTH SCHEDULE. THE EIGHTH SCHEDULE. THE NINTH SCHEDULE. THE TENTH SCHEDULE. ----- # THE BIHAR REORGANISATION ACT, 2000 ACT NO. 30 OF 2000 [25th August, 2000.] # An Act to provide for the reorganisation of the existing State of Bihar and for matters connected therewith. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— PART I PRELIMINARY **1. Short title.—This Act may be called the Bihar Reorganisation Act, 2000.** **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) ―appointed day[1]‖ means the day which the Central Government may, by notification in the Official Gazette, appoint; (b) ―article‖ means an article of the Constitution; (c) ―assembly constituency‖, ―council constituency‖ and ―parliamentary constituency‖ have the same meanings as in the Representation of the People Act, 1950 (43 of 1950); (d) ―Election Commission‖ means the Election Commission appointed by the President under article 324; (e) ―existing State of Bihar‖ means the State of Bihar as existing immediately before the appointed day; (f) ―law‖ includes any enactment, ordinance, regulation, order, bye-law, rule, scheme, notification or other instrument having, immediately before the appointed day, the force of law in the whole or in any part of the existing State of Bihar; (g) ―notified order‖ means an order published in the Official Gazette; (h) ―population ratio‖, in relation to the States of Bihar and Jharkhand, means the ratio of 645.30:218.44; (i) ―sitting member‖, in relation to either House of Parliament or of the Legislature of the existing State of Bihar, means a person who immediately before the appointed day, is a member of that House; (j) ―successor State‖, in relation to the existing State of Bihar, means the State of Bihar or Jharkhand; (k) ―transferred territory‖ means the territory which on the appointed day is transferred from the existing State of Bihar to the State of Jharkhand; (l) ―treasury‖ includes a sub-treasury; and (m) any reference to a district, tahsil or other territorial division of the existing State of Bihar shall be construed as a reference to the area comprised within that territorial division on the appointed day. PART II REORGANISATION OF THE STATE OF BIHAR **3. Formation of Jharkhand State.—On and from the appointed day, there shall be formed a new** State to be known as the State of Jharkhand comprising the following territories of the existing State of Bihar, namely:— Bokaro, Chatra, Deogarh, Dhanbad, Dumka, Garhwa, Giridih, Godda, Gumla, Hazaribagh, Kodarma, Lohardaga, Pakur, Palamau, Ranchi, Sahebganj, Singhbhum (East) and Singhbhum (West) districts, and thereupon the said territories shall cease to form part of the existing State of Bihar. 1. 15th November, 2000, vide notification No. S.O. 829(E), dated 14th September, 2000, see Gazette of India, Extraordinary, Part II sec 3(ii) ----- **4. State of Bihar and territorial divisions thereof.—On and from the appointed day, the State of** Bihar shall comprise the territories of the existing State of Bihar other than those specified in section 3. **5. Amendment of the First Schedule to the Constitution.—On and from the appointed day, in the** First Schedule to the Constitution, under the heading ―I. THE STATES‖,— (a) in the paragraph relating to the territories of the State of Bihar, the following shall be added at the end, namely:— ―and the territories specified in section 3 of the Bihar Reorganisation Act, 2000‖; (b) after entry 27, the following entry shall be inserted, namely:— ―28. Jharkhand: The territories specified in section 3 of the Bihar Reorganisation Act, 2000.‖. **6. Saving powers of State Governments.—Nothing in the foregoing provisions of this Part shall be** deemed to affect the power of the Government of Bihar or Jharkhand to alter, after the appointed day, the name, area or boundaries of any district or other territorial division in the State. PART III REPRESENTATION IN THE LEGISLATURES _The Council of States_ **7. Amendment of the Fourth Schedule to the Constitution.—On and from the appointed day, in** the Fourth Schedule to the Constitution, in the Table,— (a) entries 4 to 29 shall be renumbered as entries 5 to 30 respectively; (b) in entry 3, for the figures ―22‖ the figures ―16‖ shall be substituted; (c) after entry 3, the following entry shall be inserted, namely:— ―4. Jharkhand...................................... 6‖. **8. Allocation of sitting members.—(1) On and from the appointed day, the twenty-two sitting** members of the Council of States representing the existing State of Bihar shall be deemed to have been elected to fill the seats allotted to the States of Bihar and Jharkhand, as specified in the First Schedule to this Act. (2) The term of office of such sitting members shall remain unaltered. _The House of the People_ **9. Representation in the House of the People.—On and from the appointed day, there shall be** allocated 40 seats to the successor State of Bihar, and 14 to the successor State of Jharkhand, in the House of the People and in the First Schedule to the Representation of the People Act, 1950 (43 of 1950), under heading ―I. STATES:‖,— (a) for entry 4, the following entry shall be substituted, namely:— ―4. Bihar 53 7 5 40 7 ..‖; (b) entries 10 to 25 shall be renumbered as entries 11 to 26 respectively; (c) after entry 9, the following entry shall be inserted, namely:— ―10. Jharkhand .. .. .. 14 1 5‖. **10. Delimitation of Parliamentary and Assembly Constituencies.—On and from the appointed** day, the Delimitation of Parliamentary and Assembly Constituencies Order, 1976, shall stand amended as directed in the Second Schedule to this Act. **11. Provision as to sitting members.—(1) Every sitting member of the House of the People** representing a constituency which, on the appointed day by virtue of the provisions of section 10, stands allotted, with or without alteration of boundaries, to the successor State of Bihar or Jharkhand, shall be deemed to have been elected to the House of the People by that constituency as so allotted. ----- (2) The term of office of such sitting members shall remain unaltered. _The Legislative Assembly_ **12. Provisions as to Legislative Assemblies.—(1) The number of seats as on the appointed day in** the Legislative Assemblies of the States of Bihar and Jharkhand shall be two hundred and forty-three and eighty-one respectively. (2) In the Second Schedule to the Representation of the People Act, 1950 (43 of 1950), under heading ―I. States‖,— (a) for entry 4, the following entry shall be substituted, namely:— ―4. Bihar 318 45 29 243 39 .. ―; (b) entries 11 to 27 shall be renumbered as entries 12 to 28 respectively; (c) after entry 10, the following entry shall be inserted, namely:— ―11. Jharkhand .. .. .. 81 9 28‖. **13. Allocation of sitting members.—(1) Every sitting member of the Legislative Assembly of the** existing State of Bihar elected to fill a seat in that Assembly from a constituency which on the appointed day by virtue of the provisions of section 10 stands allotted, with or without alteration of boundaries, to the State of Jharkhand shall, on and from that day, cease to be a member of the Legislative Assembly of Bihar and shall be deemed to have been elected to fill a seat in the Legislative Assembly of Jharkhand from that constituency as so allotted. (2) All other sitting members of the Legislative Assembly of the existing State of Bihar shall continue to be members of the Legislative Assembly of that State and any such sitting member representing a constituency the extent, or the name and extent of which are altered by virtue of the provisions of section 10 shall be deemed to have been elected to the Legislative Assembly of Bihar by that constituency as so altered. (3) Notwithstanding anything contained in any other law for the time being in force, the Legislative Assemblies of Bihar and Jharkhand shall be deemed to be duly constituted on the appointed day. (4) The sitting member of the Legislative Assembly of the existing State of Bihar nominated to that Assembly under article 333 to represent the Anglo-Indian community shall be deemed to have been nominated to represent the said community in the Legislative Assembly of Jharkhand under that article. **14. Duration of Legislative Assemblies.—The period of five years referred to in clause (1) of** article 172 shall, in the case of Legislative Assembly of the State of Bihar or Jharkhand be deemed to have commenced on the date on which it actually commenced in the case of Legislative Assembly of the existing State of Bihar. **15. Speaker and Deputy Speaker.—(1) The persons who immediately before the appointed day are** the Speaker and Deputy Speaker of the Legislative Assembly of the existing State of Bihar shall continue to be the Speaker and Deputy Speaker respectively of that Assembly on and from that day. (2) As soon as may be after the appointed day, the Legislative Assembly of Jharkhand shall choose two members of that Assembly to be respectively Speaker and Deputy Speaker thereof and until they are so chosen, the duties of the office of Speaker shall be performed by such member of the Assembly as the Governor may appoint for the purpose. **16. Rules of procedure.—The rules of procedure and conduct of business of the Legislative** Assembly of Bihar as in force immediately before the appointed day shall, until rules are made under clause (1) of article 208, be the rules of procedure and conduct of business of the Legislative Assembly of Jharkhand, subject to such modifications and adaptations as may be made therein by the Speaker thereof. _The Legislative Council of Bihar_ **17. Legislative Council of Bihar.—On and from the day on which all the members specified in the** Third Schedule retire, there shall be seventy-five seats in the Legislative Council of Bihar, and in the Third Schedule to the Representation of the People Act, 1950 (43 of 1950), for the existing entry 2, the following entry shall be substituted, namely:— ―2. Bihar 75 24 6 6 27 12‖. ----- **18. Council constituencies.—On and from the appointed day, the Delimitation of Council** Constituencies (Bihar) Order, 1951 shall stand amended as directed in the Fourth Schedule. **19. Provision as to sitting members.—Notwithstanding anything contained in section 17, all sitting** members of the Legislative Council of the existing State of Bihar, shall continue to be members of that Council till they retire on the expiration of their present term of office. **20. Chairman and Deputy Chairman.—The person who immediately before the appointed day is** the Chairman or Deputy Chairman of the Legislative Council of the existing State of Bihar shall continue to be the Chairman or Deputy Chairman, as the case may be, on and from that day of that Council. _Delimitation of constituencies._ **21. Delimitation of constituencies.—(1) For the purpose of giving effect to the provisions of** section 12, the Election Commission shall determine in the manner hereinafter provided— (a) the number of seats to be reserved for the Scheduled Castes and the Scheduled Tribes in the Legislative Assemblies of the States of Bihar and Jharkhand respectively, having regard to the relevant provisions of the Constitution; (b) the assembly constituencies into which each State referred to in clause (a) shall be divided, the extent of each of such constituencies and in which of them seats shall be reserved for the Scheduled Castes or for the Scheduled Tribes; and (c) the adjustments in the boundaries and description of the extent of the parliamentary constituencies in each successor States that may be necessary or expedient. (2) In determining the matters referred to in clauses (b) and (c) of sub-section (1), the Election Commission shall have regard to the following provisions, namely:— (a) all the constituencies shall be single-member constituencies; (b) all constituencies shall, as far as practicable, be geographically compact areas, and in delimiting them, regard shall be had to physical features, existing boundaries of administrative units, facilities of communication and conveniences to the public; and (c) constituencies in which seats are reserved for the Scheduled Castes and the Scheduled Tribes shall, as far as practicable, be located in areas where the proportion of their population to the total population is the largest. (3) The Election Commission shall, for the purpose of assisting it in the performance of its functions under sub-section (1), associate with itself as associate members, five persons as the Central Government may by order specify, being persons who are members of the Legislative Assembly of the State or of the House of the People representing the State: Provided that none of the associate members shall have a right to vote or to sign any decision of the Election Commission. (4) If, owing to death or resignation, the office of an associate member falls vacant, it shall be filled as far as practicable, in accordance with the provisions of sub-section (3). (5) The Election Commission shall— (a) publish its proposals for the delimitation of constituencies together with the dissenting proposals, if any, of any associate member who desires publication thereof in the Official Gazette and in such other manner as the Commission may consider fit, together with a notice inviting objections and suggestions in relation to the proposals and specifying a date on or after which the proposals will be further considered by it; (b) consider all objections and suggestions which may have been received by it before the date so specified; (c) after considering all objections and suggestions which may have been received by it before the date so specified, determine by one or more orders the delimitation of constituencies and cause such order or orders to be published in the Official Gazette, and upon such publication, the order or orders shall have the full force of law and shall not be called in question in any court. ----- (6) As soon as may be after such publication, every such order relating to assembly constituencies shall be laid before the Legislative Assembly of the concerned State. (7) The delimitation of constituencies in the States of Bihar and Jharkhand shall be determined on the basis of the published figures of the census taken in the year 1971. **22. Power of the Election Commission to maintain Delimitation Orders up-to-date.—(1) The** Election Commission may, from time to time, by notification in the Official Gazette,— (a) correct any printing mistakes in any order made under section 21 or any error arising therein from inadvertent slip or omission; (b) where the boundaries or name of any territorial division mentioned in any such order or orders is or are altered, make such amendments as appear to it to be necessary or expedient for bringing such order up-to-date. (2) Every notification under this section relating to an assembly constituency shall be laid, as soon as may be after it is issued, before the concerned Legislative Assembly. _Scheduled Castes and Scheduled Tribes_ **23. Amendment of the Scheduled Castes Order.—On and from the appointed day, the Constitution** (Scheduled Castes) Order, 1950, shall stand amended as directed in the Fifth Schedule. **24. Amendment of the Scheduled Tribes Order.—On and from the appointed day, the Constitution** (Scheduled Tribes) Order, 1950, shall stand amended as directed in the Sixth Schedule. PART IV HIGH COURT **25. High Court of Jharkhand.—(1) On and from the appointed day, there shall be a separate High** Court for the State of Jharkhand (hereinafter referred to as the High Court of Jharkhand) and the High Court at Patna shall become the High Court for the State of Bihar (hereinafter referred to as the High Court at Patna). (2) The principal seat of the High Court of Jharkhand shall be at such place as the President may, by notified order, appoint. (3) Notwithstanding anything contained in sub-section (2), the Judges and division courts of the High Court of Jharkhand may sit at such other place or places in the State of Jharkhand other than its principal seat as the Chief Justice may, with the approval of the Governor of Jharkhand, appoint. **26. Judges of High Court.—(1) Such of the Judges of the High Court at Patna holding office** immediately before the appointed day as may be determined by the President shall on that day cease to be Judges of the High Court at Patna and become Judges of the High Court of Jharkhand. (2) The persons who by virtue of sub-section (1) become Judges of the High Court of Jharkhand shall, except in the case where any such person is appointed to be the Chief Justice of that High Court, rank in that Court according to the priority of their respective appointment as Judges of the High Court of Patna. **27. Jurisdiction of High Court.—The High Court of Jharkhand shall have, in respect of any part of** the territories included in the State of Jharkhand, all such jurisdiction, powers and authorities as, under the law in force immediately before the appointed day, are exercisable in respect of that part of the said territories by the High Court at Patna. **28. Special provision relating to Bar Council and Advocates.—(1) On and from the appointed day,** in the Advocates Act, 1961 (25 of 1961), in section 3, in sub-section (1), in clause (a), after the words ―Jammu and Kashmir‖, the word ―Jharkhand‖ shall be inserted. (2) Any person who immediately before the appointed day is an advocate on the roll of the Bar Council of the existing State of Bihar may give his option in writing, within one year from the appointed day to the Bar Council of such existing State, to transfer his name on the roll of the Bar Council of Jharkhand and notwithstanding anything contained in the Advocates Act, 1961 (25 of 1961) and the rules made thereunder, on such option so given his name shall be deemed to have been transferred on the roll of the Bar Council of Jharkhand with effect from the date of the option so given for the purposes of the said Act and the rules made thereunder. ----- (3) The person other than the advocates who are entitled immediately before the appointed day, to practise in the High Court at Patna or any subordinate court thereof shall, on and after the appointed day, be recognised as such persons entitled also to practise in the High Court of Jharkhand or any subordinate court thereof, as the case may be. (4) The right of audience in the High Court of Jharkhand shall be regulated in accordance with the like principles as, immediately before the appointed day, are in force with respect to the right of audience in the High Court at Patna. **29. Practice and procedure in common High Court.—Subject to the provisions of this Part, the law** in force immediately before the appointed day with respect to practice and procedure in the High Court at Patna shall, with the necessary modifications, apply in relation to the High Court of Jharkhand, and accordingly, the High Court of Jharkhand shall have all such powers to make rules and orders with respect to practice and procedure as immediately before the appointed day exercisable by the High Court at Patna: Provided that any rules or orders which are in force immediately before the appointed day with respect to practice and procedure in the High Court at Patna shall, until varied or revoked by rules or orders made by the High Court of Jharkhand, apply with the necessary modifications in relation to practice and procedure in the High Court of Jharkhand as if made by that court. **30. Custody of seal of High Court.—The law in force immediately before the appointed day with** respect to the custody of the seal of the High Court at Patna shall with the necessary modifications, apply with respect to the custody of the seal of the High court of Jharkhand. **31. Form of writs and other processes.—The law in force immediately before the appointed day** with respect to the form of writs and special processes used, issued or awarded by the High Court at Patna shall, with the necessary modificaitons, apply with respect to the form of writs and other processes used, issued or awarded by the High Court of Jharkhand. **32. Powers of Judges.—The law in force immediately before the appointed day relating to the** powers of the Chief Justice, single Judges and division courts of the High Court at Patna with respect to all matters ancillary to the exercise of those powers shall, with the necessary modification, apply in relation to the High Court of Jharkhand. **33. Procedure as to appeals to Supreme Court.—The law in force immediately before the** appointed day relating to appeals to the Supreme Court from the High Court at Patna and the Judges and division courts thereof shall, with the necessary modification, apply in relation to the High Court of Jharkhand. **34. Transfer of proceedings from High Court at Patna to High Court of Jharkhand.—(1) Except** as hereinafter provided, the High Court at Patna shall, as from the appointed day, have no jurisdiction in respect of the transferred territory. (2) Such proceedings pending in the High Court at Patna immediately before the appointed day as are certified, whether before or after that day, by the Chief Justice of the High Court, having regard to the places of accrual of the cause of action and both other circumstances, to be proceedings which are ought to be heard and decided by the High Court of Jharkhand shall as soon as may be after such certification, be transferred to the High Court of Jharkhand. (3) Notwithstanding anything contained in sub-sections (1) and (2) of this section or in section 27, but save as hereinafter provided, the High Court at Patna shall have, and the High Court of Jharkhand shall not have, jurisdiction to entertain, hear or dispose of appeals, applications for leave to appeal to the Supreme Court, applications for review and other proceedings where any such proceedings seek any relief in respect of any order passed by the High Court at Patna before the appointed day: Provided that if after such proceedings have been entertained by the High Court at Patna, it appears to the Chief Justice of the High Court that they ought to be transferred to the High Court of Jharkhand, he shall order that they shall be so transferred, and such proceedings shall thereupon be transferred accordingly. (4) Any order made by the High Court at Patna— (a) before the appointed day, in any proceeding to the High Court of Jharkhand by virtue of sub-section (2), or ----- (b) in any proceedings with respect to which the High Court at Patna retains jurisdiction by virtue of sub-section (3) shall for all purposes have effect, not only as an order or the High Court at Patna, but also as an order made by the High Court of Jharkhand. **35. Right to appear or to act in proceedings transferred to High Court of Jharkhand.—Any** person, who immediately before the appointed day, is an advocate entitled to practice or an attorney entitled to act, in the High Court at Patna and so authorised to appear or to act in any proceedings transferred from that High Court to the High Court of Jharkhand under section 34 shall have the right to appear or to act, as the case may be, in the High Court of Jharkhand in relation to those proceedings. **36. Interpretation.—For the purposes of section 34—** (a) proceedings shall be deemed to be pending in a court until that court has disposed of all issues between the parties, including any issues with respect to the taxation of the costs of the proceedings and shall include appeals, applications for leave to appeal to the Supreme Court, application for review, petitions for revision and petition for writs; (b) references to a High Court shall be construed as including references to a Judge or division court thereof, and reference to order made by a court or the Judge shall be construed as including references to a sentence, judgment or decree passed or made by that court of Judge. **37. Saving.—Nothing in this Part shall affect the application to the High Court of Jharkhand of any** provisions of the Constitution, and this Part shall have effect subject to any provision that may be made on or after the appointed day with respect to that High Court by any Legislature or other authority having power to make such provision. PART V AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES **38. Authorisation of expenditure of Jharkhand State.—The Governor of Bihar may, at any time** before the appointed day, authorise such expenditure from the Consolidated Fund of the State of Jharkhand as he deems necessary for any period not more than six months beginning with the appointed day pending the sanction of such expenditure by the Legislative Assembly of the State of Jharkhand: Provided that the Governor of Jharkhand may, after the appointed day, authorise such further expenditure as he deems necessary from the Consolidated Fund of the State of Jharkhand for any period not extending beyond the said period of six months. **39. Reports relating to accounts of Bihar State.—(1) The reports of the Comptroller and Auditor-** General of India referred to in clause (2) of article 151 relating to the accounts of the existing State of Bihar in respect of any period prior to the appointed day shall be submitted to the Governor of each of the successor States of Bihar and Jharkhand who shall cause them to be laid before the Legislature of that State. (2) The President, after considering the views of the State Legislatures of the successor States, may by order— (a) declare any expenditure incurred out of the Consolidated Fund of Bihar on any service in respect of any period prior to the appointed day during the financial year or in respect of any earlier financial year in excess of the amount granted for that service and for that year as disclosed in the reports referred to in sub-section (1) to have been duly authorised; and (b) provide for any action to be taken on any matter arising out of the said reports. **40. Distribution of revenue.—The President shall, by order, determine the share of States of Bihar** and Jharkhand in the total amount payable to the existing State of Bihar on the recommendation of the Finance Commission constituted under article 280 of the Constitution, in such manner as he thinks fit. PART VI APPORTIONMENT OF ASSETS AND LIABILITIES **41. Application of Part.—(1) The provisions of this Part shall apply in relation to the apportionment** of the assets and liabilities of the existing State of Bihar immediately before the appointed day. ----- (2) The successor States shall be entitled to receive benefits arising out of the decisions taken by the predecessor State and the successor States shall be liable to bear the financial liabilities arising out of the decisions taken by the existing State of Bihar. (3) The apportionment of assets and liabilities would be subject to such financial adjustment as may be necessary to secure just, reasonable and equitable apportionment of the assets and liabilities amongst the successor States. (4) Any dispute regarding the amount of financial assets and liabilities shall be settled through mutual agreement, failing which by order, by the Central Government on the advice of the Comptroller and Auditor-General of India **42. Land and goods.—(1) Subject to other provisions of this Part, all land and all stores, articles and** other goods belonging to the existing State of Bihar shall,— (a) if within the transferred territory, pass to the State of Jharkhand; or (b) in any other case, remain the property of the State of Bihar: Provided that where the Central Government is of opinion that any goods or class of goods should be distributed between the States of Bihar and Jharkhand, otherwise that according to the situation of the goods, the Central Government may issue such directions as it thinks fit for a just and equitable distribution of the goods and the goods shall pass to the successor States accordingly. (2) Stores held for specific purposes, such as use or utilisation in particular institutions, workshops or undertakings or on particular works under construction, shall pass to the successor States in whose territories such institutions, workshops, undertakings or works are located. (3) Stores relating to the Secretariat and offices of Heads of Departments having jurisdiction over the whole of the existing State of Bihar shall be divided as may be agreed upon between the successor States, or in default of such agreement, as the Central Government may by order direct for a just and equitable distribution of such stores. (4) Any other unissued stores of any class in the existing State of Bihar shall be divided between the successor States in proportion to the total stores of that class purchased in the period of three years prior to the appointed day, for the territories of the existing State of Bihar included respectively in each of the successor States: Provided that where such proportion cannot be ascertained in respect of any class of stores or where the value of any class of such stores does not exceed rupees ten thousand, that class of stores shall be divided between the successor States according to the population ratio. (5) In this section, the expression ―land‖ includes immovable property of every kind and any rights in or over such property, and the expression ―goods‖ does not include coins, bank notes and currency notes. **43. Treasury and bank balances.—The total of the cash balances in all treasuries of the State of** Bihar and the credit balances of the State with Reserve Bank of India, the State Bank of India or any other bank immediately before the appointed day shall be divided between the States of Bihar and Jharkhand according to the population ratio: Provided that for the purposes of such division, there shall be no transfer of cash balances from any treasury to any other treasury and the apportionment shall be effected by adjusting the credit balance of the two States in the books of the Reserve Bank of India on the appointed day: Provided further that if the State of Jharkhand has no account on the appointed day with the Reserve Bank of India, the adjustment shall be made in such manner as the Central Government may, by order, direct. **44. Arrears of taxes.—The right to recover arrears of any tax or duty on property, including arrears** of land revenue, shall belong to the successor State in which the property is situated, and the right to recover arrears of any other tax or duty shall be long to the successor State in whose territories the place of assessment of that tax or duty is included on the appointed day. ----- **45. Right to recover loans and advances.—(1) The right of the existing State of Bihar to recover** any loans or advances made before the appointed day to any local body, society, agriculturist or other person in an area within that State shall belong to the successor State in which that area is included on that day. (2) The right of the existing State of Bihar to recover any loans or advances made before the appointed day to any person or institution outside that State shall belong to the State of Bihar: Provided that any sum recovered in respect of any such loan or advance shall be divided between the States of Bihar and Jharkhand according to the population ratio. **46. Investments and credits in certain funds.—(1) The securities held in respect of the investments** made from Cash Balances Investment Account or from any Fund in the Public Account of the existing State of Bihar as specified in the Seventh Schedule shall be apportioned in the ratio of population of the successor States: Provided that the securities held in investments made from the Calamity Relief Fund of the existing State of Bihar shall be divided in the ratio of the area of the territories occupied by the successor States: Provided further that the balance in the Reserve Funds in the Public Account of Bihar created wholly out of appropriations from the Consolidated Fund of the existing State of Bihar, to the extent the balances have not been invested outside Government account, shall not be carried forward to similar Reserve Funds in the Public Account of, successor States. (2) The investments of the existing State of Bihar immediately before the appointed day, in any special fund, the objects of which are confined to a local area, shall belong to the State in which that area is included on the appointed day. (3) The investments of the existing State of Bihar immediately before the appointed day in any private, commercial or industrial undertaking, in so far as such investments have not been made or are deemed not to have been made from the cash balance investment account, shall pass to the State in which the principal seat of business of the undertaking is located. (4) Where any body corporate constituted under a Central Act, State Act or Provincial Act for the existing State of Bihar or any part thereof has, by virtue of the provisions of Part II, becomes an inter-State body corporate, the investments in, or loans or advances to, any such body corporate by the existing State of Bihar made before the appointed day shall, save as otherwise expressly provided by or under this Act, be divided between the States of Bihar and Jharkhand in the same proportion in which the assets of the body corporate are divided under the provisions of this Part. **47. Assets and liabilities of State undertakings.—(1) The assets and liabilities relating to any** commercial or industrial undertaking of the existing State of Bihar shall pass to the State in which the undertaking is located. (2) Where a depreciation reserve fund is maintained by the existing State of Bihar for any such commercial or industrial undertaking, the securities held in respect of investments made from that fund shall pass to the State in which the undertaking is located. **48. Public Debt.—(1) All liabilities on account of Public Debt and Public Account of the existing** State of Bihar outstanding immediately before the appointed day shall be apportioned in the ratio of population of the successor States unless a different mode of apportionment is provided under the provisions of this Act. (2) The individual items of liabilities to be allocated to the successor States and the amount of contribution required to be made by one successor State to another shall be such as may be ordered by the Central Government in consultation with the Comptroller and Auditor-General of India: Provided that till such orders are issued, the liabilities on account of Public Debt and Public Account of the existing State of Bihar shall continue to be the liabilities of the successor State of Bihar. (3) The liability on account of loans raised from any source and re-lent by the existing State of Bihar to such entities as may be specified by the Central Government and whose area of operation is confined to either of the successor States shall devolve on the respective States as specified in sub-section (4). ----- (4) The public debt of the existing State of Bihar attributable to loan taken from any source for the express purpose of re-lending the same to a specific institution and outstanding immediately before the appointed day shall— (a) if re-lent to any local body, body corporate or other institution in any local area, be the debt of the State in which the local area is included on the appointed day; or (b) if re-lent to the Bihar State Electricity Board, the Bihar State Road Transport Corporation, or the Bihar Housing Board or any other institution which becomes an inter-State institution on the appointed day, be divided between the States of Bihar and Jharkhand in the same proportion in which the assets of such body corporate or institution are divided under the provisions of Part VII of this Act. (5) Where a sinking fund or a depreciation fund is maintained by the existing State of Bihar for repayment of any loan raised by it, the securities held in respect of investments made from that fund shall be divided between the successor States of Bihar and Jharkhand in the same proportion in which the total public debt is divided between the two States under this section. (6) In this section, the expression ―Government security‖ means a security created and issued by a State Government for the purpose of raising a public loan and having any of the forms specified in, or prescribed under clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944). **49. Floating Debt.—The liability of the existing State of Bihar in respect of any floating loan to** provide short-term finance to any commercial undertaking shall be the liability of the State in whose territories the undertaking is located. **50. Refund of taxes collected in excess.—The liability of the existing State of Bihar to refund any** tax or duty on property, including land revenue, collected in excess shall be the liability of the successor State in whose territories the property is situated, and the liability of the existing State of Bihar to refund any other tax or duty collected in excess shall be the liability of the successor State in whose territories the place of assessment of that tax or duty is included. **51. Deposits, etc.—(1) The liability of the existing State of Bihar in respect of any civil deposit or** loan fund deposit shall, as from the appointed day, be the liability of the State in whose area the deposit has been made. (2) The liability of the existing State of Bihar in respect of any charitable or other endowment shall, as from the appointed day, be the liability of the State in whose area the institution entitled to the benefit of the endowment is located or of the State to which the objects of the endowment under the terms thereof, are confined. **52. Provident fund.—The liability of the existing State of Bihar in respect of the provident fund** account of a Government servant in service on the appointed day shall, as from that day, be the liability of the State to which that Government servant is permanently allotted. **53. Pensions.—The liability of the existing State of Bihar in respect of pensions and other retirement** benefits shall pass to, or be apportioned between, the successor States of Bihar and Jharkhand in accordance with the provisions contained in the Eighth Schedule to this Act. **54. Contracts.—(1) Where, before the appointed day, the existing State of Bihar has made any** contract in the exercise of its executive power for any purposes of the State, that contract shall be deemed to have been made in the exercise of the executive power— (a) if the purposes of the contract are, on and from the appointed day, exclusive purposes of either of the successor States of Bihar and Jharkhand; and (b) any other case, of the State of Bihar, and all rights and liabilities which have accrued, or may accrue under any such contract shall, to the extent to which they would have been rights or liabilities of the existing State of Bihar, be rights or liabilities of the State of Jharkhand or the State of Bihar, as the case may be: Provided that in any such case as is referred to in clause (b), the initial allocation of rights and liabilities made by this sub-section shall be subject to such financial adjustment as may be agreed upon between the successor States of Bihar and Jharkhand or in default of such agreement, as the Central Government may, by order, direct. ----- (2) For the purposes of this section, there shall be deemed to be included in the liabilities which have accrued or may accrue under any contract— (a) any liability to satisfy an order or award made by any court or other tribunal in proceedings relating to the contract; and (b) any liability in respect of expenses incurred in or in connection with any such proceedings. (3) This section shall have effect subject to the other provisions of this Part relating to the apportionment of liabilities in respect of loans, guarantees and other financial obligations; and bank balances and securities shall, notwithstanding that the partake of the nature of contractual rights, be dealt with under those provisions. **55. Liability in respect of actionable wrong.—Where, immediately before the appointed day, the** existing State of Bihar is subject to any liability in respect of any actionable wrong other than breach of contract, that liability shall,— (a) if the cause of action arose wholly within the territories which, as from that day, are the territories of either of the successor States of Bihar or Jharkhand, be a liability of that successor State; and (b) in any other case, be initially a liability of the State of Bihar, but subject to such financial adjustment as may be agreed upon between the States of Bihar and Jharkhand or, in default of such agreement, as the Central Government may, by order, direct. **56. Liability as guarantor.—Where, immediately before the appointed day, the existing State of** Bihar is liable as guarantor in respect of any liability of a registered co-operative society or other person, that liability of the existing State of Bihar shall— (a) if the area of operations of such society or persons is limited to the territories which, as from that day, are the territories of either of the States of Bihar or Jharkhand, be a liability of that successor State; and (b) in any other case, be initially a liability of the State of Bihar, subject to such financial adjustment as may be agreed upon between the States of Bihar and Jharkhand or, in default of such agreements, as the Central Government may, by order, direct. **57. Items in suspense.—If any item in suspense is ultimately found to affect an asset or liability of** the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance with that provision. **58. Residuary provision.—The benefit or burden of any asset or liability of the existing State of** Bihar not dealt with in the foregoing provisions of this Part shall pass to the State of Bihar in the first instance, subject to such financial adjustment a may be agreed upon between the States of Bihar and Jharkhand or, in default of such agreement, as the Central Government may, by order, direct. **59. Apportionment of assets or liabilities by agreement.—Where the successor States of Bihar and** Jharkhand agree that the benefit or burden of any particular asset or liability should be apportioned between them in a manner other than that provided for in the foregoing provisions of this Part, notwithstanding anything contained therein, the benefit or burden of that asset or liability shall be apportioned in the manner agreed upon. **60. Power of Central Government to order allocation or adjustment in certain cases.—Where,** by virtue of any of the provisions of this Part, any of the successor States of Bihar and Jharkhand becomes entitled to any property or obtains any benefits or becomes subject to any liability, and the Central Government is of opinion, on a reference made within a period of three years from the appointed day by either of the States, that it is just and equitable that property or those benefits should be transferred to, or shared with, the other successor State, or that a contribution towards that liability should be made by the other successor State, the said property or benefits shall be allocated in such manner between the two States, or the other State shall make to the State subject to the liability such contribution in respect thereof, as the Central Government may, after consultation with the two State Governments, by order, determine. ----- **61. Certain expenditure to be charged on Consolidated Fund.—All sums payable either by the** State of Bihar or by the State of Jharkhand to the other States or by the Central Government to either of those States, by virtue of the provisions of this Act, shall be charged on the Consolidated Fund of the State by which such sums are payable or, as the case may be, the Consolidated Fund of India. PART VII PROVISIONS AS TO CERTAIN CORPORATIONS **62. Provisions as to Bihar State Electricity Board, State Warehousing Corporation and State** **Road Transport Corporation.—(1) The following bodies corporate constituted for the existing State of** Bihar, namely:— (a) the State Electricity Board constituted under the Electricity Supply Act, 1948 (54 of 1948); (b) the State Warehousing Corporation established under the Warehousing Corporations Act, 1962 (58 of 1962); (c) the State Road Transport Corporation established under the Road Transport Act, 1950 (64 of 1950), shall, on and from the appointed day, continue to function in those areas in respect of which they were functioning immediately before that day, subject to the provisions of this section and to such directions as may, from time to time, be issued by the Central Government. (2) Any directions issued by the Central Government under sub-section (1) in respect of the Board or the Corporation shall include a direction that the Act under which the Board or the Corporation was constituted shall, in its application to that Board or Corporation, have effect subject to such exceptions and modifications as the Central Government thinks fit. (3) The Board or the Corporation referred to in sub-section (1) shall cease to function as from, and shall be deemed to be dissolved on such date as the Central Government may, by order, appoint; and upon such dissolution, its assets, rights and liabilities shall be apportioned between the successor States of Bihar and Jharkhand in such manner as may be agreed upon between them within one year of the dissolution of the Board or the Corporation, as the case may be, or if no agreement is reached, in such manner as the Central Government may, by order, determine: Provided that any liabilities of the said Board relating to the unpaid dues of the coal supplied to the Board by any public sector coal company shall be provisionally apportioned between the State Electricity Boards constituted respectively in the successor States of the existing State of Bihar or after the date appointed for the dissolution of the Board under this sub-section in such manner as may be agreed upon between the Governments of the successor States within one month of such dissolution or if no agreement is reached, in such manner as the Central Government may, by order, determine subject to reconciliation and finalisation of the liabilities which shall be completed within three months from the date of such dissolution by the mutual agreement between the successor States or failing such agreement by the direction of the Central Government: Provided further that an interest at the rate of two per cent. higher than the Cash Credit interest shall be paid on outstanding unpaid dues of the coal supplied to the Board by the public sector coal company till the liquidation of such dues by the concerned State Electricity Board constituted in the successor States on or after the date appointed for the dissolution of the Board under this sub-section. (4) Nothing in the preceding provisions of this section shall be construed as preventing the Government of the State of Bihar, or, as the case may be, the Government of the State of Jharkhand from constituting, at any time on or after the appointed day, State Electricity Board or a State Warehousing Corporation or a Road Transport Corporation for the State under the provisions of the Act relating to such Board or Corporation; and if such a Board or Corporation is so constituted in either of the States before the dissolution of the Board or the Corporation referred to in sub-section (1),— (a) provision may be made by order of the Central Government enabling the new Board or the new Corporation to take over from the existing Board or Corporation all or any of its undertakings, assets, rights and liabilities in that State, and ----- (b) upon the dissolution of the existing Board or Corporation,— (i) any assets, rights and liabilities which would otherwise have passed to that State by or under the provisions of sub-section (3) shall pass to the new Board or the new Corporation instead of to that State; (ii) any employee who would otherwise have been transferred to or re-employed by that State under sub-section (3), read with clause (i) of sub-section (5), shall be transferred to or re-employed by the new Board or the new Corporation instead of to or by that State. (5) An agreement entered into between the successor States under sub-section (3) and an order made by the Central Government under that sub-section or under clause (a) of sub-section (4) may provide for the transfer or re-employment of any employee of the Board or the Corporation referred to in sub-section (1),— (i) to or by the successor States, in the case of an agreement under sub-section (4) or an order made under that sub-section; (ii) to or by the new Board or the new Corporation constituted under sub-section (4), in the case of an order made under clause (a) of that sub-section, and, subject to the provisions of section 65, also for the terms and conditions of service applicable to such employees after such transfer or re-employment. **63. Continuance of arrangements in regard to generation and supply of electric power and** **supply of water.—If it appears to the Central Government that the arrangement in regard to the** generation or supply of electric power or the supply of water for any area or in regard to the execution of any project for such generation or supply has been or is likely to be modified to the disadvantage of that area by reason of the fact that it is, by virtue of the provisions of Part II of this Act, outside the State in which the power stations and other installations for the generation and supply of such power, or the catchment area, reservoirs and other works for the supply of water, as the case may be, are located, the Central Government may give such directions as it deems proper to the State Government or other authority concerned for the maintenance, so far as practicable, of the previous arrangement. **64. Provisions as to Bihar State Financial Corporation.—(1) The Bihar State Financial** Corporation established under the State Financial Corporation Act, 1951 (63 of 1951) shall, on and from the appointed day, continue to function in those areas in respect of which it was functioning immediately before that day, subject to the provisions of this section and to such directions as may, from time to time, be issued by the Central Government. (2) Any directions issued by the Central Government under sub-section (1) in respect of the Corporation may include a direction that the said Act, in its application to the Corporation, shall have effect subject to such exceptions and modifications as may be specified in the direction. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Board of Directors of the Corporation may, with the previous approval of the Central Government and shall, if so required by the Central Government, convene at any time after the appointed day a meeting for the consideration of a scheme for the reconstitution or reorganisation or dissolution, as the case may be, of the Corporation, including proposals regarding the formation of new Corporation, and the transfer thereto of the assets, rights and liabilities of the existing Corporation, and if such a scheme is approved at the general meeting by a resolution passed by a majority of the shareholders present and voting, the scheme shall be submitted to the Central Government for its sanction. (4) If the scheme is sanctioned by the Central Government either without modifications or with modifications which are approved at a general meeting, the Central Government shall certify the scheme, and upon such certification, the scheme shall, notwithstanding anything to the contrary contained in any law for the time being in force, be binding on the corporations affected by the scheme as well as the shareholders and creditors thereof. (5) If the scheme is not so approved or sanctioned, the Central Government may refer the scheme to such Judge of the High Court at Patna and Jharkhand as may be nominated in this behalf by the Chief Justice thereof, and the decision of the Judge in regard to the scheme shall be final and shall be binding on the corporations affected by the scheme as well as the shareholders and creditors thereof. ----- (6) Nothing in the preceding provisions of this section shall be construed as preventing the Government of the States of Bihar and Jharkhand from constituting, at any time on or after the appointed day, a State Financial Corporation for that State under the State Financial Corporations Act, 1951 (63 of 1951). **65. Provisions as to certain companies.—(1) Notwithstanding anything contained in the foregoing** provisions of this Part, each of the companies specified in the Ninth Schedule to this Act shall, on and from the appointed day and until otherwise provided for in any law, or in any agreement among the successor States, or in any direction issued by the Central Government, continue to function in the areas in which it was functioning immediately before that day; and the Central Government may, from time to time, issue such directions in relation to such functioning as it may deem fit, notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law. (2) Any directions issued under sub-section (1) in respect of a company referred to in that sub-section, may include directions— (a) regarding the division of the interests and shares of existing state of Bihar in the company among the successor States; (b) requiring the reconstitution of the Board of Directors of the company so as to give adequate representation to both the successor States. **66. General provision as to statutory corporations.—(1) Save as otherwise expressly provided by** the foregoing provisions of this Part, where anybody corporate constituted under a Central Act, State Act or Provincial Act for the existing State of Bihar or any part thereof has, by virtue of the provisions of Part II of this Act, become an inter-State body corporate, then, the body corporate shall, on and from the appointed day, continue to function and operate in those areas in respect of which it was functioning and operating immediately before that day, subject to such directions as may from time to time be issued by the Central Government, until other provision is made by law in respect of the said body corporate. (2) Any directions issued by the Central Government under sub-section (1) in respect of any such body corporate shall include a direction that any law by which the said body corporate is governed shall, in its application to that body corporate, have effect subject to such exceptions and modifications as may be specified in the direction. **67. Temporary provisions as to continuance of certain existing road transport permits.—(1)** Notwithstanding anything contained in section 88 of the Motor Vehicles Act, 1988 (59 of 1988) a permit granted by the State Transport Authority of the existing State of Bihar or any Regional Transport Authority in that State shall, if such permit was, immediately before the appointed day, valid and effective in any area in the transferred territory, be deemed to continue to be valid and effective in that area after that day subject to the provisions of that Act as for the time being in force in that area; and it shall not be necessary for any such permit to be countersigned by the State Transport Authority of Jharkhand or any Regional Transport Authority therein for the purpose of validating it for use in such area: Provided that the Central Government may, after consultation with the successor State Government or Governments concerned add to, amend or vary the conditions attached to the permit by the Authority by which the permit was granted. (2) No tolls, entrance fees or other charges of a like nature shall be levied after the appointed day in respect of any transport vehicle for its operations in any of the successor States under any such permit, if such vehicle was, immediately before that day, exempt from the payment of any such toll, entrance fees or other charges for its operations in the transferred territory: Provided that the Central Government may, after consultation with the State Government or Governments concerned, authorise the levy of any such toll, entrance fees or other charges, as the case may be. **68. Special provisions relating to retrenchment compensation in certain cases.—Where on** account of the reorganisation of the existing State of Bihar under this Act, any body corporate constituted under a Central Act, State Act or Provincial Act, any co-operative society registered under any law relating to co-operative societies or any commercial or industrial undertaking of that State is reconstituted or reorganised in any manner whatsoever or is amalgamated with any other body corporate, co-operative ----- society or undertaking, or is dissolved, and in consequence of such reconstitution, reorganisation, amalgamation or dissolution, any workman employed by such body corporate or in any such co-operative society or undertaking, is transferred to, or re-employed by any other body corporate, or in any other co-operative society or undertaking, then notwithstanding anything contained in section 25F, 25FF or 25FFF of the Industrial Disputes Act, 1947 (14 of 1947) such transfer or re-employment shall not entitle in to any compensation under that section: Provided that— (a) the terms and conditions of service applicable to the workman after such transfer or re-employment are not less favorable to the workman than those applicable to him immediately before the transfer or re-employment; (b) the employer in relation to the body corporate, the co-operative society or the undertaking where the workman transferred or re-employed is, by agreement or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation under section 25F, 25FF or 25FFF of the Industrial Disputes Act, 1947 (14 of 1947) on the basis that his service has been continuous and has not been interrupted by the transfer or re-employment. **69. Special provision as to income-tax.—Where the assets, rights and liabilities of any body** corporate carrying on business are, under the provisions of this Part, transferred to any other bodies corporate which after the transfer carry on the same business, the losses or profits or gains sustained by the body corporate first mentioned which, but for such transfer, would have been allowed to be carried forward and set off in accordance with the provisions of Chapter VI of the Income-tax Act, 1961 (43 of 1961) shall be apportioned amongst the transferee bodies corporate in accordance with the rules to be made by the Central Government in this behalf and, upon such apportionment, the share of loss allotted to each transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of the said Act, as if the transferee body corporate had itself sustained such loss in a business carried on by it in the years in which these losses were sustained. **70. Continuance of facilities in certain State institutions.—(1) The Government of State of Bihar** or Jharkhand, as the case may be, shall, in respect of the institutions specified in the Tenth Schedule to this Act, located in that State, continue to provide facilities to the people of the other State which shall not, in any respect, be less favourable to such people than what were being provided to them before the appointed day, for such period and upon such terms and conditions as may be agreed upon between the two State Governments before the 1st day of December, 2001 or if no agreement is reached by the said date as may be fixed by order of the Central Government. (2) The Central Government may, at any time before the 1st day of December, 2001 by notification in the Official Gazette, specify in the Tenth Schedule any other institution existing on the appointed day in the States of Bihar and Jharkhand and on the issue of such notification, the Schedule shall be deemed to be amended by the inclusion of the said institution therein. PART VIII PROVISIONS AS TO SERVICES **71. Provisions relating to All-India Services.—(1) In this section, the expression ―State cadre‖—** (a) in relation to the Indian Administrative Service, has the meaning assigned to it in the Indian Administrative Service (Cadre) Rules, 1954; (b) in relation to the Indian Police Service, has the meaning assigned to it in the Indian Police Service (Cadre) Rules, 1954; and (c) in relation to the Indian Forest Service, has the meaning assigned to it in the Indian Forest Service (Cadre) Rules, 1966. (2) In place of the cadres of the Indian Administrative Service, Indian Police Service and Indian Forest Service for the existing State of Bihar, there shall, on and from the appointed day, be two separate cadres, one for the State of Bihar and the other for the State of Jharkhand in respect of each of these services. (3) The initial strength and composition of the State cadres referred to in sub-section (2) shall be such as the Central Government may, by order, determine before the appointed day. (4) The members of each of the said service borne on the Bihar cadre thereof immediately before the appointed day shall be allocated to the State cadres of the same service constituted under sub-section (2) in such manner and with effect from such date or dates as the Central Government may, by order, specify. ----- (5) Nothing in this section shall be deemed to affect the operation, on or after the appointed day, of the All-India Service Act, 1951 (61 of 1951) or the rules made thereunder. **72. Provisions relating to services in Bihar and Jharkhand—(1) Every person who immediately** before the appointed day is serving in connection with the affairs of the existing State of Bihar shall, on and from that day provisionally continue to serve in connection with the affairs of the State of Bihar unless he is required, by general or special order of the Central Government to serve provisionally in connection with the affairs of the State of Jharkhand: Provided that no direction shall be issued under this section after the expiry of a period of one year from the appointed day. (2) As soon as may be after the appointed day, the Central Government shall, by general or special order, determine the successor State to which every person referred to in sub-section (1) shall be finally allotted for service and the date with effect from which such allotment shall take effect or be deemed to have taken effect. (3) Every person who is finally allotted under the provisions of sub-section (2) to a successor State shall, if he is not already serving therein be made available for serving in the successor State from such date as may be agreed upon between the Governments concerned or in default of such agreement, as may be determined by the Central Government. **73. Other provisions relating to services.—(1) Nothing in section 72 shall be deemed to affect on or** after the appointed day the operation of the provisions of Chapter I of Part XIV of the Constitution in relation to determination of the conditions of service of persons serving in connection with the affairs of the Union or any State: Provided that the conditions of service applicable immediately before the appointed day in the case of any person deemed to have been allocated to the State of Bihar or to the State of Jharkhand under section 72 shall not be varied to his disadvantage except with the previous approval of the Central Government. (2) All services prior to the appointed day rendered by a person— (a) if he is deemed to have been allocated to any State under section 72, shall be deemed to have been rendered in connection with the affairs of that State; (b) if he is deemed to have been allocated to the Union in connection with the administration of the Jharkhand shall be deemed to have been rendered in connection with the affairs of the Union, for the purposes of the rules regulating his conditions of service. (3) The provisions of section 72, shall not apply in relation to members of any All-India Service. **74. Provisions as to continuance of officers in same post.—Every person who, immediately before** the appointed day is holding or discharging the duties of any post or office in connection with the affairs of the existing State of Bihar in any area which on that day falls within any of the successor States shall continue to hold the same post or office in that successor State, and shall be deemed, on and from that day, to have been duly appointed to the post or office by the Government of, or any other appropriate authority in, that successor State: Provided that nothing in this section shall be deemed to prevent a competent authority, on and from the appointed day, from passing in relation to such person any order affecting the continuance in such post or office. **75. Advisory Committees.—The Central Government may by order establish one or more Advisory** Committees for the purpose of assisting it in regard to— (a) the discharge of any of its functions under this Part; and (b) the ensuring of fair and equitable treatment to all persons affected by the provisions of this Part and the proper consideration of any representations made by such persons. **76. Power of Central Government to give directions.—The Central Government may give such** directions to the State Government of Bihar and the State Government of Jharkhand as may appear to it to be necessary for the purpose of giving effect to the foregoing provisions of this Part and the State Government shall comply with such directions ----- **77. Provisions as to State Public Service Commission.—(1) The Public Service Commission for** the existing State of Bihar shall, on and from the appointed day, be the Public Service Commission for the State of Bihar. (2) The persons holding office immediately before the appointed day as Chairman or other member of the Public Service Commission for the existing State of Bihar shall, as from the appointed day, be the Chairman or, as the case may be, the other member of the Public Service Commission for the State of Bihar. (3) Every person who becomes Chairman or other member of the Public Service Commission for the State of Bihar on the appointed day under sub-section (2), shall— (a) be entitled to receive from the Government of the State of Bihar conditions of service not less favourable than those to which he was entitled under the provisions applicable to him; (b) subject to the proviso to clause (2) of article 316, hold office or continue to hold office until the expiration of his term of office as determined under the provisions applicable to him immediately before the appointed day. (4) The report of the Bihar Public Service Commission as to the work done by the Commission in respect of any period prior to the appointed day shall be presented under clause (2) of article 323 to the Governors of the States of Bihar and Jharkhand, and the Governor of the State of Bihar shall, on receipt of such report, cause a copy thereof together with a memorandum explaining as far as possible, as respects the cases, if any, where the advice of the Commission was not accepted, the reasons for such non-acceptance to be laid before the Legislature of the State of Bihar and it shall not be necessary to cause such report or any such memorandum to be laid before the Legislative Assembly of the State of Jharkhand. PART IX MANAGEMENT AND DEVELOPMENT OF WATER RESOURCES **78. Water Resources Development and its Management.—(1) Notwithstanding anything contained** in this Act but subject to the provisions of section 79, all rights and liabilities of the existing State of Bihar in relation to water resource projects in relation to,— (i) Ganga and its tributaries; and _(ii) Sone and its tributaries,_ shall, on the appointed day be the rights and liabilities of the successor States in such proportion as may be fixed and subject to such adjustments as may be made, by agreement entered into by the said States after consultation with the Central Government, or, if no such agreement is entered into within two years of the appointed day, then the Central Government may, by order, determine within one year having regard to the purposes of the project: Provided that the order so made by the Central Government may be varied by any subsequent agreement entered into by the successor States after consultation with the Central Government. (2) An agreement or order referred to in sub-section (1) shall, where an extension or further development of any of the projects referred to in that sub-section after the appointed day is undertaken, be the rights and liabilities of the successor States in relation to such extension or further development. (3) The rights and liabilities referred to in sub-sections (1) and (2) shall include,— (a) the right to receive and utilise the water available for distribution as a result of the projects; and (b) the right to receive and utilise the power generated as a result of the projects, but shall not include the rights and liabilities under any contract entered into before the appointed day by the Government of the existing State of Bihar with any person or authority other than Government. **79. Constitution and functions of Management Board.—(1) The Central Government shall** constitute a Board to be called the Ganga and Sone Management Board (hereinafter referred to as the Board) for administration, construction, maintenance and operation of projects referred to in sub-section (1) of section 78 for any or for a combination of following purposes, namely:— (i) Irrigation; ----- (ii) Rural and Urban Water Supply; (iii) Hydro Power generation; (iv) Navigation; (v) Industries; and (vi) for any other purpose which the Central Government may, by notification in the Official Gazette, specify. (2) The Board shall consist of— (a) a whole-time Chairman and two whole-time members to be appointed by the Central Government; (b) a representative each of the Government of the States of Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh to be nominated by the respective Governments; (c) two representatives of the Central Government to be nominated by that Government. (3) The functions of the Board shall include— (a) the regulation of supply of water from the projects referred to in sub-section (1) of section 78 to States of Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh having regard to— (i) any agreement entered into or arrangement made covering the Governments of existing State of Bihar and the States of Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh, and (ii) the agreement or the order referred to in sub-section (2) of section 78; (b) the regulation of supply of power generated at the projects referred to in sub-section (1) of section 78, to any Electricity Board or other authority incharge of the distribution of power having regard to— (i) any agreement entered into or arrangement made covering the Governments of existing State of Bihar and the States of Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh, and (ii) the agreement or the order referred to in sub-section (2) of section 78; (c) the examination of the requirement of funds for various projects in terms of the programme laid down for such projects and to advise the apportionment of the expenditure to the participating States keeping in view the agreement on the sharing of cost; (d) to decide the withdrawal of water from the reservoirs during the construction period for irrigation and power purposes with a view to securing better use of available water; (e) the responsibility of devising programme of resettlement for persons displaced as a result of Irrigation Projects; (f) construction of such of the remaining or new works connected with the development of the water resource project relating to the rivers or their tributaries as the Central Government may specify by notification in the Official Gazette; and (g) such other functions as the Central Government may after consultation with the Governments of the States of Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh entrust to it. **80. Staff of the Management Board.—(1) The Board may employ such staff, as it may consider** necessary for the efficient discharge of its functions under this Act: Provided that every person who immediately before the constitution of the said Board was engaged in the construction, maintenance or operation of the works relating to the projects referred to in sub-section (1) of section 78 shall continue to be so employed under the Board in connection with the said works on the same terms and conditions of the service as were applicable to him before such constitution until the Central Government by order, directs otherwise: ----- Provided further that the said Board may at any time in consultation with the State Governments or the Electricity Board concerned and with prior approval of the Central Government retain any such person for service under that State Government or Board. (2) The Government of the States of Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh shall at all times provide the necessary funds to the Board to meet all expenses (including the salaries and allowances of the staff) required for the discharge of its functions and such amounts shall be apportioned among the States concerned in such proportion as the Central Government may having regard to the benefits to each of the said States specify. (3) The Board shall be under the control of the Central Government and shall comply with such directions, as may from time to time, be given to it by that Government. (4) The Board may, with the approval of the Central Government delegate such of its powers, functions and duties as it may deem fit to the Chairman of the said Board or to any officer subordinate to the Board. (5) The Central Government may, for the purpose of enabling the Board to function efficiently, issue such directions to the State Governments concerned, or any other authority, and the State Governments, or the other authority shall comply with such directions. **81. Jurisdiction of the Board.—(1) The Board shall, ordinarily exercise jurisdiction in regard to** any of the projects referred to in sub-section (1) of section 78 over headwork (barrages, dams, reservoir, regulating construction), part of canal network and transmission lines necessary to deliver water or power to the States concerned. (2) If any question arises as to whether the Board has jurisdiction under sub-section (1) over any project referred thereto, the same shall be referred to the Central Government for decision thereon. **82. Power to make regulations.—The Board may, with the prior approval of the Central** Government by notification in the Official Gazette, make regulations consistent with this Act and orders made thereunder, to provide for— (a) regulating the time and place of meetings of the Board and the procedure to be followed for the transaction of business at such meetings; (b) delegation of powers and duties to the Chairman or any officer of the Board; (c) the appointment and regulation of the conditions of service of the officers and other staff of the Board; and (d) any other matter for which regulations are considered necessary by the Board. PART X LEGAL AND MISCELLANEOUS PROVISIONS **83. Amendment of Act 37 of 1956.—On and from the appointed day, in section 15 of the States** Reorganisation Act, 1956, in clause (c), for the word ―Bihar‖, the words ―Bihar and Jharkhand‖ shall be substituted. **84. Territorial extent of laws.—The provisions of Part II of this Act shall not be deemed to have** effected any change in the territories to which any law in force immediately before the appointed day extends or applies, and territorial references in any such law to the State of Bihar shall, until otherwise provided by a competent Legislature or other competent authority be construed as meaning the territories within the existing State of Bihar before the appointed day. **85. Power to adapt laws.—For the purpose of facilitating the application in relation to the State of** Bihar or Jharkhand of any law made before the appointed day, the appropriate Government may, before the expiration of two years from that day, by order, make such adaptations and modifications of the law, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to the adaptations and modifications so made until altered, repealed or amended by a competent Legislature or other competent authority. _Explanation.—In this section, the expression ―appropriate Government‖ means as respects any law_ relating to a matter enumerated in the Union List, the Central Government, and as respects any other law in its application to a State, the State Government. ----- **86. Power to construe laws.—Notwithstanding that no provision or insufficient provision has been** made under section 85 for the adaptation of a law made before the appointed day, any court, tribunal or authority, required or empowered to enforce such law may, for the purpose of facilitating its application in relation to the State of Bihar or Jharkhand, construe the law in such manner, without affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority. **87. Power to name authorities, etc., for exercising statutory functions.—The Government of the** State of Jharkhand, as respects the transferred territory may, by notification in the Official Gazette, specify the authority, officer or person who, on or after the appointed day, shall be competent to exercise such functions exercisable under any law in force on that day as may be mentioned in that notification and such law shall have effect accordingly. **88. Legal proceedings.—Where immediately before the appointed day, the existing State of Bihar is** a party to any legal proceedings with respect to any property, rights or liabilities subject to apportionment between the States of Bihar and Jharkhand under this Act, the State of Bihar or Jharkhand which succeeds to, or acquires a share in, that property or those rights or liabilities by virtue of any provision of this Act shall be deemed to be substituted for the existing State of Bihar or added as a part to those proceedings, and the proceedings may continue accordingly. **89. Transfer of pending proceedings.—(1) Every proceeding pending immediately before the** appointed day before a court (other than the High Court), tribunal, authority or officer in any area which on that day falls within the State of Bihar shall, if it is a proceeding relating exclusively to the territory, which as from that day is the territory of Jharkhand State, stand transferred to the corresponding court, tribunal, authority or officer of that State. (2) If any question arises as to whether any proceeding should stand transferred under sub-section (1), it shall be referred to the High Court at Patna and the decision of that High Court shall be final. (3) In this section— (a) ―proceeding‖ includes any suit, case or appeal; and (b) ―corresponding court, tribunal, authority or officer‖ in the State of Jharkhand means— (i) the court, tribunal, authority or officer in which, or before whom, the proceeding would have laid if it had been instituted after the appointed day; or (ii) in case of doubt, such court, tribunal, authority, or officer in that State, as may be determined after the appointed day by the Government of that State or the Central Government, as the case may be, or before the appointed day by the Government of the existing State of Bihar to be the corresponding court, tribunal, authority or officer. **90. Right of pleaders to practise in certain cases.—Any person who, immediately before the** appointed day, is enrolled as a pleader entitled to practise in any subordinate courts in the existing State of Bihar shall, for a period of one year from that day continue to be entitled to practise in those courts, notwithstanding that the whole or any part of the territories within the jurisdiction of those courts has been transferred to the State of Jharkhand. **91. Effect of provisions of the Act inconsistent with other laws.—The provisions of this Act shall** have effect notwithstanding anything inconsistent therewith contained in any other law. **92. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the President may, by order, do anything not inconsistent with such provisions which appears to him to be necessary or expedient for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of a period of three years from the appointed day. (2) Every order made under this section shall be laid before each House of Parliament. ----- THE FIRST SCHEDULE (See section 8) (i) Of the seven sitting members whose term of office will expire on 9th April, 2002, namely, 1[Obaidullah Khan], 1[Ven Dhamma Viriyo], Shri Nagendra Nath Ojha, Shri Prem Chand Gupta, Shri Ranjan Prasad Yadav, Shri 1[Shatrughan Prasad Sinha] and Shri Ram Deo Bhandari, 1[Obaidullah Khan] and 1[Ven Dhamma Viriyo], shall be deemed to have been elected to fill two of the seats allotted to the State of Jharkhand and the other five sitting members shall be deemed to have been elected to fill five of the seats allotted to the State of Bihar. (ii) Of the seven sitting members whose term of office will expire on 7th July, 2004, namely, Shri Shibu Soren, Shri Gaya Singh, Shri Parmeshwar Kumar Agrawala, Shri Anil Kumar, Dr R.K. Yadav Ravi, Shri Kapil Sibal, Smt. Saroj Dubey, Shri Shibu Soren and Shri Parmeshwar Kumar Agrawala shall be deemed to have been elected to fill two of the seats allotted to the State of Jharkhand and the other five sitting members shall be deemed to have been elected to fill five of the seats allotted to the State of Bihar. (iii) Of the eight sitting members whose term of office will expire on 2nd April, 2006, namely, Shri S.S. Ahluwalia, Smt. Kum Kum Rai, Shri Faguni Ram, Shri Mahendra Prasad, Shri Ravi Shankar Prasad, Shri Rajiv Ranjan Singh, Shri Ram Kumar Anand and Shri Vijay Singh Yadav, Shri S.S. Ahluwalia and Shri Ram Kumar Anand, shall be deemed to have been elected to fill two of the seats allotted to the State of Jharkhand and the other six sitting members shall be deemed to have been elected to fill six of the seats allotted to the State of Bihar. 1 Subs by notification No G S R 675(E) (w e f 19 8 2003) ----- THE SECOND SCHEDULE (See section 10) In the Delimitation of Parliamentary and Assembly Constituencies Order, 1976,— (i) in Schedule I— (a) for serial number 3 and the entries relating thereto, the following shall be substituted, namely:— 1 1 2 3 4 5 6 7 ―3 Bihar 53 7 5 40 7 ..‖; (b) after serial number 21, the following serial number and entries shall be inserted, namely:— 1 2 3 4 5 6 7 ―21A Jharkhand .. .. 14 1 5..‖; (ii) in Schedule II,— (a) for serial number 3 and the entries relating thereto, the following shall be substituted, namely:— 1 2 3 4 5 6 7 ―3 Bihar 318 45 29 243 39 ..‖; (b) after serial number 21, the following serial number and entries shall be inserted, namely:— 1 2 3 4 5 6 7 ―21A Jharkhand .. .. 81 9 28‖; (iii) in Schedule V,— (a) in Part A—Parliamentary Constituencies,— (A) serial numbers 26 to 28, 44 to 54 and the entries relating thereto shall be omitted; (B) against serial number 29,— (1) the entry ―158 Deoghar (SC)‖ shall be omitted; (2) after entry ―176-Kataria‖, the entry ―177-Chakai‖ shall be inserted; (C) against serial number 30, the entry ―164-Mahagama‖ shall be omitted; (D) against serial number 30, for the figures and words [1][ ―171-Sultanganj‖ and ―173-Dhuraiya‖ the figures, words and letters ―171-Sultanganj (SC)‖ and ―173-Dhuraiya (SC)‖ shall be substituted]; (E) against serial number 40, after entry ―241-Goh‖, the entry ―251-Imamganj (SC)‖ shall be inserted; (F) against serial number 42, for entry ―256-Atri‖, the entry ―255-Fatehpur (SC), 256- Atri‖ shall be substituted; (G) against serial number 43, after entry ―253-Bodhgaya (SC)‖, the entry ―254-Barachatti (SC)‖ shall be inserted; (b) in Part B—Assembly Constituency, serial numbers 147 to 164, 262 to 324 and the entries relating thereto shall be omitted. 1 Subs by notification No G S R 675(E) (w e f 19 8 2003) ----- (iv) after Schedule XXII, the following Schedule shall be inserted, namely:— ―SCHEDULE XXIIA JHARKHAND Part A.—PARLIAMENTARY CONSTITUENCIES Serial No. Name and extent of constituencies **1.** **Rajmahal** (ST).—l-Rajmahal, [1][2-Borio (ST)], 3-Barhait (ST), 4-Litipara (ST), 5-Pakaur, 6-Maheshpur (ST). **2. Dumka (ST).—7-Sikaripara (ST), 8-Nala, 9-Jamtara, 14-Sarath, 10-Dumka (ST), 11- Jama (ST).** **3. Godda.—13-Madhupur, 15-Deoghar (SC), 12-Jarmundi, 16-Poreyahat, 17-Godda,18-Mahagama.** **4. Chatra.—27-Chatra (SC), 26-Simaria (SC), 74-Latehar (SC), 75-Panki, 73-Manika (ST).** **5. Kodarma.—19-Kodarma, 20-Barkatha, 28-Dhanwar, 29-Bagodar, 30-Jamua (SC), 31-Gandey.** **6. Giridih.—32-Giridih, 33-Dumri, 34-Gomia, 35-Bermo, 42- Tundi, 43-Baghmara.** **7. Dhanbad.—36-Bokaro, 38-Sindri, 39-Nirsa, 40-Dhanbad, 41-Jharia, 37-Chandankiyari (SC).** 8. Ranchi.—50-Ichagarh, 61-Silli, 62-Khijri (ST), 63-Ranchi; 64-Hatia, 65-Kanke (SC). **9.** **Jamshedpur.—[1][44-Bahragora],** 45-Ghatsila (ST), 46-Potka (ST), 47-Jugsalai (SC), 48-Jamshedpur-East, 49-Jamshedpur-West. **10. Singhbhum (ST).—51-Seraikela (ST), 52-Chaibasa (ST), 53-Majhgaon (ST),** 54-Jaganathpur (ST), 55-Manoharpur (ST), [1][56-Chakradharpur (ST)]. **11. Khunti (ST).—57-Kharsawar (ST), 58-Tamar (ST), 59-Torpa (ST), 60-Khunti (ST), 71-Kolebira** (ST), 70- Simdega (ST). **12.** **Lohardaga (ST).—66-Mandar (ST), 67-Sisai (ST), 68-Gumla (ST), 69-Bishunpur (ST),** 1[72-Lohardaga (ST)]. **13.** **Palamau** **(SC).—76-Daltonganj,** 80-Garhwa, 81-Bhawanathpur, 77-Bishrampur, 78-Chhatarpur (SC), 79-Hussainabad. **14. Hazaribagh.—21-Barhi, 22-Barkagaon, 23-Ramgarh, 24-Mandu, 25-Hazaribagh.** 1. Subs. by notification No. G.S.R. 675(E) (w.e.f. 19-8-2003). ----- **PART B.—ASSEMBLY CONSTITUENCIES** Serial No. Name and extent of constituencies **SAHEBGANJ DISTICT** **1. Rajmahal.—Rajmahal and Sahebganj Police Stations in Rajmahal Sub-division.** **2. Borio (ST).—Borio and Taljhari Police Stations in Rajmahal sub-division; and Boarijor Police** Station (excluding G.Ps. Rajabhita, Kero, Kairasol, Bara Telo and Barapipra) in Godda sub-division. **3. Barhait (ST).—Barhait and Ranga Police Stations in Rajmahal sub-division; and Sundarpahari** Police Station and G.Ps. Rajabhita, Kera, Kairasol, Bara Telo and Barapipra in Boarijar Police Station in Godda sub-division. **PAKAUR DISTRICT** **4. Litipara (ST).—Litipara, Amrapara and Hiranpur Police Stations in Pakaur sub-division; and** Gopikandar Police Station in Dumka Sadar sub-division. **5. Pakaur.—Pakaur Police Station in Pakaur sub-division; and Barharwa Police Station in Rajmahal** sub-division. **6. Mahaeshpur (ST).—Maheshpur and Pakuria Police station in Pakaur sub-division.** **DUMKA DISTRICT** **7. Sikaripara (ST).—Sikaripara, Raneshwar and kathikund Police Stations in Dumka Sadar** sub-division. **8. Nala.—Nala and Kundahit Police Stations in Jamtara sub-division.** **9. Jamtara.—Jamtara Police Stations (excluding G.Ps. Karmatanr, Sahajpur, Pindari, Lakhanpur,** Rataniya, Rampurbhitra and Kajra) and Narayanpur Police Station in Jamtara sub-division. **10. Dumka (ST).—Dumka Town, Dumka Mufassil and Masalia Police Stations in Dumka Sadar** sub-division. **11. Jama (ST).—Jama and Ramgarh Police Stations in Dumka Sadar sub-division.** **12.Jarmundi.— Jarmundi Police Station in Dumka Sadar sub-division; and Sarawan Police Station** in Deoghar sub-division. **DEOGHAR DISTRICT** **13. Madhupur.—Madhupur and Karon Police Stations and G.Ps.** Kusmil, Chanddih, Pathra and Basbariya in Jasidih Police Station in Deoghar sub-division. **14. Sarath. —Sarath and Palojori Police Stations in Deoghar sub-division; and G.Ps. Karmatanr,** Sahajpur, Pindari, Lakhanpur, Rataniya, Rampurbhitra and Kajra in Jamtara Police Station in Jamtara sub-division. **15. Deoghar (SC).—Deoghar Town and Mohanpur Police Stations and Jasidih Police Station** (excluding G.Ps. Kusmil, Chanddih, Pathra and Basbariya) in Deoghar sub-division. **GODDA DISTRICT** **16. Poreyahat.—Poreyahat Police Station and G.Ps. Burhikura, Dammajhilua, Sandmara, Nonbatta,** Makhni, Pathra nad Punsiya in Godda Police Station in Godda sub-division; and Saraiyahat Police Station in Dumka Sadar sub-division. **17. Godda.—Godda Police Station (excluding G.Ps. Burhikura, dammajhilua, Sandmara, Nonbatta,** Makhni, Pathra and Punsiya) and Pathargama Police Station in Godda sub-division. **18. Mahagama.—Mahagama and Meherma Police Stations in Godda sub-division.** ----- Serial No. Name and extent of constituencies **KODARMA DISTRICT** **19. Kodarma.— Kodarma and [1][Satgawan] Police Stations in Kodarma sub-division.** **HAZARIBAGH DISTRICT** **20. Barkatha.— Barkatha and Jainagar Police Stations in Kodarma sub-division;** [2]***; and Ichak Police Station in Hazaribagh Sadar sub-division. **21. Barhi.—Barhi Police Station in Hazaribagh Sadar sub-division; and Chauparan Police Station in** Kodarma sub-division. **22. Barkagaon.—Barakgaon Police Station and G.Ps. Terpa, Patratu, Koto, Palani,[1][Haphua],** 1[Hariharpur], Gegda, Deoria, Bargama, Pali, Salgo, Sanki, Jabo, Chaingara, Chikor, Lapanga, Ghutua, Barkakana and Sidhwar-Kalan in Ramgarh Police Station in Hazaribagh Sadar sub-division. **23. Ramgarh.—Ramgarh Police Station (excluding G.Ps. Terpa, Patratu, Koto, Palani,[1][Haphua],** 1[Hariharpur], Gegda, Deoria, Bargama, Pali, Salgo, Sanki, Jabo, 1[Chaingara], Chikor, Lapanga, Ghutua, Barkakana and Sidhwar-Kalan) and Gola Police Station in Hazaribagh Sadar sub-division. **24. Mandu.—Mandu and Bishungarh Police Stations in Hazaribagh Sadar sub-division.** **25. Hazaribagh.—Hazaribagh Police Station in Hazaribagh Sadar sub-division.** **CHATRA DISTRICT** **26. Simaria (SC).—Simaria, Itkhori and Tandwa Police Stations in Chatra sub-division.** **27. Chatra (SC).—Chatra, Pratappur and Hunterganj Police Stations in Chatra sub-divison.** **GIRIDIH DISTRICT** **28. Dhanwar.—Dhanwar and Gawan Police Stations in Giridih Sadar sub-division.** **29. Bagodar.— Bagodar and Birni Police Stations in Giridih Sadar sub-division.** **30 Jamua (SC).—Jamua and Deori Police Stations in Giridih Sadar sub-division.** **31. Gandey.—Gandey and Bengabad Police Stations and G.Ps. Leda, Semaria, Badgunda, Palmo,** Sathibad, Senadoni, Dhanaidih, Guro, Jitpur, Telodih, Ranidih and Karharbari in Giridih Mufassil Police Station in Giridih Sadar sub-division. **32. Giridih.—Giridih Town Police Station and Giridih Mufassil Police Station (excluding G.Ps.** Leda, Semaria, Badgunda, Palmo, Sathibad Senadoni, Dhanaidih, Guro, Jitpur, Telodih, Ranidih and Karharbari) and Pirtanr Police Station in Giridih Sadar sub-division. **33. Dumri.—Dumri Police Station in Giridih Sadar sub-division; and Nawadih Police Station in** Bermo sub-division. **BOKARO DISTRICT** **34. Gomia.—Gomia Police Station and Petarbar Police Station (excluding G.Ps. Champi, Rohar,** Chando, Pichhri, Angwali and Chalkari) in Bermo sub-division. **35. Bermo.—Jaridih and Bermo Police Stations and G.Ps. Champi, Rohar, Chando, Pichhri, Angwali** and Chalkari in Petarbar Police Station in Bermo sub-division. **36. Bokaro.—Chas Police Station (excluding G.Ps, Bijulia, Alkusa, Buribinor, Khamarbendi,** Dudhigajar, Kura Dabartupara, Jaitara, Pundru and Sardaha) in Baghmara sub-division. **37. Chandankiyari (SC).—Chandankiyari Police Station and G.Ps. Bijulia, Alkusa, Buribinor,** Khamrbendi, Dhundhigajar, Kura, Dabartupara, Jaitara, Pundu and Sardaha in Chas Police Station in Baghmara sub-divison. 1. Subs. by notification No. G.S.R. 675(E) (w.e.f. 19-8-2003). 2. The words ―and Ichak Police Stations in Kodarma sub-division‖ omitted, ibid. (w.e.f. 19-8-2003). ----- Serial No. Name and extent constituencies **DHANBAD DISTRICT** **38. Sindri.—Sindri, Baliapur and Gobindpur Police Station in Dhanbad Sadar sub-division.** **39. Nirsa.—Nirsa and Chirkunda Police Stations in Dhanbad Sadar sub-division.** **40. Dhanbad.—Dhandad, Putki and Kenduadih Police Stations in Dhanbad Sadar sub-division.** **41. Jharia. —Jharia and Jorapokhar Police Stations in Dhanbad Sadar sub-division.** **42. Tundi.—Tundi Police Station in Dhanbad Sadar sub-division; Topchanchi Police Station and** G.Ps. Dharkiro, Daluldih, Rajganj, Bagdaha, Dhawachita, Nagar kalan and Ramkanalichandur in Katras Police Station in Baghmara sub-division. **43. Baghmara.—Baghmara Police Station and Katras Kalan Police (excluding G.Ps. Dharkiro,** Daludih, Rajganj, Bagdaha, Dhawachita, Nagri Kalan and Ramkanalichandur) in Baghmara sub-division; and Jogta Police Station in Dhanbad Sadar sub-division. **(EAST) SINGHBHUM DISTRICT** **44. Baharagora.—Baharagora and Chakulia Police Stations in Dhalbhum sub-division.** **45. Ghatsila (ST).—Ghatsila Police Station, [1][Musabani] Police Station (excluding G.Ps. Palasbani,** Asta Koyali, Nunia, Kumarasoi, Barakanjiya, Bomaro Bangoriya and Damudih) in Dhalbhum sub-divison. **46. Potka (ST).—Potka Police Station, G.Ps. Palasbani, Asta Koyali, Nunia, Kumarasol,** Barakanjiya, Bomaro Bangoriya and Damudih in [1][Musabani] Police Station, Bagbera town and G.Ps. Karadih–Purihasa, Haragarghutu, Bagbera and village 1167-Kitadih in Jugsalai Police Station in Dhalbhum sub-division. **47. Jugsalai (SC). —Jugsalai Police Station (excluding Bagbera town and G.Ps. Karandih-Purihasa,** Hargarghutu, Bagbera and village 1167-Kitadih) Golmuri and Patamda Police Station in Dhalbhum sub-division. **48. Jamshedpur East.—Census wards 20 and 23 to 40 in Jamshedpur Notified Area Committee in** Dhalbhum sub-division. **49. Jamshedpur West. —Jamshedpur Notified Area Committee (excluding census wards 20 and** 23 to 40) in Dhalbhum sub-division. **(WEST) SINGHBHUM DISTRICT** **50. Ichagarh.—Ichagarh, Chandil and Nimdih Police Stations in Seraikella sub-division.** **51. Seraikella (ST). —Seraikella municipality and G.Ps. Govindpur, Pandra, Manik Bazar, Tangani,** Pathanmara, Jordiha, Gurgudia and Badakakda in Seraikella Police Station, Rajnagar Police Station (excluding village 98-Dighi) and Adityapur Police Station in Seraikella sub-division. **52. Chaibasa (ST).—Chaibasa Sadar and Jhinkpani Police Stations and Chaibasa Mufassil Police** Station (excluding G.Ps. Bhoya, Keadchalam, Domra-Parnia, Lota, Thakuragutu, Dopai-Gamhariya, Sarda, Matkamhatu, Khuntpani, Chiru and Rajabasa) in Chaibasa Sadar sub-division. **53. Majhgaon (ST).—Majhgaon and Manjhari Police Stations in Chaibasa Sadar sub-division.** **54. Jaganathpur (ST).—Naomundi and Gua Police Stations and G.Ps. Kurtabera, Urkiya,** Makaramda, Thalkobad, (Part I) and Chhotanagra (Part I) in Manoharpur Police Station in Chaibasa Sadar sub-division. 1 Subs by notification No G S R 675(E) (w e f 19 8 2003) ----- Serial No. Name and extent of constituencies **55. Manoharpur (ST).—Manoharpur Police Station [excluding G. Ps. Kurtabera, Urkiya, Makaramda,** Thalkobad (Part I) and Chhotanagra (Part I)] and G.Ps. Beralumin, Jojoda, Serengda, Orenga, Jhilrua, Goilkera, Kuira, Kadamdiha, Dalaikela, Sonua-Jorapokhar, Porahat, Sogoisai, Gudri Jarakel, Asantaliya, Dalki-Gobindpur, Bhalurangi, Harimara, Tunian Gajpur, Bandu, Poronger, Koloeda, Kulda, Bari, Lonjo, Bera Kayam, Mamail, Piring, Komrora, [1][Komrora-Dariyo], Dura-Jante and Banskata and Chakradharpur Police Station in Chaibasa Sadar sub-division. **56. Chakradharpur (ST).—-Chakradharpur Police Station (excluding G.Ps. Beralumin, Jojoda,** Serengda, Orenga, Jhilrua, Goilkera, Kuira, Kadamdiha, Dalaikela, Sonua-Jorapokhar, Porahat, Sogoisai, Gudri Jarakel, Asantaliya, Dalki-Gobindpur, Bhalurangi, Harimara, Tunian Gajpur, Bandu, Poronger, Koloeda, Kulda, Bari, Lonjo, Bera Kayam, mamail, Piring, Komrora, Komrora-Dariyo, Dura-Jante and Banskata) in Chaibasa Sadar sub-division. **57. Kharsawan (ST).—Kharsawan and Kuchai Police Stations and Seraikella Police Station** (excluding Seraikella municipality and G.Ps. Govindpur, Para, Manik Bazar, Tangrani, Pathanmara, Jordiha Gurugudia and Badakakda) and village 98-Dighi in Rajnagar Police Station in Seraikella sub-division; and G.Ps. Bhoya Keadchalam, Domra-Pamia, Lota, Thakurgutu, Dopai-Gamhariya, Sarda, Matkamhatu-Khuntpani, Chiru and Rajabasa in Chaibasa Mufassil Police Station in Chaibasa Sadar sub-division. **RANCHI DISTRICT** **58. Tamar (ST).—Tamar, Erki and Bundu Police Stations in Khunti sub-divisions.** **59. Torpa (ST).—Torpa and Rania Police Stations and G.Ps. Gumru, Cobindpur, Tilmi, Lapa,** Jariagarh, Urikel and Hutub and Karra Police Station in Khunti sub-division; and Bano Police Station in Simdega sub-divison. **60. Khunti (ST).—Khunti and Murhu Police Stations and Karra Police Station (excluding G.Ps.** Gumru, Gobindpur, Tilmi, Lapa, Jariagarh, Urikel and Hutub) in Khunti sub-divison. **61. Silli.—Silli Police Station, G.Ps. Barwadag, Tati, Jonha, Kashidih, Merha, Ambajharia and** Kontatoli and Angara Police Station in Ranchi Sadar sub-division; and Sonahatu Police Station in Khunti sub-division. **62. Khijri (ST).—Ormanjhi,** [1][Namkum] and Hatia Police Stations and Angara Police Station (excluding G.Ps. Barwadag, Tati, Jonha, Kashidih **63. Ranchi.—Ranchi municipality in Ranchi Kotwali Police Station in Ranchi Sadar sub-division.** **64. Hatia.—Jaganathpur, Ratu and Doranda Police Stations and Ranchi Kotwali Police Station** (excluding Ranchi municipality) in Ranchi Sadar sub-division. **65. Kanke (SC).—Kanke, Ranchi Sadar, Burmu and Khelari Police Stations in Ranchi Sadar** sub-division. **66. Mandar (ST).—Bero, Mandar and Lapung Police Stations, in Ranchi Sadar sub-division.** **GUMLA DISTRICT** **67. Sisai (ST).—Sisai, Kamdara and Basia Police Stations in Gumla sub-division.** **68. Gumla (ST).—Gumla Municipality, G.Ps. Hurhuria, Ghatagaon, Asani, Chandali, Telgaon, Pugu,** Bangaru, Karaundi, Dumardih and Murkunda in Gumla Police Station and Raidih, Chainpur and Dumri Police Stations in Gumla sub-division. **69. Bishunpur (ST).—-Bishunpur and Ghaghra Police Stations and Gumla Police Station (excluding** Gumla municipality and G.Ps. Hurhuria, Ghatagaon, Asani, Chandali, Telgaon, Pugu, Bangaru, Karaundi, Dumardih and Murkunda) in Gumla sub-division; and Senha Police Station in Lohardaga sub-division. 1. Subs. by notification No. G.S.R. 675(E) (w. e. f. 19-8-2003). ----- Serial No. Name and extent of constituencies **70. Simdega (ST).—Simdega and Kurdeg Police Stations in Simdega sub-division; and Palkot Police** Station in Gumla sub-division. **71. Kolebira (ST).—Kolebira, Thethaitangar and Bolba Police Stations in Simdega sub-division.** **LOHARDAGA DISTRICT** **72. Lohardaga( ST).—Lohardaga Kuru and Kisko Police Stations in Lohardaga sub-division.** **PALAMAU DISTRICT** **73. Manika (ST).—Latehar Police Station (excluding Latehar (N.A.C.) and G.Ps. Pochra, Luti,** Kaima, Kura, Bishunpur, Mungar, Nindir, Laharpur and Zalim), Barwadih, Garoo and Mahuadanr Police Stations in Latehar sub-division. **74. Latehar (SC)—Latehar (N.A.C.), G.Ps. Pochra, Luti, Kaima, Kura, Bishunpur, Mungar, Nindir,** Laharpur and Zalim in Latehar Police Station, Chandwa and Balumath Police Station in Latehar sub-division. **75. Panki.—Panki, Lesliganaj and Manatu Police Station in Palamu Sadar sub-division.** **76. Daltonganj.—Daltonganj and Chainpur Police Station in Palamau Sadar sub-division; and** Bhandaria Police Station in Garhwa sub-division. **77. Bishrampur.—Bishrampur Police Station in Palamau Sadar sub-division; and Majhiaon Police** Station in Garhwa sub-division. **78. Chhatarpur (SC).—Chhatarpur and Patan Police Station in Palamau Sadar sub-division.** **79. Hussainabad.—Hussainabad and Hariharganj Police Station in Palamau Sadar sub-division.** **GARHWA DISTRICT** **80. Garhwa.—Garhwa Police Station (excluding G.Ps. Jarhi Balekhar Raro, Sonehara and Dandai)** and Ranka Police Station in Garhwa sub-division. **81. Bhawanathpur.—Bhawanathpur and Nagar Untari Police Station and G.Ps. Jarhi, Balekhar,** Raro, Sonehara and Dandai in Garhwa Police Station in Garhwa sub-division. ----- THE THIRD SCHEDULE (See section 17) SITTING MEMBERS WHO SHALL CONTINUE TO BE MEMBERS OF THE BIHAR LEGISLATIVE COUNCIL TILL THEIR RESPECTIVE PRESENT TERMS OF OFFICE (i) Members representing any of the eleven Constituencies specified in item (1) of the 1[Fourth Schedule]. (ii) The following members elected by the members of the Bihar Legislative Assembly, namely:— ―1. Shri Sarfaraj Ahmed. 2. Shri Saryu Rai. 3. Shri Mahavir Lal Vishwakarma. 4. Shri Bhutnath Soren. 5. Shri Rajendranath Shahdev. 6. Smt. Vibha Ranjan. 7. Shri Badri Narayan Lal. 8. Shri Praveen Singh.‖. 1. Subs. by notification No. G.S.R. 675(E) (w.e.f. 19-8-2003). ----- THE FOURTH SCHEDULE (See section 18) AMENDMENTS TO THE DELIMITATION OF COUNCIL CONSTITUENCIES (BIHAR) ORDER, 1951 (1) In the Table, omit the entries relating to— (i) Bhagalpur-cum-North Chhotanagpur (Graduates) Constituency; (ii) South Chhotanagpur (Graduates) Constituency; (iii) Bhagalpur-cum-North Chhotanagpur (Teachers) Constituency; (iv) South Chhotanagpur (Teachers) Constituency; (v) Santhal Parganas (Local Authorities) Constituency; . (vi) Hazaribagh (Local Authorities) Constituency; (vii) Giridih (Local Authorities) Constituency; (viii) Ranchi (Local Authorities) Constituency; (ix) Palamau (Local Authorities) Constituency; (x) Dhanbad ( Local Authorities) Constituency; (xi) East Singhbhum-cum-West Singhbhum (Local Authorities) Constituency. (2) In the Table, in column 2,— (i) against ―Kosi (Graduates) Constituency‖ in column 1, after the word ―khagaria‖, insert the words ―Bhagalpur Monghyr‖; (ii) against ―Kosi (Teachers) Constituency‖ in column I, after the word ―Khagaria‖, insert the words ―Bhagalpur Monghyr‖. ----- THE FIFTH SCHEDULE (See Section 23) AMENDMENT OF THE CONSTITUTION (SCHEDULED CASTES) ORDER, 1950 In the Constitution (Scheduled Castes) Order, 1950, in the Schedule,— (i) in Part III relating to State of Bihar, in item No. 5, the brackets and words‖ (excluding North Chhotanagpur and South Chhotanagpur divisions and Santal Parganas district)‖, shall be omitted; (ii) after Part VI, Himachal Pradesh, the following shall be inserted, namely:— **“PART VIA –Jharkhand** 1. Bantar 1[2. Bauri] 3. Bhogta 4. Bhuiya 5. Chamar, Mochi 1[6. Chaupal] 1[7. Dabgar] 8. Dhobi 9. Dom, Dhangad 10. Dusadh, Dhari, Dharhi 11. Ghasi 12. Halalkhor 1[13. Hari, Mehtar, Bhangi] 14. Kanjar 1[15. Kurariar] 16. Lalbegi 17. Musahar 18. Nat 19. Pan, Sawasi 20. Pasi 21. Rajwar 22. Turi.‖ 1. Subs. by notification No. G.S.R. 675(E) (w.e.f. 19-8-2003). ----- THE SIXTH SCHEDULE (See section 24) AMENDMENT TO THE CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950 In the Constitution (Scheduled Tribes) Order, 1950,— (1) in paragraph 2, for the figures ―XXI‖, the figures ―XXII‖ shall be substituted; (2) in the Schedule,— (i) in Part III relating to State of Bihar, the item No. 6 and the entries relating thereto, shall be omitted, and the item Nos. 7 to 30 shall be renumbered as item Nos. 6 to 29; (ii) after Part XXI, the following Part shall be inserted, namely:— **“PART XXII –Jharkhand** 1. Asur 2. Baiga 3. Banjara 4. Bhathudi 5. Bedia 6. Binjhia 7. Birhor 8. Birjia 9. Chero 1[10. Chik Baraik] 11. Gond 12. Gorait 13. Ho 14. Karmali 15. Khanria 16. Kharwar 17. Khond 18. Kisan 19. Kora 20. Korwa 21. Lohra 22. Mahli 1[23. Mal Paharia] 24. Munda 25. Oraon 26. Parhaiya 1[27. Santal] 28. Sauria Paharia 29. Savar 30. Bhumij.‖. 1. Subs. by notification No. G.S.R. 675(E) (w.e.f. 19-8-2003). ----- THE SEVENTH SCHEDULE [See section 46 (1)] (Investments and Credits in certain funds) 1. State Provident Funds. 2. Trusts and Endowments. 3. Insurance and Pensions Funds. 4. Depreciation Reserve Funds—relating to Government Commercial Departments and Undertakings. 5. Famine Relief Funds. 6. Investment Account. 7. Development Fund for Educational Purposes. 8. General Reserve Funds of Government Commercial Departments Undertakings. 9. Zamindari Abolition Funds. 10. Calamity Relief Fund Investment Account 11. Revenue Deposits. 12. Security Deposits. 13. Civil Courts' Deposits. 14. Criminal Courts' Deposits. 15. Personal Deposits. 16. Trust Interest Funds. 17. Public Works Deposits. 18. Forest Deposits. 19. Deposits of Public Funds. 20. Other Departmental Deposits. 21. Deposits under various Central and State Acts. 22. Deposits for work done for Public bodies or private individuals. 23. Deposits of fees received by Government servants for works done for private bodies. 24. Deposits in connection with Elections. 25. Mines Labour Welfare Deposits. 26. Deposits of Educational Institutions. 27. Unclaimed Deposits in the General Provident Fund. 28. Unclaimed Deposits in other Provident Funds. 29. Deposits on account of cost price of Liquor, Ganja and Bhang. 30. District Funds. 31. Municipal Funds. 32. Cantonment Funds. 33. Funds of Insurance Association. 34. State Transport Corporation Fund. ----- 35. State Electricity Boards Working. 36. State Housing Funds. 37. Panchayats Bodies Funds. 38. Education Funds. 39. Medical and Charitable Funds. 40. Other Funds. 41. Subventions from Central Road Fund. 42. Miscellaneous Deposits. ----- THE EIGHTH SCHEDULE (See section 53) APPORTIONMENT OF LIABILITY IN RESPECT OF PENSIONS AND OTHER RETIREMENT BENEFITS 1. Subject to the adjustments mentioned in paragraph 3, each of the successor State shall in respect of pension and other retirement benefits sanctioned before the appointed date, pay from their respective treasuries. 2. Subject to the said adjustment, the liability in respect of pensions and other retirement benefits of officers serving in connection with the affairs of the existing State of Bihar who retire or proceed on leave preparatory to retirement before the appointed day, but whose claims for pensions and other retirement benefits are outstanding immediately before that day, shall be the liability of the State of Bihar. 3. Subject to the said adjustments, sanctions of such pension and other retirement benefits by the competent authority may be given in those cases, in which their office falls in the territory of Jharkhand State. 4. There shall be computed, in respect of the period commencing on the appointed day and ending on the 31st day of March of the financial year and in respect of each subsequent financial year, the total payments made in all the successor States in respect of pensions and other retirement benefits referred to in paragraphs 1 and 2. The total representing the liability of the existing State of Bihar in respect of pensions and other retirement benefits shall be apportioned between the successor States in the ratio of number of employees of each successor State and any successor State paying more than its due share shall be reimbursed the excess amount by the successor State or State paying less. 5. The liability of the existing State of Bihar in respect of pensions and other retirement benefits granted before the appointed day and drawn in any area outside the territories of the existing State shall be the liability of the State of Bihar paying subject to adjustments to be made in accordance with paragraph 3 as if such pensions and other retirement benefits had been drawn in any treasury in the State of Bihar under paragraph 1. 6. The liability in respect of the pensions and other retirement benefits of any officer serving immediately before the appointed day in connection with the affairs of the existing State of Bihar and retiring on or after that day, shall be that of the successor State granting him the pension and other retirement benefits, but the portion of the pension and other retirement benefits attributable to the service of any such officer before the appointed day in connection with the affairs of the existing State of Bihar shall be allocated between the successor States in the population ratio and the Government granting the pension and other retirement benefits shall be entitled to receive from each of the other successor States its share of this liability. 7. Any reference in this Schedule to a pension and other retirement benefits shall be construed as including a reference to the commuted value of the pension and other retirement benefits. ----- THE NINTH SCHEDULE [See section 65(1)] LIST OF STATE OWNED CORPORATIONS/COMPANIES 1. Bihar State Industries Development Corporation. 2. Bihar State Leather Development Corporation. 3. Bihar State Electronics Development Corporation. 4. Bihar State Sugar Corporation Limited. 5. Bihar State Medicine and Chemical Development Corporation. 6. Bihar State Fruit and Vegetables Development Corporation. 7. Bihar State Dairy Corporation Limited. 8. Bihar State Agro Industries Corporation. 9. Bihar State Textiles Corporation Limited. 10. Bihar State Small Industries Corporation Limited. 11. Bihar State Handloom and Handicrafts Corporation 12. Bihar State Khadi Gramudyog Board 13. Bihar State Agriculture Marketing Board. 14. Bihar State Forest Development Corporation Limited. 15. Bihar State Export Development Corporation Limited. 16. Bihar State Seeds Corporation Limited. 17. Bihar State Fish Seeds Development Corporation Limited. 18. Bihar State Warehousing Corporation. 19. Bihar State Tourism Development Corporation Limited. 20. Bihar State Road Transport Corporation. 21. Bihar State Food and Civil Supplies Corporaiton. 22. Bihar State Text Book Publishing Corporation Limited. 23. Bihar State Construction Corporation Limited. 24. Bihar State Mineral Development Corporation Limited. 25. Bihar State Housing Board. 26. Bihar State Bridge Construction Corporation Limited. 27. Bihar State Police Building Construction Corporation Limited. 28. Bihar State Electricity Board. 29. Bihar State Hydroelectric Power Corporation Limited. 30. Bihar State Hill Area and Irrigation Development Limited. 31. Patna Industrial Area Development Authority. 32. Bokaro Industrial Area Development Authority. 33. Ranchi Industrial Area Development Authority. 34. Adityapur Industrial Area Development Authority. 35. North Bihar Industrial Area Development Authority. 36. Darbhanga Industrial Area Development Authority. ----- 37. Patna Area Development Authority. 38. Ranchi Area Development Authority 39. Muzaffarpur Area Development Authority. 40. Darbhanga Area Development Authority. 41. Gaya Area Development Authority. 42. Bihar State Pollution Control Board. 43. Bihar State Water and Sewage Disposal Board. 44. Bihar State Financial Corporation. 45. Bihar State Credit and Investment Corporation Limited. 46. Bihar State Panchayati Raj Finance Development Corporation Limited. 47. Bihar State Minorities Finance Corporation Limited. 48. Bihar State Film Development and Finance Corporation Limited. 49. Electricity Corporation Limited. 50. Mines Area Development Authority, Dhanbad. 51. Hazaribagh Mines Board. 52. Bhagalpur Regional Development Authority, Bhagalpur. 53. Women’s Development Corporation. 54. Backward Classes Development Corporation. 55. Scheduled Castes Development Corporation 56. Scheduled Tribes Development Corporation. ----- THE TENTH SCHEDULE (See section 70) CONTINUANCE OF FACILITIES IN CERTAIN STATE INSTITUTIONS _List of Training Institution/Centres_ 1. Sri Krishna Institute of Public Administration. 2. Police Training College. 3. Bihar Institute of Rural Development. 4. Village Handicrafts Training Centre. 5. Tribal Village Handicraft Training Centres. 6. Training-cum-Production Centres for Toys, Ceramic Goods, Embroidery and Applique, Hornmade goods and Cutting and Tailoring. 7. Ideal Woodwork Workshops/Iron Workshops. 8. Indo Danish Tool Room and Training Centre, Jamshedpur. 9. All Government Industrial Institutes. -Affiliated with N.C.V.T. -Un-affiliated. 10. All Private Industrial Institutes. -Affiliated with N.C.V.T. ; -Un-affiliated. 11. B.I.T., Sindri. 12. R.I. T., Jamshedpur. 13. Government Polytechnic, Dhanbad. 14. Government Polytechnic, Ranchi. 15. Government Polytechnic, Adityapur. 16. Government Polytechnic, Khutri. 17. Government Polytechnic, Lathehar. 18. Government Women's Polytechnic, Jamshedpur. 19. Government Women's Polytechnic, Ranchi. 20. Government Women's Polytechnic, Bokaro. 21. Mines Institution, Dhanbad. 22. Mines institution, Bagha. 23. Mines Institution, Koderma. 24. Government Polytechnic, Dumka. 25. Government Women's Industrial School, Ranchi. 26. Government Women's Industrial School, Hazaribagh. 27. Government Women's Industrial School, Daltonganj. 28. Sainik School, Tilaiya. 29. Netarhat School. 30. Indira Gandhi Girls School, Hazaribagh. -----
26-Aug-2000
34
The Chemical Weapons Convention Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/1916/1/a2000__34.pdf
central
# THE CHEMICAL WEAPONS CONVENTION ACT, 2000 ____________ # ARRNGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, application and commencement. 2. Definitions. 3. Application of the Convention. 4. Power of Central Government to deny the request for inspection. 5. Power of Central Government to declare Cessation of the Act. CHAPTER II ESTABLISHMENT OF THE NATIONAL AUTHORITY AND ITS POWERS AND FUNCTIONS 6. Establishment of National Authority. 7. Powers and functions of National Authority. 8. National Authority to submit initial, annual and other periodical declaration to Organization. 9. Appointment of enforcement officers. 10. Power of National Authority to issue directions. 11. Power of Central Government to constitute Committee. 12. Power of National Authority to call for information, etc. CHAPTER III PROHIBITION AND REGULATION OF CHEMICAL WEAPONS AND TOXIC CHEMICALS 13. Prohibition to develop, produce, acquire, etc., Chemical Weapons. 14. Knowledge about Old or Abandoned Chemical Weapons to be informed to National Authority. 15. Prohibition to develop, produce, acquire, etc., Toxic Chemical or Precursor. 16. Restriction on transfer of Toxic Chemical or Precursor listed in Schedule 2. 17. Export or import to be made in accordance with Export and Import Policy. CHAPTER IV REGISTRATION OF PERSONS AS PRODUCERS, USERS. ETC. 18. Registration of person engaged in production, etc., of any Toxic Chemical or Precursor. CHAPTER V INSPECTION, SEARCH, SEIZURE AND FORFEITURE 19. Power of Inspector to inspect any person or place. 20. Enforcement officer to enter into any place for examining and testing facility or to conduct search. 21. Certain acts to constitute an offence. 22. Power to issue warrant and authorisation. 23. Power of entry, search, seizure and arrest without warrant or authorisation. 24. Power of seizure and arrest in public places. 25. Procedure where seizure of goods liable to confiscation not possible. 26. Power to stop and search conveyance. 27. Conditions under which search of persons be conducted. 28. Provisions of Act 2 of 1974 to apply to arrests, searches and seizures. 29. Disposal of persons arrested and goods seized. 30. Power to invest officers of the National Authority, etc., with powers of an officer in charge of a police station. 31. Police to take charge of goods seized and delivered. 32. Report of arrest and seizure. ----- SECTIONS 33. Liability of Toxic Chemical, Precursor and conveyance to confiscation. 34. Confiscation of Goods used for concealing Toxic Chemicals or Precursors. 35. Confiscation of sale proceeds of goods. 36. Procedure in making confiscation. 37. Power to call for information, etc. 38. Information as to commission of offences. CHAPTER VI OFFENCES AND PENALTIES 39. Punishment for failure to register. 40. Punishment for contravention in relation to development, production, etc., of Chemical Weapons or riot control agents, etc. 41. Punishment for contravention in relation to Toxic Chemicals, etc., listed in Schedule 1. 42. Punishment for contravention in relation to transfer of Toxic Chemical, etc., listed in Schedule 2. 43. Punishment for contravention in relation to export or import of Toxic Chemicals, etc. 44. Punishment for contravention in relation to disclosure of confidential information. 45. Punishment for contravention in relation to denial of access. 46. Punishment for contravention in relation to failure to furnish information, declaration or return. 47. Offence punishable under section 46 to be cognizable. 48. Offences by companies. 49. Prosecution of offences. 50. Appeals from the decision of National Authority. 51. Provisions of Convention not to apply to certain mixtures. CHAPTER VII MISCELLANEOUS 52. Protection of action taken in good faith. 53. Power to delegate. 54. Officers to be public servants. 55. Removal of difficulties. 56. Power to make rules. THE SCHEDULE. ----- # THE CHEMICAL WEAPONS CONVENTION ACT, 2000 ACT NO. 34 OF 2000 [26th August, 2000.] # An Act to give effect to the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction and to provide for matters connected therewith or incidental thereto. WHEREAS a Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction was signed on behalf of the Government of India at Paris on the 14th day of January, 1993; AND WHEREAS India, having ratified the said Convention, has to make provisions for giving effect thereto and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, application and commencement.—(1) This Act may be called the Chemical** Weapons Convention Act, 2000. (2) It extends to the whole of India, and it shall apply to— (a) citizens of India outside India; and (b) associates, branches or subsidiaries, outside India of companies or bodies corporate, registered or incorporated in India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Article” means an Article of the Convention; (b) “Chemical Weapons” means,— (i) the Toxic Chemicals and their precursors, except where intended for purposes not prohibited under the Convention, as long as the types and quantities are consistent with such purposes; (ii) the munitions and devices, specifically designed to cause death or other harm through the toxic properties of those Toxic Chemicals specified in sub-clause (i), which would be released as a result of the employment of such munitions and devices; (iii) any equipment specifically designed for use directly in connection with the employment of munitions and devices specified in sub-clause (ii), together or separately; (c) “Convention” means the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction signed on behalf of the Government of India at Paris on the 14th day of January, 1993; (d) “enforcement officer” means a person appointed as such by the Central Government under sub-section (1) of section 9 or by the State Government under sub-section (2) of that section; (e) “goods”, in relation to Toxic Chemicals, Precursors or Discrete Organic Chemicals including those Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine, means any material, commodity, article or compound consisting of such Toxic Chemicals, Precursors or Discrete Organic Chemicals including those Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine and includes materials, commodities, articles, compounds or apparatus used in the production, processing or storing of Toxic Chemicals, Precursors or Discrete 1. 1st July, 2005 (except sections 18 and 39), vide notification No. S.O. 818(E), dated 13th June, 2005, see Gazette of India, Extraordinary Part II sec 3(ii) ----- Organic Chemicals including those Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine; (f) “industry” includes a Facility; (g) “Inspector” means an individual designated by the Technical Secretariat, according to the procedures as set forth in Part II, Section A, of the Verification Annex to the Convention, to carry out an inspection or visit in accordance with the Convention; (h) “National Authority” means the National Authority for the Chemical Weapons Convention established under sub-section (1) of section 6; (i) “Organization” means the Organization for the prohibition of Chemical Weapons established pursuant to Article VIII; (j) “prescribed” means prescribed by rules made under this Act; (k) “purposes not prohibited under the Convention” means— (i) industrial, agricultural, research, medical, pharmaceutical or other peaceful purposes; (ii) protective purposes namely those purposes directly related to protection against Toxic Chemicals and to protection against Chemical Weapons; (iii) military purposes not connected with the use of Chemical Weapons and not dependant on the use of the Toxic Properties of Chemicals as a method of warfare; and (iv) law enforcement including domestic riot control purposes; (l) “State Party” means a signatory or acceding State to the Convention whose instrument of ratification or accession has been deposited with the Depository of the Convention; (m) words and expressions used in this Act and not defined but defined in the Convention, or the Code of Criminal Procedure, 1973 (2 of 1974), shall have the meanings respectively assigned to them in that Convention or Code. **3. Application of the Convention.—(1) Notwithstanding anything to the contrary contained in any** other law, the provisions of the Convention set out in the Schedule to this Act shall have the force of law in India. (2) The Central Government may, from time to time and by notification in the Official Gazette, amend the Schedule in conformity with any amendments, duly made and adopted, of the provisions of the said Convention set out therein. **4. Power of Central Government to deny the request for inspection.—Where the Central** Government considers any inspection of a Chemical Weapons Production Facility in India under this Act to be against the interest of national security or economic interests of India, it may deny the request for such inspection. **5. Power of Central Government to declare Cessation of the Act.—The Central Government may,** by notification in the Official Gazette, declare that this Act shall cease to be in force in case the Government of India withdraws from the Convention in accordance with the provisions of Article XVI, and on such declaration this Act shall cease to be in force, but its expiry under the operation of this section shall not affect— (a) the previous operation of, or anything duly done or suffered under, this Act or any rule made there under or any order made under any such rule, or (b) any right privilege, obligation or liability acquired, accrued or incurred under this Act or any rule made thereunder or any order made under any such rule, or (c) any penalty, forfeiture or punishment incurred in respect of any offence under this Act, or (d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if this Act had not expired. ----- CHAPTER II ESTABLISHMENT OF THE NATIONAL AUTHORITY AND ITS POWERS AND FUNCTIONS **6. Establishment of National Authority.—(1) For the purposes of this Act, the Central Government** shall establish, by notification in the Official Gazette, an Authority to be known as the National Authority for implementing the provisions of the Convention which shall consist of a Chairperson and such number of Directors as may be appointed by the Central Government. (2) The Central Government may appoint officers and such other employees to the National Authority as it thinks fit for the purposes of this Act. (3) The salary and allowances payable to, and other terms and conditions of service of, the Chairperson and the Directors shall be such as may be prescribed. (4) The salary and allowances payable to, and other terms and conditions of service of, officers and other employees of the National Authority shall be such as may be prescribed. (5) In the exercise of its powers and performance of its functions under this Act, the National Authority shall be subject to the control of the Central Government. **7. Powers and functions of National Authority.—(1) Subject to the provisions of this Act,—** (a) it shall be the general duty of the National Authority to fulfil, on behalf of the Government of India, the obligations under the Convention; (b) it shall be incumbent on the National Authority to act as the national focal point for effective liaison with the Organization and other States Parties on matters relating to the Convention. (2) Subject to the provisions of sub-section (1), the functions of the National Authority shall be to— (a) interact with the Organistion and other States Parties for the purpose of fulfilling the obligations of the Government of India under the Convention; (b) monitor compliance with the provisions of the Convention; (c) regulate and monitor the development, production, processing, consumption, transfer or use of Toxic Chemicals or Precursors as specified in the Convention; (d) make request to, or to receive request from, a State Party for assistance and protection under Article X, against the use or threat of use of Chemical Weapons; (e) manage routine inspection or Challenge Inspection or managing investigation, in case a complaint of use of Chemical Weapons or riot control agents as a method of warfare is received from the Organization; (f) conduct inspections for the purposes of this Act; (g) interact with the Organization in respect of acceptance of request of India for Challenge Inspection or to counter any frivolous or defamatory request made by any State Party against India to the Organization; (h) scrutinise and accept list of Inspectors and to verify the Approved Equipment brought by an Inspection Team on to the Inspection Site; (i) provide escort to the Inspection Team and the Observer within the territory of India; (j) identify and oversee the closure and destruction of Chemical Weapons, Chemical Weapons Production Facilities, Old Chemical Weapons or Abandoned Chemical Weapons; (k) negotiate Managed Access during the Challenge Inspection; (l) ensure decontamination of Approved Equipment after completion of an Inspection; (m) advise Central Government for laying down safeguards for transportation, sampling or storage of Chemical Weapons and fixation of standards for emission or discharge of environmental pollutants arising out of the destruction of Chemical Weapons, Old Chemical Weapons, Abandoned Chemical Weapons or Chemical Weapons Production Facility; ----- (n) ensure data base confidentiality and maintain secrecy of confidential information and technology collected or received by the National Authority under this Act; (o) facilitate exchange of scientific and technological information relating to developments in chemicals amongst the States Parties; (p) call for such information from any person which the National Authority has reasonable cause to believe that such information may be required for complying with the provisions of the Convention; (q) approve and declare, on behalf of the Government of India, a single small-scale facility for production of Toxic Chemicals listed in Schedule 1 in the Annex on Chemicals to the Convention for purposes not prohibited under the Convention; (r) provide training to enforcement officers; (s) ensure protection of environment, health and safety of the people during transportation, sampling, storage or destruction of Chemical Weapons, Chemical Weapons Production Facilities, Old Chemical Weapons or Abandoned Chemical Weapons; (t) co-ordinate exchange of scientific and technological information among laboratories handling Toxic Chemicals or Precursors; (u) determine, from time to time, the quantity limit that a person at any time may produce, otherwise acquire, retain, transfer or use any Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention, any Discrete Organic Chemical including Discrete Organic Chemical containing elements of phosphorous, sulphur or fluorine for purposes not prohibited under the Convention; (v) such other functions as may be prescribed. **8. National Authority to submit initial, annual and other periodical declarations to** **Organization.—The National Authority shall prepare such initial, annual and other periodical** declarations regarding Toxic Chemicals or Precursors listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention, Discrete Organic Chemicals including those Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine, Chemical Weapons, Old Chemical Weapons, Abandoned Chemical Weapons, riot control agents, Chemical Weapons Production Facilities, past transfers of Chemical Weapons or their production equipments or any other declaration required to be made under the Convention and shall submit such declarations to the Organization at such time as are specified under the Convention. **9. Appointment of enforcement officers.—(1) The Central Government may, by notification in the** Official Gazette, appoint such of the officers of the National Authority [1][or of the Central Government] as it thinks fit to be enforcement officers for the purposes of this Act: 1[Provided that such officers shall fulfil the prescribed criteria.] (2) The State Government may, as and when so directed by the Central Government and by notification in the Official Gazette, appoint such of its officers of gazetted rank as it thinks fit to be enforcement officers for the purposes of this Act and assign to them such local limits as it may think fit. (3) Every officer appointed as enforcement officer under sub-section (1) or under sub-section (2) shall be furnished by the Central Government or by the State Government, as the case may be, with a certificate of appointment as an enforcement officer and the certificate shall, on demand, be produced by such enforcement officer. **10. Power of National Authority to issue directions.—Notwithstanding anything contained in any** other law but subject to the provisions of this Act,the National Authority may, in the exercise of its powers and performance of its functions under this Act, issue directions in writing to any person, officer or authority and such person, officer or authority shall be bound to comply with such directions. 1 Ins by Act 36 of 2012 s 2 (w e f 23 11 2012) ----- _Explanation.—For the avoidance of doubts, it is hereby declared that the power to issue direction_ under this section includes the power to direct— (a) the closure, prohibition or regulation of any company, firm or industry engaged in the development, production, processing, consumption or use of any Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention or, the production of any Discrete Organic Chemical including Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine; or (b) the stoppage or regulation of the supply of electricity or water or any other service to such company, firm or industry. **11. Power of Central Government to constitute Committee.—The Central Government may, if it** considers it necessary or expedient so to do for the purposes of this Act, by order, published in the Official Gazette, constitute a Committee by such name as may be specified in the order for the purpose of overseeing the functions of the National Authority and exercising and performing such of the powers and functions of the Central Government under this Act (except the power to make rules under section 56) as may be specified in the order and subject to the supervision and control of the Central Government and the provisions of such order, such Committee may exercise the powers or perform the functions so specified in the order as if such Committee had been empowered by this Act to exercise those powers or perform those functions. **12. Power of National Authority to call for information, etc.—(1) Notwithstanding anything** contained in any other law for the time being in force, the National Authority may, by general or special order, call upon a person, to furnish to that Authority periodically or as and when required any information, declaration or return concerning Toxic Chemicals or Precursors listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention, Chemical Weapons, Old Chemical Weapons, Abandoned Chemical Weapons, Chemical Weapons Production Facilities, riot control agents, single small-scale facility or Discrete Organic Chemicals including those Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine with such particulars as may be specified by the National Authority. (2) No person shall, when complying with any requisition made under sub-section (1), give any information or furnish any declaration, return or statement which he knows, or has reasonable cause to believe to be false or not true in any material particular. CHAPTER III PROHIBITION AND REGULATION OF CHEMICAL WEAPONS AND TOXIC CHEMICALS **13. Prohibition to develop, produce, acquire, etc., Chemical Weapons.—(1) No person shall—** (a) develop, produce, otherwise acquire, stockpile, retain or use Chemical Weapons or transfer, directly or indirectly, any Chemical Weapons to any person; (b) use riot control agents as a method of warfare; (c) engage in any military preparations to use Chemical Weapons; (d) assist, encourage or induce, in any manner, any person to engage in— (i) the use of any riot control agent as a method of warfare; (ii) any other activity prohibited to a State Party under the Convention. (2) The prohibition contained in sub-section (1) shall not apply to the retention or possession of Chemical Weapons, which are permitted by the Convention, pending destruction of such Weapons. **14. Knowledge about Old or Abandoned Chemical Weapons to be informed to National** **Authority.—Any person having knowledge about the possession or location of Old Chemical Weapons** or Abandoned Chemical Weapons shall inform the National Authority of such possession and the precise location of such Old Chemical Weapons or Abandoned Chemical Weapons within seven days from the commencement of this Act: Provided that where the knowledge about the possession or location of Old Chemical Weapons or Abandoned Chemical Weapons is obtained after the commencement of this Act, an information about ----- knowledge of such possession or location shall be given to the National Authority within seven days from the occurrence of such knowledge. **15. Prohibition to develop, produce, acquire, etc., Toxic Chemical or Precursor.—No person** shall— (a) produce, acquire, retain or use toxic Chemicals or Precursors listed in Schedule 1 in the Annex on Chemicals to the Convention, outside the territories of States Parties, and shall not transfer such Chemicals or Precursors outside the territory of India except to another State Party; (b) produce, acquire, retain, transfer or use Toxic Chemicals or Precursors listed in Schedule 1 in the Annex on Chemicals to the Convention without permission from the National Authority and unless— (i) the Toxic Chemicals or Precursors listed in Schedule 1 in the Annex on Chemicals to the Convention are for the purposes to be applied to research, medical, pharmaceutical or protective purposes; and (ii) the types of Toxic Chemicals or Precursors are strictly limited to those that can be justified with reference to the purposes specified in sub-clause (i) and the quantities of such Toxic Chemicals or Precursors for such purposes at any time do not exceed the limits fixed by the National Authority; (c) transfer the Toxic Chemicals or Precursors listed in Schedule 1 in the Annex on Chemicals to the Convention to another State Party outside India except— (i) for the purposes specified in sub-clause (i) of clause (b); and (ii) in accordance with the procedure set out in Part VI of the Verification Annex to the Convention: Provided that no Toxic Chemicals or Precursors referred to in clause (c) shall be re-transferred to any third State. **1[16. Restriction on transfer of Toxic Chemical or Precursor listed in Schedule 2.—No person** shall transfer to, or receive from, a State which is not a party to the Convention or any person who is not a citizen of a State Party, any Toxic Chemical or Precursor listed in Schedule 2 in the Annex on Chemicals to the Convention.] **17. Export or import to be made in accordance with Export and Import Policy.—No person** shall export from, or import into, India a Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention except in accordance with the provisions of the Export and Import Policy determined by the Central Government from time to time under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) and the Orders issued thereunder. CHAPTER IV REGISTRATION OF PERSONS AS PRODUCERS, USERS, ETC. **18. Registration of persons engaged in production, etc., of any Toxic Chemical or** **Precursor.—(1) [2][Subject to such exemptions and thresholds as may be prescribed, every person who is]** engaged in the production, processing, acquisition, consumption, transfer, import, export or use of any Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention or, engaged in the production of any Discrete Organic Chemical including Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine shall make, within thirty days from the commencement of this Act, an application for registration of his name, as a producer, processor, acquirer, consumer, transferor, importer, exporter or user of any Toxic Chemical or Precursor or, as the case may be, as a producer of any Discrete Organic Chemicals including Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine, to such registration authority as the Central Government may, by notification in the Official Gazette, specify in this behalf. 1. Subs. by Act 36 of 2012, s. 3, for section 16 (w.e.f. 23-11-2012). 2 Subs by s 4 ibid for “Every person who is” (w e f 23 11 2012) ----- (2) [1][Subject to such exemptions and thresholds as may be prescribed, no person, who after the coming into force of this section], desires to produce, process, acquire, consume, transfer, import, export or use any Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention or, desires to produce any Discrete Organic Chemical including Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine, shall commence business unless such person has applied to the registration authority specified under sub-section (1) for registration of his name as a producer, processor, acquirer, consumer, transferor, importer, exporter or user of any Toxic Chemical or Precursor or, as the case may be, as a producer of any Discrete Organic Chemical including Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine. (3) The form of application to be made to the registration authority under sub-section (1) or sub-section (2), the particulars to be contained in such application form, the manner in which such application shall be made, the fee payable on such application, the form of certificate of registration, the procedure to be followed in granting or cancelling certificate of registration shall be such as may be prescribed. (4) On receipt of the application referred to in sub-section (1) or sub-section (2), the registration authority shall, if the application is in the prescribed form, register the name of the applicant and grant him a certificate of registration [2][subject to such terms and conditions as may be prescribed]. (5) The certificate of registration granted in pursuance of this section shall be valid for a period specified therein and may be renewed from time to time for such further period and on payment of such fee as may be prescribed. 2[(6) Every person, to whom a certificate of registration is granted under sub-section (4), shall furnish to the Central Government periodically, or, as and when required, such information, declaration or return as may be prescribed.] CHAPTER V INSPECTION, SEARCH, SEIZURE AND FORFEITURE **19. Power of Inspector to inspect any person or place.—(1) An Inspector may inspect—** (a) any person who is engaged in— (i) the production, processing, acquisition, consumption, transfer, import, export or use of any Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention; or (ii) the production of any Discrete Organic Chemical including those Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine; (b) any place where any Chemical Weapon, Old Chemical Weapon or Abandoned Chemical Weapon is located or Chemical Weapon Production Facility exists, for the purposes specified in the Verification Annex to the Convention. (2) An Inspection Team may undertake a Challenge Inspection of any Facility or location pursuant to Article IX and such inspection shall be undertaken in accordance with the provisions of the Verification Annex to the Convention. (3) The Inspection Team may, while carrying out a Challenge Inspection, be accompanied by an Observer to observe the conduct of the Challenge Inspection. (4) An enforcement officer shall accompany the Inspector or Inspection Team to observe all verification activities carried out by the Inspector or Inspection Team and to provide the Inspector or Inspection Team, during the inspection, with such clarifications in connection with an ambiguity that may arise during an inspection as may be necessary to remove such ambiguity. (5) Every Inspector or Inspection Team shall have— (a) the right to interview any Facility personnel in the presence of enforcement officer for the purpose of establishing relevant facts; 1. Subs. by Act 36 of 2012, s. 4, for “No person, who after the commencement of this Act” (w.e.f. 23-11-2012). 2 Ins by s 4 ibid (w e f 23 11 2012) ----- (b) the right to request clarifications in connection with ambiguities that may arise during inspection; (c) the right to demand production of such documentation and records which are relevant and necessary for the purpose of inspection; (d) the right to take photographs of an object or a building located within the Inspection Site if question relating to that object or building is not resolved; (e) the right to draw samples, perform on site analysis of such samples; and (f) such other rights as are provided under the Convention. (6) An Inspector or Inspection Team shall, during the conduct of verification activities or Challenge Inspection, enjoy the privileges and immunities referred to in Part II of the Verification Annex to the Convention. (7) No sample drawn under clause (e) of sub-section (5) by an Inspector or Inspection Team shall be sent for analysis in any laboratory situated outside the territory of India. **20. Enforcement officer to enter into any place for examining and testing facility or to conduct** **search.—(1) Any enforcement officer shall have the right to enter with such assistance as he considers** necessary, any building or place for the purpose of— (a) verifying the correctness of any information, declaration or return furnished under sub-section (2) of section 12; (b) performing any of the functions of the National Authority entrusted to him; (c) determining whether any provisions of this Act or the rules made thereunder or any direction given under this Act is being complied with by any person engaged in the production, processing, acquisition, consumption, transfer, import, export or use of any Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention or engaged in the production of any Discrete Organic Chemical including Discrete Organic Chemical containing elements of phosphorous, sulphur or fluorine; (d) examining or testing any facility, record, document or any other material object, as the case may be, or conducting a search of any place or person; (e) conducting a search where a warrant under sub-section (1) of section 22 is addressed to such enforcement officer or he is so authorised under sub-section (2) of that section. (2) Any enforcement officer shall have a right to accompany the Inspector or Inspection Team as a representative of India during inspection in India. **21. Certain acts to constitute an offence.—If any person wilfully—** (a) refuses without reasonable excuse to comply with the request made by the Inspector or Inspection Team for the purpose of facilitating the conduct of that inspection in accordance with the Verification Annex to the Convention; (b) delays or obstructs any member of the Inspection Team, Inspector, enforcement officer or the Observer in the conduct of inspection; (c) removes or tampers with any on-site instrument or Approved Equipment installed by the enforcement officer, Inspector or Inspection Team with the intention of adversely affecting the operation of such instrument or Equipment, he shall be guilty of an offence punishable under this Act. **22. Power to issue warrant and authorisation.—(1) A Metropolitan Magistrate or a Judicial** Magistrate of the first class or any Magistrate of the second class specially empowered by the State Government in this behalf, may issue a warrant for the arrest of any person whom he has reason to believe to have committed any offence punishable under Chapter VI or for the search, whether by day or by night, of any industry, building, conveyance or place in which he has reason to believe that any goods in relation to which an offence punishable under Chapter VI has been committed or any document or other goods which may furnish evidence of the commission of such offence is kept or concealed. ----- (2) Any enforcement officer or such other officer of the National Authority as is empowered in this behalf by general or special order by the Central Government or any such officer of a State Government as is empowered in this behalf by general or special order of the State Government, if he has reason to believe from personal knowledge or information given by any person and taken down in writing that any person has committed an offence punishable under Chapter VI or any goods in relation to which an offence punishable under Chapter VI has been committed or any document or other goods which may furnish evidence of the commission of such offence has been kept or concealed in any industry, building, conveyance or place, may authorise any officer subordinate to him to arrest such person or search an industry or a building, conveyance or place, whether by day or by night, or himself arrest a person or search an industry or a building, conveyance or place. (3) The officer to whom a warrant under sub-section (1) is addressed and the officer who authorised the arrest or search or such subordinate officer who is so authorised under sub-section (2) shall have all the powers of an officer acting under section 23. **23. Power of entry, search, seizure and arrest without warrant or authorisation.—(1) Any such** subordinate officer to the enforcement officer as is authorised in this behalf by general or special order by the Central Government or any such subordinate officer to the enforcement officer as is authorised in this behalf by general or special order of the State Government, if he has reason to believe from personal knowledge or information given by any person and taken down in writing, that any goods in relation to which an offence punishable under Chapter VI has been committed or any document or goods which may furnish evidence of the commission of such offence is kept or concealed in any industry, building, conveyance or place, may, between sunrise and sunset,— (a) enter into and search any such industry, building, conveyance or place; (b) in case of resistance, break open any door and remove any obstacle to such entry; (c) seize such Chemical Weapons, Chemical Weapons Production Facilities, riot control agents, Old Chemical Weapons, Abandoned Chemical Weapons, Toxic Chemicals or Precursors or Discrete Organic Chemicals including those Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine, all goods and any conveyance which he has reason to believe to be liable to confiscation under this Act and any document or other goods which he has reason to believe may furnish evidence of the commission of any offence punishable under Chapter VI relating to such Chemical Weapons, Chemical Weapons Production Facilities, riot control agents, Old Chemical Weapons, Abandoned Chemical Weapons, Toxic Chemicals, Precursors or Discrete Organic Chemicals including those Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine; and (d) detain and search, if he thinks proper, arrest any person whom he has reason to believe to have committed any offence punishable under Chapter VI relating to such Chemical Weapons, Chemical Weapons Production Facilities, riot control agents, Old Chemical Weapons, Abandoned Chemical Weapons, Toxic Chemicals or Precursors or Discrete Organic Chemicals including those Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine: Provided that if such subordinate officer has reason to believe that search warrant or authorisation cannot be obtained without affording opportunity for the concealment of evidence or facility for the escape of an offender, he may enter and search such industry, building, conveyance or place at any time between sunset and sunrise after recording the grounds of his belief. (2) Where an officer takes down any information in writing under sub-section (1) or records grounds for his belief under the proviso thereto, he shall forthwith send a copy thereof to his immediate superior officer. **24. Power of seizure and arrest in public places.—Any subordinate officer to the enforcement** officer as is authorised in section 23 may— (a) seize, in any public place or in transit, any goods, in relation to which he has reason to believe an offence punishable under Chapter VI has been committed, and, along with such goods, any conveyance liable to confiscation under this Act, and any document or goods which he has reason to believe may furnish evidence of the commission of an offence punishable under Chapter VI relating to such goods; ----- (b) detain and search any person whom he has reason to believe to have committed an offence punishable under Chapter VI, and, if such person has any Toxic Chemical or Precursor or any Discrete Organic Chemical including Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine in his possession and such possession appears to him to be unlawful, arrest him and any other person in his company. _Explanation.—For the purposes of this section, the expression “public place” includes any public_ conveyance, shop, hotel or other place intended for use by, or accessible to, the public. **25. Procedure where seizure of goods liable to confiscation not possible.—(1) Where it is not** practicable to seize any goods which are liable to confiscation under this Act, any officer authorised under section 23 may serve on the owner or person in possession of the goods, an order that he shall not remove, part with or otherwise deal with the goods except with the previous permission of such officer. (2) For effecting seizure and confiscation, the owner, the plant operator and other officials of the facility shall provide all assistance with regard to safety in handling of goods. **26. Power to stop and search conveyance.—Any subordinate officer authorised under section 23** may, if he has reason to suspect that any conveyance is, or is likely to be, used for the transport of any goods in respect of which he suspects that any provision of this Act has been, or is being, or is likely to be, contravened at any time, stop such conveyance, or in the case of an aircraft compel it to land and— (a) rummage and search the conveyance or part thereof; (b) examine and search any goods in the conveyance; (c) if it becomes necessary to stop the conveyance, he may use all lawful means for stopping it. **27. Conditions under which search of persons be conducted.—(1) When any subordinate officer** authorised under section 23 or any subordinate officer exercising power in pursuance of sub-section (3) of section 22 is about to search any person under the provisions of section 22 or section 23 or section 24, he shall, if such person so requires, take such person without unnecessary delay to the nearest enforcement officer or the officer authorising such search or the nearest Magistrate. (2) If such requisition is made, the officer may detain the person until he can bring him before the officer or the Magistrate referred to in sub-section (1). (3) The officer or the Magistrate before whom any such person is brought shall, if he sees no reasonable ground for search, forthwith discharge the person but otherwise shall direct that search be made. (4) No female shall be searched by anyone excepting a female. **28. Provisions of Act 2 of 1974 to apply to arrests, searches and seizures.—The provisions of the** Code of Criminal Procedure, 1973 shall apply, in so far as they are not inconsistent with the provisions of this Act, to all warrants issued and arrests, searches and seizures made under this Act. **29. Disposal of persons arrested and goods seized.—(1) Any officer arresting a person under** section 22 or section 23 or section 24 shall, as soon as may be, inform him of the grounds for such arrest. (2) Every person arrested and goods seized under warrant issued under sub-section (1) of section 22 shall be forwarded without unnecessary delay to the Magistrate by whom the warrant was issued. (3) Every person arrested and goods seized under sub-section (2) of section 22 or section 23 or section 24 shall be forwarded without unnecessary delay to— (a) the officer in charge of the nearest police station; or (b) the officer empowered under section 30. (4) The authority or officer to whom any person or goods is forwarded under sub-section (2) or sub-section (3) shall, with all convenient despatch, take such measures as may be necessary for the disposal according to law of such person or goods. **30. Power to invest officers of the National Authority, etc., with powers of an officer in charge of** **a police station.—(1) The Central Government may, after consultation with the State Government, by** notification published in the Official Gazette, invest any officer of the National Authority with the powers of an officer in charge of a police station for the investigation of the offences under this Act. ----- (2) The State Government may, by notification published in the Official Gazette, invest any of officer of gazetted rank or any class of such officers with the powers of an officer in charge of a police station for the investigation of the offences under this Act. **31. Police to take charge of goods seized and delivered.—An officer in charge of a police station** shall take charge of and keep in safe custody, pending the orders of the Magistrate, all goods seized under this Act within the local area of that police station and which may be delivered to him, and shall allow any officer who may accompany such goods to the police station or who may be deputed for the purpose, to affix his seal to such goods or to take samples of and from them and all samples so taken shall also be sealed with a seal of the officer in charge of the police station. **32. Report of arrest and seizure.—Whenever any person makes any arrest or seizure under this Act,** he shall, within forty-eight hours next after such arrest or seizure, make a full report of all the particulars of such arrest or seizure to his immediate superior officer. **33. Liability of Toxic Chemicals, Precursors and conveyance to confiscation.—(1) Whenever any** offence punishable under Chapter VI has been committed, the goods or in respect of which or by means of which such offence has been committed, shall be liable o confiscation. (2) Any Toxic Chemical or Precursor lawfully produced, imported into India, transported, used, purchased or sold along with, or in addition to, any goods which is liable to confiscation under sub-section (1) and the receptacles, packages and coverings in which any goods liable to confiscation under sub-section (1), is found, and the other contents, if any, of such receptacles or packages shall likewise be liable to confiscation. (3) Any conveyance used in carrying any goods liable to confiscation under sub-section (1) or sub-section (2) shall be liable to confiscation, unless the owner of the conveyance proves that it was used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance and that each of them had taken all reasonable precautions against such use. **34. Confiscation of goods used for concealing Toxic Chemicals or Precursors.—Any Goods used** for concealing any goods which is liable to confiscation under this Act shall also be liable to confiscation. _Explanation.—In this section, “Goods” includes conveyance as a means of transport._ **35. Confiscation of sale proceeds of goods.—Where any goods is sold by a person having** knowledge or reason to believe that the goods is liable to confiscation under this Act, the sale proceeds thereof shall also be liable to confiscation. **36. Procedure in making confiscation.—(1) In the trial of offences under this Act, whether the** accused is convicted or acquitted or discharged, the court shall decide whether any goods seized under this Act is liable to confiscation and, if it decides that the goods is so liable, it may order confiscation accordingly. (2) Where any goods seized under this Act appears to be liable to confiscation under section 33 or section 34 or section 35, but the person who committed the offence therewith is not known or cannot be found, the court may inquire into and decide such liability, and may order confiscation accordingly: Provided that no order of confiscation of any goods shall be made until the expiry of one month from the date of seizure, or without hearing any person who may claim any right thereto and the evidence, if any, which he produces in respect of his claim. (3) Any person not convicted who claims any right to property which has been confiscated under this section may appeal to the Court of Session against the order of confiscation. **37. Power to call for information, etc.—Any subordinate officer authorised under section 23 may,** during the course of any inquiry in connection with the contravention of any provision of this Act,— (a) call for information from any person for the purpose of satisfying himself whether there has been any contravention of the provisions of this Act or any rule or order made or direction issued thereunder; (b) require any person to produce or deliver any document or thing useful or relevant to the enquiry; ----- (c) examine any person acquainted with the facts and circumstances of the case. **38. Information as to commission of offences.—No enforcement officer, subordinate officer to** enforcement officer or officer of the National Authority or the State Government or officer subordinate to such officer as is mentioned in sub-section (2) of section 22 acting in exercise of powers vested in him under any provision of this Act or any such order made thereunder shall be compelled to say when he got any information as to the commission of any offence. CHAPTER VI OFFENCES AND PENALTIES **39. Punishment for failure to register.—Whoever—** (a) before the commencement of this Act had been engaged in development, production, processing, acquisition, consumption, transfer, import, export or use of any Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention or engaged in the production of any Discrete Organic Chemical including Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine and continues to be, after such commencement, so engaged; or (b) after the commencement of this Act produces, processes, acquires, consumes, transfers, imports, exports or uses any Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention or produces any Discrete Organic Chemical including Discrete Organic Chemicals containing elements of phosphorous, sulphur or fluorine, without complying with the provisions of sub-section (1) or, as the case may be, sub-section (2) of section 18 shall, unless his name is registered in accordance with the provisions of that section, be punishable with fine which may extend to one lakh rupees, and in the case of continuing default, with a further fine which may extend to one lakh rupees every day during which such default continues after conviction for the first default or with imprisonment for a term which may extend to three years, or with both. **40. Punishment for contravention in relation to development, production, etc., of Chemical** **Weapons or riot control agents, etc.—Whoever, in contravention of any provision of this Act, develops,** produces, otherwise acquires, stockpiles, retains or uses Chemical Weapons, transfers, directly or indirectly, any Chemical Weapon to any person, uses any riot control agent as a method of warfare, engages in any military preparations to use Chemical Weapons, assists, encourages or induces in any manner any person to engage in the use of any riot control agent as a method of warfare or any other activity prohibited to a State Party under the Convention, shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to term of life and shall also be liable to fine which may extend to one lakh rupees. **41. Punishment for contravention in relation to Toxic Chemicals, etc., listed in Schedule 1.—** Whoever, in contravention of any provision of this Act, produces, acquires, retains, transfers or uses any Toxic Chemical or Precursor listed in Schedule 1 in the Annex on Chemicals to the Convention for the purposes prohibited to a State Party under the Convention or transfers any Toxic Chemical or Precursor listed in Schedule 1 in the Annex on Chemicals to the Convention outside India, shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to term of life and shall also be liable to fine which may extend to one lakh rupees. **42. Punishment for contravention in relation to transfer of Toxic Chemicals, etc., listed in** **Schedule 2.—Whoever, in contravention of any provision of this Act transfers to or receives from** [1][a State which is not a State Party or any person] who is not a citizen of a State Party any Toxic Chemical or Precursor listed in Schedule 2 in the Annex on Chemicals to the Convention, shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to term of life and shall also be liable to fine which may extend to one lakh rupees. **43. Punishment for contravention in relation to export or import of Toxic Chemicals, etc.—** Whoever, in contravention of any provision of this Act, exports from or imports into India any Toxic Chemical or Precursor listed in any of the Schedules 1 to 3 in the Annex on Chemicals to the Convention, shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to term of life and shall also be liable to fine which may extend to one lakh rupees. 1 Subs by Act 36 of 2012 s 5 for “any person” (w e f 23 11 2012) ----- **44. Punishment for contravention in relation to disclosure of confidential information.—** Whoever, in contravention of any provision of this Act, divulges any confidential information obtained by the National Authority from any declaration or return furnished or any statement made, information supplied to, or obtained by, an enforcement officer during the course of any inspection carried out under the provisions of this Act to any other person, shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to term of life and shall also be liable to fine which may extend to one lakh rupees. **45. Punishment for contravention in relation to denial of access.—Whoever does not comply with** the obligations related to inspection activity under the Convention or delays or obstructs any Inspection Team or Inspector or enforcement officer or Observer in performance of his functions or wilfully removes or tampers with any installed on site instrument or any Approved Equipment shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to term of life and shall also be liable to fine which may extend to one lakh rupees. **46. Punishment for contravention in relation to failure to furnish information, declaration or** **return.—Any person who being required by or under this Act to furnish any—** (a) information; (b) declaration; or (c) return, fails to furnish such information, declaration or return shall be punishable with fine which may extend to one lakh rupees, and in the case of continuing default, with a further fine which may extend to one lakh rupees for every day during which such default continues after conviction for the first such default, or with imprisonment for a term which may extend to three years, or with both. **47. Offence punishable under section 46 to be cognizable.—Notwithstanding anything contained** in the Code of Criminal Procedure, 1973 (2 of 1974), the offence punishable under section 46 shall be cognizable. **48. Offences by companies.—(1) Where any offence under Chapter VI has been committed by a** company, every person who at the time the offence was committed was in charge of, or was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under Chapter VI has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate, and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner of the firm. **49. Prosecution of offences.—No court shall take cognizance of any offence punishable under this** Act except with the previous sanction of the Central Government or the authority notified by the Central Government, in the Official Gazette, to be competent to sanction prosecution of the offences under this Act. **50. Appeals from the decision of the National Authority.—(1) Any person aggrieved by any** direction of the National Authority issued under section 10 may prefer an appeal to the Central Government within such time as may be prescribed. (2) No appeal shall be admitted if it is preferred after the expiry of the period prescribed therefor: ----- Provided that an appeal may be admitted after the expiry of the period prescribed therefor if the appellant satisfies the Central Government that he had sufficient cause for not preferring the appeal within the prescribed period. (3) Every appeal made under this section shall be made in such form and shall be accompanied by a copy of the direction appealed against and by such fee as may be prescribed. (4) The procedure for disposing of an appeal shall be such as may be prescribed: Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of being heard. **51. Provisions of Convention not to apply to certain mixtures.—Notwithstanding anything** contained in this Act, the provisions of the Convention in so far as they relate to— (a) restriction or reporting; (b) inspection; or (c) declaration and verification, shall not apply to any mixtures containing such concentration of any Chemicals specified in Schedule 2 or Schedule 3 in the Annex on Chemicals to the Convention as the Central Government may, by notification in the Official Gazette, specify. CHAPTER VII MISCELLANEOUS **52. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or a State Government or any officer of the Central Government or of a State Government or the Chairperson, Directors, officers and other employees of the National Authority or any other person exercising any powers or discharging any functions or performing any duties under this Act, for anything in good faith done or intended to be done under this Act or any rule or order made thereunder. **53. Power to delegate.—(1) The Central Government may, by notification in the Official Gazette,** delegate, subject to such conditions and limitations as may be specified in the notification, such of its powers and functions under this Act (except the power to make rules under section 56) as it may deem necessary or expedient, to the National Authority or the Committee referred to in section 11. (2) The State Government may, by notification in the Official Gazette, delegate, subject to such conditions and limitations as may be specified in the notification, such of its powers and functions under this Act, as it may deem necessary or expedient, to any authority or officer of that Government. **54. Officers to be public servants.—The Chairperson, Directors, officers and other employees of the** National Authority or any other person exercising any powers or discharging any functions under this Act shall be deemed to be the public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **55. Removal of difficulties.—If any difficulty arises in giving effect to the provisions of this Act, the** Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of three years from the date on which this Act receives the assent of the President. **56. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the salary and allowances payable to, and other terms and conditions of service of, the Chairperson and the Directors under sub-section (3) of section 6, and the salary and allowances payable to and other terms and conditions of service of officers and other employees of the National Authority under sub-section (4) of that section; ----- (b) other functions of the National Authority that may be prescribed under clause (v) of sub-section (2) of section 7; 1[(ba) the criteria which the officers are required to fulfil under sub-section (1) of section 9;] 2[(c) the exemptions and thresholds under sub-sections (1) and (2) of section 18, the form of application, the particulars to be contained in the application form, the form of certificate of registration, the manner of making application, the amount of fee payable, the procedure to be followed in granting or cancelling certificate of registration under sub-section (3) of section 18, the terms and conditions for granting a certificate of registration under sub-section (4) of section 18, the period for which a renewed certificate of registration may be issued and the amount of fee payable therefor under sub-section (5) of sub-section 18, and information, declaration or return to be furnished under sub-section (6) of that section;] (d) the time within which appeal may be preferred under sub-section (1) of section 50; (e) the form for making appeal and the fee to be accompanied therewith under sub-section (3) of section 50; (f) the procedure for disposing of appeal under sub-section (4) of section 50; (g) any other matter which is to be, or may be, prescribed. (3) Every notification issued under sub-section (2) of section 3, any declaration made under section 5, every order made under section 55 and every rule made under section 56 shall be laid, as soon as may be after it is issued or made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification, order or rule or both Houses agree that the notification, order or rule should not be issued or made, the notification, order or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification, order or rule. 1. Ins. by Act 36 of 2012, s. 6 (w.e.f. 23-11-2012). 2 Subs by s 6 ibid for clause (c) (w e f 23 11 2012) ----- THE SCHEDULE (See section 3) PROVISIONS OF THE CONVENTION WHICH SHALL HAVE THE FORCE OF LAW ARTICLE I GENERAL OBLIGATIONS 1. Each State Party to this Convention undertakes never under any circumstances: (a) To develop, produce, otherwise acquire, stockpile or retain Chemical Weapons, or transfer, directly or indirectly, chemical weapons to anyone; (b) To use Chemical Weapons; (c) To engage in any military preparations to use Chemical Weapons; (d) To assist, encourage or induce, in any way, anyone to engage in any activity prohibited to a State Party under this Convention. 2. Each State Party undertakes to destroy Chemical Weapons it owns or possesses, or that are located in any place under its jurisdiction or control, in accordance with the provisions of this Convention. 3. Each State Party undertakes to destroy all Chemical Weapons it abandoned on the territory of another State Party, in accordance with the provisions of this Convention. 4. Each State Party undertakes to destroy any Chemical Weapons production facilities it owns or possesses, or that are located in any place under its jurisdiction or control, in accordance with the provisions of this Convention. 5. Each State Party undertakes not to use riot control agents as a method of warfare. ----- ARTICLE II DEFINITIONS AND CRITERIA For the purposes of this Convention: 1. “Chemical Weapons” means the following, together or separately: (a) Toxic chemicals and their precursors, except where intended for purposes not prohibited under this Convention, as long as the types and quantities are consistent with such purposes; (b) Munitions and devices, specifically designed to cause death or other harm through the toxic properties of those toxic chemicals specified in sub-paragraph (a), which would be released as a result of the employment of such munitions and devices; (c) Any equipment specifically designed for use directly in connection with the employment of munitions and devices specified in sub-paragraph (b). 2. “Toxic Chemical” means: Any chemical which through its chemical action on life processes can cause death, temporary incapacitation or permanent harm to humans or animals. This includes all such chemicals, regardless of their origin or of their method of production, and regardless of whether they are produced in facilities, in munitions or elsewhere. (For the purpose of implementing this Convention, toxic chemicals which have been identified for the application of verification measures are listed in Schedules contained in the Annex on Chemicals.) 3. “Precursor” means: Any chemical reactant which takes part at any stage in the production by whatever method of a toxic chemical. This includes any key component of a binary or multicomponent chemical system. (For the purpose of implementing this Convention, precursors which have been identified for the application of verification measures are listed in Schedules contained in the Annex on Chemicals.) 4. “Key Component of Binary or Multicomponent Chemical Systems” (hereinafter referred to as “key component”) means: The precursor which plays the most important role in determining the toxic properties of the final product and reacts rapidly with other chemicals in the binary or multicomponent system. 5. “Old Chemical Weapons” means: (a) Chemical weapons which were produced before 1925; or (b) Chemical weapons produced in the period between 1925 and 1946 that have deteriorated to such extent that they can no longer be used as chemical weapons. 6. “Abandoned Chemical Weapons” means: Chemical weapons, including old chemical weapons, abandoned by a State after 1 January 1925 on the territory of another State without the consent of the latter. 7. “Riot Control Agent” means: Any chemical not listed in a Schedule, which can produce rapidly in humans sensory irritation or disabling physical effects which disappear within a short time following termination of exposure. 8. “Chemical Weapons Production Facility”: (a) Means any equipment, as well as any building housing such equipment, that was designed, constructed or used at any time since 1 January 1946: (i) As part of the stage in the production of chemicals (“final technological stage”) where the material flows would contain, when the equipment is in operation: (1) Any chemical listed in Schedule 1 in the Annex on Chemicals; or (2) Any other chemical that has no use, above 1 tonne per year on the territory of a State Party or in any other place under the jurisdiction or control of a State Party, for purposes not prohibited under this Convention, but can be used for chemical weapons purposes; or (ii) For filling chemical weapons, including, _inter alia, the filling of chemicals listed in_ Schedule 1 into munitions, devices or bulk storage containers; the filling of chemicals into ----- containers that form part of assembled binary munitions and devices or into chemical submunitions that form part of assembled unitary munitions and devices, and the loading of the containers and chemical submunitions into the respective munitions and devices; (b) Does not mean: (i) Any facility having a production capacity for synthesis of chemicals specified in sub-paragraph (a) (i) that is less than 1 tonne; (ii) Any facility in which a chemical specified in sub-paragraph (a) (i) is or was produced as an unavoidable by-product of activities for purposes not prohibited under this Convention, provided that the chemical does not exceed 3 per cent. of the total product and that the facility is subject to declaration and inspection under the Annex on Implementation and Verification (hereinafter referred to as “Verification Annex”); or (iii) The single small-scale facility for production of chemicals listed in Schedule 1 for purposes not prohibited under this Convention as referred to in Part VI of the Verification Annex. 9. “Purposes Not Prohibited Under this Convention” means: (a) Industrial, agricultural, research, medical, pharmaceutical or other peaceful purposes; (b) Protective purposes, namely those purposes directly related to protection against toxic chemicals and to protection against chemical weapons; (c) Military purposes not connected with the use of chemical weapons and not dependent on the use of the toxic properties of chemicals as a method of warfare; (d) Law enforcement including domestic riot control purposes. 10. “Production Capacity” means: The annual quantitative potential for manufacturing a specific chemical based on the technological process actually used or, if the process is not yet operational, planned to be used at the relevant facility. It shall be deemed to be equal to the nameplate capacity or, if the nameplate capacity is not available, to the design capacity. The nameplate capacity is the product output under conditions optimized for maximum quantity for the production facility, as demonstrated by one or more test-runs. The design capacity is the corresponding theoretically calculated product output. 11. “Organization” means the Organization for the Prohibition of Chemical Weapons established pursuant to Article VIII of this Convention. 12. For the purposes of Article VI: (a) “Production” of a chemical means its formation through chemical reaction; (b) “Processing” of a chemical means a physical process, such as formulation, extraction and purification, in which a chemical is not converted into another chemical; (c) “Consumption” of a chemical means its conversion into another chemical _via a chemical_ reaction. ----- ARTICLE III DECLARATIONS 1. Each State Party shall submit to the Organization, not later than 30 days after this Convention enters into force for it, the following declarations, in which it shall: (a) With respect to chemical weapons: (i) Declare whether it owns or possesses any chemical weapons, or whether there are any chemical weapons located in any place under its jurisdiction or control; (ii) Specify the precise location, aggregate quantity and detailed inventory of chemical weapons it owns or possesses, or that are located in any place under its jurisdiction or control, in accordance with Part IV (A), paragraphs 1 to 3, of the Verification Annex, except for those chemical weapons referred to in sub-paragraph (iii); (iii) Report any chemical weapons on its territory that are owned and possessed by another State and located in any place under the jurisdiction or control of another State, in accordance with Part IV (A), paragraph 4, of the Verification Annex; (iv) Declare whether it has transferred or received, directly or indirectly, any chemical weapons since 1 January 1946 and specify the transfer or receipt of such weapons, in accordance with Part IV (A), paragraph 5, of the Verification Annex; (v) Provide its general plan for destruction of chemical weapons that it owns or possesses, or that are located in any place under its jurisdiction or control, in accordance with Part IV (A), paragraph 6, of the Verification Annex; (b) With respect to old chemical weapons and abandoned chemical weapons: (i) Declare whether it has on its territory old chemical weapons and provide all available information in accordance with Part IV (B), paragraph 3, of the Verification Annex; (ii) Declare whether there are abandoned chemical weapons on its territory and provide all available information in accordance with Part IV (B), paragraph 8, of the Verification Annex; (iii) Declare whether it has abandoned chemical weapons on the territory of other States and provide all available information in accordance with Part IV (B), paragraph 10, of the Verification Annex; (c) With respect to chemical weapons production facilities: (i) Declare whether it has or has had any chemical weapons production facility under its ownership or possession, or that is or has been located in any place under its jurisdiction or control at any time since 1 January 1946; (ii) Specify any chemical weapons production facility it has or has had under its ownership or possession or that is or has been located in any place under its jurisdiction or control at any time since 1 January 1946, in accordance with Part V, paragraph 1, of the Verification Annex, except for those facilities referred to in sub-paragraph (iii); (iii) Report any chemical weapons production facility on its territory that another State has or has had under its ownership and possession and that is or has been located in any place under the jurisdiction or control of another State at any time since 1 January 1946, in accordance with Part V, paragraph 2, of the Verification Annex; (iv) Declare whether it has transferred or received, directly or indirectly, any equipment for the production of chemical weapons since 1 January 1946 and specify the transfer or receipt of such equipment, in accordance with Part V, paragraphs 3 to 5, of the Verification Annex; (v) Provide its general plan for destruction of any chemical weapons production facility it owns or possesses, or that is located in any place under its jurisdiction or control, in accordance with Part V, paragraph 6, of the Verification Annex; (vi) Specify actions to be taken for closure of any chemical weapons production facility it owns or possesses, or that is located in any place under its jurisdiction or control, in accordance with Part V, paragraph 1 (i), of the Verification Annex; ----- (vii) Provide its general plan for any temporary conversion of any chemical weapons production facility it owns or possesses, or that is located in any place under its jurisdiction or control, into a chemical weapons destruction facility, in accordance with Part V, paragraph 7, of the Verification Annex; (d) With respect to other facilities, specify the precise location, nature and general scope of activities of any facility or establishment under its ownership or possession, or located in any place under its jurisdiction or control, and that has been designed, constructed or used since 1 January 1946 primarily for development of chemical weapons. Such declaration shall include, _inter alia,_ laboratories and test and evaluation sites; (e) With respect to riot control agents specify the chemical name, structural formula and Chemical Abstracts Service (CAS) registry number, if assigned, of each chemical it holds for riot control purposes. This declaration shall be updated not later than 30 days after any change becomes effective. 2. The provisions of this Article and the relevant provisions of Part IV of the Verification Annex shall not, at the discretion of a State Party, apply to chemical weapons buried on its territory before 1 January 1977 and which remain buried, or which had been dumped at sea before 1 January 1985. ----- ARTICLE IV CHEMICAL WEAPONS 1. The provisions of this Article and the detailed procedures for its implementation shall apply to all chemical weapons owned or possessed by a State Party, or that are located in any place under its jurisdiction or control, except old chemical weapons and abandoned chemical weapons to which Part IV (B) of the Verification Annex applies. 2. Detailed procedures for the implementation of this Article are set forth in the Verification Annex. 3. All locations at which chemical weapons specified in paragraph 1 are stored or destroyed shall be subject to systematic verification through on-site inspection and monitoring with on-site instruments, in accordance with Part IV (A) of the Verification Annex. 4. Each State Party shall, immediately after the declaration under Article III, paragraph 1 (a), has been submitted, provide access to chemical weapons specified in paragraph 1 for the purpose of systematic verification of the declaration through on-site inspection. Thereafter, each State Party shall not remove any of these chemical weapons, except to a chemical weapons destruction facility. It shall provide access to such chemical weapons, for the purpose of systematic on-site verification. 5. Each State Party shall provide access to any chemical weapons destruction facilities and their storage areas, that it owns or possesses, or that are located in any place under its jurisdiction or control, for the purpose of systematic verification through on-site inspection and monitoring with on-site instruments. 6. Each State Party shall destroy all chemical weapons specified in paragraph 1 pursuant to the Verification Annex and in accordance with the agreed rate and sequence of destruction (hereinafter referred to as “order of destruction”). Such destruction shall begin not later than two years after this Convention enters into force for it and shall finish not later than 10 years after entry into force of this Convention. A State Party is not precluded from destroying such chemical weapons at a faster rate. 7. Each State Party shall: (a) Submit detailed plans for the destruction of chemical weapons specified in paragraph 1 not later than 60 days before each annual destruction period begins, in accordance with Part IV (A), paragraph 29, of the Verification Annex; the detailed plans shall encompass all stocks to be destroyed during the next annual destruction period; (b) Submit declarations annually regarding the implementation of its plans for destruction of chemical weapons specified in paragraph 1, not later than 60 days after the end of each annual destruction period; and (c) Certify, not later than 30 days after the destruction process has been completed, that all chemical weapons specified in paragraph 1 have been destroyed. 8. If a State ratifies or accedes to this Convention after the 10-year period for destruction set forth in paragraph 6, it shall destroy chemical weapons specified in paragraph 1 as soon as possible. The order of destruction and procedures for stringent verification for such a State Party shall be determined by the Executive Council. 9. Any chemical weapons discovered by a State Party after the initial declaration of chemical weapons shall be reported, secured and destroyed in accordance with Part IV (A) of the Verification Annex. 10. Each State Party, during transportation, sampling, storage and destruction of chemical weapons, shall assign the highest priority to ensuring the safety of people and to protecting the environment. Each State Party shall transport, sample, store and destroy chemical weapons in accordance with its national standards for safety and emissions. 11. Any State Party which has on its territory chemical weapons that are owned or possessed by another State, or that are located in any place under the jurisdiction or control of another State, shall make the fullest efforts to ensure that these chemical weapons are removed from its territory not later than one year after this Convention enters into force for it. If they are not removed within one year, the State Party may request the Organization and other States Parties to provide assistance in the destruction of these chemical weapons. ----- 12. Each State Party undertakes to cooperate with other States Parties that request information or assistance on a bilateral basis or through the Technical Secretariat regarding methods and technologies for the safe and efficient destruction of chemical weapons. 13. In carrying out verification activities pursuant to this Article and Part IV (A) of the Verification Annex, the Organization shall consider measures to avoid unnecessary duplication of bilateral or multilateral agreements on verification of chemical weapons storage and their destruction among States Parties. To this end, the Executive Council shall decide to limit verification to measures complementary to those undertaken pursuant to such a bilateral or multilateral agreement, if it considers that: (a) Verification provisions of such an agreement are consistent with the verification provisions of this Article and Part IV (A) of the Verification Annex; (b) Implementation of such an agreement provides for sufficient assurance of compliance with the relevant provisions of this Convention; and (c) Parties to the bilateral or multilateral agreement keep the Organization fully informed about their verification activities. 14. If the Executive Council takes a decision pursuant to paragraph 13, the Organization shall have the right to monitor the implementation of the bilateral or multilateral agreement. 15. Nothing in paragraphs 13 and 14 shall affect the obligation of a State Party to provide declarations pursuant to Article III, this Article and Part IV (A) of the Verification Annex. 16. Each State Party shall meet the costs of destruction of chemical weapons it is obliged to destroy. It shall also meet the costs of verification of storage and destruction of these chemical weapons unless the Executive Council decides otherwise. If the Executive Council decides to limit verification measures of the Organization pursuant to paragraph 13, the costs of complementary verification and monitoring by the Organization shall be paid in accordance with the United Nations scale of assessment, as specified in Article VIII, paragraph 7. 17. The provisions of this Article and the relevant provisions of Part IV of the Verification Annex shall not, at the discretion of a State Party, apply to chemical weapons buried on its territory before 1 January 1977 and which remain buried, or which had been dumped at sea before 1 January 1985. ----- ARTICLE V CHEMICAL WEAPONS PRODUCTION FACILITIES 1. The provisions of this Article and the detailed procedures for its implementation shall apply to any and all chemical weapons production facilities owned or possessed by a State Party, or that are located in any place under its jurisdiction or control. 2. Detailed procedures for the implementation of this Article are set forth in the Verification Annex. 3. All chemical weapons production facilities specified in paragraph 1 shall be subject to systematic verification through on-site inspection and monitoring with on-site instruments in accordance with Part V of the Verification Annex. 4. Each State Party shall cease immediately all activity at chemical weapons production facilities specified in paragraph 1, except activity required for closure. 5. No State Party shall construct any new chemical weapons production facilities or modify any existing facilities for the purpose of chemical weapons production or for any other activity prohibited under this Convention. 6. Each State Party shall, immediately after the declaration under Article III, paragraph 1 (c), has been submitted, provide access to chemical weapons production facilities specified in paragraph 1, for the purpose of systematic verification of the declaration through on-site inspection. 7. Each State Party shall: (a) Close, not later than 90 days after this Convention enters into force for it, all chemical weapons production facilities specified in paragraph 1, in accordance with Part V of the Verification Annex, and give notice thereof; and (b) Provide access to chemical weapons production facilities specified in paragraph 1, subsequent to closure, for the purpose of systematic verification through on-site inspection and monitoring with on-site instruments in order to ensure that the facility remains closed and is subsequently destroyed. 8. Each State Party shall destroy all chemical weapons production facilities specified in paragraph 1 and related facilities and equipment, pursuant to the Verification Annex and in accordance with an agreed rate and sequence of destruction (hereinafter referred to as “order of destruction”). Such destruction shall begin not later than one year after this Convention enters into force for it, and shall finish not later than ten years after entry into force of this Convention. A State Party is not precluded from destroying such facilities at a faster rate. 9. Each State Party shall: (a) Submit detailed plans for destruction of chemical weapons production facilities specified in paragraph 1, not later than 180 days before the destruction of each facility begins; (b) Submit declarations annually regarding the implementation of its plans for the destruction of all chemical weapons production facilities specified in paragraph 1, not later than 90 days after the end of each annual destruction period; and (c) Certify, not later than 30 days after the destruction process has been completed, that all chemical weapons production facilities specified in paragraph 1 have been destroyed. 10. If a State ratifies or accedes to this Convention after the 10-year period for destruction set forth in paragraph 8, it shall destroy chemical weapons production facilities specified in paragraph 1 as soon as possible. The order of destruction and procedures for stringent verification for such a State Party shall be determined by the Executive Council. 11. Each State Party, during the destruction of chemical weapons production facilities, shall assign the highest priority to ensuring the safety of people and to protecting the environment. Each State Party shall destroy chemical weapons production facilities in accordance with its national standards for safety and emissions. 12. Chemical weapons production facilities specified in paragraph 1 may be temporarily converted for destruction of chemical weapons in accordance with Part V, paragraphs 18 to 25, of the Verification ----- Annex. Such a converted facility must be destroyed as soon as it is no longer in use for destruction of chemical weapons but, in any case, not later than 10 years after entry into force of this Convention. 13. A State Party may request, in exceptional cases of compelling need, permission to use a chemical weapons production facility specified in paragraph 1 for purposes not prohibited under this Convention. Upon the recommendation of the Executive Council, the Conference of the States Parties shall decide whether or not to approve the request and shall establish the conditions upon which approval is contingent in accordance with Part V, Section D, of the Verification Annex. 14. The chemical weapons production facility shall be converted in such a manner that the converted facility is not more capable of being reconverted into a chemical weapons production facility than any other facility used for industrial, agricultural, research, medical, pharmaceutical or other peaceful purposes not involving chemicals listed in Schedule 1. 15. All converted facilities shall be subject to systematic verification through on-site inspection and monitoring with on-site instruments in accordance with Part V, Section D, of the Verification Annex. 16. In carrying out verification activities pursuant to this Article and Part V of the Verification Annex, the Organization shall consider measures to avoid unnecessary duplication of bilateral or multilateral agreements on verification of chemical weapons production facilities and their destruction among States Parties. To this end, the Executive Council shall decide to limit the verification to measures complementary to those undertaken pursuant to such a bilateral or multilateral agreement, if it considers that: (a) Verification provisions of such an agreement are consistent with the verification provisions of this Article and Part V of the Verification Annex; (b) Implementation of the agreement provides for sufficient assurance of compliance with the relevant provisions of this Convention; and (c) Parties to the bilateral or multilateral agreement keep the Organization fully informed about their verification activities. 17. If the Executive Council takes a decision pursuant to paragraph 16, the Organization shall have the right to monitor the implementation of the bilateral or multilateral agreement. 18. Nothing in paragraphs 16 and 17 shall affect the obligation of a State Party to make declarations pursuant to Article III, this Article and Part V of the Verification Annex. 19. Each State Party shall meet the costs of destruction of chemical weapons production facilities it is obliged to destroy. It shall also meet the costs of verification under this Article unless the Executive Council decides otherwise. If the Executive Council decides to limit verification measures of the Organization pursuant to paragraph 16, the costs of complementary verification and monitoring by the Organization shall be paid in accordance with the United Nations scale of assessment, as specified in Article VIII, paragraph 7. ----- ARTICLE VI ACTIVITIES NOT PROHIBITED UNDER THIS CONVENTION 1. Each State Party has the right, subject to the provisions of this Convention, to develop, produce, otherwise acquire, retain, transfer and use toxic chemicals and their precursors for purposes not prohibited under this Convention. 2. Each State Party shall adopt the necessary measures to ensure that toxic chemicals and their precursors are only developed, produced, otherwise acquired, retained, transferred, or used within its territory or in any other place under its jurisdiction or control for purposes not prohibited under this Convention. To this end, and in order to verify that activities are in accordance with obligations under this Convention, each State Party shall subject toxic chemicals and their precursors listed in Schedules 1, 2 and 3 of the Annex on Chemicals, facilities related to such chemicals, and other facilities as specified in the Verification Annex, that are located on its territory or in any other place under its jurisdiction or control, to verification measures as provided in the Verification Annex. 3. Each State Party shall subject chemicals listed in Schedule 1 (hereinafter referred to as “Schedule 1 chemicals”) to the prohibitions on production, acquisition, retention, transfer and use as specified in Part VI of the Verification Annex. It shall subject Schedule 1 chemicals and facilities specified in Part VI of the Verification Annex to systematic verification through on-site inspection and monitoring with on-site instruments in accordance with that Part of the Verification Annex. 4. Each State Party shall subject chemicals listed in Schedule 2 (hereinafter referred to as “Schedule 2 chemicals”) and facilities specified in Part VII of the Verification Annex to data monitoring and on-site verification in accordance with that Part of the Verification Annex. 5. Each State Party shall subject chemicals listed in Schedule 3 (hereinafter referred to as “Schedule 3 chemicals”) and facilities specified in Part VIII of the Verification Annex to data monitoring and on-site verification in accordance with that Part of the Verification Annex. 6. Each State Party shall subject facilities specified in Part IX of the Verification Annex to data monitoring and eventual on-site verification in accordance with that Part of the Verification Annex unless decided otherwise by the Conference of the States Parties pursuant to Part IX, paragraph 22, of the Verification Annex. 7. Not later than thirty days after this Convention enters into force for it, each State Party shall make an initial declaration on relevant chemicals and facilities in accordance with the Verification Annex. 8. Each State Party shall make annual declarations regarding the relevant chemicals and facilities in accordance with the Verification Annex. 9. For the purpose of on-site verification, each State Party shall grant to the inspectors access to facilities as required in the Verification Annex. 10. In conducting verification activities, the Technical Secretariat shall avoid undue intrusion into the State Party’s chemical activities for purposes not prohibited under this Convention and, in particular, abide by the provisions set forth in the Annex on the Protection of Confidential Information (hereinafter referred to as “Confidentiality Annex”). 11. The provisions of this Article shall be implemented in a manner which avoids hampering the economic or technological development of States Parties, and international cooperation in the field of chemical activities for purposes not prohibited under this Convention including the international exchange of scientific and technical information and chemicals and equipment for the production, processing or use of chemicals for purposes not prohibited under this Convention. ----- ARTICLE VII NATIONAL IMPLEMENTATION MEASURES **General undertakings** 1. Each State Party shall, in accordance with its constitutional processes, adopt the necessary measures to implement its obligations under this Convention. In particular, it shall: (a) Prohibit natural and legal persons anywhere on its territory or in any other place under its jurisdiction as recognized by international law from undertaking any activity prohibited to a State Party under this Convention, including enacting penal legislation with respect to such activity; (b) Not permit in any place under its control any activity prohibited to a State Party under this Convention; and (c) Extend its penal legislation enacted under sub-paragraph (a) to any activity prohibited to a State Party under this Convention undertaken anywhere by natural persons, possessing its nationality, in conformity with international law. 2. Each State Party shall cooperate with other States Parties and afford the appropriate form of legal assistance to facilitate the implementation of the obligations under paragraph 1. 3. Each State Party, during the implementation of its obligations under this Convention, shall assign the highest priority to ensuring the safety of people and to protecting the environment, and shall cooperate as appropriate with other States Parties in this regard. **Relations between the State Party and the Organization** 4. In order to fulfil its obligations under this Convention, each State Party shall designate or establish a National Authority to serve as the national focal point for effective liaison with the Organization and other States Parties. Each State Party shall notify the Organization of its National Authority at the time that this Convention enters into force for it. 5. Each State Party shall inform the Organization of the legislative and administrative measures taken to implement this Convention. 6. Each State Party shall treat as confidential and afford special handling to information and data that it receives in confidence from the Organization in connection with the implementation of this Convention. It shall treat such information and data exclusively in connection with its rights and obligations under this Convention and in accordance with the provisions set forth in the Confidentiality Annex. 7. Each State Party undertakes to cooperate with the Organization in the exercise of all its functions and in particular to provide assistance to the Technical Secretariat. ----- ARTICLE VIII THE ORGANIZATION A. GENERAL PROVISIONS 1. The States Parties to this Convention hereby establish the Organization for the Prohibition of Chemical Weapons to achieve the object and purpose of this Convention, to ensure the implementation of its provisions, including those for international verification of compliance with it, and to provide a forum for consultation and cooperation among States Parties. 2. All States Parties to this Convention shall be members of the Organization. A State Party shall not be deprived of its membership in the Organization. 3. The seat of the Headquarters of the Organization shall be The Hague, Kingdom of the Netherlands. 4. There are hereby established as the organs of the Organization: the Conference of the States Parties, the Executive Council, and the Technical Secretariat. 5. The Organization shall conduct its verification activities provided for under this Convention in the least intrusive manner possible consistent with the timely and efficient accomplishment of their objectives. It shall request only the information and data necessary to fulfil its responsibilities under this Convention. It shall take every precaution to protect the confidentiality of information on civil and military activities and facilities coming to its knowledge in the implementation of this Convention and, in particular, shall abide by the provisions set forth in the Confidentiality Annex. 6. In undertaking its verification activities the Organization shall consider measures to make use of advances in science and technology. 7. The costs of the Organization’s activities shall be paid by States Parties in accordance with the United Nations scale of assessment adjusted to take into account differences in membership between the United Nations and this Organization, and subject to the provisions of Articles IV and V. Financial contributions of States Parties to the Preparatory Commission shall be deducted in an appropriate way from their contributions to the regular budget. The budget of the Organization shall comprise two separate chapters, one relating to administrative and other costs, and one relating to verification costs. 8. A member of the Organization which is in arrears in the payment of its financial contribution to the Organization shall have no vote in the Organization if the amount of its arrears equals or exceeds the amount of the contribution due from it for the preceding two full years. The Conference of the States Parties may, nevertheless, permit such a member to vote if it is satisfied that the failure to pay is due to conditions beyond the control of the member. B. THE CONFERENCE OF THE STATES PARTIES _Composition, procedures and decision-making_ 9. The Conference of the States Parties (hereinafter referred to as “the Conference”) shall be composed of all members of this Organization. Each member shall have one representative in the Conference, who may be accompanied by alternates and advisers. 10. The first session of the Conference shall be convened by the depositary not later than 30 days after the entry into force of this Convention. 11. The Conference shall meet in regular sessions which shall be held annually unless it decides otherwise. 12. Special sessions of the Conference shall be convened: (a) When decided by the Conference; (b) When requested by the Executive Council; (c) When requested by any member and supported by one third of the members; or (d) In accordance with paragraph 22 to undertake reviews of the operation of this Convention. Except in the case of sub-paragraph (d), the special session shall be convened not later than 30 days after receipt of the request by the Director-General of the Technical Secretariat, unless specified otherwise in the request. ----- 13. The Conference shall also be convened in the form of an Amendment Conference in accordance with Article XV, paragraph 2. 14. Sessions of the Conference shall take place at the seat of the Organization unless the Conference decides otherwise. 15. The Conference shall adopt its rules of procedure. At the beginning of each regular session, it shall elect its Chairman and such other officers as may be required. They shall hold office until a new Chairman and other officers are elected at the next regular session. 16. A majority of the members of the Organization shall constitute a quorum for the Conference. 17. Each member of the Organization shall have one vote in the Conference. 18. The Conference shall take decisions on questions of procedure by a simple majority of the members present and voting. Decisions on matters of substance should be taken as far as possible by consensus. If consensus is not attainable when an issue comes up for decision, the Chairman shall defer any vote for 24 hours and during this period of deferment shall make every effort to facilitate achievement of consensus, and shall report to the Conference before the end of this period. If consensus is not possible at the end of 24 hours, the Conference shall take the decision by a two-thirds majority of members present and voting unless specified otherwise in this Convention. When the issue arises as to whether the question is one of substance or not, that question shall be treated as a matter of substance unless otherwise decided by the Conference by the majority required for decisions on matters of substance. 19. The Conference shall be the principal organ of the Organization. It shall consider any questions, matters or issues within the scope of this Convention, including those relating to the powers and functions of the Executive Council and the Technical Secretariat. It may make recommendations and take decisions on any questions, matters or issues related to this Convention raised by a State Party or brought to its attention by the Executive Council. 20. The Conference shall oversee the implementation of this Convention, and act in order to promote its object and purpose. The Conference shall review compliance with this Convention. It shall also oversee the activities of the Executive Council and the Technical Secretariat and may issue guidelines in accordance with this Convention to either of them in the exercise of their functions. 21. The Conference shall: (a) Consider and adopt at its regular sessions the report, programme and budget of the Organization, submitted by the Executive Council, as well as consider other reports; (b) Decide on the scale of financial contributions to be paid by States Parties in accordance with paragraph 7; (c) Elect the members of the Executive Council; (d) Appoint the Director-General of the Technical Secretariat (hereinafter referred to as “the Director-General”); (e) Approve the rules of procedure of the Executive Council submitted by the latter; (f) Establish such subsidiary organs as it finds necessary for the exercise of its functions in accordance with this Convention; (g) Foster international cooperation for peaceful purposes in the field of chemical activities; (h) Review scientific and technological developments that could affect the operation of this Convention and, in this context, direct the Director-General to establish a Scientific Advisory Board to enable him, in the performance of his functions, to render specialized advice in areas of science and technology relevant to this Convention, to the Conference, the Executive Council or States Parties. The Scientific Advisory Board shall be composed of independent experts appointed in accordance with terms of reference adopted by the Conference; (i) Consider and approve at its first session any draft agreements, provisions and guidelines developed by the Preparatory Commission; (j) Establish at its first session the voluntary fund for assistance in accordance with Article X; ----- (k) Take the necessary measures to ensure compliance with this Convention and to redress and remedy any situation which contravenes the provisions of this Convention, in accordance with Article XII. 22. The Conference shall not later than one year after the expiry of the fifth and the tenth year after the entry into force of this Convention, and at such other times within that time period as may be decided upon, convene in special sessions to undertake reviews of the operation of this Convention. Such reviews shall take into account any relevant scientific and technological developments. At intervals of five years thereafter, unless otherwise decided upon, further sessions of the Conference shall be convened with the same objective. C. THE EXECUTIVE COUNCIL _Composition, procedure and decision-making_ 23. The Executive Council shall consist of 41 members. Each State Party shall have the right, in accordance with the principle of rotation, to serve on the Executive Council. The members of the Executive Council shall be elected by the Conference for a term of two years. In order to ensure the effective functioning of this Convention, due regard being specially paid to equitable geographical distribution, to the importance of chemical industry, as well as to political and security interests, the Executive Council shall be composed as follows: (a) Nine States Parties from Africa to be designated by States Parties located in this region. As a basis for this designation it is understood that, out of these nine States Parties, three members shall, as a rule, be the States Parties with the most significant national chemical industry in the region as determined by internationally reported and published data; in addition, the regional group shall agree also to take into account other regional factors in designating these three members; (b) Nine States Parties from Asia to be designated by States Parties located in this region. As a basis for this designation it is understood that, out of these nine States Parties, four members shall, as a rule, be the States Parties with the most significant national chemical industry in the region as determined by internationally reported and published data; in addition, the regional group shall agree also to take into account other regional factors in designating these four members; (c) Five States Parties from Eastern Europe to be designated by States Parties located in this region. As a basis for this designation it is understood that, out of these five States Parties, one member shall, as a rule, be the State Party with the most significant national chemical industry in the region as determined by internationally reported and published data; in addition, the regional group shall agree also to take into account other regional factors in designating this one member; (d) Seven States Parties from Latin America and the Caribbean to be designated by States Parties located in this region. As a basis for this designation it is understood that, out of these seven States Parties, three members shall, as a rule, be the States Parties with the most significant national chemical industry in the region as determined by internationally reported and published data; in addition, the regional group shall agree also to take into account other regional factors in designating these three members; (e) Ten States Parties from among Western European and other States to be designated by States Parties located in this region. As a basis for this designation it is understood that, out of these 10 States Parties, 5 members shall, as a rule, be the States Parties with the most significant national chemical industry in the region as determined by internationally reported and published data; in addition, the regional group shall agree also to take into account other regional factors in designating these five members; (f) One further State Party to be designated consecutively by States Parties located in the regions of Asia and Latin America and the Caribbean. As a basis for this designation it is understood that this State Party shall be a rotating member from these regions. 24. For the first election of the Executive Council 20 members shall be elected for a term of one year, due regard being paid to the established numerical proportions as described in paragraph 23. 25. After the full implementation of Articles IV and V the Conference may, upon the request of a majority of the members of the Executive Council, review the composition of the Executive Council ----- taking into account developments related to the principles specified in paragraph 23 that are governing its composition. 26. The Executive Council shall elaborate its rules of procedure and submit them to the Conference for approval. 27. The Executive Council shall elect its Chairman from among its members. 28. The Executive Council shall meet for regular sessions. Between regular sessions it shall meet as often as may be required for the fulfilment of its powers and functions. 29. Each member of the Executive Council shall have one vote. Unless otherwise specified in this Convention, the Executive Council shall take decisions on matters of substance by a two-thirds majority of all its members. The Executive Council shall take decisions on questions of procedure by a simple majority of all its members. When the issue arises as to whether the question is one of substance or not, that question shall be treated as a matter of substance unless otherwise decided by the Executive Council by the majority required for decisions on matters of substance. _Powers and functions_ 30. The Executive Council shall be the executive organ of the Organization. It shall be responsible to the Conference. The Executive Council shall carry out the powers and functions entrusted to it under this Convention, as well as those functions delegated to it by the Conference. In so doing, it shall act in conformity with the recommendations, decisions and guidelines of the Conference and assure their proper and continuous implementation. 31. The Executive Council shall promote the effective implementation of, and compliance with, this Convention. It shall supervise the activities of the Technical Secretariat, cooperate with the National Authority of each State Party and facilitate consultations and cooperation among States Parties at their request. 32. The Executive Council shall: (a) Consider and submit to the Conference the draft programme and budget of the Organization; (b) Consider and submit to the Conference the draft report of the Organization on the implementation of this Convention, the report on the performance of its own activities and such special reports as it deems necessary or which the Conference may request; (c) Make arrangements for the sessions of the Conference including the preparation of the draft agenda. 33. The Executive Council may request the convening of a special session of the Conference. 34. The Executive Council shall: (a) Conclude agreements or arrangements with States and international Organizations on behalf of the Organization, subject to prior approval by the Conference; (b) Conclude agreements with States Parties on behalf of the Organization in connection with Article X and supervise the voluntary fund referred to in Article X; (c) Approve agreements or arrangements relating to the implementation of verification activities, negotiated by the Technical Secretariat with States Parties. 35. The Executive Council shall consider any issue or matter within its competence affecting this Convention and its implementation, including concerns regarding compliance, and cases of noncompliance, and, as appropriate, inform States Parties and bring the issue or matter to the attention of the Conference. 36. In its consideration of doubts or concerns regarding compliance and cases of non-compliance, including, inter alia, abuse of the rights provided for under this Convention, the Executive Council shall consult with the States Parties involved and, as appropriate, request the State Party to take measures to redress the situation within a specified time. To the extent that the Executive Council considers further action to be necessary, it shall take, inter alia, one or more of the following measures: (a) Inform all States Parties of the issue or matter; ----- (b) Bring the issue or matter to the attention of the Conference; (c) Make recommendations to the Conference regarding measures to redress the situation and to ensure compliance, The Executive Council shall, in cases of particular gravity and urgency, bring the issue or matter, including relevant information and conclusions, directly to the attention of the United Nations General Assembly and the United Nations Security Council. It shall at the same time inform all States Parties of this step. D. THE TECHNICAL SECRETARIAT 37. The Technical Secretariat shall assist the Conference and the Executive Council in the performance of their functions. The Technical Secretariat shall carry out the verification measures provided for in this Convention. It shall carry out the other functions entrusted to it under this Convention as well as those functions delegated to it by the Conference and the Executive Council. 38. The Technical Secretariat shall: (a) Prepare and submit to the Executive Council the draft programme and budget of the Organization; (b) Prepare and submit to the Executive Council the draft report of the Organization on the implementation of this Convention and such other reports as the Conference or the Executive Council may request; (c) Provide administrative and technical support to the Conference, the Executive Council and subsidiary organs; (d) Address and receive communications on behalf of the Organization to and from States Parties on matters pertaining to the implementation of this Convention; (e) Provide technical assistance and technical evaluation to States Parties in the implementation of the provisions of this Convention, including evaluation of scheduled and unscheduled chemicals. 39. The Technical Secretariat shall: (a) Negotiate agreements or arrangements relating to the implementation of verification activities with States Parties, subject to approval by the Executive Council; (b) Not later than 180 days after entry into force of this Convention, coordinate the establishment and maintenance of permanent stockpiles of emergency and humanitarian assistance by States Parties in accordance with Article X, paragraphs 7 (b) and (c). The Technical Secretariat may inspect the items maintained for serviceability. Lists of items to be stockpiled shall be considered and approved by the Conference pursuant to paragraph 21 (i) above; (c) Administer the voluntary fund referred to in Article X, compile declarations made by the States Parties and register, when requested, bilateral agreements concluded between States Parties or between a State Party and the Organization for the purposes of Article X. 40. The Technical Secretariat shall inform the Executive Council of any problem that has arisen with regard to the discharge of its functions, including doubts, ambiguities or uncertainties about compliance with this Convention that have come to its notice in the performance of its verification activities and that it has been unable to resolve or clarify through its consultations with the State Party concerned. 41. The Technical Secretariat shall comprise a Director-General, who shall be its head and chief administrative officer, inspectors and such scientific, technical and other personnel as may be required. 42. The Inspectorate shall be a unit of the Technical Secretariat and shall act under the supervision of the Director-General. 43. The Director-General shall be appointed by the Conference upon the recommendation of the Executive Council for a term of four years, renewable for one further term, but not thereafter. 44. The Director-General shall be responsible to the Conference and the Executive Council for the appointment of the staff and the Organization and functioning of the Technical Secretariat.The paramount consideration in the employment of the staff and in the determination of the conditions of service shall be the necessity of securing the highest standards of efficiency, competence and integrity. Only citizens of ----- States Parties shall serve as the Director-General, as inspectors or as other members of the professional and clerical staff. Due regard shall be paid to the importance of recruiting the staff on as wide a geographical basis as possible. Recruitment shall be guided by the principle that the staff shall be kept to a minimum necessary for the proper discharge of the responsibilities of the Technical Secretariat. 45. The Director-General shall be responsible for the Organization and functioning of the Scientific Advisory Board referred to in paragraph 21(h). The Director-General shall, in consultation with States Parties, appoint members of the Scientific Advisory Board, who shall serve in their individual capacity. The members of the Board shall be appointed on the basis of their expertise in the particular scientific fields relevant to the implementation of this Convention. The Director-General may also, as appropriate, in consultation with members of the Board, establish temporary working groups of scientific experts to provide recommendations on specific issues. In regard to the above, States Parties may submit lists of experts to the Director-General. 46. In the performance of their duties, the Director-General, the inspectors and the other members of the staff shall not seek or receive instructions from any Government or from any other source external to the Organization. They shall refrain from any action that might reflect on their positions as international officers responsible only to the Conference and the Executive Council. 47. Each State Party shall respect the exclusively international character of the responsibilities of the Director-General, the inspectors and the other members of the staff and not seek to influence them in the discharge of their responsibilities. E. PRIVILEGES AND IMMUNITIES 48. The Organization shall enjoy on the territory and in any other place under the jurisdiction or control of a State Party such legal capacity and such privileges and immunities as are necessary for the exercise of its functions. 49. Delegates of States Parties, together with their alternates and advisers, representatives appointed to the Executive Council together with their alternates and advisers, the Director-General and the staff of the Organization shall enjoy such privileges and immunities as are necessary in the independent exercise of their functions in connection with the Organization. 50. The legal capacity, privileges, and immunities referred to in this Article shall be defined in agreements between the Organization and the States Parties as well as in an agreement between the Organization and the State in which the headquarters of the Organization is seated. These agreements shall be considered and approved by the Conference pursuant to paragraph 21(i). 51. Notwithstanding paragraphs 48 and 49, the privileges and immunities enjoyed by the Director General and the staff of the Technical Secretariat during the conduct of verification activities shall be those set forth in Part II, Section B, of the Verification Annex. ----- ARTICLE IX CONSULTATIONS, COOPERATION AND FACT-FINDING 1. States Parties shall consult and cooperate, directly among themselves, or through the Organization or other appropriate international procedures, including procedures within the framework of the United Nations and in accordance with its Charter, on any matter which may be raised relating to the object and purpose, or the implementation of the provisions, of this Convention. 2. Without prejudice to the right of any State Party to request a challenge inspection, States Parties should, whenever possible, first make every effort to clarify and resolve, through exchange of information and consultations among themselves, any matter which may cause doubt about compliance with this Convention, or which gives rise to concerns about a related matter which may be considered ambiguous. A State Party which receives a request from another State Party for clarification of any matter which the requesting State Party believes causes such a doubt or concern shall provide the requesting State Party as soon as possible, but in any case not later than 10 days after the request, with information sufficient to answer the doubt or concern raised along with an explanation of how the information provided resolves the matter. Nothing in this Convention shall affect the right of any two or more States Parties to arrange by mutual consent for inspections or any other procedures among themselves to clarify and resolve any matter which may cause doubt about compliance or gives rise to a concern about a related matter which may be considered ambiguous. Such arrangements shall not affect the rights and obligations of any State Party under other provisions of this Convention. _Procedure for requesting clarification_ 3. A State Party shall have the right to request the Executive Council to assist in clarifying any situation which may be considered ambiguous or which gives rise to a concern about the possible noncompliance of another State Party with this Convention. The Executive Council shall provide appropriate information in its possession relevant to such a concern. 4. A State Party shall have the right to request the Executive Council to obtain clarification from another State Party on any situation which may be considered ambiguous or which gives rise to a concern about its possible non-compliance with this Convention. In such a case, the following shall apply: (a) The Executive Council shall forward the request for clarification to the State Party concerned through the Director-General not later than 24 hours after its receipt; (b) The requested State Party shall provide the clarification to the Executive Council as soon as possible, but in any case not later than 10 days after the receipt of the request; (c) The Executive Council shall take note of the clarification and forward it to the requesting State Party not later than 24 hours after its receipt; (d) If the requesting State Party deems the clarification to be inadequate, it shall have the right to request the Executive Council to obtain from the requested State Party further clarification; (e) For the purpose of obtaining further clarification requested under sub-paragraph (d), the Executive Council may call on the Director-General to establish a group of experts from the Technical Secretariat, or if appropriate staff are not available in the Technical Secretariat, from elsewhere, to examine all available information and data relevant to the situation causing the concern. The group of experts shall submit a factual report to the Executive Council on its findings; (f) If the requesting State Party considers the clarification obtained under sub-paragraphs (d) and (e) to be unsatisfactory, it shall have the right to request a special session of the Executive Council in which States Parties involved that are not members of the Executive Council shall be entitled to take part. In such a special session, the Executive Council shall consider the matter and may recommend any measure it deems appropriate to resolve the situation. 5. A State Party shall also have the right to request the Executive Council to clarify any situation which has been considered ambiguous or has given rise to a concern about its possible non-compliance with this Convention. The Executive Council shall respond by providing such assistance as appropriate. 6. The Executive Council shall inform the States Parties about any request for clarification provided in this Article. ----- 7. If the doubt or concern of a State Party about a possible non-compliance has not been resolved within 60 days after the submission of the request for clarification to the Executive Council, or it believes its doubts warrant urgent consideration, notwithstanding its right to request a challenge inspection, it may request a special session of the Conference in accordance with Article VIII, paragraph 12(c). At such a special session, the Conference shall consider the matter and may recommend any measure it deems appropriate to resolve the situation. _Procedures for challenge inspections_ 8. Each State Party has the right to request an on-site challenge inspection of any facility or location in the territory or in any other place under the jurisdiction or control of any other State Party for the sole purpose of clarifying and resolving any questions concerning possible non-compliance with the provisions of this Convention, and to have this inspection conducted anywhere without delay by an inspection team designated by the Director-General and in accordance with the Verification Annex. 9. Each State Party is under the obligation to keep the inspection request within the scope of this Convention and to provide in the inspection request all appropriate information on the basis of which a concern has arisen regarding possible non-compliance with this Convention as specified in the Verification Annex. Each State Party shall refrain from unfounded inspection requests, care being taken to avoid abuse. The challenge inspection shall be carried out for the sole purpose of determining facts relating to the possible non-compliance. 10. For the purpose of verifying compliance with the provisions of this Convention, each State Party shall permit the Technical Secretariat to conduct the on-site challenge inspection pursuant to paragraph 8. 11. Pursuant to a request for a challenge inspection of a facility or location, and in accordance with the procedures provided for in the Verification Annex, the inspected State Party shall have: (a) The right and the obligation to make every reasonable effort to demonstrate its compliance with this Convention and, to this end, to enable the inspection team to fulfil its mandate; (b) The obligation to provide access within the requested site for the sole purpose of establishing facts relevant to the concern regarding possible non-compliance; and (c) The right to take measures to protect sensitive installations, and to prevent disclosure of confidential information and data, not related to this Convention. 12. With regard to an observer, the following shall apply: (a) The requesting State Party may, subject to the agreement of the inspected State Party, send a representative who may be a national either of the requesting State Party or of a third State Party, to observe the conduct of the challenge inspection; (b) The inspected State Party shall then grant access to the observer in accordance with the Verification Annex; (c) The inspected State Party shall, as a rule, accept the proposed observer, but if the inspected State Party exercises a refusal, that fact shall be recorded in the final report. 13. The requesting State Party shall present an inspection request for an on-site challenge inspection to the Executive Council and at the same time to the Director-General for immediate processing. 14. The Director-General shall immediately ascertain that the inspection request meets the requirements specified in Part X, paragraph 4, of the Verification Annex, and, if necessary, assist the requesting State Party in filing the inspection request accordingly. When the inspection request fulfils the requirements, preparations for the challenge inspection shall begin. 15. The Director-General shall transmit the inspection request to the inspected State Party not less than 12 hours before the planned arrival of the inspection team at the point of entry. 16. After having received the inspection request, the Executive Council shall take cognizance of the Director-General’s actions on the request and shall keep the case under its consideration throughout the inspection procedure. However, its deliberations shall not delay the inspection process. 17. The Executive Council may, not later than 12 hours after having received the inspection request, decide by a three-quarter majority of all its members against carrying out the challenge inspection, if it considers the inspection request to be frivolous, abusive or clearly beyond the scope of this Convention as ----- described in paragraph 8. Neither the requesting nor the inspected State Party shall participate in such a decision. If the Executive Council decides against the challenge inspection, preparations shall be stopped, no further action on the inspection request shall be taken, and the States Parties concerned shall be informed accordingly. 18. The Director-General shall issue an inspection mandate for the conduct of the challenge inspection. The inspection mandate shall be the inspection request referred to in paragraphs 8 and 9 put into operational terms, and shall conform with the inspection request. 19. The challenge inspection shall be conducted in accordance with Part X or, in the case of alleged use, in accordance with Part XI of the Verification Annex. The inspection team shall be guided by the principle of conducting the challenge inspection in the least intrusive manner possible, consistent with the effective and timely accomplishment of its mission. 20. The inspected State Party shall assist the inspection team throughout the challenge inspection and facilitate its task. If the inspected State Party proposes, pursuant to Part X, Section C, of the Verification Annex, arrangements to demonstrate compliance with this Convention, alternative to full and comprehensive access, it shall make every reasonable effort, through consultations with the inspection team, to reach agreement on the modalities for establishing the facts with the aim of demonstrating its compliance. 21. The final report shall contain the factual findings as well as an assessment by the inspection team of the degree and nature of access and cooperation granted for the satisfactory implementation of the challenge inspection. The Director-General shall promptly transmit the final report of the inspection team to the requesting State Party, to the inspected State Party, to the Executive Council and to all other States Parties. The Director-General shall further transmit promptly to the Executive Council the assessments of the requesting and of the inspected States Parties, as well as the views of other States Parties which may be conveyed to the Director-General for that purpose, and then provide them to all States Parties. 22. The Executive Council shall, in accordance with its powers and functions, review the final report of the inspection team as soon as it is presented, and address any concerns as to: (a) Whether any non-compliance has occurred; (b) Whether the request had been within the scope of this Convention; and (c) Whether the right to request a challenge inspection had been abused. 23. If the Executive Council reaches the conclusion, in keeping with its powers and functions, that further action may be necessary with regard to paragraph 22, it shall take the appropriate measures to redress the situation and to ensure compliance with this Convention, including specific recommendations to the Conference. In the case of abuse, the Executive Council shall examine whether the requesting State Party should bear any of the financial implications of the challenge inspection. 24. The requesting State Party and the inspected State Party shall have the right to participate in the review process. The Executive Council shall inform the States Parties and the next session of the Conference of the outcome of the process. 25. If the Executive Council has made specific recommendations to the Conference, the Conference shall consider action in accordance with Article XII. ----- ARTICLE X ASSISTANCE AND PROTECTION AGAINST CHEMICAL WEAPONS 1. For the purposes of this Article, “Assistance” means the coordination and delivery to States Parties of protection against chemical weapons, including, _inter alia, the following: detection equipment and_ alarm systems; protective equipment; decontamination equipment and decontaminants; medical antidotes and treatments; and advice on any of these protective measures. 2. Nothing in this Convention shall be interpreted as impeding the right of any State Party to conduct research into, develop, produce, acquire, transfer or use means of protection against chemical weapons, for purposes not prohibited under this Convention. 3. Each State Party undertakes to facilitate, and shall have the right to participate in, the fullest possible exchange of equipment, material and scientific and technological information concerning means of protection against chemical weapons. 4. For the purposes of increasing the transparency of national programmes related to protective purposes, each State Party shall provide annually to the Technical Secretariat information on its programme, in accordance with procedures to be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). 5. The Technical Secretariat shall establish, not later than 180 days after entry into force of this Convention and maintain, for the use of any requesting State Party, a data bank containing freely available information concerning various means of protection against chemical weapons as well as such information as may be provided by States Parties. The Technical Secretariat shall also, within the resources available to it, and at the request of a State Party, provide expert advice and assist the State Party in identifying how its programmes for the development and improvement of a protective capacity against chemical weapons could be implemented. 6. Nothing in this Convention shall be interpreted as impeding the right of States Parties to request and provide assistance bilaterally and to conclude individual agreements with other States Parties concerning the emergency procurement of assistance. 7. Each State Party undertakes to provide assistance through the Organization and to this end to elect to take one or more of the following measures: (a) To contribute to the voluntary fund for assistance to be established by the Conference at its first session; (b) To conclude, if possible not later than 180 days after this Convention enters into force for it, agreements with the Organization concerning the procurement, upon demand, of assistance; (c) To declare, not later than 180 days after this Convention enters into force for it, the kind of assistance it might provide in response to an appeal by the Organization. If, however, a State Party subsequently is unable to provide the assistance envisaged in its declaration, it is still under the obligation to provide assistance in accordance with this paragraph. 8. Each State Party has the right to request and, subject to the procedures set forth in paragraphs 9, 10 and 11, to receive assistance and protection against the use or threat of use of chemical weapons if it considers that: (a) Chemical weapons have been used against it; (b) Riot control agents have been used against it as a method of warfare; or (c) It is threatened by actions or activities of any State that are prohibited for States Parties by Article I. 9. The request, substantiated by relevant information, shall be submitted to the Director-General, who shall transmit it immediately to the Executive Council and to all States Parties. The Director-General shall immediately forward the request to States Parties which have volunteered, in accordance with paragraph 7(b) and (c), to dispatch emergency assistance in case of use of chemical weapons or use of riot control agents as a method of warfare, or humanitarian assistance in case of serious threat of use of chemical weapons or serious threat of use of riot control agents as a method of warfare to the State Party concerned not later than 12 hours after receipt of the request. The Director-General shall initiate, not later than 24 ----- hours after receipt of the request, an investigation in order to provide foundation for further action. He shall complete the investigation within 72 hours and forward a report to the Executive Council. If additional time is required for completion of the investigation, an interim report shall be submitted within the same time-frame. The additional time required for investigation shall not exceed 72 hours. It may, however, be further extended by similar periods. Reports at the end of each additional period shall be submitted to the Executive Council. The investigation shall, as appropriate and in conformity with the request and the information accompanying the request, establish relevant facts related to the request as well as the type and scope of supplementary assistance and protection needed. 10. The Executive Council shall meet not later than 24 hours after receiving an investigation report to consider the situation and shall take a decision by simple majority within the following 24 hours on whether to instruct the Technical Secretariat to provide supplementary assistance. The Technical Secretariat shall immediately transmit to all States Parties and relevant international Organizations the investigation report and the decision taken by the Executive Council. When so decided by the Executive Council, the Director-General shall provide assistance immediately. For this purpose, the DirectorGeneral may cooperate with the requesting State Party, other States Parties and relevant international Organizations. The States Parties shall make the fullest possible efforts to provide assistance. 11. If the information available from the ongoing investigation or other reliable sources would give sufficient proof that there are victims of use of chemical weapons and immediate action is indispensable, the Director-General shall notify all States Parties and shall take emergency measures of assistance, using the resources the Conference has placed at his disposal for such contingencies. The Director-General shall keep the Executive Council informed of actions undertaken pursuant to this paragraph. ----- ARTICLE XI ECONOMIC AND TECHNOLOGY DEVELOPMENT 1. The provisions of this Convention shall be implemented in a manner which avoids hampering the economic or technological development of States Parties, and international cooperation in the field of chemical activities for purposes not prohibited under this Convention including the international exchange of scientific and technical information and chemicals and equipment for the production, processing or use of chemicals for purposes not prohibited under this Convention. 2. Subject to the provisions of this Convention and without prejudice to the principles and applicable rules of international law, the States Parties shall: (a) Have the right, individually or collectively, to conduct research with, to develop, produce, acquire, retain, transfer, and use chemicals; (b) Undertake to facilitate, and have the right to participate in, the fullest possible exchange of chemicals, equipment and scientific and technical information relating to the development and application of chemistry for purposes not prohibited under this Convention; (c) Not maintain among themselves any restrictions, including those in any international agreements, incompatible with the obligations undertaken under this Convention, which would restrict or impede trade and the development and promotion of scientific and technological knowledge in the field of chemistry for industrial, agricultural, research, medical, pharmaceutical or other peaceful purposes; (d) Not use this Convention as grounds for applying any measures other than those provided for, or permitted, under this Convention nor use any other international agreement for pursuing an objective inconsistent with this Convention; (e) Undertake to review their existing national regulations in the field of trade in chemicals in order to render them consistent with the object and purpose of this Convention. ----- ARTICLE XII MEASURES TO REDRESS A SITUATION AND TO ENSURE COMPLIANCE, INCLUDING SANCTIONS 1. The Conference shall take the necessary measures, as set forth in paragraphs 2, 3 and 4, to ensure compliance with this Convention and to redress and remedy any situation which contravenes the provisions of this Convention. In considering action pursuant to this paragraph, the Conference shall take into account all information and recommendations on the issues submitted by the Executive Council. 2. In cases where a State Party has been requested by the Executive Council to take measures to redress a situation raising problems with regard to its compliance, and where the State Party fails to fulfil the request within the specified time, the Conference may, _inter alia, upon the recommendation of the_ Executive Council, restrict or suspend the State Party’s rights and privileges under this Convention until it undertakes the necessary action to conform with its obligations under this Convention. 3. In cases where serious damage to the object and purpose of this Convention may result from activities prohibited under this Convention, in particular by Article I, the Conference may recommend collective measures to States Parties in conformity with international law. 4. The Conference shall, in cases of particular gravity, bring the issue, including relevant information and conclusions, to the attention of the United Nations General Assembly and the United Nations Security Council. ARTICLE XIII RELATION TO OTHER INTERNATIONAL AGREEMENTS Nothing in this Convention shall be interpreted as in any way limiting or detracting from the obligations assumed by any State under the Protocol for the Prohibition of the Use in War of Asphyxiating, Poisonous or other Gases, and of Bacteriological Methods of War fare, signed at Geneva on 17 June 1925, and under the Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction, signed at London, Moscow and Washington on 10 April 1972. ----- ARTICLE XIV SETTLEMENT OF DISPUTES 1. Disputes that may arise concerning the application or the interpretation of this Convention shall be settled in accordance with the relevant provisions of this Convention and in conformity with the provisions of the Charter of the United Nations. 2. When a dispute arises between two or more States Parties, or between one or more States Parties and the Organization, relating to the interpretation or application of this Convention, the parties concerned shall consult together with a view to the expeditious settlement of the dispute by negotiation or by other peaceful means of the parties’ choice, including recourse to appropriate organs of this Convention and, by mutual consent, referral to the International Court of Justice in conformity with the Statute of the Court. The States Parties involved shall keep the Executive Council informed of actions being taken. 3. The Executive Council may contribute to the settlement of a dispute by whatever means it deems appropriate, including offering its good offices, calling upon the States Parties to a dispute to start the settlement process of their choice and recommending a time-limit for any agreed procedure. 4. The Conference shall consider questions related to disputes raised by States Parties or brought to its attention by the Executive Council. The Conference shall, as it finds necessary, establish or entrust organs with tasks related to the settlement of these disputes in conformity with Article VIII, paragraph 21(f). 5. The Conference and the Executive Council are separately empowered, subject to authorization from the General Assembly of the United Nations, to request the International Court of Justice to give an advisory opinion on any legal question arising within the scope of the activities of the Organization. An agreement between the Organization and the United Nations shall be concluded for this purpose in accordance with Article VIII, paragraph 34(a). 6. This Article is without prejudice to Article IX or to the provisions on measures to redress a situation and to ensure compliance, including sanctions. ----- ARTICLE XV AMENDMENTS 1. Any State Party may propose amendments to this Convention. Any State Party may also propose changes, as specified in paragraph 4, to the Annexes of this Convention. Proposals for amendments shall be subject to the procedures in paragraphs 2 and 3. Proposals for changes, as specified in paragraph 4, shall be subject to the procedures in paragraph 5. 2. The text of a proposed amendment shall be submitted to the Director-General for circulation to all States Parties and to the Depositary. The proposed amendment shall be considered only by an Amendment Conference. Such an Amendment Conference shall be convened if one third or more of the States Parties notify the Director-General not later than 30 days after its circulation that they support further consideration of the proposal. The Amendment Conference shall be held immediately following a regular session of the Conference unless the requesting States Parties ask for an earlier meeting. In no case shall an Amendment Conference be held less than 60 days after the circulation of the proposed amendment. 3. Amendments shall enter into force for all States Parties 30 days after deposit of the instruments of ratification or acceptance by all the States Parties referred to under sub-paragraph (b) below: (a) When adopted by the Amendment Conference by a positive vote of a majority of all States Parties with no State Party casting a negative vote; and (b) Ratified or accepted by all those States Parties casting a positive vote at the Amendment Conference. 4. In order to ensure the viability and the effectiveness of this Convention, provisions in the Annexes shall be subject to changes in accordance with paragraph 5, if proposed changes are related only to matters of an administrative or technical nature. All changes to the Annex on Chemicals shall be made in accordance with paragraph 5. Sections A and C of the Confidentiality Annex, Part X of the Verification Annex, and those definitions in Part I of the Verification Annex which relate exclusively to challenge inspections, shall not be subject to changes in accordance with paragraph 5. 5. Proposed changes referred to in paragraph 4 shall be made in accordance with the following procedures: (a) The text of the proposed changes shall be transmitted together with the necessary information to the Director-General. Additional information for the evaluation of the proposal may be provided by any State Party and the Director-General. The Director-General shall promptly communicate any such proposals and information to all States Parties, the Executive Council and the Depositary; (b) Not later than 60 days after its receipt, the Director-General shall evaluate the proposal to determine all its possible consequences for the provisions of this Convention and its implementation and shall communicate any such information to all States Parties and the Executive Council; (c) The Executive Council shall examine the proposal in the light of all information available to it, including whether the proposal fulfils the requirements of paragraph 4. Not later than 90 days after its receipt, the Executive Council shall notify its recommendation, with appropriate explanations, to all States Parties for consideration. States Parties shall acknowledge receipt within 10 days; (d) If the Executive Council recommends to all States Parties that the proposal be adopted, it shall be considered approved if no State Party objects to it within 90 days after receipt of the recommendation. If the Executive Council recommends that the proposal be rejected, it shall be considered rejected if no State Party objects to the rejection within 90 days after receipt of the recommendation; (e) If a recommendation of the Executive Council does not meet with the acceptance required under sub-paragraph (d), a decision on the proposal, including whether it fulfils the requirements of paragraph 4, shall be taken as a matter of substance by the Conference at its next session; (f) The Director-General shall notify all States Parties and the Depositary of any decision under this paragraph; (g) Changes approved under this procedure shall enter into force for all States Parties 180 days after the date of notification by the Director-General of their approval unless another time period is recommended by the Executive Council or decided by the Conference. ----- ARTICLE XVI DURATION AND WITHDRAWAL 1. This Convention shall be of unlimited duration. 2. Each State Party shall, in exercising its national sovereignty, have the right to withdraw from this Convention if it decides that extraordinary events, related to the subject-matter of this Convention, have jeopardized the supreme interests of its country. It shall give notice of such withdrawal 90 days in advance to all other States Parties, the Executive Council, the Depositary and the United Nations Security Council. Such notice shall include a statement of the extraordinary events it regards as having jeopardized its supreme interests. 3. The withdrawal of a State Party from this Convention shall not in any way affect the duty of States to continue fulfilling the obligations assumed under any relevant rules of international law, particularly the Geneva Protocol of 1925. ARTICLE XVII STATUS OF THE ANNEXES The Annexes form an integral part of this Convention. Any reference to this Convention includes the Annexes. ARTICLE XVIII SIGNATURE This Convention shall be open for signature for all States before its entry into force. ARTICLE XIX RATIFICATION This Convention shall be subject to ratification by States Signatories according to their respective constitutional processes. ARTICLE XX ACCESSION Any State which does not sign this Convention before its entry into force may accede to it at any time thereafter. ARTICLE XXI ENTRY INTO FORCE 1. This Convention shall enter into force 180 days after the date of the deposit of the 65th instrument of ratification, but in no case earlier than two years after its opening for signature. 2. For States whose instruments of ratification or accession are deposited subsequent to the entry into force of this Convention, it shall enter into force on the 30th day following the date of deposit of their instrument of ratification or accession. ARTICLE XXII RESERVATIONS The Articles of this Convention shall not be subject to reservations. The Annexes of this Convention shall not be subject to reservations incompatible with its object and purpose. ----- ARTICLE XXIII DEPOSITARY The Secretary-General of the United Nations is hereby designated as the Depositary of this Convention and shall, inter alia: (a) Promptly inform all signatory and acceding States of the date of each signature, the date of deposit of each instrument of ratification or accession and the date of the entry into force of this Convention, and of the receipt of other notices; (b) Transmit duly certified copies of this Convention to the Governments of all signatory and acceding States; and (c) Register this Convention pursuant to Article 102 of the Charter of the United Nations. ARTICLE XXIV AUTHENTIC TEXTS This Convention, of which the Arabic, Chinese, English, French, Russian and Spanish texts are equally authentic, shall be deposited with the Secretary-General of the United Nations. IN WITNESS WHEREOF the undersigned, being duly authorized to that effect, have signed this Convention. Done at Paris on the thirteenth day of January, one thousand nine hundred and ninety-three. ----- ANNEX ON CHEMICALS A. GUIDELINES FOR SCHEDULES OF CHEMICALS _Guidelines for Schedule 1_ 1. The following criteria shall be taken into account in considering whether a toxic chemical or precursor should be included in Schedule 1: (a) It has been developed, produced, stockpiled or used as a chemical weapon as defined in Article II; (b) It poses otherwise a high risk to the object and purpose of this Convention by virtue of its high potential for use in activities prohibited under this Convention because one or more of the following conditions are met: (i) It possesses a chemical structure closely related to that of other toxic chemicals listed in Schedule 1, and has, or can be expected to have, comparable properties; (ii) It possesses such lethal or incapacitating toxicity as well as other properties that would enable it to be used as a chemical weapon; (iii) It may be used as a precursor in the final single technological stage of production of a toxic chemical listed in Schedule 1, regardless of whether this stage takes place in facilities, in munitions or elsewhere; (c) It has little or no use for purposes not prohibited under this Convention. _Guidelines for Schedule 2_ 2. The following criteria shall be taken into account in considering whether a toxic chemical not listed in Schedule 1 or a precursor to a Schedule 1 chemical or to a chemical listed in Schedule 2, part A, should be included in Schedule 2: (a) It poses a significant risk to the object and purpose of this Convention because it possesses such lethal or incapacitating toxicity as well as other properties that could enable it to be used as a chemical weapon; (b) It may be used as a precursor in one of the chemical reactions at the final stage of formation of a chemical listed in Schedule 1 or Schedule 2, part A; (c) It poses a significant risk to the object and purpose of this Convention by virtue of its importance in the production of a chemical listed in Schedule 1or Schedule 2, part A; (d) It is not produced in large commercial quantities for purposes not prohibited under this Convention. _Guidelines for Schedule 3_ 3. The following criteria shall be taken into account in considering whether a toxic chemical or precursor, not listed in other Schedules, should be included in Schedule 3: (a) It has been produced, stockpiled or used as a chemical weapon; (b) It poses otherwise a risk to the object and purpose of this Convention because it possesses such lethal or incapacitating toxicity as well as other properties that might enable it to be used as a chemical weapon; (c) It poses a risk to the object and purpose of this Convention by virtue of its importance in the production of one or more chemicals listed in Schedule 1 or Schedule 2, part B; (d) It may be produced in large commercial quantities for purposes not prohibited under this Convention. B. SCHEDULES OF CHEMICALS The following Schedules list toxic chemicals and their precursors. For the purpose of implementing this Convention, these Schedules identify chemicals for the application of verification measures according to the provisions of the Verification Annex. Pursuant to Article II, sub-paragraph 1(a), these Schedules do not constitute a definition of chemical weapons. ----- (Whenever reference is made to groups of dialkylated chemicals, followed by a list of alkyl groups in parentheses, all chemicals possible by all possible combinations of alkyl groups listed in the parentheses are considered as listed in the respective Schedule as long as they are not explicitly exempted. A chemical marked “*” on Schedule 2, part A, is subject to special thresholds for declaration and verification, as specified in Part VII of the Verification Annex.) _Schedule 1_ (CAS registry number) A. Toxic chemicals: |(1)|O-Alkyl (≤C , incl. cycloalkyl) alkyl 10|Col3| |---|---|---| ||(Me, Et, n-Pr or i-Pr)-phosphonofluoridates|| ||e.g. Sarin: O-Isopropyl methylphosphonofluoridate|(107-44-8)| ||Soman: O-Pinacolyl methylphosphonofluoridate|(96-64-0)| |(2)|O-Alkyl (≤C , incl. cycloalkyl) N,N-dialkyl 10|| ||(Me, Et, n-Pr or i-Pr) phosphoramidocyanidates|| ||e.g. Tabun: 0-Ethyl N,N-dimethyl|| ||Phosphoramidocyanidate|(77-81-6)| |(3)|O-Alkyl (H or ≤C , incl. cycloalkyl) S-2 dialkyl 10|| ||(Me, Et, n-Pr or i-Pr)-aminoethyl alkyl|| ||(Me, Et, n-Pr or i-Pr) phosphonothiolates and corresponding alkylated or protonated salts|| ||e.g. VX: O-Ethyl S-2 diisopropylaminoethyl|| ||methyl phosphonothiolate|(50782-69-9)| |(4)|Sulfur mustards:|| ||2-Chloroethylchloromethylsulfide|(2625-76-5)| ||Mustard gas: Bis(2-chloroethyl) sulfide|(505-60-2)| ||Bis(2-chloroethylthio) methane|(63869-13-6)| ||Sesquimustard: 1,2-Bis (2-chloroethylthio) ethane|(3563-36-8)| ||1,3-Bis(2-chloroethylthio)-n-propane|(63905-10-2)| ||1,4-Bis(2-chloroethylthio)-n-butane|(142868-93-7)| ||1,5-Bis(2-chloroethylthio)-n-pentane|(142868-94-8)| ||Bis(2-chloroethylthiomethyl)ether|(63918-90-1)| ||O-Mustard: Bis(2-chloroethylthioethyl)ether|(63918-89-8)| |(5)|Lewisites:|| ||Lewisites 1: 2-Chlorovinyldichloroarsine|(541-25-3)| ||Lewisites 2: Bis(2-chlorovinyl)chloroarsine|(40334-69-8)| ||Lewisites 3: Tris(2-chlorovinyl)arsine|(40334-70-1)| |(6)|Nitrogen mustards:|| ||HN 1: Bis(2-chloroethyl)ethylamine|(538-07-8)| ||HN 2: Bis(2-chloroethyl)methylamine|(51-75-2)| ||HN 3: Tris(2-chloroethy1)amine|(555-77-1)| |(7)|Saxitoxin|(35523-89-8)| |(8)|Rich|(9009-86-3)| ----- 1[(13) Р-alkyl (H or ≤C10, incl. cycloalkyl) N-(1-(dialkyl(≤C10, incl. cycloalkyl)amino))alkylidene(H or ≤C10, incl. cycloalkyl) phosphonamidic fluorides and corresponding alkylated or protonated salts e.g. N-(1-(di-n-decylamino)-n-decylidene)-Pdecylphosphonamidic fluoride Methyl-(1-(diethylamino)ethylidene)phosphonamidofluoridate (14) O-alkyl (H or ≤C10, incl. cycloalkyl) N-(1-(dialkyl(≤C10, incl. cycloalkyl)amino))alkylidene(H or ≤C10, incl. cycloalkyl) phosphoramidofluoridates and corresponding alkylated or protonated salts e.g. O-n-Decyl N-(1-(di-n-decylamino)-n-decylidene) phosphoramidofluoridate Methyl (1-(diethylamino)ethylidene)phosphoramidofluoridate Ethyl (1-(diethylamino)ethylidene)phosphoramidofluoridate (15) Methyl-(bis(diethylamino)methylene)phosphonamidofluoridate (16) Carbamates (quaternaries and bisquaternaries of dimethylcarbamoyloxypyridines) Quaternaries of dimethylcarbamoyloxypyridines: 1-[N,N-dialkyl(≤C10)-N-(n-(hydroxyl, cyano, acetoxy)alkyl(≤C10)) ammonio]-n-[N-(3-dimethylcarbamoxy-α-picolinyl)-N,Ndialkyl(≤C10) ammonio]decanedibromide (n=1-8) e.g.1-[N,N-dimethyl-N-(2-hydroxy)ethylammonio]-10-[N-(3-dimethyl carbamoxy-α-picolinyl)-N, N-dimethylammonio]decanedibromide Bisquaternaries of dimethylcarbamoyloxypyridines: 1,n-Bis[N-(3-dimethylcarbamoxy-α-picolyl)-N,N-dialkyl(≤C10) ammonio]-alkane-(2,(n-1)- dione) dibromide (n=2-12) e.g. 1,10-Bis[N-(3-dimethylcarbamoxy-α-picolyl)-N-ethyl-Nmethylammonio] decane-2,9- dionedibromide 1 Inserted by vide notification No S O 1459(E) (w e f 7 6 2020) |1[(13)|Р-alkyl (H or ≤C10, incl. cycloalkyl) N-(1-(dialkyl(≤C10, incl. cycloalkyl)amino))alkylidene(H or ≤C10, incl. cycloalkyl) phosphonamidic fluorides and corresponding alkylated or protonated salts e.g. N-(1-(di-n-decylamino)-n-decylidene)-P- decylphosphonamidic fluoride Methyl-(1-(diethylamino)ethylidene)phosphonamidofluoridate|(2387495-99-8) (2387496-12-8)| |---|---|---| |(14)|O-alkyl (H or ≤C10, incl. cycloalkyl) N-(1-(dialkyl(≤C10, incl. cycloalkyl)amino))alkylidene(H or ≤C10, incl. cycloalkyl) phosphoramidofluoridates and corresponding alkylated or protonated salts e.g. O-n-Decyl N-(1-(di-n-decylamino)-n-decylidene) phosphoramidofluoridate Methyl (1-(diethylamino)ethylidene)phosphoramidofluoridate Ethyl (1-(diethylamino)ethylidene)phosphoramidofluoridate|(2387496-00-4) (2387496-04-8) (2387496-06-0) (2387496-14-0)| |(15)|Methyl-(bis(diethylamino)methylene)phosphonamidofluoridate|(2387496-14-0)| |(16)|Carbamates (quaternaries and bisquaternaries of dimethylcarbamoyloxypyridines) Quaternaries of dimethylcarbamoyloxypyridines: 1-[N,N-dialkyl(≤C10)-N-(n-(hydroxyl, cyano, acetoxy)alkyl(≤C10)) ammonio]-n-[N-(3-dimethylcarbamoxy-α-picolinyl)-N,N- dialkyl(≤C10) ammonio]decanedibromide (n=1-8) e.g.1-[N,N-dimethyl-N-(2-hydroxy)ethylammonio]-10-[N-(3-dimethyl carbamoxy-α-picolinyl)-N, N-dimethylammonio]decanedibromide Bisquaternaries of dimethylcarbamoyloxypyridines: 1,n-Bis[N-(3-dimethylcarbamoxy-α-picolyl)-N,N-dialkyl(≤C10) ammonio]-alkane-(2,(n-1)- dione) dibromide (n=2-12) e.g. 1,10-Bis[N-(3-dimethylcarbamoxy-α-picolyl)-N-ethyl-N- methylammonio] decane-2,9- dionedibromide|(77104-62-2) (77104-00-8)]| ----- B. Precursors: (9) Alkyl (Me, Et, n-Pr or i-Pr) phosphonyldifluorides _e.g._ DF: Methylphosphonyldifluoride (676-99-3) (10) O-Alkyl (H or ≤C10, incl. cycloalkyl) O-2-dialkyl (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl (Me, Et, n-Pr or i-Pr) phosphonites and corresponding alkylated or protonated salts _e.g. QL: O-Ethyl O-2-diisopropylaminoethyl_ methylphosphonite (57856-11-8) (11) Chlorosarin: O-Isopropyl methylphosphonochloridate (1445-76-7) (12) Chlorosoman: O-Pinacolyl methylphosphonochloridate (7040-57-5) _Schedule 2_ A. Toxic chemicals: (1) Amiton: O,O-Diethyl S-[2-(diethylamino)ethyl] Phosphorothiolate (78-53-5) and corresponding alkylated or protonated salts (2) PFIB: 1,1,3,3,3-Pentafluoro-2-(trifluoromethyl)-1-propene (382-2 1-8) (3) BZ: 3-Quinuclidinyl benzilate (*) (6581-06-2) B. Precursors: (4) Chemicals, except for those listed in Schedule 1, containing a phosphorus atom to which is bonded one methyl, ethyl or propyl (normal or iso) group but not further carbon atoms, _e.g. Methylphosphonyl dichloride_ (676-97-1) Dimethyl methylphosphonate (756-79-6) Exemption: Fonofos: O-Ethyl S-phenyl ethylphosphonothiolothionate (944-22-9) (5) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) phosphoramidic dihalides (6) Dialkyl (Me, Et, n-Pr or i-Pr) N,N-dialkyl (Me, Et, n-Pr or i-Pr)-phosphoramidates (7) Arsenic trichloride (7784-34-1) (8) 2,2-Diphenyl-2-hydroxyacetic acid (76-93-7) (9) Quinuclidin-3-ol (1619-34-7) (10) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethyle-2-chlorides and corresponding protonated salts (11) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) amhoethane-2-ols and corresponding protonated salts Exemptions: N,N-Dimethylaminoethanol (108-01-0) and corresponding protonated salts N,N-Diethylaminoethanol (100-37-8) and corresponding protonated salts (12) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethane-2-thiols and corresponding protonated salts (13) Thiodiglycol: Bis(2-hydroxyethyl)sulfide (111-48-8) (14) Pinacolyl alcohol: 3,3-Dimethylbutan-2-ol (464-07-3) ----- _Schedule 3_ A. Toxic chemicals: (1) Phosgene: Carbonyl dichloride (75-44-5) (2) Cyanogen chloride (506-77-4) (3) Hydrogen cyanide (74-90-8) (4) Chloropicrin: Trichloronitromethane (76-06-2) B. Precursors: (5) Phosphorus oxychloride (10025-87-3) (6) Phosphorus trichloride (7719-12-2) (7) Phosphorus pentachloride (10026-13-8) (8) Trimethyl phosphite (121-45-9) (9) Triethyl phosphite (122-52-1) (10) Dimethyl phosphite (868-85-9) (11) Diethyl phosphite (762-04-9) (12) Sulfur monochloride (10025-67-9) (13) Sulfur dichloride (10545-99-0) (14) Thionyl chloride (7719-09-7) (15) Ethyldiethanolamine (139-87-7) (16) Methyldiethanolamine (105-59-9) (17) Triethanolamine (102-71-6). ----- ANNEX ON IMPLEMENTATION AND VERIFICATION (“VERIFICATION ANNEX”) PART I DEFINITIONS 1. “Approved Equipment” means the devices and instruments necessary for the performance of the inspection team’s duties that have been certified by the Technical Secretariat in accordance with regulations prepared by the Technical Secretariat pursuant to Part II, paragraph 27 of this Annex. Such equipment may also refer to the administrative supplies or recording materials that would be used by the inspection team. 2. “Building” as referred to in the definition of chemical weapons production facility in Article II comprises specialized buildings and standard buildings: (a) “Specialized Building” means: (i) Any building, including underground structures, containing specialized equipment in a production or filling configuration; (ii) Any building, including underground structures, which has distinctive features which distinguish it from buildings normally used for chemical production or filling activities not prohibited under this Convention. (b) “Standard Building” means any building, including underground structures, constructed to prevailing industry standards for facilities not producing any chemical specified in Article II, paragraph 8 (a) (i), or corrosive chemicals. 3. “Challenge Inspection” means the inspection of any facility or location in the territory or in any other place under the jurisdiction or control of a State Party requested by another State Party pursuant to Article IX, paragraphs 8 to 25. 4. “Discrete Organic Chemical” means any chemical belonging to the class of chemical compounds consisting of all compounds of carbon except for its oxides, sulfides and metal carbonates, identifiable by chemical name, by structural formula, if known, and by Chemical Abstracts Service registry number, if assigned. 5. “Equipment” as referred to in the definition of chemical weapons production facility in Article II comprises specialized equipment and standard equipment. (a) “Specialized Equipment” means: (i) The main production train, including any reactor or equipment for product synthesis, separation or purification, any equipment used directly for heat transfer in the final technological stage, such as in reactors or in product separation, as well as any other equipment which has been in contact with any chemical specified in Article II, paragraph 8 (a) (i), or would be in contact with such a chemical if the facility were operated; (ii) Any chemical weapon filling machines; (iii) Any other equipment specially designed, built or installed for the operation of the facility as a chemical weapons production facility, as distinct from a facility constructed according to prevailing commercial industry standards for facilities not producing any chemical specified in Article II, paragraph 8 (a) (i), or corrosive chemicals, such as: equipment made of high-nickel alloys or other special corrosion-resistant material; special equipment for waste control, waste treatment, air filtering, or solvent recovery; special containment enclosures and safety shields; non-standard laboratory equipment used to analyse toxic chemicals for chemical weapons purposes; custom-designed process control panels; or dedicated spares for specialized equipment. (b) “Standard Equipment” means: (i) Production equipment which is generally used in the chemical industry and is not included in the types of specialized equipment; ----- (ii) Other equipment commonly used in the chemical industry, such as: fire-fighting equipment; guard and security/safety surveillance equipment; medical facilities, laboratory facilities; or communications equipment. 6. “Facility” in the context of Article VI means any of the industrial sites as defined below (“plant site”,“plant” and “unit”). (a) “Plant Site” (Works, Factory) means the local integration of one or more plants, with any intermediate administrative levels, which are under one operational control, and includes common infrastructure, such as: (i) Administration and other offices; (ii) Repair and maintenance shops; (iii) Medical centre; (iv) Utilities; (v) Central analytical laboratory; (vi) Research and development laboratories; (vii) Central effluent and waste treatment area; and (viii) Warehouse storage. (b) “Plant” (Production facility, Workshop) means a relatively self-contained area, structure or building containing one or more units with auxiliary and associated infrastructure, such as: (i) Small administrative section; (ii) Storage/handling areas for feedstock and products; (iii) Effluent/waste handling/treatment area; (iv) Control/analytical laboratory; (v) First aid service/related medical section; and (vi) Records associated with the movement into, around and from the site, of declared chemicals and their feedstock or product chemicals formed from them, as appropriate. (c) “Unit” (Production unit, Process unit) means the combination of those items of equipment, including vessels and vessel set up, necessary for the production, processing or consumption of a chemical. 7. “Facility Agreement” means an agreement or arrangement between a State Party and the Organization relating to a specific facility subject to on-site verification pursuant to Articles IV, V and VI. 8. “Host State” means the State on whose territory lie facilities or areas of another State, Party to this Convention, which are subject to inspection under this Convention. 9. “In-Country Escort” means individuals specified by the inspected State Party and, if appropriate, by the Host State, if they so wish, to accompany and assist the inspection team during the in-country period. 10. “In-Country Period” means the period from the arrival of the inspection team at a point of entry until its departure from the State at a point of entry. 11. “Initial Inspection” means the first on-site inspection of facilities to verify declarations submitted pursuant to Articles III, IV, V and VI and this Annex. 12. “Inspected State Party” means the State Party on whose territory or in any other place under its jurisdiction or control an inspection pursuant to this Convention takes place, or the State Party whose facility or area on the territory of a Host State is subject to such an inspection; it does not, however, include the State Party specified in Part II, paragraph 21 of this Annex. 13. “Inspection Assistant” means an individual designated by the Technical Secretariat as set forth in Part II, Section A, of this Annex to assist inspectors in an inspection or visit, such as medical, security and administrative personnel and interpreters. ----- 14. “Inspection Mandate” means the instructions issued by the Director-General to the inspection team for the conduct of a particular inspection. 15. “Inspection Manual” means the compilation of additional procedures for the conduct of inspections developed by the Technical Secretariat. 16. “Inspection Site” means any facility or area at which an inspection is carried out and which is specifically defined in the respective facility agreement or inspection request or mandate or inspection request as expanded by the alternative or final perimeter. 17. “Inspection Team” means the group of inspectors and inspection assistants assigned by the Director-General to conduct a particular inspection. 18. “Inspector” means an individual designated by the Technical Secretariat according to the procedures as set forth in Part II, Section A, of this Annex, to carry out an inspection or visit in accordance with this Convention. 19. “Model Agreement” means a document specifying the general form and content for an agreement concluded between a State Party and the Organization for fulfilling the verification provisions specified in this Annex. 20. “Observer” means a representative of a requesting State Party or a third State Party to observe a challenge inspection. 21. “Perimeter” in case of challenge inspection means the external boundary of the inspection site, defined by either geographic coordinates or description on a map: (a) “Requested Perimeter” means the inspection site perimeter as specified in conformity with Part X, paragraph 8, of this Annex; (b) “Alternative Perimeter” means the inspection site perimeter as specified, alternatively to the requested perimeter, by the inspected State Party; it shall conform to the requirements specified in Part X, paragraph 17, of this Annex; (c) “Final Perimeter” means the final inspection site perimeter as agreed in negotiations between the inspection team and the inspected State Party, in accordance with Part X, paragraphs 16 to 21, of this Annex; (d) “Declared Perimeter” means the external boundary of the facility declared pursuant to Articles III, IV, V and VI. 22. “Period of Inspection”, for the purposes of Article IX, means the period of time from provision of access to the inspection team to the inspection site until its departure from the inspection site, exclusive of time spent on briefings before and after the verification activities. 23. “Period of Inspection”, for the purposes of Articles IV, V and VI, means the period of time from arrival of the inspection team at the inspection site until its departure from the inspection site, exclusive of time spent on briefings before and after the verification activities. 24. “Point of Entry”/“Point of Exit” means a location designated for the in-country arrival of inspection teams for inspections pursuant to this Convention or for their departure after completion of their mission. 25. “Requesting State Party” means a State Party which has requested a challenge inspection pursuant to Article IX. 26. “Tonne” means metric ton, i.e., 1,000 kg. ----- PART II GENERAL RULES OF VERIFICATION A. DESIGNATION OF INSPECTORS AND INSPECTION ASSISTANTS 1. Not later than 30 days after entry into force of this Convention the Technical Secretariat shall communicate, in writing, to all States Parties the names, nationalities and ranks of the inspectors and inspection assistants proposed for designation, as well as a description of their qualifications and professional experiences. 2. Each State Party shall immediately acknowledge receipt of the list of inspectors and inspection assistants, proposed for designation communicated to it. The State Party shall inform the Technical Secretariat in writing of its acceptance of each inspector and inspection assistant, not later than 30 days after acknowledgement of receipt of the list. Any inspector and inspection assistant included in this list shall be regarded as designated unless a State Party, not later than 30 days after acknowledgement of receipt of the list, declares its non-acceptance in writing. The State Party may include the reason for the objection. In the case of non-acceptance, the proposed inspector or inspection assistant shall not undertake or participate in verification activities on the territory or in any other place under the jurisdiction or control of the State Party which has declared its non-acceptance. The Technical Secretariat shall, as necessary, submit further proposals in addition to the original list. 3. Verification activities under this Convention shall only be performed by designated inspectors and inspection assistants. 4. Subject to the provisions of paragraph 5, a State Party has the right at any time to object to an inspector or inspection assistant who has already been designated. It shall notify the Technical Secretariat of its objection in writing and may include the reason for the objection. Such objection shall come into effect 30 days after receipt by the Technical Secretariat. The Technical Secretariat shall immediately inform the State Party concerned of the withdrawal of the designation of the inspector or inspection assistant. 5. A State Party that has been notified of an inspection shall not seek to have removed from the inspection team for that inspection any of the designated inspectors or inspection assistants named in the inspection team list. 6. The number of inspectors or inspection assistants accepted by and designated to a State Party must be sufficient to allow for availability and rotation of appropriate numbers of inspectors and inspection assistants. 7. If, in the opinion of the Director-General, the non-acceptance of proposed inspectors or inspection assistants impedes the designation of a sufficient number of inspectors or inspection assistants or otherwise hampers the effective fulfilment of the tasks of the Technical Secretariat, the Director-General shall refer the issue to the Executive Council. 8. Whenever amendments to the above-mentioned lists of inspectors and inspection assistants are necessary or requested, replacement inspectors and inspection assistants shall be designated in the same manner as set forth with respect to the initial list. 9. The members of the inspection team carrying out an inspection of a facility of a State Party located on the territory of another State Party shall be designated in accordance with the procedures set forth in this Annex as applied both to the inspected State Party and the Host State Party. B. PRIVILEGES AND IMMUNITIES 10. Each State Party shall, not later than 30 days after acknowledgment of receipt of the list of inspectors and inspection assistants or of changes thereto, provide multiple entry/exit and/or transit visas and other such documents to enable each inspector or inspection assistant to enter and to remain on the territory of that State Party for the purpose of carrying out inspection activities. These documents shall be valid for at least two years after their provision to the Technical Secretariat. 11. To exercise their functions effectively, inspectors and inspection assistants shall be accorded privileges and immunities as set forth in sub-paragraphs (a) to (i). Privileges and immunities shall be granted to members of the inspection team for the sake of this Convention and not for the personal benefit ----- of the individuals themselves. Such privileges and immunities shall be accorded to them for the entire period between arrival on and departure from the territory of the inspected State Party or Host State, and thereafter with respect to acts previously performed in the exercise of their official functions: (a) The members of the inspection team shall be accorded the inviolability enjoyed by diplomatic agents pursuant to Article 29 of the Vienna Convention on Diplomatic Relations of 18 April, 1961; (b) The living quarters and office premises occupied by the inspection team carrying out inspection activities pursuant to this Convention shall be accorded the inviolability and protection accorded to the premises of diplomatic agents pursuant to Article 30, paragraph 1, of the Vienna Convention on Diplomatic Relations. (c) The papers and correspondence, including records, of the inspection team shall enjoy the inviolability accorded to all papers and correspondence of diplomatic agents pursuant to Article 30, paragraph 2, of the Vienna Convention on Diplomatic Relations. The inspection team shall have the right to use codes for their communications with the Technical Secretariat. (d) Samples and approved equipment carried by members of the inspection team shall be inviolable subject to provisions contained in this Convention and exempt from all customs duties. Hazardous samples shall be transported in accordance with relevant regulations. (e) The members of the inspection team shall be accorded the immunities accorded to diplomatic agents pursuant to Article 31, paragraphs 1, 2 and 3, of the Vienna Convention on Diplomatic Relations. (f) The members of the inspection team carrying out prescribed activities pursuant to this Convention shall be accorded the exemption from dues and taxes accorded to diplomatic agents pursuant to Article 34 of the Vienna Convention on Diplomatic Relations. (g) The members of the inspection team shall be permitted to bring into the territory of the inspected State Party or Host State Party, without payment of any customs duties or related charges, articles for personal use, with the exception of articles the import or export of which is prohibited by law or controlled by quarantine regulations. (h) The members of the inspection team shall be accorded the same currency and exchange facilities as are accorded to representatives of foreign Governments on temporary official missions. (i) The members of the inspection team shall not engage in any professional or commercial activity for personal profit on the territory of the inspected State Party or the Host State. 12. When transiting the territory of non-inspected States Parties, the members of the inspection team shall be accorded the privileges and immunities enjoyed by diplomatic agents pursuant to Article 40, paragraph 1, of the Vienna Convention on Diplomatic Relations. Papers and correspondence, including records, and samples and approved equipment, carried by them, shall be accorded the privileges and immunities set forth in paragraph 11 (c) and (d). 13. Without prejudice to their privileges and immunities the members of the inspection team shall be obliged to respect the laws and regulations of the inspected State Party or Host State and, to the extent that is consistent with the inspection mandate, shall be obliged not to interfere in the internal affairs of that State. If the inspected State Party or Host State Party considers that there has been an abuse of privileges and immunities specified in this Annex, consultations shall be held between the State Party and the Director-General to determine whether such an abuse has occurred and, if so determined, to prevent a repetition of such an abuse. 14. The immunity from jurisdiction of members of the inspection team may be waived by the Director-General in those cases when the Director-General is of the opinion that immunity would impede the course of justice and that it can be waived without prejudice to the implementation of the provisions of this Convention. Waiver must always be express. 15. Observers shall be accorded the same privileges and immunities accorded to inspectors pursuant to this section, except for those accorded pursuant to paragraph 11 (d). ----- C. STANDING ARRANGEMENTS _Points of entry_ 16. Each State Party shall designate the points of entry and shall supply the required information to the Technical Secretariat not later than 30 days after this Convention enters into force for it. These points of entry shall be such that the inspection team can reach any inspection site from at least one point of entry within 12 hours. Locations of points of entry shall be provided to all States Parties by the Technical Secretariat. 17. Each State Party may change the points of entry by giving notice of such change to the Technical Secretariat. Changes shall become effective 30 days after the Technical Secretariat receives such notification to allow appropriate notification to all States Parties. 18. If the Technical Secretariat considers that there are insufficient points of entry for the timely conduct of inspections or that changes to the points of entry proposed by a State Party would hamper such timely conduct of inspections, it shall enter into consultations with the State Party concerned to resolve the problem. 19. In cases where facilities or areas of an inspected State Party are located on the territory of a Host State Party or where the access from the point of entry to the facilities or areas subject to inspection requires transit through the territory of another State Party, the inspected State Party shall exercise the rights and fulfill the obligations concerning such inspections in accordance with this Annex. The Host State Party shall facilitate the inspection of those facilities or areas and shall provide for the necessary support to enable the inspection team to carry out its tasks in a timely and effective manner. States Parties through whose territory transit is required to inspect facilities or areas of an inspected State Party shall facilitate such transit. 20. In cases where facilities or areas of an inspected State Party are located on the territory of a State not Party to this Convention, the inspected State Party shall take all necessary measures to ensure that inspections of those facilities or areas can be carried out in accordance with the provisions of this Annex. A State Party that has one or more facilities or areas on the territory of a State not Party to this Convention shall take all necessary measures to ensure acceptance by the Host State of inspectors and inspection assistants designated to that State Party. If an inspected State Party is unable to ensure access, it shall demonstrate that it took all necessary measures to ensure access. 21. In cases where the facilities or areas sought to be inspected are located on the territory of a State Party, but in a place under the jurisdiction or control of a State not Party to this Convention, the State Party shall take all necessary measures as would be required of an inspected State Party and a Host State Party to ensure that inspections of such facilities or areas can be carried out in accordance with the provisions of this Annex. If the State Party is unable to ensure access to those facilities or areas, it shall demonstrate that it took all necessary measures to ensure access. This paragraph shall not apply where the facilities or areas sought to be inspected are those of the State Party. _Arrangements for use of non-scheduled aircraft_ 22. For inspections pursuant to Article IX and for other inspections where timely travel is not feasible using scheduled commercial transport, an inspection team may need to utilize aircraft owned or chartered by the Technical Secretariat. Not later than 30 days after this Convention enters into force for it, each State Party shall inform the Technical Secretariat of the standing diplomatic clearance number for non-scheduled aircraft transporting inspection teams and equipment necessary for inspection into and out of the territory in which an inspection site is located. Aircraft routings to and from the designated point of entry shall be along established international airways that are agreed upon between the States Parties and the Technical Secretariat as the basis for such diplomatic clearance. 23. When a non-scheduled aircraft is used, the Technical Secretariat shall provide the inspected State Party with a flight plan, through the National Authority, for the aircraft’s flight from the last airfield prior to entering the airspace of the State in which the inspection site is located to the point of entry, not less than six hours before the scheduled departure time from that airfield. Such a plan shall be filed in accordance with the procedures of the International Civil Aviation Organization applicable to civil aircraft. For its owned or chartered flights, the Technical Secretariat shall include in the remarks section of each flight plan the standing diplomatic clearance number and the appropriate notation identifying the aircraft as an inspection aircraft. ----- 24. Not less than three hours before the scheduled departure of the inspection team from the last airfield prior to entering the airspace of the State in which the inspection is to take place, the inspected State Party or Host State Party shall ensure that the flight plan filed in accordance with paragraph 23 is approved so that the inspection team may arrive at the point of entry by the estimated arrival time. 25. The inspected State Party shall provide parking, security protection, servicing and fuel as required by the Technical Secretariat for the aircraft of the inspection team at the point of entry when such aircraft is owned or chartered by the Technical Secretariat. Such aircraft shall not be liable for landing fees, departure tax, and similar charges. The Technical Secretariat shall bear the cost of such fuel, security protection and servicing. _Administrative arrangements_ 26. The inspected State Party shall provide or arrange for the amenities necessary for the inspection team such as communication means, interpretation services to the extent necessary for the performance of interviewing and other tasks, transportation, working space, lodging, meals and medical care. In this regard, the inspected State Party shall be reimbursed by the Organization for such costs incurred by the inspection team. _Approved equipment_ 27. Subject to paragraph 29, there shall be no restriction by the inspected State Party on the inspection team bringing onto the inspection site such equipment, approved in accordance with paragraph 28, which the Technical Secretariat has determined to be necessary to fulfil the inspection requirements. The Technical Secretariat shall prepare and, as appropriate, update a list of approved equipment, which may be needed for the purposes described above, and regulations governing such equipment which shall be in accordance with this Annex. In establishing the list of approved equipment and these regulations, the Technical Secretariat shall ensure that safety considerations for all the types of facilities at which such equipment is likely to be used, are taken fully into account. A list of approved equipment shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i). 28. The equipment shall be in the custody of the Technical Secretariat and be designated, calibrated and approved by the Technical Secretariat. The Technical Secretariat shall, to the extent possible, select that equipment which is specifically designed for the specific kind of inspection required. Designated and approved equipment shall be specifically protected against unauthorized alteration. 29. The inspected State Party shall have the right, without prejudice to the prescribed time-frames, to inspect the equipment in the presence of inspection team members at the point of entry, i.e., to check the identity of the equipment brought in or removed from the territory of the inspected State Party or the Host State. To facilitate such identification, the Technical Secretariat shall attach documents and devices to authenticate its designation and approval of the equipment. The inspection of the equipment shall also ascertain to the satisfaction of the inspected State Party that the equipment meets the description of the approved equipment for the particular type of inspection. The inspected State Party may exclude equipment not meeting that description or equipment without the above-mentioned authentication documents and devices. Procedures for the inspection of equipment shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i). 30. In cases where the inspection team finds it necessary to use equipment available on site not belonging to the Technical Secretariat and requests the inspected State Party to enable the team to use such equipment, the inspected State Party shall comply with the request to the extent it can. D. PRE-INSPECTION ACTIVITIES _Notification_ 31. The Director-General shall notify the State Party before the planned arrival of the inspection team at the point of entry and within the prescribed time-frames, where specified, of its intention to carry out an inspection. 32. Notifications made by the Director-General shall include the following information: (a) The type of inspection; (b) The point of entry; (c) The date and estimated time of arrival at the point of entry; ----- (d) The means of arrival at the point of entry; (e) The site to be inspected; (f) The names of inspectors and inspection assistants; (g) If appropriate, aircraft clearance for special flights. 33. The inspected State Party shall acknowledge the receipt of a notification by the Technical Secretariat of an intention to conduct an inspection, not later than one hour after receipt of such notification. 34. In the case of an inspection of a facility of a State Party located on the territory of another State Party, both States Parties shall be simultaneously notified in accordance with paragraphs 31 and 32. _Entry into the territory of the inspected State Party or Host State and transfer_ _to the inspection site_ 35. The inspected State Party or Host State Party which has been notified of the arrival of an inspection team, shall ensure its immediate entry into the territory and shall through an in-country escort or by other means do everything in its power to ensure the safe conduct of the inspection team and its equipment and supplies, from its point of entry to the inspection site(s) and to a point of exit. 36. The inspected State Party or Host State Party shall, as necessary, assist the inspection team in reaching the inspection site not later than 12 hours after the arrival at the point of entry. _Pre-inspection briefing_ 37. Upon arrival at the inspection site and before the commencement of the inspection, the inspection team shall be briefed by facility representatives, with the aid of maps and other documentation as appropriate, on the facility, the activities carried out there, safety measures and administrative and logistic arrangements necessary for the inspection. The time spent for the briefing shall be limited to the minimum necessary and in any event not exceed three hours. E. CONDUCT OF INSPECTIONS _General rules_ 38. The members of the inspection team shall discharge their functions in accordance with the provisions of this Convention, as well as rules established by the Director-General and facility agreements concluded between States Parties and the Organization. 39. The inspection team shall strictly observe the inspection mandate issued by the Director-General. It shall refrain from activities going beyond this mandate. 40. The activities of the inspection team shall be so arranged as to ensure the timely and effective discharge of its functions and the least possible inconvenience to the inspected State Party or Host State and disturbance to the facility or area inspected. The inspection team shall avoid unnecessarily hampering or delaying the operation of a facility and avoid affecting its safety. In particular, the inspection team shall not operate any facility. If inspectors consider that, to fulfil their mandate, particular operations should be carried out in a facility, they shall request the designated representative of the inspected facility to have them performed. The representative shall carry out the request to the extent possible. 41. In the performance of their duties on the territory of an inspected State Party or Host State, the members of the inspection team shall, if the inspected State Party so requests, be accompanied by representatives of the inspected State Party, but the inspection team must not thereby be delayed or otherwise hindered in the exercise of its functions. 42. Detailed procedures for the conduct of inspections shall be developed for inclusion in the inspection manual by the Technical Secretariat, taking into account guidelines to be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i). _Safety_ 43. In carrying out their activities, inspectors and inspection assistants shall observe safety regulations established at the inspection site, including those for the protection of controlled environments within a facility and for personal safety. In order to implement these requirements, appropriate detailed procedures shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). ----- _Communications_ 44. Inspectors shall have the right throughout the in-country period to communicate with the Headquarters of the Technical Secretariat. For this purpose they may use their own, duly certified, approved equipment and may request that the inspected State Party or Host State Party provide them with access to other telecommunications. The inspection team shall have the right to use its own two-way system of radio communications between personnel patrolling the perimeter and other members of the inspection team. _Inspection team and inspected State Party rights_ 45. The inspection team shall, in accordance with the relevant Articles and Annexes of this Convention as well as with facility agreements and procedures set forth in the inspection manual, have the right to unimpeded access to the inspection site. The items to be inspected will be chosen by the inspectors. 46. Inspectors shall have the right to interview any facility personnel in the presence of representatives of the inspected State Party with the purpose of establishing relevant facts. Inspectors shall only request information and data which are necessary for the conduct of the inspection, and the inspected State Party shall furnish such information upon request. The inspected State Party shall have the right to object to questions posed to the facility personnel if those questions are deemed not relevant to the inspection. If the head of the inspection team objects and states their relevance, the questions shall be provided in writing to the inspected State Party for reply. The inspection team may note any refusal to permit interviews or to allow questions to be answered and any explanations given, in that part of the inspection report that deals with the cooperation of the inspected State Party. 47. Inspectors shall have the right to inspect documentation and records they deem relevant to the conduct of their mission. 48. Inspectors shall have the right to have photographs taken at their request by representatives of the inspected State Party or of the inspected facility. The capability to take instant development photographic prints shall be available. The inspection team shall determine whether photographs conform to those requested and, if not, repeat photographs shall be taken. The inspection team and the inspected State Party shall each retain one copy of every photograph. 49. The representatives of the inspected State Party shall have the right to observe all verification activities carried out by the inspection team. 50. The inspected State Party shall receive copies, at its request, of the information and data gathered about its facility(ies) by the Technical Secretariat. 51. Inspectors shall have the right to request clarifications in connection with ambiguities that arise during an inspection. Such requests shall be made promptly through the representative of the inspected State Party. The representative of the inspected State Party shall provide the inspection team, during the inspection, with such clarification as may be necessary to remove the ambiguity. If questions relating to an object or a building located within the inspection site are not resolved, the object or building shall, if requested, be photographed for the purpose of clarifying its nature and function. If the ambiguity cannot be removed during the inspection, the inspectors shall notify the Technical Secretariat immediately. The inspectors shall include in the inspection report any such unresolved question, relevant clarifications, and a copy of any photographs taken. _Collection, handling and analysis of samples_ 52. Representatives of the inspected State Party or of the inspected facility shall take samples at the request of the inspection team in the presence of inspectors. If so agreed in advance with the representatives of the inspected State Party or of the inspected facility, the inspection team may take samples itself. 53. Where possible, the analysis of samples shall be performed on-site. The inspection team shall have the right to perform on-site analysis of samples using approved equipment brought by it. At the request of the inspection team, the inspected State Party shall, in accordance with agreed procedures, provide assistance for the analysis of samples on-site. Alternatively, the inspection team may request that appropriate analysis on-site be performed in its presence. ----- 54. The inspected State Party has the right to retain portions of all samples taken or take duplicate samples and be present when samples are analysed on-site. 55. The inspection team shall, if it deems it necessary, transfer samples for analysis off-site at laboratories designated by the Organization. 56. The Director-General shall have the primary responsibility for the security, integrity and preservation of samples and for ensuring that the confidentiality of samples transferred for analysis off-site is protected. The Director-General shall do so in accordance with procedures, to be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i), for inclusion in the inspection manual. He shall: (a) Establish a stringent regime governing the collection, handling, transport and analysis of samples; (b) Certify the laboratories designated to perform different types of analysis; (c) Oversee the standardization of equipment and procedures at these designated laboratories, mobile analytical equipment and procedures, and monitor quality control and overall standards in relation to the certification of these laboratories, mobile equipment and procedures; and (d) Select from among the designated laboratories those which shall perform analytical or other functions in relation to specific investigations. 57. When off-site analysis is to be performed, samples shall be analysed in at least two designated laboratories. The Technical Secretariat shall ensure the expeditious processing of the analysis. The samples shall be accounted for by the Technical Secretariat and any unused samples or portions thereof shall be returned to the Technical Secretariat. 58. The Technical Secretariat shall compile the results of the laboratory analysis of samples relevant to compliance with this Convention and include them in the final inspection report. The Technical Secretariat shall include in the report detailed information concerning the equipment and methodology employed by the designated laboratories. _Extension of inspection duration_ 59. Periods of inspection may be extended by agreement with the representative of the inspected State Party. _Debriefing_ 60. Upon completion of an inspection the inspection team shall meet with representatives of the inspected State Party and the personnel responsible for the inspection site to review the preliminary findings of the inspection team and to clarify any ambiguities. The inspection team shall provide to the representatives of the inspected State Party its preliminary findings in written form according to a standardized format, together with a list of any samples and copies of written information and data gathered and other material to be taken off-site. The document shall be signed by the head of the inspection team. In order to indicate that he has taken notice of the contents of the document, the representative of the inspected State Party shall countersign the document. This meeting shall be completed not later than 24 hours after the completion of the inspection. F. DEPARTURE 61. Upon completion of the post-inspection procedures, the inspection team shall leave, as soon as possible, the territory of the inspected State Party or the Host State. G. REPORTS 62. Not later than 10 days after the inspection, the inspectors shall prepare a factual, final report on the activities conducted by them and on their findings. It shall only contain facts relevant to compliance with this Convention, as provided for under the inspection mandate. The report shall also provide information as to the manner in which the State Party inspected cooperated with the inspection team. Differing observations made by inspectors may be attached to the report. The report shall be kept confidential. 63. The final report shall immediately be submitted to the inspected State Party. Any written comments, which the inspected State Party may immediately make on its findings shall be annexed to it. ----- The final report together with annexed comments made by the inspected State Party shall be submitted to the Director-General not later than 30 days after the inspection. 64. Should the report contain uncertainties, or should cooperation between the National Authority and the inspectors not measure up to the standards required, the Director-General shall approach the State Party for clarification. 65. If the uncertainties cannot be removed or the facts established are of a nature to suggest that obligations undertaken under this Convention have not been met, the Director-General shall inform the Executive Council without delay. H. APPLICATION OF GENERAL PROVISIONS 66. The provisions of this Part shall apply to all inspections conducted pursuant to this Convention, except where the provisions of this Part differ from the provisions set forth for specific types of inspections in Parts III to XI of this Annex, in which case the latter provisions shall take precedence. ----- PART III GENERAL PROVISIONS FOR VERIFICATION MEASURES PURSUANT TO ARTICLES IV, V AND VI, PARAGRAPH 3 A. INITIAL INSPECTIONS AND FACILITY AGREEMENTS 1. Each declared facility subject to on-site inspection pursuant to Articles IV, V, and VI, paragraph 3, shall receive an initial inspection promptly after the facility is declared. The purpose of this inspection of the facility shall be to verify information provided and to obtain any additional information needed for planning future verification activities at the facility, including on-site inspections and continuous monitoring with on-site instruments, and to work on the facility agreements. 2. States Parties shall ensure that the verification of declarations and the initiation of the systematic verification measures can be accomplished by the Technical Secretariat at all facilities within the established time-frames after this Convention enters into force for them. 3. Each State Party shall conclude a facility agreement with the Organization for each facility declared and subject to on-site inspection pursuant to Articles IV, V, and VI, paragraph 3. 4. Facility agreements shall be completed not later than 180 days after this Convention enters into force for the State Party or after the facility has been declared for the first time, except for a chemical weapons destruction facility to which paragraphs 5 to 7 shall apply. 5. In the case of a chemical weapons destruction facility that begins operations more than one year after this Convention enters into force for the State Party, the facility agreement shall be completed not less than 180 days before the facility begins operation. 6. In the case of a chemical weapons destruction facility that is in operation when this Convention enters into force for the State Party, or begins operation not later than one year thereafter, the facility agreement shall be completed not later than 210 days after this Convention enters into force for the State Party, except that the Executive Council may decide that transitional verification arrangements, approved in accordance with Part IV(A), paragraph 51, of this Annex and including a transitional facility agreement, provisions for verification through on-site inspection and monitoring with on-site instruments, and the time-frame for application of the arrangements, are sufficient. 7. In the case of a facility, referred to in paragraph 6, that will cease operations not later than two years after this Convention enters into force for the State Party, the Executive Council may decide that transitional verification arrangements, approved in accordance with Part IV(A), paragraph 51, of this Annex and including a transitional facility agreement, provisions for verification through on-site inspection and monitoring with on-site instruments, and the time-frame for application of the arrangements, are sufficient. 8. Facility agreements shall be based on models for such agreements and provide for detailed arrangements which shall govern inspections at each facility. The model agreements shall include provisions to take into account future technological developments and shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i). 9. The Technical Secretariat may retain at each site a sealed container for photographs, plans and other information that it may wish to refer to in the course of subsequent inspections. B. STANDING ARRANGEMENTS 10. Where applicable, the Technical Secretariat shall have the right to have continuous monitoring instruments and systems and seals installed and to use them, in conformity with the relevant provisions in this Convention and the facility agreements between States Parties and the Organization. 11. The inspected State Party shall, in accordance with agreed procedures, have the right to inspect any instrument used or installed by the inspection team and to have it tested in the presence of representatives of the inspected State Party. The inspection team shall have the right to use the instruments that were installed by the inspected State Party for its own monitoring of the technological process of the destruction of chemical weapons. To this end, the inspection team shall have the right to inspect those instruments that it intends to use for purposes of verification of the destruction of chemical weapons and to have them tested in its presence. ----- 12. The inspected State Party shall provide the necessary preparation and support for the establishment of continuous monitoring instruments and systems. 13. In order to implement paragraphs 11 and 12, appropriate detailed procedures shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i). 14. The inspected State Party shall immediately notify the Technical Secretariat if an event occurs or may occur at a facility where monitoring instruments are installed, which may have an impact on the monitoring system. The inspected State Party shall coordinate subsequent actions with the Technical Secretariat with a view to restoring the operation of the monitoring system and establishing interim measures, if necessary, as soon as possible. 15. The inspection team shall verify during each inspection that the monitoring system functions correctly and that emplaced seals have not been tampered with. In addition, visits to service the monitoring system may be required to perform any necessary maintenance or replacement of equipment, or to adjust the coverage of the monitoring system as required. 16. If the monitoring system indicates any anomaly, the Technical Secretariat shall immediately take action to determine whether this resulted from equipment malfunction or activities at the facility. If, after this examination, the problem remains unresolved, the Technical Secretariat shall immediately ascertain the actual situation, including through immediate on-site inspection of, or visit to, the facility if necessary. The Technical Secretariat shall report any such problem immediately after its detection to the inspected State Party which shall assist in its resolution. C. PRE-INSPECTION ACTIVITIES 17. The inspected State Party shall, except as specified in paragraph 18, be notified of inspections not less than 24 hours in advance of the planned arrival of the inspection team at the point of entry. 18. The inspected State Party shall be notified of initial inspections not less than 72 hours in advance of the estimated time of arrival of the inspection team at the point of entry. ----- PART IV(A) DESTRUCTION OF CHEMICAL WEAPONS AND ITS VERIFICATION PURSUANT TO ARTICLE IV A. DECLARATIONS _Chemical weapons_ 1. The declaration of chemical weapons by a State Party pursuant to Article III, paragraph 1 (a) (ii), shall include the following: (a) The aggregate quantity of each chemical declared; (b) The precise location of each chemical weapons storage facility, expressed by: (i) Name; (ii) Geographical coordinates; and (iii) A detailed site diagram, including a boundary map and the location of bunkers/storage areas within the facility; (c) The detailed inventory for each chemical weapons storage facility including: (i) Chemicals defined as chemical weapons in accordance with Article II; (ii) Unfilled munitions, sub-munitions, devices and equipment defined as chemical weapons; (iii) Equipment specially designed for use directly in connection with the employment of munitions, sub-munitions, devices or equipment specified in sub-paragraph (ii); (iv) Chemicals specifically designed for use directly in connection with the employment of munitions, sub-munitions, devices or equipment specified in sub-paragraph (ii). 2. For the declaration of chemicals referred to in paragraph 1 (c) (i) the following shall apply: (a) Chemicals shall be declared in accordance with the Schedules specified in the Annex on Chemicals; (b) For a chemical not listed in the Schedules in the Annex on Chemicals the information required for possible assignment of the chemical to the appropriate Schedule shall be provided, including the toxicity of the pure compound. For a precursor, the toxicity and identity of the principal final reaction product(s) shall be provided; (c) Chemicals shall be identified by chemical name in accordance with current International Union of Pure and Applied Chemistry (IUPAC) nomenclature, structural formula and Chemical Abstracts Service registry number, if assigned. For a precursor, the toxicity and identity of the principal final reaction product(s) shall be provided; (d) In cases involving mixtures of two or more chemicals, each chemical shall be identified and the percentage of each shall be provided, and the mixture shall be declared under the category of the most toxic chemical. If a component of a binary chemical weapon consists of a mixture of two or more chemicals, each chemical shall be identified and the percentage of each provided; (e) Binary chemical weapons shall be declared under the relevant end product within the framework of the categories of chemical weapons referred to in paragraph 16. The following supplementary information shall be provided for each type of binary chemical munition, device: (i) The chemical name of the toxic end-product; (ii) The chemical composition and quantity of each component; (iii) The actual weight ratio between the components; (iv) Which component is considered the key component; (v) The projected quantity of the toxic end-product calculated on a stoichiometric basis from the key component, assuming 100 per cent. yield. A declared quantity (in tonnes) of the key component intended for a specific toxic end-product shall be considered equivalent to the ----- quantity (in tonnes) of this toxic end-product calculated on a stoichiometric basis assuming 100 per cent. yield; (f) For multicomponent chemical weapons, the declaration shall be analogous to that envisaged for binary chemical weapons; (g) For each chemical the form of storage, i.e., munitions, sub-munitions, devices, equipment or bulk containers and other containers shall be declared. For each form of storage the following shall be listed: (i) Type; (ii) Size or calibre; (iii) Number of items; and (iv) Nominal weight of chemical fill per item; (h) For each chemical the total weight present at the storage facility shall be declared; (i) In addition, for chemicals stored in bulk, the percentage purity shall be declared, if known. 3. For each type of unfilled munitions, sub-munitions, devices or equipment, referred to in paragraph 1 (c) (ii), the information shall include: (a) The number of items; (b) The nominal fill volume per item; (c) The intended chemical fill. _Declarations of chemical weapons pursuant to Article III, paragraph 1 (a)_ (iii) 4. The declaration of chemical weapons pursuant to Article III, paragraph 1 (a) (iii), shall contain all information specified in paragraphs 1 to 3 above. It is the responsibility of the State Party on whose territory the chemical weapons are located to make appropriate arrangements with the other State to ensure that the declarations are made. If the State Party on whose territory the chemical weapons are located is not able to fulfil its obligations under this paragraph, it shall state the reasons therefor. _Declarations of past transfers and receipts_ 5. A State Party that has transferred or received chemical weapons since 1 January 1946 shall declare these transfers or receipts pursuant to Article III, paragraph 1 (a) (iv), provided the amount transferred or received exceeded 1 tonne per chemical per year in bulk and/or munition form. This declaration shall be made according to the inventory format specified in paragraphs 1 and 2. This declaration shall also indicate the supplier and recipient countries, the dates of the transfers or receipts and, as precisely as possible, the current location of the transferred items. When not all the specified information is available for transfers or receipts of chemical weapons for the period between 1 January 1946 and 1 January 1970, the State Party shall declare whatever information is still available to it and provide an explanation as to why it cannot submit a full declaration. _Submission of the general plan for destruction of chemical weapons_ 6. The general plan for destruction of chemical weapons submitted pursuant to Article III, paragraph 1 (a) (v), shall provide an overview of the entire national chemical weapons destruction programme of the State Party and information on the efforts of the State Party to fulfil the destruction requirements contained in this Convention. The plan shall specify: (a) A general schedule for destruction, giving types and approximate quantities of chemical weapons planned to be destroyed in each annual destruction period for each existing chemical weapons destruction facility and, if possible, for each planned chemical weapons destruction facility; (b) The number of chemical weapons destruction facilities existing or planned to be operated over the destruction period; (c) For each existing or planned chemical weapons destruction facility: (i) Name and location; and ----- (ii) The types and approximate quantities of chemical weapons, and the type (for example, nerve agent or blister agent) and approximate quantity of chemical fill, to be destroyed; (d) The plans and programmes for training personnel for the operation of destruction facilities; (e) The national standards for safety and emissions that the destruction facilities must satisfy; (f) Information on the development of new methods for destruction of chemical weapons and on the improvement of existing methods; (g) The cost estimates for destroying the chemical weapons; and (h) Any issues which could adversely impact on the national destruction programme. B. MEASURES TO SECURE THE STORAGE FACILITY AND STORAGE FACILITY PREPARATION 7. Not later than when submitting its declaration of chemical weapons, a State Party shall take such measures as it considers appropriate to secure its storage facilities and shall prevent any movement of its chemical weapons out of the facilities, except their removal for destruction. 8. A State Party shall ensure that chemical weapons at its storage facilities are configured to allow ready access for verification in accordance with paragraphs 37 to 49. 9. While a storage facility remains closed for any movement of chemical weapons out of the facility other than their removal for destruction, a State Party may continue at the facility standard maintenance activities, including standard maintenance of chemical weapons; safety monitoring and physical security activities; and preparation of chemical weapons for destruction. 10. Maintenance activities of chemical weapons shall not include: (a) Replacement of agent or of munition bodies; (b) Modification of the original characteristics of munitions, or parts or components thereof. 11. All maintenance activities shall be subject to monitoring by the Technical Secretariat. C. DESTRUCTION _Principles and methods for destruction of chemical weapons_ 12. “Destruction of chemical weapons” means a process by which chemicals are converted in an essentially irreversible way to a form unsuitable for production of chemical weapons, and which in an irreversible manner renders munitions and other devices unusable as such. 13. Each State Party shall determine how it shall destroy chemical weapons, except that the following processes may not be used: dumping in any body of water, land burial or open-pit burning. It shall destroy chemical weapons only at specifically designated and appropriately designed and equipped facilities. 14. Each State Party shall ensure that its chemical weapons destruction facilities are constructed and operated in a manner to ensure the destruction of the chemical weapons; and that the destruction process can be verified under the provisions of this Convention. _Order of destruction_ 15. The order of destruction of chemical weapons is based on the obligations specified in Article I and the other Articles, including obligations regarding systematic on-site verification. It takes into account interests of States Parties for undiminished security during the destruction period; confidencebuilding in the early part of the destruction stage; gradual acquisition of experience in the course of destroying chemical weapons; and applicability irrespective of the actual composition of the stockpiles and the methods chosen for the destruction of the chemical weapons. The order of destruction is based on the principle of levelling out. 16. For the purpose of destruction, chemical weapons declared by each State Party shall be divided into three categories: Category 1: Chemical weapons on the basis of Schedule 1 chemicals and their parts and components; ----- Category 2: Chemical weapons on the basis of all other chemicals and their parts and components; Category 3: Unfilled munitions and devices, and equipment specifically designed for use directly in connection with employment of chemical weapons. 17. A State Party shall start: (a) The destruction of Category 1 chemical weapons not later than two years after this Convention enters into force for it, and shall complete the destruction not later than 10 years after entry into force of this Convention. A State Party shall destroy chemical weapons in accordance with the following destruction deadlines: (i) Phase 1: Not later than two years after entry into force of this Convention, testing of its first destruction facility shall be completed. Not less than 1 per cent. of the Category 1 chemical weapons shall be destroyed not later than three years after the entry into force of this Convention; (ii) Phase 2: Not less than 20 per cent. of the Category 1 chemical weapons shall be destroyed not later than five years after the entry into force of this Convention; (iii) Phase 3: Not less than 45 per cent. of the Category 1 chemical weapons shall be destroyed not later than seven years after the entry into force of this Convention; (iv) Phase 4: All Category 1 chemical weapons shall be destroyed not later than 10 years after the entry into force of this Convention; (b) The destruction of Category 2 chemical weapons not later than one year after this Convention enters into force for it and shall complete the destruction not later than five years after the entry into force of this Convention. Category 2 chemical weapons shall be destroyed in equal annual increments throughout the destruction period. The comparison factor for such weapons is the weight of the chemicals within Category 2; and (c) The destruction of Category 3 chemical weapons not later than one year after this Convention enters into force for it, and shall complete the destruction not later than five years after the entry into force of this Convention. Category 3 chemical weapons shall be destroyed in equal annual increments throughout the destruction period. The comparison factor for unfilled munitions and devices is expressed in nominal fill volume (m3) and for equipment in number of items. 18. For the destruction of binary chemical weapons the following shall apply: (a) For the purposes of the order of destruction, a declared quantity (in tonnes) of the key component intended for a specific toxic end-product shall be considered equivalent to the quantity (in tonnes) of this toxic end-product calculated on a stoichiometric basis assuming 100 per cent. yield; (b) A requirement to destroy a given quantity of the key component shall entail a requirement to destroy a corresponding quantity of the other component, calculated from the actual weight ratio of the components in the relevant type of binary chemical munition device; (c) If more of the other component is declared than is needed, based on the actual weight ratio between components, the excess shall be destroyed over the first two years after destruction operations begin; (d) At the end of each subsequent operational year a State Party may retain an amount of the other declared component that is determined on the basis of the actual weight ratio of the components in the relevant type of binary chemical munition device. 19. For multicomponent chemical weapons the order of destruction shall be analogous to that envisaged for binary chemical weapons. _Modification of intermediate destruction deadlines_ 20. The Executive Council shall review the general plans for destruction of chemical weapons, submitted pursuant to Article III, paragraph 1 (a) (v), and in accordance with paragraph 6, inter alia, to assess their conformity with the order of destruction set forth in paragraphs 15 to 19. The Executive Council shall consult with any State Party whose plan does not conform, with the objective of bringing the plan into conformity. ----- 21. If a State Party, due to exceptional circumstances beyond its control, believes that it cannot achieve the level of destruction specified for Phase 1, Phase 2 or Phase 3 of the order of destruction of Category 1 chemical weapons, it may propose changes in those levels. Such a proposal must be made not later than 120 days after the entry into force of this Convention and shall contain a detailed explanation of the reasons for the proposal. 22. Each State Party shall take all necessary measures to ensure destruction of Category 1 chemical weapons in accordance with the destruction deadlines set forth in paragraph 17(a) as changed pursuant to paragraph 21. However, if a State Party believes that it will be unable to ensure the destruction of the percentage of Category 1 chemical weapons required by an intermediate destruction deadline, it may request the Executive Council to recommend to the Conference to grant an extension of its obligation to meet that deadline. Such a request must be made not less than 180 days before the intermediate destruction deadline and shall contain a detailed explanation of the reasons for the request and the plans of the State Party for ensuring that it will be able to fulfil its obligation to meet the next intermediate destruction deadline. 23. If an extension is granted, the State Party shall still be under the obligation to meet the cumulative destruction requirements set forth for the next destruction deadline. Extensions granted pursuant to this section shall not, in any way, modify the obligation of the State Party to destroy all Category 1 chemical weapons not later than 10 years after the entry into force of this Convention. _Extension of the deadline for completion of destruction_ 24. If a State Party believes that it will be unable to ensure the destruction of all Category 1 chemical weapons not later than 10 years after the entry into force of this Convention, it may submit a request to the Executive Council for an extension of the deadline for completing the destruction of such chemical weapons. Such a request must be made not later than nine years after the entry into force of this Convention. 25. The request shall contain: (a) The duration of the proposed extension; (b) A detailed explanation of the reasons for the proposed extension; and (c) A detailed plan for destruction during the proposed extension and the remaining portion of the original 10-year period for destruction. 26. A decision on the request shall be taken by the Conference at its next session, on the recommendation of the Executive Council. Any extension shall be the minimum necessary, but in no case shall the deadline for a State Party to complete its destruction of all chemical weapons be extended beyond 15 years after the entry into force of this Convention. The Executive Council shall set conditions for the granting of the extension, including the specific verification measures deemed necessary as well as specific actions to be taken by the State Party to overcome problems in its destruction programme. Costs of verification during the extension period shall be allocated in accordance with Article IV, paragraph 16. 27. If an extension is granted, the State Party shall take appropriate measures to meet all subsequent deadlines. 28. The State Party shall continue to submit detailed annual plans for destruction in accordance with paragraph 29 and annual reports on the destruction of Category 1 chemical weapons in accordance with paragraph 36, until all Category 1 chemical weapons are destroyed. In addition, not later than at the end of each 90 days of the extension period, the State Party shall report to the Executive Council on its destruction activity. The Executive Council shall review progress towards completion of destruction and take the necessary measures to document this progress. All information concerning the destruction activities during the extension period shall be provided by the Executive Council to States Parties, upon request. _Detailed annual plans for destruction_ 29. The detailed annual plans for destruction shall be submitted to the Technical Secretariat not less than 60 days before each annual destruction period begins pursuant to Article IV, paragraph 7(a), and shall specify: (a) The quantity of each specific type of chemical weapon to be destroyed at each destruction facility and the inclusive dates when the destruction of each specific type of chemical weapon will be accomplished; ----- (b) The detailed site diagram for each chemical weapons destruction facility and any changes to previously submitted diagrams; and (c) The detailed schedule of activities for each chemical weapons destruction facility for the upcoming year, identifying time required for design, construction or modification of the facility, installation of equipment, equipment check-out and operator training, destruction operations for each specific type of chemical weapon, and scheduled periods of inactivity. 30. A State Party shall provide, for each of its chemical weapons destruction facilities, detailed facility information to assist the Technical Secretariat in developing preliminary inspection procedures for use at the facility. 31. The detailed facility information for each destruction facility shall include the following information: (a) Name, address and location; (b) Detailed, annotated facility drawings; (c) Facility design drawings, process drawings, and piping and instrumentation design drawings; (d) Detailed technical descriptions, including design drawings and instrument specifications, for the equipment required for: removing the chemical fill from the munitions, devices, and containers; temporarily storing the drained chemical fill; destroying the chemical agent; and destroying the munitions, devices, and containers; (e) Detailed technical descriptions of the destruction process, including material flow rates, temperatures and pressures, and designed destruction efficiency; (f) Design capacity for each specific type of chemical weapon; (g) A detailed description of the products of destruction and the method of their ultimate disposal; (h) A detailed technical description of measures to facilitate inspections in accordance with this Convention; (i) A detailed description of any temporary holding area at the destruction facility that will be used to provide chemical weapons directly to the destruction facility, including site and facility drawings and information on the storage capacity for each specific type of chemical weapon to be destroyed at the facility; (j) A detailed description of the safety and medical measures in force at the facility; (k) A detailed description of the living quarters and working premises for the inspectors; and (l) Suggested measures for international verification. 32. A State Party shall provide, for each of its chemical weapons destruction facilities, the plant operations manuals, the safety and medical plans, the laboratory operations and quality assurance and control manuals, and the environmental permits that have been obtained, except that this shall not include material previously provided. 33. A State Party shall promptly notify the Technical Secretariat of any developments that could affect inspection activities at its destruction facilities. 34. Deadlines for submission of the information specified in paragraphs 30 to 32 shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). 35. After a review of the detailed facility information for each destruction facility, the Technical Secretariat, if the need arises, shall enter into consultation with the State Party concerned in order to ensure that its chemical weapons destruction facilities are designed to assure the destruction of chemical weapons, to allow advanced planning on how verification measures may be applied and to ensure that the application of verification measures is consistent with proper facility operation, and that the facility operation allows appropriate verification. ----- _Annual reports on destruction_ 36. Information regarding the implementation of plans for destruction of chemical weapons shall be submitted to the Technical Secretariat pursuant to Article IV, paragraph 7(b), not later than 60 days after the end of each annual destruction period and shall specify the actual amounts of chemical weapons which were destroyed during the previous year at each destruction facility. If appropriate, reasons for not meeting destruction goals should be stated. D. VERIFICATION _Verification of declarations of chemical weapons through on-site inspection_ 37. The purpose of the verification of declarations of chemical weapons shall be to confirm through on-site inspection the accuracy of the relevant declarations made pursuant to Article III. 38. The inspectors shall conduct this verification promptly after a declaration is submitted. They shall, _inter alia, verify the quantity and identity of chemicals, types and number of munitions, devices and other_ equipment. 39. The inspectors shall employ, as appropriate, agreed seals, markers or other inventory control procedures to facilitate an accurate inventory of the chemical weapons at each storage facility. 40. As the inventory progresses, inspectors shall install such agreed seals as may be necessary to clearly indicate if any stocks are removed, and to ensure the securing of the storage facility during the inventory. After completion of the inventory, such seals will be removed unless otherwise agreed. _Systematic verification of storage facilities_ 41. The purpose of the systematic verification of storage facilities shall be to ensure that no undetected removal of chemical weapons from such facilities takes place. 42. The systematic verification shall be initiated as soon as possible after the declaration of chemical weapons is submitted and shall continue until all chemical weapons have been removed from the storage facility. It shall in accordance with the facility agreement, combine on-site inspection and monitoring with on-site instruments. 43. When all chemical weapons have been removed from the storage facility, the Technical Secretariat shall confirm the declaration of the State Party to that effect. After this confirmation, the Technical Secretariat shall terminate the systematic verification of the storage facility and shall promptly remove any monitoring instruments installed by the inspectors. _Inspections and visits_ 44. The particular storage facility to be inspected shall be chosen by the Technical Secretariat in such a way as to preclude the prediction of precisely when the facility is to be inspected. The guidelines for determining the frequency of systematic on-site inspections shall be elaborated by the Technical Secretariat, taking into account the recommendations to be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). 45. The Technical Secretariat shall notify the inspected State Party of its decision to inspect or visit the storage facility 48 hours before the planned arrival of the inspection team at the facility for systematic inspections or visits. In cases of inspections or visits to resolve urgent problems, this period may be shortened. The Technical Secretariat shall specify the purpose of the inspection or visit. 46. The inspected State Party shall make any necessary preparations for the arrival of the inspectors and shall ensure their expeditious transportation from their point of entry to the storage facility. The facility agreement will specify administrative arrangements for inspectors. 47. The inspected State Party shall provide the inspection team upon its arrival at the chemical weapons storage facility to carry out an inspection, with the following data on the facility: (a) The number of storage buildings and storage locations; (b) For each storage building and storage location, the type and the identification number or designation, shown on the site diagram; and ----- (c) For each storage building and storage location at the facility, the number of items of each specific type of chemical weapon, and, for containers that are not part of binary munitions, the actual quantity of chemical fill in each container. 48. In carrying out an inventory, within the time available, inspectors shall have the right: (a) To use any of the following inspection techniques: (i) inventory all the chemical weapons stored at the facility; (ii) inventory all the chemical weapons stored in specific buildings or locations at the facility, as chosen by the inspectors; or (iii) inventory all the chemical weapons of one or more specific types stored at the facility, as chosen by the inspectors; and (b) To check all items inventoried against agreed records. 49. Inspectors shall, in accordance with facility agreements: (a) Have unimpeded access to all parts of the storage facilities including any munitions, devices, bulk containers, or other containers therein. While conducting their activity, inspectors shall comply with the safety regulations at the facility. The items to be inspected will be chosen by the inspectors; and (b) Have the right, during the first and any subsequent inspection of each chemical weapons storage facility, to designate munitions, devices, and containers from which samples are to be taken, and to affix to such munitions, devices, and containers a unique tag that will indicate an attempt to remove or alter the tag. A sample shall be taken from a tagged item at a chemical weapons storage facility or a chemical weapons destruction facility as soon as it is practically possible in accordance with the corresponding destruction programmes, and, in any case, not later than by the end of the destruction operations. _Systematic verification of the destruction of chemical weapons_ 50. The purpose of verification of destruction of chemical weapons shall be: (a) To confirm the identity and quantity of the chemical weapons stocks to be destroyed; and (b) To confirm that these stocks have been destroyed. 51. Chemical weapons destruction operations during the first 390 days after the entry into force of this Convention shall be governed by transitional verification arrangements. Such arrangements, including a transitional facility agreement, provisions for verification through on-site inspection and monitoring with on-site instruments, and the time-frame for application of the arrangements, shall be agreed between the Organization and the inspected State Party. These arrangements shall be approved by the Executive Council not later than 60 days after this Convention enters into force for the State Party, taking into account the recommendations of the Technical Secretariat, which shall be based on an evaluation of the detailed facility information provided in accordance with paragraph 31 and a visit to the facility. The Executive Council shall, at its first session, establish the guidelines for such transitional verification arrangements, based on recommendations to be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). The transitional verification arrangements shall be designed to verify, throughout the entire transitional period, the destruction of chemical weapons in accordance with the purposes set forth in paragraph 50, and to avoid hampering ongoing destruction operations. 52. The provisions of paragraphs 53 to 61 shall apply to chemical weapons destruction operations that are to begin not earlier than 390 days after the entry into force of this Convention. 53. On the basis of this Convention and the detailed destruction facility information, and as the case may be, on experience from previous inspections, the Technical Secretariat shall prepare a draft plan for inspecting the destruction of chemical weapons at each destruction facility. The plan shall be completed and provided to the inspected State Party for comment not less than 270 days before the facility begins destruction operations pursuant to this Convention. Any differences between the Technical Secretariat and the inspected State Party should be resolved through consultations. Any unresolved matter shall be forwarded to the Executive Council for appropriate action with a view to facilitating the full implementation of this Convention. ----- 54. The Technical Secretariat shall conduct an initial visit to each chemical weapons destruction facility of the inspected State Party not less than 240 days before each facility begins destruction operations pursuant to this Convention, to allow it to familiarize itself with the facility and assess the adequacy of the inspection plan. 55. In the case of an existing facility where chemical weapons destruction operations have already been initiated, the inspected State Party shall not be required to decontaminate the facility before the Technical Secretariat conducts an initial visit. The duration of the visit shall not exceed five days and the number of visiting personnel shall not exceed 15. 56. The agreed detailed plans for verification, with an appropriate recommendation by the Technical Secretariat, shall be forwarded to the Executive Council for review. The Executive Council shall review the plans with a view to approving them, consistent with verification objectives and obligations under this Convention. It should also confirm that verification schemes for destruction are consistent with verification aims and are efficient and practical. This review should be completed not less than 180 days before the destruction period begins. 57. Each member of the Executive Council may consult with the Technical Secretariat on any issues regarding the adequacy of the plan for verification. If there are no objections by any member of the Executive Council, the plan shall be put into action. 58. If there are any difficulties, the Executive Council shall enter into consultations with the State Party to reconcile them. If any difficulties remain unresolved they shall be referred to the Conference. 59. The detailed facility agreements for chemical weapons destruction facilities shall specify, taking into account the specific characteristics of the destruction facility and its mode of operation: (a) Detailed on-site inspection procedures; and (b) Provisions for verification through continuous monitoring with on-site instruments and physical presence of inspectors. 60. Inspectors shall be granted access to each chemical weapons destruction facility not less than 60 days before the commencement of the destruction, pursuant to this Convention, at the facility. Such access shall be for the purpose of supervising the installation of the inspection equipment, inspecting this equipment and testing its operation, as well as for the purpose of carrying out a final engineering review of the facility. In the case of an existing facility where chemical weapons destruction operations have already been initiated, destruction operations shall be stopped for the minimum amount of time required, not to exceed 60 days, for installation and testing of the inspection equipment. Depending on the results of the testing and review, the State Party and the Technical Secretariat may agree on additions or changes to the detailed facility agreement for the facility. 61. The inspected State Party shall notify, in writing, the inspection team leader at a chemical weapons destruction facility not less than four hours before the departure of each shipment of chemical weapons from a chemical weapons storage facility to that destruction facility. This notification shall specify the name of the storage facility, the estimated times of departure and arrival, the specific types and quantities of chemical weapons being transported, whether any tagged items are being moved, and the method of transportation. This notification may include notification of more than one shipment. The inspection team leader shall be promptly notified, in writing, of any changes in this information. _Chemical weapons storage facilities at chemical weapons destruction facilities_ 62. The inspectors shall verify the arrival of the chemical weapons at the destruction facility and the storing of these chemical weapons. The inspectors shall verify the inventory of each shipment, using agreed procedures consistent with facility safety regulations, prior to the destruction of the chemical weapons. They shall employ, as appropriate, agreed seals, markers or other inventory control procedures to facilitate an accurate inventory of the chemical weapons prior to destruction. 63. As soon and as long as chemical weapons are stored at chemical weapons storage facilities located at chemical weapons destruction facilities, these storage facilities shall be subject to systematic verification in conformity with the relevant facility agreements. 64. At the end of an active destruction phase, inspectors shall make an inventory of the chemical weapons, that have been removed from the storage facility, to be destroyed. They shall verify the ----- accuracy of the inventory of the chemical weapons remaining, employing inventory control procedures as referred to in paragraph 62. _Systematic on-site verification measures at chemical weapons destruction facilities_ 65. The inspectors shall be granted access to conduct their activities at the chemical weapons destruction facilities and the chemical weapons storage facilities located at such facilities during the entire active phase of destruction. 66. At each chemical weapons destruction facility, to provide assurance that no chemical weapons are diverted and that the destruction process has been completed, inspectors shall have the right to verify through their physical presence and monitoring with on-site instruments: (a) The receipt of chemical weapons at the facility; (b) The temporary holding area for chemical weapons and the specific type and quantity of chemical weapons stored in that area; (c) The specific type and quantity of chemical weapons being destroyed; (d) The process of destruction; (e) The end-product of destruction; (f) The mutilation of metal parts; and (g) The integrity of the destruction process and of the facility as a whole. 67. Inspectors shall have the right to tag, for sampling, munitions, devices, or containers located in the temporary holding areas at the chemical weapons destruction facilities. 68. To the extent that it meets inspection requirements, information from routine facility operations, with appropriate data authentication, shall be used for inspection purposes. 69. After the completion of each period of destruction, the Technical Secretariat shall confirm the declaration of the State Party, reporting the completion of destruction of the designated quantity of chemical weapons. 70. Inspectors shall, in accordance with facility agreements: (a) Have unimpeded access to all parts of the chemical weapons destruction facilities and the chemical weapons storage facilities located at such facilities, including any munitions, devices, bulk containers, or other containers, therein. The items to be inspected shall be chosen by the inspectors in accordance with the verification plan that has been agreed to by the inspected State Party and approved by the Executive Council; (b) Monitor the systematic on-site analysis of samples during the destruction process; and (c) Receive, if necessary, samples taken at their request from any devices, bulk containers and other containers at the destruction facility or the storage facility thereat. ----- PART IV (B) OLD CHEMICAL WEAPONS AND ABANDONED CHEMICAL WEAPONS A. GENERAL 1. Old chemical weapons shall be destroyed as provided for in Section B. 2. Abandoned chemical weapons, including those which also meet the definition of Article II, paragraph 5 (b), shall be destroyed as provided for in Section C. B. REGIME FOR OLD CHEMICAL WEAPONS 3. A State Party which has on its territory old chemical weapons as defined in Article II, paragraph 5 (a), shall, not later than 30 days after this Convention enters into force for it, submit to the Technical Secretariat all available relevant information, including, to the extent possible, the location, type, quantity and the present condition of these old chemical weapons. In the case of old chemical weapons as defined in Article II, paragraph 5 (b), the State Party shall submit to the Technical Secretariat a declaration pursuant to Article III, paragraph 1 (b) (i), including, to the extent possible, the information specified in Part IV(A), paragraphs 1 to 3, of this Annex. 4. A State Party which discovers old chemical weapons after this Convention enters into force for it shall submit to the Technical Secretariat the information specified in paragraph 3 not later than 180 days after the discovery of the old chemical weapons. 5. The Technical Secretariat shall conduct an initial inspection, and any further inspections as may be necessary, in order to verify the information submitted pursuant to paragraphs 3 and 4 and in particular to determine whether the chemical weapons meet the definition of old chemical weapons as specified in Article II, paragraph 5. Guidelines to determine the usability of chemical weapons produced between 1925 and 1946 shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i). 6. A State Party shall treat old chemical weapons that have been confirmed by the Technical Secretariat as meeting the definition in Article II, paragraph 5(a), as toxic waste. It shall inform the Technical Secretariat of the steps being taken to destroy or otherwise dispose of such old chemical weapons as toxic waste in accordance with its national legislation. 7. Subject to paragraphs 3 to 5, a State Party shall destroy old chemical weapons that have been confirmed by the Technical Secretariat as meeting the definition in Article II, paragraph 5 (b), in accordance with Article IV and Part IV (A) of this Annex. Upon request of a State Party, the Executive Council may, however, modify the provisions on time-limit and order of destruction of these old chemical weapons, if it determines that doing so would not pose a risk to the object and purpose of this Convention. The request shall contain specific proposals for modification of the provisions and a detailed explanation of the reasons for the proposed modification. C. REGIME FOR ABANDONED CHEMICAL WEAPONS 8. A State Party on whose territory there are abandoned chemical weapons (hereinafter referred to as the “Territorial State Party”) shall, not later than 30 days after this Convention enters into force for it, submit to the Technical Secretariat all available relevant information concerning the abandoned chemical weapons. This information shall include, to the extent possible, the location, type, quantity and the present condition of the abandoned chemical weapons as well as information on the abandonment. 9. A State Party which discovers abandoned chemical weapons after this Convention enters into force for it shall, not later than 180 days after the discovery, submit to the Technical Secretariat all available relevant information concerning the discovered abandoned chemical weapons. This information shall include, to the extent possible, the location, type, quantity and the present condition of the abandoned chemical weapons as well as information on the abandonment. 10. A State Party which has abandoned chemical weapons on the territory of another State Party (hereinafter referred to as the “Abandoning State Party”) shall, not later than 30 days after this Convention enters into force for it, submit to the Technical Secretariat all available relevant information concerning the abandoned chemical weapons. This information shall include, to the extent possible, the location, type, quantity as well as information on the abandonment, and the condition of the abandoned chemical weapons. ----- 11. The Technical Secretariat shall conduct an initial inspection, and any further inspections as may be necessary, in order to verify all available relevant information submitted pursuant to paragraphs 8 to 10 and determine whether systematic verification in accordance with Part IV (A), paragraphs 41 to 43, of this Annex is required. It shall, if necessary, verify the origin of the abandoned chemical weapons and establish evidence concerning the abandonment and the identity of the Abandoning State. 12. The report of the Technical Secretariat shall be submitted to the Executive Council, the Territorial State Party, and to the Abandoning State Party or the State Party declared by the Territorial State Party or identified by the Technical Secretariat as having abandoned the chemical weapons. If one of the States Parties directly concerned is not satisfied with the report it shall have the right to settle the matter in accordance with provisions of this Convention or bring the issue to the Executive Council with a view to settling the matter expeditiously. 13. Pursuant to Article I, paragraph 3, the Territorial State Party shall have the right to request the State Party which has been established as the Abandoning State Party pursuant to paragraphs 8 to 12 to enter into consultations for the purpose of destroying the abandoned chemical weapons in cooperation with the Territorial State Party. It shall immediately inform the Technical Secretariat of this request. 14. Consultations between the Territorial State Party and the Abandoning State Party with a view to establishing a mutually agreed plan for destruction shall begin not later than 30 days after the Technical Secretariat has been informed of the request referred to in paragraph 13. The mutually agreed plan for destruction shall be transmitted to the Technical Secretariat not later than 180 days after the Technical Secretariat has been informed of the request referred to in paragraph 13. Upon the request of the Abandoning State Party and the Territorial State Party, the Executive Council may extend the time-limit for transmission of the mutually agreed plan for destruction. 15. For the purpose of destroying abandoned chemical weapons, the Abandoning State Party shall provide all necessary financial, technical, expert, facility as well as other resources. The Territorial State Party shall provide appropriate cooperation. 16. If the Abandoning State cannot be identified or is not a State Party, the Territorial State Party, in order to ensure the destruction of these abandoned chemical weapons, may request the Organization and other States Parties to provide assistance in the destruction of these abandoned chemical weapons. 17. Subject to paragraphs 8 to 16, Article IV and Part IV (A) of this Annex shall also apply to the destruction of abandoned chemical weapons. In the case of abandoned chemical weapons which also meet the definition of old chemical weapons in Article II, paragraph 5 (b), the Executive Council, upon the request of the Territorial State Party, individually or together with the Abandoning State Party, may modify or in exceptional cases suspend the application of provisions on destruction, if it determines that doing so would not pose a risk to the object and purpose of this Convention. In the case of abandoned chemical weapons which do not meet the definition of old chemical weapons in Article II, paragraph 5 (b), the Executive Council, upon the request of the Territorial State Party, individually or together with the Abandoning State Party, may in exceptional circumstances modify the provisions on the time-limit and the order of destruction, if it determines that doing so would not pose a risk to the object and purpose of this Convention. Any request as referred to in this paragraph shall contain specific proposals for modification of the provisions and a detailed explanation of the reasons for the proposed modification. 18. States Parties may conclude between themselves agreements or arrangements concerning the destruction of abandoned chemical weapons. The Executive Council may, upon request of the Territorial State Party, individually or together with the Abandoning State Party, decide that selected provisions of such agreements or arrangements take precedence over provisions of this Section, if it determines that the agreement or arrangement ensures the destruction of the abandoned chemical weapons in accordance with paragraph 17. ----- PART V DESTRUCTION OF CHEMICAL WEAPONS PRODUCTION FACILITIES AND ITS VERIFICATION PURSUANT TO ARTICLE V A. DECLARATIONS _Declarations of chemical weapons production facilities_ 1. The declaration of chemical weapons production facilities by a State Party pursuant to Article III, paragraph 1(c) (ii), shall contain for each facility: (a) The name of the facility, the names of the owners, and the names of the companies or enterprises operating the facility since 1 January 1946; (b) The precise location of the facility, including the address, location of the complex, location of the facility within the complex including the specific building and structure number, if any; (c) A statement whether it is a facility for the manufacture of chemicals that are defined as chemical weapons or whether it is a facility for the filling of chemical weapons, or both; (d) The date when the construction of the facility was completed and the periods during which any modifications to the facility were made, including the installation of new or modified equipment, that significantly changed the production process characteristics of the facility; (e) Information on the chemicals defined as chemical weapons that were manufactured at the facility; the munitions, devices, and containers that were filled at the facility; and the dates of the beginning and cessation of such manufacture or filling: (i) For chemicals defined as chemical weapons that were manufactured at the facility, such information shall be expressed in terms of the specific types of chemicals manufactured, indicating the chemical name in accordance with the current International Union of Pure and Applied Chemistry (IUPAC) nomenclature, structural formula, and the Chemical Abstracts Service registry number, if assigned, and in terms of the amount of each chemical expressed by weight of chemical in tonnes; (ii) For munitions, devices and containers that were filled at the facility, such information shall be expressed in terms of the specific type of chemical weapons filled and the weight of the chemical fill per unit; (f) The production capacity of the chemical weapons production facility: (i) For a facility where chemical weapons were manufactured, production capacity shall be expressed in terms of the annual quantitative potential for manufacturing a specific substance on the basis of the technological process actually used or, in the case of processes not actually used, planned to be used at the facility; (ii) For a facility where chemical weapons were filled, production capacity shall be expressed in terms of the quantity of chemical that the facility can fill into each specific type of chemical weapon a year; (g) For each chemical weapons production facility that has not been destroyed, a description of the facility including: (i) A site diagram; (ii) A process flow diagram of the facility; and (iii) An inventory of buildings at the facility, and specialized equipment at the facility and of any spare parts for such equipment; (h) The present status of the facility, stating: (i) The date when chemical weapons were last produced at the facility; (ii) Whether the facility has been destroyed, including the date and manner of its destruction; and ----- (iii) Whether the facility has been used or modified before entry into force of this Convention for an activity not related to the production of chemical weapons, and if so, information on what modifications have been made, the date such non-chemical weapons related activity began and the nature of such activity, indicating, if applicable, the kind of product; (i) A specification of the measures that have been taken by the State Party for closure of, and a description of the measures that have been or will be taken by the State Party to inactivate the facility; (j) A description of the normal pattern of activity for safety and security at the inactivated facility; and (k) A statement as to whether the facility will be converted for the destruction of chemical weapons and, if so, the dates for such conversions. _Declarations of chemical weapons production facilities pursuant to Article III,_ _paragraph 1 (c) (iii)_ 2. The declaration of chemical weapons production facilities pursuant to Article III, paragraph 1 (c) (iii), shall contain all information specified in paragraph 1 above. It is the responsibility of the State Party on whose territory the facility is or has been located to make appropriate arrangements with the other State to ensure that the declarations are made. If the State Party on whose territory the facility is or has been located is not able to fulfil this obligation, it shall state the reasons therefor. _Declarations of past transfers and receipts_ 3. A State Party that has transferred or received chemical weapons production equipment since 1 January 1946 shall declare these transfers and receipts pursuant to Article III, paragraph 1 (c) (iv), and in accordance with paragraph 5 below. When not all the specified information is available for transfer and receipt of such equipment for the period between 1 January 1946 and 1 January 1970, the State Party shall declare whatever information is still available to it and provide an explanation as to why it cannot submit a full declaration. 4. Chemical weapons production equipment referred to in paragraph 3 means: (a) Specialized equipment; (b) Equipment for the production of equipment specifically designed for use directly in connection with chemical weapons employment; and (c) Equipment designed or used exclusively for producing non-chemical parts for chemical munitions. 5. The declaration concerning transfer and receipt of chemical weapons production equipment shall specify: (a) Who received/transferred the chemical weapons production equipment; (b) The identity of such equipment; (c) The date of transfer or receipt; (d) Whether the equipment was destroyed, if known; and (e) Current disposition, if known. _Submission of general plans for destruction_ 6. For each chemical weapons production facility, a State Party shall supply the following information: (a) Envisaged time-frame for measures to be taken; and (b) Methods of destruction. 7. For each chemical weapons production facility that a State Party intends to convert temporarily into a chemical weapons destruction facility, the State Party shall supply the following information: (a) Envisaged time-frame for conversion into a destruction facility; (b) Envisaged time-frame for utilizing the facility as a chemical weapons destruction facility; ----- (c) Description of the new facility; (d) Method of destruction of special equipment; (e) Time-frame for destruction of the converted facility after it has been utilized to destroy chemical weapons; and (f) Method of destruction of the converted facility. _Submission of annual plans for destruction and annual reports on destruction_ 8. The State Party shall submit an annual plan for destruction not less than 90 days before the beginning of the coming destruction year. The annual plan shall specify: (a) Capacity to be destroyed; (b) Name and location of the facilities where destruction will take place; (c) List of buildings and equipment that will be destroyed at each facility; and (d) Planned method(s) of destruction. 9. A State Party shall submit an annual report on destruction not later than 90 days after the end of the previous destruction year. The annual report shall specify: (a) Capacity destroyed; (b) Name and location of each facility where destruction took place; (c) List of buildings and equipment that were destroyed at each facility; (d) Methods of destruction. 10. For a chemical weapons production facility declared pursuant to Article III, paragraph 1(c) (iii), it is the responsibility of the State Party on whose territory the facility is or has been located to make appropriate arrangements to ensure that the declarations specified in paragraphs 6 to 9 above are made. If the State Party on whose territory the facility is or has been located is not able to fulfil this obligation, it shall state the reasons therefor. B. DESTRUCTION _General principles for destruction of chemical weapons production facilities_ 11. Each State Party shall decide on methods to be applied for the destruction of chemical weapons production facilities, according to the principles laid down in Article V and in this Part. _Principles and methods for closure of a chemical weapons production facility_ 12. The purpose of the closure of a chemical weapons production facility is to render it inactive. 13. Agreed measures for closure shall be taken by a State Party with due regard to the specific characteristics of each facility. Such measures shall include, inter alia: (a) Prohibition of occupation of the specialized buildings and standard buildings of the facility except for agreed activities; (b) Disconnection of equipment directly related to the production of chemical weapons, including, inter alia, process control equipment and utilities; (c) Decommissioning of protective installations and equipment used exclusively for the safety of operations of the chemical weapons production facility; (d) Installation of blind flanges and other devices to prevent the addition of chemicals to, or the removal of chemicals from, any specialized process equipment for synthesis, separation or purification of chemicals defined as a chemical weapon, any storage tank, or any machine for filling chemical weapons, the heating, cooling, or supply of electrical or other forms of power to such equipment, storage tanks, or machines; and (e) Interruption of rail, road and other access routes for heavy transport to the chemical weapons production facility except those required for agreed activities. ----- 14. While the chemical weapons production facility remains closed, a State Party may continue safety and physical security activities at the facility. _Technical maintenance of chemical weapons production facilities prior to their destruction_ 15. A State Party may carry out standard maintenance activities at chemical weapons production facilities only for safety reasons, including visual inspection, preventive maintenance, and routine repairs. 16. All planned maintenance activities shall be specified in the general and detailed plans for destruction. Maintenance activities shall not include: (a) Replacement of any process equipment; (b) Modification of the characteristics of the chemical process equipment; (c) Production of chemicals of any type. 17. All maintenance activities shall be subject to monitoring by the Technical Secretariat. _Principles and methods for temporary conversion of chemical weapons production facilities into_ _chemical weapons destruction facilities_ 18. Measures pertaining to the temporary conversion of chemical weapons production facilities into chemical weapons destruction facilities shall ensure that the regime for the temporarily converted facilities is at least as stringent as the regime for chemical weapons production facilities that have not been converted. 19. Chemical weapons production facilities converted into chemical weapons destruction facilities before entry into force of this Convention shall be declared under the category of chemical weapons production facilities. They shall be subject to an initial visit by inspectors, who shall confirm the correctness of the information about these facilities. Verification that the conversion of these facilities was performed in such a manner as to render them inoperable as chemical weapons production facilities shall also be required, and shall fall within the framework of measures provided for the facilities that are to be rendered inoperable not later than 90 days after entry into force of this Convention. 20. A State Party that intends to carry out a conversion of chemical weapons production facilities shall submit to the Technical Secretariat, not later than 30 days after this Convention enters into force for it, or not later than 30 days after a decision has been taken for temporary conversion, a general facility conversion plan, and subsequently shall submit annual plans. 21. Should a State Party have the need to convert to a chemical weapons destruction facility an additional chemical weapons production facility that had been closed after this Convention entered into force for it, it shall inform the Technical Secretariat thereof not less than 150 days before conversion. The Technical Secretariat, in conjunction with the State Party, shall make sure that the necessary measures are taken to render that facility, after its conversion, inoperable as a chemical weapons production facility. 22. A facility converted for the destruction of chemical weapons shall not be more fit for resuming chemical weapons production than a chemical weapons production facility which has been closed and is under maintenance. Its reactivation shall require no less time than that required for a chemical weapons production facility that has been closed and is under maintenance. 23. Converted chemical weapons production facilities shall be destroyed not later than 10 years after entry into force of this Convention. 24. Any measures for the conversion of any given chemical weapons production facility shall be facility-specific and shall depend upon its individual characteristics. 25. The set of measures carried out for the purpose of converting a chemical weapons production facility into a chemical weapons destruction facility shall not be less than that which is provided for the disabling of other chemical weapons production facilities to be carried out not later than 90 days after this Convention enters into force for the State Party. _Principles and methods related to destruction of a chemical weapons production facility_ 26. A State Party shall destroy equipment and buildings covered by the definition of a chemical weapons production facility as follows: (a) All specialized equipment and standard equipment shall be physically destroyed; ----- (b) All specialized buildings and standard buildings shall be physically destroyed. 27. A State Party shall destroy facilities for producing unfilled chemical munitions and equipment for chemical weapons employment as follows: (a) Facilities used exclusively for production of non-chemical parts for chemical munitions or equipment specifically designed for use directly in connection with chemical weapons employment, shall be declared and destroyed. The destruction process and its verification shall be conducted according to the provisions of Article V and this Part of this Annex that govern destruction of chemical weapons production facilities; (b) All equipment designed or used exclusively for producing non-chemical parts for chemical munitions shall be physically destroyed. Such equipment, which includes specially designed moulds and metal-forming dies, may be brought to a special location for destruction; (c) All buildings and standard equipment used for such production activities shall be destroyed or converted for purposes not prohibited under this Convention, with confirmation, as necessary, through consultations and inspections as provided for under Article IX; (d) Activities for purposes not prohibited under this Convention may continue while destruction or conversion proceeds. _Order of destruction_ 28. The order of destruction of chemical weapons production facilities is based on the obligations specified in Article I and the other Articles of this Convention, including obligations regarding systematic on-site verification. It takes into account interests of States Parties for undiminished security during the destruction period; confidence-building in the early part of the destruction stage; gradual acquisition of experience in the course of destroying chemical weapons production facilities; and applicability irrespective of the actual characteristics of the facilities and the methods chosen for their destruction. The order of destruction is based on the principle of levelling out. 29. A State Party shall, for each destruction period, determine which chemical weapons production facilities are to be destroyed and carry out the destruction in such a way that not more than what is specified in paragraphs 30 and 31 remains at the end of each destruction period. A State Party is not precluded from destroying its facilities at a faster pace. 30. The following provisions shall apply to chemical weapons production facilities that produce Schedule 1 chemicals: (a) A State Party shall start the destruction of such facilities not later than one year after this Convention enters into force for it, and shall complete it not later than 10 years after entry into force of this Convention. For a State which is a Party at the entry into force of this Convention, this overall period shall be divided into three separate destruction periods, namely, years 2-5, years 6-8, and years 9-10. For States which become a Party after entry into force of this Convention, the destruction periods shall be adapted, taking into account paragraphs 28 and 29; (b) Production capacity shall be used as the comparison factor for such facilities. It shall be expressed in agent tonnes, taking into account the rules specified for binary chemical weapons; (c) Appropriate agreed levels of production capacity shall be established for the end of the eighth year after entry into force of this Convention. Production capacity that exceeds the relevant level shall be destroyed in equal increments during the first two destruction periods; (d) A requirement to destroy a given amount of capacity shall entail a requirement to destroy any other chemical weapons production facility that supplied the Schedule 1 facility or filled the Schedule 1 chemical produced there into munitions or devices; (e) Chemical weapons production facilities that have been converted temporarily for destruction of chemical weapons shall continue to be subject to the obligation to destroy capacity according to the provisions of this paragraph. ----- 31. A State Party shall start the destruction of chemical weapons production facilities not covered in paragraph 30 not later than one year after this Convention enters into force for it, and complete it not later than five years after entry into force of this Convention. _Detailed plans for destruction_ 32. Not less than 180 days before the destruction of a chemical weapons production facility starts, a State Party shall provide to the Technical Secretariat the detailed plans for destruction of the facility, including proposed measures for verification of destruction referred to in paragraph 33 (f), with respect to, _inter alia:_ (a) Timing of the presence of the inspectors at the facility to be destroyed; and (b) Procedures for verification of measures to be applied to each item on the declared inventory. 33. The detailed plans for destruction of each chemical weapons production facility shall contain: (a) Detailed time schedule of the destruction process; (b) Layout of the facility; (c) Process flow diagram; (d) Detailed inventory of equipment, buildings and other items to be destroyed; (e) Measures to be applied to each item on the inventory; (f) Proposed measures for verification; (g) Security/safety measures to be observed during the destruction of the facility; and (h) Working and living conditions to be provided for inspectors. 34. If a State Party intends to convert temporarily a chemical weapons production facility into a chemical weapons destruction facility, it shall notify the Technical Secretariat not less than 150 days before undertaking any conversion activities. The notification shall: (a) Specify the name, address, and location of the facility; (b) Provide a site diagram indicating all structures and areas that will be involved in the destruction of chemical weapons and also identify all structures of the chemical weapons production facility that are to be temporarily converted; (c) Specify the types of chemical weapons, and the type and quantity of chemical fill to be destroyed; (d) Specify the destruction method; (e) Provide a process flow diagram, indicating which portions of the production process and specialized equipment will be converted for the destruction of chemical weapons; (f) Specify the seals and inspection equipment potentially affected by the conversion, if applicable; and (g) Provide a schedule identifying: The time allocated to design, temporary conversion of the facility, installation of equipment, equipment check-out, destruction operations, and closure. 35. In relation to the destruction of a facility that was temporarily converted for destruction of chemical weapons, information shall be provided in accordance with paragraphs 32 and 33. _Review of detailed plans_ 36. On the basis of the detailed plan for destruction and proposed measures for verification submitted by the State Party, and on experience from previous inspections, the Technical Secretariat shall prepare a plan for verifying the destruction of the facility, consulting closely with the State Party. Any differences between the Technical Secretariat and the State Party concerning appropriate measures should be resolved through consultations. Any unresolved matters shall be forwarded to the Executive Council for appropriate action with a view to facilitating the full implementation of this Convention. 37. To ensure that the provisions of Article V and this Part are fulfilled, the combined plans for destruction and verification shall be agreed upon between the Executive Council and the State Party. This agreement should be completed, not less than 60 days before the planned initiation of destruction. ----- 38. Each member of the Executive Council may consult with the Technical Secretariat on any issues regarding the adequacy of the combined plan for destruction and verification. If there are no objections by any member of the Executive Council, the plan shall be put into action. 39. If there are any difficulties, the Executive Council shall enter into consultations with the State Party to reconcile them. If any difficulties remain unresolved they shall be referred to the Conference. The resolution of any differences over methods of destruction shall not delay the execution of other parts of the destruction plan that are acceptable. 40. If agreement is not reached with the Executive Council on aspects of verification, or if the approved verification plan cannot be put into action, verification of destruction shall proceed through continuous monitoring with on-site instruments and physical presence of inspectors. 41. Destruction and verification shall proceed according to the agreed plan. The verification shall not unduly interfere with the destruction process and shall be conducted through the presence of inspectors on-site to witness the destruction. 42. If required verification or destruction actions are not taken as planned, all States Parties shall be so informed. C. VERIFICATION _Verification of declarations of chemical weapons production facilities through on-site inspection_ 43. The Technical Secretariat shall conduct an initial inspection of each chemical weapons production facility in the period between 90 and 120 days after this Convention enters into force for the State Party. 44. The purposes of the initial inspection shall be: (a) To confirm that the production of chemical weapons has ceased and that the facility has been inactivated in accordance with this Convention; (b) To permit the Technical Secretariat to familiarize itself with the measures that have been taken to cease production of chemical weapons at the facility; (c) To permit the inspectors to install temporary seals; (d) To permit the inspectors to confirm the inventory of buildings and specialized equipment; (e) To obtain information necessary for planning inspection activities at the facility, including use of tamper-indicating seals and other agreed equipment, which shall be installed pursuant to the detailed facility agreement for the facility; and (f) To conduct preliminary discussions regarding a detailed agreement on inspection procedures at the facility. 45. Inspectors shall employ, as appropriate, agreed seals, markers or other inventory control procedures to facilitate an accurate inventory of the declared items at each chemical weapons production facility. 46. Inspectors shall install such agreed devices as may be necessary to indicate if any resumption of production of chemical weapons occurs or if any declared item is removed. They shall take the necessary precaution not to hinder closure activities by the inspected State Party. Inspectors may return to maintain and verify the integrity of the devices. 47. If, on the basis of the initial inspection, the Director-General believes that additional measures are necessary to inactivate the facility in accordance with this Convention, the Director-General may request, not later than 135 days after this Convention enters into force for a State Party, that such measures be implemented by the inspected State Party not later than 180 days after this Convention enters into force for it. At its discretion, the inspected State Party may satisfy the request. If it does not satisfy the request, the inspected State Party and the Director-General shall consult to resolve the matter. _Systematic verification of chemical weapons production facilities and cessation of their activities_ 48. The purpose of the systematic verification of a chemical weapons production facility shall be to ensure that any resumption of production of chemical weapons or removal of declared items will be detected at this facility. ----- 49. The detailed facility agreement for each chemical weapons production facility shall specify: (a) Detailed on-site inspection procedures, which may include: (i) Visual examinations; (ii) Checking and servicing of seals and other agreed devices; and (iii) Obtaining and analysing samples; (b) Procedures for using tamper-indicating seals and other agreed equipment to prevent the undetected reactivation of the facility, which shall specify: (i) The type, placement, and arrangements for installation; and (ii) The maintenance of such seals and equipment; and (c) Other agreed measures. 50. The seals or other approved equipment provided for in a detailed agreement on inspection measures for that facility shall be placed not later than 240 days after this Convention enters into force for a State Party. Inspectors shall be permitted to visit each chemical weapons production facility for the installation of such seals or equipment. 51. During each calendar year, the Technical Secretariat shall be permitted to conduct up to four inspections of each chemical weapons production facility. 52. The Director-General shall notify the inspected State Party of his decision to inspect or visit a chemical weapons production facility 48 hours before the planned arrival of the inspection team at the facility for systematic inspections or visits. In the case of inspections or visits to resolve urgent problems, this period may be shortened. The Director-General shall specify the purpose of the inspection or visit. 53. Inspectors shall, in accordance with the facility agreements, have unimpeded access to all parts of the chemical weapons production facilities. The items on the declared inventory to be inspected shall be chosen by the inspectors. 54. The guidelines for determining the frequency of systematic on-site inspections shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). The particular production facility to be inspected shall be chosen by the Technical Secretariat in such a way as to preclude the prediction of precisely when the facility is to be inspected. _Verification of destruction of chemical weapons production facilities_ 55. The purpose of systematic verification of the destruction of chemical weapons production facilities shall be to confirm that the facility is destroyed in accordance with the obligations under this Convention and that each item on the declared inventory is destroyed in accordance with the agreed detailed plan for destruction. 56. When all items on the declared inventory have been destroyed, the Technical Secretariat shall confirm the declaration of the State Party to that effect. After this confirmation, the Technical Secretariat shall terminate the systematic verification of the chemical weapons production facility and shall promptly remove all devices and monitoring instruments installed by the inspectors. 57. After this confirmation, the State Party shall make the declaration that the facility has been destroyed. _Verification of temporary conversion of a chemical weapons production facility into a chemical weapons_ _destruction facility_ 58. Not later than 90 days after receiving the initial notification of the intent to convert temporarily a production facility, the inspectors shall have the right to visit the facility to familiarize themselves with the proposed temporary conversion and to study possible inspection measures that will be required during the conversion. 59. Not later than 60 days after such a visit, the Technical Secretariat and the inspected State Party shall conclude a transition agreement containing additional inspection measures for the temporary conversion period. The transition agreement shall specify inspection procedures, including the use of seals, monitoring equipment, and inspections, that will provide confidence that no chemical weapons production takes place during the conversion process. This agreement shall remain in force from the ----- beginning of the temporary conversion activity until the facility begins operation as a chemical weapons destruction facility. 60. The inspected State Party shall not remove or convert any portion of the facility, or remove or modify any seal or other agreed inspection equipment that may have been installed pursuant to this Convention until the transition agreement has been concluded. 61. Once the facility begins operation as a chemical weapons destruction facility, it shall be subject to the provisions of Part IV(A) of this Annex applicable to chemical weapons destruction facilities. Arrangements for the pre-operation period shall be governed by the transition agreement. 62. During destruction operations the inspectors shall have access to all portions of the temporarily converted chemical weapons production facilities, including those that are not directly involved with the destruction of chemical weapons. 63. Before the commencement of work at the facility to convert it temporarily for chemical weapons destruction purposes and after the facility has ceased to function as a facility for chemical weapons destruction, the facility shall be subject to the provisions of this Part applicable to chemical weapons production facilities. D. CONVERSION OF CHEMICAL WEAPONS PRODUCTION FACILITIES TO PURPOSES NOT PROHIBITED UNDER THIS CONVENTION _Procedures for requesting conversion_ 64. A request to use a chemical weapons production facility for purposes not prohibited under this Convention may be made for any facility that a State Party is already using for such purposes before this Convention enters into force for it, or that it plans to use for such purposes. 65. For a chemical weapons production facility that is being used for purposes not prohibited under this Convention when this Convention enters into force for the State Party, the request shall be submitted to the Director-General not later than 30 days after this Convention enters into force for the State Party. The request shall contain, in addition to data submitted in accordance with paragraph 1(h) (iii), the following information: (a) A detailed justification for the request; (b) A general facility conversion plan that specifies:— (i) The nature of the activity to be conducted at the facility; (ii) If the planned activity involves production, processing, or consumption of chemicals: the name of each of the chemicals, the flow diagram of the facility, and the quantities planned to be produced, processed, or consumed annually; (iii) Which buildings or structures are proposed to be used and what modifications are proposed, if any; (iv) Which buildings or structures have been destroyed or are proposed to be destroyed and the plans for destruction; (v) What equipment is to be used in the facility; (vi) What equipment has been removed and destroyed and what equipment is proposed to be removed and destroyed and the plans for its destruction; (vii) The proposed schedule for conversion, if applicable; (viii) The nature of the activity of each other facility operating at the site; and (c) A detailed explanation of how measures set forth in sub-paragraph (b), as well as any other measures proposed by the State Party, will ensure the prevention of standby chemical weapons production capability at the facility. 66. For a chemical weapons production facility that is not being used for purposes not prohibited under this Convention when this Convention enters into force for the State Party, the request shall be submitted to the Director-General not later than 30 days after the decision to convert, but in no case later ----- than four years after this Convention enters into force for the State Party. The request shall contain the following information: (a) A detailed justification for the request, including its economic needs; (b) A general facility conversion plan that specifies: (i) The nature of the activity planned to be conducted at the facility; (ii) If the planned activity involves production, processing, or consumption of chemicals: the name of each of the chemicals, the flow diagram of the facility, and the quantities planned to be produced, processed, or consumed annually; (iii) Which buildings or structures are proposed to be retained and what modifications are proposed, if any; (iv) Which buildings or structures have been destroyed or are proposed to be destroyed and the plans for destruction; (v) What equipment is proposed for use in the facility; (vi) What equipment is proposed to be removed and destroyed and the plans for its destruction; (vii) The proposed schedule for conversion; and (viii) The nature of the activity of each other facility operating at the site; and (c) A detailed explanation of how the measures set forth in sub-paragraph (b), as well as any other measures proposed by the State Party, will ensure the prevention of standby chemical weapons production capability at the facility. 67. The State Party may propose in its request any other measures it deems appropriate to build confidence. _Actions pending a decision_ 68. Pending a decision of the Conference, a State Party may continue to use for purposes not prohibited under this Convention a facility that was being used for such purposes before this Convention enters into force for it, but only if the State Party certifies in its request that no specialized equipment and no specialized buildings are being used and that the specialized equipment and specialized buildings have been rendered inactive using the methods specified in paragraph 13. 69. If the facility, for which the request was made, was not being used for purposes not prohibited under this Convention before this Convention enters into force for the State Party, or if the certification required in paragraph 68 is not made, the State Party shall cease immediately all activity pursuant to Article V, paragraph 4. The State Party shall close the facility in accordance with paragraph 13 not later than 90 days after this Convention enters into force for it. _Conditions for conversion_ 70. As a condition for conversion of a chemical weapons production facility for purposes not prohibited under this Convention, all specialized equipment at the facility must be destroyed and all special features of buildings and structures that distinguish them from buildings and structures normally used for purposes not prohibited under this Convention and not involving Schedule 1 chemicals must be eliminated. 71. A converted facility shall not be used: (a) For any activity involving production, processing, or consumption of a Schedule 1 chemical or a Schedule 2 chemical; or (b) For the production of any highly toxic chemical, including any highly toxic phosphorus chemical, or for any other activity that would require special equipment for handling highly toxic or highly corrosive chemicals, unless the Executive Council decides that such production or activity would pose no risk to the object and purpose of this Convention, taking into account criteria for toxicity, corrosiveness and, if applicable, other technical factors, to be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). ----- 72. Conversion of a chemical weapons production facility shall be completed not later than six years after entry into force of this Convention. _Decisions by the Executive Council and the Conference_ 73. Not later than 90 days after receipt of the request by the Director-General, an initial inspection of the facility shall be conducted by the Technical Secretariat. The purpose of this inspection shall be to determine the accuracy of the information provided in the request, to obtain information on the technical characteristics of the proposed converted facility, and to assess the conditions under which use for purposes not prohibited under this Convention may be permitted. The Director-General shall promptly submit a report to the Executive Council, the Conference, and all States Parties containing his recommendations on the measures necessary to convert the facility to purposes not prohibited under this Convention and to provide assurance that the converted facility will be used only for purposes not prohibited under this Convention. 74. If the facility has been used for purposes not prohibited under this Convention before this Convention enters into force for the State Party, and is continuing to be in operation, but the measures required to be certified under paragraph 68 have not been taken, the Director-General shall immediately inform the Executive Council, which may require implementation of measures it deems appropriate, inter _alia, shut-down of the facility and removal of specialized equipment and modification of buildings or_ structures. The Executive Council shall stipulate the deadline for implementation of these measures and shall suspend consideration of the request pending their satisfactory completion. The facility shall be inspected promptly after the expiration of the deadline to determine whether the measures have been implemented. If not, the State Party shall be required to shut down completely all facility operations. 75. As soon as possible after receiving the report of the Director-General, the Conference, upon recommendation of the Executive Council, shall decide, taking into account the report and any views expressed by States Parties, whether to approve the request, and shall establish the conditions upon which approval is contingent. If any State Party objects to approval of the request and the associated conditions, consultations shall be undertaken among interested States Parties for up to 90 days to seek a mutually acceptable solution. A decision on the request and associated conditions, along with any proposed modifications thereto, shall be taken, as a matter of substance, as soon as possible after the end of the consultation period. 76. If the request is approved, a facility agreement shall be completed not later than 90 days after such a decision is taken. The facility agreement shall contain the conditions under which the conversion and use of the facility is permitted, including measures for verification. Conversion shall not begin before the facility agreement is concluded. _Detailed plans for conversion_ 77. Not less than 180 days before conversion of a chemical weapons production facility is planned to begin, the State Party shall provide the Technical Secretariat with the detailed plans for conversion of the facility, including proposed measures for verification of conversion, with respect to, inter alia: (a) Timing of the presence of the inspectors at the facility to be converted; and (b) Procedures for verification of measures to be applied to each item on the declared inventory. 78. The detailed plan for conversion of each chemical weapons production facility shall contain: (a) Detailed time schedule of the conversion process; (b) Layout of the facility before and after conversion; (c) Process flow diagram of the facility before, and as appropriate, after the conversion; (d) Detailed inventory of equipment, buildings and structures and other items to be destroyed and of the buildings and structures to be modified; (e) Measures to be applied to each item on the inventory, if any; (f) Proposed measures for verification; (g) Security/safety measures to be observed during the conversion of the facility; and (h) Working and living conditions to be provided for inspectors. ----- _Review of detailed plans_ 79. On the basis of the detailed plan for conversion and proposed measures for verification submitted by the State Party, and on experience from previous inspections, the Technical Secretariat shall prepare a plan for verifying the conversion of the facility, consulting closely with the State Party. Any differences between the Technical Secretariat and the State Party concerning appropriate measures shall be resolved through consultations. Any unresolved matters shall be forwarded to the Executive Council for appropriate action with a view to facilitate the full implementation of this Convention. 80. To ensure that the provisions of Article V and this Part are fulfilled, the combined plans for conversion and verification shall be agreed upon between the Executive Council and the State Party. This agreement shall be completed not less than 60 days before conversion is planned to begin. 81. Each member of the Executive Council may consult with the Technical Secretariat on any issue regarding the adequacy of the combined plan for conversion and verification. If there are no objections by any member of the Executive Council, the plan shall be put into action. 82. If there are any difficulties, the Executive Council should enter into consultations with the State Party to reconcile them. If any difficulties remain unresolved, they should be referred to the Conference. The resolution of any differences over methods of conversion should not delay the execution of other parts of the conversion plan that are acceptable. 83. If agreement is not reached with the Executive Council on aspects of verification, or if the approved verification plan cannot be put into action, verification of conversion shall proceed through continuous monitoring with on-site instruments and physical presence of inspectors. 84. Conversion and verification shall proceed according to the agreed plan. The verification shall not unduly interfere with the conversion process and shall be conducted through the presence of inspectors to confirm the conversion. 85. For the 10 years after the Director-General certifies that conversion is complete, the State Party shall provide to inspectors unimpeded access to the facility at any time. The inspectors shall have the right to observe all areas, all activities, and all items of equipment at the facility. The inspectors shall have the right to verify that the activities at the facility are consistent with any conditions established under this Section, by the Executive Council and the Conference. The inspectors shall also have the right, in accordance with provisions of Part II, Section E, of this Annex to receive samples from any area of the facility and to analyse them to verify the absence of Schedule 1 chemicals, their stable by-products and decomposition products and of Schedule 2 chemicals and to verify that the activities at the facility are consistent with any other conditions on chemical activities established under this Section, by the Executive Council and the Conference. The inspectors shall also have the right to managed access, in accordance with Part X, Section C, of this Annex, to the plant site at which the facility is located. During the 10-year period, the State Party shall report annually on the activities at the converted facility. Upon completion of the 10-year period, the Executive Council, taking into account recommendations of the Technical Secretariat, shall decide on the nature of continued verification measures. 86. Costs of verification of the converted facility shall be allocated in accordance with Article V, paragraph 19. ----- PART VI ACTIVITIES NOT PROHIBITED UNDER THIS CONVENTION IN ACCORDANCE WITH ARTICLE VI REGIME FOR SCHEDULE 1 CHEMICALS AND FACILITIES RELATED TO SUCH CHEMICALS A. GENERAL PROVISIONS 1. A State Party shall not produce, acquire, retain or use Schedule 1 chemicals outside the territories of States Parties and shall not transfer such chemicals outside its territory except to another State Party. 2. A State Party shall not produce, acquire, retain, transfer or use Schedule 1 chemicals unless: (a) The chemicals are applied to research, medical, pharmaceutical or protective purposes; and (b) The types and quantities of chemicals are strictly limited to those which can be justified for such purposes; and (c) The aggregate amount of such chemicals at any given time for such purposes is equal to or less than 1 tonne; and (d) The aggregate amount for such purposes acquired by a State Party in any year through production, withdrawal from chemical weapons stocks and transfer is equal to or less than 1 tonne. B. TRANSFERS 3. A State Party may transfer Schedule 1 chemicals outside its territory only to another State Party and only for research, medical, pharmaceutical or protective purposes in accordance with paragraph 2. 4. Chemicals transferred shall not be retransferred to a third State. 5. Not less than 30 days before any transfer to another State Party both States Parties shall notify the Technical Secretariat of the transfer. 6. Each State Party shall make a detailed annual declaration regarding transfers during the previous year. The declaration shall be submitted not later than 90 days after the end of that year and shall for each Schedule 1 chemical that has been transferred include the following information: (a) The chemical name, structural formula and Chemical Abstracts Service registry number, if assigned; (b) The quantity acquired from other States or transferred to other States Parties. For each transfer the quantity, recipient and purpose shall be included. C. PRODUCTION _General principles for production_ 7. Each State Party, during production under paragraphs 8 to 12, shall assign the highest priority to ensuring the safety of people and to protecting the environment. Each State Party shall conduct such production in accordance with its national standards for safety and emissions. _Single small-scale facility_ 8. Each State Party that produces Schedule 1 chemicals for research, medical, pharmaceutical or protective purposes shall carry out the production at a single small-scale facility approved by the State Party, except as set forth in paragraphs 10, 11 and 12. 9. The production at a single small-scale facility shall be carried out in reaction vessels in production lines not configurated for continuous operation. The volume of such a reaction vessel shall not exceed 100 litres, and the total volume of all reaction vessels with a volume exceeding 5 litres shall not be more than 500 litres. _Other facilities_ 10. Production of Schedule 1 chemicals in aggregate quantities not exceeding 10 kg per year may be carried out for protective purposes at one facility outside a single small-scale facility. This facility shall be approved by the State Party. ----- 11. Production of Schedule 1 chemicals in quantities of more than 100g per year may be carried out for research, medical or pharmaceutical purposes outside a single small-scale facility in aggregate quantities not exceeding 10 kg per year per facility. These facilities shall be approved by the State Party. 12. Synthesis of Schedule 1 chemicals for research, medical or pharmaceutical purposes, but not for protective purposes, may be carried out at laboratories in aggregate quantities less than 100g per year per facility. These facilities shall not be subject to any obligation relating to declaration and verification as specified in Sections D and E. D. DECLARATIONS _Single small-scale facility_ 13. Each State Party that plans to operate a single small-scale facility shall provide the Technical Secretariat with the precise location and a detailed technical description of the facility, including an inventory of equipment and detailed diagrams. For existing facilities, this initial declaration shall be provided not later than 30 days after this Convention enters into force for the State Party. Initial declarations on new facilities shall be provided not less than 180 days before operations are to begin. 14. Each State Party shall give advance notification to the Technical Secretariat of planned changes related to the initial declaration. The notification shall be submitted not less than 180 days before the changes are to take place. 15. A State Party producing Schedule 1 chemicals at a single small-scale facility shall make a detailed annual declaration regarding the activities of the facility for the previous year. The declaration shall be submitted not later than 90 days after the end of that year and shall include: (a) Identification of the facility; (b) For each Schedule 1 chemical produced, acquired, consumed or stored at the facility, the following information:— (i) The chemical name, structural formula and Chemical Abstracts Service registry number, if assigned; (ii) The methods employed and quantity produced; (iii) The name and quantity of precursors listed in Schedules 1, 2, or 3 used for production of Schedule 1 chemicals; (iv) The quantity consumed at the facility and the purpose(s) of the consumption; (v) The quantity received from or shipped to other facilities in the State Party. For each shipment the quantity, recipient and purpose should be included; (vi) The maximum quantity stored at any time during the year; and (vii) The quantity stored at the end of the year; and (c) Information on any changes at the facility during the year compared to previously submitted detailed technical descriptions of the facility including inventories of equipment and detailed diagrams. 16. Each State Party producing Schedule 1 chemicals at a single small-scale facility shall make a detailed annual declaration regarding the projected activities and the anticipated production at the facility for the coming year. The declaration shall be submitted not less than 90 days before the beginning of that year and shall include:— (a) Identification of the facility; (b) For each Schedule 1 chemical anticipated to be produced, consumed or stored at the facility, the following information: (i) The chemical name, structural formula and Chemical Abstracts Service registry number, if assigned; (ii) The quantity anticipated to be produced and the purpose of the production; and ----- (c) Information on any anticipated changes at the facility during the year compared to previously submitted detailed technical descriptions of the facility including inventories of equipment and detailed diagrams. _Other facilities referred to in paragraphs 10 and 11_ 17. For each facility, a State Party shall provide the Technical Secretariat with the name, location and a detailed technical description of the facility or its relevant part(s) as requested by the Technical Secretariat. The facility producing Schedule 1 chemicals for protective purposes shall be specifically identified. For existing facilities, this initial declaration shall be provided not later than 30 days after this Convention enters into force for the State Party. Initial declarations on new facilities shall be provided not less than 180 days before operations are to begin. 18. Each State Party shall give advance notification to the Technical Secretariat of planned changes related to the initial declaration. The notification shall be submitted not less than 180 days before the changes are to take place. 19. Each State Party shall, for each facility, make a detailed annual declaration regarding the activities of the facility for the previous year. The declaration shall be submitted not later than 90 days after the end of that year and shall include: (a) Identification of the facility; (b) For each Schedule 1 chemical the following information: (i) The chemical name, structural formula and Chemical Abstracts Service registry number, if assigned; (ii) The quantity produced and, in case of production for protective purposes, methods employed; (iii) The name and quantity of precursors listed in Schedules 1, 2, or 3, used for production of Schedule 1 chemicals; (iv) The quantity consumed at the facility and the purpose of the consumption; (v) The quantity transferred to other facilities within the State Party. For each transfer the quantity, recipient and purpose should be included; (vi) The maximum quantity stored at any time during the year; and (vii) The quantity stored at the end of the year; and (c) Information on any changes at the facility or its relevant parts during the year compared to previously submitted detailed technical description of the facility. 20. Each State Party shall, for each facility, make a detailed annual declaration regarding the projected activities and the anticipated production at the facility for the coming year. The declaration shall be submitted not less than 90 days before the beginning of that year and shall include: (a) Identification of the facility; (b) For each Schedule 1 chemical the following information: (i) The chemical name, structural formula and Chemical Abstracts Service registry number, if assigned; and (ii) The quantity anticipated to be produced, the time periods when the production is anticipated to take place and the purposes of the production; and (c) Information on any anticipated changes at the facility or its relevant parts, during the year compared to previously submitted detailed technical descriptions of the facility. E. VERIFICATION _Single small-scale facility_ 21. The aim of verification activities at the single small-scale facility shall be to verify that the quantities of Schedule 1 chemicals produced are correctly declared and, in particular, that their aggregate amount does not exceed 1 tonne. ----- 22. The facility shall be subject to systematic verification through on-site inspection and monitoring with on-site instruments. 23. The number, intensity, duration, timing and mode of inspections for a particular facility shall be based on the risk to the object and purpose of this Convention posed by the relevant chemicals, the characteristics of the facility and the nature of the activities carried out there. Appropriate guidelines shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). 24. The purpose of the initial inspection shall be to verify information provided concerning the facility, including verification of the limits on reaction vessels set forth in paragraph 9. 25. Not later than 180 days after this Convention enters into force for a State Party, it shall conclude a facility agreement, based on a model agreement, with the Organization, covering detailed inspection procedures for the facility. 26. Each State Party planning to establish a single small-scale facility after this Convention enters into force for it shall conclude a facility agreement, based on a model agreement, with the Organization, covering detailed inspection procedures for the facility before it begins operation or is used. 27. A model for agreements shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). _Other facilities referred to in paragraphs 10 and 11_ 28. The aim of verification activities at any facility referred to in paragraphs 10 and 11 shall be to verify that: (a) The facility is not used to produce any Schedule 1 chemical, except for the declared chemicals; (b) The quantities of Schedule 1 chemicals produced, processed or consumed are correctly declared and consistent with needs for the declared purpose; and (c) The Schedule 1 chemical is not diverted or used for other purposes. 29. The facility shall be subject to systematic verification through on-site inspection and monitoring with on-site instruments. 30. The number, intensity, duration, timing and mode of inspections for a particular facility shall be based on the risk to the object and purpose of this Convention posed by the quantities of chemicals produced, the characteristics of the facility and the nature of the activities carried out there. Appropriate guidelines shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). 31. Not later than 180 days after this Convention enters into force for a State Party, it shall conclude facility agreements with the Organization, based on a model agreement covering detailed inspection procedures for each facility. 32. Each State Party planning to establish such a facility after entry into force of this Convention shall conclude a facility agreement with the Organization before the facility begins operation or is used. ----- PART VII ACTIVITIES NOT PROHIBITED UNDER THIS CONVENTION IN ACCORDANCE WITH ARTICLE VI REGIME FOR SCHEDULE 2 CHEMICALS AND FACILITIES RELATED TO SUCH CHEMICALS A. DECLARATIONS _Declarations of aggregate national data_ 1. The initial and annual declarations to be provided by each State Party pursuant to Article VI, paragraphs 7 and 8, shall include aggregate national data for the previous calendar year on the quantities produced, processed, consumed, imported and exported of each Schedule 2 chemical, as well as a quantitative specification of import and export for each country involved. 2. Each State Party shall submit: (a) Initial declarations pursuant to paragraph 1 not later than 30 days after this Convention enters into force for it; and, starting in the following calendar year, (b) Annual declarations not later than 90 days after the end of the previous calendar year. _Declarations of plant sites producing, processing or consuming Schedule 2 chemicals_ 3. Initial and annual declarations are required for all plant sites that comprise one or more plant(s) which produced, processed or consumed during any of the previous three calendar years or is anticipated to produce, process or consume in the next calendar year more than: (a) 1 kg of a chemical designated “*” in Schedule 2, part A; (b) 100 kg of any other chemical listed in Schedule 2, part A; or (c) 1 tonne of a chemical listed in Schedule 2, part B. 4. Each State Party shall submit: (a) Initial declarations pursuant to paragraph 3 not later than 30 days after this Convention enters into force for it; and, starting in the following calendar year; (b) Annual declarations on past activities not later than 90 days after the end of the previous calendar year; (c) Annual declarations on anticipated activities not later than 60 days before the beginning of the following calendar year. Any such activity additionally planned after the annual declaration has been submitted shall be declared not later than five days before this activity begins. 5. Declarations pursuant to paragraph 3 are generally not required for mixtures containing a low concentration of a Schedule 2 chemical. They are only required, in accordance with guidelines, in cases where the ease of recovery from the mixture of the Schedule 2 chemical and its total weight are deemed to pose a risk to the object and purpose of this Convention. These guidelines shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i). 6. Declarations of a plant site pursuant to paragraph 3 shall include: (a) The name of the plant site and the name of the owner, company, or enterprise operating it; (b) Its precise location including the address; and (c) The number of plants within the plant site which are declared pursuant to Part VIII of this Annex. 7. Declarations of a plant site pursuant to paragraph 3 shall also include, for each plant which is located within the plant site and which falls under the specifications set forth in paragraph 3, the following information: (a) The name of the plant and the name of the owner, company, or enterprise operating it; (b) Its precise location within the plant site including the specific building or structure number, if any; (c) Its main activities; ----- (d) Whether the plant: (i) Produces, processes, or consumes the declared Schedule 2 chemical(s); (ii) Is dedicated to such activities or multi-purpose; and (iii) Performs other activities with regard to the declared Schedule 2 chemical(s), including a specification of that other activity (e.g. storage); and (e) The production capacity of the plant for each declared Schedule 2 chemical. 8. Declarations of a plant site pursuant to paragraph 3 shall also include the following information on each Schedule 2 chemical above the declaration threshold,— (a) The chemical name, common or trade name used by the facility, structural formula, and Chemical Abstracts Service registry number, if assigned; (b) In the case of the initial declaration: the total amount produced, processed, consumed, imported and exported by the plant site in each of the three previous calendar years; (c) In the case of the annual declaration on past activities: the total amount produced, processed, consumed, imported and exported by the plant site in the previous calendar year; (d) In the case of the annual declaration on anticipated activities: the total amount anticipated to be produced, processed or consumed by the plant site in the following calendar year, including the anticipated time periods for production, processing or consumption; and (e) The purposes for which the chemical was or will be produced, processed or consumed: (i) Processing and consumption on site with a specification of the product types; (ii) Sale or transfer within the territory or to any other place under the jurisdiction or control of the State Party, with a specification whether to other industry, trader or other destination and, if possible, of final product types; (iii) Direct export, with a specification of the States involved; or (iv) Other, including a specification of these other purposes. _Declarations on past production of Schedule 2 chemicals for chemical weapons purposes_ 9. Each State Party shall, not later than 30 days after this Convention enters into force for it, declare all plant sites comprising plants that produced at any time since 1 January 1946 a Schedule 2 chemical for chemical weapons purposes. 10. Declarations of a plant site pursuant to paragraph 9 shall include: (a) The name of the plant site and the name of the owner, company, or enterprise operating it; (b) Its precise location including the address; (c) For each plant which is located within the plant site, and which falls under the specifications set forth in paragraph 9, the same information as required under paragraph 7, sub-paragraphs (a) to (e); and (d) For each Schedule 2 chemical produced for chemical weapons purposes: (i) The chemical name, common or trade name used by the plant site for chemical weapons production purposes, structural formula, and Chemical Abstracts Service registry number, if assigned; (ii) The dates when the chemical was produced and the quantity produced; and (iii) The location to which the chemical was delivered and the final product produced there, if known. _Information to States Parties_ 11. A list of plant sites declared under this Section together with the information provided under paragraphs 6, 7(a), 7(c), 7(d)(i), 7(d)(iii), 8(a) and 10 shall be transmitted by the Technical Secretariat to States Parties upon request. ----- B. VERIFICATION _General_ 12. Verification provided for in Article VI, paragraph 4, shall be carried out through on-site inspection at those of the declared plant sites that comprise one or more plants which produced, processed or consumed during any of the previous three calendar years or are anticipated to produce, process or consume in the next calendar year more than— (a) 10 kg of a chemical designated “*” in Schedule 2, part A; (b) 1 tonne of any other chemical listed in Schedule 2, part A; or (c) 10 tonnes of a chemical listed in Schedule 2, part B. 13. The programme and budget of the Organization to be adopted by the Conference pursuant to Article VIII, paragraph 21(a) shall contain, as a separate item, a programme and budget for verification under this Section. In the allocation of resources made available for verification under Article VI, the Technical Secretariat shall, during the first three years after the entry into force of this Convention, give priority to the initial inspections of plant sites declared under Section A. The allocation shall thereafter be reviewed on the basis of the experience gained. 14. The Technical Secretariat shall conduct initial inspections and subsequent inspections in accordance with paragraphs 15 to 22. _Inspection aims_ 15. The general aim of inspections shall be to verify that activities are in accordance with obligations under this Convention and consistent with the information to be provided in declarations. Particular aims of inspections at plant sites declared under Section A shall include verification of— (a) The absence of any Schedule 1 chemical, especially its production, except if in accordance with Part VI of this Annex; (b) Consistency with declarations of levels of production, processing or consumption of Schedule 2 chemicals; and (c) Non-diversion of Schedule 2 chemicals for activities prohibited under this Convention. _Initial inspections_ 16. Each plant site to be inspected pursuant to paragraph 12 shall receive an initial inspection as soon as possible but preferably not later than three years after entry into force of this Convention. Plant sites declared after this period shall receive an initial inspection not later than one year after production, processing or consumption is first declared. Selection of plant sites for initial inspections shall be made by the Technical Secretariat in such a way as to preclude the prediction of precisely when the plant site is to be inspected. 17. During the initial inspection, a draft facility agreement for the plant site shall be prepared unless the inspected State Party and the Technical Secretariat agree that it is not needed. 18. With regard to frequency and intensity of subsequent inspections, inspectors shall during the initial inspection assess the risk to the object and purpose of this Convention posed by the relevant chemicals, the characteristics of the plant site and the nature of the activities carried out there, taking into account, inter alia, the following criteria: (a) The toxicity of the scheduled chemicals and of the end-products produced with it, if any; (b) The quantity of the scheduled chemicals typically stored at the inspected site; (c) The quantity of feedstock chemicals for the scheduled chemicals typically stored at the inspected site; (d) The production capacity of the Schedule 2 plants; and (e) The capability and convertibility for initiating production, storage and filling of toxic chemicals at the inspected site. ----- _Inspections_ 19. Having received the initial inspection, each plant site to be inspected pursuant to paragraph 12 shall be subject to subsequent inspections. 20. In selecting particular plant sites for inspection and in deciding on the frequency and intensity of inspections, the Technical Secretariat shall give due consideration to the risk to the object and purpose of this Convention posed by the relevant chemical, the characteristics of the plant site and the nature of the activities carried out there, taking into account the respective facility agreement as well as the results of the initial inspections and subsequent inspections. 21. The Technical Secretariat shall choose a particular plant site to be inspected in such a way as to preclude the prediction of exactly when it will be inspected. 22. No plant site shall receive more than two inspections per calendar year under the provisions of this Section. This, however, shall not limit inspections pursuant to Article IX. _Inspection procedures_ 23. In addition to agreed guidelines, other relevant provisions of this Annex and the Confidentiality Annex, paragraphs 24 to 30 below shall apply. 24. A facility agreement for the declared plant site shall be concluded not later than 90 days after completion of the initial inspection between the inspected State Party and the Organization unless the inspected State Party and the Technical Secretariat agree that it is not needed. It shall be based on a model agreement and govern the conduct of inspections at the declared plant site. The agreement shall specify the frequency and intensity of inspections as well as detailed inspection procedures, consistent with paragraphs 25 to 29. 25. The focus of the inspection shall be the declared Schedule 2 plant(s) within the declared plant site. If the inspection team requests access to other parts of the plant site, access to these areas shall be granted in accordance with the obligation to provide clarification pursuant to Part II, paragraph 51, of this Annex and in accordance with the facility agreement, or, in the absence of a facility agreement, in accordance with the rules of managed access as specified in Part X, Section C, of this Annex. 26. Access to records shall be provided, as appropriate, to provide assurance that there has been no diversion of the declared chemical and that production has been consistent with declarations. 27. Sampling and analysis shall be undertaken to check for the absence of undeclared scheduled chemicals. 28. Areas to be inspected may include: (a) Areas where feed chemicals (reactants) are delivered or stored; (b) Areas where manipulative processes are performed upon the reactants prior to addition to the reaction vessels; (c) Feed lines as appropriate from the areas referred to in sub-paragraph (a) or sub-paragraph (b) to the reaction vessels together with any associated valves, flow meters, etc.; (d) The external aspect of the reaction vessels and ancillary equipment; (e) Lines from the reaction vessels leading to long or short-term storage or to equipment further processing the declared Schedule 2 chemicals; (f) Control equipment associated with any of the items under sub-paragraphs (a) to (e); (g) Equipment and areas for waste and effluent handling; (h) Equipment and areas for disposition of chemicals not up to specification. 29. The period of inspection shall not last more than 96 hours; however, extensions may be agreed between the inspection team and the inspected State Party. _Notification of inspection_ 30. A State Party shall be notified by the Technical Secretariat of the inspection not less than 48 hours before the arrival of the inspection team at the plant site to be inspected. ----- C. TRANSFERS TO STATES NOT PARTY TO THIS CONVENTION 31. Schedule 2 chemicals shall only be transferred to or received from States Parties. This obligation shall take effect three years after entry into force of this Convention. 32. During this interim three-year period, each State Party shall require an end-use certificate, as specified below, for transfers of Schedule 2 chemicals to States not Party to this Convention. For such transfers, each State Party shall adopt the necessary measures to ensure that the transferred chemicals shall only be used for purposes not prohibited under this Convention. _Inter alia, the State Party shall_ require from the recipient State a certificate stating, in relation to the transferred chemicals: (a) That they will only be used for purposes not prohibited under this Convention; (b) That they will not be re-transferred; (c) Their types and quantities; (d) Their end-use(s); and (e) The name(s) and address(es) of the end-user(s). ----- PART VIII ACTIVITIES NOT PROHIBITED UNDER THIS CONVENTION IN ACCORDANCE WITH ARTICLE VI REGIME FOR SCHEDULE 3 CHEMICALS AND FACILITIES RELATED TO SUCH CHEMICALS A. DECLARATIONS _Declarations of aggregate national data_ 1. The initial and annual declarations to be provided by a State Party pursuant to Article VI, paragraphs 7 and 8, shall include aggregate national data for the previous calendar year on the quantities produced, imported and exported of each Schedule 3 chemical, as well as a quantitative specification of import and export for each country involved. 2. Each State Party shall submit: (a) Initial declarations pursuant to paragraph 1 not later than 30 days after this Convention enters into force for it; and, starting in the following calendar year; (b) Annual declarations not later than 90 days after the end of the previous calendar year. _Declarations of plant sites producing Schedule_ _3 chemicals_ 3. Initial and annual declarations are required for all plant sites that comprise one or more plants which produced during the previous calendar year or are anticipated to produce in the next calendar year more than 30 tonnes of a Schedule 3 chemical. 4. Each State Party shall submit: (a) Initial declarations pursuant to paragraph 3 not later than 30 days after this Convention enters into force for it; and, starting in the following calendar year; (b) Annual declarations on past activities not later than 90 days after the end of the previous calendar year; (c) Annual declarations on anticipated activities not later than 60 days before the beginning of the following calendar year. Any such activity additionally planned after the annual declaration has been submitted shall be declared not later than five days before this activity begins. 5. Declarations pursuant to paragraph 3 are generally not required for mixtures containing a low concentration of a Schedule 3 chemical. They are only required, in accordance with guidelines, in such cases where the ease of recovery from the mixture of the Schedule 3 chemical and its total weight are deemed to pose a risk to the object and purpose of this Convention. These guidelines shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21(i). 6. Declarations of a plant site pursuant to paragraph 3 shall include: (a) The name of the plant site and the name of the owner, company, or enterprise operating it; (b) Its precise location including the address; and (c) The number of plants within the plant site which are declared pursuant to Part VII of this Annex. 7. Declarations of a plant site pursuant to paragraph 3 shall also include, for each plant which is located within the plant site and which falls under the specifications set forth in paragraph 3, the following information: (a) The name of the plant and the name of the owner, company, or enterprise operating it; (b) Its precise location within the plant site, including the specific building or structure number, if any; (c) Its main activities. 8. Declarations of a plant site pursuant to paragraph 3 shall also include the following information on each Schedule 3 chemical above the declaration threshold: ----- (a) The chemical name, common or trade name used by the facility, structural formula, and Chemical Abstracts Service registry number, if assigned; (b) The approximate amount of production of the chemical in the previous calendar year, or, in case of declarations on anticipated activities, anticipated for the next calendar year, expressed in the ranges: 30 to 200 tonnes, 200 to 1,000 tonnes, 1,000 to 10,000 tonnes, 10,000 to 100,000 tonnes, and above 100,000 tonnes; and (c) The purposes for which the chemical was or will be produced. _Declarations on past production of Schedule 3 chemicals for chemical weapons purposes_ 9. Each State Party shall, not later than 30 days after this Convention enters into force for it, declare all plant sites comprising plants that produced at any time since 1 January 1946 a Schedule 3 chemical for chemical weapons purposes. 10. Declarations of a plant site pursuant to paragraph 9 shall include: (a) The name of the plant site and the name of the owner, company, or enterprise operating it; (b) Its precise location including the address; (c) For each plant which is located within the plant site, and which falls under the specifications set forth in paragraph 9, the same information as required under paragraph 7, sub-paragraphs (a) to (c); and (d) For each Schedule 3 chemical produced for chemical weapons purposes: (i) The chemical name, common or trade name used by the plant site for chemical weapons production purposes, structural formula, and Chemical Abstracts Service registry number, if assigned; (ii) The dates when the chemical was produced and the quantity produced; and (iii) The location to which the chemical was delivered and the final product produced there, if known. _Information to States Parties_ 11. A list of plant sites declared under this Section together with the information provided under paragraphs 6, 7(a), 7(c), 8(a) and 10 shall be transmitted by the Technical Secretariat to States Parties upon request. B. VERIFICATION _General_ 12. Verification provided for in paragraph 5 of Article VI shall be carried out through on-site inspections at those declared plant sites which produced during the previous calendar year or are anticipated to produce in the next calendar year in excess of 200 tonnes aggregate of any Schedule 3 chemical above the declaration threshold of 30 tonnes. 13. The programme and budget of the Organization to be adopted by the Conference pursuant to Article VIII, paragraph 21 (a), shall contain, as a separate item, a programme and budget for verification under this Section taking into account Part VII, paragraph 13, of this Annex. 14. Under this Section, the Technical Secretariat shall randomly select plant sites for inspection through appropriate mechanisms, such as the use of specially designed computer software, on the basis of the following weighting factors: (a) Equitable geographical distribution of inspections; and (b) The information on the declared plant sites available to the Technical Secretariat, related to the relevant chemical, the characteristics of the plant site and the nature of the activities carried out there. 15. No plant site shall receive more than two inspections per year under the provisions of this Section. This, however, shall not limit inspections pursuant to Article IX. ----- 16. In selecting plant sites for inspection under this Section, the Technical Secretariat shall observe the following limitation for the combined number of inspections to be received by a State Party per calendar year under this Part and Part IX of this Annex: the combined number of inspections shall not exceed three plus 5 per cent. of the total number of plant sites declared by a State Party under both this Part and Part IX of this Annex, or 20 inspections, whichever of these two figures is lower. _Inspection aims_ 17. At plant sites declared under Section A, the general aim of inspections shall be to verify that activities are consistent with the information to be provided in declarations. The particular aim of inspections shall be the verification of the absence of any Schedule 1 chemical, especially its production, except if in accordance with Part VI of this Annex. _Inspection procedures_ 18. In addition to agreed guidelines, other relevant provisions of this Annex and the Confidentiality Annex, paragraphs 19 to 25 below shall apply. 19. There shall be no facility agreement, unless requested by the inspected State Party. 20. The focus of the inspections shall be the declared Schedule 3 plant(s) within the declared plant site. If the inspection team, in accordance with Part II, paragraph 51, of this Annex, requests access to other parts of the plant site for clarification of ambiguities, the extent of such access shall be agreed between the inspection team and the inspected State Party. 21. The inspection team may have access to records in situations in which the inspection team and the inspected State Party agree that such access will assist in achieving the objectives of the inspection. 22. Sampling and on-site analysis may be undertaken to check for the absence of undeclared scheduled chemicals. In case of unresolved ambiguities, samples may be analysed in a designated off-site laboratory, subject to the inspected State Party’s agreement. 23. Areas to be inspected may include: (a) Areas where feed chemicals (reactants) are delivered or stored; (b) Areas where manipulative processes are performed upon the reactants prior to addition to the reaction vessel; (c) Feed lines as appropriate from the areas referred to in sub-paragraph (a) or sub-paragraph (b) to the reaction vessel together with any associated valves, flow meters, etc.; (d) The external aspect of the reaction vessels and ancillary equipment; (e) Lines from the reaction vessels leading to long- or short-term storage or to equipment further processing the declared Schedule 3 chemicals; (f) Control equipment associated with any of the items under sub-paragraphs (a) to (e); (g) Equipment and areas for waste and effluent handling; (h) Equipment and areas for disposition of chemicals not up to specification. 24. The period of inspection shall not last more than 24 hours; however, extensions may be agreed between the inspection team and the inspected State Party. _Notification of inspection_ 25. A State Party shall be notified by the Technical Secretariat of the inspection not less than 120 hours before the arrival of the inspection team at the plant site to be inspected. C. TRANSFERS TO STATES NOT PARTY TO THIS CONVENTION 26. When transferring Schedule 3 chemicals to States not Party to this Convention, each State Party shall adopt the necessary measures to ensure that the transferred chemicals shall only be used for purposes not prohibited under this Convention. Inter alia, the State Party shall require from the recipient State a certificate stating, in relation to the transferred chemicals: (a) That they will only be used for purposes not prohibited under this Convention; ----- (b) That they will not be re-transferred; (c) Their types and quantities; (d) Their end-use(s); and (e) The name(s) and address(es) of the end-user(s). 27. Five years after entry into force of this Convention, the Conference shall consider the need to establish other measures regarding transfers of Schedule 3 chemicals to States not Party to this Convention. ----- PART IX ACTIVITIES NOT PROHIBITED UNDER THIS CONVENTION IN ACCORDANCE WITH ARTICLE VI REGIME FOR OTHER CHEMICAL PRODUCTION FACILITIES A. DECLARATIONS _List of other chemical production facilities_ 1. The initial declaration to be provided by each State Party pursuant to Article VI, paragraph 7, shall include a list of all plant sites that: (a) Produced by synthesis during the previous calendar year more than 200 tonnes of unscheduled discrete organic chemicals; or (b) Comprise one or more plants which produced by synthesis during the previous calendar year more than 30 tonnes of an unscheduled discrete organic chemical containing the elements phosphorus, sulfur or fluorine (hereinafter referred to as “PSF-plants” and “PSF-chemical”). 2. The list of other chemical production facilities to be submitted pursuant to paragraph 1 shall not include plant sites that exclusively produced explosives or hydrocarbons. 3. Each State Party shall submit its list of other chemical production facilities pursuant to paragraph 1 as part of its initial declaration not later than 30 days after this Convention enters into force for it. Each State Party shall, not later than 90 days after the beginning of each following calendar year, provide annually the information necessary to update the list. 4. The list of other chemical production facilities to be submitted pursuant to paragraph 1 shall include the following information on each plant site: (a) The name of the plant site and the name of the owner, company, or enterprise operating it; (b) The precise location of the plant site including its address; (c) Its main activities; and (d) The approximate number of plants producing the chemicals specified in paragraph 1 in the plant site. 5. With regard to plant sites listed pursuant to paragraph 1 (a), the list shall also include information on the approximate aggregate amount of production of the unscheduled discrete organic chemicals in the previous calendar year expressed in the ranges: under 1,000 tonnes, 1,000 to 10,000 tonnes and above 10,000 tonnes. 6. With regard to plant sites listed pursuant to paragraph 1 (b), the list shall also specify the number of PSF-plants within the plant site and include information on the approximate aggregate amount of production of PSF-chemicals produced by each PSF-plant in the previous calendar year expressed in the ranges: under 200 tonnes, 200 to 1,000 tonnes, 1,000 to 10,000 tonnes and above 10,000 tonnes. _Assistance by the Technical Secretariat_ 7. If a State Party, for administrative reasons, deems it necessary to ask for assistance in compiling its list of chemical production facilities pursuant to paragraph 1, it may request the Technical Secretariat to provide such assistance. Questions as to the completeness of the list shall then be resolved through consultations between the State Party and the Technical Secretariat. _Information to States Parties_ 8. The lists of other chemical production facilities submitted pursuant to paragraph 1, including the information provided under paragraph 4, shall be transmitted by the Technical Secretariat to States Parties upon request. B. VERIFICATION _General_ 9. Subject to the provisions of Section C, verification as provided for in Article VI, paragraph 6, shall be carried out through on-site inspection at: (a) Plant sites listed pursuant to paragraph 1 (a); and ----- (b) Plant sites listed pursuant to paragraph 1 (b) that comprise one or more PSF-plants which produced during the previous calendar year more than 200 tonnes of a PSF-chemical. 10. The programme and budget of the Organization to be adopted by the Conference pursuant to Article VIII, paragraph 21 (a), shall contain, as a separate item, a programme and budget for verification under this Section after its implementation has started. 11. Under this Section, the Technical Secretariat shall randomly select plant sites for inspection through appropriate mechanisms, such as the use of specially designed computer software, on the basis of the following weighting factors: (a) Equitable geographical distribution of inspections; (b) The information on the listed plant sites available to the Technical Secretariat, related to the characteristics of the plant site and the activities carried out there; and (c) Proposals by States Parties on a basis to be agreed upon in accordance with paragraph 25. 12. No plant site shall receive more than two inspections per year under the provisions of this Section. This, however, shall not limit inspections pursuant to Article IX. 13. In selecting plant sites for inspection under this Section, the Technical Secretariat shall observe the following limitation for the combined number of inspections to be received by a State Party per calendar year under this Part and Part VIII of this Annex: the combined number of inspections shall not exceed three plus 5 per cent. of the total number of plant sites declared by a State Party under both this Part and Part VIII of this Annex, or 20 inspections, whichever of these two figures is lower. _Inspection aims_ 14. At plant sites listed under Section A, the general aim of inspections shall be to verify that activities are consistent with the information to be provided in declarations. The particular aim of inspections shall be the verification of the absence of any Schedule 1 chemical, especially its production, except if in accordance with Part VI of this Annex. _Inspection procedures_ 15. In addition to agreed guidelines, other relevant provisions of this Annex and the Confidentiality Annex, paragraphs 16 to 20 below shall apply. 16. There shall be no facility agreement, unless requested by the inspected State Party. 17. The focus of inspection at a plant site selected for inspection shall be the plant(s) producing the chemicals specified in paragraph 1, in particular the PSF-plants listed pursuant to paragraph 1 (b). The inspected State Party shall have the right to manage access to these plants in accordance with the rules of managed access as specified in Part X, Section C, of this Annex. If the inspection team, in accordance with Part II, paragraph 51, of this Annex, requests access to other parts of the plant site for clarification of ambiguities, the extent of such access shall be agreed between the inspection team and the inspected State Party. 18. The inspection team may have access to records in situations in which the inspection team and the inspected State Party agree that such access will assist in achieving the objectives of the inspection. 19. Sampling and on-site analysis may be undertaken to check for the absence of undeclared scheduled chemicals. In cases of unresolved ambiguities, samples may be analysed in a designated offsite laboratory, subject to the inspected State Party’s agreement. 20. The period of inspection shall not last more than 24 hours; however, extensions may be agreed between the inspection team and the inspected State Party. _Notification of inspection_ 21. A State Party shall be notified by the Technical Secretariat of the inspection not less than 120 hours before the arrival of the inspection team at the plant site to be inspected. ----- C. IMPLEMENTATION AND REVIEW OF SECTION B _Implementation_ 22. The implementation of Section B shall start at the beginning of the fourth year after entry into force of this Convention unless the Conference, at its regular session in the third year after entry into force of this Convention, decides otherwise. 23. The Director-General shall, for the regular session of the Conference in the third year after entry into force of this Convention, prepare a report which outlines the experience of the Technical Secretariat in implementing the provisions of Parts VII and VIII of this Annex as well as of Section A of this Part. 24. At its regular session in the third year after entry into force of this Convention, the Conference, on the basis of a report of the Director-General, may also decide on the distribution of resources available for verification under Section B between “PSF-plants” and other chemical production facilities. Otherwise, this distribution shall be left to the expertise of the Technical Secretariat and be added to the weighting factors in paragraph 11. 25. At its regular session in the third year after entry into force of this Convention, the Conference, upon advice of the Executive Council, shall decide on which basis (e.g. regional) proposals by States Parties for inspections should be presented to be taken into account as a weighting factor in the selection process specified in paragraph 11. _Review_ 26. At the first special session of the Conference convened pursuant to Article VIII, paragraph 22, the provisions of this Part of the Verification Annex shall be re-examined in the light of a comprehensive review of the overall verification regime for the chemical industry (Article VI, Parts VII to IX of this Annex) on the basis of the experience gained. The Conference shall then make recommendations so as to improve the effectiveness of the verification regime. ----- PART X CHALLENGE INSPECTIONS PURSUANT TO ARTICLE IX A. DESIGNATION AND SELECTION OF INSPECTORS AND INSPECTION ASSISTANTS 1. Challenge inspections pursuant to Article IX shall only be performed by inspectors and inspection assistants especially designated for this function. In order to designate inspectors and inspection assistants for challenge inspections pursuant to Article IX, the Director-General shall, by selecting inspectors and inspection assistants from among the inspectors and inspection assistants for routine inspection activities, establish a list of proposed inspectors and inspection assistants. It shall comprise a sufficiently large number of inspectors and inspection assistants having the necessary qualification, experience, skill and training, to allow for flexibility in the selection of the inspectors, taking into account their availability, and the need for rotation. Due regard shall be paid also to the importance of selecting inspectors and inspection assistants on as wide a geographical basis as possible. The designation of inspectors and inspection assistants shall follow the procedures provided for under Part II, Section A, of this Annex. 2. The Director-General shall determine the size of the inspection team and select its members taking into account the circumstances of a particular request. The size of the inspection team shall be kept to a minimum necessary for the proper fulfilment of the inspection mandate. No national of the requesting State Party or the inspected State Party shall be a member of the inspection team. B. PRE-INSPECTION ACTIVITIES 3. Before submitting the inspection request for a challenge inspection, the State Party may seek confirmation from the Director-General that the Technical Secretariat is in a position to take immediate action on the request. If the Director-General cannot provide such confirmation immediately, he shall do so at the earliest opportunity, in keeping with the order of requests for confirmation. He shall also keep the State Party informed of when it is likely that immediate action can be taken. Should the DirectorGeneral reach the conclusion that timely action on requests can no longer be taken, he may ask the Executive Council to take appropriate action to improve the situation in the future. _Notification_ 4. The inspection request for a challenge inspection to be submitted to the Executive Council and the Director-General shall contain at least the following information: (a) The State Party to be inspected and, if applicable, the Host State; (b) The point of entry to be used; (c) The size and type of the inspection site; (d) The concern regarding possible non-compliance with this Convention including a specification of the relevant provisions of this Convention about which the concern has arisen, and of the nature and circumstances of the possible non-compliance as well as all appropriate information on the basis of which the concern has arisen; and (e) The name of the observer of the requesting State Party. The requesting State Party may submit any additional information it deems necessary. 5. The Director-General shall within one hour acknowledge to the requesting State Party receipt of its request. 6. The requesting State Party shall notify the Director-General of the location of the inspection site in due time for the Director-General to be able to provide this information to the inspected State Party not less than 12 hours before the planned arrival of the inspection team at the point of entry. 7. The inspection site shall be designated by the requesting State Party as specifically as possible by providing a site diagram related to a reference point with geographic coordinates, specified to the nearest second if possible. If possible, the requesting State Party shall also provide a map with a general indication of the inspection site and a diagram specifying as precisely as possible the requested perimeter of the site to be inspected. 8. The requested perimeter shall: (a) Run at least a 10 metre distance outside any buildings or other structures; ----- (b) Not cut through existing security enclosures; and (c) Run at least a 10 metre distance outside any existing security enclosures that the requesting State Party intends to include within the requested perimeter. 9. If the requested perimeter does not conform with the specifications of paragraph 8, it shall be redrawn by the inspection team so as to conform with that provision. 10. The Director-General shall, not less than 12 hours before the planned arrival of the inspection team at the point of entry, inform the Executive Council about the location of the inspection site as specified in paragraph 7. 11. Contemporaneously with informing the Executive Council according to paragraph 10, the Director-General shall transmit the inspection request to the inspected State Party including the location of the inspection site as specified in paragraph 7. This notification shall also include the information specified in Part II, paragraph 32, of this Annex. 12. Upon arrival of the inspection team at the point of entry, the inspected State Party shall be informed by the inspection team of the inspection mandate. _Entry into the territory of the inspected State Party or the Host State_ 13. The Director-General shall, in accordance with Article IX, paragraphs 13 to 18, dispatch an inspection team as soon as possible after an inspection request has been received. The inspection team shall arrive at the point of entry specified in the request in the minimum time possible, consistent with the provisions of paragraphs 10 and 11. 14. If the requested perimeter is acceptable to the inspected State Party, it shall be designated as the final perimeter as early as possible, but in no case later than 24 hours after the arrival of the inspection team at the point of entry. The inspected State Party shall transport the inspection team to the final perimeter of the inspection site. If the inspected State Party deems it necessary, such transportation may begin up to 12 hours before the expiry of the time period specified in this paragraph for the designation of the final perimeter. Transportation shall, in any case, be completed not later than 36 hours after the arrival of the inspection team at the point of entry. 15. For all declared facilities, the procedures in subparagraphs (a) and (b) shall apply. [For the purposes of this Part, “declared facility” means all facilities declared pursuant to Articles III, IV, and V. With regard to Article VI, “declared facility” means only facilities declared pursuant to Part VI of this Annex, as well as declared plants specified by declarations pursuant to Part VII, paragraphs 7 and 10 (c), and Part VIII, paragraphs 7 and 10(c), of this Annex]: (a) If the requested perimeter is contained within or conforms with the declared perimeter, the declared perimeter shall be considered the final perimeter. The final perimeter may, however, if agreed by the inspected State Party, be made smaller in order to conform with the perimeter requested by the requesting State Party. (b) The inspected State Party shall transport the inspection team to the final perimeter as soon as practicable, but in any case shall ensure their arrival at the perimeter not later than 24 hours after the arrival of the inspection team at the point of entry. _Alternative determination of final perimeter_ 16. At the point of entry, if the inspected State Party cannot accept the requested perimeter, it shall propose an alternative perimeter as soon as possible, but in any case not later than 24 hours after the arrival of the inspection team at the point of entry. In case of differences of opinion, the inspected State Party and the inspection team shall engage in negotiations with the aim of reaching agreement on a final perimeter. 17. The alternative perimeter should be designated as specifically as possible in accordance with paragraph 8. It shall include the whole of the requested perimeter and should, as a rule, bear a close relationship to the latter, taking into account natural terrain features and man-made boundaries. It should normally run close to the surrounding security barrier if such a barrier exists. The inspected State Party ----- should seek to establish such a relationship between the perimeters by a combination of at least two of the following means: (a) An alternative perimeter that does not extend to an area significantly greater than that of the requested perimeter; (b) An alternative perimeter that is a short, uniform distance from the requested perimeter; (c) At least part of the requested perimeter is visible from the alternative perimeter. 18. If the alternative perimeter is acceptable to the inspection team, it shall become the final perimeter and the inspection team shall be transported from the point of entry to that perimeter. If the inspected State Party deems it necessary, such transportation may begin up to 12 hours before the expiry of the time period specified in paragraph 16 for proposing an alternative perimeter. Transportation shall, in any case, be completed not later than 36 hours after the arrival of the inspection team at the point of entry. 19. If a final perimeter is not agreed, the perimeter negotiations shall be concluded as early as possible, but in no case shall they continue more than 24 hours after the arrival of the inspection team at the point of entry. If no agreement is reached, the inspected State Party shall transport the inspection team to a location at the alternative perimeter. If the inspected State Party deems it necessary, such transportation may begin up to 12 hours before the expiry of the time period specified in paragraph 16 for proposing an alternative perimeter. Transportation shall, in any case, be completed not later than 36 hours after the arrival of the inspection team at the point of entry. 20. Once at the location, the inspected State Party shall provide the inspection team with prompt access to the alternative perimeter to facilitate negotiations and agreement on the final perimeter and access within the final perimeter. 21. If no agreement is reached within 72 hours after the arrival of the inspection team at the location, the alternative perimeter shall be designated the final perimeter. _Verification of location_ 22. To help establish that the inspection site to which the inspection team has been transported corresponds to the inspection site specified by the requesting State Party, the inspection team shall have the right to use approved location-finding equipment and have such equipment installed according to its directions. The inspection team may verify its location by reference to local landmarks identified from maps. The inspected State Party shall assist the inspection team in this task. _Securing the site, exit monitoring_ 23. Not later than 12 hours after the arrival of the inspection team at the point of entry, the inspected State Party shall begin collecting factual information of all vehicular exit activity from all exit points for all land, air, and water vehicles of the requested perimeter. It shall provide this information to the inspection team upon its arrival at the alternative or final perimeter, whichever occurs first. 24. This obligation may be met by collecting factual information in the form of traffic logs, photographs, video recordings, or data from chemical evidence equipment provided by the inspection team to monitor such exit activity. Alternatively, the inspected State Party may also meet this obligation by allowing one or more members of the inspection team independently to maintain traffic logs, take photographs, make video recordings of exit traffic, or use chemical evidence equipment, and conduct other activities as may be agreed between the inspected State Party and the inspection team. 25. Upon the inspection team’s arrival at the alternative perimeter or final perimeter, whichever occurs first, securing the site, which means exit monitoring procedures by the inspection team, shall begin. 26. Such procedures shall include: the identification of vehicular exits, the making of traffic logs, the taking of photographs, and the making of video recordings by the inspection team of exits and exit traffic. The inspection team has the right to go, under escort, to any other part of the perimeter to check that there is no other exit activity. 27. Additional procedures for exit monitoring activities as agreed upon by the inspection team and the inspected State Party may include, inter alia: (a) Use of sensors; (b) Random selective access; (c) Sample analysis. ----- 28. All activities for securing the site and exit monitoring shall take place within a band around the outside of the perimeter, not exceeding 50 metres in width, measured outward. 29. The inspection team has the right to inspect on a managed access basis vehicular traffic exiting the site. The inspected State Party shall make every reasonable effort to demonstrate to the inspection team that any vehicle, subject to inspection, to which the inspection team is not granted full access, is not being used for purposes related to the possible non-compliance concerns raised in the inspection request. 30. Personnel and vehicles entering and personnel and personal passenger vehicles exiting the site are not subject to inspection. 31. The application of the above procedures may continue for the duration of the inspection, but may not unreasonably hamper or delay the normal operation of the facility. _Pre-inspection briefing and inspection plan_ 32. To facilitate development of an inspection plan, the inspected State Party shall provide a safety and logistical briefing to the inspection team prior to access. 33. The pre-inspection briefing shall be held in accordance with Part II, paragraph 37, of this Annex. In the course of the pre-inspection briefing, the inspected State Party may indicate to the inspection team the equipment, documentation, or areas it considers sensitive and not related to the purpose of the challenge inspection. In addition, personnel responsible for the site shall brief the inspection team on the physical layout and other relevant characteristics of the site. The inspection team shall be provided with a map or sketch drawn to scale showing all structures and significant geographic features at the site. The inspection team shall also be briefed on the availability of facility personnel and records. 34. After the pre-inspection briefing, the inspection team shall prepare, on the basis of the information available and appropriate to it, an initial inspection plan which specifies the activities to be carried out by the inspection team, including the specific areas of the site to which access is desired. The inspection plan shall also specify whether the inspection team will be divided into subgroups. The inspection plan shall be made available to the representatives of the inspected State Party and the inspection site. Its implementation shall be consistent with the provisions of Section C, including those related to access and activities. _Perimeter activities_ 35. Upon the inspection team’s arrival at the final or alternative perimeter, whichever occurs first, the team shall have the right to commence immediately perimeter activities in accordance with the procedures set forth under this Section, and to continue these activities until the completion of the challenge inspection. 36. In conducting the perimeter activities, the inspection team shall have the right to: (a) Use monitoring instruments in accordance with Part II, paragraphs 27 to 30, of this Annex; (b) Take wipes, air, soil or effluent samples; and (c) Conduct any additional activities which may be agreed between the inspection team and the inspected State Party. 37. The perimeter activities of the inspection team may be conducted within a band around the outside of the perimeter up to 50 metres in width measured outward from the perimeter. If the inspected State Party agrees, the inspection team may also have access to any building or structure within the perimeter band. All directional monitoring shall be oriented inward. For declared facilities, at the discretion of the inspected State Party, the band could run inside, outside, or on both sides of the declared perimeter. C. CONDUCT OF INSPECTIONS _General rules_ 38. The inspected State Party shall provide access within the requested perimeter as well as, if different, the final perimeter. The extent and nature of access to a particular place or places within these perimeters shall be negotiated between the inspection team and the inspected State Party on a managed access basis. ----- 39. The inspected State Party shall provide access within the requested perimeter as soon as possible, but in any case not later than 108 hours after the arrival of the inspection team at the point of entry in order to clarify the concern regarding possible non-compliance with this Convention raised in the inspection request. 40. Upon the request of the inspection team, the inspected State Party may provide aerial access to the inspection site. 41. In meeting the requirement to provide access as specified in paragraph 38, the inspected State Party shall be under the obligation to allow the greatest degree of access taking into account any constitutional obligations it may have with regard to proprietary rights or searches and seizures. The inspected State Party has the right under managed access to take such measures as are necessary to protect national security. The provisions in this paragraph may not be invoked by the inspected State Party to conceal evasion of its obligations not to engage in activities prohibited under this Convention. 42. If the inspected State Party provides less than full access to places, activities, or information, it shall be under the obligation to make every reasonable effort to provide alternative means to clarify the possible non-compliance concern that generated the challenge inspection. 43. Upon arrival at the final perimeter of facilities declared pursuant to Articles IV, V and VI, access shall be granted following the pre-inspection briefing and discussion of the inspection plan which shall be limited to the minimum necessary and in any event shall not exceed three hours. For facilities declared pursuant to Article III, paragraph 1 (d), negotiations shall be conducted and managed access commenced not later than 12 hours after arrival at the final perimeter. 44. In carrying out the challenge inspection in accordance with the inspection request, the inspection team shall use only those methods necessary to provide sufficient relevant facts to clarify the concern about possible non-compliance with the provisions of this Convention, and shall refrain from activities not relevant thereto. It shall collect and document such facts as are related to the possible non-compliance with this Convention by the inspected State Party, but shall neither seek nor document information which is clearly not related thereto, unless the inspected State Party expressly requests it to do so. Any material collected and subsequently found not to be relevant shall not be retained. 45. The inspection team shall be guided by the principle of conducting the challenge inspection in the least intrusive manner possible, consistent with the effective and timely accomplishment of its mission. Wherever possible, it shall begin with the least intrusive procedures it deems acceptable and proceed to more intrusive procedures only as it deems necessary. _Managed access_ 46. The inspection team shall take into consideration suggested modifications of the inspection plan and proposals which may be made by the inspected State Party, at whatever stage of the inspection including the pre-inspection briefing, to ensure that sensitive equipment, information or areas, not related to chemical weapons, are protected. 47. The inspected State Party shall designate the perimeter entry/exit points to be used for access. The inspection team and the inspected State Party shall negotiate: the extent of access to any particular place or places within the final and requested perimeters as provided in paragraph 48; the particular inspection activities, including sampling, to be conducted by the inspection team; the performance of particular activities by the inspected State Party; and the provision of particular information by the inspected State Party. 48. In conformity with the relevant provisions in the Confidentiality Annex the inspected State Party shall have the right to take measures to protect sensitive installations and prevent disclosure of confidential information and data not related to chemical weapons. Such measures may include, _inter_ _alia:_ (a) Removal of sensitive papers from office spaces; (b) Shrouding of sensitive displays, stores, and equipment; (c) Shrouding of sensitive pieces of equipment, such as computer or electronic systems; (d) Logging off of computer systems and turning off of data indicating devices; ----- (e) Restriction of sample analysis to presence or absence of chemicals listed in Schedules 1, 2 and 3 or appropriate degradation products; (f) Using random selective access techniques whereby the inspectors are requested to select a given percentage or number of buildings of their choice to inspect; the same principle can apply to the interior and content of sensitive buildings; (g) In exceptional cases, giving only individual inspectors access to certain parts of the inspection site. 49. The inspected State Party shall make every reasonable effort to demonstrate to the inspection team that any object, building, structure, container or vehicle to which the inspection team has not had full access, or which has been protected in accordance with paragraph 48, is not used for purposes related to the possible non-compliance concerns raised in the inspection request. 50. This may be accomplished by means of, _inter alia, the partial removal of a shroud or_ environmental protection cover, at the discretion of the inspected State Party, by means of a visual inspection of the interior of an enclosed space from its entrance, or by other methods. 51. In the case of facilities declared pursuant to Articles IV, V and VI, the following shall apply: (a) For facilities with facility agreements, access and activities within the final perimeter shall be unimpeded within the boundaries established by the agreements; (b) For facilities without facility agreements, negotiation of access and activities shall be governed by the applicable general inspection guidelines established under this Convention; (c) Access beyond that granted for inspections under Articles IV, V and VI shall be managed in accordance with procedures of this section. 52. In the case of facilities declared pursuant to Article III, paragraph 1 (d), the following shall apply: if the inspected State Party, using procedures of paragraphs 47 and 48, has not granted full access to areas or structures not related to chemical weapons, it shall make every reasonable effort to demonstrate to the inspection team that such areas or structures are not used for purposes related to the possible noncompliance concerns raised in the inspection request. _Observer_ 53. In accordance with the provisions of Article IX, paragraph 12, on the participation of an observer in the challenge inspection, the requesting State Party shall liaise with the Technical Secretariat to coordinate the arrival of the observer at the same point of entry as the inspection team within a reasonable period of the inspection team’s arrival. 54. The observer shall have the right throughout the period of inspection to be in communication with the embassy of the requesting State Party located in the inspected State Party or in the Host State or, in the case of absence of an embassy, with the requesting State Party itself. The inspected State Party shall provide means of communication to the observer. 55. The observer shall have the right to arrive at the alternative or final perimeter of the inspection site, wherever the inspection team arrives first, and to have access to the inspection site as granted by the inspected State Party. The observer shall have the right to make recommendations to the inspection team, which the team shall take into account to the extent it deems appropriate. Throughout the inspection, the inspection team shall keep the observer informed about the conduct of the inspection and the findings. 56. Throughout the in-country period, the inspected State Party shall provide or arrange for the amenities necessary for the observer such as communication means, interpretation services, transportation, working space, lodging, meals and medical care. All the costs in connection with the stay of the observer on the territory of the inspected State Party or the Host State shall be borne by the requesting State Party. _Duration of inspection_ 57. The period of inspection shall not exceed 84 hours, unless extended by agreement with the inspected State Party. ----- D. POST-INSPECTION ACTIVITIES _Departure_ 58. Upon completion of the post-inspection procedures at the inspection site, the inspection team and the observer of the requesting State Party shall proceed promptly to a point of entry and shall then leave the territory of the inspected State Party in the minimum time possible. _Reports_ 59. The inspection report shall summarize in a general way the activities conducted by the inspection team and the factual findings of the inspection team, particularly with regard to the concerns regarding possible non-compliance with this Convention cited in the request for the challenge inspection, and shall be limited to information directly related to this Convention. It shall also include an assessment by the inspection team of the degree and nature of access and cooperation granted to the inspectors and the extent to which this enabled them to fulfil the inspection mandate. Detailed information relating to the concerns regarding possible non-compliance with this Convention cited in the request for the challenge inspection shall be submitted as an Appendix to the final report and be retained within the Technical Secretariat under appropriate safeguards to protect sensitive information. 60. The inspection team shall, not later than 72 hours after its return to its primary work location, submit a preliminary inspection report, having taken into account, _inter alia, paragraph 17 of the_ Confidentiality Annex, to the Director-General. The Director-General shall promptly transmit the preliminary inspection report to the requesting State Party, the inspected State Party and to the Executive Council. 61. A draft final inspection report shall be made available to the inspected State Party not later than 20 days after the completion of the challenge inspection. The inspected State Party has the right to identify any information and data not related to chemical weapons which should, in its view, due to its confidential character, not be circulated outside the Technical Secretariat. The Technical Secretariat shall consider proposals for changes to the draft final inspection report made by the inspected State Party and, using its own discretion, wherever possible, adopt them. The final report shall then be submitted not later than 30 days after the completion of the challenge inspection to the Director-General for further distribution and consideration in accordance with Article IX, paragraphs 21 to 25. ----- PART XI INVESTIGATIONS IN CASES OF ALLEGED USE OF CHEMICAL WEAPONS A. GENERAL 1. Investigations of alleged use of chemical weapons, or of alleged use of riot control agents as a method of warfare, initiated pursuant to Articles IX or X, shall be conducted in accordance with this Annex and detailed procedures to be established by the Director-General. 2. The following additional provisions address specific procedures required in cases of alleged use of chemical weapons. B. PRE-INSPECTION ACTIVITIES _Request for an investigation_ 3. The request for an investigation of an alleged use of chemical weapons to be submitted to the Director-General, to the extent possible, should include the following information: (a) The State Party on whose territory use of chemical weapons is alleged to have taken place; (b) The point of entry or other suggested safe routes of access; (c) Location and characteristics of the areas where chemical weapons are alleged to have been used; (d) When chemical weapons are alleged to have been used; (e) Types of chemical weapons believed to have been used; (f) Extent of alleged use; (g) Characteristics of the possible toxic chemicals; (h) Effects on humans, animals and vegetation; (i) Request for specific assistance, if applicable. 4. The State Party which has requested an investigation may submit at any time any additional information it deems necessary. _Notification_ 5. The Director-General shall immediately acknowledge receipt to the requesting State Party of its request and inform the Executive Council and all States Parties. 6. If applicable, the Director-General shall notify the State Party on whose territory an investigation has been requested. The Director-General shall also notify other States Parties if access to their territories might be required during the investigation. _Assignment of inspection team_ 7. The Director-General shall prepare a list of qualified experts whose particular field of expertise could be required in an investigation of alleged use of chemical weapons and constantly keep this list updated. This list shall be communicated, in writing, to each State Party not later than 30 days after entry into force of this Convention and after each change to the list. Any qualified expert included in this list shall be regarded as designated unless a State Party, not later than 30 days after its receipt of the list, declares its non-acceptance in writing. 8. The Director-General shall select the leader and members of an inspection team from the inspectors and inspection assistants already designated for challenge inspections taking into account the circumstances and specific nature of a particular request. In addition, members of the inspection team may be selected from the list of qualified experts when, in the view of the Director-General, expertise not available among inspectors already designated is required for the proper conduct of a particular investigation. 9. When briefing the inspection team, the Director-General shall include any additional information provided by the requesting State Party, or any other sources, to ensure that the inspection can be carried out in the most effective and expedient manner. ----- _Dispatch of inspection team_ 10. Immediately upon the receipt of a request for an investigation of alleged use of chemical weapons the Director-General shall, through contacts with the relevant States Parties, request and confirm arrangements for the safe reception of the team. 11. The Director-General shall dispatch the team at the earliest opportunity, taking into account the safety of the team. 12. If the inspection team has not been dispatched within 24 hours from the receipt of the request, the Director-General shall inform the Executive Council and the States Parties concerned about the reasons for the delay. _Briefings_ 13. The inspection team shall have the right to be briefed by representatives of the inspected State Party upon arrival and at any time during the inspection. 14. Before the commencement of the inspection the inspection team shall prepare an inspection plan to serve, inter alia, as a basis for logistic and safety arrangements. The inspection plan shall be updated as need arises. C. CONDUCT OF INSPECTIONS _Access_ 15. The inspection team shall have the right of access to any and all areas which could be affected by the alleged use of chemical weapons. It shall also have the right of access to hospitals, refugee camps and other locations it deems relevant to the effective investigation of the alleged use of chemical weapons. For such access, the inspection team shall consult with the inspected State Party. _Sampling_ 16. The inspection team shall have the right to collect samples of types, and in quantities it considers necessary. If the inspection team deems it necessary, and if so requested by it, the inspected State Party shall assist in the collection of samples under the supervision of inspectors or inspection assistants. The inspected State Party shall also permit and cooperate in the collection of appropriate control samples from areas neighbouring the site of the alleged use and from other areas as requested by the inspection team. 17. Samples of importance in the investigation of alleged use include toxic chemicals, munitions and devices, remnants of munitions and devices, environmental samples (air, soil, vegetation, water, snow, etc.) and biomedical samples from human or animal sources (blood, urine, excreta, tissue, etc.). 18. If duplicate samples cannot be taken and the analysis is performed at off-site laboratories, any remaining sample shall, if so requested, be returned to the inspected State Party after the completion of the analysis. _Extension of inspection site_ 19. If the inspection team during an inspection deems it necessary to extend the investigation into a neighbouring State Party, the Director-General shall notify that State Party about the need for access to its territory and request and confirm arrangements for the safe reception of the team. _Extension of inspection duration_ 20. If the inspection team deems that safe access to a specific area relevant to the investigation is not possible, the requesting State Party shall be informed immediately. If necessary, the period of inspection shall be extended until safe access can be provided and the inspection team will have concluded its mission. _Interviews_ 21. The inspection team shall have the right to interview and examine persons who may have been affected by the alleged use of chemical weapons. It shall also have the right to interview eyewitnesses of the alleged use of chemical weapons and medical personnel, and other persons who have treated or have come into contact with persons who may have been affected by the alleged use of chemical weapons. The inspection team shall have access to medical histories, if available, and be permitted to participate in autopsies, as appropriate, of persons who may have been affected by the alleged use of chemical weapons. ----- D. REPORTS _Procedures_ 22. The inspection team shall, not later than 24 hours after its arrival on the territory of the inspected State Party, send a situation report to the Director-General. It shall further throughout the investigation send progress reports as necessary. 23. The inspection team shall, not later than 72 hours after its return to its primary work location, submit a preliminary report to the Director-General. The final report shall be submitted to the DirectorGeneral not later than 30 days after its return to its primary work location. The Director-General shall promptly transmit the preliminary and final reports to the Executive Council and to all States Parties. _Contents_ 24. The situation report shall indicate any urgent need for assistance and any other relevant information. The progress reports shall indicate any further need for assistance that might be identified during the course of the investigation. 25. The final report shall summarize the factual findings of the inspection, particularly with regard to the alleged use cited in the request. In addition, a report of an investigation of an alleged use shall include a description of the investigation process, tracing its various stages, with special reference to: (a) The locations and time of sampling and on-site analyses; and (b) Supporting evidence, such as the records of interviews, the results of medical examinations and scientific analyses, and the documents examined by the inspection team. 26. If the inspection team collects through, _inter alia, identification of any impurities or other_ substances during laboratory analysis of samples taken, any information in the course of its investigation that might serve to identify the origin of any chemical weapons used, that information shall be included in the report. E. STATES NOT PARTY TO THIS CONVENTION 27. In the case of alleged use of chemical weapons involving a State not Party to this Convention or in territory not controlled by a State Party, the Organization shall closely cooperate with the SecretaryGeneral of the United Nations. If so requested, the Organization shall put its resources at the disposal of the Secretary-General of the United Nations. ----- ANNEX ON THE PROTECTION OF CONFIDENTIAL INFORMATION (“CONFIDENTIALITY ANNEX”) A. GENERAL PRINCIPLES FOR THE HANDLING OF CONFIDENTIAL INFORMATION 1. The obligation to protect confidential information shall pertain to the verification of both civil and military activities and facilities. Pursuant to the general obligations set forth in Article VIII, the Organization shall: (a) Require only the minimum amount of information and data necessary for the timely and efficient carrying out of its responsibilities under this Convention; (b) Take the necessary measures to ensure that inspectors and other staff members of the Technical Secretariat meet the highest standards of efficiency, competence, and integrity; (c) Develop agreements and regulations to implement the provisions of this Convention and shall specify as precisely as possible the information to which the Organization shall be given access by a State Party. 2. The Director-General shall have the primary responsibility for ensuring the protection of confidential information. The Director-General shall establish a stringent regime governing the handling of confidential information by the Technical Secretariat, and in doing so, shall observe the following guidelines: (a) Information shall be considered confidential if: (i) It is so designated by the State Party from which the information was obtained and to which the information refers; or (ii) In the judgment of the Director-General, its unauthorized disclosure could reasonably be expected to cause damage to the State Party to which it refers or to the mechanisms for implementation of this Convention; (b) All data and documents obtained by the Technical Secretariat shall be evaluated by the appropriate unit of the Technical Secretariat in order to establish whether they contain confidential information. Data required by States Parties to be assured of the continued compliance with this Convention by other States Parties shall be routinely provided to them. Such data shall encompass: (i) The initial and annual reports and declarations provided by States Parties under Articles III, IV, V and VI, in accordance with the provisions set forth in the Verification Annex; (ii) General reports on the results and effectiveness of verification activities; and (iii) Information to be supplied to all States Parties in accordance with the provisions of this Convention; (c) No information obtained by the Organization in connection with the implementation of this Convention shall be published or otherwise released, except, as follows: (i) General information on the implementation of this Convention may be compiled and released publicly in accordance with the decisions of the Conference or the Executive Council; (ii) Any information may be released with the express consent of the State Party to which the information refers; (iii) Information classified as confidential shall be released by the Organization only through procedures which ensure that the release of information only occurs in strict conformity with the needs of this Convention. Such procedures shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i); (d) The level of sensitivity of confidential data or documents shall be established, based on criteria to be applied uniformly in order to ensure their appropriate handling and protection. For this purpose, a classification system shall be introduced, which by taking account of relevant work undertaken in the preparation of this Convention shall provide for clear criteria ensuring the inclusion of information into appropriate categories of confidentiality and the justified durability of the confidential nature of information. While providing for the necessary flexibility in its implementation the classification system shall protect the rights of States Parties providing confidential information. ----- A classification system shall be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i); (e) Confidential information shall be stored securely at the premises of the Organization. Some data or documents may also be stored with the National Authority of a State Party. Sensitive information, including, _inter alia, photographs, plans and other documents required only for the_ inspection of a specific facility may be kept under lock and key at this facility; (f) To the greatest extent consistent with the effective implementation of the verification provisions of this Convention, information shall be handled and stored by the Technical Secretariat in a form that precludes direct identification of the facility to which it pertains; (g) The amount of confidential information removed from a facility shall be kept to the minimum necessary for the timely and effective implementation of the verification provisions of this Convention; and (h) Access to confidential information shall be regulated in accordance with its classification. The dissemination of confidential information within the Organization shall be strictly on a need-to-know basis. 3. The Director-General shall report annually to the Conference on the implementation of the regime governing the handling of confidential information by the Technical Secretariat. 4. Each State Party shall treat information which it receives from the Organization in accordance with the level of confidentiality established for that information. Upon request, a State Party shall provide details on the handling of information provided to it by the Organization. B. EMPLOYMENT AND CONDUCT OF PERSONNEL IN THE TECHNICAL SECRETARIAT 5. Conditions of staff employment shall be such as to ensure that access to and handling of confidential information shall be in conformity with the procedures established by the Director-General in accordance with Section A. 6. Each position in the Technical Secretariat shall be governed by a formal position description that specifies the scope of access to confidential information, if any, needed in that position. 7. The Director-General, the inspectors and the other members of the staff shall not disclose even after termination of their functions to any unauthorized persons any confidential information coming to their knowledge in the performance of their official duties. They shall not communicate to any State, Organization or person outside the Technical Secretariat any information to which they have access in connection with their activities in relation to any State Party. 8. In the discharge of their functions inspectors shall only request the information and data which are necessary to fulfil their mandate. They shall not make any records of information collected incidentally and not related to verification of compliance with this Convention. 9. The staff shall enter into individual secrecy agreements with the Technical Secretariat covering their period of employment and a period of five years after it is terminated. 10. In order to avoid improper disclosures, inspectors and staff members shall be appropriately advised and reminded about security considerations and of the possible penalties that they would incur in the event of improper disclosure. 11. Not less than 30 days before an employee is given clearance for access to confidential information that refers to activities on the territory or in any other place under the jurisdiction or control of a State Party, the State Party concerned shall be notified of the proposed clearance. For inspectors the notification of a proposed designation shall fulfil this requirement. 12. In evaluating the performance of inspectors and any other employees of the Technical Secretariat, specific attention shall be given to the employee’s record regarding protection of confidential information. C. MEASURES TO PROTECT SENSITIVE INSTALLATIONS AND PREVENT DISCLOSURE OF CONFIDENTIAL DATA IN THE COURSE OF ON-SITE VERIFICATION ACTIVITIES 13. States Parties may take such measures as they deem necessary to protect confidentiality, provided that they fulfil their obligations to demonstrate compliance in accordance with the relevant Articles and the Verification Annex. When receiving an inspection, the State Party may indicate to the inspection team ----- the equipment, documentation or areas that it considers sensitive and not related to the purpose of the inspection. 14. Inspection teams shall be guided by the principle of conducting on-site inspections in the least intrusive manner possible consistent with the effective and timely accomplishment of their mission. They shall take into consideration proposals which may be made by the State Party receiving the inspection, at whatever stage of the inspection, to ensure that sensitive equipment or information, not related to chemical weapons, is protected. 15. Inspection teams shall strictly abide by the provisions set forth in the relevant Articles and Annexes governing the conduct of inspections. They shall fully respect the procedures designed to protect sensitive installations and to prevent the disclosure of confidential data. 16. In the elaboration of arrangements and facility agreements, due regard shall be paid to the requirement of protecting confidential information. Agreements on inspection procedures for individual facilities shall also include specific and detailed arrangements with regard to the determination of those areas of the facility to which inspectors are granted access, the storage of confidential information on-site, the scope of the inspection effort in agreed areas, the taking of samples and their analysis, the access to records and the use of instruments and continuous monitoring equipment. 17. The report to be prepared after each inspection shall only contain facts relevant to compliance with this Convention. The report shall be handled in accordance with the regulations established by the Organization governing the handling of confidential information. If necessary, the information contained in the report shall be processed into less sensitive forms before it is transmitted outside the Technical Secretariat and the inspected State Party. D. PROCEDURES IN CASE OF BREACHES OR ALLEGED BREACHES OF CONFIDENTIALITY 18. The Director-General shall establish necessary procedures to be followed in case of breaches or alleged breaches of confidentiality, taking into account recommendations to be considered and approved by the Conference pursuant to Article VIII, paragraph 21 (i). 19. The Director-General shall oversee the implementation of individual secrecy agreements. The Director-General shall promptly initiate an investigation if, in his judgment, there is sufficient indication that obligations concerning the protection of confidential information have been violated. The DirectorGeneral shall also promptly initiate an investigation if an allegation concerning a breach of confidentiality is made by a State Party. 20. The Director-General shall impose appropriate punitive and disciplinary measures on staff members who have violated their obligations to protect confidential information. In cases of serious breaches, the immunity from jurisdiction may be waived by the Director-General. 21. States Parties shall, to the extent possible, cooperate and support the Director-General in investigating any breach or alleged breach of confidentiality and in taking appropriate action in case a breach has been established. 22. The Organization shall not be held liable for any breach of confidentiality committed by members of the Technical Secretariat. 23. For breaches involving both a State Party and the Organization, a “Commission for the settlement of disputes related to confidentiality”, set up as a subsidiary organ of the Conference, shall consider the case. This Commission shall be appointed by the Conference. Rules governing its composition and operating procedures shall be adopted by the Conference at its first session. -----
4-Sep-2000
37
The Semiconductor Integrated Circuits Layout-Design Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/1998/1/200037.pdf
central
# THE SEMICONDUCTOR INTEGRATED CIRCUITS LAYOUT-DESIGN ACT, 2000 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II THE REGISTER AND CONDITIONS OF REGISTRATION 3. Registrar of Semiconductor Integrated Circuits layout-design. 4. Power of Registrar to transfer pending matters. 5. Registry. 6. Register of Layout-Designs. 7. Prohibition of registration of certain layout-designs. CHAPTER III PROCEDURE FOR AND DURATION OF REGISTRATION 8. Application for registration. 9. Withdrawal of acceptance. 10. Advertisement of application. 11. Opposition to registration. 12. Correction and amendment. 13. Registration. 14. Jointly owned layout-design. 15. Duration of registration. CHAPTER IV EFFECT OF REGISTRATION 16. No action of infringement of unregistered layout-design. 17. Rights conferred by registration. 18. Infringement of layout-design. 19. Registration to be prima facie evidence of validity. 1 ----- CHAPTER V ASSIGNMENT AND TRANSMISSION SECTIONS 20. Power of Registered Proprietor to assign and give receipts. 21. Assignability and transmissibility of registered layout-design. 22. Conditions for assignment otherwise than in connection with the goodwill of a business. 23. Registration of assignments and transmissions. CHAPTER VI USE OF LAYOUT-DESIGN AND REGISTERED USERS 24. Registered users. 25. Registration as registered user. 26. Power of Registrar for cancellation of registration as registered user. 27. Power of Registrar to call for information relating to agreement in respect of registered users. 28. Right of registered user to take proceedings against infringement. 29. Registered user not to have right of assignment or transmission. CHAPTER VII RECTIFICATION AND CORRECTION OF THE REGISTER 30. Power to rectify the register. 31. Correction of register. CHAPTER VIII APPELLATE BOARD 32. Establishment of Layout-Design Appellate Board. 33. Composition of Appellate Board. 34. Qualifications for appointment as Chairperson, Vice-Chairperson, or other Members. 35. Term of office of Chairperson, Vice-Chairperson and Members. 36. Vice-Chairperson or senior-most Member to act as Chairperson or discharge his function in certain circumstances. 37. Salaries, allowances and other terms and conditions of service of Chairperson, Vice-Chairperson and other Members. 38. Resignation and removal. 39. Staff of Appellate Board. 40. Application to the Appellate Board to determine royalty. 41. Power of the Board to cancel registration. 42. Appeal to Appellate Board. 43. Procedure and powers of Appellate Board. 44. Bar of jurisdiction of courts, etc. 45. Bar to appear before Appellate Board. 46. Conditions as to making of interim order. 2 ----- SECTIONS 47. Power of Chairperson to transfer cases from one Bench to another. 48. Procedure for application for rectification, etc., before Appellate Board. 49. Appearance of Registrar in legal proceedings. 50. Registrar to refer certain disputes to the Board. 51. Power of the Board to permit certain uses. 52. Costs of Registrar in proceedings before Appellate Board. 53. Appeal. 54. Powers of High Courts to make rules. 55. Transitional provisions. CHAPTER IX OFFENCES, PENALTIES AND PROCEDURE 56. Penalty for infringement of layout-design. 57. Penalty for falsely representing a layout-design as registered. 58. Penalty for improperly describing a place of business as connected with the Semiconductor Integrated Circuits Layout-Design Registry. 59. Penalty for falsification of entries in the register. 60. Forfeiture of goods. 61. Exemption of certain persons employed in ordinary course of business. 62. Procedure where invalidity of registration is pleaded by the accused. 63. Offences by companies. 64. Cognizance of certain offences. 65. Costs of defence or prosecution. 66. Information as to commission of offence. 67. Punishment of abetment in India of acts done out of India. CHAPTER X MISCELLANEOUS 68. Protection of security of India. 69. Protection of action taken in good faith. 70. Certain persons to be public servants. 71. Implied warranty on sale of layout-design, etc. 72. Powers of Registrar. 73. Exercise of discretionary power by Registrar. 74. Evidence before Registrar. 75. Death of party to a proceeding. 76. Extention of time. 77. Abandonment. 78. Preliminary advice by the Registrar. 79. Registered user to be impleaded in certain proceedings. 80. Evidence of entries in register, etc., and things done by the Registrar. 81. Registrar and other officers not compellable to produce register, etc. 82. Certificate of validity. 3 ----- SECTIONS 83. Address for service. 84. Agents. 85. Layout-design registered by an agent or representative without authority. 86. Indexes. 87. Documents open to public inspection. 88. Reports of Registrar to be placed before Parliament. 89. Fees and surcharge. 90. Savings in respect of Chapter IX. 91. Declaration as to ownership of layout-design not registerable under the Registration Act, 1908. 92. Government to be bound. 93. Convention countries. 94. Provision as to reciprocity. 95. Power of Central Government to remove difficulties. 96. Power to make rules. 4 ----- # THE SEMICONDUCTOR INTEGRATED CIRCUITS LAYOUT-DESIGN ACT, 2000 ACT NO. 37 OF 2000 [4th September, 2000.] # An Act to provide for the protection of semiconductor integrated circuits layout-designs and for matters connected therewith or incidental thereto. WHEREAS the Final Act embodying the results of the Uruguay Round of Multilateral Trade Negotiations done at Marrakesh on the 15th day of April, 1994 provides for establishment of the World Trade Organisation; AND WHEREAS the Agreement on Trade Related Aspects of Intellectual Property Rights is part of the said Final Act; AND WHEREAS the Government of India, having ratified the said Final Act, should, inter alia, make provisions for giving effect to section 6 in Part II of the Agreement on Trade Related Aspects of Intellectual Property Rights relating to Layout-Design (Topographies) of Integrated Circuits. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Semiconductor** Integrated Circuits Layout-Design Act, 2000. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unles the context otherwise requires,—** (a) “Appellate Board” means the Appellate Board established under section 32; (b) “assignment” means an assignment in writing by act of the parties concerned; (c) “Bench” means a Bench of the Appellate Board; (d) “Chairperson” means the Chairperson of the Appellate Board; (e) “commercial exploitation”, in relation to Semiconductor Integrated Circuits Layout-Design, means to sell, lease, offer or exhibit for sale or otherwise distribute such semiconductor integrated circuit for any commercial purpose; (f) “convention country” means a country notified as such under section 93; (g) “Judicial Member” means a Member of the Appellate Board appointed as such under this Act, and includes the Chairperson or such Vice-Chairperson who possesses any of the qualifications specified in sub-section (3) of section 34; 1. 1st May, 2004 (Ss. 3 and 5), vide notification No. S.O. 278(E), dated 12th February, 2004, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 15th January, 2014 (Ss. 93 and 94), _vide notification No. S.O. 84(E), dated 10th January, 2014,_ _see Gazette of India,_ Extraordinary, Part II, sec. 3(ii). 5 ----- (h) “layout-design” means a layout of transistors and other circuitry elements and includes lead wires connecting such elements and expressed in any manner in a semiconductor integrated circuit; (i) “Member” means a Judicial Member or a Technical Member of the Appellate Board and includes the Chairperson and the Vice-Chairperson; (j) “notify" means to notify in the Semiconductor Integrated Circuit Journal published by the Registrar; (k) “prescribed” means prescribed by rules made under this Act; (l) “register” means the Register of Layout-Designs referred to in section 6; (m) “registered” (with its grammatical variations) means registered under this Act; (n) “registered layout-design" means a layout-design which is actually on the register; (o) “registered proprietor”, in relation to a layout-design, means the person for the time being entered in the register as proprietor of the layout-design; (p) “registered user” means a person who is for the time being registered as such under section 25; (q) “Registrar” means the Registrar of Semiconductor Integrated Circuits Layout-Design referred to in section 3; (r) “semiconductor integrated circuit” means a product having transistors and other circuitry elements which are inseparably formed on a semiconductor material or an insulating material or inside the semiconductor material and designed to perform an electronic circuitry function; (s) “Technical Member” means a Member of the Appellate Board who is not a Judicial Member and includes the Chairperson or such Vice-Chairperson who possesses any of the qualifications specified in sub-section (4) of section 34; (t) “transmission” means transmission by operation of law, devolution on the personal representation of a deceased person or any other mode of transfer not being assignment; (u) “Vice-Chairperson” means the Vice-Chairperson of the Appellate Board; (v) any reference to the Semiconductor Integrated Circuits Layout-Design Registry shall be construed as including a reference to any office of the Semiconductor Integrated Circuits LayoutDesign Registry. CHAPTER II THE REGISTER AND CONDITIONS OF REGISTRATION **3. Registrar of Semiconductor Integrated Circuits Layout-Design.—(1) The Central Government** may, by notification in the Official Gazette, appoint a person to be known as the Registrar of Semiconductor Integrated Circuits Layout-Design for the purposes of this Act. (2) The Central Government may appoint such other officers with such designation as it thinks fit for the purpose of discharging, under the superintendence and direction of the Registrar, such functions of the Registrar under this Act as he may from time to time authorise them to discharge. **4. Power of Registrar to transfer pending matters.—Without prejudice to the generality of the** provisions of sub-section (2) of section 3, the Registrar may, by order in writing and for reasons to be recorded therein, withdraw any matter pending before an officer appointed under the said sub-section (2) and deal with such matter himself either de novo or from the stage it was so withdrawn or transferred the 6 ----- same to another officer so appointed who may subject to the special direction in the order of transfer deal with the matter either de novo or from the stage it was so transferred. **5. Registry.—(1) For the purposes of this Act, there shall be established a Registry which shall be** known as the Semiconductor Integrated Circuits Layout-Design Registry. (2) The head office of the Semiconductor Integrated Circuits Layout-Design Registry shall be at such place as the Central Government may specify and for the purposes of facilitating the registration of layout-designs, there may be established, at such places as the Central Government may think fit, branch offices of the Semiconductor Integrated Circuits Layout-Design Registry. (3) The Central Government may, by notification in the Official Gazette, define the territorial limits within which an office of the Semiconductor Integrated Circuits Layout-Design Registry may exercise its functions. (4) There shall be seal of the Semiconductor Integrated Circuits Layout-Design Registry. **6. Register of Layout-Designs.—(1) For the purposes of this Act, a record called the Register of** Layout-Designs shall be kept at the head office of the Semiconductor Integrated Circuits Layout-Design Registry wherein shall be entered all registered layout-designs with the names, addresses and descriptions of the proprietor and such other matters related to the registered layout-designs as may be prescribed. (2) Subject to the superintendence and direction of the Central Government, the register shall be kept under the control and management of the Registrar. (3) There shall be kept at each Branch office of the Semiconductor Integrated Circuits Layout-Design Registry a copy of the register and other documents as the Central Government may, by notification in the Official Gazette, direct. **7. Prohibition of registration of certain layout-designs.—(1) A layout-design—** (a) which is not original; or (b) which has been commercially exploited anywhere in India or in a convention country; or (c) which is not inherently distinctive; or (d) which is not inherently capable of being distinguishable from any other registered layout design, shall not be registered as a layout-design: Provided that a layout-design which has been commercially exploited for not more than two years from the date on which an application for its registration has been filed either in India or in a convention country shall be treated as not having been commercially exploited for the purposes of this sub-section. (2) A layout-design shall be considered to be original if it is the result of its creator's own intellectual efforts and is not commonly known to the creators of layout-designs and manufacturers of semiconductor integrated circuits at the time of its creation: Provided that a layout-design consisting of such combination of elements and interconnections that are commonly known among creators of layout-designs and manufacturers of semiconductor integrated circuits shall be considered as original if such combination taken as a whole is the result of its creator's own intellectual efforts. (3) Where an original layout-design has been created in execution of a commission or a contract of employment, the right of registration to such layout-design under this Act shall belong, in the absence of any contractual provision to the contrary, to the person who commissioned the work or to the employer. 7 ----- CHAPTER III PROCEDURE FOR AND DURATION OF REGISTRATION **8. Application for registration.—(1) Any person claiming to be the creator of a layout-design, who** is desirous of registering it, shall apply in writing to the Registrar in the prescribed manner for the registration of his layout-design. (2) Every application under sub-section (1) shall be filed in the office of the Semiconductor Integrated Circuits Layout-Design Registry within whose territorial limits the principal place of business in India of the applicant or in the case of joint application the principal place of business in India of the applicant whose name is first mentioned in the application, as having a place of business in India, is situate: Provided that, where the applicant or any of the joint applicant does not carry on business in India, the application shall be filed in the office of the Semiconductor Integrated Circuits Layout-Design Registry within whose territorial limits the place mentioned in the address for service in India as disclosed in the application is situate. (3) Subject to the provisions of this Act, the Registrar may refuse the application or may accept it absolutely or subject to such amendments or modifications, as he may think fit. **9. Withdrawal of acceptance.—Where after the acceptance of an application for registration of** layout-design, but before its registration, the Registrar is satisfied that the layout-design is prohibited of registration under section 7, the Registrar may, after hearing the applicant if he so desires, withdraw the acceptance and proceed as if the application had not been accepted. **10. Advertisement of application.—(1) When an application for registration of a layout-design has** been accepted, the Registrar shall, within fourteen days after the date of acceptance, cause the application as accepted to be advertised in the prescribed manner. (2) Where after advertisement of an application— (a) an error in the application has been corrected; or (b) the application has been permitted to be amended under section 12, the Registrar may in his discretion cause the application to be advertised again or, in any case falling under clause (b), may, instead of causing the application to be advertised again, notify in the prescribed manner the correction or amendment made in the application. **11. Opposition to registration.—(1) Any person may, within three months from the date of the** advertisement or re-advertisement of an application for registration or within such further period, not exceeding one month in the aggregate, as the Registrar, on application made to him in the prescribed manner and on payment of the prescribed fee, allows, give notice in writing in the prescribed manner to the Registrar of opposition to the registration. (2) The Registrar shall serve a copy of the notice on the applicant for registration and, within two months from the receipt by the applicant of such copy of the notice of opposition, the applicant shall send to the Registrar in the prescribed manner a counter-statement of the grounds on which he relies for his application and if he does not do so, he shall be deemed to have abandoned his application. (3) If the applicant sends such counter-statement, the Registrar shall serve a copy thereof on the person giving notice of opposition. (4) Any evidence upon which the opponent and the applicant may rely shall be submitted in the prescribed manner and within the prescribed time to the Registrar, the Registrar shall give an opportunity to them to be heard, if they so desire. 8 ----- (5) The Registrar shall, after hearing the parties, if so required, and considering the evidence, decide, after taking into account any ground of objection whether relied upon by the opponent or not. (6) When a person giving notice of opposition or an applicant sending a counter-statement after receipt of a copy of such notice neither resides nor carries on business in India, the Registrar may require him to give security for the costs of proceedings before him and, in default of such security being duly given, may treat the opposition or application, as the case may be, as abandoned. **12. Correction and amendment.—The Registrar may on such terms as he thinks just—** (a) at any time, whether before or after acceptance of an application for registration under section 8, permit the correction of any error in or in connection with the application or permit an amendment of the application; or (b) permit correction of any error in, or an amendment of, a notice of opposition or a counter statement under section 11. **13. Registration.—(1) Subject to the provisions of section 9, when an application for the registration** of the layout-design has been accepted and either— (a) the application has not been opposed and time for notice of opposition has expired; or (b) the application has been opposed and the opposition has been decided in favour of the applicant, the Registrar shall register the said layout-design in the register and the layout-design shall be registered as of the date of the making of the said application and that date shall be deemed to be the date of registration. (2) On the registration of a layout-design, the Registrar shall issue to the applicant a certificate in the prescribed form of the registration thereof sealed with the seal of the Semiconductor Integrated Circuits Layout-Design Registry. (3) Where registration of a layout-design is not completed within twelve months from the date of the application by reason of default on the part of the applicant, the Registrar may, after giving notice to the applicant in the prescribed manner, treat the application as abandoned unless it is completed within the time specified in that behalf in the notice. (4) The Registrar may amend the register or a certificate of registration for the purpose of correcting a clerical error or an obvious mistake. **14. Jointly owned layout-design.—(1) Save as provided in sub-section (2), nothing in this Act shall** authorise the registration of two or more persons who claim to be the creator of a layout-design. (2) Where the relation between two or more persons claiming to be the creator of layout-design are such that— (a) both of them or all of them have put the combined intellectual effort in creating such design; or (b) in relation to the creation of such layout-design both of them or all of them are connected in such manner that intellectual effort of each of them are not distinguishable in creation of such layoutdesign, those persons may be registered as joint proprietor of the layout-design and this Act shall have effect in relation to any right to the use of the layout-design vested in those persons as if in those rights vested in a single person. 9 ----- **15. Duration of registration.—The registration of a layout-design shall be only for a period of ten** years counted from the date of filing an application for registration or from the date of first commercial exploitation anywhere in India or in any country whichever is earlier. CHAPTER IV EFFECT OF REGISTRATION **16. No action of infringement of unregistered layout-design.—No person shall be entitled to** institute any proceeding to prevent, or to recover damages for, the infringement of an unregistered layoutdesign. **17. Rights conferred by registration.—Subject to the other provisions of this Act, the registration of** a layout-design shall, if valid, give to the registered proprietor of layout-design the exclusive right to the use of the layout-design and to obtain relief in respect of infringement in the manner provided by this Act. _Explanation.—For removal of doubts, it is hereby declared that the rights conferred by the_ registration of a layout-design shall be available to the registered proprietor of that layout-design irrespective of the fact as to whether the layout-design is incorporated in an article or not. **18. Infringement of layout-design.—(1) A registered layout-design is infringed by a person who,** not being the registered proprietor of the layout-design or a registered user thereof,— (a) does any act of reproducing, whether by incorporating in a semiconductor integrated circuit or otherwise, a registered layout-design in its entirety or any part thereof, except such act of reproducing any part thereof which is not original within the meaning sub-section (2) of section 7; (b) subject to the provisions of sub-section (5), does any act of importing or selling or otherwise distributing for commercial purposes a registered layout-design or a semiconductor integrated circuit incorporating such registered layout-design or an article incorporating such a semiconductor integrated circuit containing such registered layout-design for the use of which such person is not entitled under this Act. (2) Notwithstanding anything contained in section 17, sub-section (1) or sub-section (5), the performance of the act of reproduction referred to in clause (a) of sub-section (1), where such act is performed for the limited purposes of scientific evaluation, analysis, research or teaching, shall not constitute act of infringement within the meaning of that clause. (3) Where a person, on the basis of scientific evaluation or analysis of a registered layout-design, creates another layout-design which is original within the meaning of sub-section (2) of section 7, that person shall have the right to incorporate such another layout-design in a semiconductor integrated circuit or to perform any of the acts referred to in sub-section (1) or sub-section (5) in respect of such another layout-design and such incorporation or performance of any act shall not be regarded as infringement within the meaning of sub-section (1). (4) Where a layout-design is created by the process of scientific evaluation or analysis of the registered layout-design as referred to in sub-section (3), the use of such layout-design by the proprietor of such registered layout-design shall be regarded as infringement within the meaning of sub-section (1) after the date of registration of such layout-design under this Act. (5) Notwithstanding anything contained in clause (b) of sub-section (1), the performance of any of the acts referred to in that clause by a person shall not be regarded as infringement within the meaning of that clause if such act is performed or directed to be performed in respect of a semiconductor integrated circuit incorporating a registered layout-design or any article incorporating such a semiconductor integrated circuit where such person does not possess any knowledge or has no reasonable ground to know while 10 ----- performing or directing to be performed such act in respect of such semiconductor integrated circuit or article that it incorporated a registered layout-design but after the time when such person has received notice of such knowledge, he may continue to perform or directing to be performed such act in respect of the stock on hand or ordered before such time and, then, he shall be liable to pay the proprietor of the registered layout-design a sum by way of royalty to be determined by negotiation between registered proprietor of the registered layout-design and that person or by the Appellate Board having regard to the benefit accrued to such person by performing or directing to be performed such act in respect of such semiconductor integrated circuit or article, as the case may be. (6) Where any other person purchases a semiconductor integrated circuit incorporating a registered layout-design or any article incorporating such a semiconductor integrated circuit referred to in sub-section (5) from a person referred to in that sub-section, then, such other person shall be entitled to the immunity from infringement in respect of that semiconductor integrated circuit or article, as the case may be, to the extent and in the manner as if the word “person” referred in that sub-section includes the word any other person referred in this sub-section. (7) Nothing contained in clause (b) of sub-section (1) shall be construed as constituting an act of infringement where any person performs any of the acts specified in that clause with the written consent of the registered proprietor of a registered layout-design or within the control of the person obtaining such consent, or in respect of a registered layout-design or a semiconductor integrated circuit incorporating a registered layout-design or any article incorporating such a semiconductor integrated circuit, that has been put on the market by or with the consent of the registered proprietor of such registered layout-design. (8) Notwithstanding anything contained in this Act, where any person by application of independent intellect has created a layout-design which is identical to a registered layout-design, then, any act of such person in respect of the layout-design so created shall not be the infringement of the registered layoutdesign. **19. Registration to be prima facie evidence of validity.—(1) In all legal proceedings relating to a** layout-design registered under this Act (including application under section 30), the original registration of the layout-design and all subsequent assignments and transmissions of layout-design shall be _prima_ _facie evidence of the validity thereof._ (2) In all legal proceedings as aforesaid, a registered layout-design shall not be held to be invalid on the ground that it was not a registerable layout-design under section 7 except upon evidence of originality and that such evidence was not submitted to the Registrar before registration. CHAPTER V ASSIGNMENT AND TRANSMISSION **20. Power of Registered Proprietor to assign and give receipts.—The person for the time being** included in the register as proprietor of a layout-design shall, subject to the provisions of this Act and to any right appearing from the register to be vested in any other person, have power to assign the layoutdesign, and to give effectual receipts for any consideration for such assignment. **21. Assignability and transmissibility of registered layout-design.—Notwithstanding anything in** any other law to the contrary, a registered layout-design shall, subject to the provisions of this Chapter, be assignable and transmissible whether with or without the goodwill of the business concerned. **22. Conditions for assignment otherwise than in connection with the goodwill of a business.—** Where an assignment of a registered layout-design is made otherwise than in connection with the goodwill of business in which such layout-design has been or is used, the assignment shall not take effect 11 ----- unless the assignee, not later than the expiration of six months from the date on which the assignment is made or within such extended period, if any, not exceeding three months in the aggregate, as the Registrar may allow, apply to the Registrar for directions with respect to the advertisement of the assignment, and advertises it in such form and manner and within such period as the Registrar may direct. **23. Registration of assignments and transmissions.—(1) Where a person becomes entitled by** assignment or transmission to a registered layout-design, he shall apply in the prescribed manner to the Registrar to register his title, and the Registrar shall, on receipt of the application and on proof of his title to his satisfaction, register him as the proprietor of the layout-design and shall cause particulars of the assignment or transmission to be entered on the register: Provided that where the validity of an assignment of transmission is in dispute between the parties, the Registrar may refuse to register the assignment or transmission until the rights of the party have been determined by a competent court. (2) Except for the purpose of an application before the Registrar under sub-section (1) or an appeal from an order thereon, or an application under section 30 or an appeal from an order thereon, a document or instrument in respect of which no entry has been made in the register in accordance with sub-section (1), shall not be admitted in evidence by the Registrar or the Appellate Board or any court in proof of title to the layout-design by assignment or transmission unless the Registrar or the Appellate Board or the court, as the case may be, otherwise directs. CHAPTER VI USE OF LAYOUT-DESIGN AND REGISTERED USERS **24. Registered users.—Subject to the provisions of section 25, a person other than the registered** proprietor of a layout-design may be registered as a registered user thereof. **25. Registration as registered user.—(1) Where it is proposed that a person should be registered as** a registered user of a layout-design, the registered proprietor and the proposed registered user shall jointly apply in writing to the Registrar in the prescribed manner and every such application shall be accompanied by— (a) the agreement in writing or a duly authenticated copy thereof, entered into between the registered proprietor and the proposed registered user with respect to the permitted use of the layoutdesign; and (b) an affidavit made by the registered proprietor or by some person authorised to the satisfaction of Registrar to act on his behalf— (i) giving particulars of the relationship, existing or proposed, between the registered proprietor and the proposed registered user, including particulars showing the degree of control by the proprietor over the permitted use which the relationship will confer and whether it is a term of their relationship that the proposed registered user shall be sole registered user or that there shall be any other restriction as to persons for whose registration as registered user application may be made; (ii) stating the conditions or restrictions, if any, proposed with respect to the place of permitted use or any other matter; (iii) stating whether the permitted use to be for a period or without limit of period, and, if for a period, the duration thereof; and (c) such further documents or other evidence as may be required by the Registrar or as may be prescribed. 12 ----- (2) Where the requirement of sub-section (1) have been complied with, the Registrar shall register the proposed registered user. (3) The Registrar shall issue notice in the prescribed manner of the registration of a person as a registered user to other registered users of the layout-design, if any. (4) The Registrar shall, if so requested by the applicant, take steps of securing that information given for the purposes of an application under this section (other than matters entered in the register) is not disclosed to rivals in trade. **26. Power of Registrar for cancellation of registration as registered user.—(1) Without prejudice** to the provisions of section 30, the registration of a person as registered user— (a) may be cancelled by the Registrar on application in writing in the prescribed manner of the registered proprietor or of the registered user or of any other registered user of the layout-design; (b) may be cancelled by the Registrar on the application in writing in the prescribed manner of any person on any of the following grounds, namely:— (i) that the registered user has used the layout-design otherwise than in accordance with the agreement under clause (a) of sub-section (1) of section 25; (ii) that the proprietor or the registered user misrepresented, or failed to disclose, some fact material to the application for registration which if accurately represented or disclosed would not have justified the registration of the registered user; (iii) that the circumstances have changed since the date of registration in such a way that at the date of such application for cancellation they would not have justified registration of the registered user; (iv) that the registration ought not to have been effected having regard to right vested in the applicant by virtue of a contract in the performance of which he is interested; (c) may be cancelled by the Registrar on his own motion or on the application in writing in the prescribed manner by any person on the ground that any stipulation in the agreement between the registered proprietor and the registered user regarding the topographical dimensions of the layoutdesign is either not being enforced or is not being complied with; (d) may be cancelled by the Registrar if the layout-design is no longer registered. (2) The Registrar shall issue notice in the prescribed manner in respect of every application under this section to the registered proprietor and each registered user (not being the applicant) of the layout-design. (3) The procedure for cancelling a registration shall be such as may be prescribed: Provided that before cancelling of registration, the registered proprietor shall be given a reasonable opportunity of being heard. **27. Power of Registrar to call for information relating to agreement in respect of registered** **users.—(1) The Registrar may, at any time during the continuance of the registration of the registered** user, by notice in writing, require the registered proprietor to confirm to him within one month that the agreement filed under clause (a) of sub-section (1) of section 25 continues to be in force. (2) If the registered proprietor fails to furnish the confirmation within one month as required under sub-section (1), the registered user shall cease to be the registered user on the day immediately after the expiry of said period and the Registrar shall notify the same. 13 ----- **28. Right of registered user to take proceedings against infringement.—Subject to any agreement** subsisting between the parties, a registered user may make complaint before the competent criminal court for the infringement in his own name as if he were the registered proprietor. **29. Registered user not to have right of assignment or transmission.—Nothing in this Act shall** confer on a registered user of a layout-design any assignable or transmissible right to the use thereof. _Explanation I.—The right of a registered user of a layout-design shall not deem to have been_ assigned or transmitted within the meaning of this section in the following cases, namely:— (a) where the registered user being an individual enters into a partnership with any other person for carrying on the business concerned; but in any such case the firm may use the layout-design, if otherwise in force, only for so long as the registered user is a member of the firm; (b) where the registered user being a firm subsequently undergoes a change in its constitution; but in any such case the reconstituted firm may use the layout-design, if otherwise in force, only for so long as any partner of the original firm at the time of its registration as registered user, continues to be a partner of the reconstituted firm. _Explanation II.—For the purposes of_ _Explanation I, “firm” has the same meaning as in the Indian_ Partnership Act, 1932 (9 of 1932). CHAPTER VII RECTIFICATION AND CORRECTION OF THE REGISTER **30. Power to rectify the register.—(1) Any person aggrieved by the absence or omission from the** register of any entry, or by any entry made in the register without sufficient cause, or by any entry wrongly remaining on the register, or by any error or defect in any entry in the register, may apply in the prescribed manner to the Appellate Board or to the Registrar, and the Appellate Board or the Registrar, as the case may be, may make such order for making, expunging or varying the entry as it may think it. (2) The Appellate Board or the Registrar may in any proceedings under this section decide any question that may be necessary or expedient to decide in connection with the rectification of the register. (3) The Appellate Board or the Registrar, of its own motion, may, after giving notice in the prescribed manner to the parties concerned and after giving them an opportunity of being heard, make any order referred to in sub-section (1). (4) Any order of the Appellate Board rectifying the register shall direct that notice of the rectification shall be served upon the Registrar in the prescribed manner who shall upon receipt of such notice, rectify the register accordingly. **31. Correction of register.—(1) The Registrar may, on application made in the prescribed manner by** the registered proprietor,— (a) correct any error in the name, address or description of the registered proprietor of a layout design, or any other entry relating to the layout-design; (b) enter any change in the name, address or description of the person who is registered as proprietor of a layout-design; (c) cancel the entry of a layout-design on the register, and may make any consequential amendment or alteration in the certificate of registration, and for that purpose, may require the certificate of registration to be produced to him. 14 ----- (2) The Registrar may, on application made in the prescribed manner by a registered user of a layout design, and after notice to the registered proprietor, correct any error, or enter any change in the name, address or description of the registered user. CHAPTER VIII APPELLATE BOARD **32. Establishment of Layout-Design Appellate Board.—The Central Government shall, by** notification in the Official Gazette, establish an Appellate Board to be known as the Layout-Design Appellate Board to exercise the jurisdiction, powers and authority conferred on it by or under this Act. **33. Composition of Appellate Board.—(1) The Appellate Board shall consist of a Chairperson,** Vice-Chairperson, and such other Members as the Central Government may deem fit and, subject to the other provisions of this Act, the jurisdiction, powers and authority of the Appellate Board may be exercised by a Bench thereof. (2) Subject to the other provisions of this Act, a Bench shall consist of one Judicial Member and one Technical Member and shall sit at such place as the Central Government may, by notification in the Official Gazette, specify. (3) Notwithstanding anything contained in sub-section (2), the Chairperson— (a) may, in addition to discharging the functions of the Judicial Member or Technical Member of the Bench to which he is appointed, discharge the function of the Judicial Member or, as the case may be, the Technical Member, of any other Bench; (b) may transfer a Member from one Bench to another Bench; (c) may authorise Vice-Chairperson, the Judicial Member or the Technical Member appointed to one Bench to discharge also the functions of the Judicial Member or the Technical Member, as the case may be, of another Bench. (4) Where any Benches are constituted, the Central Government may, from time to time, by notification, make provisions as to the distribution of the business of the Appellate Board amongst the Benches and specify the matters which may be dealt by each Bench. _Explanation.—For the removal of doubts, it is hereby declared that the expression “matter” includes_ an application or appeal under section 40 or section 42. (5) If the Members of a Bench differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other Members and such point or points shall be decided according to the opinion of the majority of the Members who have heard the case including those who first heard it. **34. Qualifications for appointment as Chairperson, Vice-Chairperson, or other Members.—(1)** A person shall not be qualified for appointment as Chairperson unless he— (a) is, or has been, a Judge of a High Court; or (b) has, for at least two years, held the office of a Vice-Chairperson. (2) A person shall not be qualified for appointment as a Vice-Chairperson, unless he— (a) has, for at least two years, held the office of a Judicial Member or a Technical Member; or 15 ----- (b) has been a member of the Indian Legal Service and has held a post in Grade I of that Service or any higher post for at least five years. (3) A person shall not be qualified for appointment as a Judicial Member unless he— (a) has been a member of the Indian Legal Service and has held the post in Grade I of that Service for at least three years; or (b) has, for at least ten years, held a civil judicial office. (4) A person shall not be qualified for appointment as a Technical Member, unless he possesses a Master's Degree in Physics or Bachelor's Degree in Electronics Engineering or Electrical Engineering or Computer Engineering from an University or Institution established under law for the time being in force and has held a post equivalent to the post of Joint Secretary to the Government of India or any higher post for at least five years and possesses at least five years’ experience in the area of semiconductors. (5) Subject to the provisions of sub-section (6), the Chairperson, Vice-Chairperson and every other Member shall be appointed by the President of India. (6) No appointment of a person as the Chairperson shall be made except after consultation with the Chief Justice of India. **35. Term of office of Chairperson, Vice-Chairperson and Members.—The Chairperson, Vice-** Chairperson or other Member shall hold office as such for a term of five years from the date on which he enters upon his office or until he attains,— (a) in the case of Chairperson and Vice-Chairperson, the age of sixty-five years; and (b) in the case of Member, the age of sixty-two years, whichever is earlier. **36. Vice-Chairperson or senior-most Member to act as Chairperson or discharge his function in** **certain circumstances.—(1) In the event of occurrence of any vacancy in the office of the Chairperson** by reason of his death, resignation or otherwise, the Vice-Chairperson and in his absence the senior-most Member shall act as Chairperson until the date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office. (2) When the Chairperson in unable to discharge his functions owing to his absence, illness or any other cause, the Vice-Chairperson and in his absence the senior-most Member shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duty. **37. Salaries, allowances and other terms and conditions of service of Chairperson, Vice-** **Chairperson and other Members.—(1) The salaries and allowance payable to, and other terms and** conditions of service (including pension, gratuity and other retirement benefits) of, the Chairperson, Vice-Chairperson and other Members shall be such as may be prescribed. (2) Notwithstanding anything contained in sub-section (1), a person who, immediately before the date of assuming office as the Chairperson, Vice-Chairperson or other Member, was in service of Government shall be deemed to have retired from service on the date on which he enters upon as the Chairperson, Vice-Chairperson or other Member, as the case may be. **38. Resignation and removal.—(1) The Chairperson, Vice-Chairperson and any other Member may,** by notice in writing under his hand addressed to the President of India, resign his office: Provided that the Chairperson, Vice-Chairperson or any other Member shall, unless he is permitted by the President of India to relinquish his office sooner, continue to hold office until the expiry of three 16 ----- months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier. (2) The Chairperson, Vice-Chairperson or any other Member shall not be removed from his office except by an order by the President of India on the ground of proved misbehaviour or incapacity after an enquiry made by a Judge of the Supreme Court in which the Chairperson, Vice-Chairperson or other Member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. (3) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the Chairperson, Vice-Chairperson or other Member referred to in sub-section (2). **39. Staff of Appellate Board.—(1) The Central Government shall determine the nature and** categories of the officers and other employees required to assist the Appellate Board in the discharge of its functions and provide the Appellate Board with such officers and other employees as it may think fit. (2) The salaries and other allowances and conditions of service of the officers and other employees of the Appellate Board shall be such as may be prescribed. (3) The officers and other employees of the Appellate Board shall discharge their functions under the general superintendence of the Chairperson in the manner as may be prescribed. **40. Application to the Appellate Board to determine royalty.—(1) The registered proprietor of a** registered layout-design may make an application to the Appellate Board for determination of royalty under sub-section (5) of section 18. (2) Every application under sub-section (1) shall be in such form and be accompanied by such affidavits, documents or any other evidence and by such fee in respect of the filing of such application and by such other fees for the service or execution of processes as may be prescribed. (3) On receipt of an application under sub-section (1), the Appellate Board shall, after giving notice to the opposite party to file opposition within the prescribed time and manner and after giving opportunity of being heard to the applicant and the opposite party, dispose of the application. (4) An order or decision made by the Appellate Board in disposing of the application under sub section (3) shall be executable by a civil court having local jurisdiction as if it were a decree made by that court. **41. Power of the Board to cancel registration.—(1) Any person may make an application, in the** prescribed form accompanied by prescribed fee, to the Appellate Board for cancellation of the registration of a layout-design registered under this Act or registration of assignment or transmission relating thereto, as the case may be, on the ground that— (a) in the case of the registration of a layout-design, the layout-design is prohibited for being registered under section 7; or (b) in the case of the registration of assignment or transmission relating to a registered layout design, such assignment or transmission is contrary to any provision of the law for the time being in force. (2) The Appellate Board shall, on receipt of an application under sub-section (1), give notice to the opposite parties in the prescribed manner and after giving them an opportunity of being heard, make such order as it may deem fit regarding cancellation of registration: 17 ----- Provided that where the ground of cancellation has been established with respect only to a part of a layout-design, the Board shall cancel only such part and the remaining part of the layout-design if capable of performing as a semiconductor integrated circuit shall be retained as registered on the register in the name of the registered proprietor of such layout-design. (3) Any cancellation of the registration of a layout-design either in whole or in part under sub-section (2) shall be deemed to be effective on the date from which the period of ten years referred to in section 15 is countable in respect of that layout-design. (4) The Appellate Board shall, without delay after making any order of cancellation under sub-section (2), send a copy of such order to the Registrar who shall correct the register to give effect to such order. **42. Appeal to Appellate Board.—(1) Any person aggrieved by an order or decision of the Registrar** under this Act, or the rules made thereunder may prefer an appeal to the Appellate Board within three months from the date on which the order or decision sought to be appealed against is communicated to such person preferring the appeal. (2) No appeal shall be admitted if it is preferred after the expiry of the period specified under sub section (1): Provided that an appeal may be admitted after the expiry of the period specified therefor, if the appellant satisfies the Appellate Board that he had sufficient cause for not preferring the appeal within the specified period. (3) An appeal to the Appellate Board shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a copy of the order or decision appealed against and by such fees as may be prescribed. **43. Procedure and powers of Appellate Board.—(1) The Appellate Board shall not be bound by the** procedure laid down in the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by principles of natural justice and, subject to the provisions of this Act and the rules made thereunder, the Appellate Board shall have powers to regulate its own procedure including the fixing of places and times of its hearing. (2) The Appellate Board shall have, for the purpose of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following matters, namely:— (a) receiving evidence; (b) issuing commissions for examination of witnesses; (c) requisitioning any public record; and (d) any other matter which may be prescribed. (3) Any proceeding before the Appellate Board shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code (45 of 1860), and the Appellate Board shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **44. Bar of jurisdiction of courts, etc.—No court or other authority shall have or, be entitled to,** exercise any jurisdiction, powers or authority in relation to the matters referred to in sub-section (1) of section 40 or sub-section (1) of section 42. 18 ----- **45. Bar to appear before Appellate Board.—On ceasing to hold office, the Chairperson, Vice-** Chairperson or other Members shall not appear before the Appellate Board or the Registrar. **46. Conditions as to making of interim order.—Notwithstanding anything contained in any other** provisions of this Act or in any other law for the time being in force, no interim order (whether by way of injunction or stay or any other manner) shall be made on, or in any proceedings relating to, an appeal unless— (a) copies of such appeal and of all documents in support of the plea for such interim order are furnished to the party against whom such appeal is made or proposed to be made; and (b) opportunity is given to such party to be heard in the matter. **47. Power of Chairperson to transfer cases from one Bench to another.—On the application of** any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Chairperson may transfer any case pending before one Bench, for disposal, to any other Bench. **48. Procedure for application for rectification, etc., before Appellate Board.—(1) An application** for rectification of the register made to the Appellate Board under section 30 shall be in such form as may be prescribed. (2) A certified copy of every order or judgment of the Appellate Board relating to a registered layout design under this Act shall be communicated to the Registrar by the Board and the Registrar shall give effect to the order of the Board and shall, when so directed, amend the entries in, or rectify, the register in accordance with such order. **49. Appearance of Registrar in legal proceedings.—(1) The Registrar shall have the right to appear** and be heard— (a) in any legal proceedings before the Appellate Board in which the relief sought includes alteration or rectification of the register or in which any question relating to the practice of the Semiconductor Integrated Circuit Layout-Design Registry is raised; (b) in any appeal to the Board from an order of the Registrar on an application for registration of a layout-design— (i) which is not opposed, and the application is either refused by the Registrar or is accepted by him subject to any amendments or modifications, or (ii) which has been opposed and the Registrar considers that his appearance is necessary in the public interest, and the Registrar shall appear in any case if so directed by the Board. (2) Unless the Appellate Board otherwise directs, the Registrar may, in lieu of appearing, submit a statement in writing signed by him, giving such particulars as he thinks proper of the proceedings before him relating to the matter in issue or of the grounds of any decision given by him affecting it, or of the practice of the Semiconductor Integrated Circuits Layout-Design Registry in like cases, or of other matters relevant to the issues and within his knowledge as Registrar, and such statement shall be evidence in the proceeding. **50. Registrar to refer certain disputes to the Board.—If any question arises in any proceedings** before Registrar, whether a layout-design has been commercially exploited for more than two years anywhere in a convention country for the purpose of registration of such layout-design under this Act, the Registrar shall refer such question to the Appellate Board, and the decision of the Board thereon shall be final. 19 ----- **51. Power of the Board to permit certain uses.—(1) Notwithstanding anything contained in this** Act, the Appellate Board may on an application made in the prescribed manner before it on behalf of the Government or by any person authorised by the Government and after giving notice of such application to the registered proprietor of a layout-design and providing the opportunity of being heard to the parties concerned permit the use of such registered layout-design by the Government or by such person so authorised, as the case may be, subject to any or all of the following conditions as the Board deems fit under the circumstances of such use, namely:— (a) that the use of the layout-design shall be for non-commercial public purposes or for the purposes relating to national emergency or of extreme public urgency; (b) that the duration of the use of the layout-design shall be limited for a period specified by the Board. (c) that the use of the layout-design shall be non-assignable and non-transmissible; (d) that the use of the layout-design shall be to the extent which the Board deems necessary to remedy the anti-competitive practice; (e) that the use of the layout-design shall be predominantly for the supply of semiconductor integrated circuits or articles incorporating semiconductor integrated circuits in domestic market of India: Provided that Board shall not permit the use of a registered layout-design, by any such person authorised by the Government, under this sub-section unless the Board is satisfied that such person so authorised has made efforts to enter into agreement with the registered proprietor of such layout-design on reasonable commercial terms and conditions for permitted use of such layout-design and such efforts had not been successful within prescribed period: Provided further that the first proviso shall not be applicable in a case where the person so authorised produces to the Board a certificate issued by the Government to the effect that such use is required due to national emergency or any other circumstances which the Government considers to be of extreme urgency or of public non-commercial use. (2) The Appellate Board shall, while granting the permission for the use of a registered layout-design under sub-section (1), determine the amount of royalty to be paid by the Government or the person authorised by the Government, as the case may be, to the registered proprietor of such layout-design for such permitted use. (3) The Appellate Board may, on the application of the registered proprietor of a layout-design referred to in sub-section (1), may review the permission granted under that sub-section and, after giving notice and opportunity of hearing to the parties concerned in the prescribed manner, cancel or amend such permission if the Board is satisfied that any of the conditions subject to which the permission was granted has not been observed or the circumstances which led to the granting of such permission has ceased to exist or substantially altered. **52. Costs of Registrar in proceedings before Appellate Board.—In all proceedings under this Act** before the Appellate Board the costs of the Registrar shall be in the discretion of the Board, but the Registrar shall not be ordered to pay the costs of any of the parties. **53. Appeal.—(1) Any person aggrieved by any decision or order of the Appellate Board under this** Act may, within the prescribed period appeal to the High Court within whose the jurisdiction of head office or the branch office of the Semiconductor Integrated Circuits Layout-Design Registry against the decision or order of which the appeal arises is situated. 20 ----- (2) Every such appeal shall be preferred by petition in writing and shall be in such form and shall contain such particulars as may be prescribed. (3) Subject to the provisions of this Act and the rules made thereunder, the provisions of the Code of Civil Procedure, 1908 (5 of 1908) shall apply to appeals before a High Court under this Act. **54. Powers of High Courts to make rules.—The High Court may make rules consistent with this** Act as to the conduct and procedure of all proceeding under this Act before it. **55. Transitional provisions.—Notwithstanding anything contained in this Act, till the establishment** of the Appellate Board under section 32, the Intellectual Property Appellate Board establishment under section 83 of the Trade Marks Act, 1999 (47 of 1999) shall exercise the jurisdiction, powers and authority conferred on the Appellate Board under this Act subject to the modification that in any Bench of such Intellectual Property Appellate Board constituted for the purposes of this section, for the Technical Member referred to in sub-section (2) of section 84 of the Trade Marks Act, 1999, the Technical Member shall be appointed under this Act and he shall be deemed to be the Technical Member for constituting the Bench under the said sub-section (2) of section 84 for the purposes of this Act. CHAPTER IX OFFENCES, PENALTIES AND PROCEDURE **56. Penalty for infringement of layout-design.—Any person who contravenes knowingly and** wilfully any of the provisions of section 18 shall be punishable with imprisonment for a term which may extend to three years, or with fine which shall not be less than fifty thousand rupees but which may extend to ten lakh rupees, or with both. **57. Penalty for falsely representing a layout-design as registered.—(1) No person shall make any** representation with respect to a layout-design not being a registered layout-design, to the effect that it is a registered layout-design. (2) If any person contravenes the provisions of sub-section (1), he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to fifty thousand rupees, or with both. (3) For the purposes of this section, the use in India in relation to a layout-design of the word “registered”, or of any other expression referring whether expressly or impliedly to registration, shall be deemed to import a reference to registration in the register, except— (a) where that word or other expression, is used in direct association with other words delineated in characters at least as large as those in which that word or other expression is delineated and indicating that the reference is to registration as a layout-design under the law of a country outside India being a country under the law of which the registration referred to is in fact in force; or (b) where that other expression is of itself such as to indicate that the reference is to such registration as is mentioned in clause (a); or (c) where that word is used in relation to a layout-design registered as a layout-design under the law of a country outside India and in relation solely to such layout-design. **58. Penalty for improperly describing a place of business as connected with the Semiconductor** **Integrated Circuits Layout-Design Registry.—If any person uses on his place of business, or on any** document issued by him, or otherwise, words which would reasonably lead to the belief that his place of business is, or is officially connected with, the Semiconductor Integrated Circuits Layout-Design 21 ----- Registry, he shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both. **59. Penalty for falsification of entries in the register.—If any person makes, or causes to be made,** a false entry in the register, or a writing falsely purporting to be a copy of an entry in the register, or produces or tenders, or causes to be produced or tendered, in evidence any such writing, knowing the entry or writing to be false, he shall be punishable with imprisonment for a term which may extend to two years, or with fine, or with both. **60. Forfeiture of goods.—(1) Where a person is convicted of an offence under section 56, the court** convicting him may direct the forfeiture to Government of all goods and things by means of, or in relation to, which the offence has been committed. (2) When a forfeiture is directed on a conviction and an appeal lies against the conviction, an appeal shall lie against the forfeiture also. (3) When a forfeiture is directed on a conviction, the court, before whom the person is convicted, may order any forfeited articles to be destroyed or otherwise disposed of as the court thinks fit. **61. Exemption of certain persons employed in ordinary course of business.—Where a person** accused of an offence under section 56 proves— (a) that in the case which is the subject of the charge he was so employed that it relates to the duty of his employment, and was not interested in the profit accruing from such commission of offence except the duty of his employment; and (b) that, having taken all reasonable precautions against committing the offence charged, he had, at the time of commission of the alleged offence, no reason to suspect the genuineness of the registered layout-design or a semiconductor integrated circuit in which such layout-design is incorporated; and (c) that, on demand made by or on behalf of the prosecutor, he gave all the information in his power with respect to the commission of such offence, he shall be acquitted. **62. Procedure where invalidity of registration is pleaded by the accused.—(1) Where the offence** charged under section 56 is in relation to a registered layout-design and the accused pleads that the registration of the layout-design is invalid, the following procedure shall be followed:— (a) if the court is satisfied that such defence is prima facie tenable, it shall not proceed with the charge but shall adjourn the proceeding for three months from the date on which the plea of accused is recorded to enable the accused to file an application before the Appellate Board under this Act, for the rectification of the register on the ground that the registration is invalid; (b) if the accused proves to the court that he has made such application within the time so limited or within such further time as the time court may for sufficient cause may allow, the further proceedings in the prosecution shall stand stayed till the disposal of such application for rectification; (c) if within a period of three months or within such extended time as may be allowed by the court the accused fails to apply to the Appellate Board for rectification of the register, the court shall proceed with the case as if the registration were valid . (2) Where before the institution of a complaint of an offence referred to in sub-section (1), any application for the rectification of the register concerning the layout-design in question on the ground of invalidity of the registration thereof has already been properly made to and is pending before the 22 ----- Appellate Board or the Registrar, the Court shall stay the further proceedings in the prosecution pending the disposal of the application aforesaid and shall determine the charge against the accused in conformity with the result of the application for rectification in so far as the complainant relies upon the registration of his layout-design. **63. Offences by companies.—(1) If the person committing an offence under this Act is a company,** the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section—_ (a) “company” means any body corporate and includes a firm or other association or individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **64. Cognizance of certain offences.—No court shall take cognizance—** (a) of an offence under section 56 or section 57 except on the complaint in writing made by the registered proprietor or the registered user of a layout-design in respect of which the offence has been committed; (b) of an offence under section 58 or section 59 except on complaint in writing made by the Registrar or any officer authorised by him in writing. **65. Costs of defence or prosecution.—In any prosecution under this Act, the court may order such** costs to be paid by the accused to the complainant, or by the complainant to the accused, as the court deemed reasonable having regard to all the circumstances of the case and the conduct of the parties. Costs so awarded shall be recoverable as if they were a fine. **66. Information as to commission of offence.—An officer of the Government whose duty it is to** take part in the enforcement of the provisions of this Chapter, shall not be compelled in any court to say when he got any information as to the commission of any offence against this Act. **67. Punishment of abetment in India of acts done out of India.—If any person, being within India,** abets the commission, without India, of any act which, if committed in India, would, under this Act, be an offence, he may be tried for such abetment in any place in India in which he may be found, and be punished therefor with the punishment to which he would be liable if he had himself committed in that place the act which he abetted. 23 ----- CHAPTER X MISCELLANEOUS **68. Protection of security of India.—Notwithstanding anything contained in this Act, the Registrar** shall— (a) not disclose any information relating to the registration of a layout-design or any application relating to the registration of a layout-design under this Act which the Central Government considers prejudicial to the interest of the security of India; and (b) take any action, including the cancellation of registration of a layout-design registered under this Act, which the Central Government may, by notification in the Official Gazette, specify in the interest of security of India. _Explanation.—For the purposes of this section, the expression “interest of the security of India”_ means any action necessary for the security of India which relates to the use of a layout-design or a semiconductor integrated circuit incorporating a layout-design or an article incorporating such semiconductor integrated circuit and which— (a) relates to fissionable materials or the materials from which they are derived; or (b) relates to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials as is carried on directly or indirectly for the purpose of supplying a military establishment; or (c) is taken in time of war or other emergency in international relations. **69. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any person in respect of anything which is in good faith done or intended to be done in pursuance of this Act. **70. Certain persons to be public servants.—Every person appointed, under this Act and every** Member of the Appellate Board shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **71. Implied warranty on sale of layout-design, etc.—Where a registered layout-design, or a** semiconductor integrated circuit in which a registered layout-design is incorporated, or an article incorporating such a semiconductor integrated circuit is sold or has been contracted for sale, the seller shall be deemed to warrant that the registration, of such layout-design or the layout-design so incorporated is genuine within the meaning of this Act unless the contrary is expressed in writing signed by or on behalf of the seller and delivered at the time of the sale or contract to sell of such layout-design, or semiconductor integrated circuit or article, as the case may be, and accepted by the buyer. **72. Powers of Registrar.—In all proceedings under this Act before the Registrar,—** (a) the Registrar shall have all the powers, of a civil court for the purposes of receiving evidence, administering oaths, enforcing the attendance of witnesses, compelling the discovery and production of documents and issuing commissions for the examination of witnesses; (b) the Registrar may, subject to any rules in this behalf, made under section 96 make such orders as to costs as he considers reasonable, and any such order shall be executable as decree to a civil court; (c) the Registrar may, on an application made in the prescribed manner, review his own decision. 24 ----- **73. Exercise of discretionary power by Registrar.—Subject to the provisions of section 76, the** Registrar shall not exercise any discretionary or other power vested in him by this Act or the rules made thereunder adversely to a person applying for the exercise of the power without (if so required by that person within the prescribed time) giving to the person an opportunity of being heard. **74. Evidence before Registrar.—In any proceeding under this Act before the Registrar, evidence** shall be given by affidavit: Provided that the Registrar may, if he thinks fit, take oral evidence in lieu of, or in addition to, such evidence by affidavit. **75. Death of party to a proceeding.—If a person who is a party to a proceeding under this Act (not** being a proceeding before the Appellate Board or a court) dies pending the proceeding, the Registrar may, on request, and on proof to his satisfaction of the transmission of the interest of the deceased person, substitute in the proceeding his successor in interest in his place, or, if the Registrar is of opinion that the interest of the deceased person is sufficiently represented by the surviving parties, permit the proceeding to continue without the substitution of his successor in interest. **76. Extension of time.—(1) If the Registrar is satisfied, on application made to him in the prescribed** manner and accompanied by the prescribed fee, that there is sufficient cause for extending the time for doing any act (not being a time expressly provided in the Act), whether the time so specified has expired or not, he may, subject to such conditions as he may think fit to impose, extend the time and inform the parties accordingly. (2) Nothing in sub-section (1) shall be deemed to require the Registrar to hear the parties, before disposing of an application for extension of time and no appeal shall lie from any order of the Registrar under this section. **77. Abandonment.—Where, in the opinion of the Registrar, an applicant is in default in the** prosecution of an application filed under this Act, the Registrar may, by notice require the applicant to remedy the default within a time specified and after giving him, if so desired, an opportunity of being heard, treat the application as abandoned, unless the default is remedied within the time specified in the notice. **78. Preliminary advice by the Registrar.—(1) The Registrar may, on application made to him in the** prescribed manner by any person who proposes to apply for the registration of a layout-design, give advice as to whether the layout-design appears to him prima facie to be original. (2) If, on an application for the registration of a layout-design as to which the Registrar has given advice as aforesaid in the affirmative made within three months after the advice was given, the Registrar, after further investigation or consideration, gives notice, to the applicant of objection on the ground that the layout-design is not original, the applicant shall be entitled, on giving notice of withdrawal of the application within the prescribed period, to have repaid to him any fee paid on the filing of the application. **79. Registered user to be impleaded in certain proceedings.—(1) In every proceeding under** Chapter VII or under section 42, every registered user of a layout-design, who is not himself an applicant in respect of any proceeding under that Chapter or section shall be made a party to the proceeding. (2) Notwithstanding anything contained in any other law, a registered user so made a party to the proceeding shall not be liable for any costs unless he enters an appearance and takes part in the proceeding. **80. Evidence of entries in register, etc., and things done by the Registrar.—(1) A copy of any** entry in the register or of any document referred to in sub-section (1) of section 87 purporting to be 25 ----- certified by the Registrar and sealed with the seal of the Semiconductor Integrated Circuits Layout-Design Registry shall be admitted in evidence in all courts and in all proceedings without further proof or production of the original. (2) A certificate purporting to be under the hand of the Registrar as to any entry, matter or thing that he is authorised by this Act or the rules to make or do shall be prima facie evidence of the entry having been made, and of the contents thereof, or of the matter or things having been done or not done. **81. Registrar and other officers not compellable to produce register, etc.—The Registrar or any** other officer of the Semiconductor Integrated Circuits Layout-Design Registry shall not, in any legal proceedings to which he is not a party, be compellable to produce the register or any other document in his custody, the contents of which can be proved by the production of a certified copy issued under this Act or to appear as a witness to prove the matters therein recorded unless by order of the court made or special cause. **82. Certificate of validity.—If in any legal proceeding for rectification of the register before the** Appellate Board a decision is on contest given in favour of the registered proprietor of the layout-design on the issue as to the validity of the registration of the layout-design, the Appellate Board may grant a certificate to that effect, and if such a certificate is granted, then, in any subsequent legal proceedings in which the said validity comes into question, the said proprietor on obtaining a final order or judgment in his favour affirming validity of the registration of the layout-design shall, unless the said final order or judgment for sufficient reason directs otherwise, be entitled to his full cost, charges and expenses as between legal practitioner and client. **83. Address for service.—An address for service stated in an application or notice of opposition** shall, for the purposes of the application or notice of opposition, be deemed to be the address of the applicant or opponent, as the case may be, and all documents in relation to the application or notice of opposition may be served by leaving them at or sending them by post to the address for service of the applicant or opponent, as the case may be. **84. Agents.—Where, by or under this Act, any act, other then the making of an affidavit, is required** to be done before the Registrar by any person, the act may, subject to the rules made in this behalf, be done, instead of by that person himself, by a person duly authorised in the prescribed manner, who is— (a) a legal practitioner, or (b) a person registered in the prescribed manner as a layout-design agent, or (c) a person in the sole and regular employment of the principal. **85. Layout-design registered by an agent or representative without authority.—If an agent or a** representative of the proprietor of a registered layout-design, without authority uses or attempts to register or registers the layout-design in his own name, the proprietor shall be entitled to oppose the registration applied for or secure its cancellation or rectification of the register so as to bring him as the registered proprietor of the said layout-design by assignment in his favour: Provided that such action shall be taken within three years of the registered proprietor of the layout design becoming aware of the conduct of the agent or representative. **86. Indexes.—There shall be kept under the direction and supervision of the Registrar—** (a) an index of registered layout-designs, (b) an index of layout-designs in respect of which applications for registration are pending. 26 ----- (c) an index of the names of the proprietors of registered layout-designs, and (d) an index of the names of registered users. **87. Documents open to public inspection.—(1) Save as otherwise provided in sub-section (4) of** section 25,— (a) the register and any document upon which any entry in the register is based; (b) every notice of opposition to the registration of a layout-design application for rectification before the Registrar, counter-statement thereto, and any affidavit or document filed by the parties in any proceedings before the Registrar; and (c) the indexes mentioned in section 86 and such other documents as the Central Government may, by notification in the Official Gazette, specify; shall, subject to such conditions as may be prescribed, be open to public inspection at the Semiconductor Integrated Circuits Layout-Design Registry. (2) Any person may, on an application to the Registrar and on payment of such fees as may be prescribed, obtain a certified copy of any entry in the register or any document referred to in sub-section (1). **88. Reports of Registrar to be placed before Parliament.—The Central Government shall cause to** be placed before both Houses of Parliament once a year a report respecting the execution by or under the Registrar of this Act. **89. Fees and surcharge.—(1) There shall be paid in respect of applications and registration and other** matters under this Act such fees and surcharge as may be prescribed by the Central Government. (2) Where a fee is payable in respect of the doing of an act by the Registrar, the Registrar shall not do that act until the fee has been paid. (3) Where a fee is payable in respect of the filing of a document at the Semiconductor Integrated Circuits Layout-Design Registry, the document shall be deemed not to have been filed at the Registry until the fee has been paid. **90. Savings in respect of Chapter IX.—Nothing in Chapter IX shall be construed so as to render** liable to any prosecution or punishment any servant of a master resident in India who in good faith acts in obedience to the instructions of such master, and, on demand made by or on behalf of prosecutor, has given full information as to his master and as to the instructions which he has received from his master. **91. Declaration as to ownership of layout-design not registerable under the Registration Act,** **1908.—Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908), no document** declaring or purporting to declare the ownership or title of a person to a layout-design other than a registered layout-design shall be registered under that Act. **92. Government to be bound.—The provisions of this Act shall be binding on the Government.** **93. Convention countries.—With a view to the fulfilment of a treaty, convention or arrangement** with any country outside India which affords to citizens of India similar privileges as granted to its own citizens, the Central Government may, by notification in the Official Gazette, specify such country to be a convention country for providing the citizens of such convention country the similar privileges as granted to the citizens of India under this Act. 27 ----- _Explanation.—For the purposes of this section “country” includes any group of countries or union of_ countries or inter-governmental organisation and the expression "convention country" shall be construed accordingly. **94. Provision as to reciprocity.—Where any country specified by the Central Government in this** behalf by notification in the Official Gazette under section 93 does not accord to citizens of India the same rights in respect of registration and protection of layout-design as it accords to its own nationals, no national of such country shall be entitled, either solely or jointly with any other person,— (a) to apply for the registration of, or be registered as the proprietor of, a layout-design; (b) to be registered as the assignee of the proprietor of a registered layout-design; or (c) to apply for registration or be registered as a registered user of a layout-design under section 25. **95. Power of Central Government to remove difficulties.—(1) If any difficulty arises in giving** effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of five years from the commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **96. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the other matters relating to the registered layout-designs to be entered in the register under sub-section (1) of section 6; (b) the manner of applying to the Registrar for registration under sub-section (1) of section 8; (c) the manner of advertising the application under sub-section (1) of section 10; (d) the manner of notifying the correction or amendment in application under sub-section (2) of section 10; (e) the manner of making application, the fee to be paid and the manner of giving notice under sub-section (1) of section 11; (f) the manner of sending counter statement under sub-section (2) of section 11; (g) the manner of submitting evidence under sub-section (4) of section 11; (h) the form of issuing certificate under sub-section (2) of section 13; (i) the manner of giving notice under sub-section (3) of section 13; (j) the manner of making applications to register the title under sub-section (1) of section 23; (k) the manner of applying to Registrar under sub-section (1) of section 25; (l) the document to be prescribed under clause (c) of sub-section (1) of section 25; (m) the manner of issuing notice under sub-section (3) of section 25; 28 ----- (n) the manner of applications under clause (a) of sub-section (1) of section 26; (o) the manner of making applications under clause (b) of sub-section (1) of section 26; (p) the manner of making applications under clause (c) of sub-section (1) of section 26; (q) the manner of issuing notice under sub-section (2) of section 26; (r) the procedure of cancelling registration under sub-section (3) of section 26; (s) the manner of applying to the Appellate Board under sub-section (1) of section 30; (t) the manner of giving notice under sub-section (3) of section 30; (u) the manner of serving notice under sub-section (4) of section 30; (v) the manner of making application under sub-section (1) of section 31; (w) the manner of making application under sub-section (2) of section 31; (x) the salaries and allowances payable to and other terms and conditions of service of the Chairperson, Vice-Chairperson and other Members under sub-section (1) of section 37; (y) the procedure for investigation of misbehaviour or incapacity of the Chairperson, Vice-Chairperson and other Members under sub-section (3) of section 38; (z) the salaries and allowances and other conditions of service of the officers and other employees of the Appellate Board under sub-section (2) of section 39; (za) the manner of general superintendence by the Chairperson under sub-section (3) of section 39; (zb) the form of application, the affidavit, documents and other evidence and fee payable in respect of, filing of such application and other fees for the services or execution of process to be accompanied therewith under sub-section (2) of section 40; (zc) the time limit for filing the opposition under sub-section (3) of section 40; (zd) the form of making application and the fee to be a accompanied therewith under sub-section (1) of section 41; (ze) the manner of giving notice under sub-section (2) of section 41; (zf) the form of appeal, the manner of verification of such appeal and the fee to be accompanied therewith under sub-section (3) of section 42; (zg) any other matter to be prescribed under clause (d) of sub-section (2) of section 43; (zh) the form of application under sub-section (1) of section 48; (zi) the manner of making application under sub-section (1) of section 51; (zj) the period to be prescribed under the first proviso to sub-section (1) of section 51; (zk) the manner of giving notice and opportunity of hearing to the parties under sub-section (3) of section 51; (zl) the period to be prescribed under sub-section (1) of section 53; (zm) the form of petition and particulars to be contained therein under sub-section (2) of section 53; (zn) the manner of reviewing decisions by the registrar under clause (c) of section 72; 29 ----- (zo) the time to be prescribed under section 73; (zp) the manner of making application and the fee to be accompanied therewith under sub-section (1) of section 76; (zq) the manner of making application under sub-section (1) of section 78; (zr) the period of giving notice of withdrawal of application under sub-section (2) of section 78; (zs) the manner of authorising a person under section 84; (zt) the manner of registering a person as a layout-design agent under clause (b) of section 84; (zu) the conditions to be prescribed under sub-section (1) of section 87; (zv) the fee payable under sub-section (2) of section 87; (zw) the fees and the surcharge to be paid under sub-section (1) of section 89; (zx) any other matter which is required to be or may be prescribed. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 30 -----
8-Dec-2000
45
The Coal India (Regulation of Transfers and Validation) Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/1990/1/A2000-45.pdf
central
# THE COAL INDIA (REGULATION OF TRANSFERS AND VALIDATION) ACT, 2000 _______ ARRANGEMENT OF SECTIONS _______ SECTIONS 1. Short title. 2. Definitions. 3. Power of Central Government to direct transfer of land, rights, title or interest. 4. Validation of certain transfers. 1 ----- # THE COAL INDIA (REGULATION OF TRANSFERS AND VALIDATION) ACT, 2000 ACT NO. 45 OF 2000 [8th December, 2000.] # An Act to empower the Central Government to direct the transfer of the land, or of the rights in or over land or of the right, title and interest in relation to a coal mine, coking coal mine or coke oven plant, vested in the Coal India Limited or in a subsidiary company to any subsidiary company of Coal India Limited or any other subsidiary company and to validate certain transfers of such land or rights. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— **1. Short title.—This Act may be called the Coal India (Regulation of Transfers and Validation) Act,** 2000. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Coal India” means the Coal India Limited, a Government company incorporated under the Companies Act, 1956 (1 of 1956) having its registered office at Calcutta and includes its predecessor Government company, namely, the Coal Mines Authority Limited; (b) “subsidiary company” means the following subsidiary companies of Coal India, namely:— (i) the Central Coal Fields Limited, Ranchi and includes its predecessor Government company, namely, the National Coal Development Corporation Limited, Ranchi; (ii) the Bharat Coking Coal Limited, Dhanbad; (iii) the Western Coal Fields Limited, Nagpur; (iv) the Eastern Coal Fields Limited, Sanctoria; (v) the Central Mine Planning and Design Institute Limited, Ranchi; (vi) the South-Eastern Coal Fields Limited, Bilaspur; (vii) the Northern Coal Fields Limited, Singrauli; (viii) the Mahanadi Coal Fields Limited, Sambalpur; and includes such other subsidiary company of Coal India as may be incorporated under the Companies Act, 1956 (1 of 1956) from time to time; (c) words and expressions used herein and not defined but defined in the Coking Coal Mines (Nationalisation) Act, 1972 (36 of 1972) or the Coal Mines (Nationalisation) Act, 1973 (26 of 1973), shall have the meanings, respectively, assigned to them in those Acts. **3. Power of Central Government to direct transfer of land, rights, title or interest.—(1)** Notwithstanding anything contained in any other law for the time being in force, the Central Government may, if it is satisfied that a subsidiary company is willing to comply, or has complied, with such terms and conditions as that Government think fit to impose, direct, by notification in the Official Gazette, that the land or rights in or over such land or the right, title and interest in relation to a coal mine, coking coal mine or a coke over plant vested in the Coal India shall, instead of continuing to vest in the Coal India, vest in that subsidiary company or, where such land or right, title or interest vests in subsidiary company, in another subsidiary company. (2) Where the land or right in or over such land or the right, title and interest in relation to a coal mine, coking coal mine or a coke over plant vest in a subsidiary company under sub-section(1), such subsidiary company shall, on and from the date of such vesting, be deemed to have become the lessee in relation to such coal mine or coking coal mine as if a fresh mining lease in relation to such coal mine or coking coal mine had been granted to it under the Mineral Concession Rules, 1960 made under section 13 2 ----- of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) for the maximum period for which such lease could have been granted under those rules, and all the rights and liabilities of Coal India or, as the case may be, the subsidiary company in relation to such coal mine or coking coal mine shall, on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of subsidiary company first-mentioned. **4. Validation of certain transfers.—A subsidiary company which was operating, or was in control** of, any coal mine, coking coal mine, or coke oven plant which was vested in the Coal India or any other subsidiary company immediately before the commencement of this Act, shall be deemed to have been vested with the land or rights in or over such land or the right, title and interest in relation to such coal mine, coking coal mine or coke oven plant and such vesting shall be deemed to have been valid and effective at all material times as if a direction had been made by the Central Government under sub-section (1) of section 3 and accordingly no suit or other proceeding shall be instituted, maintained or continued in any court on the ground that such subsidiary company was not competent to operate or control such coal mine, coking coal mine or coke oven plant. 3 -----
11-Dec-2000
52
The Immigration (carriers Liability) Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/1934/1/A2000-52.pdf
central
# THE IMMIGRATION (CARRIERS’ LIABILITY) ACT, 2000 _______ ARRANGEMENT OF SECTIONS ________ SECTIONS 1. Short title and extent. 2. Definitions. 3. Liability of carriers for passengers brought into India. 3A. Power to exempt. 4. Appeals. 5. Recovery of penalty due to Government. 6. Bar of legal proceedings. 7. Application of Acts 16 of 1939, 34 of 1920 and 31 of 1946 not barred. 8. Power to make rules. 9. Rules to be laid before Parliament. 10. Power to remove difficulties. 1 ----- # THE IMMIGRATION (CARRIERS' LIABILITY) ACT, 2000 ACT NO. 52 OF 2000 [11th December, 2000.] # An Act to make the carriers liable in respect of passengers brought by them into India in contravention of the provisions of the Passport (Entry into India) Act, 1920 and the rules made thereunder and matters connected therewith. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— **1. Short title and extent.—(1) This Act may be called the Immigration (Carriers' Liability) Act,** 2000. (2) It extends to the whole of India. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “carrier” means a person who is engaged in the business of transporting passengers by water or air and includes any association of persons, whether incorporated or not, by whom the aircraft or the ship is owned or chartered; (b) “Competent Authority” means the civil authority appointed under sub-paragraph (2) of paragraph 2 of the Foreigners Order, 1948 made under the Foreigners Act, 1946 (31 of 1946) or any other officer notified by the Central Government in this behalf; (c) “prescribed” means prescribed by rules made under this Act. (2) Words and expressions not defined in this Act but defined in the Foreigners Act, 1946 (31 of 1946) or the Passport (Entry into India) Act, 1920 (34 of 1920) shall have the meanings respectively assigned to them in those Acts. **3. Liability of carriers for passengers brought into India.—Where the competent authority is of** the opinion that any carrier has brought a person in contravention of the provisions of the Passport (Entry into India) Act, 1920 (34 of 1920) and rules made thereunder into India, he may by order impose a penalty of rupees one lakh on such carrier: Provided that no order shall be passed without giving the carrier an opportunity of being heard in the matter. 1[3A. Power to exempt.—(1) Without prejudice to the provisions of the Passport (Entry into India) Act, 1920 (34 of 1920) and the rules made thereunder, if the Central Government is of opinion that it is necessary or expedient in the interest of the general public or to fulfil the international obligation, it may, by order notified in the Official Gazette and subject to such conditions as may be specified in the order, exempt any carrier or class of carrier from the operations of all or any of the provisions of this Act and may, as often as may be necessary, revoke or modify such order. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.] **4. Appeals.—(1) An appeal shall lie against the order made under section 3 of this Act to the Joint** Secretary to the Government of India in the Ministry of Home Affairs authorised in this behalf by that Government. (2) Every such appeal shall be preferred within thirty days from the date of the order appealed against: Provided that the appellate authority may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of thirty days, permit the appellant to prefer the appeal within a further period of thirty days. (3) On receipt of any such appeal, the appellate authority shall, after giving the parties a reasonable opportunity of being heard and after making such inquiry as it deems proper, make such order, as it may think fit, confirming, modifying or reversing the order appealed against. (4) Every appeal shall be preferred on payment of such fees as may be prescribed. 1. Ins. by Act 44 of 2005, s. 2 (w.e.f. 15-11-2005). 2 ----- **5. Recovery of penalty due to Government.—Where any penalty imposed under this Act is not** paid, the competent authority may recover the penalty so payable by seizing, detaining or selling— (a) the aircraft or the ship; or (b) any goods on the ship or aircraft, belonging to the carrier. **6. Bar of legal proceedings.—No suit, prosecution or other legal proceeding shall lie against the** Central Government or the competent authority or any officer of the Central Government or any other person exercising any powers or discharging any functions or performing any duty under this Act for anything in good faith done or intended to be done under this Act or any rule made thereunder. **7. Application of Acts 16 of 1939, 34 of 1920 and 31 of 1946 not barred.—The provisions of this** Act and the rules made thereunder shall be in addition to, and not in derogation of, the Registration of Foreigners Act, 1939, the Passport (Entry into India) Act, 1920 and the Foreigners Act, 1946 or the rules or orders made thereunder. **8. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for— (a) the fees which shall be paid for appeals under sub-section (4) of section 4; (b) any other matter which is required to be, or may be, prescribed. **9. Rules to be laid before Parliament.—Every rule made under this Act shall be laid, as soon as** may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **10. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of two years from the commencement of this Act. (2) Every order under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 3 -----
27-Dec-2000
54
The Central Road and Infrastructure Fund Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/1931/1/A2000-54.pdf
central
# THE CENTRAL ROAD AND INFRASTRUCTURE FUND ACT, 2000 _________ ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY # SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II CENTRAL ROAD AND INFRASTRUCTURE FUND 3. Levy and collection of cess. 4. Crediting of cess to Consolidated Fund of India. 5. Grants and loans by the Central Government. 6. Establishment of Central Road and Infrastructure Fund. 7. Utilisation of the Fund. 7A. Apportionment of share of fund by Committee. 8. Accounts and audit. CHAPTER III MANAGEMENT OF CENTRAL ROAD AND INFRASTRUCTURE FUND 9. Powers of Central Government to administer the Fund. 10. Functions of the Central Government. 11. Administration of States’ share of the Fund. 12. Power to make rules. 13. Rules made under this Act to be laid before Parliament. 14. Provisions relating to existing Central Road and Infrastructure Fund. 15. Repeal and saving. THE SCHEDULE I THE SCHEDULE II 1 ----- # THE CENTRAL ROAD AND INFRASTRUCTURE FUND ACT, 2000 ACT NO. 54 OF 2000 [27th December, 2000.] # An Act to give statutory status to [1][the Central Road and Infrastructure Fund for development and maintenance of National Highways, railway projects, improvement of safety in railways, State and rural roads and other infrastructure, and for these purposes to levy and collect by way of cess, a duty of excise and a duty of customs on motor spirit commonly known as petrol and high speed diesel oil] and for other matters connected therewith. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the** [2][Central Road and Infrastructure] Fund Act, 2000. (2) It extends to the whole of India. (3) Save as otherwise provided in this Act, it shall be deemed to have come into force on the 1st day of November, 2000. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date on which the Fund is established under sub-section (1) of section 6; (b) “cess” means a duty in the nature of duty of excise and customs, imposed and collected on motor spirit commonly known as petrol and high speed diesel oil for the purposes of this Act; (c) “Fund” means the Central [3][Road and Infrastructure Fund] established under sub-section (1) of section 6; (d) “national highways” means the highways specified in the Schedule to the National Highways Act, 1956 (48 of 1956) or any other highway declared as national highway under sub-section (2) of section 2 of the said Act; 4* - - - (f) “prescribed” means prescribed by rules made under this Act. CHAPTER II 5 [CENTRAL ROAD AND INFRASTRUCTURE FUND] **3. Levy and collection of cess.—(1) With effect from such date as the Central Government may, by** notification in the Official Gazette, specify, there shall be levied and collected, as a cess, a duty of excise and customs for the purposes of this Act, on every item specified in column (2) of the [6][Schedule I], which is produced in or imported into India and— (a) removed from a refinery or a factory or an outlet; or 1. Subs. by Act 13 of 2018, s. 206, for long title (w.e.f. 1-4-2018). 2. Subs. by s. 206, ibid., for “Central Road” (w.e.f. 1-4-2018). 3. Subs. by s. 206, ibid., for “Road Fund” (w.e.f. 1-4-2018). 4. Clause (e) omitted by s. 206, ibid, (w.e.f. 1-4-2018). 5. Subs. by s. 206, ibid., for Heading (w.e.f. 1-4-2018). 6. Subs. by s. 206, ibid., for “Schedule” (w.e.f. 1-4-2018). 2 ----- (b) transferred by the person, by whom such item is produced or imported, to another person, at such rates [1]*** as the Central Government may, by notification in the Official Gazette, specify: 2* - - - 3[Provided that the additional duty of customs and the additional duty of excise on motor spirit commonly known as petrol and on high speed diesel oil levied under sub-section (1) of section 109 and sub-section (1) of section 110, as the case may be, of the Finance Act, 2018 shall be deemed to be the cess for the purposes of this Act from the date of its levy and the proceeds thereof shall be credited to the Fund.] (2) Every cess leviable under sub-section (1) on any item shall be payable by the person by whom such item is produced, and in the case of imports, the cess shall be imposed and collected on items so imported and specified in the Schedule. (3) The cess leviable under sub-section (1) on the items specified in the Schedule shall be in addition to any cess or duty leviable on those items under any other law for the time being in force. (4) The provisions of the Central Excise Act, 1944 (1 of 1944) and the rules made thereunder and the provisions of the Customs Act, 1962 (52 of 1962) and the rules made thereunder, as the case may be, including those relating to refunds and exemptions from duties shall, as far as may be, apply in relation to the levy and collection of cess leviable under this section and for this purpose, the provisions of the Central Excise Act, 1944 and of the Customs Act, 1962, as the case may be, shall have effect as if the aforesaid Acts provided for the levy of cess on all items specified in the Schedule. **4. Crediting of cess to Consolidated Fund of India.—The proceeds of the cess levied under section** 3 shall first be credited to the Consolidated Fund of India, and the Central Government may, if Parliament by appropriation made by law in this behalf so provides, credit such proceeds to the Fund from time to time, after deducting the expenses of collection, for being utilised exclusively for the purposes of this Act. **5. Grants and loans by the Central Government.—The Central Government may, after due** appropriation made by Parliament by law in this behalf, credit by way of grants or loans such sums of money as the Central Government may consider necessary in the Fund. **6. Establishment of Central [4][Road and Infrastructure Fund].—(1) With effect from such date as** the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a Fund to be called as the Central [4][Road and Infrastructure Fund]. (2) The Fund shall be under the control of the Central Government and there shall be credited thereto— (a) any sums of money paid under section 4 or section 5; (b) unspent part of the cess, being already levied for the purposes of the development and maintenance of national highways; (c) the sums, if any, realised by the Central Government in carrying out its functions or in the administration of this Act; (d) any fund provided by the Central Government for the development and maintenance of State roads. 1. Omitted by Act 13 of 2018, s. 206, for “not exceeding the rate set forth in the corresponding entry in column (3) of the Schedule” (w.e.f. 1-4-2018). 2. The first proviso omitted by s. 206, ibid (w.e.f. 1-4-2018). 3. Subs. by s. 206, ibid, for the second proviso (w.e.f. 1-4-2018). 4. Subs. by s. 206, ibid, for “Road Fund” (w.e.f. 1-4-2018). 3 ----- (3) The balance to the credit of the Fund shall not lapse at the end of the financial year. **7. Utilisation of the Fund.—[1][(1)] The Fund shall be utilised for the—** (i) development and maintenance of national highways; (ii) development of the rural roads; (iii) development and maintenance of other State roads including roads of inter-State and economic importance; 2[(iv) construction of roads either under or over the railways by means of bridges and erection of safety works at unmanned rail-road crossings, new lines, conversion of existing standard lines into gauge lines and electrification of rail lines; and (v) undertaking other infrastructure projects. _Explanation.—For the purposes of this Act, the expression “infrastructure projects” means the_ category of projects and infrastructure Sub-Sectors specified in Schedule II.] 3[(2) The Central Government may, depending upon the requirement for development of infrastructure projects, and if it considers necessary or expedient to do so, by notification in the Official Gazette, amend Schedule II relating to any Category of projects or Infrastructure Sub-Sectors. (3) Every notification issued under this Act by the Central Government shall be laid, as soon as may be after it is issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or both Houses agree that the notification should not be made, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification.] 3[7A. Apportionment of share of fund by Committee.— The share of the Fund to be apportioned to each of infrastructure projects shall be finalised by a Committee, constituted by the Central Government by notification published in the Official Gazette, headed by the Finance Minister, depending on the priorities of the project.] **8. Accounts and audit.—(1) The concerned departments of the Central Government shall maintain** proper accounts and other relevant records and prepare an annual statement of accounts, including the profit and loss account and the balance-sheet in respect of allocations of their shares of fund in such form, as may be prescribed by the Central Government in consultation with the Comptroller and AuditorGeneral of India. (2) The accounts of the Fund shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him. CHAPTER III 4 # [MANAGEMENT OF CENTRAL ROAD AND INFRASTRUCTURE FUND] **9. Powers of Central Government to administer the Fund.—(1)** [5][The Central Government # shall have the power to administer the Fund and shall— 1. Section 7 renumbered as sub-section (1) thereof by Act 13 of 2018, s. 206 (w.e.f. 1-4-2018). 2. Subs. by s. 206, ibid., for clauses (iv) and (v) (w.e.f. 1-4-2018). 3. Ins. by s. 206, ibid (w.e.f.1-4-2018). 4. Subs. by s. 206, ibid., for heading “MANAGEMENT OF CENTRAL ROAD FUND” (w.e.f. 1-4-2018). 5. Subs. by s. 206, ibid, for section 9 (w.e.f. 1-4-2018). 4 ----- # (a) take such decisions regarding investment on projects of roads and other infrastructure as it considers necessary; (b) take such measures as may be necessary to raise funds for the development and maintenance of roads and other infrastructure.] **10. Functions of the Central Government.—[1][(1)] The Central Government shall be responsible for** the— (i) administration and management of the share of Fund allocated to the development and maintenance of the [2][roads and other infrastructure]; (ii) co-ordination and complete and timely utilisation of all sums allocated out of the Fund; 3* - - - 4[(iv) formulation of criteria for allocation of funds for development and maintenance of State road projects including the projects of inter-State and economic importance;] 5* - - - (vi) formulation of the criteria for allocation of the funds for development and maintenance of national highways and other infrastructure projects;] 6* - - - 7* - - - 8[(2) Notwithstanding anything contained in clause (viii) of sub-section (1), the Central Government shall, with effect from the 1st day of March, 2005, allocate fifty paise from the amount of rupee two as amended by sections 119 and 120 of the Finance Act, 2005 as the additional duty of customs and the additional duty of excise on petrol, levied under sub-section (1) of section 103 and sub-section (1) of section 111, as the case may be, of the Finance (No. 2) Act, 1998 (21 of 1998) and the additional duty of customs and the additional duty of excise on high speed diesel oil levied under sub-section (1) of section 116 and sub-section (1) of section 133, as the case may be, of the Finance Act, 1999 (27 of 1999), exclusively for the development and maintenance of national highways.] **11. Administration of States’ share of the Fund.—[9][(1) The share of the Fund to be spent on** development and maintenance of State roads, based on the criteria formulated under clause (iv) of sub-section (1) of section 10, shall be allocated in such manner as may be finalised by the Committee referred to in section 7A]. (2) The portion of the Fund allocated for expenditure in the various States and Union territories shall be retained by the Central Government until it is actually required for expenditure. (3) If in the opinion of the Central Government, the Government of any State or the administration of any Union territory has at any time— (a) failed to take such steps as the Central Government may recommend for the regulation and control of motor vehicles within the State or the Union territory; or 1. Section 10 numbered as sub-section (1) thereof by 18 of 2005, s. 121 (w.e.f. 13-5-2005). 2. Subs. by Act 13 of 2018, s. 206, for “national highways” (w.e.f. 1-4-2018). 3. Clause (iii) omitted by s. 206, ibid. (w.e.f. 1-4-2018). 4. Subs. by Act 23 of 2019, s. 186, for clause (iv) (w.e.f. 1-8-2019). 5. Clause (v) omitted by s. 186, ibid. (w.e.f. 1-8-2019). 6. Clause (vii) omitted by s. 186, ibid. (w.e.f. 1-8-2019). 7. Clause (viii) omitted by Act 13 of 2018, s. 206 (w.e.f. 1-4-2018). 7. Ins. by Act 18 of 2005, s. 121 (w. e. f. 13-5-2005). 9. Subs. by Act 23 of 2019, s. 187, for sub-section (1) (w.e.f. 1-8-2019). 5 ----- (b) delayed without reasonable cause the application of any portion of the Fund allocated or re allocated, as the case may be, for expenditure within the State or Union territory, the Central Government may resume the whole or part of any sums which it may have at that time held for expenditure in that State or the Union territory. (4) All sums resumed by the Central Government from the account of any State Government or Union territory administration as aforesaid shall be re-allocated between the credit accounts of the defaulting and other State Governments and Union territory administrations in the ratio of the main allocation for the financial year preceding the year in which the re-allocation is made. (5) The balance to the credit of the Fund in respect of any allocation shall not lapse at the end of the financial year. **12. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (a) specify [1][the type of projects] in respect of which the funds may be disbursed under section 7; (b) the manner in which the accounts shall be maintained and the annual statement of accounts may be prepared including the profit and loss account and the balance-sheet under sub-section (1) of section 8; 2* - - - - [3]***; (d) any other matter for which rule is to be made, or may be, prescribed. **13. Rules made under this Act to be laid before Parliament.—Every rule made under this Act** shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **14. Provisions relating to existing Central** **[4][Road and Infrastructure Fund].—With effect from** the appointed day the Central Road Fund governed by the Parliamentary Resolution dated the 13th May, 1988 (hereafter referred to in this section as the existing Fund) shall be deemed to be the Fund established under this Act and,— (a) all schemes relating to development and maintenance of national [5][highways, State roads and other infrastructure] sanctioned under the existing Fund in so far as such schemes are relatable to the schemes under this Act, shall be deemed to be the schemes sanctioned under this Act; (b) all funds accrued under the existing Fund including assets and liabilities shall be transferred to the Fund established under this Act. **15. Repeal and saving.—(1) The Central Road Fund Ordinance, 2000 (Ord. 5 of 2000) is hereby** repealed. 1. Subs. by Act 13 of 2018, s. 206, for “the projects” (w.e.f. 1-4-2018) 2. Clause (c) omitted by Act 23 of 2019, s. 188 (w.e.f. 1-8-2019). 3. The words and figures “under section 10” omitted by Act 13 of 2018, s. 206 (w.e.f. 1-4-2018). 4. Subs. by s. 206, ibid., for “road Fund” (w.e.f. 1-4-2018). 5. Subs. by s. 206, ibid, for “highways and State roads” (w.e.f. 1-4-2018). 6 ----- (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 7 ----- 1[THE SCHEDULE I] (See section 3) Sl. No Name of item 2**** (1) (2) *** 1. Motor spirit commonly known as petrol *** 2. High speed diesel oil *** 1. The Schedule numbered as Schedule I thereof by Act 13 of 2018, s. 206 (w.e.f. 1-4-2018). 2. Colum (3) omitted by s. 206, ibid. (w.e.f. 1-4-2018). 8 ----- 1[SCHEDULE II [See section 7 (1)] Category of projects and Infrastructure Sub-Sectors Sl. No. Category Infrastructure Sub-Sectors 1. Transport (a) Road and bridges; (b) Ports (including Capital Dredging); (c) Shipyards (including a floating or land-based facility with the essential features of waterfront, turning basin, berthing and docking facility, slipways or ship lifts, and which is self- sufficient for carrying on shipbuilding/repair/breaking activities); (d) Inland Waterways; (e) Airports; (f) Railway Track, tunnels, viaducts, bridges, terminal infrastructure including stations and adjoining commercial infrastructure; (g) Urban Public Transport (except rolling stock in case of urban road transport). Energy (a) Electricity Generation; 2. (b) Electricity Transmission; (c) Electricity Distribution; (d) Oil pipelines; (e) Oil / Gas / Liquefied Natural Gas (LNG) storage facility (including strategic storage of crude oil); (f) Gas pipelines (including city gas distribution network). Water and Sanitation 3. (a) Solid Waste Management; (b) Water supply pipelines; (c) Water treatment plants; (d) Sewage collection, treatment and disposal system; (e) Irrigation (dams, channels, embankments, etc.); (f) Storm Water Drainage System; (g) Slurry pipelines. 1. Ins. by Act 13 of 2018, s. 206 (w.e.f. 1-4-2018). 9 ----- Sl. No. Category Infrastructure Sub-Sectors 4. Communication (a) Telecommunication (Fixed network including optic fibre/ wire/cable networks which provide broadband/internet); (b) Telecommunication towers; _(c) Telecommunications and_ Telecom Services. (a) Education Institutions (capital 5. Social and Commercial Infra stock); (b) Sports and Infrastructure (including provision of Sports Stadia and Infrastructure for Academies for Training/Research in Sports and Sports-related activities); (c) Hospitals (capital stock including Medical Colleges, Para Medical Training Institutes and Diagnostic Centers); (d) Tourism Infrastructure— (i) three-star or higher category classified hotels located outside cities with population of more than one million; (ii) ropeways and cable cars; (e) Common infrastructure for industrial parks and other parks with industrial activity such as food parks, textile parks, special economic zones, tourism facilities and agriculture markets; (f) Post-harvest storage infrastructure for agriculture and horticulture produce including cold storage; (g) Terminal markets; (h) Soil-testing laboratories; (i) Cold chain (including cold room facility for farm level precooling, for preservation or storage of agriculture and allied produce, marine products and meat); (j) Affordable Housing (including a housing project using at least 50% of the Floor Area Ratio (FAR)/Floor Space Index (FSI) for dwelling units with carpet area of not more than 60 square meters. _Explanation.— For the purposes_ of the item (j), the term “carpet area” shall have the meaning assigned to it in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016). 10 -----
25-Apr-2001
08
The Mizoram University Act, 2000
https://www.indiacode.nic.in/bitstream/123456789/1982/1/200008.pdf
central
# THE MIZORAM UNIVERSITY ACT, 2000 __________________ # ARRANGEMENT OF SECTIONS ________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of the University. 4. Objects of the University. 5. Powers of the University. 6. Transfer of properties of North-Eastern Hill University. 7. Jurisdiction. 8. University open to all classes, castes and creed. 9. The Visitor. 9A. The Chief Rector. 10. Officers of the University. 11. The Vice-Chancellor. 12. The Pro-Vice Chancellor. 13. The Deans of Schools. 14. The Registrar. 15. The Finance Officer. 16. The Librarian. 17. Other officers. 18. Authorities of the University. 19. The Court. 20. The Executive Council. 21. The Academic Council. 22. The College Development Council. 23. The Boards of Studies. 24. The Finance Committee. 25. Other authorities of the University. 26. Powers to make Statutes. 27. Statutes how to be made. 28. Power to make Ordinances. 29. Regulations. 30. Annual report. 31. Annual accounts. 32. Returns and information. 33. Transfer of services of certain employees of the North-Eastern Hill University. 34. Conditions of service of employees. 35. Procedure of appeal and arbitration in disciplinary cases against students. 36. Right to appeal. 37. Provident and pension funds. 38. Disputes as to constitution of University authorities and bodies. 39. Filling of casual vacancies. 40. Proceedings of University authorities or bodies not invalidated by vacancies. 41. Protection of action taken in good faith. 42. Mode of proof of University record. 43. Power to remove difficulties. 44. Transitional provisions. 1 ----- SECTIONS 45. Completion of courses of studies in Colleges or Institutions affiliated to the University. 46. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 47. Amendment of Act 24 of 1973 THE SCHEDULE. 2 ----- # THE MIZORAM UNIVERSITY ACT, 2000 ACT No. 8 OF 2000 [25th April, 2000.] # An Act to establish and incorporate a teaching and affiliating University in the State of Mizoram and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Mizoram University Act, 2000.** (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “Board of Studies” means the Board of Studies of the University; (d) “College Development Council” means the College Development Council of the University; (e) “College” means a College maintained by, or admitted to the privileges of, the University; (f) “Court” means the Court of the University; (g) “Department” means a Department of Studies and includes a Centre of Studies; (h) “distance education system” means the system of imparting education through any means of communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more such means; (i) “employee” means any person appointed by the University and includes teachers and other staff of the University; (j) “Executive Council” means the Executive Council of the University; (k) “Hall” means a unit of residence or of corporate life for the students of the University, or of a College or an Institution, maintained by the University; (l) “Institution” means an academic institution, not being a College, maintained by, or admitted to the privileges of, the University; (m) “North-Eastern Hill University” means the University established under section 3 of the North-Eastern Hill University Act, 1973 (24 of 1973); (n) “Principal” means the Head of a College or an Institution maintained by the University and includes, where there is no Principal, the person for the time being duly appointed to act as Principal, and in the absence of the Principal, or the acting Principal, a Vice-Principal duly appointed as such; (o) “recognised Institution” means an institution of higher learning recognised by the University within the State of Mizoram; (p) “recognised teachers” means such persons as may be recognised by the University for the purpose of imparting instructions in a College or an Institution admitted to the privileges of the University; 1. 2nd July, 2001, vide notification No. S.O. 604 (E), dated 29th June, 2001, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (q) “Regulations” means the Regulations made by any authority of the University under this Act for the time being in force; (r) “School” means a School of Studies of the University; (s) “Statutes” and “Ordinances” mean, respectively, the Statutes and the Ordinances of the University for the time being in force; (t) “Teachers of the University” means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any College or Institution maintained by the University and are designated as teachers by the Ordinances; (u)“University” means the Mizoram University established and incorporated as a University under this Act; (v) “Vice-Chancellor” and “Pro Vice-Chancellor” mean, respectively, the Vice-Chancellor and Pro-Vice-Chancellor of the University; **3. Establishment of the University.—(1) There shall be established a University by the name of** “Mizoram University”. (2) The headquarters of the University shall be at Aizawl. (3) The first Vice-Chancellor and the first members of the Court, the Executive Council, the Academic Council and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, are hereby constituted body corporate by the name of “Mizoram University”. (4) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. **4. Objects of the University.—The objects of the University shall be to disseminate and advance** knowledge by providing instructional and research facilities in such branches of learning as it may deem fit; to make provisions for integrated courses in humanities, natural and physical sciences, social sciences, forestry and other allied disciplines in the educational programmes of the University; to take appropriate measures for promoting innovations in teaching learning process, inter-disciplinary studies and research; to educate and train manpower for the development of the State of Mizoram; and to pay special attention to the improvement of the social and economic conditions and welfare of the people of the State, their intellectual, academic and cultural development. **5. Powers of the University.—The University shall have the following powers, namely:—** (i) to provide for instructions in such branches of learning as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing, on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extramural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to provide facilities through the distance education system to such persons as it may determine; (vi) to institute Principalships, Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Readerships, Lecturerships or other teaching or academic positions; (vii) to recognise an institution of higher learning for such purposes as the University may determine and to withdraw such recognition; 4 ----- (viii) to recognise persons for imparting instructions in any College or Insitution admitted to the privileges of the University; (ix) to appoint persons working in any other University or organisation as teachers of the University for a specified period; (x) to create administrative, ministerial and other posts and to make appointments thereto; (xi) to co-operate or collaborate or associate with any other University or authority or institution of higher learning in such manner and for such purposes as the University may determine; (xii) to establish, with the prior approval of the Central Government, such Centres and specialised laboratories or other units for research and instruction as are, in the opinion of the University necessary for the furtherance of its objects; (xiii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiv) to establish and maintain Colleges, Institutions and Halls; (xv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; (xvi) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvii) to admit to its privileges colleges and institutions within the State of Mizoram not maintained by the University; to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; to recognise, guide, supervise, and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xviii) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xix) to confer autonomous status on a College or an Institution or a Department, as the case may be, in accordance with the Statutes; (xx) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xxi) to demand and receive payment of fees and other charges; (xxii) to supervise the residence of the students of the University and to make arrangements for promoting their health and general welfare; (xxiii) to lay down conditions of service of all categories of employees, including their code of conduct; (xxiv) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxv) to make arrangements for promoting the health and general welfare of the employees; (xxvi) to receive benefactions, donations and gifts and to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxvii) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxviii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. 5 ----- **6. Transfer of properties of North-Eastern Hill University.—On and from the commencement of** this Act, all properties of the North-Eastern Hill University in the State of Mizoram shall stand transferred to, and vest in, the University and shall be applied to the objects for which the University is established. **7. Jurisdiction.—(1) The Jurisdiction of the University shall extend to the whole of the State of** Mizoram. (2) On and from the commencement of this Act, all Colleges, Institutions, Schools and Departments affiliated to, or admitted to the privileges of, or maintained by, the North-Eastern Hill University shall stand affiliated to, or admitted to the privileges of, or maintained by, the University. (3) On and from the date of commencement of this Act, the North-Eastern Hill University shall cease to exercise its jurisdiction in the State of Mizoram. **8. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof. Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, physically handicapped or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **9.** **The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including Colleges and Institutions maintained by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt within the report of the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct, of the University, its buildings, laboratories and equipments, and of any College or Institution maintained by the University or admitted to its privileges; and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, Colleges or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (2), give notice of his intention to cause an inspection or inquiry to be made,— (a) to the University, if such inspection or inquiry is to be made in respect of the University or any College or Institution maintained by it, or (b) to the management of the College or Institution, if the inspection or inquiry is to be made in respect of College or Institution admitted to the privileges of the University, and the University or the management, as the case may be, shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University or the management, as the case may be, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University or the management shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any College or Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the visitor 6 ----- may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate, to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Visitor may, if the inspection or inquiry is made in respect of any College or Institution admitted to the privileges of the University, address the management concerned through the ViceChancellor with reference to the result of such inspection or inquiry, his views thereon and such advice as he may be pleased to offer upon the action to be taken thereon. (9) The Executive Council or the management, as the case may be, shall communicate, through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (10) Where, the Executive Council or the management, does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council or the management, issue such directions as he may think fit and the Executive Council or the management, as the case may be, shall comply with such directions. (11) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (12) The Visitor shall have such other powers as may be prescribed by the Statutes. 2[9A. **The Chief Rector.—The Governor of the state of Mizoram shall be the Chief Rector of the** University.] **10. Officers of the University.—The following shall be the officers of the University:—** (1) the Vice-Chancellor; (2) the Pro-Vice-Chancellor; (3) the Deans of Schools; (4) the Registrar; (5) the Finance Officer; (6) the Librarian; and (7) such other officers as may be declared by the Statutes to be officers of the University. **11. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner and on such terms and conditions of service as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matter: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the 1. Ins. by Act 24 of 2007, s. 2 (w.e.f. 28-5-2007). 7 ----- Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the ViceChancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **12. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and** shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **13. The Deans of Schools.—Every Dean of a School shall be appointed in such manner and shall** exercise such powers and perform such duties as may be prescribed by the Statutes. **14. The Registrar.—(1) The Registrar shall be appointed in such manner as may be prescribed by the** Statutes. (2) The Registrar shall have the power to enter into agreement, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **15. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties as may be prescribed by the Statutes. **16. The Librarian.—The Librarian shall be appointed in such manner and shall exercise such powers** and perform such duties as may be prescribed by the Statutes. **17. Other officers.—The manner of appointment and powers and duties of the other officers of the** University shall be prescribed by the Statutes. **18. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the College Development Council; (5) the Board of Studies; (6) the Finance Committee; and (7) such other authorities as may be declared by the Statutes to be the authorities of the University. **19. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and 8 ----- (d) to perform such other functions as may be prescribed by the Statutes. **20. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **21. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **22. The College Development Council.—(1) The College Development Council shall be responsible** for admitting Colleges to the privileges of the University. (2) The constitution of the College Development Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **23. The Boards of Studies.—The constitution, powers and functions of the Boards of Studies shall** be prescribed by the Statutes. **24. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **25. Other authorities of the University.—The constitution, powers and functions of other** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **26. Powers to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) The constitution, powers and functions of authorities and other bodies of the University, as may be constituted from time to time. (b) The appointment and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) The appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and conditions of service; (e) the appointment of teachers, academic staff working in any other University or organisation for a specific period for undertaking a joint project; (f) the conditions of service of employees including provisions pension, insurance and provident fund, the manner of termination of service and disciplinary action relating to employees of the University; (g) the principles governing the seniority of service of the employees of the University; (h) the procedure for arbitration in cases of dispute between employees or students and the University; (i) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (j) the conferment of autonomous status on a College or an Institution or a Department; (k) the establishment and abolition of Schools, Departments, Centres, Halls, Colleges and Institutions; 9 ----- (l) the conferment of honorary degrees; (m) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (n) the conditions under which Colleges and Institutions may be admitted to the privileges of the University and the withdrawal of such privileges; (o) the management of Colleges and Institutions established by the University; (p) the delegation of powers vested in the authorities or officers of the University; (q) the maintenance of discipline among the employees and students; (r) all other matters which by this Act are to be or may be provided for by the Statutes. **27. Statutes how to be made.— (1)The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act; Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **28. Power to make ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; 10 ----- (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and the prescribing of special courses of studies of them; (j) the establishment of Centres of Studies, Boards of Studies, Specialised Laboratories and other Committees; (k) the manner of co-operation and collaboration with other Universities, institutions and other agencies including learned bodies or associations; (l) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (m) the institution of fellowships, scholarships, studentship, medals and prizes; (n) the supervision of management of Colleges and Institutions admitted to the privileges of the University; (o) the setting up of a machinery for redressal or grievances of employees; and (p) all other matters which by this Act or the Statutes, are to be or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes. **29. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **30. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **31. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be** prepared under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. 11 ----- **32. Returns and information.—The University shall furnish to the Central Government such returns** or other information with respect to its property or activities as the Central Government may, from time to time, require. **33. Transfer of services of certain employees of the North-Eastern Hill University.—(1) Every** person who, immediately before the commencement of this Act, is holding or discharging the duties of any post or office in connection with the affairs of the North-Eastern Hill University in any area which on that date falls within the State of Mizoram shall be deemed to have been transferred to the services of the Mizoram University on the same terms and conditions and to the same rights and privileges as to pension, gratuity, provident fund and other matters as he would have been had under the North-Eastern Hill University Act, 1973 (24 of 1973). (2) Any dispute between a person referred to in sub-section (1) and the University shall, at the request of such, person, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2),(3),(4) and (5) of section 34 shall, as far as may be, apply to a reference made under this sub-section. **34. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an empire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal. (4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **35. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 34 shall, as far as may be, apply to a reference made under this sub-section. **36. Right to appeal.—Every employee or student of the University or of a College or Institution** maintained by the University or admitted to its privileges shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of the Principal or the management of any College or an Institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **37. Provident and pension funds.—(1)The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (28 of 1925), shall apply to such fund, as if it were a Government provident fund. 12 ----- **38. Disputes as to constitution of University authorities and bodies.—If any question arises as to** whether any person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **39. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **40. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or** proceedings of any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **41. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **42. Mode of proof of University record.—A copy of any receipt, application, notice, order,** proceeding, resolution of any authority or Committee of the University, or other documents in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as prima facie evidence of such receipt, application, notice, order, proceeding, resolution, or documents or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence, notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force. **43. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **44. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes:—** (a) the first Vice-Chancellor shall be appointed by the Visitor in such manner and on such conditions as may be deemed fit and each of the said officer shall hold office for such term, not exceeding five years as may be specified by the Visitor; (b) the first Registrar and the first Finance Officer shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than thirty members and eleven members, respectively, who shall be nominated by the Visitor and shall hold office for a term of three years; (d) the first College Development Council shall consist of not more than ten members, who shall be nominated by the Visitor and they shall hold office for a term of three years; (e) the first Academic Council shall consist of not more than twenty-one members, who shall be nominated by the Visitor and they shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. 13 ----- **45. Completion of courses of studies in Colleges or Institutions affiliated to the University.—** Notwithstanding anything contained in this Act, or in the Statutes or the Ordinances, any student of a College, Institution, School or Department, who, immediately before the admission of such College, Institution, School or Department, to the privileges of the University, was studying for a degree, diploma or certificate of the North-Eastern Hill University, shall be permitted by the University, to complete his course for that degree, diploma or certificate, as the case may be, and the Mizoram University and such College, Institution, School or Department, shall provide for the instructions and examination of such student in accordance with the syllabus of studies of the North Eastern Hill University. **46. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. **47. Amendment of Act 24 of 1973.—In the North-Eastern Hill University Act, 1973,—** (i) in section 1, in sub-section (2), for the words “Union Territories of Arunachal Pradesh and Mizoram”, the words “State of Arunachal Pradesh” shall be substituted; (ii) in section 2, in clause (l), for the words “Union territories of Arunachal Pradesh and Mizoram”, the words “State of Arunachal Pradesh” shall be substituted; (iii) in section 6, in sub-section (1), for the words “Union territories of Arunachal Pradesh and Mizoram”, the words “State of Arunachal Pradesh” shall be substituted. 14 ----- THE SCHEDULE (See section 27) THE STATUTES OF THE UNIVERSITY 1. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor from a panel of not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for a fresh panel. (2) The Committee referred to in clause (1) shall consist of three persons, none of whom shall be an employee of the University or an institution associated with the University, or a member of the Executive Council or Academic Council or of any other authority of the University. Out of the three persons, two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him or till his successor is appointed and enters upon his office, whichever is earlier. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances other than the house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice Chancellor in respect of the maintenance of such residence. (ii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Executive Council with the approval of the visitor from time to time: Provided that where an employee of the University or a College or an Institution maintained by or affiliated to it, or of any other University or any Institution maintained by or affiliated to such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been member of any pension scheme, the University shall make the necessary contribution to such scheme. (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council. (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the 1st day of January and July every year: Provided that if the Vice Chancellor assumes or relinquishes charge of the office of the Vice Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a- half days for each completed month of service. 15 ----- (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half pay leave at the rate of twenty days for each completed year of service. This half pay leave may also be availed of as commuted leave on full pay on medical certificate. When commuted leave is availed, twice the amount of half pay leave shall be debited against half pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior most professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the existing Vice-Chancellor attends to the duties of his office, as the case may be. 2. Powers and duties of the Vice-Chancellor.—(1) The Vice-Chancellor shall be ex officio Chairman of the Executive Council, the Academic Council and the Finance Committee and shall, in the absence of the Chancellor, preside at the convocations held for conferring degrees. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall exercise control over the affairs of the University and shall give effect to the decisions of all the authorities of the University. (5) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (6) The Vice-Chancellor shall have the power to convene or cause to be convened the meeting of the Executive Council, the Academic Council and the Finance Committee. 3. Pro-Vice-Chancellor.—(1) Every Pro-Vice-Chancellor shall be appointed by the Executive Council on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provide that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for re-appointment: Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: Provided also that the Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statutes 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until a new Vice-Chancellor or the Vice-Chancellor, as the case may be, assumes office: Provided also that when the office of the Vice-Chancellor becomes vacant and there is no Pro-Vice-Chancellor to perform the functions of the Vice-Chancellor, the Executive Council may appoint a Pro-Vice-Chancellor and the Pro-Vice-Chancellor so appointed shall cease to hold office as such as soon as a Vice-Chancellor is appointed and enters upon his office. 16 ----- (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Executive Council from time to time. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. 4. Registrar.—(1) The Registrar shall be appointed by the Executive Council on the recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Executive Council from time to time: Provided that the Registrar shall retire on attaining the age of sixty years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the officer shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and academic staff, as may be specified in the order of the Executive Council and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon concluding of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Executive Council, the Academic Council and the College Development Council, but shall not be deemed to be a member of any of these authorities and he shall be ex officio Member-Secretary of the Court. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charges; (b) to issue all notices convening meetings of the Court, the Executive Council, the Academic Council, the College Development Council, and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council, the Academic Council, the College Development Council and of any committees appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council, the Academic Council and the College Development Council; (e) to arrange for and superintend the examinations of the University in accordance with the manner prescribed by the Ordinances; 17 ----- (f) to supply to the Visitor copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (g) to represent the University in suits or proceedings by or against the University, sign powers of attorney and verify pleading or depute his representative for the purpose; and (h) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time by the Executive Council or the ViceChancellor. 5. The Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Executive Council from time to time: Provided that a Finance Officer shall retire on attaining the age of sixty years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio_ Secretary of the Finance Committee, but shall not be deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and nonrecurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Special Centres, Specialised Laboratories, Colleges and Institutions maintained by the University; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and 18 ----- (h) call for from any office, Centre, Laboratory, College or Institution maintained by the University and information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. 6. _Deans of Schools of Studies.—(1) Every Dean of a School of Studies shall be appointed by the_ Vice-Chancellor from among the Professors in the School for a period of three years and he shall be eligible for re-appointment: Provided that a Dean on attaining the age of sixty years shall cease to hold office as such: Provided further that if at any time there is no Dean in a School, the Vice- Chancellor, Pro-Vice Chancellor or a Dean authorised by the Vice-Chancellor in this behalf, shall exercise the powers of the Dean of the School. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in the School and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the School, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. 7. Heads of Departments.—(1) In the case of Departments which have more than one Professor, the Head of the Department shall be appointed by the Executive Council on the recommendation of the ViceChancellor from among the Professors. (2) In the case of Departments where there is no Professor or there is only one Professor, the Executive Council shall have the option to appoint, on the recommendation of the Vice Chancellor, either the Professor or a Reader as the Head of the Department: Provided that it shall be open to a Professor or Reader to decline the offer of appointment as the Head of the Department. (3) A Professor appointed as the Head of the Department shall hold office as such for a period of three years and shall be eligible for re-appointment. (4) A Head of a Department may resign his office at any time during his tenure of office. (5) A Head of a Department shall perform such functions as may be prescribed by the Ordinances. 8. Proctor.—(1) The Proctor shall be appointed by the Executive Council on the recommendation of the Vice-Chancellor and shall exercise such powers and perform such duties as may be assigned to him by the Vice-Chancellor. (2) The Proctor shall hold office for a term of two years and shall be eligible for reappointment. 9. _Librarian.—(1) The Librarian shall be appointed by the Executive Council on the_ recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Executive Council. 10. Meetings of the Court.—(1) An annual meeting of the Court shall be held on a date to be fixed by the Executive Council unless some other date has been fixed by the Court in respect of any year. 19 ----- (2) At an annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance sheet as audited, and the financial estimates for the next year shall be presented. (3) A copy of the statement of receipts and expenditure, the balance-sheet and the financial estimates referred to in clause (2) shall be sent to every member of the Court at least seven days before the date of the annual meeting. (4) Twelve members of the Court shall form a quorum for a meeting of the Court. (5) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, Pro-Vice-Chancellor or if there is no Pro Vice-Chancellor, by the Registrar. 11. _Quorum for meetings of the Executive Council.—Five members of the Executive Council shall_ form a quorum for a meeting of the Executive Council. 12. Powers and functions of the Executive Council.—(1) The Executive Council shall have the power of management and administration of the revenue and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff and Principals of Colleges and Institutions maintained by the University: Provided that no action shall be taken by the Executive Council in respect of the number, qualification and the emoluments of teachers and academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, and Principals of Colleges and Institutions maintained by the University on the recommendation of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to create administrative, ministerial and other necessary posts and to make appointments thereto in the manner prescribed by the Ordinances; (iv) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (v) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vi) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University and for that purpose to appoint such agents as it may think fit; (vii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendation of the Finance Committee; (viii) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (ix) to transfer or accept transfers of any movable or immovable property on behalf of the University; (x) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xi) to enter into, vary, carry out and cancel contrasts on behalf of the University; 20 ----- (xii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiii) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xiv) to select a common seal for the University and provide for the custody and use of such seal; (xv) to make such special arrangements as may be necessary for the residence and discipline of women students; (xvi) to delegate any of its powers to the Vice-Chancellor, the Pro-Vice-Chancellor, the Deans, the Registrar or the Finance Officer or such other employee or authority of the University or to a committee appointed by it as it may deem fit; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for inviting Writers-in-Residence and determine the terms and conditions or such invitations; (xix) to provide for the appointment of Visiting Professors, Emeritus Professors; Consultants and Scholars and determine the terms and conditions of such appointments; and (xx) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act, or the Statutes. 13. Quorum for meetings of the Academic Council.—Nine members of the Academic Council shall form a quorum for a meeting of the Academic Council. 14. _Powers and functions of the Academic Council.—Subject to the Act, the Statutes and the_ Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instructions, co-ordinating teaching among the Colleges and the Institutions, evaluation of research or improvement in academic standards; (b) to bring about inter-School co-ordination, to establish or appoint committees or boards, for taking up projects on an inter-School basis; (c) to consider matters of general academic interest either on its own initiative or on a reference by a School or the Executive Council and to take appropriate action thereon; and (d) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residences, admissions, award of fellowships and studendships, fees, concessions, corporate life and attendance. 15. _School of Studies and Departments.—(1) The University shall have such Schools of Studies as_ may be specified in the Statutes. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Executive Council and shall hold office for a period of three years. (3) The powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Each School shall consist of such Departments as may be assigned to it by the Ordinances: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. 21 ----- (b) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) Persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) Such other persons as may be members of the Department accordance with the provisions of the Ordinances. 16. Board of Studies.—(1) Each Department shall have a Board of Studies. (2) The composition of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of a Board of Studies shall be approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner as prescribed by the Ordinances— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors of research; and (c) measures for the improvement of the standard of teaching and research: Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. 17. _Finance Committee.—(1) The Finance Committee shall consist of the following members,_ namely:— (i) the Vice-Chancellor. (ii) the Pro-Vice-Chancellor. (iii) three persons nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (iv) three persons nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinize proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, should be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). 22 ----- 18. Selection Committee.—(1) There shall be a Selection Committee for making recommendations to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Colleges and Institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in column 1 of the Table below shall consist of the Vice-Chancellor, Pro-Vice-Chancellor, a nominee of the Visitor and the person specified in the corresponding entry in column 2 of the said Table:— 1 2 Professor (i) The Head of the Department concerned if he is a Professor. (ii) One Professor to be nominated by the Vice-Chancellor. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Head of the Department concerned. (ii) One Professor to be nominated by the Vice-Chancellor. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader or a Lecturer will be concerned. Registrar/Finance Officer (i) Two members of the Executive Council nominated by it; and (ii) One person not in the service of the University, nominated by the Executive Council. Librarian (i) Two persons not in the service of the University, who have special knowledge of the subject of the Library Science/Library Administration to be nominated by the Executive Council. (ii) One person not in the service of the University, nominated by the Executive Council. Principal of College or Institution maintained by the university Three persons not in the service of the University of whom two shall be nominated by the Executive Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. NOTE: 1. Where the appointment is being made for an inter-disciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. 2. The Professor to be nominated shall be Professor concerned with the speciality for which the selection is being made and that the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. (3) The Vice-Chancellor, or in his absence, the Pro-vice-Chancellor shall preside at the meetings of a Selection Committee: Provided that the meetings of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor’s nominee and the persons nominated by the Executive Council under clause (2): 23 ----- Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) Where the number of Visitor’s nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) Where the number of Visitor’s nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The meeting of a Selection Committee shall be convened by the Vice-Chancellor or in his absence by the Pro-Vice-Chancellor. (5) The procedure to be followed by a Selection Committee in making recommendations shall be laid down in the Ordinances. (6) If the Executive Council is unable to accept the recommendations made by a Selection committee, it shall record its reasons and submit the case to the Visitor for final orders. (7) Appointments to temporary posts shall be made in the manner indicated below: (i) If the temporary vacancy is for duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis by a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in the case of sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee of a regular Selection Committee, for a temporary or permanent appointment, as the case may be. 19. _Special mode of appointment.—(1) Notwithstanding anything contained in Statute 18, the_ Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or Reader or any other academic post in the University, as the case may be, on such terms and conditions as it deems fit, and on the person agreeing to do so appoint him to the post. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. 20. Appointment for a fixed tenure.—The Executive Council may appoint a person selected in accordance with the procedure laid down in Statute 18 for a fixed tenure on such terms and conditions as it deems fit. 21. _Recognised teachers.—(1) The qualifications of recognised teachers shall be such as may be_ prescribed by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down in the Ordinances. (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. 24 ----- (4) The period of registration of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. (6) Any person aggrieved by an order of withdrawal under clause (5) may, within three months from the date of communication to him of such order, appeal to the Executive Council which may pass such orders thereon as it thinks fit. 22. _Committees.—(1) Any Authority of the University may appoint as many standing or special_ committee as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) Any such Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing. 23. Terms and conditions of service and code of conduct of the teachers, etc.—(1) All the teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statues, the Ordinances and the Regulations. (2) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (3) A copy of every contract referred to in clause (2) shall be deposited with the Registrar. 24. Terms and conditions of service and code of conduct of other employees.—All the employees of the University, other than the teachers and other academic staff of the University, shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. 25. Seniority List.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and, in accordance with such other principles as the Executive Council may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. 26. Removal of employees of the University.—(1) Where there is an allegation of misconduct against a teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employees may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other academic staff, and the appointing authority, in respect of other employees, shall have the power to 25 ----- remove a teacher or a member of the academic staff, or as the case may be, other employee on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months’ notice or on payment of three months’ salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months’ notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months’ salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month’s notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month’s salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority as the case may be. 27. _Honorary degrees.—(1) The Executive Council may, on the recommendation of the Academic_ Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitors for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. 28. _Withdrawal of Degrees, etc.—The Executive Council may, by a special resolution passed by a_ majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for goods and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon to him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. 29. Maintenance of discipline among students of the University.—(1) All powers relating to discipline and disciplinary action in relation to students of the University shall vest in the Vice-Chancellor. (2) The Vice-Chancellor may delegate all or any of his powers as he deems proper to a proctor and to such other officers as he may specify in this behalf. (3) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of his powers, by order, direct that any student or students be expelled, or rusticated, for a specified period, or be not admitted to a course or courses of study in a College, Institution or 26 ----- Department or a School of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a School for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (4) The Principals of colleges, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Schools and teaching Departments in the University as may be necessary for the proper conduct of such Colleges, Institutions, Schools and teaching Departments. (5) Without prejudice to the powers of the Vice-Chancellor, the Principal and other persons specified in clause (4), detailed rules of discipline and proper conduct shall be made by the University. The Principals of Colleges, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make the supplementary rules as they deem necessary for the aforesaid purposes. (6) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. 30. Maintenance of discipline among Students of College, etc.—All powers relating to discipline and disciplinary action in relation to students of a College or an Institution, not maintained by the University, shall vest in the Principal of the College or Institution, as the case may be, in accordance with the procedure prescribed by the Ordinances. 31. _Admission of Colleges, etc., to the privileges of the University.—(1) Colleges and other_ Institutions situated within the jurisdiction of the University may be admitted to such privileges of the University as the Executive Council and the College Development Council may decide on the following conditions, namely:— (i) Every such college or Institution shall have a regularly constituted Governing Body, consisting of not more than fifteen persons approved by the Executive Council and including among others, two teachers of the University to be nominated by the Executive Council and three representatives of the teaching staff of whom the Principal of the College or Institution shall be one. The procedure for appointment of members of the Governing Body and other matters affecting the management of a College or an Institution shall be prescribed by the Ordinances: Provided that the said condition shall not apply in the case of Colleges or Institutions maintained by Government which shall, however, have an Advisory Committee consisting of not more than fifteen persons which shall consist of among others, three teachers including the Principal of the College or Institution, and two teachers of the University nominated by the Executive Council. (ii) Every such College or Institution shall satisfy the Executive Council and the College Development Council on the following matters, namely:— (a) the suitability and adequacy of its accommodation and equipment for teaching; (b) the qualifications and adequacy of its teaching staff and the conditions of their service; (c) the arrangements for the residence, welfare, discipline and supervision of students; (d) the adequacy of financial provision made for the continued maintenance of the College or Institution; and (e) such other matters as are essential for the maintenance of the standards of University education. (iii) No College or Institution shall be admitted to any privileges of the University except on the recommendation of the Academic Council made after considering the report of a Committee of Inspection appointed for the purpose by the Academic Council. 27 ----- (iv) Colleges and Institutions desirous of admission to any privileges of the University shall be required to intimate their intension to do so in writing so as to reach the Registrar not later than the 15th August, preceding the year from which permission applied for is to have effect. (v) A College or an Institution shall not, without the previous permission of the Executive Council, College Development Council and the Academic Council, suspend instruction in any subject or course of study which it is authorised to teach and teaches. (2) Appointment to the teaching staff and Principal of Colleges or Institutions admitted to the privileges of the University shall be made in the manner prescribed by the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. (3) The service conditions of the administrative and other non-academic staff of every College or Institution referred to in clause (2) shall be such as may be laid down in the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. (4) Every College or Institution admitted to the privileges of the University shall be inspected at least once in every two Academic years by a Committee appointed by the Academic Council, and the report of the Committee shall be submitted to the Academic Council, which shall forward the same to the College Development Council and Executive Council with such recommendations as it may deem fit to make. (5) The College Development Council and the Executive Council, after considering the report and the recommendations, if any, of the Academic Council, shall forward a copy of the report to the Governing Body of the College or Institution with such remarks, if any, as they may deem fit for suitable action. (6) The Executive Council may, after consulting the College Development Council and Academic Council, withdraw any privileges granted to a College or an Institution, at any time it considers that the College or Institution does not satisfy any of the conditions on the fulfilment of which the College or Institution was admitted to such privileges: Provided that before any privileges are so withdrawn, the Governing Body of the College or Institution concerned shall be given an opportunity to represent to the Executive Council why such action should not be taken. (7) Subject to the conditions set forth in clause (1), the Ordinances may prescribe— (i) such other conditions as may be considered necessary; (ii) the procedure for the admission of colleges and Institutions to the privileges of the University and for the withdrawal of those privileges. 32. Convocations.—Convocation of the University for the conferring of degrees or for other purposes shall be held in such manner as may be prescribed by the Ordinances. 33. _Acting Chairman of meetings.—Where no provision is made for a President or Chairman to_ preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. 34. Resignation.—Any member, other than an ex officio member of the Court, the Executive Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. 35. Disqualification.—(1) A person shall be disqualified for being chosen as, and for being, a member of any of the authorities of the University,— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; 28 ----- (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. 36. _Residence condition for membership and office.—Notwithstanding anything contained in the_ statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. 37. Membership of authorities by virtue of membership of other bodies.— Notwithstanding anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. 38. Alumni Association.—(1) There shall be an Alumni Association for the University. (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of the election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year’s membership shall not apply in the case of the first election. 39. Students’ Council.—(1) There shall be constituted in the University, a Students’ Council for every academic year, consisting of— (i) the Dean of Students’ Welfare who shall be the Chairman of the Students’ Council; (ii) all students who have won prizes in the previous academic year in the fields of studies, fine arts, sports and extension work; (iii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports, activities and all-round development of personality: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students’ Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students’ Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students’ welfare and other matters of importance, in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. (3) The Students’ Council shall meet at least once in an academic year preferably in the beginning of that year. 40. Ordinances how made.—(1) The first Ordinances made under sub-section (2) of section 28 may be amended, repealed or added to at any time by the Executive Council in the manner specified below. (2) No Ordinances in respect of the matters enumerated in section 28, other than those enumerated in clause (n) of sub-section (1) thereof, shall be made by the Executive Council unless a draft of such Ordinances has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. 29 ----- (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. The Visitor shall have the power to direct the University within four weeks of the receipt of the Ordinance to suspend the operation of any such Ordinance and he shall, as soon as possible, inform the Executive Council about his objection to the proposed Ordinance. The Visitor may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. 41. _Regulations.—(1) The authorities of the University may make Regulations consistent with the_ Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. 42. Delegation of Powers.—Subject to the provisions of the Act and Statutes, any officer or authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 30 -----
3-Sep-2001
29
The Indian Council of World Affairs Act, 2001
https://www.indiacode.nic.in/bitstream/123456789/1950/1/A2001-29.pdf
central
THE INDIAN COUNCIL OF WORLD AFFAIRS ACT, 2001 # ––––––– ARRANGEMENT OF SECTIONS ––––––– SECTIONS 1. Short title and commencement. 2. Declaration of the Indian Council of World Affairs as institution of national importance. 3. Definitions. 4. Incorporation of the Council. 5. Transfer of assets and liabilities of the existing Council to the Council. 6. Obligation to transfer property or assets. 7. Composition of the Council. 8. Term of office and vacancies among members. 9. Powers and functions of President. 10. Powers and functions of Vice-Presidents. 11. Allowances of members. 12. Meetings of Council. 13. Objects of Council. 14. Governing Body and other committees of Council. 15. Staff of Council. 16. Functions of Council. 17. Payment to Council. 18. Fund of Council. 19. Budget of Council. 20. Accounts and audit. 21. Annual report. 22. Authentication of orders and instruments of Council. 23. Vacancy, etc., not to invalidate proceedings of the Council. 23A. Transitory provision. 24. Reports, returns and information. 1 ----- SECTIONS 25. Power to make rules. 26. Power to make regulations. 27. Rules and regulations to be laid before Parliament. 28. Power to remove difficulties. 28A. Power to remove difficulties. 29. Repeal and saving. 2 ----- THE INDIAN COUNCIL OF WORLD AFFAIRS ACT, 2001 ACT NO. 29 OF 2001 [3rd September, 2001.] An Act to declare the Indian Council of World Affairs to be an institution of national importance and to provide for its incorporation and matters connected therewith. BE it enacted by Parliament in the Fifty-second Year of the Republic of India as follows: — **1. Short title and commencement.—(1) This Act may be called the Indian Council of World** Affairs Act, 2001. (2) Save as otherwise provided in this Act, it shall be deemed to have come into force on the 1st day of September, 2000. **2. Declaration of the Indian Council of World Affairs as institution of national** **importance.—Whereas the objects of the Indian Council of World Affairs, a society registered under** the Societies Registration Act, 1860 (21 of 1860) are such as to make the institution one of national importance, it is hereby declared that the institution, known as the Indian Council of World Affairs, is an institution of national importance. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date of commencement of this Act; (b) “Chairperson” means the Chairperson of the Governing Body; (c) “Council” means the Indian Council of World Affairs incorporated under section 4; (d) “Director-General” means the Director-General of the Council; (e) “existing Council” means the Indian Council of World Affairs, a society registered under the Societies Registration Act, 1860 (21 of 1860) and functioning as such immediately before the appointed day; (f) “Fund” means the Fund of the Council referred to in section 18; (g) “Governing Body” means the Governing Body of the Council; (h) “member” means a member of the Council and includes the President and Vice-President; (i) “President” means the President of the Council; (j) “regulations” means the regulations made under this Act; (k) “rules” means the rules made under this Act; (l) “Vice-Presidents” means the Vice-Presidents of the Council. **4. Incorporation of the Council.—(1) The Indian Council of World Affairs is hereby constituted** as a body corporate by the name of the Indian Council of World Affairs and as such body corporate it shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall by that name sue and be sued. 3 ----- (2) The head office of the Council shall be at Delhi and the Council may, with the previous approval of the Central Government, establish branches at other places in India. **5. Transfer of assets and liabilities of the existing Council to the Council.—(1) On and from** the appointed day,— (a) all properties and other assets vested in the existing Council immediately before that day, shall vest in the Council; (b) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the existing Council immediately before that day for or in connection with the purposes of the existing Council, shall be deemed to have been incurred, entered into and engaged to be done by, with or for the Council; (c) all sums of money due to the existing Council, immediately before that day, shall be deemed to be due to the Council; (d) all suits and other legal proceedings instituted or which could have been instituted by or against the existing Council, immediately before that day, may be continued or instituted by or against the Council; and (e) every employee holding any office under the existing Council immediately before that day, shall, on that day, hold his office or service under the Council with the same rights and privileges as to pension, gratuity and other matters as would have been admissible to him if there had been no such vesting; and shall continue to do so unless and until his employment under the Council is duly terminated or until his remuneration and other conditions of service are duly altered by the Council. (2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, the absorption of any employee by the Council in its regular service under this section shall not entitle such employee to any compensation under that Act or any other law and no such claim shall be entertained by any court, tribunal or other authority. **6. Obligation to transfer property or assets.—(1) Every person having possession, custody or** control of property forming part of the properties and other assets referred to in clause (a) of sub-section (1) of section 5 shall deliver forthwith such property to the Director-General. (2) Any person incharge of the property and other assets of the existing Council immediately before the commencement of this Act shall, within ten days from that day, furnish to the DirectorGeneral a complete inventory of all properties and assets (including particulars of book debts and investments and belongings) immediately before the commencement of this Act and also of all agreements entered into by the existing Council or any person on its behalf. **7. Composition of the Council.—(1) On and from the 1st day of September, 2001 and until the** appointment of date under sub-section (2), the Council shall consist of the following members, namely: — (a) the Vice-President of India, who shall be President, ex officio; (b) the Prime Minister of India; (c) the speaker of the Lok Sabha; (d) the Leader of the House, Rajya Sabha; 4 ----- (e) the Leader of the Opposition, Lok Sabha; (f) the Leader of the Opposition, Rajya Sabha. (2) On and from such date as may be appointed by the Central Government by notification in the Official Gazette [1]***, the Council shall consist of the following members, namely: — (a) the Vice-President of India, who shall be the President, ex officio; (b) three Vice-Presidents [2][to be nominated, in the first instance by the Council constituted under sub-section (1) and thereafter by the Council constituted under this sub-section]; 3[(c) Director-General, ex officio Member-Secretary;] (d) five members of the Lok Sabha to be nominated by the Speaker of the Lok Sabha and three members of the Rajya Sabha to be nominated by the Chairman of the Rajya Sabha; (e) seven members, who are distinguished in the field of diplomacy, international affairs, international law, Multilateral or United Nations affairs, security and disarmament [4][to be nominated, in the first instance by the Council constituted under sub-section (1) and thereafter by the Council constituted under this sub-section;] (f) seven members, who are representatives (of which at least two shall be the Vice-Chancellors) of Universities or research institutions of higher learning from amongst experts in the fields of history, economics and other social sciences [4][to be nominated, in the first instance by the Council constituted under sub-section (1) and thereafter by the Council constituted under this sub-section;] (g) seven members, who are [5][either media personalities or persons from organisations] such as India International Centre, Centre for Policy Research, Indian Council of Social Science Research, Institute of Defence Studies and Analyses, Indian Council of Cultural Relations, and interested in the work and objectives of the Council to be [6][nominated] by the Governing Body of the Council; (h) five members [7][from Business or] Chambers of Commerce, Federation of Indian Chambers of Commerce and Industry, Confederation of Indian Industry, Associated Chambers of Commerce and Industry of India, Federation of Indian Export Organisations to be nominated by the Governing Body of the Council; 1. Certain words and figures omitted by Act 5 of 2004, s. 2 (w.e.f. 7-1-2004). 2. Subs. by s. 2, ibid., for “as may be nominated by the Council” (w.e.f. 7-1-2004). 3. Subs. by s. 2, ibid., for clause (c) (w.e.f. 7-1-2004). 4. Subs. by s. 2, ibid., for “to be nominated by the Council” (w.e.f. 7-1-2004). 5. Subs. by s. 2, ibid., for “either media personalities or representatives of organisations” (w.e.f. 7-1-2004). 6. Subs. by s. 2, ibid., for “selected” (w.e.f. 7-1-2004). 7. Subs. by s. 2, ibid., for “who are representatives of Business or” (w.e.f. 7-1-2004). 5 ----- (i) three members from the Ministry of External Affairs, _ex officio [Foreign Secretary,_ Financial Advisor, and Dean (Foreign Service Institute)] [1]***; (j) five members to be nominated by the Central Government to represent respectively the Ministries of the Central Government dealing with Education, Culture, Urban Development, Science and Technology and Defence, ex officio. (3) It is hereby declared that the office of the member of the Council shall not disqualify its holder for being chosen as, or for being, a Member of either House of Parliament. (4) A person shall be disqualified for being nominated or selected as a member if he— (a) has been convicted and sentenced to imprisonment for an offence whi ch, in the opinion of the Central Government, involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court. **8. Term of office and vacancies among members.—(1) Save as otherwise provided in this** section, the term of office of a member shall be three years from the date of his nomination. (2) The term of office of the member nominated to fill a casual vacancy shall continue for remainder of the term of the member in whose place he is nominated. (3) A member shall, unless the Central Government otherwise directs, continue in office until another person is nominated as a member in his place. (4) The Central Government shall remove a member if he– (a) becomes subject to any of the disqualifications mentioned in sub-section (4) of section 7; or (b) refuses to act or becomes incapable of acting; or (c) is, without obtaining leave of absence from the Council, absent from three consecutive meetings of the Council; or (d) in the opinion of the Central Government, has so abused his position as to render his continuance in office detrimental to the public interest: Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter. (5) A member shall, unless disqualified under sub-section (4) of section 7, be eligible for re-nomination. (6) A member may resign from his office by writing under his hand addressed to the Central Government but shall continue in his office until his resignation is accepted by that Government. (7) The manner of filling vacancies among members shall be such as may be prescribed by rules. **9. Powers and functions of President.—The President shall exercise such powers and discharge** such functions as are laid down in this Act or as may be prescribed by rules. 1. The words “, to be nominated by the Chairperson of the Governing Body” omitted by Act 5 of 2004, s. 2 (w.e.f. 7-12004). 6 ----- **10. Powers and functions of Vice-Presidents.—The Vice-Presidents shall exercise such of the** powers and perform such of the functions of the President as may be prescribed by rules or as may be delegated to him by the President. **11. Allowances of members.—Members shall receive such allowances, if any, from the Council** as may be prescribed by rules. **12. Meetings of Council.—The Council shall hold its first meeting at such time and place as may** be appointed by the Central Government and shall observe such rules of procedure in regard to the transaction of business at the first meeting as may be laid down by that Government; and thereafter the Council shall meet at such times and places and observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed by regulations. **13. Objects of Council.—The objects of the Council shall be—** (a) to promote the study of Indian and international affairs so as to develop a body of informed opinion on international matters; (b) to promote India's relations with other countries through study, research, discussion, lectures, exchange of ideas and information with other organisations within and outside India engaged in similar activities; (c) to serve as a clearing house of information and knowledge regarding world affairs; (d) to publish books, periodicals, journals, reviews, papers, pamphlets and other literature on subjects covered under clauses (a) and (b); (e) to establish contacts with organisations promoting objects mentioned in this section; (f) to arrange conferences and seminars to discuss and study the Indian policy towards international affairs; and (g) to undertake such other activities for the promotion of ideas and attainment of the above-mentioned objects. **14. Governing Body and other committees of Council.—(1) There shall be a Governing Body** of the Council which shall be constituted by the Council. (2) The Governing Body shall be the executive committee of the Council and shall exercise such powers and discharge such functions as the Council may, by regulations made in this behalf, confer or impose upon it. (3) On and from such date as may be appointed by the Central Government by notification in the Official Gazette, the Vice-President of India, _ex officio shall be the Chairperson of the Governing_ Body and shall exercise such powers and discharge such functions as may be prescribed by regulations. (4) The procedure to be followed by the Governing Body in the exercise of its powers and discharge of its functions and the term of office of, and the manner of filling vacancies among the members of the Governing Body, shall be such as may be prescribed by regulations. (5) Subject to such control and restrictions as may be prescribed by rules, the Council may constitute as many standing committees and as many ad hoc committees as it thinks fit for exercising any power or discharging any function of the Council or for inquiring into, or reporting or advising upon, any matter which the Council may refer to them. 7 ----- (6) The Chairperson and members of the Governing Body or a standing committee or an ad hoc committee shall receive such allowances as may be prescribed by regulations. **15. Staff of Council.—[1][(1) There shall be a Director-General of the Council who shall, before a** Council is constituted under sub-section (2) of section 7, be appointed by the Council constituted under sub-section (1) of that section and thereafter during the tenure of a Council constituted under sub-section (2) of section 7, by that Council. (1A) Every appointment of the Director-General under sub-section (1) shall be made from a panel of at least two names recommended by the Government of India in the Ministry of External Affairs. (1B) The Director-General shall be the chief executive officer of the Council. (1C) The Director-General shall be at least equivalent to the rank of Additional Secretary to the Government of India and shall have a tenure not exceeding three years. (2) The Director-General shall act as _ex officio Member-Secretary to the Council, its Governing_ Body and other bodies and Committees thereof.] (3) The Director-General shall exercise such powers and discharge such functions as may be prescribed by regulations or as may be delegated to him by the Council or the President or the Governing Body or the Chairperson. (4) The Financial Advisor of the Ministry of External Affairs shall be the Financial Advisor of the Council. (5) Subject to such rules as may be made in this behalf, the Council may appoint such number of other officers and employees as may be necessary for the exercise of its powers and efficient discharge of its functions and may determine the designations an grades of such other officers and employees. (6) Subject to such rules as may be made in this behalf, the Director-General and other officers and employees of the Council shall be entitled to such salary and allowances and shall be governed by such conditions of service in respect of leave, pension gratuity, provident fund and other matters, as may be prescribed by regulations made in this behalf. **16. Functions of Council.—The Council shall undertake various plans to promote, organise and** implement various programmes for efficiently achieving the objects of the Council specified in section 13 and shall also perform such other functions as the Central Government may, by rules, prescribe. **17. Payment to Council.—The Central Government may, after due appropriation made by** Parliament by law in this behalf, pay to the Council in each financial year such sums as may be considered necessary for the exercise of powers and efficient discharge of functions of the Council under this Act. **18. Fund of Council.—(1) The Council shall maintain a Fund to which shall be credited to—** (a) all moneys received from the Central Government; (b) all moneys received by the Council by way of grants, gifts, donations, benefactions, bequests or transfers; and 1. Subs. by Act 5 of 2004, s. 3, for sub-sections (1) and (2) (w.e.f. 7-1-2004). 8 ----- (c) all moneys received by the Council in any other manner or from any other source. (2) All moneys credited to the Fund shall be deposited in such banks or invested in such manner as the Council may, subject to the approval of the Central Government, decide. (3) The Fund shall be applied towards meeting the administrative and other expenses of the Council, including expenses incurred in the exercise of its powers and discharge of its functions under section 16 or in relation to any of the activities referred to therein or for anything relatable thereto. **19. Budget of Council.—The Council shall prepare, in such form and at such time every year, as** may be prescribed by rules, a budget in respect of the financial year next ensuing, showing the estimated receipts and expenditure of the Council and shall forward to the Central Government such number of copies thereof as may be prescribed by rules. **20. Accounts and audit.—(1) The Council shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts including the balance-sheet in such form as the Central Government may, by rules, prescribe and in accordance with such general directions as may be issued by that Government, in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Council shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Council to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Council shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor General of India has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the office or offices of the Council. (4) The accounts of the Council as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **21. Annual report.—The Council shall prepare every year, in such form and at such time as may** be prescribed by rules, an annual report giving a true and full account of its activities during the previous year and copies thereof shall be forwarded to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **22. Authentication of orders and instruments of Council.—All orders and decisions of the** Council shall be authenticated by the signature of the President or the Vice-President and all other instruments issued by the Council shall be authenticated by the signature of the Director-General or any other officer of the Council authorised by the Council in this behalf. 9 ----- **23. Vacancy, etc., not to invalidate proceedings of the Council.—No act or proceeding of the** Council, Governing Body or any standing or ad hoc committee under this Act shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Council; or (b) any defect in the appointment of a person acting as a member of the Council; or (c) any irregularity in the procedure of the Council not affecting the merits of the case. 1[23A. Transitory provision.—For the removal of doubts, it is hereby declared that till the constitution of a Council in terms of sub-section (2) of section 7, the Council referred to in subsection (1) thereof shall be deemed to have been a Council for the purposes of this Act notwithstanding anything contrary contained in any provision of this Act: Provided that anything done or any action taken or any proceeding initiated under any provision of this Act or rules or regulations made there under shall not be called in question before any court or other authority because of non-existence of a Council in terms of sub-section (2) of section 7.] **24. Reports, returns and information.—The Council shall furnish to the Central Government** such reports, returns and other information as that Government may require from time to time. **25. Power to make rules.—(1) The Central Government may, by notification in the Official** Gazette, make rules to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner of filling vacancies among members under sub-section (7) of section 8; (b) the powers and functions to be exercised and discharged by the President and the Vice-Presidents under sections 9 and 10, as the case may be; (c) the allowances to be paid to the members under section 11; (d) the control and restrictions in relation to the constitution of standing and _ad hoc_ committees under sub-section (5) of section 14; (e) the number of other officers and employees that may be appointed by the Council and the manner of such appointment under sub-section (5) of section 15; (f) the salaries and allowances payable to the Director-General and other officers and employees of the Council under sub-section (6) of section 15; (g) such other functions to be performed by the Council under section 16; (h) the form in which and the time at which the budget shall be prepared by the Council and the number of copies thereof to be forwarded to the Central Government under section 19; (i) the form in which an annual statement of accounts including the balance-sheet shall be prepared by the Council under sub-section (1) of section 20; (j) the form in which and the time at which the annual report of the activities of the Council shall be submitted to the Central Government under section 21; 1. Ins. by Act 5 of 2004, s. 4 (w.e.f. 7-1-2004). 10 ----- (k) any other matter which has to be or may be prescribed by rules. **26. Power to make regulations.—(1) The Council may make regulations consistent with the** provisions of this Act and the rules to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely: — (a) the summoning and holding of meetings, other than the first meeting of the Council, the time and place where such meetings are to be held and the transaction of business at such meetings under section 12; (b) the powers and functions to be exercised and discharged by the Governing Body and the Chairperson under sub-sections (2) and (3) of section 14; (c) the procedure to be followed by the Governing Body in exercise of its powers and discharge of its functions and the term of office of, and the manner of filling vacancies among, the members of the Governing Body under sub-section (4) of section 14; (d) the allowances to be paid to the Chairperson and members of the Governing Body, standing and ad hoc committees under sub-section (6) of section 14; (e) the powers and functions to be exercised and discharged by the Director-General under sub-section (3) of section 15; (f) the conditions of service of the Director-General and other officers and employees of the Council under sub-section (6) of section 15; (g) any other matter which has to be or may be prescribed by regulations. (3) Notwithstanding anything contained in sub-section (1), the first regulations under this Act shall be made by the Governing Body and any regulations so made may be altered or rescinded by the Council in exercise of its powers under sub-section (1). **27. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **28. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 11 ----- 1[28A. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of the Indian Council of World Affairs (Amendment) Act, 2003 (5 of 2004), the Central Government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the commencement of the Indian Council of World Affairs (Amendment) Act, 2003 (5 of 2004). (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.] **29. Repeal and saving.—(1) The Indian Council of World Affairs (Second) Ordinance, 2001** (Ord. 3 of 2001) is hereby repealed. (2) Notwithstanding the repeal of the said Ordinance, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 1. Ins. by Act 5 of 2004, s. 5 (w.e.f. 7-1-2004). 12 -----
14-Sep-2001
45
The ADVOCATES’ WELFARE FUND ACT, 2001
https://www.indiacode.nic.in/bitstream/123456789/2002/1/A2001-45.pdf
central
# THE ADVOCATES’ WELFARE FUND ACT, 2001 __________ # ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II CONSTITUTION OF ADVOCATES’ WELFARE FUND 3. Advocates’ Welfare Fund. CHAPTER III ESTABLISHMENT OF TRUSTEE COMMITTEE 4. Establishment of Trustee Committee. 5. Disqualifications and removal of Chairperson or Member of Trustee Committee. 6. Resignation by nominated Chairperson and Members of Trustee Committee and filling up of casual vacancy. 7. Vacancies, etc., not to invalidate proceedings of Trustee Committee. 8. Meetings of Trustee Committee. 9. Travelling and daily allowances to nominated Chairperson and Members of Trustee Committee. 10. Vesting and application of Fund. 11. Functions of Trustee Committee. 12. Borrowing and investment. 13. Accounts and audit. 14. Powers and duties of Secretary. 15. Payment of certain monies to Fund by State Bar Council. CHAPTER IV RECOGNITION OF ANY ASSOCIATION OF ADVOCATES 16. Recognition by a State Bar Council of any association of advocates. 17. Duties of State Bar Associations and State Advocates’ Associations. CHAPTER V MEMBERSHIP AND PAYMENT OUT OF ADVOCATES’ WELFARE FUND 18. Membership in Fund. 19. _Ex gratia grant to a member of Fund._ 20. Review. 21. Payment of amount on cessation of practice. 22. Restriction on alienation, attachment, etc., of interest of member in Fund. 23. Exemption from income-tax. 24. Group Life Insurance for members of Fund and other benefits. 25. Appeal against decision or order of Trustee Committee. ----- CHAPTER VI PRINTING, DISTRIBUTION AND CANCELLATION OF STAMPS SECTIONS 26. Printing and distribution of Advocates’ Welfare Fund Stamps by State Bar Council. 27. Vakalatnama to bear stamps. CHAPTER VII MISCELLANEOUS 28. Certain persons not to be eligible for benefits. 29. Protection of action taken in good faith. 30. Bar of jurisdiction of civil courts. 31. Power to summon witnesses and take evidence. 32. Power to amend Schedules I and II. 33. Power of appropriate Government to issue directions. 34. Power of appropriate Government to supersede Trustee Committee. 35. Power of Central Government to make rules. 36. Power of State Government to make rules. 37. Rules and notifications to be laid before Parliament or State Legislature. 38. Saving. SCHEDULE I. SCHEDULE II. ----- # THE ADVOCATES’ WELFARE FUND ACT, 2001 # ACT NO. 45 OF 2001 [14th September, 2001.] # An Act to provide for the constitution of a welfare fund for the benefit of advocates and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-second Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **[1. Short title, extent and commencement.—(1) This Act may be called the Advocates’ Welfare](http://indiankanoon.org/doc/137969/)** Fund Act, 2001. [(2) It extends to the whole of India.](http://indiankanoon.org/doc/916798/) [(3) It shall come into force on such date[1] as the Central Government may, by notification, appoint;](http://indiankanoon.org/doc/1316945/) and different dates may be appointed for different provisions of this Act and for different States, and any reference in any such provision to the commencement of this Act shall be construed in relation to any State as a reference to the coming into force of that provision in that State. **[2. Definitions.—In this Act, unless the context otherwise requires,—](http://indiankanoon.org/doc/1025504/)** [(a) “advocate” means an advocate whose name has been entered in the State roll prepared and](http://indiankanoon.org/doc/1175886/) maintained by a State Bar Council under section 17 of the Advocates Act, 1961 (25 of 1961) and who is a member of a State Bar Association or State Advocates’ Association; [(b) “appropriate Government” means,—](http://indiankanoon.org/doc/92728/) [(i) in the case of advocates admitted on the roll of a Bar Council of a State, the State](http://indiankanoon.org/doc/231131/) Government; [(ii) in the case of advocates admitted on the roll of a Bar Council of a Union territory, the](http://indiankanoon.org/doc/509433/) Central Government; [(c) “cessation of practice” means removal of the name of an advocate from the State roll under](http://indiankanoon.org/doc/120011/) section 26A of the Advocates Act, 1961 (25 of 1961); [(d) “Chairperson” means the Chairperson of the Trustee Committee referred to in clause (a) of](http://indiankanoon.org/doc/1739027/) sub-section (3) of section 4; [(e) “chartered accountant” means a chartered accountant as defined in clause (b) of](http://indiankanoon.org/doc/1746114/) sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; [(f) “dependants” means the spouse, parents or minor children of a member of the Fund;](http://indiankanoon.org/doc/761817/) [(g) “Fund” means the Advocates’ Welfare Fund constituted under sub-section (1) of section 3;](http://indiankanoon.org/doc/1684031/) [(h) “insurer” shall have the meaning assigned to it in clause (9) of section 2 of the Insurance](http://indiankanoon.org/doc/1375050/) Act, 1938 (4 of 1938); [(i) “member of the Fund” means an advocate admitted to the benefits of the Fund and who](http://indiankanoon.org/doc/1519666/) continues to be a member thereof under the provisions of this Act; [(j) “notification” means a notification published in the Official Gazette of the appropriate](http://indiankanoon.org/doc/303427/) Government and the expression “notified” shall be construed accordingly; [(k) “prescribed” means prescribed by rules made under this Act;](http://indiankanoon.org/doc/1138471/) [(l) “Schedule” means a Schedule to this Act;](http://indiankanoon.org/doc/270836/) [(m) “scheduled bank” shall have the meaning assigned to it in clause (e) of section 2 of the](http://indiankanoon.org/doc/641151/) Reserve Bank of India Act, 1934 (2 of 1934); ----- [(n) “stamp” means the Advocates’ Welfare Fund Stamp printed and distributed under](http://indiankanoon.org/doc/242122/) section 26; [(o) “State” means a State specified in the First Schedule to the Constitution and shall include a](http://indiankanoon.org/doc/1057155/) Union territory; [(p) “State Advocates’ Association” means an association of advocates in a State recognised by](http://indiankanoon.org/doc/91940/) the Bar Council of that State under section 16; [(q) “State Bar Association” means an association of advocates recognised by the Bar Council of](http://indiankanoon.org/doc/1451269/) that State under section 16; [(r) “State Bar Council” means a Bar Council referred to in section 3 of the Advocates](http://indiankanoon.org/doc/1828643/) Act, 1961 (25 of 1961); [(s) “suspension of practice” means voluntary suspension of practice as an advocate or suspension](http://indiankanoon.org/doc/94117/) of an advocate by a State Bar Council for misconduct; [(t) “Trustee Committee” means the Advocates’ Welfare Fund Trustee Committee established](http://indiankanoon.org/doc/275093/) under sub-section (1) of section 4; [(u) “Vakalatnama” includes memorandum of appearance or any other document by which an](http://indiankanoon.org/doc/1707371/) advocate is empowered to appear or plead before any court, tribunal or other authority; [(v) words and expressions used and not defined in this Act but defined in the Advocates](http://indiankanoon.org/doc/705794/) Act, 1961 (25 of 1961) shall have the meanings respectively assigned to them in that Act. CHAPTER II CONSTITUTION OF ADVOCATES’ WELFARE FUND **[3. Advocates’ Welfare Fund.—(1) The appropriate Government shall constitute a fund to be called](http://indiankanoon.org/doc/994939/)** the “Advocates’ Welfare Fund”. [(2) There shall be credited to the Fund—](http://indiankanoon.org/doc/993351/) [(a) all amounts paid by a State Bar Council under section 15;](http://indiankanoon.org/doc/425816/) [(b) any other contribution made by a State Bar Council;](http://indiankanoon.org/doc/551161/) [(c) any voluntary donation or contribution made to the Fund by the Bar Council of India, any](http://indiankanoon.org/doc/699794/) State Bar Association, any State Advocates’ Association or other association or institution, or any advocate or other person; [(d) any grant which may be made by the Central Government or a State Government to the Fund](http://indiankanoon.org/doc/1613789/) after due appropriation made in this behalf; [(e) any sums borrowed under section 12;](http://indiankanoon.org/doc/1071694/) [(f) all sums collected under section 18;](http://indiankanoon.org/doc/1998332/) [(g) all sums received from the Life Insurance Corporation of India or any other insurer on the](http://indiankanoon.org/doc/44927/) death of any member of the Fund under any Group Insurance Policy; [(h) any profit or dividend or refund received from the Life Insurance Corporation of India or any](http://indiankanoon.org/doc/1774904/) other insurer in respect of policies of Group Insurance of the members of the Fund; [(i) any interest or dividend or other return on any investment made out of any part of the Fund;](http://indiankanoon.org/doc/1581621/) [(j) all sums collected by way of sale of stamps under section 26.](http://indiankanoon.org/doc/1832903/) [(3) The sums specified in sub-section (2) shall be paid to, or collected by, such agencies, at such](http://indiankanoon.org/doc/1395163/) intervals and in such manner, as may be prescribed. CHAPTER III ESTABLISHMENT OF TRUSTEE COMMITTEE **[4. Establishment of Trustee Committee.—(1) With effect from such date as the appropriate](http://indiankanoon.org/doc/1813177/)** Government may, by notification, appoint in this behalf, there shall be established a Trustee Committee to be called the “Advocates’ Welfare Fund Trustee Committee” ----- [(2) The Trustee Committee shall be a body corporate having perpetual succession and a common seal](http://indiankanoon.org/doc/135712/) with power to acquire, hold and dispose of property and shall, by the said name, sue and be sued. [(3) The Trustee Committee shall consist of—](http://indiankanoon.org/doc/382337/) (a) the Advocate-General of a State - Chairperson, ex officio: Provided that where there is no Advocate-General of a State, the appropriate Government shall nominate a senior advocate to be the Chairperson; (b) the Secretary to the appropriate Government in its Law Department or Ministry (c) the Secretary to the appropriate Government in its Home Department or Ministry - Member, ex officio; - Member, ex officio; (d) the Chairman of the State Bar Council - Member, ex officio; (e) the Government Pleader or the Public Prosecutor, as may be nominated by the appropriate Government (f) two advocates to be nominated by the State Bar Council - Member; - Members; (g) the Secretary of the State Bar Council - Secretary, ex officio. (4) The Chairperson nominated under the proviso to clause (a) of sub-section (3) shall hold office for a period not exceeding three years from the date on which he enters upon his office. [(5) Every Member of the Trustee Committee nominated under clause (e) or clause (f) of](http://indiankanoon.org/doc/1900178/) sub-section (3) shall hold office for a period not exceeding three years from the date on which he enters upon his office. **[5. Disqualifications and removal of Chairperson or Member of Trustee Committee.—(1) The](http://indiankanoon.org/doc/651084/)** appropriate Government shall remove from office the Chairperson or any Member of the Trustee Committee, who— [(a) is, or at any time has been, adjudged as an insolvent; or](http://indiankanoon.org/doc/606256/) [(b) has become physically or mentally incapable of acting as the Chairperson or a Member of the](http://indiankanoon.org/doc/835206/) Trustee Committee; or [(c) has been convicted of an offence which, in the opinion of the appropriate Government,](http://indiankanoon.org/doc/91553/) involves moral turpitude; or [(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as](http://indiankanoon.org/doc/968176/) the Chairperson or a Member of the Trustee Committee; or [(e) has so abused his position as to render his continuation in office detrimental to the public](http://indiankanoon.org/doc/11213/) interest; or [(f) is, or at any time has been, absent without leave of the Trustee Committee for more than three](http://indiankanoon.org/doc/830213/) consecutive meetings of the Trustee Committee: Provided that the Trustee Committee may, on sufficient ground, condone the absence of such Chairperson or Member. [(2) No such Chairperson or Member of the Trustee Committee shall be removed under clause (d) or](http://indiankanoon.org/doc/1776707/) clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard. **[6. Resignation by nominated Chairperson and Members of Trustee Committee and filling up of](http://indiankanoon.org/doc/1729276/)** **[casual vacancy.—(1) The Chairperson referred to in sub-section (4) of section 4 or a Member nominated](http://indiankanoon.org/doc/460869/)** under clause (e) of sub-section (3) of that section may resign his office by giving three months’ notice in writing to the appropriate Government and on such resignation being accepted by the appropriate ----- [(2) A Member nominated under clause (f) of sub-section (3) of section 4 may resign his office by](http://indiankanoon.org/doc/85284/) giving three months’ notice in writing to the State Bar Council and on such resignation being accepted by the State Bar Council such Member shall vacate his office. [(3) A casual vacancy in the office of the Chairperson or a Member referred to in sub-section (1) who](http://indiankanoon.org/doc/1115223/) has resigned may be filled up, as soon as may be, by the appropriate Government and the Chairperson or a Member so nominated shall hold office only so long as the Chairperson or the Member in whose place he is nominated would have been entitled to hold office if the vacancy did not occur. [(4) A casual vacancy in the office of a Member referred to in sub-section (2) who has resigned may](http://indiankanoon.org/doc/1721154/) be filled up, as soon as may be, by the State Bar Council and a Member so nominated shall hold office only so long as the Member in whose place he is nominated would have been entitled to hold office if the vacancy did not occur. **[7. Vacancies, etc., not to invalidate proceedings of Trustee Committee.—No act or proceeding of](http://indiankanoon.org/doc/1079934/)** the Trustee Committee shall be invalid merely by reason of— [(a) any vacancy in, or any defect in the constitution of, the Trustee Committee; or](http://indiankanoon.org/doc/260332/) [(b) any defect or irregularity in the nomination of a person acting as the Chairperson or a Member](http://indiankanoon.org/doc/782423/) of the Trustee Committee; or [(c) any irregularity in the procedure of the Trustee Committee not affecting the merits of the case.](http://indiankanoon.org/doc/1979188/) **[8. Meetings of Trustee Committee.—(1) The Trustee Committee shall meet at least once in every](http://indiankanoon.org/doc/1460280/)** three calendar months and at least four such meetings shall be held in every year to transact business under this Act and the rules made thereunder. [(2) Three Members of the Trustee Committee shall form the quorum for a meeting of the Trustee](http://indiankanoon.org/doc/682790/) Committee. [(3) The Chairperson of the Trustee Committee or, if for any reason, he is unable to attend a meeting](http://indiankanoon.org/doc/851608/) of the Trustee Committee, any other Member chosen by the Members of the Trustee Committee present from amongst themselves at the meeting shall preside at the meeting. [(4) All questions which come up in a meeting of the Trustee Committee shall be decided by a](http://indiankanoon.org/doc/1013515/) majority vote of the Members of the Trustee Committee present and voting, and, in the event of an equality of votes, the Chairperson, or in his absence, the Member of the Trustee Committee presiding, shall have a second or casting vote. **[9. Travelling and daily allowances to nominated Chairperson and Members of Trustee](http://indiankanoon.org/doc/118602/)** **Committee.—The Chairperson referred to in sub-section (4) of section 4 and Members of the Trustee** Committee referred to in clauses (e) and (f) of sub-section (3) of that section shall be entitled to be paid such travelling and daily allowances as are admissible to the members of the State Bar Council. **[10. Vesting and application of Fund.—The Fund shall vest in, and be held and applied by, the](http://indiankanoon.org/doc/280059/)** Trustee Committee subject to the provisions, and for the purposes, of this Act. **[11. Functions of Trustee Committee.—(1) Subject to the provisions of this Act and any other law](http://indiankanoon.org/doc/1536019/)** for the time being in force, the Trustee Committee shall administer the Fund. [(2) Without prejudice to the generality of the provisions contained in sub-section (1), the Trustee](http://indiankanoon.org/doc/1790093/) Committee shall— [(a) hold the amounts and assets belonging to the Fund in trust;](http://indiankanoon.org/doc/594813/) [(b) receive applications for admission or re-admission as members to the Fund, and dispose of](http://indiankanoon.org/doc/124898/) such applications within ninety days from the date of receipt thereof; [(c) receive applications from the members of the Fund, their nominees or legal heirs, as the case](http://indiankanoon.org/doc/1667276/) may be, for payment out of the Fund, conduct such enquiry as it deems necessary and dispose of the applications within five months from the date of receipt thereof; [(d) record in the minutes book of the Trustee Committee, its decisions on the applications;](http://indiankanoon.org/doc/329433/) [(e) pay to the members of the Fund or their nominees or legal heirs, as the case may be, the](http://indiankanoon.org/doc/8304/) amounts at the rates specified in Schedule I; ----- [(f) send such periodical and annual reports as may be prescribed, to the appropriate Government](http://indiankanoon.org/doc/1898182/) and the State Bar Council; [(g) communicate to the applicants, by registered post with acknowledgment due or through](http://indiankanoon.org/doc/1237931/) electronic mode, the decisions of the Trustee Committee in respect of applications for admission or re-admission as members to the Fund or claims to the benefit of the Fund; [(h) do such other acts as are, or may be, required to be done under this Act and the rules made](http://indiankanoon.org/doc/648475/) thereunder. **[12. Borrowing and investment.—(1) The Trustee Committee may, with the prior approval of the](http://indiankanoon.org/doc/888735/)** appropriate Government and the State Bar Council, borrow, from time to time, any sum required for carrying out the purposes of this Act. [(2) The Trustee Committee shall deposit all monies and receipts forming part of the Fund in any](http://indiankanoon.org/doc/1005674/) scheduled bank or invest the same in debt instruments of any corporation owned or controlled by the appropriate Government or in loans floated by the appropriate Government or in any other manner as the State Bar Council may, from time to time, direct with the prior approval of the appropriate Government. [(3) All amounts due and payable under this Act and all expenditure relating to the management and](http://indiankanoon.org/doc/826364/) administration of the Fund shall be paid out of the Fund. **[13. Accounts and audit.—(1) The Trustee Committee shall maintain proper accounts and other](http://indiankanoon.org/doc/302261/)** relevant records and prepare an annual statement of accounts and annual report in such form and in such manner as may be prescribed. [(2) The accounts of the Trustee Committee shall be audited annually by a chartered accountant](http://indiankanoon.org/doc/1322112/) appointed by the State Bar Council. [(3) The accounts of the Trustee Committee as audited by the chartered accountant together with his](http://indiankanoon.org/doc/1847670/) audit report shall be forwarded to the State Bar Council by that Committee and the State Bar Council may issue such directions, as it deems fit, to the Trustee Committee in respect thereof. [(4) The Trustee Committee shall comply with the directions issued by the State Bar Council under](http://indiankanoon.org/doc/1124999/) sub-section (3). [(5) The Trustee Committee shall pay from the Fund the charges for the audit as may be fixed by the](http://indiankanoon.org/doc/1102457/) State Bar Council. **[14. Powers and duties of Secretary.—The Secretary of the Trustee Committee shall—](http://indiankanoon.org/doc/553828/)** [(a) be the chief executive authority of the Trustee Committee and responsible for carrying out its](http://indiankanoon.org/doc/1152543/) decisions; [(b) represent the Trustee Committee in all suits and proceedings for and against the Trustee](http://indiankanoon.org/doc/1056279/) Committee; [(c) authenticate by his signature all decisions and instruments of the Trustee Committee;](http://indiankanoon.org/doc/695863/) [(d) operate bank account of the Trustee Committee jointly with the Chairperson;](http://indiankanoon.org/doc/586700/) [(e) convene meetings of the Trustee Committee and prepare minutes of such meetings;](http://indiankanoon.org/doc/298835/) [(f) attend meetings of the Trustee Committee with all the necessary records and information;](http://indiankanoon.org/doc/1293071/) [(g) maintain such forms, registers and other records as may be prescribed from time to time and](http://indiankanoon.org/doc/382958/) do all correspondence relating to the Trustee Committee; [(h) prepare an annual statement of business transacted by the Trustee Committee during a](http://indiankanoon.org/doc/1595157/) financial year; [(i) do such other acts as are or may be directed by the Trustee Committee and the State Bar](http://indiankanoon.org/doc/412421/) Council. **[15. Payment of certain monies to Fund by State Bar Council.—The State Bar Council shall pay to](http://indiankanoon.org/doc/1376637/)** the Fund annually an amount equal to twenty per cent. of the enrolment fee received by it under clause (f) of section 24 of the Advocates Act, 1961 (25 of 1961). ----- CHAPTER IV RECOGNITION OF ANY ASSOCIATION OF ADVOCATES **[16. Recognition by a State Bar Council of any association of advocates.—(1) Any association of](http://indiankanoon.org/doc/973907/)** advocates known by any name which is registered as an association before the date of commencement of this Act may, before the date to be notified by a State Bar Council in this behalf, apply for recognition to the State Bar Council in such form as may be prescribed. [(2) Any association of advocates known by any name which is registered as an association on or after](http://indiankanoon.org/doc/1833395/) the date of commencement of this Act may, within three months from the date of its registration as an association, apply for recognition to the State Bar Council in such form as may be prescribed. [(3) Every application for recognition under sub-section (1) or sub-section (2) shall be accompanied](http://indiankanoon.org/doc/1327058/) by,— [(a) a copy of the rules or bye-laws of the association;](http://indiankanoon.org/doc/1451263/) [(b) names and addresses of office bearers of the association;](http://indiankanoon.org/doc/991030/) [(c) a list of members of the association containing the name, address, age, enrolment number and](http://indiankanoon.org/doc/1426091/) date of enrolment with the State Bar Council and the ordinary place of practice of each member. [(4) The State Bar Council may, after such enquiry as it deems necessary, recognise the association](http://indiankanoon.org/doc/365671/) and issue a certificate of recognition in such form as may be prescribed. [(5) The decision of the State Bar Council on any matter regarding recognition of an association under](http://indiankanoon.org/doc/791540/) sub-section (4) shall be final. _Explanation.—In this section, “registered” means registered or deemed to be registered under the_ Societies Registration Act, 1860 (21 of 1860) or any other law for the time being in force. **[17. Duties of State Bar Associations and State Advocates’ Associations.—(1) Every State Bar](http://indiankanoon.org/doc/333809/)** Association and State Advocates’ Association shall, on or before the 15th day of April of every year, furnish to the State Bar Council a list of its members as on the 31st day of March of that year. [(2) Every State Bar Association and State Advocates’ Association shall inform the State Bar Council](http://indiankanoon.org/doc/509088/) of— [(a) any change in the membership including admissions and re-admissions within thirty days of](http://indiankanoon.org/doc/1180845/) such change; [(b) the death or other cessation of practice or voluntary suspension of practice of any of its](http://indiankanoon.org/doc/149076/) members within thirty days from the date of occurrence thereof; [(c) such other matters as may be required by the State Bar Council from time to time.](http://indiankanoon.org/doc/274337/) CHAPTER V MEMBERSHIP AND PAYMENT OUT OF ADVOCATES’ WELFARE FUND **[18. Membership in Fund.—(1) Every advocate practising, before the commencement of this Act, in](http://indiankanoon.org/doc/170692/)** any court, tribunal or other authority in a State and being a member of a State Bar Association or a State Advocates’ Association in that State, shall apply, within six months of the commencement of this Act, to the Trustee Committee for admission as a member of the Fund, in such form as may be prescribed. [(2) Every person,—](http://indiankanoon.org/doc/306070/) [(a) admitted as an advocate on the roll of a State Bar Council, after the commencement of this](http://indiankanoon.org/doc/1907878/) Act; [(b) practising in any court, tribunal or other authority in a State and being a member of a State](http://indiankanoon.org/doc/722091/) Bar Association or a State Advocates’ Association in that State, shall apply, within six months of his enrolment as an advocate, to the Trustee Committee, for admission as a member of the Fund in such form as may be prescribed. ----- [(3) On receipt of an application under sub-section (1) or sub-section (2), the Trustee Committee shall](http://indiankanoon.org/doc/423641/) make such enquiry as it deems fit and either admit the applicant to the Fund or, for reasons to be recorded in writing, reject the application: Provided that no order rejecting an application shall be passed unless the applicant has been given an opportunity of being heard. [(4) Every applicant shall pay an application fee of two hundred rupees along with the application to](http://indiankanoon.org/doc/1886262/) the account of the Trustee Committee. [(5) Every advocate, being a member of the Fund, shall pay an annual subscription of fifty rupees to](http://indiankanoon.org/doc/1361235/) the Fund on or before the 31st day of March of every year: Provided that every advocate, who makes an application under sub-section (1) or sub-section (2), shall pay his first annual subscription within three months of his becoming a member of the Fund: Provided further that a senior advocate shall pay an annual subscription of one thousand rupees. [(6) Any member of the Fund, who fails to pay the annual subscription for any year before the](http://indiankanoon.org/doc/1508129/) 31st day of March of that year, shall be liable to be removed from the membership in the Fund. [(7) A member of the Fund removed from the membership in the Fund under sub-section (6) may be](http://indiankanoon.org/doc/1211871/) re-admitted to the Fund, on payment of arrears along with re-admission fee of ten rupees, within six months from the date of such removal. [(8) Every member of the Fund shall, at the time of admission to the membership in the Fund, make](http://indiankanoon.org/doc/1601000/) nomination conferring on one or more of his dependants the right to receive, in the event of his death, any amount payable to the member under this Act. [(9) If a member of the Fund nominates more than one person under sub-section (8), he shall specify in](http://indiankanoon.org/doc/121423/) the nomination, the amount or share payable to each of the nominees. [(10) A member of the Fund may, at any time, cancel a nomination by sending a notice in writing to](http://indiankanoon.org/doc/235310/) the Trustee Committee. [(11) Every member of the Fund, who cancels his nomination under sub-section (10), shall make a](http://indiankanoon.org/doc/636250/) fresh nomination along with registration fee of five rupees. [(12) Every member of the Fund, whose name has been removed from the State roll under section 26A](http://indiankanoon.org/doc/1880923/) of the Advocates Act, 1961 (25 of 1961), or who voluntarily suspends practice, shall, within fifteen days of such removal or suspension, intimate such removal or suspension to the Trustee Committee and if any member of the Fund fails to do so without sufficient reason, the Trustee Committee may reduce, in accordance with such principles as may be prescribed, the amount payable to that member under this Act. **[19. Ex gratia grant to a member of Fund.—The Trustee Committee on an application made to it by](http://indiankanoon.org/doc/1315556/)** a member of the Fund, and after being satisfied about the genuineness of the claim, may allow ex gratia grant to such member from the Fund— [(a) in the case of his hospitalisation or involving major surgical operation; or](http://indiankanoon.org/doc/1365713/) [(b) if he is suffering from tuberculosis, leprosy, paralysis, cancer, unsoundness of mind or from](http://indiankanoon.org/doc/649695/) such other serious disease or disability. **[20. Review.—The Trustee Committee may, on its own motion or on an application received from any](http://indiankanoon.org/doc/1601043/)** person interested, within ninety days of the passing of any order by it under the provisions of this Act, review such order, if it was passed under any mistake, whether of fact or of law or in ignorance of any material fact: Provided that the Trustee Committee shall not pass any order under this section adversely affecting any person unless such person has been given an opportunity of being heard. **[21. Payment of amount on cessation of practice.—(1) Every advocate who has been a member of](http://indiankanoon.org/doc/1735807/)** the Fund for a period of not less than five years shall, on his cessation of practice, be paid an amount at the rate specified in Schedule I: Provided that where the Trustee Committee is satisfied that a member of the Fund ceases to practice within a period of five years from the date of his admission as a member of such Fund as a result of any ----- permanent disability, the Trustee Committee may pay such member an amount at the rate specified in Schedule I. [(2) Where a member of the Fund dies before receiving the amount payable under sub-section (1), his](http://indiankanoon.org/doc/1116303/) nominee or legal heir, as the case may be, shall be paid the amount payable to the deceased member of the Fund. **[22. Restriction on alienation, attachment, etc., of interest of member in Fund.—(1) The interest](http://indiankanoon.org/doc/734553/)** of any member in the Fund, or the right of a member of the Fund or his nominee or legal heir to receive any amount from the Fund, shall not be assigned, alienated, or charged and shall not be liable to attachment under any decree or order of any court, tribunal or other authority. [(2) No creditor shall be entitled to proceed against the Fund or the interest therein of any member of](http://indiankanoon.org/doc/340365/) the Fund or his nominee or legal heir. _Explanation.—For the purposes of this section, “creditor” includes the State or an official assignee or_ official receiver appointed under the law relating to insolvency for the time being in force. **[23. Exemption from income-tax.—Notwithstanding anything contained in the Income-tax Act, 1961](http://indiankanoon.org/doc/219519/)** (43 of 1961) or any other enactment for the time being in force relating to tax on income, profits or gains, [the income accrued to the Fund constituted under sub-section (1) of section 3 shall be exempt from](http://indiankanoon.org/doc/411695/) income-tax. **[24. Group Life Insurance for members of Fund and other benefits.—The Trustee Committee](http://indiankanoon.org/doc/252553/)** may, for the welfare of the members of the Fund,— [(a) obtain, from the Life Insurance Corporation of India or any other insurer, policies of Group](http://indiankanoon.org/doc/764267/) Insurance on the life of the members of the Fund; or [(b) provide, in such manner as may be prescribed, for medical and educational facilities for the](http://indiankanoon.org/doc/366086/) members of the Fund and their dependants; or [(c) provide monies to the members of the Fund for purchase of books; or](http://indiankanoon.org/doc/1802514/) [(d) provide monies to construct or maintain common facilities for the members of the Fund:](http://indiankanoon.org/doc/1312960/) Provided that the Trustee Committee shall spend ten per cent. of the total annual subscription received under sub-section (5) of section 18 on the construction or maintenance of common facilities for the members of the Fund practising in the subordinate courts; or [(e) provide funds for any other purpose which the Trustee Committee may specify; or](http://indiankanoon.org/doc/1948895/) [(f) provide for such other benefits as may be prescribed.](http://indiankanoon.org/doc/719846/) **[25. Appeal against decision or order of Trustee Committee.—(1) An appeal against any decision](http://indiankanoon.org/doc/756041/)** or order of the Trustee Committee shall lie to the State Bar Council. [(2) The appeal shall be in the prescribed form and shall be accompanied by—](http://indiankanoon.org/doc/1311285/) [(a) a copy of the decision or order appealed against;](http://indiankanoon.org/doc/1567622/) [(b) a receipt evidencing payment of twenty-five rupees to the credit of the State Bar Council in](http://indiankanoon.org/doc/236040/) any of the branches of a scheduled bank. [(3) The appeal shall be filed within thirty days from the date of receipt of the decision or order](http://indiankanoon.org/doc/1521229/) appealed against. [(4) The decision of the State Bar Council on such appeal shall be final.](http://indiankanoon.org/doc/1909060/) CHAPTER VI PRINTING, DISTRIBUTION AND CANCELLATION OF STAMPS **[26. Printing and distribution of Advocates’ Welfare Fund Stamps by State Bar Council.—](http://indiankanoon.org/doc/393843/)** [(1) The appropriate Government shall, on a request made by the State Bar Council in this behalf, cause to](http://indiankanoon.org/doc/1165942/) be printed and distributed Advocates’ Welfare Fund Stamps of the value of five rupees or such other value, which may be prescribed, inscribing therein “Advocates’ Welfare Fund Stamp”, in such design as may be prescribed. ----- [(2) Every stamp referred to in sub-section (1) shall be of the size 2.54 c.m. by 5.08 c.m. and sold to](http://indiankanoon.org/doc/594221/) the advocates. [(3) The custody of the stamps shall be with the State Bar Council.](http://indiankanoon.org/doc/1743602/) [(4) The State Bar Council shall control the distribution and sale of the stamps through the State Bar](http://indiankanoon.org/doc/1573463/) Associations and the State Advocates’ Associations. [(5) The State Bar Council, the State Bar Associations and the State Advocates’ Associations shall](http://indiankanoon.org/doc/615489/) keep proper accounts of the stamps in such form and manner as may be prescribed. [(6) The State Bar Associations and State Advocates’ Associations shall purchase the stamps from the](http://indiankanoon.org/doc/1970535/) State Bar Council after paying the value thereof as reduced by ten per cent. of such value towards incidental expenses. **[27. Vakalatnama to bear stamps.—(1) Every advocate shall affix stamp of a value of—](http://indiankanoon.org/doc/1297323/)** [(a) five rupees on every Vakalatnama filed by him in a District Court or a court subordinate to the](http://indiankanoon.org/doc/807632/) District Court; [(b) ten rupees on every Vakalatnama filed by him in a tribunal or other authority or a High Court](http://indiankanoon.org/doc/138684/) or the Supreme Court: Provided that the appropriate Government may prescribe the value of the stamps not exceeding twenty-five rupees to be affixed under this sub-section: Provided further that the appropriate Government may prescribe different value of the stamps to be affixed on every Vakalatnama to be filed in a District Court, or a court subordinate to the District Court or a tribunal or other authority or a High Court or the Supreme Court. [(2) The value of the stamp shall neither be the cost in a case nor be collected in any event from the](http://indiankanoon.org/doc/1366023/) client. [(3) Any contravention of the provisions of sub-section (1) or sub-section (2) by any advocate shall](http://indiankanoon.org/doc/814569/) disentitle him either in whole or in part to the benefits of the Fund and the Trustee Committee shall report such contravention to the State Bar Council for appropriate action. [(4) Every stamp affixed on every Vakalatnama filed before a District Court or a court subordinate to](http://indiankanoon.org/doc/1838712/) the District Court or a tribunal or other authority or a High Court or the Supreme Court shall be cancelled in such manner as may be prescribed. CHAPTER VII MISCELLANEOUS **[28. Certain persons not to be eligible for benefits.—No senior advocate, or a person in receipt of](http://indiankanoon.org/doc/460271/)** pension from the Central Government or a State Government, shall be entitled to _ex gratia grant under_ section 19 or payment of amount on his cessation of practice under section 21 or any benefit under [clause (a) or clause (b) or clause (c) of section 24.](http://indiankanoon.org/doc/13528763/) **[29. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall](http://indiankanoon.org/doc/686241/)** lie against the appropriate Government or the Trustee Committee or the Chairperson or a Member or the Secretary of the Trustee Committee or the State Bar Council or any person for anything which is in good faith done or intended to be done under this Act or the rules made thereunder. **[30. Bar of jurisdiction of civil courts.—No civil court shall have jurisdiction to settle, decide or deal](http://indiankanoon.org/doc/1855537/)** with any question or to determine any matter which is by or under this Act required to be settled, decided or dealt with or to be determined by the Trustee Committee or the State Bar Council. **[31. Power to summon witnesses and take evidence.—The Trustee Committee and the State Bar](http://indiankanoon.org/doc/1657638/)** Council shall, for the purpose of any enquiry under this Act, have the same powers as are vested in a civil court while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:— [(a) enforcing the attendance of any person or examining him on oath;](http://indiankanoon.org/doc/1391975/) [(b) requiring the discovery and production of documents;](http://indiankanoon.org/doc/1709937/) [(c) receiving evidence on affidavit;](http://indiankanoon.org/doc/1232188/) ----- [(e) any other matter which may be prescribed.](http://indiankanoon.org/doc/1447048/) **[32. Power to amend Schedules I and II.—(1) The appropriate Government may, on the](http://indiankanoon.org/doc/1257602/)** recommendation of the Trustee Committee, by notification, and having due regard to the availability of the amount in the Fund, amend the rates specified in Schedule I. [(2) The Central Government may, as and when considered necessary, by notification, amend](http://indiankanoon.org/doc/1522699/) Schedule II. **[33. Power of appropriate Government to issue directions.—(1) Without prejudice to the generality](http://indiankanoon.org/doc/1289634/)** of the foregoing provisions of this Act, the Trustee Committee shall, in exercise of the powers or the performance of its functions under this Act, be bound by such directions on questions of policy, other than those relating to professional and administrative matters, as the appropriate Government may give in writing to it from time to time: Provided that the Trustee Committee shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. [(2) The decision of the appropriate Government, whether a question is one of policy or not, shall be](http://indiankanoon.org/doc/727078/) final. **[34. Power of appropriate Government to supersede Trustee Committee.—(1) If at any time the](http://indiankanoon.org/doc/1715270/)** appropriate Government is of the opinion— [(a) that, on account of circumstances beyond the control of the Trustee Committee, it is unable to](http://indiankanoon.org/doc/1002006/) discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or [(b) that the Trustee Committee has persistently defaulted in complying with any direction given](http://indiankanoon.org/doc/1384078/) by the appropriate Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of this Act; or [(c) that circumstances exist which render it necessary in the public interest so to do,](http://indiankanoon.org/doc/1727411/) the appropriate Government may, by notification and for reasons to be specified therein, supersede the Trustee Committee for such period, not exceeding six months, as may be specified in the notification and appoint, in consultation with the Chief Justice of the High Court having jurisdiction, a Judge of the High Court to be the Controller of the Trustee Committee: Provided that before issuing any such notification, the appropriate Government shall give a reasonable opportunity to the Trustee Committee to make representations against the proposed supersession and shall consider the representations, if any, of the Trustee Committee. [(2) Upon the publication of a notification under sub-section (1) superseding the Trustee](http://indiankanoon.org/doc/1695203/) Committee,— [(a) the Chairperson, Members and the Secretary of the Trustee Committee shall, as from the date](http://indiankanoon.org/doc/1743052/) of supersession, vacate their offices as such; [(b) all powers, functions and duties which may, by or under the provisions of this Act, be](http://indiankanoon.org/doc/1428262/) exercised or discharged by or on behalf of the Trustee Committee shall, until the Trustee Committee is reconstituted under sub-section (3), be exercised and discharged by the Controller of the Trustee Committee; and [(c) all properties and Fund owned or controlled by the Trustee Committee shall, until the Trustee](http://indiankanoon.org/doc/547813/) Committee is reconstituted under sub-section (3), vest in the appropriate Government. [(3) On or before the expiration of the period of supersession specified in the notification issued under](http://indiankanoon.org/doc/522230/) sub-section (1), the appropriate Government shall reconstitute the Trustee Committee by a fresh appointment of its Chairperson, Members and Secretary of such Committee and in such case a person who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for reappointment. [(4) The appropriate Government shall cause a copy of the notification issued under sub-section (1)](http://indiankanoon.org/doc/1690610/) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament or before each House of the State Legislature, where it consists of two Houses or where such Legislature consists of one House, before that House, as the case may be, at the ----- **[35. Power of Central Government to make rules.—(1) The Central Government, being the](http://indiankanoon.org/doc/691428/)** appropriate Government, may, by notification, make rules for carrying out the provisions of this Act. [(2) In particular, and without prejudice to the generality of the foregoing power, such rules may](http://indiankanoon.org/doc/1759030/) provide for all or any of the following matters, namely:— [(a) the periodical and annual reports to be sent under clause (f) of section 11;](http://indiankanoon.org/doc/33416/) [(b) the form and the manner in which the annual statement of accounts and annual report shall be](http://indiankanoon.org/doc/79508/) prepared under sub-section (1) of section 13; [(c) the forms, registers and other records to be maintained under clause (g) of section 14;](http://indiankanoon.org/doc/1898555/) [(d) the form in which an association of advocates may apply for recognition to the State Bar](http://indiankanoon.org/doc/989604/) Council under sub-section (1) or sub-section (2) of section 16; [(e) the form in which a certificate of recognition shall be issued by the State Bar Council under](http://indiankanoon.org/doc/1164437/) sub-section (4) of section 16; [(f) the form in which an advocate shall apply for admission as a member of the Fund under](http://indiankanoon.org/doc/86565/) sub-section (1) or sub-section (2) of section 18; [(g) the principles in accordance with which the amount payable to a member of the Fund be](http://indiankanoon.org/doc/1889503/) reduced under sub-section (12) of section 18; [(h) the manner of providing medical and educational facilities for the members of the Fund and](http://indiankanoon.org/doc/1344779/) their dependants under clause (b) of section 24; [(i) the other benefits to be provided under clause (f) of section 24;](http://indiankanoon.org/doc/27812/) [(j) the form of appeal under sub-section (2) of section 25;](http://indiankanoon.org/doc/385621/) [(k) the value and design of stamps to be printed and distributed under sub-section (1) of](http://indiankanoon.org/doc/691409/) section 26; [(l) the form and the manner in which accounts of the stamps shall be kept under sub-section (5) of](http://indiankanoon.org/doc/1071032/) section 26; [(m) the value of stamps not exceeding twenty-five rupees as may be prescribed under the first](http://indiankanoon.org/doc/1079703/) proviso to sub-section (1) of section 27; [(n) the value of stamps to be affixed on every Vakalatnama under the second proviso to](http://indiankanoon.org/doc/566736/) sub-section (1) of section 27; [(o) the manner of cancellation of stamps under sub-section (4) of section 27;](http://indiankanoon.org/doc/122245/) [(p) any other matter which is to be, or may be, prescribed.](http://indiankanoon.org/doc/1938569/) **[36. Power of State Government to make rules.—(1) The State Government, being the appropriate](http://indiankanoon.org/doc/1645991/)** Government, may, by notification, make rules for carrying out the provisions of this Act and not inconsistent with the rules, if any, made by the Central Government. [(2) In particular and without prejudice to the generality of the foregoing power, such rules may](http://indiankanoon.org/doc/476985/) provide for all or any of the following matters, namely:— [(a) the periodical and annual reports to be sent under clause (f) of section 11;](http://indiankanoon.org/doc/1101665/) [(b) the form and the manner in which the annual statement of accounts and annual report shall be](http://indiankanoon.org/doc/592632/) prepared under sub-section (1) of section 13; [(c) the forms, registers and other records to be maintained under clause (g) of section 14;](http://indiankanoon.org/doc/1680635/) [(d) the form in which an association of advocates may apply for recognition to the State Bar](http://indiankanoon.org/doc/1673863/) Council under sub-section (1) or sub-section (2) of section 16; [(e) the form in which a certificate of recognition shall be issued by the State Bar Council under](http://indiankanoon.org/doc/217425/) sub-section (4) of section 16; [(f) the form in which an advocate shall apply for admission as a member of the Fund under](http://indiankanoon.org/doc/961267/) sub-section (1) or sub-section (2) of section 18; ----- [(g) the principles in accordance with which the amount payable to a member of the Fund be](http://indiankanoon.org/doc/472021/) reduced under sub-section (12) of section 18; [(h) the manner of providing medical and educational facilities for the members of the Fund and](http://indiankanoon.org/doc/1840969/) their dependants under clause (b) of section 24; [(i) the other benefits to be provided under clause (f) of section 24;](http://indiankanoon.org/doc/1731531/) [(j) the form of appeal under sub-section (2) of section 25;](http://indiankanoon.org/doc/1607807/) [(k) the value and design of stamps to be printed and distributed under sub-section (1) of](http://indiankanoon.org/doc/163151/) section 26; [(l) the form and the manner in which accounts of the stamps shall be kept under sub-section (5) of](http://indiankanoon.org/doc/408211/) section 26; [(m) the value of stamps not exceeding twenty-five rupees as may be prescribed under the first](http://indiankanoon.org/doc/430970/) proviso to sub-section (1) of section 27; [(n) the value of stamps to be affixed on every Vakalatnama under the second proviso to](http://indiankanoon.org/doc/1882987/) sub-section (1) of section 27; [(o) the manner of cancellation of stamps under sub-section (4) of section 27;](http://indiankanoon.org/doc/45867/) [(p) any other matter which is to be or may be prescribed.](http://indiankanoon.org/doc/667222/) **[37. Rules and notifications to be laid before Parliament or State Legislature.—(1) Every rule](http://indiankanoon.org/doc/1482702/)** made under this Act by the Central Government and every notification issued under section 32, shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification. [(2) Every rule made under this Act by a State Government and every notification issued under](http://indiankanoon.org/doc/1495842/) section 32 shall be laid, as soon as may be after it is made, before each House of State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **[38. Saving.—The provisions of this Act shall not apply to the States in which the enactments](http://indiankanoon.org/doc/69343/)** specified in Schedule II are applicable. ----- SCHEDULE I [See sections 21(1) and 32(1)] Number of years as member of the Fund Rate at which amount payable (1) (2) 30 … Rs. 30,000 29 … Rs. 29,000 28 … Rs. 28,000 27 … Rs. 27,000 26 … Rs. 26,000 25 … Rs. 25,000 24 … Rs. 24,000 23 … Rs. 23,000 22 … Rs. 22,000 21 … Rs. 21,000 20 … Rs. 20,000 19 … Rs. 19,000 18 … Rs. 18,000 17 … Rs. 17,000 16 … Rs. 16,000 15 … Rs. 15,000 14 … Rs. 14,000 13 … Rs. 13,000 12 … Rs. 12,000 11 … Rs. 11,000 10 … Rs. 10,000 9 … Rs. 9,000 8 … Rs. 8,000 7 … Rs. 7,000 6 … Rs. 6,000 5 … Rs. 5,000 4 … Rs. 4,000 3 … Rs. 3,000 2 … Rs. 2,000 1 … Rs. 1,000 ----- SCHEDULE II [See sections 32(2) and 38] 1. The Uttar Pradesh Advocates’ Welfare Fund Act, 1974 (6 of 1974). 2. The Bihar State Advocates’ Welfare Fund Act, 1983 (16 of 1983). 3. The Madhya Pradesh Adhivakata Kalyan Nidhi Adhiniyam, 1982 (9 of 1982). 4. The Andhra Pradesh Advocates’ Welfare Fund Act, 1987 (33 of 1987). 5. The Orissa Advocates’ Welfare Fund Act, 1987 (18 of 1987). 6. The Rajasthan Advocates’ Welfare Fund Act, 1987 (15 of 1987). 7. The Tamil Nadu Advocates’ Welfare Fund Act, 1987 (49 of 1987). 8. The Gujarat Advocates’ Welfare Fund Act, 1991 (14 of 1991). 9. The Goa Advocates’ Welfare Fund Act, 1995 (2 of 1997). 10. The Assam Advocates’ Welfare Fund Act, 1998 (XVIII of 1999). 11. The Maharashtra Advocates’ Welfare Fund Act, 1981 (LXI of 1981). 12. The Himachal Pradesh Advocates’ Welfare Fund Act, 1996 (14 of 1996). 13. The Kerala Advocates’ Welfare Fund Act, 1980 (21 of 1980). 14. The Karnataka Advocates’ Welfare Fund Act, 1983 (2 of 1985). 15. The West Bengal Advocates’ Welfare Fund Act, 1991 (XIII of 1991). 16. The Jammu and Kashmir Advocates’ Welfare Fund Act, 1997 (XXVI of 1997). __________ -----
29-Sep-2001
52
The Energy Conservation Act, 2001
https://www.indiacode.nic.in/bitstream/123456789/2003/1/A2001-52.pdf
central
# THE ENERGY CONSERVATION ACT, 2001 _____________ # ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II BUREAU OF ENERGY EFFICIENCY 3. Establishment and incorporation of Bureau of Energy Efficiency. 4. Management of Bureau. 5. Meetings of Governing Council. 6. Vacancies, etc., not to invalidate proceedings of Bureau, Governing Council or Committee. 7. Removal of member from office. 8. Constitution of Advisory Committees and other committees. 9. Director-General of Bureau. 10. Officers and employees of Bureau. 11. Authentication of orders and decisions of Bureau. CHAPTER III TRANSFER OF ASSETS, LIABILITIES, ETC., OF ENERGY MANAGEMENT CENTRE TO BUREAU 12. Transfer of assets, liabilities and employees of Energy Management Centre. CHAPTER IV POWERS AND FUNCTIONS OF BUREAU 13. Powers and functions of Bureau. 13A. Prohibition of use of deceptive name, etc. CHAPTER V POWER OF CENTRAL GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS CONSERVATION 14. Power of Central Government to enforce efficient use of energy and its conservation. 14A. Issuance of energy savings certificate. 14AA. Issuance of carbon credit certificate. 14B. Power of Central Government to specify value of energy. CHAPTER VI POWER OF STATE GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS CONSERVATION 15. Power of State Government to enforce certain provisions for efficient use of energy and its conservation. 15A B d f d i d ----- SECTIONS 16. Establishment of Fund by State Government. 17. Power of inspection. 18. Power of Central Government or State Government to issue directions. CHAPTER VII FINANCE, ACCOUNTS AND AUDIT OF BUREAU 19. Grants and loans by Central Government. 20. Establishment of Fund by Central Government. 21. Borrowing powers of Bureau. 22. Budget. 23. Annual report. 24. Annual report to be laid before Parliament. 25. Accounts and audit. CHAPTER VIII PENALTIES AND ADJUDICATION 26. Penalty. 27. Power to adjudicate. 27A. Power of State Commission to make regulations. 28. Factors to be taken into account by adjudicating officer. 29. Civil court not to have jurisdiction. CHAPTER IX APPELLATE TRIBUNAL FOR ENERGY CONSERVATION 30. Appellate Tribunal. 31. Appeal to Appellate Tribunal. # 31A. Procedure and powers of Appellate Tribunal. 32. to 43. [Omitted.] 44. Right of appellant to take assistance of legal practitioner or accredited auditor and of Government to appoint presenting officers. 45. Appeal to Supreme Court. CHAPTER X MISCELLANEOUS 46. Power of Central Government to issue directions to Bureau. 47. Power of Central Government to supersede Bureau. 48. Default by companies. 49. Exemption from tax on income. 50. Protection of action taken in good faith. 51. Delegation. 52. Power to obtain information. 53. Power to exempt. 54. Chairperson, Members, officers and employees of the Appellate Tribunal, Members of State Commission, Director-General, Secretary, members, officers and employees of the Bureau to be public servants. 55. Power of Central Government to issue directions. 56. Power of Central Government to make rules. 57. Power of State Government to make rules. 58. Power of Bureau to make regulations. 59. Rules and regulations to be laid before Parliament and State Legislature. 60. Application of other laws not barred. 61. Provisions of Act not to apply in certain cases. 62. Power to remove difficulty. ----- # THE ENERGY CONSERVATION ACT, 2001 ACT NO. 52 OF 2001 [29th September, 2001.] # An Act to provide for efficient use of energy and its conservation and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-second Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Energy Conservation** Act, 2001. (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “accredited energy auditor” means [3][an energy auditor accredited in accordance with the provisions of] clause (p) of sub-section (2) of section 13; (b) “Appellate Tribunal” means the Appellate Tribunal for Energy Conservation [4][referred to in section 30]; 5[ 6[(c) “building” means any structure or erection or part of structure or erection–– (i) constructed after the rules relating to energy conservation and sustainable building codes have been notified by the Central Government under clause (p) of section 14 and by the State Government under clause (a) of section 15; (ii) which has a minimum connected load of 100 Kilowatt (kW) or contract demand of 120 Kilovolt Ampere (kVA); and (iii) which is used or intended to be used for commercial purpose or as an office building or for residential purpose: Provided that the State Government may specify a lower connected load or contract demand than the load or demand specified above;]] (d) “Bureau” means the Bureau of Energy Efficiency established under sub-section (1) of section 3; 7[(da) “carbon credit certificate” means the certificate issued by the Central Government or any agency authorised by it under section 14AA; (db) “carbon credit trading scheme” means the scheme for reduction of carbon emissions notified by the Central Government under clause (w) of section 14;] (e) “Chairperson” means the Chairperson of the Governing Council; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10- 2019). 2. 28th June, 2012 (sections 31, 33, 44, 45), vide notification No. S. O. 1433(E), dated 28th June, 2012, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 1st March, 2002 (sections 1 to 29 and 46 to 62), vide notification No. S.O. 268 (E), dated 1st March, 2002, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3. Subs. by Act 28 of 2010, s. 2, for “an auditor possessing qualifications specified under” (w.e.f. 24-8-2010). 4. Subs. by s. 2, ibid., for “established under section 30” (w.e.f. 24-8-2010). 5. Subs. by s. 2, ibid., for clause (c) (w.e.f. 24-8-2010). ----- (f) “designated agency” means any agency designated under clause (d) of section 15; (g) “designated consumer” means any consumer specified under clause (e) of section 14; 1[(h) “energy” means any form of energy derived from fossil fuels or non-fossil sources or renewable sources;] (i) “energy audit” means the verification, monitoring and analysis of use of energy including submission of technical report containing recommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption; 2[(ia) “energy auditor” means any individual possessing the qualifications prescribed under clause (m) of section 14;] 3[(j) “energy conservation and sustainable building code” means the code which provides norms and standards for energy efficiency and its conservation, use of renewable energy and other green building requirements for a building;] (k) “energy consumption standards” means the norms for process and energy consumption standards specified under clause (a) of section 14; (l) “Energy Management Centre” means the Energy Management Centre set up under the Resolution of the Government of India in the erstwhile Ministry of Energy, Department of Power No. 7(2)/87- EP(Vol. IV), dated the 5th July, 1989 and registered under the Societies Registration Act, 1860 (21 of 1860); (m) “energy manager” means any individual possessing the qualifications prescribed under clause (m) of section 14; 4[(ma) “energy savings certificate” means any energy savings certificate issued to the designated consumers under sub-section (1) of section 14A; (maa) “equipment or appliance” means any equipment or appliance which consumes, generates, transmits or supplies energy and includes any device that consumes any form of energy and produces a desired work;] (n) “Governing Council” means the Governing Council referred to in section 4; (o) “member” means the member of the Governing Council and includes the Chairperson; (p) “notification” means a notification in the Gazette of India or, as the case may be, the Official Gazette of a State; (q) “prescribed” means prescribed by rules made under this Act; 5[(qa) “registered entity” means any entity, including designated consumers, registered for carbon credit trading scheme specified under clause (w) of section 14;] (r) “regulations” means regulations made by the Bureau under this Act; (s) “Schedule” means the Schedule to this Act; (t) “State Commission” means the State Electricity Regulatory Commission established under sub-section (1) of section 17 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998); 6[(ta) “vehicle” shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988); (tb) “vessel” includes every description of water craft used or capable of being used in inland waters or in coastal waters, including any ship, boat, sailing vessel, tug, barge or other description of vessel including non-displacement craft, amphibious craft, wing-in-ground craft, ferry, roll-on-roll-off 1. Subs. by Act 19 of 2022, s. 2, for clause (h) (w.e.f. 1-1-2023). 2. Ins. by s. 2, ibid. (w.e.f. 1-1-2023). 3. Subs. by s. 2, ibid., for clause (j) (w.e.f. 1-1-2023). 4. Ins. by Act 28 of 2010, s. 2 (w.e.f. 24-8-2010). ----- vessel, container vessel, tanker vessel, gas carrier or floating unit or dumb vessel used for transportation, storage or accommodation within or through inland waters and coastal waters;] (u) words and expressions used and not defined in this Act but defined in the Indian Electricity Act, 1910 (9 of 1910) or the Electricity (Supply) Act, 1948 (54 of 1948) or the Electricity Regulatory Commissions Act, 1998 (14 of 1998) shall have the meanings respectively assigned to them in those Acts. CHAPTER II BUREAU OF ENERGY EFFICIENCY **3. Establishment and incorporation of Bureau of Energy Efficiency.—(1) With effect from such** date[1] as the Central Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Bureau to be called the Bureau of Energy Efficiency. (2) The Bureau shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with power subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. (3) The head office of the Bureau shall be at Delhi. (4) The Bureau may establish offices at other places in India. **4. Management of Bureau.—(1) The general superintendence, direction and management of the** affairs of the Bureau shall vest in the Governing Council which shall consist of not less than [2][thirty-one, but not exceeding thirty-seven], members to be appointed by the Central Government. (2) The Governing Council shall consist of the following members, namely:— (a) the Minister in charge of the Ministry or Department of the Central Government dealing with the Power (b) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Power (c) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Petroleum and Natural Gas (d) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Coal (e) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Non-conventional Energy Sources (f) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Atomic Energy (g) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Consumer Affairs 3[(ga) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Environment, Forest and Climate Change _ex officio Chairperson;_ _ex officio member;_ _ex officio member;_ _ex officio member;_ _ex officio member;_ _ex officio member;_ _ex officio member;_ _ex officio member;_ 1. 1st March, 2002 vide notification No. S.O. 269(E), dated 1st March, 2002 see Gazette of India, Extraordinary, Part II, sec. 3(ii) ----- (gb) the Secretary to the Government of India, in charge of _ex officio member;_ the Ministry or Department of the Central Government dealing with the Housing and Urban Affairs (gc) the Secretary to the Government of India, in charge of _ex officio member;_ the Ministry or Department of the Central Government dealing with the Road Transport and Highways (gd) the Secretary to the Government of India, in charge of _ex officio member;_ the Ministry or Department of the Central Government dealing with the Steel (ge) the Secretary to the Government of India, in charge of _ex officio member;_ the Ministry or Department of the Central Government dealing with the Civil Aviation (gf) the Secretary to the Government of India, in charge of _ex officio member;_ the Ministry or Department of the Central Government dealing with the Ports, Shipping and Waterways (gg) Member of the Railway Board (in charge of Energy), _ex officio member;]_ Ministry of Railways (h) Chairman of the Central Electricity Authority established _ex officio member;_ under the Electricity (Supply) Act, 1948 (54 of 1948) (i) Director-General of the Central Power Research Institute _ex officio member;_ registered under the Karnataka Societies Act, 1960 (Karnataka Act 17 of 1960) (j) Executive Director of the Petroleum Conservation _ex officio member;_ Research Association, a society registered under the Societies Registration Act, 1860 (XXI of 1860) (k) Chairman-cum-Managing Director of the Central Mine _ex officio member;_ Planning and Design Institute Limited, a company incorporated under the Companies Act, 1956 (1 of 1956) (l) Director-General of the Bureau of Indian Standards established under the Bureau of Indian Standards Act, 1986 (63 of 1986) (m) Director-General of the National Test House, Department of Supply, Ministry of Commerce and Industry, Kolkata 1[(ma) Director-General of the National Productivity Council, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry (n) Managing Director of the Indian Renewable Energy Development Agency Limited, a company incorporated under the Companies Act, 1956 (1 of 1956) 2[(o) one official each from the energy or power department of the five States from the five power regions, not below the rank of Principal Secretary to the State Government, to be appointed by the Central Government _ex officio member;_ _ex officio member;_ _ex officio member;]_ _ex officio member;_ member;] ----- 1[(p) such number of persons, not exceeding seven, as may be prescribed, to be appointed by the Central Government as members, from amongst persons who, in the opinion of the Central Government, are experts or capable of representing industry, equipment and appliance manufacturers, architects, institutes and consumers (q) such number of persons, not exceeding two as may be nominated by the Governing Council as members member;] member; (r) Director-General of Bureau _ex officio member-_ secretary. (3) The Governing Council may exercise all powers and do all acts and things which may be exercised or done by the Bureau. (4) Every member referred to in clauses (o), (p) and (q) of sub-section (2) shall hold office for a term of three years from the date on which he enters upon his office. (5) The fee and allowances to be paid to the members referred to in clauses (o), (p) and (q) of sub-section (2) and the manner of filling up of vacancies and the procedure to be followed in the discharge of their functions shall be such as may be prescribed. **5. Meetings of Governing Council.—(1) The Governing Council shall meet at such times and** places, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be provided by regulations. (2) The Chairperson or, if for any reason, he is unable to attend a meeting of the Governing Council, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting. (3) All questions which come up before any meeting of the Governing Council shall be decided by a majority vote of the members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding, shall have a second or casting vote. **6. Vacancies, etc., not to invalidate proceedings of Bureau, Governing Council or Committee.—** No act or proceeding of the Bureau or the Governing Council or any Committee shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Bureau or the Governing Council or the Committee; or (b) any defect in the appointment of a person acting as a Director-General or Secretary of the Bureau or a member of the Governing Council or the Committee; or (c) any irregularity in the procedure of the Bureau or the Governing Council or the Committee not affecting the merits of the case. **7. Removal of member from office.—The Central Government shall remove a member referred to** in clauses (o), (p) and (q) of sub-section (2) of section 4 from office if he— (a) is, or at any time has been, adjudicated as insolvent; (b) is of unsound mind and stands so declared by a competent court; (c) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude; (d) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest: Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter. ----- **8. Constitution of Advisory Committees and other committees.—(1) Subject to any regulations** made in this behalf, the Bureau shall, within six months from the date of commencement of this Act, constitute Advisory Committees for the efficient discharge of its functions. (2) Each Advisory Committee shall consist of a Chairperson and such other members as may be determined by regulations. (3) Without prejudice to the powers contained in sub-section (1), the Bureau may constitute, such number of technical committees of experts for the formulation of energy consumption standards or norms in respect of equipment or processes, as it considers necessary. **9. Director-General of Bureau.—(1) The Central Government shall, by notification, appoint a** Director-General from amongst persons of ability and standing, having adequate knowledge and experience in dealing with the matters relating to energy production, supply and energy management, standardisation and efficient use of energy and its conservation. (2) The Central Government shall, by notification, appoint any person not below the rank of Deputy Secretary to the Government of India as Secretary of the Bureau. (3) The Director-General shall hold office for a term of [1][five years] from the date on which he enters upon his office or until he attains the age of sixty years, whichever is earlier. (4) The salary and allowances payable to the Director-General and other terms and conditions of his service and other terms and conditions of service of the Secretary of the Bureau shall be such as may be prescribed. (5) Subject to general superintendence, direction and management of the affairs by the Governing Council, the Director-General of the Bureau shall be the Chief Executive Authority of the Bureau. (6) The Director-General of the Bureau shall exercise and discharge such powers and duties of the Bureau as may be determined by regulations. **10. Officers and employees of Bureau.—(1)** [2][The Bureau] may appoint such other officers and employees in the Bureau as it considers necessary for the efficient discharge of its functions under this Act. (2) The terms and conditions of service of officers and other employees of the Bureau appointed under sub-section (1) shall be such as may be prescribed. **11. Authentication of orders and decisions of Bureau.—All orders and decisions of the Bureau** shall be authenticated by the signature of the Director-General or any other officer of the Bureau authorised by the Director-General in this behalf. CHAPTER III TRANSFER OF ASSETS, LIABILITIES, ETC., OF ENERGY MANAGEMENT CENTRE TO BUREAU **12.** **Transfer of assets, liabilities and employees of Energy Management Centre.—(1) On and** from the date of establishment of the Bureau— (a) any reference to the Energy Management Centre in any law other than this Act or in any contract or other instrument shall be deemed as a reference to the Bureau; (b) all properties and assets, movable and immovable of, or belonging to, the Energy Management Centre shall vest in the Bureau; (c) all the rights and liabilities of the Energy Management Centre shall be transferred to, and be the rights and liabilities of, the Bureau; (d) without prejudice to the provisions of clause (c), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Energy Management Centre immediately before that date, for or in connection with the purposes of the said Centre shall be deemed to have been incurred, entered into, or engaged to be done by, with or for, the Bureau; ----- (e) all sums of money due to the Energy Management Centre immediately before that date shall be deemed to be due to the Bureau; (f) all suits and other legal proceedings instituted or which could have been instituted by or against the Energy Management Centre immediately before that date may be continued or may be instituted by or against the Bureau; and (g) every employee holding any office under the Energy Management Centre immediately before that date shall hold his office in the Bureau by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, retirement or other terminal benefits as he would have held such office if the Bureau had not been established and shall continue to do so as an employee of the Bureau or until the expiry of six months from that date if such employee opts not to be the employee of the Bureau within such period. (2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, the absorption of any employee by the Bureau in its regular service under this section shall not entitle such employee to any compensation under that Act or other law and no such claim shall be entertained by any court, tribunal or other authority. CHAPTER IV POWERS AND FUNCTIONS OF BUREAU **13. Powers and functions of Bureau.—(1) The Bureau shall, effectively co-ordinate with designated** consumers, designated agencies and other agencies, recognise and utilise the existing resources and infrastructure, in performing the functions assigned to it by or under this Act. (2) The Bureau may perform such functions and exercise such powers as may be assigned to it by or under this Act and in particular, such functions and powers include the function and power to— (a) recommend to the Central Government the norms for processes and energy consumption standards required to be notified under clause (a) of section 14 [1][and other standards required to be prescribed under other provisions of this Act]; 2[(aa) recommend to the Central Government for issuing of the energy savings certificate under section 14A;] (b) recommend to the Central Government the particulars required to be displayed on label on equipment or on appliances and manner of their display under clause (d) of section 14; (c) recommend to the Central Government for notifying any user or class of users of energy as a designated consumer under clause (e) of section 14; (d) take suitable steps to prescribe guidelines for [3][energy conservation and sustainable building codes] under clause (p) of section 14; (e) take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation; (f) arrange and organise training of personnel and specialists in the techniques for efficient use of energy and its conservation; (g) strengthen consultancy services in the field of energy conservation; (h) promote [4][or undertake] research and development in the field of energy conservation; (i) develop testing and certification procedure and promote testing facilities for certification and testing for energy consumption of equipment and appliances; (j) formulate and facilitate implementation of pilot projects and demonstration projects for promotion of efficient use of energy and its conservation; (k) promote use of energy efficient processes, equipment, devices and systems; (l) promote innovative financing of energy efficiency projects; 1. Ins. by Act 19 of 2022, s. 4, (w.e.f. 1-1-2023). 2. Ins. by Act 28 of 2010, s. 5 (w.e.f. 24-8-2010). ----- (m) give financial assistance to institutions for promoting efficient use of energy and its conservation; (n) levy fee, as may be determined by regulations, for services provided for promoting efficient use of energy and its conservation; (o) maintain a list of accredited energy auditors as may be specified by regulations; 1[(p) specify, by regulations, the qualifications, criteria and conditions subject to which a person may be accredited as an energy auditor and the procedure for such accreditation;] (q) specify, by regulations, the manner and intervals of time in which the energy audit shall be conducted; (r) specify, by regulations, certification procedures for [2][energy auditors and energy managers] to be designated or appointed by designated consumers; (s) prepare educational curriculum on efficient use of energy and its conservation for educational institutions, boards, universities or autonomous bodies and coordinate with them for inclusion of such curriculum in their syllabus; 3[(sa) conduct examination for capacity building and strengthening of services in the field of energy conservation including certification of energy managers and energy auditors;] (t) implement international co-operation programmes relating to efficient use of energy and its conservation as may be assigned to it by the Central Government; 4[(ta) collaborate with any international institution or organisation or to obtain membership of bodies having similar objectives as that of the Bureau, in consultation with the Central Government; (tb) authorise any agency in the country or outside the country to carry out any of the functions of the Bureau, for such purposes, and subject to such terms and conditions, as may be specified by regulations; (tc) undertake, or authorise any other body which meets with such technical qualifications, as may be specified by regulations, to test samples for purposes other than those specified in section 14; (td) empanel technical experts to promote energy efficiency and carbon credit trading activities undertaken to meet the objectives of the Act; (te) recommend to the Central Government on the requirements to be specified in the carbon credit trading scheme to be notified under clause (w) of section 14; (tf) recommend minimum share of consumption of non-fossil sources by designated consumers as energy or feedstock;] (u) perform such other functions as may be prescribed. 5[13A. Prohibition of use of deceptive name, etc.—(1) No person shall, without previous permission of the Bureau, use any name which so nearly resembles the name of the Bureau as to deceive or likely to deceive the public. (2) Notwithstanding anything contained in any other law for the time being in force, no registering authority shall register any company, firm or other body of persons which bears any name or mark resembling the name of the Bureau.] CHAPTER V POWER OF CENTRAL GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS CONSERVATION **14. Power of Central Government to enforce efficient use of energy and its conservation.—The** Central Government may, by notification, in consultation with the Bureau,— 1. Subs. by Act 28 of 2010, s. 5, for clause (p) (w.e.f. 24-8-2010). 2. Subs. by s. 5, ibid., for “energy managers” (w.e.f. 24-8-2010). 3. Ins. by s. 5, ibid. (w.e.f. 24-8-2010). ----- (a) specify the norms for processes and energy consumption standards for any equipment, 1[appliance, vehicle, vessel, industrial unit, building or establishment] which consumes, generates, transmits or supplies energy; (b) specify equipment or appliance [2][or vehicle, vessel, industrial unit, building or establishment] or class of equipments or appliances, as the case may be, for the purposes of this Act; 3[(c) prohibit manufacture or import of any equipment or appliance or vehicle or vessel specified under clause (b), unless it conforms to energy consumption standards specified under clause (a): Provided that an industrial unit specified under clause (b) shall close its operations unless it conforms to the norms for processes or energy consumption standards specified under clause (a): Provided further that from the date of notification of norms for processes and energy consumption standards under clause (a), no notification prohibiting such manufacture or import shall be issued–– (i) within a period of six months in the case of equipment or appliance or vehicle or vessel; and (ii) within a period of two years for closure of industrial unit: Provided also that the Central Government may, having regard to the market share and the technological development having impact on equipment or appliance or vehicle or vessel, and for reasons to be recorded in writing, extend the said period of six months referred to above, by a further period not exceeding six month;] (d) direct display of such particulars on label on equipment or on appliance specified under clause (b) and in such manner as may be specified by regulations; (e) specify, having regard to the intensity or quantity of energy consumed and the amount of investment required for switching over to energy efficient equipments and capacity of industry to invest in it and availability of the energy efficient machinery and equipment required by the industry, 4[any user or class of users of energy in the energy intensive industries and other establishments as specified in the Schedule as a designated consumer] for the purposes of this Act; (f) alter the list of Energy Intensive Industries [5][and other establishments] specified in the Schedule; (g) establish and prescribe such energy consumption norms and standards for designated consumers as it may consider necessary: Provided that the Central Government may prescribe different norms and standards for different designated consumers having regard to such factors as may be prescribed; (h) direct, having regard to quantity of energy consumed or the norms and standards of energy consumption specified under clause (a), the Energy Intensive Industries [5][and other establishments] specified in the Schedule to get energy audit conducted by an accredited energy auditor in such manner and intervals of time as may be specified by regulations; (i) direct, if considered necessary for efficient use of energy and its conservation, any designated consumer to get energy audit conducted by an accredited energy auditor; (j) specify the matters to be included for the purposes of inspection under sub-section (2) of section 17; (k) direct any designated consumer to furnish to the designated agency, in such form and manner and within such period, as may be prescribed, the information with regard to the energy consumed and action taken on the recommendation of the accredited energy auditor; (l) direct any designated consumer to designate or appoint [6][energy auditor or energy manager] in charge of activities for efficient use of energy and its conservation and submit a report, in the form 1. Subs. by Act 19 of 2022, s. 6, for “appliance” (w.e.f. 1-1-2023). 2. Ins. by s. 6, ibid. (w.e.f. 1-1-2023). 3. Subs. by s. 6, ibid., for clause (c) (w.e.f. 1-1-2023). 4. Subs. by Act 28 of 2010, s. 6, for “any user or class of users of energy as a designated consumer” (w.e.f. 24-8-2010). ----- and manner as may be prescribed, on the status of energy consumption at the end of every financial year to the designated agency; (m) prescribe minimum qualification for [1][energy auditors and energy managers] to be designated or appointed under clause (l); (n) direct every designated consumer to comply with energy consumption norms and standards; (o) direct any designated consumer, who does not fulfil the energy consumption norms and standards prescribed under clause (g), to prepare a scheme for efficient use of energy and its conservation and implement such scheme keeping in view the economic viability of the investment in 2[such form, the time within which and the manner] as may be prescribed; (p) prescribe [3][energy conservation and sustainable building codes] for efficient use of energy and its conservation in the building or building complex; (q) amend the [3][energy conservation and sustainable building codes] to suit the regional and local climatic conditions; (r) direct every owner or occupier of the building or building complex, being a designated consumer to comply with the provisions of [3][energy conservation and sustainable building codes] for efficient use of energy and its conservation; (s) direct, any designated consumer referred to in clause (r), if considered necessary, for efficient use of energy and its conservation in his building to get energy audit conducted in respect of such building by an accredited energy auditor in such manner and intervals of time as may be specified by regulations; (t) take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation; (u) arrange and organise training of personnel and specialists in the techniques for efficient use of energy and its conservation; (v) take steps to encourage preferential treatment for use of energy efficient equipment or appliances: 4[(w) specify the carbon credit trading scheme; (x) specify minimum share of consumption of non-fossil sources by designated consumers as energy or feedstock, provided different share of consumption may be specified for different types of non-fossil sources for different designated consumers:] Provided that the powers under clauses (p) to (s) shall be exercised in consultation with the concerned State. **5[14A.** **6[Issuance of energy savings certificate].—(1) The Central Government** 7[or any agency authorised by it] may issue the energy savings certificate to the designated consumer whose energy consumption is less than the prescribed norms and standards in accordance with the procedure as may be prescribed. (2) The designated consumer whose energy consumption is more than the prescribed norms and standards shall be entitled to purchase the energy savings certificate to comply with the prescribed norms and standards. 7[Provided that any other person may also purchase energy saving certificate or carbon credit certificate on voluntary basis.] 1. Subs. by Act 28 of 2010, s. 6, for “energy managers” (w.e.f. 24-8-2010). 2. Subs. by s. 6, ibid., for “such form and manner” (w.e.f. 24-8-2010). 3. Subs. by Act 19 of 2022, s. 6, for “energy conservation building codes” (w.e.f. 1-1-2023). 4. Ins. by s. 6, ibid. (w.e.f. 1-1-2023). 5. Ins. by Act 28 of 2010, s. 7, (w.e.f. 24-8-2010). 6. Subs. Act 19 of 2022, s. 7, for the marginal heading “Power of Central Government to issue energy savings certificate” (w.e.f. 1-1 ----- 1[14AA. Issuance of carbon credit certificate.—(1) The Central Government, or any agency authorised by it may issue carbon credit certificate to the registered entity which complies with the requirements of the carbon credit trading scheme. (2) The registered entity shall be entitled to purchase or sell the carbon credit certificate in accordance with carbon credit trading scheme specified under clause (w) of section 14.] **14B. Power of Central Government to specify value of energy.—The Central Government may, in** consultation with the Bureau, prescribe the value of per metric ton of oil equivalent of energy consumed for the purposes of this Act.] CHAPTER VI POWER OF STATE GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS CONSERVATION **15. Power of State Government to enforce certain provisions for efficient use of energy and its** **conservation.—The State Government may, by notification, in consultation with the Bureau—** (a) amend the [2][energy conservation and sustainable building codes] to suit the regional and local climatic conditions and may, by rules made by it, specify and notify [3][energy conservation and sustainable building codes] with respect to use of energy in the buildings [3][and implement the same through building bye-laws of the State]; (b) direct every owner or occupier of a building or building complex being a designated consumer to comply with the provisions of the [3][energy conservation and sustainable building codes]; (c) direct, if considered necessary for efficient use of energy and its conservation, any designated consumer referred to in clause (b) to get energy audit conducted by an accredited energy auditor in such manner and at such intervals of time as may be specified by regulations; (d) designate any agency as designated agency to coordinate, regulate and enforce provisions of this Act within the State; (e) take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation; (f) arrange and organise training of personnel and specialists in the techniques for efficient use of energy and its conservation; (g) take steps to encourage preferential treatment for use of energy efficient equipment or appliances; (h) direct, any designated consumer to furnish to the designated agency, in such form and manner and within such period as may be specified by rules made by it, information with regard to the energy consumed by such consumer; 4[(ha) levy such fee as may be prescribed for the services rendered by the designated agency to promote efficient use of energy and its conservation under this Act;] (i) specify the matters to be included for the purposes of inspection under sub-section (2) of section 17. 4[15A. Budget of designated agency.—The designated agency shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure and forward the same to the State Government, which shall include the same in the annual budget.] 1. Ins. by Act 19 of 2022, s. 8 (w.e.f. 1-1-2023). 2. Subs. by s. 9, ibid., for “energy conservation building codes” (w.e.f. 1-1-2023). ----- 1[16. Establishment of Fund by State Government.— (1) There shall be constituted a Fund for the purposes of promotion of efficient use of energy and its conservation within the State to be called the State Energy Conservation Fund and there shall be credited thereto— (a) all grants and loans that may be made by the State Government or the Central Government or any other organisation or individual for the purposes of this Act; (b) all fees received by the State Government or the designated agency under this Act; (c) all sums received by the State Government or the designated agency from such other sources as may be decided by the State Government. (2) The Fund shall be utilised for meeting the expenses— (a) of the designated agency in the discharge of its functions; (b) for the objects and purposes authorised by or under this Act. (3) The Fund created under sub-section (1) shall be administered by such person or authority and in such manner as may be prescribed by the rules made by the State Government.] **17. Power of inspection.—(1) The designated agency may appoint, after the expiry of five years** from the date of commencement of this Act, as many inspecting officers as may be necessary for the purpose of ensuring compliance with energy consumption standards specified under clause (a) of section 14 or ensure display of particulars on label on equipment or appliance specified under clause (b) of section 14 or for the purpose of performing such other functions as may be assigned to them. (2) Subject to any rules made under this Act, an inspecting officer shall have power to— (a) inspect any operation carried on or in connection with the equipment or appliance specified under clause (b) of section 14 or in respect of which energy standards under clause (a) of section 14 have been specified; (b) enter any place of designated consumer at which the energy is used for any activity and may require any proprietor, employee, director, manager or secretary or any other person who may be attending in any manner to or helping in, carrying on any activity with the help of energy— (i) to afford him necessary facility to inspect— (A) any equipment or appliance as he may require and which may be available at such place; (B) any production process to ascertain the energy consumption norms and standards; (ii) to make an inventory of stock of any equipment or appliance checked or verified by him; (iii) to record the statement of any person which may be useful for, or relevant to, for efficient use of energy and its conservation under this Act. (3) An inspecting officer may enter any place of designated consumer— (a) where any activity with the help of energy is carried on; and (b) where any equipment or appliance notified under clause (b) of section 14 has been kept, during the hours at which such place is open for production or conduct of business connected therewith. (4) An inspecting officer acting under this section shall, on no account, remove or cause to be removed from the place wherein he has entered, any equipment or appliance or books of account or other documents. **18. Power of Central Government or State Government to issue directions.—The Central** Government or the State Government may, in the exercise of its powers and performance of its functions ----- under this Act and for efficient use of energy and its conservation, issue such directions in writing as it deems fit for the purposes of this Act to any person, officer, authority or any designated consumer and such person, officer or authority or any designated consumer shall be bound to comply with such directions. _Explanation.—For the avoidance of doubts, it is hereby declared that the power to issue directions_ under this section includes the power to direct— (a) regulation of norms for process and energy consumption standards in any industry or building or building complex; or (b) regulation of the energy consumption standards for equipment and appliances. CHAPTER VII FINANCE, ACCOUNTS AND AUDIT OF BUREAU **19. Grants and loans by Central Government.—The Central Government may, after due** appropriation made by Parliament by law in this behalf, make to the Bureau or to the State Governments grants and loans of such sums of money as the Central Government may consider necessary. **20. Establishment of Fund by Central Government.—(1) There shall be constituted a Fund to be** called as the Central Energy Conservation Fund and there shall be credited thereto— (a) any grants and loans made to the Bureau by the Central Government under section 19; (b) all fees received by the Bureau under this Act; (c) all sums received by the Bureau from such other sources as may be decided upon by the Central Government. (2) The Fund shall be applied for meeting— (a) the salary, allowances and other remuneration of Director-General, Secretary, officers and other employees of the Bureau; (b) expenses of the Bureau in the discharge of its functions under section 13; (c) fee and allowances to be paid to the members of the Governing Council under sub-section (5) of section 4; (d) expenses on objects and for purposes authorised by this Act. **21. Borrowing powers of Bureau.—(1) The Bureau may, with the consent of the Central** Government or in accordance with the terms of any general or special authority given to it by the Central Government, borrow money from any source as it may deem fit for discharging all or any of its functions under this Act. (2) The Central Government may guarantee, in such manner as it thinks fit, the repayment of the principal and the payment of interest thereon with respect to the loans borrowed by the Bureau under sub-section (1). **22. Budget.—The Bureau shall prepare, in such form and at such time in each financial year as may** be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Bureau and forward the same to the Central Government. **23. Annual report.—The Bureau shall prepare, in such form and at such time in each financial year** as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the Central Government. **24. Annual report to be laid before Parliament.—The Central Government shall cause the annual** report referred to in section 23 to be laid, as soon as may be after it is received, before each House of Parliament. **25. Accounts and audit.—(1) The Bureau shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. ----- (2) The accounts of the Bureau shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Bureau to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Bureau shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts, and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Bureau. (4) The accounts of the Bureau as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. CHAPTER VIII PENALTIES AND ADJUDICATION 1[26. Penalty.—(1) If any person fails to comply with the provisions of clause (h) or clause (i) or clause (k) or clause (l) of section 14 or clause (c) or clause (h) of section 15, he shall be liable to a penalty which shall not exceed ten lakh rupees: Provided that in the case of continuing failures, the person shall be liable to an additional penalty which may extend to ten thousand rupees for every day during which such failures continue. (2) Notwithstanding anything contained in this Act or any other Act for the time being in force, if any person fails to comply with the provisions of clauses (c) and (d) of section 14, he shall in addition to the penalty of ten lakh rupees, be also liable to pay additional penalty which shall not exceed five thousand rupees per appliance or equipment in relation to which the non-compliance has occurred, but shall not be lower than two thousand rupees: Provided that where such non-compliance relates to any industrial unit or vessel, he shall also be liable to an additional penalty which shall not exceed twice the price of every metric ton of oil equivalent consumed in excess of the prescribed norms: Provided further that if the manufacturer of a vehicle fails to comply with the fuel consumption norms, he shall also be liable to pay an additional penalty per unit of vehicles sold in the corresponding year, as follows, namely:— (i) twenty-five thousand rupees per vehicle for non-compliance of norms up to 0.2 litres per 100 kms; (ii) fifty thousand rupees per vehicle for non-compliance of norms above 0.2 litres per 100 kms. (3) If any person fails to comply with the directions issued under clauses (n) and (x) of section 14, he shall be liable to a penalty which shall not exceed ten lakh rupees for each such failure: Provided that he shall also be liable to an additional penalty which shall not exceed twice the price of every metric ton of oil equivalent prescribed under this Act, which is in excess of the prescribed norms. (4) If a person fails to comply with the provisions of sub-section (1) of section 13A or fails to provide any information under section 52, he shall be liable to a penalty which may extend to fifty thousand rupees on first such non-compliance or failure: Provided that for every subsequent non-compliance or failure, he shall be liable to pay an additional penalty which shall not exceed ten thousand rupees per day of such non-compliance or failure. (5) Any amount payable under this section, if not paid, may be recovered as if it were an arrear of land revenue.] **27. Power to adjudicate.—(1) For the purpose of adjudging under section 26, the State Commission** shall appoint any of its members to be an adjudicating officer for holding an inquiry in such manner as ----- may be prescribed by the Central Government, after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty. (2) While holding an inquiry, the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject-matter of the inquiry, and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of any of the clauses of the sections specified in section 26, he may impose such penalty as he thinks fit in accordance with the provisions of any of those clauses of that section: Provided that where a State Commission has not been established in a State, the Government of that State shall appoint any of its officer not below the rank equivalent to a Secretary dealing with legal affairs in that State to be an adjudicating officer for the purposes of this section and such officer shall cease to be an adjudicating officer immediately on the appointment of an adjudicating officer by the State Commission on its establishment in that State: Provided further that where an adjudicating officer appointed by a State Government ceased to be an adjudicating officer, he shall transfer to the adjudicating officer appointed by the State Commission all matters being adjudicated by him and thereafter the adjudicating officer appointed by the State Commission shall adjudicate the penalties on such matters. 1[27A. Power of State Commission to make regulations.—(1) The State Commission may, by notification, make regulations for discharging its functions under this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for— (a) the manner of making application before the State Commission and the fee payable; (b) any other matter which is to be, or may be, provided by regulations by the State Commission for the purposes of its function: Provided that every regulation made by the State Commission under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House.] **28. Factors to be taken into account by adjudicating officer.—While adjudicating the quantum of** penalty under section 26, the adjudicating officer shall have due regard to the following factors, namely:— (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the repetitive nature of the default. 2[(c) the loss caused to a consumer and amount of compensation thereof.] **29. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which an adjudicating officer appointed under this Act or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. CHAPTER IX APPELLATE TRIBUNAL FOR ENERGY CONSERVATION 3[30. Appellate Tribunal.—The Appellate Tribunal established under section 110 of the Electricity Act, 2003 (36 of 2003) shall, without prejudice to the provisions of the Electricity Act, 2003, be the Appellate Tribunal for the purposes of this Act and hear appeals against the orders of the adjudicating officer or the Central Government or the State Government or any other authority under this Act.] 1. Ins. by Act 19 of 2022, s. 13 (w.e.f. 1-1-2023). ----- **31. Appeal to Appellate Tribunal.—(1) Any person aggrieved, by an order made by an adjudicating** officer or the Central Government or the State Government or any other authority under this Act, may prefer an appeal to the Appellate Tribunal for Energy Conservation: Provided that any person, appealing against the order of the adjudicating officer levying any penalty, shall, while filing the appeal, deposit the amount of such penalty: Provided further that where in any particular case, the Appellate Tribunal is of the opinion that the deposit of such penalty would cause undue hardship to such person, the Appellate Tribunal may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation of penalty. (2) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order made by the adjudicating officer or the Central Government or the State Government or any other authority is received by the aggrieved person and it shall be in such form, verified in such manner and be accompanied by such fee as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned adjudicating officer or the Central Government or the State Government or any other authority. (5) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within one hundred and eighty days from the date of receipt of the appeal: Provided that where an appeal could not be disposed of within the said period of one hundred and eighty days, the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within the said period. (6) The Appellate Tribunal may, for the purpose of examining the legality, propriety or correctness of any order made by the adjudicating officer or the Central Government or the State Government or any other authority under this Act, as the case may be, in relation to any proceeding, on its own motion or otherwise, call for the records of such proceedings and make such order in the case as it thinks fit. **1[31A. Procedure and powers of Appellate Tribunal.—The provisions of sections 120 to 123 (both** inclusive) of the Electricity Act, 2003 (36 of 2003) shall, _mutatis mutandis, apply to the Appellate_ Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its function under the Electricity Act, 2003.] **32. Composition of Appellate Tribunal. [Omitted by the Energy Conservation (Amendment) Act, 2010** (28 of 2010), s.11 (w.e.f. 24-8-2010)]. **33.** _Qualifications for appointment of Chairperson and Members of Appellate Tribunal. [Omitted by_ _s. 11, ibid. (w.e.f. 24-8-2010)]._ **34.** _Term of office. [Omitted by s.11, ibid._ (w.e.f. 24-8-2010)]. **35.** _Terms and conditions of service. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._ **36.** _Vacancies. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._ **37.** _Resignation and removal. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._ **38.** _Member to act as Chairperson in certain circumstances._ [Omitted by s.11, _ibid._ (w.e.f. 24-8-2010)]. **39.** _Staff of Appellate Tribunal. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._ **40.** _Procedure and powers of Appellate Tribunal. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._ ----- **41.** _Distribution of business amongst Benches. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._ **42.** _Power of Chairperson to transfer cases. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._ **43.** _Decision to be by majority. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._ **44. Right of appellant to take assistance of legal practitioner or accredited auditor and of** **Government to appoint presenting officers.—(1) A person preferring an appeal to the Appellate** Tribunal under this Act may either appear in person or take the assistance of a legal practitioner or an accredited energy auditor of his choice to present his case before the Appellate Tribunal, as the case may be. (2) The Central Government or the State Government may authorise one or more legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal, as the case may be. **45. Appeal to Supreme Court.—Any person aggrieved by any decision or order of the Appellate** Tribunal, may, file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal to him, on any one or more of the grounds specified in section 100 of the Code of Civil Procedure, 1908 (5 of 1908): Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. CHAPTER X MISCELLANEOUS **46. Power of Central Government to issue directions to Bureau.—(1) Without prejudice to the** foregoing provisions of this Act, the Bureau shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Bureau shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government, whether a question is one of policy or not, shall be final. **47. Power of Central Government to supersede Bureau.—(1) If at any time the Central** Government is of opinion— (a) that on account of grave emergency, the Bureau is unable to discharge the functions and duties imposed on it by or under the provisions of this Act; or (b) that the Bureau has persistently made default in complying with any direction issued by the Central Government under this Act or in discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of such default, the financial position of the Bureau had deteriorated or the administration of the Bureau had deteriorated; or (c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification, supersede the Bureau for such period, not exceeding six months, as may be specified in the notification. (2) Upon the publication of a notification under sub-section (1) superseding the Bureau,— (a) all the members referred to in clauses (o), (p) and (q) of sub-section (2) of section 4 shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Bureau, shall until the Bureau is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; and (c) all property owned or controlled by the Bureau shall, until the Bureau is reconstituted under sub-section (3), vest in the Central Government. ----- (3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may reconstitute the Bureau by a fresh appointment and in such case any person or persons who vacated their offices under clause (a) of sub-section (2), shall not be deemed disqualified for appointment: Provided that the Central Government may, at any time, before the expiration of the period of supersession, take action under this sub-section. (4) The Central Government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament at the earliest. **48. Default by companies.—(1) Where a company makes a default in complying with the provisions** of clause (c) or clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15, every person who at the time of such contravention was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to have acted in contravention of the said provisions and shall be liable to be proceeded against and imposed penalty under section 26 accordingly: Provided that nothing contained in this sub-section shall render any such person liable for penalty provided in this Act if he proves that the contravention of the aforesaid provisions was committed without his knowledge or that he exercised all due diligence to prevent the contravention of the aforesaid provision. (2) Notwithstanding anything contained in sub-section (1), where any contravention of the provisions of clause (c) or clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15 has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to have contravened the said provisions and shall be liable to be proceeded for imposition of penalty accordingly. _Explanation.—For the purposes of this section, “company” means a body corporate and includes a_ firm or other association of individuals. **49. Exemption from tax on income.—Notwithstanding anything contained in the Income-tax Act,** 1961 (43 of 1961) or any other enactment for the time being in force relating to tax on income, profits or gains— (a) the Bureau; (b) the existing Energy Management Centre from the date of its constitution to the date of establishment of the Bureau, shall not be liable to pay any income-tax or any tax in respect of their income, profits or gains derived. **50. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or Director-General or Secretary or State Government or any officer of those Governments or State Commission or its members or any member or officer or other employee of the Bureau for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. **51. Delegation.—The Bureau may, by general or special order in writing, delegate to any member,** member of the committee, officer of the Bureau or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers under section 58) as it may deem necessary. **52. Power to obtain information.—Every designated consumer or manufacturer of equipment or** appliance [1][or any other person or entity covered under this Act shall furnish to the Bureau such information, documents or records relating to energy consumption, and such samples] of any material or substance used in relation to any equipment or appliance, as the Bureau may require. ----- **53. Power to exempt.—If the Central Government or the State Government is of the opinion that it is** necessary or expedient so to do in the public interest, it may, by notification and subject to such conditions as may be specified in the notification, exempt any designated consumer or class of designated consumers from application of all or any of the provisions of this Act: Provided that the Central Government or the State Government, as the case may be, shall not grant exemption to any designated consumer or class of designated consumers for a period exceeding five years: Provided further that the Central Government or the State Government, as the case may be, shall consult the Bureau of Energy Efficiency before granting such exemption. **54. Chairperson, Members, officers and employees of the Appellate Tribunal, Members of State** **Commission, Director-General, Secretary, members, officers and employees of the Bureau to be** **public servants.—The** [1]*** members, Director-General, Secretary, officers and other employees of the Bureau shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **55. Power of Central Government to issue directions.—The Central Government may give** directions to a State Government or the Bureau as to carrying out into execution of this Act in the State. **56. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) such number of persons to be appointed as members by the Central Government under clauses (o), (p) and (q) of sub-section (2) of section 4; (b) the fee and allowances to be paid to the members under sub-section (5) of section 4; (c) the salary and allowances payable to the Director-General and other terms and conditions of his service and other terms and conditions of service of the Secretary of the Bureau under sub-section (4) of section 9; (d) the terms and conditions of service of officers and other employees of the Bureau under sub-section (2) of section 10; (e) performing such other functions by the Bureau, as may be prescribed, under clause (u) of sub-section (2) of section 13; (f) the energy consumption norms and standards for designated consumers under clause (g) of section 14; (g) prescribing the different norms and standards for different designated consumers under the proviso to clause (g) of section 14; (h) the form and manner and the time within which information with regard to energy consumed and the action taken on the recommendations of the accredited energy auditor be furnished under clause (k) of section 14; (i) the form and manner in which the status of energy consumption be submitted under clause (i) of section 14; (j) the minimum qualifications for [2][energy auditors and energy managers] under clause (m) of section 14; (k) the form and manner for preparation of scheme and its implementation under clause (o) of section 14; (l) the [3][energy conservation and sustainable building codes] under clause (p) of section 14; 1. Certain words omitted by Act of 28 of 2010, s. 12 (w.e.f. 24-8-2010). ----- 1[(la) prescribing the procedure for issuing the energy savings certificate under sub-section (1) of section 14A; (laa) the value of per metric ton of oil equivalent of energy consumed under section 14B;] (m) the matters relating to inspection under sub-section (2) of section 17; (n) the form in which, and the time at which, the Bureau shall prepare its budget under section 22; (o) the form in which, and the time at which, the Bureau shall prepare its annual report under section 23; (p) the form in which the accounts of the Bureau shall be maintained under section 25; (q) the manner of holding inquiry under sub-section (1) of section 27; (r) the form and fee for filing appeal under sub-section (2) of section 31; 2* - - - (v) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, or may be made, by rules. **57. Power of State Government to make rules.—(1) The State Government may, by notification,** make rules for carrying out the provisions of this Act and not inconsistent with the rules, if any, made by the Central Government. (2) In particular, and without prejudice to the generality of the foregoing, power, such rules may provide for all or any of the following matters, namely:— (a) [3][energy conservation and sustainable building codes] under clause (a) of section 15; (b) the form, the manner and the period within which information with regard to energy consumption shall be furnished under clause (h) of section 15; 4[(ba) the fee to be levied for the services rendered by the designated agency for promoting efficient use of energy and its conservation under clause (ha) of section 15; (bb) the form in which and the time at which, the budget of the designated agency shall be prepared under section 15A;] (c) the person or any authority who shall administer the Fund and the manner in which the Fund shall be administered under sub-[5][section (3)] of section 16; (d) the matters to be included for the purposes of inspection under sub-section (2) of section 17; (e) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, or may be made, by rules. **58. Power of Bureau to make regulations.—(1) The Bureau may, with the previous approval of the** Central Government and subject to the condition of previous publication, by notification, make regulations not inconsistent with the provisions of this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the times and places of the meetings of the Governing Council and the procedure to be followed at such meetings under sub-section (1) of section 5; (b) the members of advisory committees constituted under sub-section (2) of section 8; (c) the powers and duties that may be exercised and discharged by the Director-General of the Bureau under sub-section (6) of section 9; 1. Ins. by Act 28 of 2010, s. 13, (w.e.f. 24-8-2010). 2. Cls. (s), (t) and (u) omitted by s. 13, ibid. (w.e.f. 24-8-2010). 3. Subs. by Act 19 of 2022, s. 17, for “energy conservation building codes” (w.e.f. 1-1-2023). ----- (d) the levy of fee for services provided for promoting efficient use of energy and its conservation under clause (n) of sub-section (2) of section 13; (e) the list of accredited energy auditors under clause (o) of sub-section (2) of section 13; 1[(f) the qualifications, criteria and conditions subject to which a person may be accredited as an energy auditor and the procedure for such accreditation under clause (p) of sub-section (2) of section 13;] (g) the manner and the intervals of time in which the energy audit shall be conducted under clause (q) of sub-section (2) of section 13; (h) certification procedure for [2][energy auditors and energy managers] under clause (r) of sub-section (2) of section 13; 3[(ha) the purposes, and the terms and conditions subject to which, an agency may be authorised to carry out the functions of the Bureau under clause (tb) of sub-section (2) of section 13; (hb) the technical qualification to test samples under clause (tc) of sub-section (2) of section 13;] (i) particulars required to be displayed on label and the manner of their display under clause (d) of section 14; (j) the manner and the intervals of time for conduct of energy audit under clause (h) or clause (s) of section 14; (k) the manner and the intervals of time for conducting energy audit by an accredited energy auditor under clause (c) of section 15; (l) any other matter which is required to be, or may be, specified. **59. Rules and regulations to be laid before Parliament and State Legislature.—(1) Every rule** made by the Central Government and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. (2) Every rule made by the State Government shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **60. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the provisions of any other law for the time being in force. **61. Provisions of Act not to apply in certain cases.—The provisions of this Act shall not apply to** the Ministry or Department of the Central Government dealing with Defence, Atomic Energy or such other similar Ministries or Departments or undertakings or Boards or institutions under the control of such Ministries or Departments as may be notified by the Central Government. **62. Power to remove difficulty.—(1) If any difficulty arises in giving effect to the provisions of this** Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of two years from the date of the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 1. Subs. by Act 28 of 2010, s. 14, for clause (f) (w.e.f. 24-8-2010). ----- THE SCHEDULE [See section 2(s)] LIST OF ENERGY INTENSIVE INDUSTRIES AND OTHER ESTABLISHMENTS [1]*** 1. Aluminium; 2. Fertilizers; 3. Iron and Steel; 4. Cement; 5. Pulp and paper; 6. Chlor Alkali; 2[7. Sugar-Units of sugar plants or establishment those are under production of sugar and its variants such as white sugar, brown sugar and liquid sugar;] 8. Textile; 3[9. Chemical-Units of such chemical plants or establishments those are under production of chemicals with following sub-categories: (i) Alkali Chemical (Soda Ash, Potassium Hydroxide); (ii) Inorganic Chemicals; (iii) Organic Chemicals; (iv) Pesticides (Technical); (v) Dyes and Pigments; and (vi) Pharmaceuticals [Active Pharmaceutical Ingredients (API).]] 10. Railways; 11. Port Trust; 12. Transport Sector (industries and services); 13. Petrochemical, Gas Crackers, Naphtha Crackers and Petroleum Refineries; 14. Thermal power stations, hydel power stations, electricity transmission companies and distribution companies; 15. Commercial buildings or establishments. 4[16. Ceramic- Units of such ceramic plants or establishments those are under production of vitrified tiles, floor tile, wall tiles and sanitary ware etc., including all variants such as stoneware, porcelain and fire bricks. 17. Glass- Units of such glass plants or establishments those are under production of glass and it’s finished products. 18. Zinc- Units of such zinc plants or establishments those are under production of zinc and it’s finished products. 19. Copper- Units of such copper plants or establishments those are under production of copper and it’s finished products. 20. Mines including exploration-Units of such mines those are involved in surface, underground or other category of mining of minerals as well as exploration of oil and natural gas.] _____________ 1. The words “specified as designated consumers” omitted by Act 28 of 2010, s. 15 (w.e.f. 24-8-2010). 2. Subs. by notification No. S.O. 09(E), dated 3-1-2022. -----
30-Oct-2001
53
The Protection of Plant Varieties and Farmers Rights Act, 2001
https://www.indiacode.nic.in/bitstream/123456789/1909/1/A2001-53.pdf
central
# THE PROTECTION OF PLANT VARIETIES AND FARMERS’ RIGHTS ACT, 2001 _________ # ARRANGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II PROTECTION OF PLANT VARIETIES AND FARMERS’ RIGHTS AUTHORITY AND REGISTRY _Protection of Plant Varieties and Farmers’ Rights Authority_ 3. Establishment of Authority. 4. Meetings of Authority. 5. Committees of Authority. 6. Officers and other employees of Authority. 7. Chairperson to be Chief Executive. 8. General functions of Authority. 9. Authentication of orders, etc., of Authority. 10. Delegation. 11. Power of Authority. _Registry_ 12. Registry and offices thereof. 13. National Register of Plant Varieties. CHAPTER III REGISTRATION OF PLANT VARIETIES AND ESSENTIALLY DERIVED VARIETY _Application for registration_ 14. Application for registration. 15. Registrable varieties. 16. Persons who may make application. 17. Compulsory variety denomination. 18. Form of application. 19. Test to be conducted. 20. Acceptance of application or amendment thereof. 21. Advertisement of application. 22. Registrar to consider grounds of opposition. 1 ----- _Registration of essentially derived variety_ SECTIONS 23. Registration of essentially derived variety. CHAPTER IV DURATION AND EFFECT OF REGISTRATION AND BENEFIT SHARING 24. Issue of certificate of registration. 25. Publication of list of varieties. 26. Determination of benefit sharing by Authority. 27. Breeder to deposit seeds or propagating material. 28. Registration to confer right. 29. Exclusion of certain varieties. 30. Researcher’s rights. 31. Special provisions relating to application for registration from citizens of convention countries. 32. Provisions as to reciprocity. CHAPTER V SURRENDER AND REVOCATION OF CERTIFICATE AND RECTIFICATION AND CORRECTION OF REGISTER 33. Surrender of certificate of registration. 34. Revocation of protection on certain grounds. 35. Payment of annual fees and forfeiture of registration in default thereof. 36. Power to cancel or change registration and to rectify the Register. 37. Correction of Register. 38. Alteration of denomination of a registered variety. CHATER VI FARMERS’ RIGHTS 39. Farmers’ rights. 40. Certain information to be given in application for registration. 41. Rights of communities. 42. Protection of innocent infringement. 43. Authorisation of farmers’ variety. 44. Exemption from fees. 45. Gene Fund. 46. Framing of schemes, etc. CHAPTER VII COMPULSORY LICENCE 47. Power of Authority to make order for compulsory licence in certain circumstances. 48. When requirement of public deemed to have not been satisfied. 49. Adjournment of application for grant of compulsory licence. 2 ----- SECTIONS 50. Duration of compulsory licence. 51. Authority to settle terms and conditions of licence. 52. Revocation of compulsory licence. 53. Modification of compulsory licence. CHAPTER VIII APPEALS 54. [Omitted.] 55. [Omitted.] 56. Appeals to High Court. 57. Orders of High Court. 58. [Omitted.] 59. [Omitted.] CHAPTER IX FINANCE, ACCOUNTS AND AUDIT 60. Grants by Central Government. 61. Authority Fund. 62. Budget, accounts and audit. 63. Financial and administrative powers of Chairperson. CHAPTER X INFRINGEMENT, OFFENCES, PENALTIES AND PROCEDURE _Infringement_ 64. Infringement. 65. Suit for infringement, etc. 66. Relief in suits for infringement. 67. Opinion of scientific adviser. _Offences, penalties and procedure_ 68. Prohibition to apply denomination of a registered variety. 69. Meaning of falsely applying denomination of a registered variety. 70. Penalty for applying false denomination, etc. 71. Penalty for selling varieties to which false denomination is applied, etc. 72. Penalty for falsely representing a variety as registered. 73. Penalty for subsequent offence. 74. No offence in certain cases. 75. Exemption of certain persons employed in ordinary course of business. 76. Procedure where invalidity of registration is pleaded by the accused. 77. Offences by companies. 3 ----- CHAPTER XI MISCELLANEOUS SECTIONS 78. Protection of security of India. 79. Implied warranty on sale of registered variety, etc. 80. Death of party to a proceeding. 81. Right of registered agent and the registered licensee to institute suit. 82. Evidence of entry in Register, etc., and things done by the Authority and the Registrar. 83. Authority, Registrar and other officers not compellable to production of Register, etc. 84. Document open to public inspection. 85. Report of Authority to be placed before Parliament. 86. Government to be bound. 87. Proceedings before Authority or Registrar. 88. Protection of action taken in good faith. 89. Bar of jurisdiction. 90. Members and staff of Authority, etc., to be public servants. 91. Exemption from tax on wealth and income. 92. Act to have overriding effect. 93. Power of Central Government to give directions. 94. Power to remove difficulties. 95. Power to make regulations. 96. Power of Central Government to make rules. 97. Rules, regulations and schemes to be laid before Parliament. 4 ----- # THE PROTECTION OF PLANT VARIETIES AND FARMERS’ RIGHTS ACT, 2001 ACT NO. 53 OF 2001 [30th October, 2001.] # An Act to provide for the establishment of an effective system for protection of plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plants. WHEREAS it is considered necessary to recognise and protect the rights of the farmers in respect of their contribution made at any time in conserving, improving and making available plant genetic resources for the development of new plant varieties; AND WHEREAS for accelerated agricultural development in the country, it is necessary to protect plant breeders' rights to stimulate investment for research and development, both in the public and private sector, for the development of new plant varieties; AND WHEREAS such protection will facilitate the growth of the seed industry in the country which will ensure the availability of high quality seeds and planting material to the farmers; AND WHEREAS, to give effect to the aforesaid objectives, it is necessary to undertake measures for the protection of the rights of farmers and plant breeders; AND WHEREAS India, having ratified the Agreement on Trade Related Aspects of Intellectual Property Rights should, inter alia, make provision for giving effect to sub-paragraph (b) of paragraph 3 of article 27 in Part II of the said Agreement relating to protection of plant varieties. BE it enacted by Parliament in the Fifty-second Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Protection of Plant** Varieties and Farmers’ Rights Act, 2001. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Authority” means the Protection of Plant Varieties and Farmers’ Rights Authority established under sub-section (1) of section 3; (b) “benefit sharing”, in relation to a variety, means such proportion of the benefit accruing to a breeder of such variety or such proportion of the benefit accruing to the breeder from an agent or a licensee of such variety, as the case may be, for which a claimant shall be entitled as determined by the Authority under section 26; (c) “breeder” means a person or group of persons or a farmer or group of farmers or any institution which has bred, evolved or developed any variety; 2* - - - (e) “Chairperson” means the Chairperson of the Authority appointed under clause (a) of sub-section (5) of section 3; (f) “convention country” means a country which has acceded to an international convention for the protection of plant varieties to which India has also acceded, or a country which has a law on 1. 11th November, 2005, ss. 2 to 13 (both inclusive) and ss. 95, 96 and 97, _vide notification No. S.O. 1588(E), dated 11th_ November, 2005, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 19th October, 2006, s. 1 and ss. 14 to 94 (both inclusive) vide notification No. S.O. 1797(E), dated 19th October, 2006, _see_ Gazette of India Extraordinary, Part II, sec. 3(ii). 2. Clause (d) omitted by Act 33 of 2021, s. 23 (w.e.f. 4-4-2021). 5 ----- protection of plant varieties on the basis of which India has entered into an agreement for granting plant breeders' right to the citizens of both the countries; (g) “denomination”, in relation to a variety or its propagating material or essentially derived variety or its propagating material, means the denomination of such variety or its propagating material or essentially derived variety or its propagating material, as the case may be, expressed by means of letters or a combination of letters and figures written in any language; (h) “essential characteristics” means such heritable traits of a plant variety which are determined by the expression of one or more genes of other heritable determinants that contribute to the principle features, performance or value of the plant variety; (i) “essentially derived variety”, in respect of a variety (the initial variety), shall be said to be essentially derived from such initial variety when it— (i) is predominantly derived from such initial variety, or from a variety that itself is predominantly derived from such initial variety, while retaining the expression of the essential characteristics that result from the genotype or combination of genotypes of such initial variety; (ii) is clearly distinguishable from such initial variety; and (iii) conforms (except for the differences which result from the act of derivation) to such initial variety in the expression of the essential characteristics that result from the genotype or combination of genotype of such initial variety; (j) “extant variety” means a variety available in India which is— (i) notified under section 5 of the Seeds Act, 1966 (54 of 1966); or (ii) farmers’ variety; or (iii) a variety about which there is common knowledge; or (iv) any other variety which is in public domain; (k) “farmer” means any person who— (i) cultivates crops by cultivating the land himself; or (ii) cultivates crops by directly supervising the cultivation of land through any other person; or (iii) conserves and preserves, severally or jointly, with any other person any wild species or traditional varieties or adds value to such wild species or traditional varieties through selection and identification of their useful properties; (l) “farmers’ variety” means a variety which— (i) has been traditionally cultivated and evolved by the farmers in their fields; or (ii) is a wild relative or land race of a variety about which the farmers possess the common knowledge; (m) “Gene Fund” means the National Gene Fund constituted under sub-section (1) of section 45; 1* - - - (p) “member” means a member of the Authority appointed under clause (b) of sub-section (5) of section 3 and includes the member-secretary; 2[(q) “prescribed” means,— (i) in relation to proceedings before a High Court, prescribed by rules made by the High Court; and 1. Clauses (n) and (o) omitted by Act 33 of 2021, s. 23 (w.e.f. 4-4-2021). 2. Subs. by s. 23, ibid., for clause (q) (w.e.f. 4-4-2021). 6 ----- (ii) in other cases, prescribed by rules made under this Act;] (r) “propagating material” means any plant or its component or part thereof including an intended seed or seed which is capable of, or suitable for, regeneration into a plant; (s) “Register” means a national Register of Plant Varieties referred to in section 13; (t) “Registrar” means a Registrar of Plant Varieties appointed under sub-section (4) of section 12 and includes the Registrar-General; (u) “Registrar-General” means the Registrar-General of Plant Varieties appointed under sub-section (3) of section12; (v) “Registry” means the Plant Variety Registry referred to in sub-section (1) of section 12; (w) “regulations” means regulations made by the Authority under this Act; (x) “seed” means a type of living embryo or propagule capable of regeneration and giving rise to a plant which is true to such type; 1* - - - (za) “variety” means a plant grouping except micro-organism within a single botanical taxon of the lowest known rank, which can be— (i) defined by the expression of the characteristics resulting from a given genotype of that plant grouping; (ii) distinguished from any other plant grouping by expression of at least one of the said characteristics; and (iii) considered as a unit with regard to its suitability for being propagated, which remains unchanged after such propagation, and includes propagating material of such variety, extant variety, transgenic variety, farmers’ variety and essentially derived variety. CHAPTER II PROTECTION OF PLANT VARIETIES AND FARMERS’ RIGHTS AUTHORITY AND REGISTRY _Protection of Plant Varieties and Farmers’ Rights Authority_ **3. Establishment of Authority.—(1) The Central Government shall, by notification in the Official** Gazette, establish an authority to be known as the Protection of Plant Varieties and Farmers’ Rights Authority for the purposes of this Act. (2) The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to acquire, hold and dispose of properties, both movable and immovable, and to contract, and shall by the said name sue and be sued. (3) The head office of the Authority shall be at such place as the Central Government may, by notification in the Official Gazette, specify and the Authority may, with the previous approval of the Central Government, establish branch offices at other places in India. (4) The Authority shall consist of a Chairperson and fifteen members. (5) (a) The Chairperson, to be appointed by the Central Government, shall be a person of outstanding caliber and eminence, with long practical experience to the satisfaction of that Government especially in the field of plant varietal research or agricultural development. (b) The members of the Authority, to be appointed by the Central Government, shall be as follows, namely:— (i) the Agriculture Commissioner, Government of India, Department of Agriculture and Cooperation, New Delhi, ex officio; 1. Clauses (y) and (z) omitted by Act 33 of 2021, s. 23 (w.e.f. 4-4-2021). 7 ----- (ii) the Deputy Director General incharge of Crop Sciences, Indian Council of Agricultural Research, New Delhi, ex officio; (iii) the Joint Secretary incharge of Seeds, Government of India, Department of Agriculture and Cooperation, New Delhi, ex officio; (iv) the Horticulture Commissioner, Government of India, Department of Agriculture and Cooperation, New Delhi, ex officio; (v) the Director, National Bureau of Plant Genetic Resources, New Delhi, ex officio; (vi) one member not below the rank of Joint Secretary to the Government of India to represent the Department of Bio-technology, Government of India, ex officio; (vii) one member not below the rank of Joint Secretary to the Government of India to represent the Ministry of Environment and Forests, Government of India, ex officio; (viii) one member not below the rank of Joint Secretary to the Government of India to represent the Ministry of Law, Justice and Company Affairs, Government of India, ex officio; (ix) one representative from a National or State level farmers’ organisation to be nominated by the Central Government; (x) one representative from a tribal organisation to be nominated by the Central Government; (xi) one representative from the seed industry to be nominated by the Central Government; (xii) one representative from an agricultural University to be nominated by the Central Government; (xiii) one representative from a National or State level women’s organisation associated with agricultural activities to be nominated by the Central Government; and (xiv) two representatives of State Governments on rotation basis to be nominated by the Central Government. (c) The Registrar-General shall be the ex officio member-secretary of the Authority. (6) The term of office of the Chairperson and the manner of filling the post shall be such as may be prescribed. (7) The Chairperson shall appoint a Standing Committee consisting of five members, one of whom shall be a member who is a representative from a farmers’ organisation, to advise the Authority on all issues including farmers’ rights. (8) The Chairperson shall be entitled to such salary and allowances and shall be subject to such conditions of service in respect of leave, pension, provident fund and other matters as may be prescribed. The allowances for non-official members for attending the meetings of the Authority shall be such as may be prescribed. (9) The Chairperson may resign his office by giving notice thereof in writing to the Central Government and on such resignation being accepted, he shall be deemed to have vacated his office. (10) On the resignation of the Chairperson or on the vacation of the office of the Chairperson for any reason, the Central Government may appoint one of the members to officiate as Chairperson till a regular Chairperson is appointed in accordance with clause (a) of sub-section (5). **4. Meetings of Authority.—(1) The Authority shall meet at such time and place and shall observe** such rules of procedure in regard to the transaction of business at its meetings [including the quorum at its meetings and the transaction of business of its Standing Committee appointed under sub-section (7) of section 3] as may be prescribed. (2) The Chairperson of the Authority shall preside at the meetings of the Authority. (3) If, for any reason the Chairperson is unable to attend any meeting of the Authority, any member of the Authority chosen by the members present shall preside at the meeting. 8 ----- (4) All questions which come before any meeting of the Authority shall be decided by a majority of the votes of the members of the Authority present and voting and in the event of equality of votes, the Chairperson of the Authority or in his absence, the person presiding shall have and exercise a second or casting vote. (5) Every member who is in any way, whether directly, indirectly or personally, concerned or interested in a matter to be decided at the meeting shall disclose the nature of his concern or interest and after such disclosure, the member, concerned or interested, shall not attend that meeting. (6) No act or proceeding of the Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as the Chairperson or a member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. **5. Committees of Authority.—(1) The Authority may appoint such committees as may be necessary** for the efficient discharge of its duties and performance of its functions under this Act. (2) The persons appointed as members of the committee under sub-section (1) shall be entitled to receive such allowances or fees for attending the meetings of the committee as may be fixed by the Central Government. **6. Officers and other employees of Authority.—Subject to such control and restriction as may be** prescribed, the Authority may appoint such officers and other employees as may be necessary for the efficient performance of its functions and the method of appointment, the salary and allowances and other conditions of service of such other officers and employees of the Authority shall be such as may be prescribed. **7. Chairperson to be Chief Executive.—The Chairperson shall be the Chief Executive of the** Authority and shall exercise such powers and perform such duties as may be prescribed. **8. General functions of Authority.—(1) It shall be the duty of the Authority to promote, by such** measures as it thinks fit, the encouragement for the development of new varieties of plants and to protect the rights of the farmers and breeders. (2) In particular, and without prejudice to the generality of the foregoing provisions, the measures referred to in sub-section (1) may provide for— (a) the registration of extant varieties subject to such terms and conditions and in the manner as may be prescribed; (b) developing characterisation and documentation of varieties registered under this Act; (c) documentation, indexing and cataloguing of farmers’ varieties; (d) compulsory cataloguing facilities for all varieties of plants; (e) ensuring that seeds of the varieties registered under this Act are available to the farmers and providing for compulsory licensing of such varieties if the breeder of such varieties or any other person entitled to produce such variety under this Act does not arrange for production and sale of the seed in the manner as may be prescribed; (f) collecting statistics with regard to plant varieties, including the contribution of any person at any time in the evolution or development of any plant variety, in India or in any other country, for compilation and publication; (g) ensuring the maintenance of the Register. **9. Authentication of orders, etc., of Authority.—All orders and decisions of the Authority shall be** authenticated by the signature of the Chairperson or any other member authorised by the Authority in this behalf. 9 ----- **10. Delegation.—The Authority may, by general or special order in writing, delegate to the** Chairperson, any member or officer of the Authority subject to such conditions or limitations, if any, as may be specified in the order, such of its powers and functions (except the power to make regulations under section 95) under this Act as it may deem necessary. **11. Power of Authority.—In all proceedings under this Act before the Authority or the Registrar,—** (a) the Authority or the Registrar, as the case may be, shall have all the powers of a civil court for the purposes of receiving evidence, administering oaths, enforcing the attendance of witnesses, compelling the discovery and production of documents and issuing commissions for the examination of witnesses; (b) the Authority or the Registrar may, subject to any rule made in this behalf under this Act, make such orders as to cost as it considers reasonable and any such order shall be executable as a decree of a civil court. _Registry_ **12. Registry and offices thereof.—(1) The Central Government shall establish, for the purposes of** this Act, a Registry which shall be known as the Plant Varieties Registry. (2) The head office of the Plant Varieties Registry shall be located in the head office of the Authority, and for the purpose of facilitating the registration of varieties, there may be established, at such places, as the Authority may think fit, branch offices of the Registry. (3) The Authority shall appoint a Registrar-General of Plant Varieties who shall be entitled to such salary and allowances and shall be subject to such conditions of service in respect of leave, pension, provident fund and such other matters as may be prescribed. (4) The Authority may appoint such number of Registrars as it thinks necessary for registration of plant varieties under the superintendence and direction of the Registrar-General under this Act and may make regulations with respect to their duties and jurisdiction. (5) The term of office and the conditions of service of the Registrars shall be such as may be provided by regulations. (6) The Authority may, by notification in the Official Gazette, define the territorial limits within which a branch office of the Registry may exercise its functions. (7) There shall be a seal of the Plant Varieties Registry. **13. National Register of Plant Varieties.—(1) For the purposes of this Act, a Register called the** National Register of Plant Varieties shall be kept at the head office of the Registry, wherein shall be entered the names of all the registered plant varieties with the names and addresses of their respective breeders, the right of such breeders in respect of the registered varieties, the particulars of the denomination of each Registered variety, its seed or other propagating material along with specification of salient features thereof and such other matters as may be prescribed. (2) Subject to the superintendence and direction of the Central Government, the Register shall be kept under the control and management of the Authority. (3) There shall be kept at each branch office of the Registry a copy of the Register and such other documents as the Central Government may, by notification in the Official Gazette, direct. CHAPTER III REGISTRATION OF PLANT VARIETIES AND ESSENTIALLY DERIVED VARIETY _Application for registration_ **14. Application for registration.—Any person specified in section 16 may make an application to** the Registrar for registration of any variety— (a) of such genera and species as specified under sub-section (2) of section 29; or 10 ----- (b) which is an extant variety; or (c) which is a farmers’ variety. **15. Registrable varieties.—(1) A new variety shall be registered under this Act if it conforms to the** criteria of novelty, distinctiveness, uniformity and stability. (2) Notwithstanding anything contained in sub-section (1), an extant variety shall be registered under this Act within a specified period if it conforms to such criteria of distinctiveness, uniformity and stability as shall be specified under the regulations. (3) For the purposes of sub-sections (1) and (2), as the case may be, a new variety shall be deemed to be— (a) novel, if, at the date of filing of the application for registration for protection, the propagating or harvested material of such variety has not been sold or otherwise disposed of by or with the consent of its breeder or his successor for the purposes of exploitation of such variety— (i) in India, earlier than one year; or (ii) outside India, in the case of trees or vines earlier than six years, or in any other case, earlier than four years, before the date of filing such application: Provided that a trial of a new variety which has not been sold or otherwise disposed of shall not affect the right to protection: Provided further that the fact that on the date of filing the application for registration, the propagating or harvested material of such variety has become a matter of common knowledge other than through the aforesaid manner shall not affect the criteria of novelty for such variety; (b) distinct, if it is clearly distinguishable by at least one essential characteristic from any another variety whose existence is a matter of common knowledge in any country at the time of filing of the application. _Explanation.—For the removal of doubts, it is hereby declared that the filing of an application for_ the granting of a breeder’s right to a new variety or for entering such variety in the official register of varieties in any convention country shall be deemed to render that variety a matter of common knowledge from the date of the application in case the application leads to the granting of the breeder's right or to the entry of such variety in such official register, as the case may be; (c) uniform, if subject to the variation that may be expected from the particular features of its propagation it is sufficiently uniform in its essential characteristics; (d) stable, if its essential characteristics remain unchanged after repeated propagation or, in the case of a particular cycle of propagation, at the end of each such cycle. (4) A new variety shall not be registered under this Act if the denomination given to such variety— (i) is not capable of identifying such variety; or (ii) consists solely of figures; or (iii) is liable to mislead or to cause confusion concerning the characteristics, value identity of such variety or the identity of breeder of such variety; or (iv) is not different from every denomination which designates a variety of the same botanical species or of a closely related species registered under this Act; or (v) is likely to deceive the public or cause confusion in the public regarding the identity of such variety; or (vi) is likely to hurt the religious sentiments respectively of any class or section of the citizens of India; or 11 ----- (vii) is prohibited for use as a name or emblem for any of the purposes mentioned in section 3 of the Emblems and Names (Prevention of Improper Use) Act, 1950 (12 of 1950); or (viii) is comprised of solely or partly of geographical name: Provided that the registrar may register a variety, the denomination of which comprises solely or partly of a geographical name, if he considers that the use of such denomination in respect of such variety is an honest use under the circumstances of the case. **16. Persons who may make application.—(1) An application for registration under section 14 shall** be made by— (a) any person claiming to be the breeder of the variety; or (b) any successor of the breeder of the variety; or (c) any person being the assignee of the breeder of the variety in respect of the right to make such application; or (d) any farmer or group of farmers or community of farmers claiming to be the breeder of the variety; or (e) any person authorised in the prescribed manner by a person specified under clauses (a) to (d) to make application on his behalf; or (f) any university or publicly funded agricultural institution claiming to be the breeder of the variety. (2) An application under sub-section (1) may be made by any of the persons referred to therein individually or jointly with any other person. **17. Compulsory variety denomination.—(1) Every applicant shall assign a single and distinct** denomination to a variety with respect to which he is seeking registration under this Act in accordance with the regulations. (2) The Authority shall, having regard to the provisions of any international convention or treaty to which India has become a party, make regulations governing the assignment of denomination to a variety. (3) Where the denomination assigned to the variety does not satisfy the requirements specified in the regulations, the Registrar may require the applicant to propose another denomination within such time as may be specified by such regulations. (4) Notwithstanding anything contained in the Trade Marks Act, 1999 (47 of 1999), a denomination assigned to a variety shall not be registered as a trade mark under that Act. **18. Form of application.—(1) Every application for registration under section 14 shall—** (a) be with respect to a variety; (b) state the denomination assigned to such variety by the applicant; (c) be accompanied by an affidavit sworn by the applicant that such variety does not contain any gene or gene sequence involving terminator technology; (d) be in such form as may be specified by regulations; (e) contain a complete passport data of the parental lines from which the variety has been derived along with the geographical location in India from where the genetic material has been taken and all such information relating to the contribution, if any, of any farmer, village community, institution or organisation in breeding, evolving or developing the variety; (f) be accompanied by a statement containing a brief description of the variety bringing out its characteristics of novelty, distinctiveness, uniformity and stability as required for registration; (g) be accompanied by such fees as may be prescribed; (h) contain a declaration that the genetic material or parental material acquired for breeding, evolving or developing the variety has been lawfully acquired; and (i) be accompanied by such other particulars as may be prescribed: 12 ----- Provided that in case where the application is for the registration of farmers’ variety, nothing contained in clauses (b) to (i) shall apply in respect of the application and the application shall be in such form as may be prescribed. (2) Every application referred to in sub-section (1) shall be filed in the office of the Registrar. (3) Where such application is made by virtue of a succession or an assignment of the right to apply for registration, there shall be furnished at the time of making the application, or within such period after making the application as may be prescribed, a proof of the right to make the application. **19. Test to be conducted.—(1) Every applicant shall, along with the application for registration** made under this Act, make available to the Registrar such quantity of seed of a variety for registration of which such application is made, for the purpose of conducting tests to evaluate whether seed of such variety along with parental material conform to the standards as may be specified by regulations: Provided that the Registrar or any person or test centre to whom such seed has been sent for conducting test shall keep such seed during his or its possession in such manner and in such condition that its viability and quality shall remain unaltered. (2) The applicant shall deposit such fees as may be prescribed for conducting tests referred to in sub-section (1). (3) The tests referred to in sub-section (1) shall be conducted in such manner and by such method as may be prescribed. **20. Acceptance of application or amendment thereof.—(1) On receipt of an application under** section 14, the Registrar may, after making such inquiry as he thinks fit with respect to the particulars contained in such application, accept the application absolutely or subject to such conditions or limitations as he deems fit. (2) Where the Registrar is satisfied that the application does not comply with the requirements of this Act or any rules or regulations made thereunder, he may, either— (a) require the applicant to amend the application to his satisfaction; or (b) reject the application: Provided that no application shall be rejected unless the applicant has been given a reasonable opportunity of presenting his case. **21. Advertisement of application.—(1) Where an application for registration of a variety has been** accepted absolutely or subject to conditions or limitations under sub-section (1) of section 20, the Registrar shall, as soon as after its acceptance, cause such application together with the conditions or limitations, if any, subject to which it has been accepted and the specifications of the variety for registration of which such application is made including its photographs or drawings, to be advertised in the prescribed manner calling objections from the persons interested in the matter. (2) Any person may, within three months from the date of the advertisement of an application for registration on payment of the prescribed fees, give notice in writing in the prescribed manner, to the Registrar of his opposition to the registration. (3) Opposition to the registration under sub-section (2) may be made on any of the following grounds, namely:— (a) that the person opposing the application is entitled to the breeder’s right as against the applicant; or (b) that the variety is not registrable under this Act; or (c) that the grant of certificate of registration may not be in public interest; or (d) that the variety may have adverse effect on the environment. (4) The Registrar shall serve a copy of the notice of opposition on the applicant for registration and, within two months from the receipt by the applicant of such copy of the notice of opposition, the 13 ----- applicant shall send to the Registrar in the prescribed manner a counter-statement of the grounds on which he relies for his application, and if he does not do so, he shall be deemed to have abandoned his application. (5) If the applicant sends such counter-statement, the Registrar shall serve a copy thereof on the person giving notice of opposition. (6) Any evidence upon which the opponent and the applicant may rely shall be submitted, in the manner prescribed and within the time prescribed, to the Registrar and the Registrar shall give an opportunity to them to be heard, if so desired. (7) The Registrar shall, after hearing the parties, if so required, and considering the evidence, decide whether and subject to what conditions or limitations, if any, the registration is to be permitted and may take into account a ground of objection whether relied upon by the opponent or not. (8) Where a person giving notice of opposition or an applicant sending a counter-statement after receipt of a copy of such notice neither resides nor carries on business in India, the Registrar may require him to give security for the cost of proceedings before him and in default of such security being duly given may treat the opposition or application, as the case may be, as abandoned. (9) The Registrar may, on request, permit correction of any error in, or any amendment of, a notice of opposition or a counter-statement on such terms as he may think fit. **22. Registrar to consider grounds of opposition.—The Registrar shall consider all the grounds on** which the application has been opposed and after giving reasons for his decision, by order, uphold or reject the opposition. _Registration of essentially derived variety_ **23. Registration of essentially derived variety.—(1) An application for the registration of an** essentially derived variety of the genera or species specified under sub-section (2) of section 29 by the Central Government shall be made to the Registrar by or on behalf of any person referred to in section 14 and in the manner specified in section 18 as if for the word “variety”, the words “essentially derived variety” have been substituted therein and shall be accompanied by such documents and fees as may be prescribed. (2) When the Registrar is satisfied that the requirements of sub-section (1) have been complied with to his satisfaction, he shall forward the application with his report and all the relevant document to the Authority. (3) On receipt of an application under sub-section (2), the Authority shall get examined such essentially derived variety to determine as to whether the essentially derived variety is a variety derived from the initial variety by conducting such tests and following such procedure as may be prescribed. (4) When the Authority is satisfied on the report of the test referred to in sub-section (3) that the essentially derived variety has been derived from the initial variety, it may direct the Registrar to register such essentially derived variety and the Registrar shall comply with the direction of the Authority. (5) Where the Authority is not satisfied on the report of the test referred to in sub-section (3) that the essentially derived variety has been derived from the initial variety it shall refuse the application. (6) The rights of the breeder of a variety contained in section 28 shall apply to the breeder of essentially derived variety: Provided that the authorisation by the breeder of the initial variety to the breeder of essentially derived variety under sub-section (2) of section 28 may be subject to such terms and conditions as both the parties may mutually agree upon. (7) An essentially derived variety shall not be registered under this section unless it satisfies the requirements of section 15 as if for the word “variety”, the words “essentially derived variety” have been substituted therein. (8) When an essentially derived variety has been registered by the Registrar in compliance with the direction of the Authority under sub-section (4), the Registrar shall issue to the applicant a certificate of 14 ----- registration in the prescribed form and sealed with the seal of the Registry and send a copy thereof to the Authority and to such other authority, as may be prescribed, for information. CHAPTER IV DURATION AND EFFECT OF REGISTRATION AND BENEFIT SHARING **24. Issue of certificate of registration.—(1) When an application for registration of a variety (other** than an essentially derived variety) has been accepted and either— (a) the application has not been opposed and the time of notice of opposition has expired; or (b) the application has been opposed and the opposition has been rejected, the Registrar shall register the variety. (2) On the registration of the variety (other than an essentially derived variety), the Registrar shall issue to the applicant a certificate of registration in the prescribed form and sealed with the seal of the Registry and send a copy thereof to the Authority for determination of benefit sharing and to such other authority, as may be prescribed, for information. The maximum time required by the Registrar for issuing the certificate of registration from the date of filing of the application for registration of a variety shall be such as may be prescribed. (3) Where registration of a variety (other than an essentially derived variety), is not completed within twelve months from the date of the application by reason of default on the part of the applicant, the Registrar may, after giving notice to the applicant in the prescribed manner, treat the application as abandoned unless it is completed within the time specified in that behalf in the notice. (4) The Registrar may amend the register or a certificate of registration for the purpose of correcting a clerical error or an obvious mistake. (5) The Registrar shall have power to issue such directions to protect the interests of a breeder against any abusive act committed by any third party during the period between filing of application for registration and decision taken by the Authority on such application. (6) The certificate of registration issued under this section or sub-section (8) of section 23 shall be valid for nine years in the case of trees and vines and six years in the case of other crops and may be reviewed and renewed for the remaining period on payment of such fees as may be fixed by the rules made in this behalf subject to the condition that the total period of validity shall not exceed,— (i) in the case of trees and vines, eighteen years from the date of registration of the variety; (ii) in the case of extant variety, fifteen years from the date of the notification of that variety by the Central Government under section 5 of the Seeds Act, 1966 (54 of 1966); and (iii) in other cases, fifteen years from the date of registration of the variety. **25. Publication of list of varieties.—The Authority shall, within such intervals as it thinks** appropriate, publish the list of varieties which have been registered during that interval. **26. Determination of benefit sharing by Authority.—(1) On receipt of copy of the certificate of** registration under sub-section (8) of section 23 or sub-section (2) of section 24, the Authority shall publish such contents of the certificate and invite claims of benefit sharing to the variety registered under such certificate in the manner as may be prescribed. (2) On invitation of the claims under sub-section (1), any person or group of persons or firm or governmental or non-governmental organisation shall submit its claim of benefit sharing to such variety in the prescribed form within such period, and accompanied with such fees, as may be prescribed: Provided that such claim shall only be submitted by any— (i) person or group of persons, if such person or every person constituting such group is a citizen of India; or 15 ----- (ii) firm or governmental or non-governmental organisation, if such firm or organisation is formed or established in India. (3) On receiving a claim under sub-section (2), the Authority shall send a copy of such claim to the breeder of the variety registered under such certificate and the breeder may, on receipt of such copy, submit his opposition to such claim within such period and in such manner as may be prescribed. (4) The Authority shall, after giving an opportunity of being heard to the parties, dispose of the claim received under sub-section (2). (5) While disposing of the claim under sub-section (4), the Authority shall explicitly indicate in its order the amount of the benefit sharing, if any, for which the claimant shall be entitled and shall take into consideration the following matters, namely:— (a) the extent and nature of the use of genetic material of the claimant in the development of the variety relating to which the benefit sharing has been claimed; (b) the commercial utility and demand in the market of the variety relating to which the benefit sharing has been claimed. (6) The amount of benefit sharing to a variety determined under this section shall be deposited by the breeder of such variety in the manner referred to in clause (a) of sub-section (1) of section 45 in the National Gene Fund. (7) The amount of benefit sharing determined under this section shall, on a reference made by the Authority in the prescribed manner, be recoverable as an arrear of land revenue by the District Magistrate within whose local limits of jurisdiction the breeder liable for such benefit sharing resides. **27. Breeder to deposit seeds or propagating material.—(1) The breeder shall be required to deposit** such quantity of seeds or propagating material including parental line seeds of registered variety in the National Gene Bank as may be specified in the regulations for reproduction purpose at the breeder's expense within such time as may be specified in that regulation. (2) The seeds or propagating material or parental line seeds to be deposited under sub-section (1) shall be deposited to the National Gene Bank specified by the Authority. **28. Registration to confer right.—(1) Subject to the other provisions of this Act, a certificate of** registration for a variety issued under this Act shall confer an exclusive right on the breeder or his successor, his agent or licensee, to produce, sell, market, distribute, import or export the variety: Provided that in the case of an extant variety, unless a breeder or his successor establishes his right, the Central Government, and in cases where such extant variety is notified for a State or for any area thereof under section 5 of the Seeds Act, 1966 (54 of 1966), the State Government, shall be deemed to be the owner of such right. (2) A breeder may authorise any person to produce, sell, market or otherwise deal with the variety registered under this Act subject to such limitations and conditions as may be specified by regulations. (3) Every authorisation under this section shall be in such form as may be specified by regulations. (4) Where an agent or a licensee referred to in sub-section (1) becomes entitled to produce, sell, market, distribute, import or export a variety, he shall apply in the prescribed manner and with the prescribed fees to the Registrar to register his title and the Registrar shall, on receipt of application and on proof of title to his satisfaction, register him as an agent or a licensee, as the case may be, in respect of the variety for which he is entitled for such right, and shall cause particulars of such entitlement and conditions or restrictions, if any, subject to which such entitlement is made, to be entered in the Register: Provided that when the validity of such entitlement is in dispute between the parties, the Registrar may refuse to register the entitlement and refer the matter in the prescribed manner to the Authority and withhold the registration of such entitlement until the right of the parties in dispute so referred to has been determined by the Authority. (5) The Registrar shall issue a certificate of registration under sub-section (4) to the applicant after such registration and shall enter in the certificate the brief conditions of entitlement, if any, in the 16 ----- prescribed manner, and such certificate shall be the conclusive proof of such entitlement and the conditions or restrictions thereof, if any. (6) Subject to any agreement subsisting between the parties, an agent or licensee of a right to a variety registered under sub-section (4) shall be entitled to call upon the breeder or his successor thereof to take proceedings to prevent infringement thereof, and if the breeder or his successor refuses or neglects to do so within three months after being so called upon, such registered agent or licensee may institute proceedings for infringement in his own name as if he were the breeder, making the breeder or his successor a defendant. (7) Notwithstanding anything contained in any other law, a breeder or his successor so added as defendant shall not be liable for any costs unless he enters an appearance and takes part in the proceedings. (8) Nothing in this section shall confer on a registered agent or registered licensee of a variety any right to transfer such right further thereof. (9) Without prejudice to the registration under sub-section (4), the terms of registration— (a) may be varied by the Registrar as regards the variety in respect of which, or any condition or restriction subject to which, it has effect on receipt of an application in the prescribed manner of the registered breeder of such variety or his successor; (b) may be cancelled by the Registrar on the application in the prescribed manner of the registered breeder of such variety or his successor or of the registered agent or registered licensee of such variety; (c) may be cancelled by the Registrar on the application in the prescribed manner of any person other than the breeder, his successor, the registered agent or the registered licensee on any of the following grounds, namely:— (i) that the breeder of a variety or his successor or the registered agent or registered licensee of such variety, misrepresented, or failed to disclose, some fact material to the application for registration under sub-section (4) which if accurately represented or disclosed would have justified the refusal of the application for registration of the registered agent or registered licensee; (ii) that the registration ought not to have been effected having regard to the right vested in the applicant by virtue of a contract in the performance of which he is interested; (d) may be cancelled by the Registrar on the application in the prescribed manner of the breeder of a registered variety or his successor on the ground that any stipulation in the agreement between the registered agent or the registered licensee, as the case may be, and such breeder or his successor regarding the variety for which such agent or licensee is registered is not being enforced or is not being complied with; (e) may be cancelled by the registrar on the application of any person in the prescribed manner on the ground that the variety relating to the registration is no longer existing. (10) The registrar shall issue notice in the prescribed manner of' every application under this section to the registered breeder of a variety or his successor and to each registered agent or registered licensee (not being the applicant) of such variety. (11) The Registrar shall, before making any order under sub-section (9), forward the application made in that behalf along with any objection received by any party after notice under sub-section (10) for the consideration of the Authority, and the Authority may, after making such inquiry as it thinks fit, issue such directions to the Registrar as it thinks fit and the Registrar shall dispose of the application in accordance with such directions. **29. Exclusion of certain varieties.—(1) Notwithstanding anything contained in this Act,** no registration of a variety shall be made under this Act in cases where prevention of commercial exploitation of such variety is necessary to protect public order or public morality or human, animal and plant life and health or to avoid serious prejudice to the environment. 17 ----- (2) The Central Government shall, by notification in the Official Gazette, specify the genera or species for the purposes of registration of varieties other than extant varieties and farmers’ varieties under this Act. (3) Notwithstanding anything contained under sub-section (2) and sub-sections (1) and (2) of section 15, no variety of any genera or species which involves any technology which is injurious to the life or health of human beings, animals or plants shall be registered under this Act. _Explanation.—For the purposes of this sub-section, the expression “any technology” includes genetic_ use restriction technology and terminator technology. (4) The Central Government shall not delete any genera or species from the list of genera or species specified in a notification issued under sub-section (2) except in the public interest. (5) Any variety belonging to the genera or species excluded under sub-section (4) shall not be eligible for any protection under this Act. **30. Researcher’s rights.—Nothing contained in this Act shall prevent—** (a) the use of any variety registered under this Act by any person using such variety for conducting experiment or research; or (b) the use of a variety by any person as an initial source of variety for the purpose of creating other varieties: Provided that the authorisation of the breeder of a registered variety is required where the repeated use of such variety as a parental line is necessary for commercial production of such other newly developed variety. **31. Special provisions relating to application for registration from citizens of convention** **countries.—(1) With a view to the fulfilment of a treaty, convention or arrangement with any country** outside India which affords to citizens of India similar privileges as granted to its own citizens, the Central Government may, by notification in the Official Gazette, declare such country to be a convention country for the purposes of this Act. (2) Where a person has made an application for the granting of a breeder's right to a variety or for entering such variety in the official register of varieties in a convention country and that person, or any person entitled to make application on his behalf under section 14 or section 23, makes an application for the registration of such variety in India within twelve months after the date on which the application was made in the convention country, such variety shall, if registered under this Act, be registered as of the date on which the application was made in the convention country and that date shall be deemed for the purposes of this Act to be the date of registration. (3) Where applications have been made for granting of a breeder's right to a variety, or for entering such variety in the official register of varieties in two or more convention countries, the period of twelve months referred to in sub-section (2) shall be reckoned from the date on which the earlier or earliest of those applications were made. (4) Nothing in this Act shall entitle the breeder of a registered variety for infringement of rights other than protected under this Act which took place prior to the date of application of registration under this Act. **32. Provisions as to reciprocity.—Where any country declared by the Central Government in this** behalf by notification in the Official Gazette under sub-section (1) of section 31 does not accord to citizens of India the same rights in respect of the registration and protection of a variety, as it accords to its own nationals, no national of such country shall be entitled, either solely or jointly with any other person, to apply for the registration of a variety or be entitled to get a variety registered under this Act. 18 ----- CHAPTER V SURRENDER AND REVOCATION OF CERTIFICATE AND RECTIFICATION AND CORRECTION OF REGISTER **33. Surrender of certificate of registration.—(1) A breeder of a variety registered under this Act** may, at any time by giving notice in the prescribed manner to the Registrar, offer to surrender his certificate of registration. (2) Where such an offer is made, the Registrar shall notify in the prescribed manner every registered agent or registered licensee relating to such certificate. (3) Any of such agent or licensee may, within the prescribed period after such notification, give notice to the Registrar of his opposition to the surrender and where any such notice is given, the Registrar shall intimate the contents of such notice to the breeder of such variety. (4) If the Registrar is satisfied after hearing the applicant and all the opponents, if desirous of being heard, that the certificate of registration may properly be surrendered, he may accept the offer and by order revoke the certificate of registration. **34. Revocation of protection on certain grounds.—Subject to the provisions contained in this Act,** the protection granted to a breeder in respect of a variety may, on the application in the prescribed manner of any person interested, be revoked by the Authority on any of the following grounds, namely:— (a) that the grant of the certificate of registration has been based on incorrect information furnished by the applicant; (b) that the certificate of registration has been granted to a person who is not eligible for protection under this Act; (c) that the breeder did not provide the Registrar with such information, documents or material as required for registration under this Act; (d) that the breeder has failed to provide an alternative denomination of the variety which is the subject matter of the registration to the Registrar in case where the earlier denomination of such variety provided to the Registrar is not permissible for registration under this Act; (e) that the breeder did not provide the necessary seeds or propagating material to the person to whom compulsory licence has been issued under section 47 regarding the variety in respect of which registration certificate has been issued to such breeder; (f) that the breeder has not complied with the provisions of this Act or rules or regulations made thereunder; (g) that the breeder has failed to comply with the directions of the Authority issued under this Act; (h) that the grant of the certificate of registration is not in the public interest: Provided that no such protection shall be revoked unless the breeder is given a reasonable opportunity to file objection and of being heard in the matter. **35. Payment of annual fees and forfeiture of registration in default thereof.—(1) The Authority** may, with the prior approval of the Central Government, by notification in the Official Gazette, impose a fee to be paid annually, by every breeder of a variety, agent and licensee thereof registered under this Act determined on the basis of benefit or royalty gained by such breeder, agent or licensee, as the case may be, in respect of the variety, for the retention of their registration under this Act. (2) If any breeder, agent or licensee fails to deposit the fees referred to in sub-section (1) imposed upon him under that sub-section in the prescribed manner up to two consecutive years, the Authority shall issue notice to such breeder, agent or licensee and on service of such notice if he fails to comply with the direction in the notice, the Authority shall declare all the protection admissible under the registration certificate issued to such breeder or agent or licensee forfeited. (3) The arrears of fee imposed under sub-section (1) shall be deemed to be the arrears of land revenue and shall be recoverable accordingly. 19 ----- **36. Power to cancel or change registration and to rectify the Register.—(1) On an application** made in the prescribed manner to the Registrar by any person aggrieved, the Registrar may make such order as he may think fit for cancelling or changing any certificate of registration issued under this Act on the ground of any contravention of the provisions of this Act or failure to observe a condition subject to which such registration certificate is issued. (2) Any person aggrieved by the absence or omission from the Register of any entry, or by any entry made in the Register without sufficient cause, or by any entry wrongly remaining on the Register, may apply in the prescribed manner to the Registrar and the Registrar may make such order for making, expunging or varying the entry as he may think fit. (3) The Registrar may, in any proceeding under this section, decide any question that may be necessary or expedient to decide in connection with the rectification of the Register. (4) The Registrar on his own motion may, after giving notice in the prescribed manner to the parties concerned and after giving them an opportunity of being heard, make any order referred to in sub-section (1) or sub-section (2). **37. Correction of Register.—(1) The Registrar may, on an application in the prescribed manner by** the breeder of a variety registered under this Act,— (a) correct any error in the Register in the name, address or description of such breeder or any other entry relating to such variety; (b) enter in the Register any change in the name, address or description of such breeder; (c) cancel the entry in the Register of the variety in respect of which such application is made; and may make any consequential amendment or alteration in the certificate of registration and for that purpose require the certificate of registration to be produced to him. (2) The Registrar may, on application made in the prescribed manner by a registered agent or a registered licensee of a variety and after notice to the registered breeder of such variety, correct any error, or enter any change, in the name, address or description of such registered agent or registered licensee, as the case may be, in the Register or certificate of registration issued under this Act. **38. Alteration of denomination of a registered variety.—(1) The breeder of a variety registered** under this Act may apply in the prescribed manner to the Registrar to delete any part or to add to or alter the denomination of such variety in any manner not substantially affecting the identity thereof, and the Registrar may refuse leave or may grant it on such terms and subject to such limitations as he may think fit to avoid any conflict with the rights of other breeders of the varieties registered under this Act. (2) The Registrar may cause an application under this section to be advertised in the prescribed manner in any case where it appears to him that it is expedient so to do, and where he does so, if within the prescribed time from the date of the advertisement any person gives notice to the Registrar in the prescribed manner of opposition to the application, the Registrar shall, after hearing the parties if so required, decide the matter. (3) Where leave is granted under this section, the denomination of the variety as altered shall be advertised in the prescribed manner, unless the application has already been advertised under sub-section (2). CHAPTER VI FARMERS’ RIGHTS **39. Farmers’ rights.—(1) Notwithstanding anything contained in this Act,—** (i) a farmer who has bred or developed a new variety shall be entitled for registration and other protection in like manner as a breeder of a variety under this Act; (ii) the farmers’ variety shall be entitled for registration if the application contains declaration as specified in clause (h) of sub-section (1) of section 18; 20 ----- (iii) a farmer who is engaged in the conservation of genetic resources of land races and wild relatives of economic plants and their improvement through selection and preservation shall be entitled in the prescribed manner for recognition and reward from the Gene Fund: Provided that material so selected and preserved has been used as donors of genes in varieties registrable under this Act; (iv) a farmer shall be deemed to be entitled to save, use, sow, resow, exchange, share or sell his farm produce including seed of a variety protected under this Act in the same manner as he was entitled before the coming into force of this Act: Provided that the farmer shall not be entitled to sell branded seed of a variety protected under this Act. _Explanation.—For the purpose of clause (iv), “branded seed” means any seed put in a package or any_ other container and labelled in a manner indicating that such seed is of a variety protected under this Act. (2) Where any propagating material of a variety registered under this Act has been sold to a farmer or a group of farmers or any organisation of farmers, the breeder of such variety shall disclose to the farmer or the group of farmers or the organisation of farmers, as the case may be, the expected performance under given conditions, and if such propagating material fails to provide such performance under such given conditions, the farmer or the group of farmers or the organisation of farmers, as the case may be, may claim compensation in the prescribed manner before the Authority and the Authority, after giving notice to the breeder of the variety and after providing him an opportunity to file opposition in the prescribed manner and after hearing the parties, may direct the breeder of the variety to pay such compensation as it deems fit, to the farmer or the group of farmers or the organisation of farmers, as the case may be. **40. Certain information to be given in application registration.—(1) A breeder or other person** making application for registration of any variety under Chapter III shall disclose in the application the information regarding the use of genetic material conserved by any tribal or rural families in the breeding or development of such variety. (2) If the breeder or such other person fails to disclose any information under sub-section (1), the Registrar may, after being satisfied that the breeder or such person has wilfully and knowingly concealed such information, reject the application for registration. **41. Rights of communities.—(1) Any person or group of persons (whether actively engaged in** farming or not) or any governmental or non-governmental organisation may, on behalf of any village or local community in India, file in any centre notified, with the previous approval of the Central Government, by the Authority, in the Official Gazette, any claim attributable to the contribution of the people of that village or local community, as the case may be, in the evolution of any variety for the purpose of staking a claim on behalf of such village or local community. (2) Where any claim is made under sub-section (1), the centre notified under that sub-section may verify the claim made by such person or group of persons or such governmental or non-governmental organisation in such manner as it deems fit, and if it is satisfied that such village or local community has contributed significantly to the evolution of the variety which has been registered under this Act, it shall report its findings to the Authority. (3) When the Authority, on a report under sub-section (2) is satisfied, after such inquiry as it may deem fit, that the variety with which the report is related has been registered under the provisions of this Act, it may issue notice in the prescribed manner to the breeder of that variety and after providing opportunity to such breeder to file objection in the prescribed manner and of being heard, it may subject to any limit notified by the Central Government, by order, grant such sum of compensation to be paid to a person or group of persons or governmental or non-governmental organisation which has made claim under sub-section (1), as it may deem fit. (4) Any compensation granted under sub-section (3) shall be deposited by the breeder of the variety in the Gene Fund. (5) The compensation granted under sub-section (3) shall be deemed to be an arrear of land revenue and shall be recoverable by the Authority accordingly. 21 ----- **42. Protection of innocent infringement.—Notwithstanding anything contained in this Act,—** (i) a right established under this Act shall not be deemed to be infringed by a farmer who at the time of such infringement was not aware of the existence of such right; and (ii) a relief which a court may grant in any suit for infringement referred to in section 65 shall not be granted by such court, nor any cognizance of any offence under this Act shall be taken, for such infringement by any court against a farmer who proves, before such court, that at the time of the infringement he was not aware of the existence of the right so infringed. **43. Authorisation of farmers’ variety.—Notwithstanding anything contained in sub-section (6) of** section 23 and section 28, where an essentially derived variety is derived from a farmers’ variety, the authorisation under sub-section (2) of section 28 shall not be given by the breeder of such farmers’ variety except with the consent of the farmers or group of farmers or community of farmers who have made contribution in the preservation or development of such variety. **44. Exemption from fees.—A farmer or group of farmers or village community shall not be liable to** pay any fees in any proceeding before the Authority or Registrar [1]*** or the High Court under this Act or the rules made thereunder. _Explanation.—For the purposes of this section, “fees in any proceeding” includes any fees payable_ for inspection of any document or for obtaining a copy of any decision or order or document under this Act or the rules made thereunder. **45. Gene Fund.—(1) The Central Government shall constitute a Fund to be called the National Gene** Fund and there shall be credited thereto— (a) the benefit sharing received in the prescribed manner from the breeder of a variety or an essentially derived variety registered under this Act, or propagating material of such variety or essentially derived variety, as the case may be; (b) the annual fee payable to the Authority by way of royalty under sub-section (1) of section 35; (c) the compensation deposited in the Gene Fund under sub-section (4) of section 41; (d) the contribution from any national and international organisation and other sources. (2) The Gene Fund shall, in the prescribed manner, be applied for meeting— (a) any amount to be paid by way of benefit sharing under sub-section (5) of section 26; (b) the compensation payable under sub-section (3) of section 41; (c) the expenditure for supporting the conservation and sustainable use of genetic resources including _in-situ and_ _ex-situ collections and for strengthening the capability of the Panchayat in_ carrying out such conservation and sustainable use; (d) the expenditure of the schemes relating to benefit sharing framed under section 46. **46. Framing of schemes, etc.—(1) The Central Government shall, for the purposes of section 41 and** clause (d) of sub-section (2) of section 45, frame, by notification in the Official Gazette, one or more schemes. (2) In particular, and without prejudice to the generality of the provisions of sub-section (1), the scheme may provide for all or any of the following matters, namely:— (a) the registration of the claims for the purposes of section 41 under the scheme and all matters connected with such registration; (b) the processing of such claims for securing their enforcement and matters connected therewith; (c) the maintenance of records and Registers in respect of such claims; (d) the utilisation, by way of disbursal (including apportionment) or otherwise, of any amounts received in satisfaction of such claims; 1. The words “or the Tribunal” omitted by Act 33 of 2021, s. 23 (w.e.f. 4-4-2021). 22 ----- (e) the procedure for disbursal or apportionment by the Authority in the event of dispute regarding such claims; (f) the utilisation of benefit sharing for the purposes relating to breeding, discovery or development of varieties; (g) the maintenance and audit of accounts with respect to the amounts referred to in clause (d). CHAPTER VII COMPULSORY LICENCE **47. Power of Authority to make order for compulsory licence in certain circumstances.—(1) At** any time, after the expiry of three years from the date of issue of a certificate of registration of a variety, any person interested may make an application to the Authority alleging that the reasonable requirements of the public for seed or other propagating material of the variety have not been satisfied or that the seed or other propagating material of the variety is not available to the public at a reasonable price and pray for the grant of a compulsory licence to undertake production, distribution and sale of the seed or other propagating material of that variety. (2) Every application under sub-section (1) shall contain a statement of the nature of the applicant’s interest together with such particulars as may be prescribed and the facts upon which the application is based. (3) The Authority, after consultation with the Central Government, and if satisfied after giving an opportunity to the breeder of such variety to file opposition and after hearing the parties, on the issue that the reasonable requirements of the public with respect to the variety have not been satisfied or that the seed or other propagating material of the variety is not available to the public at a reasonable price, may order such breeder to grant a licence to the applicant upon such terms and conditions as it may deem fit and send a copy of such order to the Registrar to register the title of such applicant as licensee under sub-section (4) of section 28 on payment of such fees by the applicant as is referred to in that sub-section. **48. When requirement of public deemed to have not been satisfied.—In determining the question** as to whether the reasonable requirements of the public for seeds of a variety or its propagating material as referred to in sub-section (1) or sub-section (3) of section 47, the Authority shall take into account— (i) the nature of the variety, the time which has elapsed since the grant of the certificate of registration of the variety, price of the seed of the variety and the measures taken by the breeder or any registered licensee of the variety to meet the requirement of the public; and (ii) the capacity, ability and technical competence of the applicant to produce and market the variety to meet the requirement of the public. **49. Adjournment of application for grant of compulsory licence.—(1) If the breeder of a variety** registered under this Act in respect of which any application has been pending before the Authority under section 47 makes a written request to the Authority on the ground that due to any reasonable factor, such breeder has been unable to produce seed or other propagating material of the variety on a commercial scale to an adequate extent till the date of making such request, the Authority may, on being satisfied that the said ground is reasonable, adjourn the hearing of such application for such period not exceeding twelve months in aggregate as it may consider sufficient for optimum production of the seed or propagating material of such variety, as the case may be, by such breeder. (2) No adjournment of the application under sub-section (1) shall be granted unless the Authority is satisfied that the breeder of the variety registered under this Act in respect of which such application is made, has taken immediate measures to meet the reasonable requirements of the public for the seed or other propagating material of such variety. **50. Duration of compulsory licence.—The Authority shall determine the duration of the compulsory** licences granted under this Chapter and such duration may vary from case to case keeping in view the gestation periods and other relevant factors but in any case it shall not exceed the total remaining period 23 ----- of the protection of that variety and when a compulsory licence is granted the prescribed authority shall, in the prescribed manner make available to the licensee of such compulsory licence, the reproductive material of the variety relating to such compulsory licence stored in the National Gene Bank or any other centre. **51. Authority to settle terms and conditions of licence.—(1) The Authority shall, while** determining the terms and conditions of a compulsory licence under the provisions of this Chapter, endeavour to secure— (i) reasonable compensation to the breeder of the variety relating to the compulsory licence having regard to the nature of the variety, the expenditure incurred by such breeder in breeding the variety or for developing it, and other relevant factors; (ii) that the compulsory licensee of such variety possesses the adequate means to provide to the farmers, the seeds or other propagating material of such variety, timely and at reasonable market price. (2) No compulsory licence granted by the Authority shall authorise the licensee to import the variety relating to such licence or any seed or other propagating material of such variety from abroad where such import would constitute an infringement of the rights of the breeder of such variety. **52. Revocation of compulsory licence.—(1) The Authority, on its own motion or on application** from an aggrieved person made to it in the prescribed form, if it is satisfied that a compulsory licensee registered under this Chapter has violated any terms or conditions of his licence or it is not appropriate to continue further such licence in public interest, may, after giving such licensee an opportunity to file opposition and of being heard, make order to revoke such licence. (2) When a licence is revoked under sub-section (1) by an order of the Authority, the Authority shall send a copy of such order to the Registrar to rectify the entry or correct the Register relating to such revocation and the Registrar shall rectify the entry or correct the Register accordingly. **53. Modification of compulsory licence.—The Authority may, on its own motion or on application** from licensee of a compulsory licence, after providing the opportunity of being heard to the breeder of the variety registered under this Act relating to such compulsory licence, if it considers, in public interest, so to do, modify, by order, such terms and conditions as it thinks fit and send a copy of such order to the Registrar to correct the entries and Register according to such modification and the Registrar shall ensure such corrections to be made accordingly. CHAPTER VIII 1[APPEALS] **54. [Tribunal.]—Omitted by the Tribunals Reforms Act, 2021 (33 of 2021), s. 23 (w.e.f. 4-4-2021).** **55. [Composition of Tribunal.]—Omitted by s. 23, ibid. (w.e.f. 4-4-2021).** **56. Appeals to** [2][High Court].—(1) An appeal shall be preferred to the [2][High Court] within the prescribed period from any— (a) order or decision of the Authority or Registrar, relating to registration of a variety; or (b) order or decision of the Registrar relating to registration as an agent or a licensee of a variety; or (c) order or decision of the Authority relating to claim for benefit sharing; or (d) order or decision of the Authority regarding revocation of compulsory licence or modification of compulsory licence; or (e) order or decision of the Authority regarding payment of compensation, made under this Act or the rules made thereunder. 1. Subs. by Act 33 of 2021, s. 23, for “PLANT VARIETIES PROTECTION APPELLATE TRIBUNAL” (w.e.f. 4-4-2021). 2. Subs. by s. 23, ibid., for “Tribunal” (w.e.f. 4-4-2021). 24 ----- (2) Every such appeal shall be preferred by a petition in writing and shall be in such form and shall contain such particulars as may be prescribed. 1* - - - **57. Orders of [2][High Court].—(1) The [2][High Court] may, after giving both the parties to the appeal** an opportunity of being heard, pass such orders thereon as it thinks fit. (2) The [2][High Court] may, at any time within thirty days from the date of the order, with a view to rectifying the mistake apparent from the record, amend any order passed by it under sub-section (1), and make such amendment if the mistake is brought to its notice by the appellant or the opposite party. (3) In every appeal, the [2][High Court] may, where it is possible, hear and decide such appeal within a period of one year from the date of filing of the appeal. (4) The [2][High Court] shall send a copy of any order passed under this section to the Registrar. 3* - - - **58. [Procedure of Tribunal].—Omitted by the Tribunals Reforms Act, 2021 (33 of 2021), s. 23 (w.e.f.** 4-4-2021). **59. [Transitional provision].—Omitted by s. 23, ibid. (w.e.f. 4-4-2021).** CHAPTER IX FINANCE, ACCOUNTS AND AUDIT **60. Grants by Central Government.—The Central government may, after due appropriation made** by Parliament by law in this behalf, make to the Authority grants and loans of such sums of money as the Central Government may think fit for being utilised for the purposes of this Act. **61. Authority Fund.—(1) There shall be constituted a fund to be called the Protection of Plant** Varieties Authority Account and there shall be credited thereto— (a) all grants and loans made to the Authority by the Central Government under section 60; (b) all fees received by the Authority and the Registrars except the annual fee determined on the basis of benefit or royalty under sub-section (1) of section 35; (c) all sums received by the Authority from such other sources as may be decided upon by the Central Government. (2) The Protection of Plant Varieties Authority Account shall be applied for meeting— (a) the salaries, allowances and other remuneration of the Chairperson, officers and other employees of the Authority and allowances, if any, payable to the members; (b) the other expenses of the Authority in connection with the discharge of its functions and for purposes of this Act. **62.** **Budget, accounts and audit.—(1) The Authority shall prepare a budget, maintain proper** accounts and other relevant records (including the accounts and other relevant records of the Gene Fund) and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General of India generally has in 1. Sub-section (3) omitted by Act 33 of 2021, s. 23 (w.e.f. 4-4-2021). 2. Subs. by s. 23, ibid., for “Tribunal” (w.e.f. 4-4-2021). 3. Sub-section (5) omitted by s. 23, ibid. (w.e.f. 4-4-2021). 25 ----- connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority. (4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in his behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **63. Financial and administrative powers of the Chairperson.—The Chairperson shall exercise** such financial and administrative powers over the functions of the Authority as may be prescribed: Provided that the Chairperson shall have the authority to delegate such of his financial and administrative powers as he may think fit to a member or any other officer of the Authority subject to the condition that the member or such other officer shall, while exercising such delegated powers, continue to be under the direction, control and supervision of the Chairperson. CHAPTER X INFRINGEMENT, OFFENCES, PENALATIES AND PROCEDURE _Infringement_ **64. Infringement.—Subject to the provisions of this Act, a right established under this Act is** infringed by a person— (a) who, not being the breeder of a variety registered under this Act or a registered agent or a registered licensee of that variety, sells, exports, imports or produces such variety without the permission of its breeder or within the scope of a registered licence or registered agency without permission of the registered licensee or registered agent, as the case may be; (b) who uses, sells, exports, imports or produces any other variety giving such variety, the denomination identical with or deceptively similar to the denomination of a variety registered under this Act in such manner as to cause confusion in the mind or general people in identifying such variety so registered. **65. Suit for infringement, etc.—(1) No suit—** (a) for the infringement of a variety registered under this Act; or (b) relating to any right in a variety registered under this Act, shall be instituted in any court inferior to a District Court having jurisdiction to try the suit. (2) For the purposes of clauses (a) and (b) of sub-section (1), “District Court having jurisdiction” shall mean the District Court within the local limit of whose jurisdiction the cause of action arises. **66. Relief in suits for infringement.—(1) The relief which a court may grant in any suit for** infringement referred to in section 65 includes an injunction and at the option of the plaintiff, either damages or a share of the profits. (2) The order of injunction under sub-section (1) may include an _ex parte injunction or any_ interlocutory order for any of the following matters, namely:— (a) discovery of documents; (b) preserving of infringing variety or documents or other evidence which are related to the subject-matter of the suit; (c) attachment of such property of the defendant which the court deems necessary to recover damages, costs or other pecuniary remedies which may be finally awarded to the plaintiff. **67. Opinion of scientific adviser.—(1) When the court has to form an opinion upon any question of** fact or a scientific issue, such court may appoint an independent scientific adviser to suggest it or to inquire into and report upon the matter to enable it to from the desired opinion. 26 ----- (2) The scientific adviser may be paid such remuneration or expenses as the court may fix. _Offences, penalties and procedure_ **68. Prohibition to apply the denomination of a registered variety.—(1) No person other than the** breeder of a variety registered under this Act or a registered licensee or a registered agent thereof shall use the denomination of that variety in the manner as may be prescribed. (2) A person shall be deemed to apply the denomination of a variety registered under this Act who— (a) applies it to the variety itself; or (b) applies it to any package in or with which the variety is sold, or exposed for sale, or had in possession such package for sale or for any purpose of trade or production; or (c) places, encloses or annexes the variety which is sold, or exposed for sale, or had in possession for sale or for any purpose of trade or production, in or with any package or other thing to which the denomination of such variety registered under this Act has been applied; or (d) uses the denomination of such variety registered under this Act in any manner reasonably likely to lead to the belief that the variety or its propagating material in connection with which it is used is designated or described by that denomination; or (e) in relation to the variety uses such denomination in any advertisement, invoice, catalogue, business letter, business paper, price list or other commercial document and such variety is delivered to a person in pursuance of a request or order made by reference to the denomination as so used. (3) A denomination shall be deemed to be applied to a variety whether it is woven in, impressed on, or otherwise worked into, or annexed or affixed to, such variety or to any package or other thing. **69. Meaning of falsely applying denomination of a registered variety.—(1) A person shall be** deemed to falsely apply the denomination of a variety registered under this Act who, without the assent of the breeder of such variety,— (a) applies such denomination or a deceptively similar denomination to any variety or any package containing such variety; (b) uses any package bearing a denomination which is identical with or deceptively similar to the denomination of such variety registered under this Act, for the purpose of packing, filling or wrapping therein any variety other than such variety registered under this Act. (2) Any denomination of a variety registered under this Act falsely applied as mentioned in sub-section (1), is in this Act referred to as false denomination. (3) In any prosecution for falsely applying a denomination of a variety registered under this Act the burden of proving the assent of the breeder of such variety shall lie on the accused. **70. Penalty for applying false denomination, etc.—(1) Any person who—** (a) applies any false denomination to a variety; or (b) indicates the false name of a country or place or false name and address of the breeder of a variety registered under this Act in the course of trading such variety, shall, unless he proves that he acted, without intend to defraud, be punishable with imprisonment for a term which shall not be less than three months but which may extend to two years, or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both. **71. Penalty for selling varieties to which false denomination is applied, etc.—Any person who** sells, or exposes for sale, or has in his possession for sale or for any purpose of trade or production of any variety to which any false denomination is applied or to which an indication of the country or place in which such variety was made or produced or the name and address of the breeder of such variety registered under this Act has been falsely made, shall, unless he proves— (a) that having taken all reasonable precautions against committing an offence against this section, he had at the time of commission of the alleged offence no reason to suspect the genuineness 27 ----- of the denomination of such variety or that any offence had been committed in respect of indication of the country or place in which such variety registered under this Act, was made or produced or the name and address of the breeder of such variety; (b) that, on demand by or on behalf of the prosecutor, he gave all the information in his possession with respect to the person from whom he obtained such variety; or (c) that otherwise he had acted innocently, be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years, or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both. **72. Penalty for falsely representing a variety as registered.—Whoever makes any representation** with respect to the denomination of a variety or its propagating material or essentially derived variety or its propagating material not being variety or its propagating material or essentially derived variety or its propagating material registered under this Act, to the effect that it is a variety or its propagating material or essentially derived variety or its propagating material registered under this Act or otherwise represents any variety, or its propagating material, or essentially derived variety or its propagating material not registered under this Act to the effect that it is registered under this Act shall be punishable with imprisonment for a term, which shall not be less than six months but which may extend to three years, or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with both. **73. Penalty for subsequent offence.—Whoever, having already been convicted of an offence under** this Act is again convicted of such offence shall be punishable for the second and for every subsequent offence with imprisonment for a term which shall not be less than one year but which may extend to three years, or with fine which shall not be less than two lakh rupees but which may extend to twenty lakh rupees, or with both. **74. No offence in certain cases.—The provisions of this Act relating to offences shall be subject to** the right created as recognised by this Act and no act or omission shall be deemed to be an offence under the provisions of this Act if such act or omission is permissible under this Act. **75. Exemption of certain persons employed in ordinary course of business.—Where a person** accused of an offence under this Act proves that in the ordinary course of his employment, he has acted without any intention to commit the offence and having taken all reasonable precautions against committing the offence charged, he had, at the time of the commission of the alleged offence, no reason to suspect the genuineness of the act so charged as an offence and on demand made by or on behalf of the prosecutor, he gave all the information in his possession with respect to the persons on whose behalf the offence was committed, he shall be acquitted. **76. Procedure where invalidity of registration is pleaded by the accused.—(1) Where the offence** charged under this Act is in relation to a variety or its propagating material or essentially derived variety or its propagating material registered under this Act and the accused pleads that the registration of such variety or its propagating material or essentially derived variety or its propagating material, as the case may be, is invalid and the court is satisfied that such offence is _prima facie_ not tenable, it shall not proceed with the charge but shall adjourn the proceedings for three months from the date on which the plea of the accused is recorded to enable the accused to file an application before the Registrar under this Act for the rectification of the Register on the ground that the registration is invalid. (2) If the accused proves to the court that he has made such application within the time so limited or within such further time as the court for sufficient cause allow, the further proceedings in the prosecution shall stand stayed till the disposal of such application for rectification. (3) If within a period of three months or within such extended time as may be allowed by the court, the accused fails to apply to the Registrar for rectification of the Register, the court shall proceed with the case as if the registration were valid. (4) Where before institution of a complaint of an offence referred to in sub-section (1), any application for the rectification of the Register concerning the registration of the variety or its propagating 28 ----- material or essentially derived variety or its propagating material, as the case may be, in question on the ground of invalidity of such registration has already been properly made to and is pending before the Registrar, the court shall stay the further proceedings in the prosecution pending the disposal of the application aforesaid and shall determine the charge against the accused in conformity with the result of the application for rectification. **77. Offences by companies.—(1) If the person committing an offence under this Act is a company,** the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. CHAPTER XI MISCELLANEOUS **78. Protection of security of India.—Notwithstanding anything contained in this Act, the Authority** or the Registrar shall— (a) not disclose any information relating to the registration of a variety or any application relating to the registration of a variety under this Act, which it considers prejudicial to the interest of the security of India; and (b) take any action regarding the cancellation of registration of such varieties registered under this Act which the Central Government may by notification in the Official Gazette specify in the interest of the security of India. _Explanation.—For the purposes of this section, the expression “security of India” means any action_ necessary for the security of India which relates to the use of any produce of any variety registered under this Act directly or indirectly for the purposes of war or military establishment or for the purposes of war or other emergency in international relations. **79. Implied warranty on sale of registered variety, etc.—Where a denomination of a variety or its** propagating material or essentially derived variety or its propagating material registered under this Act has been applied to the variety or its propagating material or essentially derived variety or its propagating material, as the case may be, on sale or in the contract for sale of such variety or its propagating material or essentially derived variety or its propagating material, as the case may be, the seller shall be deemed to warrant that the denomination is a genuine denomination and not falsely applied, unless the contrary is expressed in writing signed by or on behalf of the seller and delivered at the time of the sale of the variety or its propagating material or essentially derived variety or its propagating material, as the case may be, or contract to and accepted by the buyer. **80. Death of party to a proceeding.—If a person who is a party to a proceeding under this Act (not** being a proceeding in a court) dies pending the proceeding, the Authority or the Registrar, as the case may be, may, on request, and on proof to the satisfaction of such Authority or Registrar, of the transmission of the interest of the deceased person, substitute in the proceedings his successor in interest in his place, or, if the Authority or the Registrar is of opinion that the interest of the deceased person is sufficiently 29 ----- represented by the surviving party, permit the proceedings to continue without the substitution of his successor in interest. **81. Right of registered agent and the registered licensee to institute suit.—The registered agent or** the registered licensee of a variety or its propagating material or essentially derived variety or its propagating material registered under this Act may institute appropriate proceedings in the court under this Act on behalf of the breeder of such variety or its propagating material or essentially derived variety or its propagating material, as the case may be, if such agent or licensee has been authorised in the prescribed manner by such breeder for doing so. **82. Evidence of entry in Register, etc., and things done by the Authority and the Registrar.—(1)** A copy of any entry in the Register, or of any document issued under this Act purporting to be certified by the Authority or the Registrar and sealed with the seal of such Authority or Registrar, as the case may be, shall be admitted in evidence in all courts and in all proceedings without further proof or production of the original. (2) A certificate purporting to be under the hand of the Authority or the Registrar, as the case may be, as to any entry, matter or things that such Authority or Registrar is authorised by this Act or the rules to make or do shall be prima facie evidence of the entry having been made, and of the content thereof, or of the matter or things having been done or not done. **83. Authority, Registrar and other officers not compellable to production of Register, etc.—The** Authority or the Registrar or any officer working under the Authority or the Registrar, as the case may be, shall not, in any legal proceedings, be compelled to produce the Register or any other document in its or his custody, the content of which can be proved by the production of a certified copy issued under this Act in the prescribed manner or to appear as a witness to prove the matter therein recorded unless by order of the court made for special cause. **84. Document open to public inspection.—Any person may, on an application to the Authority or** the Registrar, as the case may be, and on payment of such fees as may be prescribed, obtain a certified copy of any entry in the Register or any other document in any proceedings under this Act pending before such Authority or Registrar or may inspect such entry or document. **85. Report of Authority to be placed before Parliament.—The Central Government shall cause to** be placed before both Houses of Parliament once a year a report regarding the performance of the Authority under this Act. **86. Government to be bound.—The provisions of this Act shall be binding on the Government.** **87. Proceedings before Authority or Registrar.—All proceedings before the Authority or the** Registrar, as the case may be, relating to registration of variety or essentially derived variety, registration of agent, registration of licence or registration of compulsory licensing under this Act shall be deemed to be judicial proceedings within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code (45 of 1860) and the Authority or the Registrar, as the case may be, shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **88. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government, or against the Chairperson, or members, or the Registrar or any person acting under such Government, Authority or Registrar under the provisions of this Act, for anything which is in good faith done or intended to be done in pursuance of this Act or any rule, regulation, scheme or order made thereunder. **89. Bar of jurisdiction.—No civil court shall have jurisdiction in respect of any matter which the** Authority or the Registrar [1]*** is empowered by or under this Act to determine. **90. Members and staff of Authority, etc., to be public servants.—The Chairperson, members,** officers and other employees of the Authority and the Registrar-General and the officers and other 1. The words “or the Tribunal” omitted by Act 33 of 2021, s. 23 (w.e.f. 4-4-2021). 30 ----- employees working under him shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **91. Exemption from tax on wealth and income.—Notwithstanding anything contained in the** Wealth-tax Act, 1957 (27 of 1957), the Income-tax Act, 1961 (43 of 1961), or any other enactment for the time being in force relating to tax on wealth, income, profits or gains, the Authority shall not be liable to pay wealth-tax, income-tax or any other tax in respect of its wealth, income, profits or gains derived. **92. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **93. Power of Central Government to give directions.—The Central Government may give** directions to the Authority as it may think necessary in the public interest for the execution of all or any of the functions of the Authority under any provision of this Act or rules and regulations made thereunder. **94. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under sub-section (1) shall be laid before each House of Parliament. **95. Power to make regulations.—(1) The Authority may, with the previous approval of the Central** Government, by notification in the Official Gazette, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) duties and jurisdiction of the Registrars under sub-section (4) of section 12; (b) the term of office and the conditions of service of the Registrars under sub-section (5) of section 12; (c) the criteria of distinctiveness, uniformity and stability for registration of extant variety under sub-section (2) of section 15; (d) the manner in which a single and distinct denomination to a variety shall be assigned by the applicant under sub-section (1) of section 17; (e) the matters governing the assignment of denomination to a variety under sub-section (2) of section 17; (f) the time within which the Registrar may require the applicant to propose another denomination under sub-section (3) of section 17; (g) the form of application under clause (d) of sub-section (1) of section 18; (h) the standards for evaluating seed during tests under sub-section (1) of section 19; (i) the quantity of seeds or propagating material including parental line seeds to be deposited by a breeder and the time to be specified under sub-section (1) of section 27; (j) the limitations and conditions subject to which a breeder may authorise a person to produce, sell, market or otherwise deal with variety under sub-section (2) of section 28; (k) the form for authorisation under sub-section (3) of section 28. **96. Power of Central Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules to carry out the provisions of this Act. 31 ----- (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (i) the term of office of the Chairperson and the manner of filling the post under sub-section (6) of section 3; (ii) the salary and allowances of the Chairperson and his conditions of service in respect of leave, pension, provident fund and other matters and the allowances for non-official members for attending the meeting under sub-section (8) of section 3; (iii) the time and place of meetings of the Authority and the rules of procedure in regard to the transaction of business at its meetings [including the quorum at its meetings and the transaction of business of its Standing Committee appointed under sub-section (7) of section 3] under sub-section (1) of section 4; (iv) the control and restriction regarding appointment of the officers and other employees of the Authority and the method of such appointment, salary and allowances and other conditions of service under section 6; (v) the powers and duties of the Chairperson under section 7; (vi) the terms and conditions subject to which and the manner in which the measures referred to in sub-section (1) of section 8 may provide for the registration of new extant varieties under clause (a) of sub-section (2) of that section; (vii) the manner for arranging production and sale of the seed under clause (e) of sub-section (2) of section 8; (viii) the orders by the Authority or the Registrar as to costs under clause (b) of section 11; (ix) the salary and allowances of Registrar-General of Plant Varieties and the conditions of service in respect of his leave, pension, provident fund and other matters under sub-section (3) of section 12; (x) the matters to be included in the National Register of Plant Varieties under sub-section (1) of section 13; (xi) the manner of authorising a person under clause (e) of sub-section (1) of section 16; (xii) the fees under clause (g) and the other particulars under clause (i) which shall accompany the application under sub-section (1) of section 18; (xiii) the form of application under the proviso to sub-section (1) of section 18; (xiv) the period within which after making application a proof of the right to make the application is to be furnished under sub-section (3) of section 18; (xv) the fees to be deposited by the applicant under sub-section (2) of section 19; (xvi) the manner and method of conducting the tests under sub-section (3) of section 19; (xvii) the manner of advertising application, conditions or limitations and specifications of variety for registration including its photographs or drawings under sub-section (1) of section 21; (xviii) the manner of giving notice and the fees payable therefor under sub-section (2) of section 21; (xix) the manner of sending counter-statement under sub-section (4) of section 21; (xx) the manner of submitting evidence and the time within which such evidence may be submitted under sub-section (6) of section 21; (xxi) the documents and fees under sub-section (1) and the tests to be conducted and the procedure to be followed under sub-section (3) of section 23; (xxii) the form of a certificate of registration and the other authority to which a copy thereof shall be sent under sub-section (8) of section 23; 32 ----- (xxiii) the form of a certificate of registration and the other authority to which a copy thereof and the maximum time for issuing the certificate of registration under sub-section (2) of section 24; (xxiv) the manner of giving notice to the applicant under sub-section (3) of section 24; (xxv) the fees for review and renewal under sub-section (6) of section 24; (xxvi) the contents of the certificate and the manner of publishing such contents and inviting claim of benefits sharing under sub-section (1) of section 26; (xxvii) the form for submitting claims of benefit sharing and the fees to be accompanied therewith under sub-section (2) of section 26; (xxviii) the manner in which and the time within which opposition to claims shall be submitted under sub-section (3) of section 26; (xxix) the manner of making reference under sub-section (7) of section 26; (xxx) the manner of making an application for registration for title and the fees to be accompanied therewith under sub-section (4) of section 28; (xxxi) the manner of referring the disputes regarding registration of entitlement under the proviso to sub-section (4) of section 28; (xxxii) the manner to enter into a certificate the brief conditions of entitlement under sub-section (5) of section 28; (xxxiii) the manner of making an application for varying the terms of registration under clause (a) of sub-section (9) of section 28; (xxxiv) the manner of making an application by the registered breeder and certain other for cancellation of terms of registration under clause (b) of sub-section (9) of section 28; (xxxv) the manner of application by any person other than the breeder, his successor, the registered agent or the registered licensee for cancellation of terms of registration under clause (c) of sub-section (9) of section 28; (xxxvi) the manner of application for cancellation of the terms of registration under clause (d) of sub-section (9) of section 28; (xxxvii) the manner of application for cancellation of the terms of registration under clause (e) of sub-section (9) of section 28; (xxxviii) the manner of issuing notice to the registered breeder of a variety or his successor or to each registered agent or registered licensee (not being the applicant) under sub-section (10) of section 28; (xxxix) the manner of giving notice to the registrar under sub-section (1) of section 33; (xl) the manner of notifying to the registered agent or registered licensee under sub-section (2) of section 33; (xli) the period within which the notice of opposition under sub-section (3) of section 33 may be given; (xlii) the manner of making application under section 34; (xliii) the manner of depositing fees under sub-section (2) of section 35; (xliv) the manner of making application under sub-section (1) of section 36; (xlv) the manner of applying to the Registrar under sub-section (2) of section 36; (xlvi) the manner of giving notice under sub-section (4) of section 36; (xlvii) the manner of application under sub-section (1) of section 37; (xlviii) the manner of making application under sub-section (2) of section 37; 33 ----- (xlix) the manner to apply to the Registrar under sub-section (1) of section 38; (l) the manner of advertising application and to give notice to the Registrar, and the time from the date of the advertisement within which a person may give such notice under sub-section (2) of section 38; (li) the manner of advertising the denomination of the variety under sub-section (3) of section 38; (lii) the manner of recognition and reward from Gene Fund under clause (iii) of sub-section (1) of section 39; (liii) the manner of claiming compensation and filing of opposition under sub-section (2) of section 39; (liv) the manner of issuing notice and filing objection under sub-section (3) of section 41; (lv) the manner of receiving benefit sharing under clause (a) of sub-section (1) of section 45; (lvi) the manner of applying Gene Fund under sub-section (2) of section 45; (lvii) the particulars to be contained in the application under sub-section (2) of section 47; (lviii) the authority and the manner in which such authority shall make available to the compulsory licensee the reproduction material of the variety under section 50; (lix) the form for making application under sub-section (1) of section 52; (lx) the period within which an appeal shall be preferred under sub-section (1) of section 56; (lxi) the form of petition and the particulars which such petition shall contain under sub-section (2) of section 56; (lxii ) the form for preparing annual statement of accounts under sub-section (1) of section 62; (lxiii) the financial and administrative powers which the Chairperson shall exercise under section 63; (lxiv) the manner of using the denomination of a variety under sub-section (1) of section 68; (lxv) the manner of authorising registered agent or registered licensee under section 81; (lxvi) the manner of issuing certified copy of content of Register or any other document under section 83; (lxvii) the fees payable for obtaining a certified copy of, or to inspect, any entry in the Register or any other document under section 84; (lxviii) any other matter which is to be, or may be, prescribed or in respect of which this Act makes no provision or makes insufficient provision and provision is, in the opinion of the Central Government, necessary for the proper implementation of this Act. **97. Rules, regulations and schemes to be laid before Parliament.—Every rule and every regulation** and every scheme made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or scheme or both Houses agree that the rule or regulation or scheme should not be made, the rule or regulation or scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation or scheme. 34 -----
3-Jun-2002
33
The Delimitation Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2004/1/A2002-33.pdf
central
# THE DELIMITATION ACT, 2002 _______ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title. 2. Definitions. 3. Constitution of Delimitation Commission. 4. Duties of the Commission. 5. Associate members. 6. Casual vacancies. 7. Procedure and powers of the Commission. 8. Readjustment of number of seats. 9. Delimitation of constituencies. 10. Publication of orders and their date of operation. 10A. Deferment of delimitation in certain cases. 10B. Delimitation Commission's order with respect to the State of Jharkhand not to have any legal effect. 11. Power to maintain delimitation orders up-to-date. 12. Repeal. ----- # THE DELIMITATION ACT, 2002 ACT NO. 33 OF 2002 [3rd June, 2002.] # An Act to provide for the readjustment of the allocation of seats in the House of the People to the States, the total number of seats in the Legislative Assembly of each State, the division of each State and each Union territory having a Legislative Assembly into territorial constituencies for elections to the House of the People and Legislative Assemblies of the States and Union territories and for matters connected therewith. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— **1. Short title.—This Act may be called the Delimitation Act, 2002.** **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “article” means an article of the Constitution; (b) “associate member” means a member nominated under section 5; (c) “Commission” means the Delimitation Commission constituted under section 3; (d) “Election Commission” means the Election Commission referred to in article 324; (e) “member” means a member of the Commission and includes the Chairperson; and (f) “State” includes a Union territory having a Legislative Assembly [1]***. **3. Constitution of Delimitation Commission.—As soon as may be after the commencement of this** Act, the Central Government shall constitute a Commission to be called the Delimitation Commission which shall consist of three members as follows:— (a) one member, who shall be a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government who shall be the Chairperson of the Commission; (b) the Chief Election Commissioner or an Election Commissioner nominated by the Chief Election Commissioner, ex officio: Provided that after the nomination of an Election Commissioner as a member under this clause, no further nomination under this clause shall be made except to fill the casual vacancy of such member under section 6; and (c) the State Election Commissioner of concerned State, ex officio. 2[Explanation.—For the purposes of clause (c), the State Election Commissioner of concerned State,— (i) in respect of the duties of the Commission relating to a State (other than the States of Meghalaya, Mizoram and Nagaland), means the State Election Commissioner appointed by the Governor of that State under clause (1) of article 243K; and (ii) in respect of the duties of the Commission relating to the State of Meghalaya or the State of Mizoram or the State of Nagaland, as the case may be, means a person nominated by the Governor of that State for such purposes]. **4. Duties of the Commission.—(1) The readjustment made, on the basis of the census figures as** ascertained at the census held in the year 1971 by the Delimitation Commission constituted under section 3 of the Delimitation Act, 1972 (76 of 1972), of the allocation of seats in the House of the People to the several States and the total number of seats in the Legislative Assembly of each State shall be deemed to be the readjustment made by the Commission for the purposes of this Act. (2) Subject to the provisions of sub-section (1) and any other law for the time being in force, the Commission shall readjust the division of each State into territorial constituencies for the purpose of ----- elections to the House of the People and to the State Legislative Assembly on the basis of the census figures as ascertained at the census held in the year [1][2001]: Provided that where on such readjustment only one seat is allocated in the House of the People to a State, the whole of that State shall form one territorial constituency for the purpose of elections to the House of the People from that State. **5. Associate members.—(1) The Commission shall associate with itself for the purpose of assisting it** in its duties in respect of each State, ten persons five of whom shall be members of the House of the People representing that State and five shall be members of the Legislative Assembly of that State: Provided that where the number of members of the House of the People representing any State is five or less, then, all such members shall be the associate members for that State and in the latter case the total number of associate members shall be less than ten by such number as by which the total number of members of the House of the People representing that State is less than five. (2) The persons to be so associated from each State shall be nominated, in the case of the members of the House of the People, by the Speaker of that House, and in the case of members of a Legislative Assembly, by the Speaker of that Assembly, having due regard to the composition of the House or, as the case may be, of the Assembly. (3) The first nominations to be made under sub-section (2)— (a) shall be made by the Speakers of the several Legislative Assemblies within one month, and by the Speaker of the House of the People within two months, of the commencement of this Act; and (b) shall be communicated to the Chief Election Commissioner, and where the nominations are made by the Speaker of a Legislative Assembly, also to the Speaker of the House of the People. (4) None of the associate members shall have a right to vote or to sign any decision of the Commission. (5) The Commission shall have power to call upon— (a) the Registrar-General and Census Commissioner, India or his nominee; or (b) the Surveyor General of India or his nominee; or (c) any other officer of the Central Government or State Government; or (d) any expert in geographical information system; or (e) any other person, whose expertise and knowledge are considered necessary by the Commission to provide assistance to it in addition to the assistance provided by the persons referred to in sub-section (1) and the officers and persons so called upon shall be duty bound to assist the Commission. (6) The Secretary to the Election Commission shall be the ex officio Secretary of the Commission and shall discharge his functions with the assistance of the employees of the Election Commission under the supervision of the Chairperson of the Commission. **6. Casual vacancies.—If the office of the Chairperson or of a member or of an associate member** falls vacant owing to his death or resignation, it shall be filled as soon as may be practicable by the Central Government or the Speaker concerned under and in accordance with the provisions of section 3 or, as the case may be, of section 5. **7. Procedure and powers of the Commission.—(1) The Commission shall determine its own** procedure and shall, in the performance of its functions, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of witnesses; (b) requiring the production of any document; and (c) requisitioning any public record from any court or office. ----- (2) The Commission shall have power to require any person to furnish any information on such points or matters as in the opinion of the Commission may be useful for, or relevant to, any matter under the consideration of the Commission. (3) The Commission may authorise any of its members to exercise any of the powers conferred on it by clauses (a) to (c) of sub-section (1) and sub-section (2), and any order made or act done in exercise of any of those powers by the member authorised by the Commission in that behalf shall be deemed to be the order or act, as the case may be, of the Commission. (4) If there is a difference of opinion among the members, the opinion of the majority shall prevail, and acts and orders of the Commission shall be expressed in terms of the views of the majority. (5) The Commission as well as any group of associate members shall have power to act notwithstanding the temporary absence of a member or associate member or the existence of a vacancy in the Commission or in that or any other group of associate members; and no act or proceeding of the Commission or of any group of associate members shall be invalid or called in question on the ground merely of such temporary absence or of the existence of such vacancy. (6) The Commission shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). _Explanation.—For the purposes of enforcing the attendance of witnesses, the local limits of the_ jurisdiction of the Commission shall be the limits of the territory of India. **8. Readjustment of number of seats.—The Commission shall, having regard to the provisions of** articles 81, 170, 330 and 332, and also, in relation to the Union territories, except National Capital Territory of Delhi, sections 3 and 39 of the Government of Union Territories Act, 1963 (20 of 1963) and in relation to the National Capital Territory of Delhi sub-clause (b) of clause (2) of article 239AA, by order, determine,— (a) on the basis of the census figures as ascertained at the census held in the year 1971 and subject to the provisions of section 4, the number of seats in the House of the People to be allocated to each State and determine on the basis of the census figures as ascertained at the *[census held in the year [1][2001]] the number of seats, if any, to be reserved for the Scheduled Castes and for the Scheduled Tribes of the State; and (b) on the basis of the census figures as ascertained at the census held in the year 1971 and subject to the provisions of section 4, the total number of seats to be assigned to the Legislative Assembly of each State and determine on the basis of the census figures as ascertained at the *[census held in the year [1][2001]] the number of seats, if any, to be reserved for the Scheduled Castes and for the Scheduled Tribes of the State: Provided that the total number of seats assigned to the Legislative Assembly of any State under clause (b) shall be an integral multiple of the number of seats in the House of the People allocated to that State under clause (a). **9. Delimitation of constituencies.—(1) The Commission shall, in the manner herein provided, then,** distribute the seats in the House of the People allocated to each State and the seats assigned to the Legislative Assembly of each State as readjusted on the basis of 1971 census to single-member territorial constituencies and delimit them on the basis of the census figures as ascertained, at the *[census held in the year [2][2001]], having regard to the provisions of the Constitution, the provisions of the Act specified in section 8 and the following provisions, namely:— (a) all constituencies shall, as far as practicable, be geographically compact areas, and in delimiting them regard shall be had to physical features, existing boundaries of administrative units, facilities of communication and public convenience; (b) every assembly constituency shall be so delimited as to fall wholly within one parliamentary constituency; - For the purposes of delimitation of Assembly and Parliamentary Constituencies, the words and figures “census held in the year 2001” wherever occurring, shall be construed as words and figures “census held in the year 2011” _vide Act No. 34 of_ 2019, s. 62(1)(b) (w.e.f. 31-10-2019). ----- (c) constituencies in which seats are reserved for the Scheduled Castes shall be distributed in different parts of the State and located, as far as practicable, in those areas where the proportion of their population to the total is comparatively large; and (d) constituencies in which seats are reserved for the Scheduled Tribes shall, as far as practicable, be located in areas where the proportion of their population to the total is the largest. (2) The Commission shall— (a) publish its proposals for the delimitation of constituencies, together with the dissenting proposals, if any, of any associate member who desires publication thereof, in the Gazette of India and in the Official Gazettes of all the States concerned and also in such other manner as it thinks fit; (b) specify a date on or after which the proposals shall be further considered by it; (c) consider all objections and suggestions which may have been received by it before the date so specified, and for the purpose of such consideration, hold one or more public sittings at such place or places in each State as it thinks fit; and (d) thereafter by one or more orders determine— (i) the delimitation of parliamentary constituencies; and (ii) the delimitation of assembly constituencies, of each State. **10. Publication of orders and their date of operation.—(1) The Commission shall cause each of its** orders made under section 8 or section 9 to be published in the Gazette of India and in the Official Gazettes of the States concerned and simultaneously cause such orders to be published at least in two vernacular newspapers and publicise on radio, television and other possible media available to the public and after such publication in the Official Gazettes of the States concerned, every District Election Officer shall cause to be affixed, the Gazette version of such orders relating to the area under his jurisdiction, on a conspicuous part of his office for public notice. (2) Upon publication in the Gazette of India, every such order shall have the force of law and shall not be called in question in any court. (3) As soon as may be after such publication, every such order shall be laid before the House of the People and the Legislative Assemblies of the States concerned. (4) Subject to the provisions of sub-section (5), the readjustment of representation of the several territorial constituencies in the House of the People or in the Legislative Assembly of a State and the delimitation of those constituencies provided for in any such order shall apply in relation to every election to the House or to the Assembly, as the case may be, held after the publication in the Gazette of India of that order and shall so apply in supersession of the provisions relating to such representation and delimitation contained in any other law for the time being in force or any order or notification issued under such law in so far as such representation and delimitation are inconsistent with the provisions of this Act: 1[Provided that nothing in this sub-section shall apply to the delimitation orders published in relation to the state of Jharkhand.] (5) Nothing in this section shall affect the representation in the House of the People or in the Legislative Assembly of a State until the dissolution of the House or of the Assembly, as the case may be, existing on the date of publication in the Gazette of India of the final order or orders of the Commission relating to the delimitation of parliamentary constituencies or, as the case may be, of the assembly constituencies of that State and any bye-election to fill any vacancy in such House or in any such Assembly shall be held on the basis of the provisions of the laws and orders superseded by sub-section (4) as if the said provisions had not been superseded. (6) The Commission shall endeavour to complete and publish each of its orders referred to in sub-section (1) in the manner provided in that sub-section, [2][within a period not later than 31st day of July, 2008] under section 3. ----- **1[10A. Deferment of delimitation in certain cases.—(1) Notwithstanding anything contained in** sections 4, 8 and 9, if the President is satisfied that a situation has arisen whereby the unity and integrity of India is threatened or there is a serious threat to the peace and public order, he may, by order, defer the delimitation exercise in a State. (2) Every order made under this section shall be laid before each House of Parliament. **10B. Delimitation Commission's order with respect to the State of Jharkhand not to have any** **legal effect.—Notwithstanding anything contained in sub-section (2) of section 10, the final orders** relating to readjustment of number of seats and delimitation of constituencies in respect of the State of Jharkhand published under the said section _vide Order O.N. 63(E), dated 30th April, 2007 and O.N._ 110(E), dated 17th August, 2007 shall have no legal effect and the delimitation of the constituencies as it stood before the publication of the said Orders shall continue to be in force until the year 2026 in relation to every election to the House of the People or to the Legislative Assembly, as the case may be, held after the commencement of the Delimitation (Amendment) Act, 2008 (9 of 2008).] **11. Power to maintain delimitation orders up-to-date.—(1) The Election Commission may, from** time to time, by notification in the Gazette of India and in the Official Gazette of the State concerned,— (a) correct any printing mistake in any of the orders made by the Commission under section 9 or any error arising therein from an inadvertent slip or omission; and (b) where the boundaries or name of any district or any territorial division mentioned in any of the said orders are or is altered, make such amendments as appear to it to be necessary or expedient for bringing the orders up-to-date, so, however, that the boundaries or areas or extent of any constituency shall not be changed by any such notification. 2[Provided that the Election Commission may make such amendments, as appear to it to be necessary or expedient, for bringing the said orders up-to-date by including therein and excluding therefrom the relevant areas, consequent upon the exchange of one hundred and eleven enclaves of India and fifty-one enclaves of Bangladesh with effect from 31st July, 2015, in pursuance of the Constitution (One Hundredth Amendment) Act, 2015.] (2) Every notification under this section shall be laid, as soon as may be after it is issued, before the House of the People and the Legislative Assembly of the State concerned. **12. Repeal.—The Delimitation Act, 1972 (76 of 1972), is hereby repealed.** -----
11-Jun-2002
35
The Haj Committee Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/1912/1/A2002-35.pdf
central
# THE HAJ COMMITTEE ACT, 2002 _______ ARRANGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II HAJ COMMITTEE OF INDIA 3. Constitution and incorporation of Haj Committee of India. 4. Composition of Committee. 5. Notification of members. 6. Term of office. 7. Chairperson and Vice-Chairpersons. 8. Reconstitution of Committee. 9. Duties of Committee. 10. Meetings of Committee. 11. Appointment of Standing Committees and sub-committees. 12. Disqualification for being nominated, or for continuing, as a member of Committee. 13. Resignation of Chairperson, Vice-Chairperson and members. 14. Removal of Chairperson, Vice-Chairperson and members. 15. Filling of a casual vacancy. 16. Chief Executive Officer and other employees. CHAPTER III STATE HAJ COMMITTEES 17. Establishment and incorporation of State Haj Committee. 18. Composition of State Committee. 19. Notification of members. 20. Term of office. 21. Chairperson. 22. Reconstitution of a State Committee. 23. Disqualification for being nominated, or for continuing, as a member of the Committee. 24. Resignation of Chairperson and members. 25. Removal of Chairperson and members. 26. Filling of a casual vacancy. 27. Duties of State Committee. 28. Meetings of State Committee. 29. Executive Officer and other employees of State Committee. 1 ----- CHAPTER IV FINANCE, ACCOUNTS AND AUDIT SECTIONS 30. Central Haj Fund. 31. Application of Central Haj Fund. 32. State Haj Fund. 33. Application of State Haj Fund. 34. Accounts and audit. CHAPTER V MISCELLANEOUS 35. Powers of Committee to issue Pilgrim Passes and levy fees. 36. Supersession of Committee. 37. Membership of Committee or State Committee not to constitute office of profit. 38. Vacancies, etc., not to invalidate proceedings of Committee. 39. Officers and employees of Committee to be public servants. 40. Indemnity. 41. Power to amend Schedule. 42. Redressal of grievances. 43. Vesting of properties and other rights, etc., in Committees. 44. Power to make rules. 45. Power to make bye-laws. 46. Power to delegate. 47. Power to make rules by State Governments. 48. Provisions as to employees of the existing Committee before the commencement of this Act. 49. Protection of action taken in good faith. 50. Power to remove difficulties. 51. Power to give directions. 52. Repeal. THE SCHEDULE. 2 ----- # THE HAJ COMMITTEE ACT, 2002 ACT NO. 35 OF 2002 [11th June, 2002.] # An Act to establish a Haj Committee of India and State Haj Committees for making arrangements for the pilgrimage of Muslims for Haj, and for matters connected therewith. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Haj Committee Act, 2002.** (2) It shall come into force on such date[1] or dates as the Central Government may, by notification, appoint, and different dates may be appointed for different provisions of this Act and for different States. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “bye-laws” means the bye-laws made under section 45; (b) “Chief Executive Officer or the Executive Officer” means the Chief Executive Officer of the Committee or the Executive Officer of the State Committee appointed under sub-section (1) of section 16 or sub-section (1) of section 29, as the case may be; (c) “Committee” means the Haj Committee of India constituted under section 3; (d) “member” means a member of the Haj Committee of India nominated under section 4 or of a State Haj Committee nominated under section 18, as the case may be, and includes the Chairperson and a Vice-Chairperson; (e) “notification” means a notification published in the Gazette of India or the Official Gazette of a State, as the case may be; (f) “pilgrim” means a Muslim proceeding to, or returning from, Haj; (g) “prescribed” means prescribed by rules made under section 44 by the Central Government or, as the case may be, under section 47 by the State Government; (h) “State Committee” means a State Haj Committee constituted under section 18 and includes Joint State Committee; (i) “State Government”, in relation to a Union territory, means the Administrator of that Union territory appointed by the President under article 239 of the Constitution. CHAPTER II HAJ COMMITTEE OF INDIA **3. Constitution and incorporation of Haj Committee of India.—(1) With effect from such date as** the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be constituted a Committee by the name of the Haj Committee of India. (2) The Committee shall be a body corporate, by the name aforesaid, having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, to create a charitable trust or endowment, and to contract and shall by the said name sue and be sued. (3) The Committee shall have its headquarters at Mumbai and as and when the Committee considers it functionally necessary, additional regional offices may be opened in consultation with the Central Government. 1. 5th December, 2002, vide notification No. S.O. 1267(E), dated 5th December, 2002, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- **4. Composition of Committee.—The Committee shall consist of the following members, namely:—** (i) three members of Parliament of whom two are to be nominated by the Speaker of the House of the People from among its Muslim members, and one by the Chairman of the Council of States from among its Muslim members: Provided that a member of Parliament shall, upon ceasing to be a member, cease to be a member of the Committee and the Speaker of the House of the People or the Chairman of the Council of States, as the case may be, shall make a fresh nomination upon request by the Central Government; (ii) nine Muslim members of the Committee shall be elected, three from those States sending largest number of pilgrims during last three years and one each from the zones as specified in the Schedule, in such manner as may be prescribed: Provided that not more than one member shall be elected from a State falling in the zone as specified in the Schedule; (iii) four persons not below the rank of Joint Secretary to the Government of India nominated by that Government to represent the Ministries of External Affairs, Home, Finance and Civil Aviation, as ex officio members; (iv) seven Muslim members shall be nominated by the Central Government from among the following categories of persons, namely:— (a) two members who have special knowledge of public administration, finance, education, culture or social work and out of whom one shall be a Shia Muslim; (b) two women members, out of them one shall be Shia Muslim; (c) three members who have special knowledge of Muslim theology and law, out of them one shall be a Shia Muslim. **5. Notification of members.—As soon as may be after the nomination of the members of the** Committee under section 4, the Central Government shall publish in the Official Gazette the names of all such members. **6. Term of office.—(1) The term of office of the members of the Committee (other than the ex officio** members and members filling casual vacancies) shall be three years, commencing on the day following the publication of the list of members under section 5: Provided that the term of the members of the Committee may be extended by the Central Government by a notification in the Official Gazette for a period not exceeding six months at a time but, in any case, not exceeding beyond a total period of one year. (2) The allowances payable to, and the other terms and conditions of, the Chairperson, Vice-Chairpersons and members shall be such as may be prescribed. **7. Chairperson and Vice-Chairpersons.—(1) After the publication of the names of members of the** Committee under section 5, the Central Government shall convene within forty-five days of such publication the first meeting of the Committee at which the Committee shall elect a Chairperson and two Vice-Chairpersons from amongst its members : Provided that a Minister shall not be the Chairperson of the Committee and ex officio members shall not take part in the election of the Chairperson or of the Vice-Chairpersons. (2) If the Committee fails to elect the Chairperson or the Vice-Chairpersons the Central Government may appoint a member of the Committee to be the Chairperson thereof or Vice-Chairpersons, as the case may be. (3) The Chairperson shall exercise such powers and discharge such duties as may be prescribed. (4) The Vice-Chairpersons shall exercise such powers and discharge such duties as may be determined by bye-laws made in this behalf by the Committee: 4 ----- Provided that till such bye-laws are made, the Vice-Chairpersons shall exercise such powers and discharge such duties as may be determined by an order made by the Chairperson in this regard. (5) The election of the Chairperson and the Vice-Chairpersons shall be notified by the Central Government in the Official Gazette. (6) The term of office of the Chairperson and the Vice-Chairpersons, as the case may be, shall be co-terminus with the term of the Committee and no person shall hold office of the Chairperson or the Vice-Chairpersons, as the case may be, for more than two consecutive terms. (7) Any casual vacancy in the office of the Chairperson or a Vice-Chairperson shall be filled for the remainder of the term in accordance with sub-section (1) or sub-section (2), as the case may be. **8. Reconstitution of Committee.—(1) The Central Government shall take or cause to be taken all** necessary steps for the reconstitution of a new Committee at least four months before the expiry of the term, or the extended term, as the case may be, of the Committee. (2) An outgoing member shall be eligible for renomination on the Committee for not more than two terms: Provided that not more than fifty per cent. of the members may be renominated for a second term in such manner as may be prescribed. **9. Duties of Committee.—(1) The duties of the Committee shall be—** (i) to collect and disseminate information useful to pilgrims, and to arrange orientation and training programmes for pilgrims; (ii) to advise and assist pilgrims during their stay at the embarkation points in India, while proceeding to or returning from pilgrimage, in all matters including vaccination, inoculation, medical inspection, issue of pilgrim passes and foreign exchange, and to liaise with the local authorities concerned in such matters; (iii) to give relief to pilgrims in distress; (iv) to finalise the annual Haj plan with the approval of the Central Government, and execute the plan, including the arrangements for travel by air or any other means, and to advise in matters relating to accommodations; (v) to approve the budget estimates of the Committee and submit it to the Central Government at least three months before the beginning of the financial year for its concurrence; (vi) to co-ordinate with the Central Government, railways, airways and travel agencies for the purpose of securing travelling facilities for pilgrims; (vii) to generally look after the welfare of the pilgrims; (viii) to publish such proceedings of the Committee and such matters of interest to pilgrims as may be determined by bye-laws made in this behalf by the Committee; (ix) to discharge such other duties in connection with Haj as may be prescribed by the Central Government. (2) The Central Government shall afford all reasonable assistance to the Committee in the discharge of the duties specified in sub-section (1). **10. Meetings of Committee.—(1) The Committee shall meet at least three times in a year before the** commencement of the Haj season to plan and make arrangements for Haj and once after that to review all arrangements made by the Committee. (2) In addition to the meetings specified in sub-section (1), the Committee may hold meetings as and when requisitioned by at least one-third of its members or when considered necessary by the Chairperson. (3) The number of members required to make a quorum at any meeting of the Committee shall be one-third of its members. 5 ----- (4) All matters shall be decided by a majority of votes of the members present and, in the event of an equality of votes, the Chairperson or other person presiding shall have a casting vote. (5) The Committee shall observe such rules of procedure in regard to the transaction of business at its meetings as may be determined by bye-laws. **11. Appointment of Standing Committees and sub-committees.—(1) The Committee shall appoint** two Standing Committees, each headed by a Vice-Chairperson of the Committee, to deal with matters relating to finance and Haj arrangements, from amongst its member consisting of such number of members and with such powers and functions as may be determined by bye-laws made in this behalf by the Committee: Provided that the Chairperson shall preside over the meeting of the Standing Committee in case he attends the meeting. (2) The Committee may also appoint other sub-committees for such purposes as it may think fit and any such sub-committee shall consist of such number of members and other persons as may be determined by bye-laws made in this behalf by the Committee. **12.** **Disqualification for** **being** **nominated, or for** **continuing,** **as** **a** **member** **of** **Committee.—A person shall be disqualified for being nominated, or for continuing as a member of the** Committee, if he— (i) is not a citizen of India; (ii) is not a Muslim, except for ex officio members as provided in clause (iii) of section 4; (iii) is less than twenty-five years of age; (iv) is of unsound mind and stands so declared by a competent court; (v) is an undischarged insolvent; (vi) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude; (vii) has been on a previous occasion— (a) removed from his office as a member; or (b) removed by an order of a competent authority either for not acting in the interest of the pilgrims or for corruption. **13. Resignation of Chairperson, Vice-Chairperson and members.—The Chairperson, the** Vice-Chairperson or any other member may resign his office by writing under his hand addressed to the Central Government and it shall be effective from the date of such resignation. **14. Removal of Chairperson, Vice-Chairperson and members.—(1) The Central Government** may, by notification in the Official Gazette, remove the Chairperson, a Vice-Chairperson of the Committee or any member thereof, if he— (i) is or becomes subject to any of the disqualifications specified in section 12; or (ii) refuses to act or is incapable of acting or acts in a manner which the Central Government, after hearing any explanation that he may offer, considers to be prejudicial to the interests of the Committee or the interests of the pilgrims; or (iii) fails, in the opinion of the Committee, to attend three consecutive meetings of the Committee, without sufficient excuse. (2) Where the Chairperson or a Vice-Chairperson of the Committee is removed under sub-section (1), he shall also cease to be a member of the Committee. **15. Filling of a casual vacancy.—(1) When the seat of a member becomes vacant by his removal,** resignation, death or otherwise, a new member shall be nominated or elected, as the case may be, in his place and such member shall hold office so long as the member whose place he fills would have been entitled to hold office if such vacancy had not occurred. 6 ----- (2) Any casual vacancy under sub-section (1) shall be filled up by the same category to which the former member belonged. **16. Chief Executive Officer and other employees.—(1) The Central Government shall appoint a** person, from a panel of Muslim officers of the Central Government and of the State Governments not below the rank of Deputy Secretary to the Government of India, to be the Chief Executive Officer of the Committee on such terms and conditions as may be prescribed. (2) The Chief Executive Officer shall be the ex officio Secretary of the Committee. (3) The Chief Executive Officer shall be appointed for a period of three years, which may be extended by a maximum period of one year by the Central Government. (4) The Chief Executive Officer shall execute the decisions of the Committee and perform such other functions as may be prescribed: Provided that in case of any difference of opinion between the Chief Executive Officer and the Committee, he shall bring the matter to the notice of the Central Government, whose decision thereon shall be final. (5) The Committee may, with the previous sanction of the Central Government, employ such other officers and employees as it deems necessary to carry out the purposes of this Act, on such terms and conditions as may be prescribed. CHAPTER III STATE HAJ COMMITTEES **17. Establishment and incorporation of State Haj Committee.—(1) With effect from such date as** the Central Government may, by notification in the Official Gazette, appoint in this behalf, the Government of a State shall constitute a Committee by the name of the......[name of the State] Haj Committee: Provided that in case it appears to the Central Government for any reasons that it is not necessary for a State or Union territory to establish a Haj Committee, it may authorise the State Haj Committee of a contiguous State to deal with those pilgrims and suggest suitable representation of those States and Union territories. (2) The State Committee shall be a body corporate, by the name aforesaid, having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, to create a charitable trust or endowment, and to contract and shall by the said name sue and be sued. (3) Notwithstanding anything contained in this Act, an agreement may be entered into— (a) by two or more Governments of contiguous States, or (b) by the Central Government (in respect of one or more Union territories) and one or more Governments of States contiguous to such Union territory or Union territories, to be in force for such period and to be subject to renewal for such further period, if any, as may be specified in the agreement to provide for the constitution of a Joint State Committee,— (i) in a case referred to in clause (a), for all the participating States, and (ii) in a case referred to in clause (b), for the participating Union territory or Union territories and the State or States. (4) An agreement under this section shall be published, in a case referred to in clause (a) of sub-section (2), in the Official Gazette of the participating States and in a case referred to in clause (b) of that sub-section, in the Official Gazette of the participating Union territory or Union territories and participating State or States. (5) Any reference in this Act to the State Committee shall, unless the context otherwise requires, be construed as including a Joint State Committee. 7 ----- **18. Composition of State Committee.—(1) A State Committee shall consist of sixteen members, to** be nominated by the State Government, namely:— (i) three members from the Muslim members of— (a) Parliament representing the State; (b) State Legislative Assembly; and (c) Legislative Council, where it exists; (ii) three members from Muslim members representing local bodies in the State; (iii) three members having expertise in Muslim theology and law including one who shall be a Shia Muslim; (iv) five members representing Muslim voluntary organisations working in the fields of public administration, finance, education, culture or social work; (v) the Chairperson of the State Wakf Board; and (vi) Executive Officer of the State Committee, who shall be the _ex officio member of the State_ Committee: Provided that a Committee for any Union territory or a Joint State Committee shall consist of such number of members as may be prescribed. (2) In case where there is no Muslim member in any of the categories mentioned in clauses (i) and (ii) of sub-section (1), or where there is no Legislative Council in a State, nomination may be made in such manner as may be prescribed. **19. Notification of members.—As soon as may be after the nomination of the members of a State** Committee under sub-section (1) of section 18, the State Government shall publish, in the Official Gazette of that State, the names of all such members. **20. Term of office.—(1) The term of office of the members of the State Committee (other than the ex** _officio members and members filling casual vacancies) shall be three years, commencing on the day_ following the publication of the list of members under section 19. (2) The allowances payable to, and the other terms and conditions of the Chairperson and members shall be such as may be prescribed. **21. Chairperson.—(1) After the publication of the names of members of the State Committee under** section 19, the State Government shall convene within forty-five days the first meeting of the State Committee at which the State Committee shall elect a Chairperson from amongst its members: Provided that an ex officio member shall not take part in the election of the Chairperson. (2) If the State Committee fails to elect a Chairperson, the State Government may appoint a member of the State Committee to be the Chairperson thereof. (3) The election of the Chairperson shall be notified by the State Government in the Official Gazette of the State. (4) The term of office of the Chairperson shall be three years and no person shall hold the office of the Chairperson for more than two consecutive terms. (5) Any casual vacancy in the office of the Chairperson shall be filled in accordance with sub-section (1) or sub-section (2), as the case may be. **22. Reconstitution of a State Committee.—(1) The State Government shall take or cause to be** taken all necessary steps for the reconstitution of a new State Committee at least four months before the expiry of the term of the State Committee. (2) An outgoing member shall be eligible for re-nomination of the State Committee for not more than two terms: 8 ----- Provided that fifty per cent. of the nominees may be re-nominated for a second term in such manner as may be prescribed. **23. Disqualification for being nominated, or for continuing, as a member of the Committee.—A** person shall be disqualified for being nominated, or for continuing, as a member of the State Committee, if he— (i) is not a citizen of India; (ii) is not a resident of that State; (iii) is not a Muslim, except for an Executive Officer as provided in clause (vi) of sub-section (1) of section 18; (iv) is less than twenty-five years of age; (v) is of unsound mind and stands so declared by a competent court; (vi) is an undischarged insolvent; (vii) has been convicted of an offence which, in the opinion of the State Government, involves a moral turpitude; (viii) has been on a previous occasion— (a) removed from his office as a member; or (b) removed by an order of a competent authority either for not acting in the interest of the pilgrims or for corruption. **24. Resignation of Chairperson and members.—The Chairperson or any other member may resign** his office by writing under his hand addressed to the State Government and it shall be effective from the date of such resignation. **25. Removal of Chairperson and members.—(1) The State Government may, by notification in the** Official Gazette, remove the Chairperson of the State Committee or any member thereof, if he— (i) is or becomes subject to any of the disqualifications specified in section 23; or (ii) refuses to act or is incapable of acting or acts in a manner which the State Government, after hearing any explanation that he may offer, considers to be prejudicial to the interests of the State Committee or the interests of the pilgrims; or (iii) fails, in the opinion of the State Committee, to attend three consecutive meetings of the State Committee, without sufficient excuse. (2) Where the Chairperson of the State Committee is removed under sub-section (1), he shall also cease to be a member of the State Committee. **26. Filling of a casual vacancy.—(1) When the seat of a member becomes vacant by his removal,** resignation, death or otherwise, a new member shall be nominated in his place and such member shall hold office so long as the member whose place he fills would have been entitled to hold office if such vacancy had not occurred. (2) Any casual vacancy under sub-section (1) shall be filled up by the same category to which the former member belonged. **27. Duties of State Committee.—(1) It shall be the duty of a State Committee to implement the** policy and directions of the Committee in the interests of Haj pilgrims. (2) The State Committee shall provide assistance to the Haj pilgrims including in the matter of their transport between their home States and the point of exit from India and their transit accommodation at points of exit. (3) The State Committee shall discharge such other duties in connection with Haj as may be prescribed by the State Government concerned, in consultation with the Central Government. 9 ----- **28. Meetings of State Committee.—(1) A State Committee shall meet at least twice in a year before** the Haj day and once after the Haj is over. (2) The number of members required to make a quorum at any meeting of the State Committee shall be one-third of its members. (3) In addition to the number of meetings specified in sub-section (1), the State Committee may hold meetings as and when requisitioned by at least one-third of its members or when considered necessary by the Chairperson. (4) All matters shall be decided by a majority of votes of the members present and, in the event of an equality of votes, the Chairperson or other person presiding shall have a casting vote. **29. Executive Officer and other employees of State Committee.—(1) The State Government shall** appoint a person, from amongst its officers not below the rank of Deputy Secretary, to be the Executive Officer of the State Committee: Provided that the person so appointed shall preferably be a Muslim. (2) The Executive Officer of the State Committee shall act as its Secretary. (3) The Executive Officer shall execute the decisions of the State Committee and perform such other functions as may be prescribed: Provided that in case of any difference of opinion between the Executive Officer and the State Committee, he shall bring the matter to the notice of the State Government whose decision thereon shall be final. (4) The State Committee shall, with the previous sanction of the State Government, employ such officers and other employees as it deems necessary to carry out the purposes of this Act. (5) The term of office and conditions of service of officers and other employees shall be such as may be prescribed. CHAPTER IV FINANCE, ACCOUNTS AND AUDIT **30. Central Haj Fund.—The Committee shall have its own Fund to be called the Central Haj Fund,** and there shall be placed to the credit thereof the following sums, namely:— (a) sums realised from any fees and service charges which may be levied by the Committee:— (i) for registration of applications for Haj; and (ii) for issue of Haj pilgrim travel passes; (b) money collected from pilgrims for performance of Haj; (c) the income from all deposits and investment of the Committee's funds; (d) the sums realised from the sale of the effects of deceased pilgrims and sums of money left by them, which are unclaimed and have lapsed to the Central Government; (e) any sums loaned by the Central or a State Government, or any other source approved by the Government; (f) any amount that may be legally due to the Committee from any source; and (g) the amount standing at the commencement of this Act to the credit of the Haj Fund or the Indigent Pilgrims Fund established under the Haj Committee Act, 1959 (51 of 1959). **31. Application of Central Haj Fund.—The Central Haj Fund shall, subject to the provisions of this** Act and the rules made thereunder, be under the control and management of the Committee, and shall be applied to the following purposes, namely:— (a) pay and allowances of the Chief Executive Officer and other employees of the Committee; (b) payment of charges and expenses incidental to the objects specified in section 9; and 10 ----- (c) any other expenses which are required to be met by the Committee or a State Committee, as approved by the Central Government. **32. State Haj Fund.—The State Committee shall have its own fund to be called the State Haj Fund** and the following sums shall be placed to the credit thereof, namely:— (i) all sums of money paid to it or any grant made by the Committee for the purposes of this Act; (ii) any grant or loan that may be made to the State Committee by the State Government, or any other source for the purposes of this Act, as approved by the State Government; (iii) any amount that may be legally due to the State Committee from any source; and (iv) the moneys, if any, standing to the credit of a State Haj Committee, at the commencement of this Act. **33. Application of State Haj Fund.—The State Haj Fund shall, subject to any rules that may be** made under this Act, be under the control and management of the State Committee and shall be applied to the following purposes, namely:— (i) pay and allowances of the employees of the State Committee other than its Executive Officer whose pay and allowances shall be borne by the State Government; (ii) payment of charges and expenses incidental to the due performance of its duties by the State Committee for the objects specified in section 27; and (iii) any other expenses, as approved by the State Government which are required to be met by the State Committee. **34. Accounts and audit.—(1) The Committee and every State Committee shall maintain proper** accounts and other relevant records and prepare an annual statement of accounts, in such form as may be prescribed by the Central Government, or as the case may be, the State Government. (2) The accounts shall be examined and audited annually by such auditors as the Central Government or, as the case may be, the State Government may approve. (3) The accounts of the Committee or the State Committee as certified by the auditor together with the audit report thereon shall be forwarded annually by the said Committee to the Central Government, or as the case may be, the State Government. (4) The Central Government shall, as soon as may be after the receipt of the audit report under sub-section (3), cause the same to be laid before each House of Parliament. (5) The State Government shall, as soon as may be, after the receipt of the audit report under sub-section (3), cause the same to be laid before the State Legislature. CHAPTER V MISCELLANEOUS **35. Powers of Committee to issue Pilgrim Passes and levy fees.—(1) The Committee shall have the** power to issue a travel document called “Pilgrim Pass” to a Haj pilgrim for his departure from India as a _bona fide pilgrim to Saudi Arabia and the said Pilgrim shall be deemed to be exempted from the_ provisions of section 3 of the Passports Act, 1967 (15 of 1967). (2) Notwithstanding anything contained in the Passports Act, 1967 (15 of 1967), the Central Government may, in consultation with the Committee, levy such fees for registration of Haj pilgrims, issuance of Pilgrim Pass by the Committee and other related matters, as may be prescribed in connection with rendering of such services. **36. Supersession of Committee.—(1) If, in the opinion of the Central Government, the Committee is** unable to perform, or persistently makes default in the performance of the duties imposed on it by or under this Act or exceeds or abuses its powers, the Central Government may, by an order published, together with a statement of the reasons therefor, in the Official Gazette, supersede it for such period as may be specified in the order: 11 ----- Provided that before making an order of supersession as aforesaid, the Central Government shall give a reasonable opportunity to the Committee to show cause why it should not be superseded. (2) When the Committee is superseded by an order under sub-section (1),— (a) all members shall, on such date as may be specified in the order, vacate their offices as such members without prejudice to their eligibility for nomination under clause (d); (b) during the period of supersession of the Committee, all powers and duties conferred and imposed upon the Committee by or under this Act shall be exercised and performed by such officer or authority as the Central Government may appoint in that behalf; (c) all property vested in the Committee shall, until it is reconstituted, vest in the Central Government; (d) before the expiry of the period of supersession, nominations shall be made by the Central Government for the purpose of reconstituting the Committee. (3) An order of supersession made under this section together with a statement of the reasons therefor shall be laid before each House of Parliament as soon as may be after it has been made. (4) A State Government may exercise the same powers and duties in respect of a State Committee as mentioned in sub-sections (1), (2) and (3) of this section subject to the conditions mentioned therein and any directions issued by the Central Government in this regard. **37. Membership of Committee or State Committee not to constitute office of** **profit.—Notwithstanding anything contained in any other law for the time being in force, the office of a** member of the Committee or State Committee shall not be deemed to be an office of profit. **38. Vacancies, etc., not to invalidate proceedings of Committee.—No act or proceeding of the** Committee or of a State Committee or of a Joint State Committee, as the case may be, shall be invalid by reason only of the existence of any vacancy amongst its members, or any defect in the constitution thereof. **39. Officers and employees of Committee to be public servants.—The officers and employees of** the Committees and other persons duly appointed to discharge any duty under this Act or rules or bye-laws made thereunder, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **40. Indemnity.—No suit, prosecution or other legal proceeding shall lie against the Chairperson,** Vice-Chairpersons or any member of the Committee or a State Committee in respect of anything in good faith done or purporting to have been done under this Act, except with the prior permission of the Central or State Government, as the case may be. **41. Power to amend Schedule.—(1) If the Central Government is satisfied that it is necessary or** expedient so to do, it may, by notification published in the Official Gazette, amend the Schedule and thereupon the Schedule shall be deemed to have been amended accordingly. (2) A copy of every notification made under sub-section (1) shall be laid before each House of Parliament as soon as may be after it is made. **42. Redressal of grievances.—Any Haj pilgrim, who is aggrieved by the discharge of any of the** duties performed by the Haj Committee or the State Haj Committee, shall make a representation for the redressal of his grievance to the Haj Committee or the State Haj Committee, as the case may be, and the same shall be disposed of by the said Committee, if necessary, after hearing the aggrieved person. **43. Vesting of properties and other rights, etc., in Committees.—(1) On and from the** commencement of this Act, all assets, rights, leaseholds, powers, authorities and privileges and all properties, movable and immovable, including lands, buildings, stores, cash balances, cash on hand, reserve funds, investments and all other rights and interests in or arising out of such properties as were immediately before such commencement in the ownership, power or control of Haj Committee, Mumbai, constituted under the Haj Committee Act, 1959 (51 of 1959) and all books of account, registers and all other documents of whatever nature relating thereto shall vest absolutely in and belong to the Committee. 12 ----- (2) On and from the commencement of this Act, all assets, rights, leaseholds, powers, authorities and privileges and all properties, movable and immovable, including lands, buildings, stores, cash balances, cash on hand, reserve funds, investments and all other rights and interests in or arising out of such properties as were immediately before such commencement in the ownership, power or control of Haj Committee of a State and, all books of account, registers and all other documents of whatever nature relating thereto shall vest absolutely in and belong to the Haj Committee of a State. (3) All debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Committee or a State Committee immediately before such commencement for or in connection with the purposes of the Committee or a State Committee shall be deemed to have been incurred, entered into and engaged to be done by, with or for the Committee or a State Committee, as the case may be. (4) All sums of money due to the Committee or a State Committee immediately before such commencement shall be deemed to be due to the Committee or a State Committee, as the case may be. (5) All contracts made with and all instruments executed on behalf of the Haj Committee, Mumbai or the Haj Committee of a State shall be deemed to have been made or executed on behalf of the Committee, or as the case may be, the State Committee and shall be performed accordingly. (6) In all suits and legal proceedings pending on the commencement of this Act in or to which the Haj Committee, Mumbai or the Haj Committee of a State was a party, the Committee, or as the case may be, the State Committee shall be deemed to have been substituted therefor. **44. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (i) the manner of election of members of the Committee under clause (ii) of section 4; (ii) the terms and conditions of the Chairperson and members under sub-section (2) of section 6; (iii) the powers and duties of the Chairperson under sub-section (3) of section 7; (iv) the manner in which the members may be re-nominated under the proviso to sub-section (2) of section 8; (v) duties in connection with Haj under clause (ix) of sub-section (1) of section 9; (vi) the functions of the Chief Executive Officer and the terms and conditions of service of the Chief Executive Officer and other employees of the Committee under section 16; (vii) the number of members of a Joint State Committee or of a Committee for Union territory under the proviso to clause (vi) of sub-section (1) of section 18; (viii) the manner in which the accounts shall be maintained by the Committee and the State Committees and the audit of such accounts under section 34; (ix) issue of Haj Pilgrim Pass under sub-section (1) of section 35; (x) amendment of the Schedule relating to the zones comprising contiguous States or Union territories under section 41; (xi) any other matter which may be prescribed. (3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session in which it is so laid, or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 13 ----- **45. Power to make bye-laws.—(1) The Committee may, by notification, make bye-laws consistent** with the provisions of the Act and the rules made thereunder in respect of the following matters, namely:— (i) powers and duties of the Vice-Chairpersons under sub-section (4) of section 7; (ii) providing for the publication of the proceedings of the Committee and any matter of interests to pilgrims under clause (viii) of sub-section (1) of section 9; (iii) laying down the rules of procedure for transaction of business at meeting of the Committee under sub-section (5) of section 10; (iv) powers and functions of the Standing Committee and determination of number of members and other persons in sub-committees under section 11; (v) providing for any other matter which the Committee deems necessary for giving effect to the provisions of this Act. (2) Bye-laws made by the Committee under this section shall be submitted to the Central Government and shall not take effect until they have been confirmed by the Central Government. (3) Bye-laws which have been confirmed by the Central Government shall be published in the Official Gazette. **46. Power to delegate.—Subject to the provisions of this Act and the rules made thereunder, the** Committee may, by general or special order in writing, with the prior approval of the Central Government, delegate to any member or Chief Executive Officer on the Committee, and subject to such conditions and limitations, as may be specified in the order, such of its powers under this Act (except the powers to make bye-laws under section 45) as it may deem necessary. **47. Power to make rules by State Governments.—(1) The State Governments may, in consultation** with the Central Government, by notification make rules to carry out the purposes of this Act in respect of the State Committees. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (i) terms and conditions of the Chairperson and members of the State Committee under sub-section (2) of section 20; (ii) the manner in which the members may be re-nominated under the proviso to sub-section (2) of section 22; (iii) duties of the State Committee under sub-section (3) of section 27; (iv) the functions of the Executive Officer and the terms and conditions of service of officers and other employees under section 29; (v) any other matter which is required to be or may be prescribed. (3) Every rule made under this section shall be laid, as soon as may be after it is made, before the State Legislature. **48. Provisions as to employees of the existing Committee before the commencement of this** **Act.—Every officer and other employee of any of the existing Committee and the State Committee, as the** case may be, shall, on and from the commencement of this Act, stand transferred to or become an officer or other employee of the Committee or the State Committee, as the case may be, with such designation as such Committee may determine and shall hold office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions of service as he would have held under the Haj Committee constituted under the Haj Committee Act, 1959 (51 of 1959) and shall continue to do so as an officer or other employee of the Committee till such time the terms and conditions are duly altered by such Committee: Provided that the tenure, remuneration and terms and conditions of service of any such officer or other employee of the Committee or of a State Committee, as the case may be, shall not be altered to his 14 ----- disadvantage without the previous sanction of the Central Government or State Government, as the case may be: Provided further that any service rendered by any such officer or other employee before the commencement of this Act shall be deemed to be the service rendered under the Committee or, as the case may be, the State Committee. **49. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Government or any officer or other employee of the Government or the Committee constituted under this Act in respect of anything which is in good faith done or intended to be done under this Act. **50. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act. (2) Any order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **51. Powers to give directions.—The Central Government may, in exercise of its powers and** performance of its functions under this Act, issue directions in writing to the Committee or the State Government or the State Committee and such Committee, State Government or State Committee, as the case may be, shall be bound to comply with such directions. **52. Repeal.—(1) The Haj Committee Act, 1959 (51 of 1959) is hereby repealed.** (2) Notwithstanding such repeal, the Haj Committee constituted under the said Act shall, until the establishment of the Committee under this Act, continue to function as if this Act had not been passed and on such notification under section 5 on the establishment of the Committee, the former Committee shall stand dissolved. (3) Notwithstanding such repeal, anything done or any action taken under the Haj Committee Act, 1959 (51 of 1959) shall be deemed to have been done or taken under the corresponding provisions of this Act. 15 ----- THE SCHEDULE [See sections 4(ii) and 41(1)] ZONE-I. NATIONAL CAPITAL TERRITORY OF DELHI, RAJASTHAN, 1[UNION TERRITORY OF JAMMU AND KASHMIR AND UNION TERRITORY OF LADAKH], PUNJAB, HARYANA, HIMACHAL PRADESH AND UNION TERRITORY OF CHANDIGARH. ZONE-II. UTTAR PRADESH, BIHAR, UTTARANCHAL AND JHARKHAND. ZONE-III. ANDHRA PRADESH, MADHYA PRADESH, CHHATTISGARH AND ORISSA. ZONE-IV. ASSAM, WEST BENGAL, TRIPURA, MANIPUR, SIKKIM, MEGHALAYA, ARUNACHAL PRADESH, MIZORAM, NAGALAND AND UNION TERRITORY OF ANDAMAN AND NICOBAR ISLANDS. ZONE-V. MAHARASHTRA, GUJARAT, GOA AND UNION TERRITORIES OF DAMAN AND DIU AND DADRA AND NAGAR HAVELI. ZONE-VI. TAMIL NADU, KERALA, KARNATAKA AND UNION TERRITORIES OF PONDICHERRY AND LAKSHADWEEP. 1. Subs. by notification No. S.O. 3834(E), dated 22[nd] October, 2020. 16 -----
11-Jun-2002
36
The Foreign Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2005/1/A2002-36.pdf
central
# THE FOREIGN AIRCRAFT (EXEMPTION FROM TAXES AND DUTIES ON FUEL AND LUBRICANTS) ACT, 2002 _____ ARRANGEMENT OF SECTIONS _____ SECTIONS 1. Short title and extent. 2. Definitions. 3. Exemption from levy of taxes and duties on fuel and lubricants supplied to aircraft of other countries. 1 ----- # THE FOREIGN AIRCRAFT (EXEMPTION FROM TAXES AND DUTIES ON FUEL AND LUBRICANTS) ACT, 2002 ACT NO. 36 OF 2002 [11th June, 2002.] # An Act to implement Agreements entered into by India with other countries in pursuance of the Convention on International Civil Aviation opened for signatures at Chicago on the 7th December, 1944. WHEREAS a Convention on International Civil Aviation was signed by India on the 7th December, 1944; AND WHEREAS India, having signed the said Convention, entered into Agreements with the parties to the said Convention to exempt the taxes and duties on fuel and lubricants supplied in India to the aircraft of the contracting parties. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— **1. Short title and extent.—(1) This Act may be called the Foreign Aircraft (Exemption from Taxes** and Duties on Fuel and Lubricants) Act, 2002. (2) It extends to the whole of India. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Agreements” means the Air Services Agreements or Air Transport Agreements entered into by India with parties to the Convention; (b) “Convention” means the Convention on International Civil Aviation opened for signatures at Chicago on the 7th December, 1944. **3. Exemption from levy of taxes and duties on fuel and lubricants supplied to aircraft of other** **countries.—Where, in pursuance of the Convention or Agreement with any other country or countries, it** is necessary to grant exemption from levy of taxes and duties on fuel and lubricants filled into receptacles forming part of any aircraft of any other country or countries under any law of a State or Union territory in India, the Central Government may, by notification in the Official Gazette, make such provisions as may be necessary for giving effect to the said Convention or Agreement and thereupon the said provision shall apply accordingly and, notwithstanding anything contrary contained in any other law, shall in such application have the force of law in India. 2 -----
3-Jul-2002
39
The Multi-State Co-operative Societies Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/1914/3/A2002-39.pdf
central
# THE MULTI-STATE CO-OPERATIVE SOCIETIES ACT, 2002 _____________ # ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Application. 3. Definitions. CHAPTER II CENTRAL REGISTRAR AND REGISTRATION OF MULTI-STATE CO-OPERATIVE SOCIETIES 4. Central Registrar. 5. Multi-State co-operative societies which may be registered. 6. Application for registration. 7. Registration. 8. Registration certificate. 9. Multi-State co-operative society to be body corporate. 10. Bye-laws of multi-State co-operative societies. 11. Amendment of bye-laws of a multi-State co-operative society. 12. When amendment of bye-laws comes into force. 13. Change of name. 14. Address. 15. Publication of name by multi-State co-operative society. 16. Liability. 17. Amalgamation or transfer of assets and liabilities, or division of multi-State co-operative societies. 18. Central Registrar to prepare scheme of amalgamation or reorganisation of a co-operative bank in certain cases. 19. Promotion of subsidiary institution. 20. Liability of a co-operative bank to Deposit Insurance and Credit Guarantee Corporation. 21. Cancellation of registration certificate of multi-State co-operative societies in certain cases. 22. Conversion of a co-operative society into a multi-State co-operative society. CHAPTER III REGISTRATION AND FUNCTIONS OF FEDERAL CO-OPERATIVES 23. Registration of federal co-operative. 24. Functions of federal co-operative. CHAPTER IV MEMBERS OF MULTI-STATE CO-OPERATIVE SOCIETIES AND THEIR DUTIES, RIGHTS AND LIABILITIES 25. Persons who may become members. 26. Nominal or associate member of society. 27. Educational course for members. 28. Members not to exercise rights till due payment made. 29. Disqualification for member of a multi-State co-operative society. 30. Expulsion of members. 31. Vote of members. ----- SECTIONS 32. Manner of exercising vote. 33. Restriction on holding of shares. 34. Restriction on transfer of shares or interest. 35. Redemption of shares. 36. Transfer of interest on death of members. 37. Liabilities of past member and estate of deceased member. CHAPTER V DIRECTION AND MANAGEMENT OF MULTI-STATE CO-OPERATIVE SOCIETIES 38. Constitution, powers and functions of general body. 39. Annual general meeting of general body. 40. Special general meeting of general body. 41. Board of directors. 42. Association of employees in management decision making process. 43. Disqualifications for being a member of board. 44. Prohibition to hold office of chairperson or president or vice-chairperson or vice-president in certain cases. 45. Establishment of Co-operative Election Authority. 45A. Power of Chairperson. 45B. Removal and suspension of Chairperson, Vice Chairperson and Members. 45C. Disclosure and declaration of interest. 45D. Resignation of Members. 45E. Filling of casual vacancy. 45F. Restriction of reemployment. 45G. Vacancies, etc., not to invalidate proceedings of Authority. 45H. Meetings of Authority. 45-I. Functions of Authority. 45J. Elections of members of board. 45K. Appointment of Returning Officer and other officers. 45L. Power to issue directions. 46. Holding of office in co-operative society. 47. Removal of elected members by general body. 48. Nominee of Central Government or State Government on board. 49. Powers and functions of board. 50. Meeting of board. 51. Chief Executive. 52. Powers and functions of Chief Executive. 53. Committees of board. 54. Securing possession of records, etc. CHAPTER VI PRIVILEGES OF MULTI-STATE CO-OPERATIVE SOCIETIES 55. Charge and set-off in respect of share or contribution or interest of members. 56. Share or contribution or interest not liable to attachment. 57. Register of members. 58. Admissibility of copy of entry as evidence. 59. Exemption from compulsory registration of instruments. 60. Deduction from salary to meet multi-State co-operative society’s claim incertain cases. 61. Government aid to multi-State co-operative societies. ----- CHAPTER VII PROPERTIES AND FUNDS OF MULTI-STATE CO-OPERATIVE SOCIETIES SECTIONS 62. Funds not to be divided by way of profit. 63. Disposal of net profits. 63A. Establishment of Co-operative Rehabilitation, Reconstruction and Development Fund. 63B. Rehabilitation and reconstruction of sick societies. 63C. Financial assistance to multi-State co-operative societies for development. 64. Investment of funds. 65. Restriction on contribution. 66. Restriction on loans. 67. Restrictions on borrowings. 68. Restriction on other transactions with non-members. 69. Contributory provident fund. CHAPTER VIII AUDIT, INQUIRY, INSPECTION AND SURCHARGE 70. Appointment and remuneration of auditors. 70A. Concurrent Audit. 71. Provision as to resolutions for appointing or removing auditors. 72. Qualifications disqualifications of auditors. 73. Powers and duties of auditors. 74. Signature of audit report, etc. 75. Reading and inspection of auditor’s report. 76. Right of auditor to attend general meeting. 77. Power of Central Government to direct special audit in certain cases. 78. Inquiry by Central Registrar. 79. Inspection of multi-State co-operative societies. 80. Inspection of books of indebted multi-State co-operative societies. 81. Costs of inquiry and inspection. 82. Recovery of costs. 83. Repayment, etc. CHAPTER IX SETTLEMENT OF DISPUTES 84. Reference of disputes. 85. Limitation. CHAPTER IXA REDRESSAL OF COMPLAINTS 85A. Co-operative Ombudsman. CHAPTER X WINDING UP OF MULTI-STATE CO-OPERATIVE SOCIETY 86. Winding up of multi-State co-operative societies. 87. Winding up of co-operative bank at the direction of Reserve Bank. 88. Reimbursement to the Deposit Insurance Corporation by liquidator. 89. Liquidator. 90. Powers of liquidator. 91. Disposal of surplus assets. 92. Priority of contributions assessed by liquidator. 93. Power of Central Registrar to cancel registration of a multi-State co-operative society. ----- CHAPTER XI EXECUTION OF DECREES, ORDERS AND DECISIONS SECTIONS 94. Execution of decisions, etc. 95. Execution of orders of liquidators. 96. Attachment before award. 97. Central Registrar or arbitrator or person authorised to be civil court for certain purposes. 98. Recovery of sums due to Government. 98A. Review of decision. CHAPTER XII APPEALS AND REVIEW 99. Appeals. 100. No appeal in certain cases. 101. Review. 102. Interlocutory orders. CHAPTER XIII SOCIETIES WHICH BECOME MULTI-STATE CO-OPERATIVE SOCIETIES CONSEQUENT ON REORGANISATION OF STATES 103. Co-operative societies functioning immediately before reorganisation of States. CHAPTER XIV OFFENCES AND PENALTIES 104. Offences and penalties. 105. Cognizance of offences. 105A. Provisions of this Act not in derogation of any other law. CHAPTER XV MISCELLANEOUS 106. Appointment of Co-operative Information Officer. 106A. Copy of rules and bye-laws, etc., for inspection. 107. Place of keeping and inspection of, registers and returns. 108. Inspection of books of account, etc., of multi-State co-operative society. 109. Annual accounts and balance-sheet. 110. Minutes of proceedings of general meetings and of board and other meetings. 111. Minutes to be evidence. 112. Presumptions to be drawn where minutes duly drawn and signed. 113. Inspection of minutes book of general meetings. 114. Liquidator to be public servant. 115. Notice necessary in suits. 116. Power to amend Schedule. 117. Bar of jurisdiction of courts. 118. Indemnity. 119. Opening of branches. 120. Filing of returns. 120A. Filing of applications, documents, inspections, etc., in electronic form. 120B. Application of Banking Regulation Act, 1949. 121 C t i A t t t l ----- SECTIONS 122. Central Government’s power to give directions to specified multi-State co-operative societies in public interest. 123. Supersession of board of specified multi-State co-operative society. 124. Power to make rules. 125. Power to remove difficulties. 126. Repeal and saving. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. ----- # THE MULTI-STATE CO-OPERATIVE SOCIETIES ACT, 2002 ACT NO. 39 OF 2002 [3rd July, 2002.] # An Act to consolidate and amend the law relating to co-operative societies, with objects not confined to one State and serving the interests of members in more than one State, to facilitate the voluntary formation and democratic functioning of co-operatives as people’s institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and to provide functional autonomy and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Multi-State Co-operative** Societies Act, 2002. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Application.—This Act shall apply to—** (a) all co-operative societies, with objects not confined to one State which were incorporated before the commencement of this Act,— (i) under the Co-operative Societies Act, 1912 (2 of 1912), or (ii) under any other law relating to co-operative societies in force in any State or in pursuance of the Multi-unit Co-operative Societies Act, 1942 (6 of 1942) or the Multi-State Co-operative Societies Act, 1984 (51 of 1984), and the registration of which has not been cancelled before such commencement; and (b) all multi-State co-operative societies. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “area of operation” means the area from which the persons are admitted as members; 2[(aa) “Authority” means the Co-operative Election Authority established under sub-section (1) of section 45;] (b) “board” means the board of directors or the governing body of a multi-State co-operative society, by whatever name called, to which the direction and control of the management of the affairs of the society is entrusted; (c) “bye-laws” means the bye-laws for the time being in force which have been duly registered or deemed to have been registered under this Act and includes amendments thereto which have been duly registered or deemed to have been registered under this Act; (d) “Central Registrar” means the Central Registrar of Co-operative Societies appointed [3][as per clause (f) of article 243ZH of the Constitution read with sub-section (1) of section 4] and includes any officer empowered to exercise the powers of the Central Registrar under sub-section (2) of that section; 1. 19th August, 2002, _vide_ notification No. G.S.R. 571(E), dated 16th August, 2002, _see_ Gazette of India, Extraordinary, Part II, sec. 3(i). ----- (e) “Chief Executive” means a Chief Executive of a multi-State co-operative society appointed under section 51; (f) “co-operative bank” means a multi-State co-operative society which undertakes banking business; 1[(fa) “Co-operative Ombudsman” means the Ombudsman appointed by the Central Government under section 85A;] (g) “co-operative principles” means the co-operative principles specified in the First Schedule; (h) “co-operative society” means a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State; 2* - - - (j) “Deposit Insurance Corporation” means the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961); (k) “federal co-operative” means a federation of co-operative societies registered under this Act and whose membership is available only to a co-operative society or a multi-State co-operative society; 3[(ka) “financial year”, in relation to any multi-State co-operative society or class of such societies, means the year ending on the 31st day of March of the year and where the accounts of such society or class of such societies are, with the previous sanction of the Central Registrar, balanced on any other day, the year ending on such day;] (l) “general body”, in relation to a multi-State co-operative society, means all the members of that society and in relation to a national co-operative society or a federal co-operative means all the delegates of member co-operative societies or delegates of multi-State co-operative societies and includes a body constituted under the first proviso to sub-section (1) of section 38; (m) “general meeting” means a meeting of the general body of a multi-State co-operative society and includes special general meeting; (n) “member” means a person joining in the application for the registration of a multi-State co-operative society and includes a person admitted to membership after such registration in accordance with the provisions of this Act, the rules and the bye-laws; (o) “member co-operative” means a co-operative society or a multi-State co-operative society which is member of a federal co-operative; (p) “multi-State co-operative society” means a society registered or deemed to be registered under this Act and includes a national co-operative society and a Federal co-operative; (q) “multi-State co-operative society with limited liability” means a society having the liability of its members limited by its bye-laws to the amount, if any, unpaid on the shares, respectively, held by them or to such amount as they may, respectively, thereby undertake to contribute to the assets of the society, in the event of its being wound up; (r) “national co-operative society” means a multi-State co-operative society specified in the Second Schedule; (s) “notification” means a notification published in the Official Gazette [3][and the expression ‘notified’ with its cognate meanings and grammatical variations shall be construed accordingly;] (t) “officer” means a president, vice-president, chairperson, vice-chairperson, managing director, secretary, manager, member of a board, treasurer, liquidator, an administrator appointed under section 123 and includes any other person empowered under this Act or the rules or the bye-laws to give directions in regard to the business of a multi-State co-operative society; (u) “prescribed” means prescribed by rules; 1. Ins. by Act 11 of 2023, s. 2, (w.e.f. 3-8-2023). ----- (v) “Reserve Bank” means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934); (w) “rules” means the rules made under this Act. CHAPTER II CENTRAL REGISTRAR AND REGISTRATION OF MULTI-STATE CO-OPERATIVE SOCIETIES **4. Central Registrar.—(1) The Central Government may appoint a person to be the Central Registrar** of Co-operative Societies and may appoint such other persons as it may think fit to assist the Central Registrar. (2) The Central Government may, by notification, direct that any power exercisable by the Central Registrar under this Act (other than the power of registration of a multi-State co-operative society) shall, in relation to such society, and such matters as may be specified in the notification, be exercisable also by any other officer of the Central Government or of a State Government as may be authorised by the Central Government subject to such conditions as may be specified therein: Provided that no officer of a State Government shall be empowered to exercise such power in relation to a national co-operative society. **5. Multi-State co-operative societies which may be registered.—(1) No multi-State co-operative** society shall be registered under this Act, unless,— (a) its main objects are to serve the interests of members in more than one state; and (b) its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the co-operative principles. (2) The word “limited” or its equivalent in any Indian language shall be suffixed to the name of every multi-State co-operative society registered under this Act with limited liability. **6. Application for registration.—(1) For the purposes of registration of a multi-State co-operative** society under this Act, an application shall be made to the Central Registrar in such form and with such particulars as may be prescribed. (2) The application shall be signed,— (a) in the case of a multi-State co-operative society of which all the members are individuals, by at least fifty persons from each of the state concerned; (b) in the case of a multi-State co-operative society of which the members are co-operative societies, by duly authorised representatives on behalf of at least five such societies as are not registered in the same State; and (c) in the case of a multi-State co-operative society of which another multi-State co-operative society and other co-operative societies are members, by duly authorised representatives of each of such societies: Provided that not less than two of the co-operative societies referred to in this clause, shall be such as are not registered in the same State; (d) in the case of a multi-State co-operative society of which the members are co-operative societies or multi-State co-operative societies and individuals, by at least— (i) fifty persons, being individuals, from each of the two States or more; and (ii) one co-operative society each from two States or more or one multi-State co-operative society. (3) The application shall be accompanied by four copies of the proposed bye-laws of the multi-State co-operative society and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Central Registrar may require. **7. Registration.—(1) If the Central Registrar is satisfied—** (a) that the application complies with the provisions of this Act and the rules; ----- (b) that the proposed multi-State co-operative society satisfies the basic criterion that its objects are to serve the interests of members in more than one state; (c) that its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the co-operative principles; (d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules, he may register the multi-State co-operative society and its bye-laws. 1[(2) Without prejudice to the provisions of sub-section (1), the Central Registrar may register a multi-State co-operative society if the aggregate value of the paid-up capital and provision of reserves along with liquidity, exposure and other prudential norms specified in bye-laws of the proposed multi-State co-operative society in the business of thrift and credit are in accordance with such guidelines as may be prescribed: Provided that the multi-State co-operative societies registered before the commencement of the Multi-State Co-operative Societies (Amendment) Act, 2023 shall meet such norms within a period of five years from the date of commencement of the said Act: Provided further that if the liquidity, exposure, prudential and other parameters of the multi-State credit society do not meet such norms within the period mentioned above, the Central Registrar shall have powers to issue such directions as it deems appropriate to such society to take relevant action: Provided also that in the case of multi-State co-operative bank, the aggregate value of the paid-up capital and provision of reserves along with liquidity norms provided in the bye-laws shall be such as may be laid down by the Reserve Bank from time to time. (3) The application for registration shall be disposed of by the Central Registrar within a period of three months from the date of receipt of such application by him: Provided that the Central Registrar may, for rectification of mistakes, if any, in the application, extend the period of three months with such further period, for reasons to be recorded in writing, not exceeding two months on the request of the applicant. (4) Where the Central Registrar refuses to register a multi-State co-operative society, he shall communicate the order of such refusal stating therein the reasons for such refusal, to the applicant within the period specified in sub-section (3): Provided that no order of refusal shall be made, unless the applicant has been given an opportunity of being heard: Provided further that if the application for registration is not disposed of within the period specified in sub-section (3) or the Central Registrar fails to communicate the order of refusal within the said period, the application shall be deemed to have been accepted for registration and the Central Registrar shall issue the registration certificate in accordance with the provisions of this Act and the rules made thereunder.] **8. Registration certificate.—Where a multi-State co-operative society is registered under this Act,** the Central Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the registration of the society has been cancelled. **9. Multi-State co-operative society to be body corporate.—(1) The registration of a multi-State** co-operative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to acquire, hold and dispose of property, both movable and immovable, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purpose for which it is constituted, and shall, by the said name, sue or be sued. (2) All transactions entered into in good faith prior to the registration of a multi-State co-operative society shall be deemed to be its transactions after registration for furtherance of the objects of its registration. ----- **10. Bye-laws of multi-State co-operative societies.—(1) Every multi-State co-operative society may** make its bye-laws consistent with the provisions of this Act and the rules made thereunder. (2) In particular and without prejudice to the generality of the foregoing power, such bye-laws may provide for all or any of the following matters, namely:— (a) the name, [1][address, including e-mail address] and area of operation of the society; (b) the objects of the society; (c) the services to be provided to its members; (d) the eligibility for obtaining membership; (e) the procedure for obtaining membership; (f) the conditions for continuing as member; (g) the procedure for withdrawal of membership; (h) the transfer of membership; (i) the procedure for expulsion from membership; (j) the rights and duties of the members; (k) the nature and amount of capital of the society; (l) the manner in which the maximum capital to which a single member can subscribe; (m) the sources from which the funds may be raised by the multi-State co-operative society; (n) the purpose for which the funds may be applied; (o) the manner of allocation or disbursement of net profits of the multi-State co-operative society; (p) the constitution of various reserves; (q) the manner of convening general meetings and quorum thereof other than those provided under this Act; (r) the procedure for notice and manner of voting, in general and other meetings; (s) the procedure for amending the bye-laws; (t) the number of members of the board not exceeding twenty-one; (u) the tenure, of directors, chairperson and other office bearers of the society, not exceeding five years; (v) the procedure for removal of members of the board and for filling up of vacancies; (w) the manner of convening board meetings, its quorum, number of such meetings in a year and venue of such meetings; (x) the frequency of board meetings; (y) the powers and functions of the Chief Executive in addition to those provided under section 52; (z) the manner of imposing the penalty; (za) the appointment, rights and duties of auditors and procedure for conduct of audit; (zb) the authorisation of officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the society; (zc) the terms on which a multi-State co-operative society may deal with persons other than members; (zd) the terms on which a multi-State co-operative society may associate with other co-operative societies; ----- (ze) the terms on which a multi-State co-operative society may deal with organisation other than co-operative societies; (zf) the rights, if any, which the multi-State co-operative society may confer on any other multi-State co-operative society or federal co-operative and the circumstances under which such rights may be exercised by the federal co-operative; (zg) the procedure and manner for transfer of shares and interest in the name of a nominee in case of death of a member; (zh) the educational and training programmes to be conducted by the multi-State co-operative society; (zi) the principal place and other places of business of multi-State co-operative society; (zj) the minimum level of services, to be used by its members; (zk) any other matter which may be prescribed. **11. Amendment of bye-laws of a multi-State co-operative society.—(1) No amendment of any** bye-law of a multi-State co-operative society shall be valid, unless such amendment has been registered under this Act. (2) The amendment to the bye-laws of a multi-State co-operative society shall be made by a resolution passed by a two-third majority of the members present and voting at general meeting of the society. (3) No such resolution shall be valid unless fifteen clear days’ notice of the proposed amendment has been given to the members. (4) In every case in which a multi-State co-operative society proposes to amend its bye-laws, an application to register such amendments shall be made to the Central Registrar together with— (a) a copy of the resolution referred to in sub-section (2); (b) a statement containing the particulars indicating— (i) the date of the general meeting at which the amendments to the bye-laws were made; (ii) the number of days’ notice given to convene the general meeting; (iii) the total number of members of the multi-State co-operative society; (iv) the quorum required for such meeting; (v) the number of members present at the meeting; # (vi) the number of members who voted in such meeting; (vii) the number of members who voted in favour of such amendments to bye-laws; (c) a copy of the relevant bye-laws in force with the amendment proposed to be made together with reasons justifying such amendments; (d) four copies of the text of the bye-laws incorporating therein the proposed amendments signed by the officer duly authorised in this behalf by the general body; (e) a copy of the notice given to the members and the proposal to amend the bye-laws; (f) a certificate signed by the person who presided at the general meeting certifying that the procedure specified in sub-sections (2) and (3) and the bye-laws had been followed; (g) any other particular which may be required by the Central Registrar in this behalf. (5) Every such application shall be made within sixty days from the date of the general meeting at which such amendment to the bye-laws was passed. (6) The procedure given in sub-sections (2) to (5) of this section shall apply to the amendment of the bye-laws of a co-operative society desiring to convert itself into a multi-State co-operative society as per the provisions of section 22. ----- (7) If, on receipt of application under sub-section (5), the Central Registrar is satisfied that the proposed amendment— (a) is not contrary to the provisions of this Act or of the rules; (b) does not conflict with co-operative principles; and (c) will promote the economic interests of the members of the multi-State co-operative society, he may register the amendment within a period of three months from the date of receipt thereof by him. (8) The Central Registrar shall forward to the multi-State co-operative society a copy of the registered amendment together with a certificate signed by him within a period of one month from the date of registration thereof and such certificate shall be conclusive evidence that the amendment has been duly registered. (9) Where the Central Registrar refuses to register an amendment of the bye-laws of a multi-State co-operative society, he shall communicate the order of refusal together with the reasons therefore to the Chief Executive of the society in the manner prescribed within fifteen days from the date of such refusal: Provided that if the application for registration is not disposed of within a period of three months specified in sub-section (7) or the Central Registrar fails to communicate the order of refusal within that period, the application shall be deemed to have been accepted for registration and the Central Registrar shall issue registration certificate in accordance with the provisions of this Act. **12. When amendment of bye-laws comes into force.—An amendment of the bye-laws of a** multi-State co-operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered. **13. Change of name.—(1) A multi-State co-operative society may, by an amendment of its bye-laws,** change its name but such change shall not affect any right or obligation of the multi-State co-operative society or of any of its members or past members, and any legal proceedings which might have been continued or commenced by or against the multi-State co-operative society by its former name, may be continued or commenced by or against its new name. (2) Where a multi-State co-operative society changes its name, the Central Registrar shall enter the new name on the register of multi-State co-operative society in place of the former name and shall amend the certificate of registration accordingly. **14. [1][Address].—Every multi-State co-operative society shall have principal place of business and an** 2[address, including e-mail address] registered in the manner prescribed to which all notices and communications may be sent. **15. Publication of name by multi-State co-operative society.—Every multi-State co-operative** society— (a) shall paint or affix its name and the address of its registered office and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in conspicuous position, in letters easily legible; and if the characters employed therefore are not those of the language, or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages; (b) shall have its name engraven in legible characters on its seal; and (c) shall have its name and the address of its registered office mentioned in legible characters in all its business letters, in all its bill heads and letter paper, and in all its notices and other official publications; and also have its name so mentioned in all bills of exchange, hundies, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the multi-State co-operative society, and in all bills of parcels, invoices, receipts and letters of credit of the multi-State co-operative society. **16. Liability.—(1) No multi-State co-operative society with unlimited liability shall be registered** after the commencement of this Act: ----- Provided that where a multi-State co-operative society with unlimited liability was functioning before the commencement of this Act, such a society shall exercise the option within a period of one year from such commencement either to continue to function as such or to convert itself into a multi-State co-operative society with limited liability by following the procedure specified in sub-sections (2) to (4). (2) Subject to the provisions of this Act and the rules, a multi-State co-operative society may, by an amendment of its bye-laws, change the extent of its liability. (3) When a multi-State co-operative society has passed a resolution to change the extent of its liability, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor shall, during the period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be. (4) Any member or creditor who does not exercise his option within the period specified in sub-section (3) shall be deemed to have assented to the change. (5) An amendment of a bye-law of a multi-State co-operative society changing the extent of its liability shall not be registered or shall not take effect until either— (a) the assent thereto of all members and creditors has been obtained; or (b) all claims of members and creditors who exercise the option referred to in sub-section (3) within the period specified therein have been met in full or otherwise satisfied. **17. Amalgamation or transfer of assets and liabilities, or division of multi-State co-operative** **societies.—(1) A multi-State co-operative society may, by a resolution passed by a majority of not less** than two-thirds of the members, present and voting at a general meeting of the society held for the purpose,— (a) transfer its assets and liabilities in whole or in part to any other multi-State co-operative society or co-operative society; (b) divide itself into two or more multi-State co-operative societies; (c) divide itself into two or more co-operative societies. (2) Any two or more multi-State co-operative societies may, by are solution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new multi-State co-operative society. (3) The resolution of a multi-State co-operative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer or division or amalgamation, as the case may be. (4) When a multi-State co-operative society has passed a resolution under sub-section (1) or sub-section (2), it shall give notice thereof in writing to all the members and creditors, and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor shall, during the period of one month of the date of service of the notice upon him, have the option of withdrawing his share, deposits or loans, as the case may be. (5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented to the proposals contained in the resolution. (6) (a) A resolution passed by a multi-State co-operative society under this section shall not take effect until the assent thereto of all the members and creditors has been obtained. (b) The multi-State co-operative society shall make arrangements for meeting in full or otherwise satisfying all claims of the members and creditors who exercise the option within the period specified in sub-section (4). (7) On receipt of an application for the registration of new societies formed by division in accordance with the resolution passed under sub-section (1) or of a new society formed by amalgamation in accordance with the resolution passed under sub-section (2), the Central Registrar, on being satisfied that the resolution has become effective under sub-section (6) shall, unless for reasons to be recorded in writing he thinks fit to refuse so to do, Register the new society or societies, as the case may be, and the bye-laws thereof. ----- (8) On the issue of an order under sub-section (7), the provisions of section 21 shall, so far as may be, apply to the multi-State co-operative society so divided or the multi-State co-operative societies so amalgamated. (9) Where a resolution passed by a multi-State co-operative society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any other law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance. 1[(10) Any co-operative society may, by a resolution passed by majority of not less than two-thirds of the members present and voting at a general meeting of such society, decide to merge into an existing multi-State co-operative society: Provided that such resolution shall be subject to the provisions of the respective State Co-operative Societies Act for the time being in force under which such co-operative society is registered.] **18. Central Registrar to prepare scheme of amalgamation or reorganisation of a co-operative** **bank in certain cases.—When an order of moratorium has been made by the Central Government under** sub-section (2) of section 45 of the Banking Regulation Act, 1949 (10 of 1949) in respect of a co-operative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme— (a) for the amalgamation of the co-operative bank with any other co-operative bank; or (b) for the reorganisation of the co-operative bank. **19. Promotion of subsidiary institution.—(1) Any multi-State co-operative society may, by a** resolution passed at general meeting by a majority of members present and voting, promote one or more subsidiary institutions, which may be registered under any law for the time being in force, for the furtherance of its stated objects. (2) Any subsidiary institution promoted under sub-section (1) shall exist only as long as general body of the multi-State co-operative society deems its existence necessary: Provided that a multi-State co-operative society while promoting such a subsidiary institution, shall not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated objects. _Explanation.—For the purposes of this section,—_ (a) an institution shall be deemed to be a subsidiary institution if the multi-State co-operative society— (i) controls the management or board of directors or members of governing body of such institution; or (ii) holds more than half in nominal value of equity shares of such institutions; [2]*** [3]* - - - (b) a subsidiary institution shall not include a partnership firm. (3) The annual reports and accounts of any such subsidiary institution shall be placed each year before general meeting of the promoting multi-State co-operative society. **20. Liability of a co-operative bank to deposit insurance and credit guarantee corporation.—** Notwithstanding anything contained in section 17 or any other provision of this Act, where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act,1961 (47 of 1961), is amalgamated or reorganised and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of that Act, the bank with which such insured bank is amalgamated or the new co-operative bank formed after such amalgamation, or, as the case may be, the insured bank or transferee bank shall be under an 1. Ins. by Act 11 of 2023, s. 6 (w.e.f. 3-8-2023). ----- obligation to repay to the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961. **21. Cancellation of registration certificate of multi-State co-operative societies in certain** **cases.—(1) Where the whole of the assets and liabilities of a multi-State co-operative society are** transferred to another multi-State co-operative society or to a co-operative society in accordance with the provisions of section 17, the registration of the first mentioned multi-State co-operative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body. (2) Where two or more multi-State co-operative societies are amalgamated into a new multi-State co-operative society in accordance with the provisions of section 17, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each of the amalgamating societies shall be deemed to have been dissolved and shall cease to exist as a corporate body. (3) Where a multi-State co-operative society divides itself into two or more multi-State co-operative societies or two or more co-operative societies in accordance with the provisions of section 17, the registration of that society shall stand cancelled on the registration of the new societies and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body. (4) The amalgamation or division of multi-State co-operative societies shall not in any manner whatsoever affect any right or obligation of the resulting multi-State co-operative society or societies or render defective any legal proceedings by or against the multi-State co-operative society or societies, and any legal proceedings that might have been continued or commenced by or against the multistate co-operative society or societies, as the case may be, before the amalgamation or division, may be continued or commenced by or against the resulting multi-State co-operative society or societies. **22. Conversion of a co-operative society into a multi-State co-operative society.—(1) A co-** operative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi-State co-operative society: Provided that no such amendment of bye-laws of a co-operative society shall be valid unless it has been registered by the Central Registrar. (2) (a) Every proposal for such amendment of bye-laws shall be forwarded to the Central Registrar in accordance with the provisions contained in sub-section (4) of section 11. (b) If the Central Registrar, after consulting the Registrars of Co-operative Societies of the States concerned, has satisfied himself that such amendment— (i) fulfils the requirements of the members being from more than one State; (ii) is in accordance with the provisions contained in sub-section (4) of section 11, he may register the amendment within a period of six months from the date of receipt thereof by him: Provided that no co-operative society shall be deemed to have been converted into a multi-State co-operative society on any ground whatsoever unless such society is registered as a multi-State co-operative society. (3) The Central Registrar shall forward to the co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been registered. (4) Where the Central Registrar refuses to register an amendment of the bye-laws of a co-operative society, he shall communicate the order of refusal together with the reasons therefore to the society in the manner prescribed within seven days from the date of refusal. (5)(a) Once the amendment of bye-laws has been registered by the Central Registrar, the co-operative society shall, as from the date of registration of amendment, become a multi-State co-operative society. ----- (b) The Central Registrar shall forward to the co-operative society a certificate signed by him to the effect that such society has been registered as a multi-State co-operative society under this Act and also forward a copy of the same to the Registrar of Co-operative Societies of the State concerned. 1[(c) the co-operative society shall be deemed to have been de-registered under the law relating to such co-operative society for the time being in force in that State, from the date of the certificate as issued by the Central Registrar and forwarded to such co-operative society, along with a copy of the registered amendment under sub-section (3).] CHAPTER III REGISTRATION AND FUNCTIONS OF FEDERAL CO-OPERATIVES **23. Registration of federal co-operative.—(1) Every federal co-operative shall obtain registration** certificate in accordance with the provisions of this Act. (2) Every federal co-operative shall in its general meeting be represented by its member co-operative. (3) The classification of federal co-operative and other terms and conditions applicable to it shall be such as may be prescribed. (4) All provisions of this Act, applicable to a multi-State co-operative society shall, as far as may be, apply to a federal co-operative. **24. Functions of federal co-operative.—(1) Subject to the provisions of this Act and any other law** for the time being in force, a federal co-operative may discharge the functions to facilitate the voluntary formation and democratic functioning of co-operative societies as federal co-operative or multi-State co-operatives based on self-help and mutual aid. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the federal co-operative may— (a) ensure compliance of the co-operative principles; (b) make model bye-laws and policies for consideration of its member co-operative; (c) provide specialised training, education and data-base information; (d) undertake research, evaluation and assist in preparation of perspective development plans for its member co-operative; (e) promote harmonious relations amongst member co-operative; (f) help member co-operative to settle disputes among themselves; (g) undertake business services on behalf of its member co-operative, if specifically required by or under the resolution of the general body or the board, or bye-laws of a member co-operative; (h) provide management development services to a member co-operative; (i) evolve code of conduct for observance by a member co-operative; (j) evolve viability norms for a member co-operative; (k) provide legal aid and advice to a member co-operative; (l) assist member co-operative in organising self-help; (m) develop market information system, logo brand promotion, quality control and technology upgradation. ----- CHAPTER IV MEMBERS OF MULTI-STATE CO-OPERATIVE SOCIETIES AND THEIR DUTIES, RIGHTS AND LIABILITIES **25. Persons who may become members.—(1) No person shall be admitted as a member of a** multi-State co-operative society except the following, namely:— (a) an individual, competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872); (b) any multi-State co-operative society or any co-operative society; (c) the Central Government; (d) a State Government; (e) the National Co-operative Development Corporation established under the National Co-operative Development Corporation Act, 1962 (26 of 1962); (f) any other corporation owned or controlled by the Government; (g) any Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956); (h) such class or classes of persons or association of persons as may be permitted by the Central Registrar having regard to the nature and activities of a multi-State co-operative society. (2) No individual person shall be eligible for admission as a member of a national co-operative society or a federal co-operative. (3) Any person eligible for membership of a multi-State co-operative society may, on his application, be admitted as a member by such society. (4) Every application for admission as a member of a multi-State co-operative society shall be disposed of by such society within a period of four months from the date of receipt of the application, and the decision of such society on the application shall be communicated to the applicant within fifteen days from the date of such decision: Provided that if the application is not disposed of within the period aforesaid, or the decision is not communicated within a period of fifteen days of the expiry of the aforesaid period of four months, the multi-State co-operative society shall be deemed to have made a decision, on the date of expiry of such period, refusing admission to the applicant. (5) It shall be the duty of every member of a multi-State co-operative society to promote and protect the interests and objects of such society. **26. Nominal or associate member of society.—A multi-State co-operative society may, if provided** in its bye-laws, admit a person as nominal or associate member: Provided that no such nominal or associate member shall [1]*** have any interest in the management thereof including right to vote, elect as a director of the board or participate in the general body meetings. 2[Provided further that nominal or associate member can be issued non-voting shares which may not confer any interest in the management of the multi-State co-operative society including right to vote, to be elected as a director of the board or participate in the general body meetings: Provided also that in case of multi-State co-operative bank, such shares shall be issued in accordance with the instructions issued by the Reserve Bank from time to time.] **27. Educational course for members.—(1) Every multi-State co-operative society shall organise** co-operative education programmes for its members, directors and employees. (2) Every multi-State co-operative society may provide funds for such co-operative education programmes. ----- **28. Members not to exercise rights till due payment made.—No member of a multi-State** co-operative society shall exercise the rights of a member, unless he has made the payment [1][of all dues to the multi-State co-operative society including the payment in respect of membership or has availed such minimum level of product or services as specified in the bye-laws,] or has acquired such interest in the society, as may be specified in the bye-laws. **29. Disqualification for member of a multi-State co-operative society.—No person shall be** eligible for being a member of a multi-State co-operative society if— (a) his business is in conflict or competitive with the business of such multi-State co-operative society; or 2[(b) he fails to use the minimum level of the products or services as specified in the bye-laws for two consecutive years; or] (c) he has not attended three consecutive general meetings of the multi-State co-operative society and such absence has not been condoned by the members in the general meeting; or (d) he has made any default in payment of any amount to be paid to the multi-State co-operative society under the bye-laws of such society. **30. Expulsion of members.—(1) A multi-State co-operative society may, by resolution passed by a** majority of not less than two-thirds of the members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the society: Provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity of making representation in the matter. (2) No member of the multi-State co-operative society who has been expelled under sub-section (1), shall be eligible for re-admission as a member of that society, for a period of [3][three years] from the date of such expulsion. **31. Vote of members.—Every member of a multi-State co-operative society, including a member** who is an employee of such society, shall have one vote in the affairs of the society: Provided that— (a) a member who is an employee of such society shall not be entitled to vote— (i) at the election of a member of the board of such society; (ii) in any general meeting convened for framing the bye-laws of such society or any amendments thereto; (b) in the case of an equality of votes, the chairperson shall have a casting vote; (c) where any of the authorities, multi-State co-operative society or a co-operative society referred to in clauses (b) to (g) of sub-section (1) of section 25 is a member of a multi-State co-operative society, each person nominated by such authority or society, on the board in accordance with the provisions contained in this Act and the rules, shall, have one vote; (d) a multi-State co-operative society, the membership of which include co-operative societies or other multi-State co-operative societies, may provide in its bye-laws for an equitable system of voting having regard to the membership of, and the extent of business carried on, by such co-operative societies or multi-State co-operative societies. **32. Manner of exercising vote.—Every member of a multi-State co-operative society shall exercise** his vote in person and no member shall be permitted to vote by proxy: Provided that a multi-State co-operative society or a co-operative society or any other institution which is a member of any other multi-State co-operative society may, subject to the provisions of sub-section (3) of section 38 and the rules, appoint its representative to vote on its behalf in the affairs of such multi-State co-operative society. 1. Subs. by Act 11 of 2023, s. 10, for “to the society in respect of membership,” (w.e.f. 3-8-2023). ----- **33. Restriction on holding of shares.—No member, other than the authorities referred to in** clauses (c) to (g) of sub-section (1) of section 25 or a multi-State co-operative society or a co-operative society, shall hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed in the rules or bye-laws of such multi-State co-operative society. **34. Restriction on transfer of shares or interest.—The transfer of share or interest of a member in** the capital of a multi-State co-operative society shall be subject to such conditions as to maximum holding as specified in section 33. 1[35. Redemption of shares.—(1) The shares of the authorities referred to in clauses (c) and (d) of sub-section (1) of section 25, held in multi-State co-operative societies,–– (a) shall not be redeemed without the prior approval of such authorities; and (b) may be redeemed in such manner as may be agreed upon between the multi-State co-operative society and such authorities. (2) The shares held in a multi-State co-operative society by any of the authorities referred to in clauses (e) to (g) of sub-section (1) of section 25, shall be redeemed in accordance with the bye-laws of such multi-State co-operative society and in case, where the bye-laws do not contain any provision, in such manner as may be agreed upon between the multi-State co-operative society and such authorities. (3) The redemption of shares referred to in sub-sections (1) and (2), shall be on the face value of shares.] **36. Transfer of interest on death of members.—(1) On the death of a member, a multi-State** co-operative society may transfer the share or interest of the deceased member to the person nominated in accordance with the bye-laws made in this behalf or, if there is no person nominated, to such person as may appear to the board to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member’s share or interest as ascertained in accordance with the rules: Provided that no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be. (2) A multi-State co-operative society shall, unless within six months of the death of the member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society. (3) All transfers and payments made by a multi-State co-operative society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person. **37. Liabilities of past member and estate of deceased member.—(1) Subject to the provisions of** sub-section (2), the liability of a past member or of the estate of a deceased member of a multi-State co-operative society for the debts of the society as they existed,— (a) in the case of a past member, on the date on which he ceased to be a member; (b) in the case of a deceased member, on the date of his death, shall continue for a period of two years from such date. (2) Notwithstanding anything contained in sub-section (1), where a multi-State co-operative society is ordered to be wound up under section 86, the liability of a past member who ceased to be a member or of the estate of a deceased member who died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed on the date of cessation of membership or death, as the case may be. ----- CHAPTER V DIRECTION AND MANAGEMENT OF MULTI-STATE CO-OPERATIVE SOCIETIES **38. Constitution, powers and functions of general body.—(1) The general body of a multi-State** co-operative society shall consist of all the members of such society: Provided that where the bye-laws of a multi-State co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such bye-laws, that smaller body shall exercise such powers of the general body as may be prescribed or as maybe specified in the bye-laws of the society. (2) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a multi-State co-operative society shall vest in the general body of its members: Provided that nothing contained in this sub-section shall affect the exercise by the board or any officer of a multi-State co-operative society of any power conferred on such board or such officer by this Act or the rules or the bye-laws. (3) Where in any meeting of the general body or the board of a multi-State co-operative society, a co-operative society or another multi-State co-operative society is to be represented, such co-operative society or other multi-State co-operative society shall be represented in such meeting only through the Chairperson or the President or the Chief Executive or a member of the board of such co-operative society or other multi-State co-operative society, as the case may be, if such member is so authorised by the board and where there is no board of such co-operative society or other multi-State co-operative society, for whatever reasons, through the administrator, by whatever name called, of such co-operative society or other multi-State co-operative society: Provided that where the bye-laws of a multi-State co-operative society provide for representation of other institutions in any meeting of general body or the board of such multi-State co-operative society, such institutions shall be represented through its nominee. **39. Annual general meeting of general body.—(1) The board of every multi-State co-operative** society shall, within such period as may be prescribed, and not later than six months after the close of the corresponding year, call the annual general meeting in the manner prescribed for the purpose of— (a) consideration of the audited statement of accounts; (b) consideration of the audit report and annual report; (c) consideration of audit compliance report; (d) disposal of net profits; (e) review of operational deficit, if any; (f) creation of specific reserves and other funds; (g) approval of the annual budget; (h) review of actual utilisation of reserve and other funds; (i) approval of the long-term perspective plan and the annual operational plan; (j) review of annual report and accounts of subsidiary institution, if any; (k) expulsion of members; (l) list of employees who are relatives of members of the board or of the Chief Executive; (m) amendment of bye-laws, if any; (n) formulation of code of conduct for the members of the board and officers; (o) election of members of the board, if any. 1[(p) appointment of auditor.] ----- (2) Where the board of a multi-State co-operative society fails to convene the annual general meeting within the period specified in sub-section (1), the Central Registrar or the person authorised by him in this behalf shall be competent to convene such annual general meeting within a period of ninety days from the date of expiry of the period mentioned in that sub-section and the expenditure incurred on such meeting shall be borne by the society. (3) At every annual general meeting of a multi-State co-operative society, the board shall lay before the society a statement showing the details of the loans or goods on credit, if any, given to any of the members of the board or to the spouse or a son or daughter of a member of the board during the preceding year or outstanding against him or against such spouse or son or daughter of the member of the board. **40. Special general meeting of general body.—(1) The Chief Executive may, at any time, on the** direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Central Registrar or from such member or members or a proportion of the total number of members, as may be provided in the bye-laws. (2) If a special general meeting of a multi-State co-operative society is not called in accordance with the requisition referred to in sub-section (1), the Central Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the Chief Executive in accordance with the provisions of that sub-section and the Central Registrar may order that the expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the special general meeting. **41. Board of directors.—(1) Subject to the provisions of this Act and rules, there shall be a board of** directors for every multi-State co-operative society consisting of such number of members as specified in sub-section (3). (2) The members of a multi-State co-operative society, by a resolution in a general meeting, shall elect directors who shall be members of board. 1[(3) The board shall consist of such number of directors not exceeding twenty-one, as may be specified by the bye-laws, out of which one member shall be Scheduled Caste or Scheduled Tribe and two shall be women in the board of multi-State co-operative society consisting of individuals and having members from such class or category of persons: Provided further that the number of such co-opted members shall not exceed two in addition to twenty-one directors specified in this sub-section. (4) The co-opted directors referred to in sub-section (3) shall not have the right to vote in any election of the office bearers or be eligible to be elected as office bearers of the board. (5) The functional directors in a multi-State co-operative society shall also be the members of the board and such directors shall be excluded for the purpose of counting the total number of directors specified in sub-section (3). (6) No director of a multi-State co-operative society shall, as a director, be present in the discussion of, or vote on, any contract or arrangement entered into, or to be entered into, by or on behalf of such society, if he or his relative is directly or indirectly concerned or interested in such contract or arrangement and no relative of any of the sitting directors of the multi-State co-operative society shall be recruited as employee including the Chief Executive of that society. _Explanation.––For the purposes of this sub-section, the term, “relative” with reference to an_ individual, includes— (a) spouse; (b) father (including step father); (c) mother (including step mother); (d) son (including step son); (e) son’s wife; ----- (f) daughter (including step daughter); (g) daughter’s husband; (h) father’s father; (i) father’s mother; (j) mother’s father; (k) mother’s mother; (l) son’s son; (m) son’s son’s wife; (n) son’s daughter; (o) son’s daughter’s husband; (p) daughter’s son; (q) daughter’s son’s wife; (r) daughter’s daughter; (s) daughter’s daughter’s husband; (t) brother (including step brother); (u) brother’s wife; (v) sister (including step sister); (w) sister’s husband; and (x) Hindu undivided family. (7) Any director of the board who violates the provision of sub-section (6), shall be disqualified for being a member of the board and deemed to have vacated his office from the date of such meeting of the board as is referred to in the said sub-section and such proceedings shall be deemed to be void.] **42. Association of employees in management decision making process.—Every multi-State** co-operative society shall devise such procedure, as may be specified in the bye-laws or in the administrative instructions of such society, for the association of the representatives of employees of such multi-State co-operative societies at such level or bodies as may be specified in the bye-laws or the instructions issued in this regard, in the management decision making process. **43. Disqualifications for being a member of board.—(1) No member of any multi-State** co-operative society or nominee of a member, society or a national co-operative society shall be eligible for being chosen as, or for being, a member of the board of such multi-State co-operative society or a national co-operative society, or of any other co-operative society to which the multi-State co-operatives society is affiliated, if such member— (a) has been adjudged by a competent court to be insolvent [1][or has been a director of an insolvent company] or of unsound mind; (b) is concerned or participates in the profits of any contract with the society; (c) has been convicted for an offence involving moral turpitude; (d) holds any office or place of profit under the society: Provided that the Chief Executive or such full-time employee of the society as may be notified by the Central Government from time to time or a person elected by the employees of such society to represent them on the board of such society shall be eligible for being chosen as, or for being, a member of such board; (e) has been a member of the society for less than twelve months immediately preceding the date of such election or appointment; ----- (f) has interest in any business of the kind carried on by the society of which he is a member; (g) has taken loan or goods on credit from the society of which he is a member, or is otherwise indebted to such society and after the receipt of a notice of default issued to him by such society, has defaulted— (i) in repayment of such loan or debt or in payment of the price of the goods taken on credit, as the case may be, within the date fixed for such repayment or payment or where such date is extended, which in no case shall exceed six months, within the date so extended, or (ii) when such loan or debt or the price of goods taken on credit is to be paid in instalments, in payment of any instalment, and the amount in default or any part thereof has remained unpaid on the expiry of six months from the date of such default: Provided that a member of the board who has ceased to hold office as such under this clause shall not be eligible, for a period of one year, from the date on which he ceased to hold office, for re-election as a member of the board of the multi-State co-operative society of which he was a member or for the election to the board of any other multi-State co-operative society; (h) is a person against whom any amount due under a decree, decision or order is pending recovery under this Act [1][or under any other Act specified in the Third Schedule;] (i) is retained or employed as a legal practitioner on behalf of or against the multi-State co-operative society, or on behalf of or against any other multi-State co-operative society which is a member of the former society. _Explanation.—For the purposes of this clause, “legal practitioner” has the same meaning as in_ clause (i) of sub-section (1) of section 2 of the Advocates Act, 1961 (25 of 1961); (j) has been convicted for any offence under this Act; (k) is disqualified for being a member under section 29; (l) has been expelled as a member under section 30; (m) absents himself from three consecutive board meetings and such absence has not been condoned to by the board; (n) absents himself from three consecutive general body meetings and such absence has not been condoned by the members in the general body. 1[(o) has been disqualified under sub-section (7) of section 41.] 1[(1A) A member who has been a director of the board of any multi-State co-operative society or co-operative bank, where such board has been superseded, shall not be eligible to be elected as director of the board of another multi-State co-operative society or co-operative bank for a period of five years, from the date of such supersession: Provided that no member shall be declared ineligible under this sub-section unless an opportunity of being heard has been given to such member by the Central Registrar and declaration for ineligibility shall be made only after ascertaining that the member concerned has been responsible by acts of omission or commission leading to such supersession.] (2) A person shall not be eligible for being elected as member of board of a multi-State co-operative society for a period of five years if the board of such multi-State co-operative society fails— 2[(a) to provide information, documents, personnel, funds or expenses or any other assistance as required by the Co-operative Election Authority for conducting elections under this Act in such manner as may be prescribed; or] (b) to call the annual general meeting under section 39; or (c) to prepare the financial statement and present the same in the annual [3][general meeting; or] 1. Ins. by Act 11 of 2023, s. 16 (w.e.f. 3-8-2023). ----- 1[(d) to make contribution to the co-operative education fund referred to in clause (b) of sub-section (1) of section 63 or the Co-operative Rehabilitation, Reconstruction and Development Fund established under section 63A; or (d) to make contribution to the co-operative education fund referred to in clause (b) of sub-section (1) of section 63 or the Co-operative Rehabilitation, Reconstruction and Development Fund established under section 63A; or (e) to file annual return specified in section 120 within the time specified therein; or (f) to get the audit of the society conducted within six months of the close of the financial year to which such account relate: Provided that before taking any action under this sub-section, he shall be given an opportunity of being heard by the Central Registrar.] **44. Prohibition to hold office of chairperson or president or vice-chairperson or vice-president** **in certain cases.—(1) No member of a board shall be eligible to be elected as the chairperson or** president or vice-chairperson or vice-president of a multi-State co-operative society if such member is a Minister in the Central Government or a State Government. (2) No member of a board shall be eligible to be elected as the chairperson or president of a multi-State co-operative society, after he has held the office, as such during two consecutive terms, whether full or part: Provided that a member who has ceased to hold the office of the chairperson or president continuously for one full term shall again be eligible for election to the office as such. _Explanation.—Where any member holding the office of the chairperson or president at the_ commencement of this Act is again elected to that office after such commencement, he shall for the purpose of this section, be deemed to have held office for one term before such election. **2[45. Establishment of Cooperative Election Authority.—(1) The Central Government shall, by** notification, establish an Authority to be known as the Co-operative Election Authority which shall consist of a Chairperson, a Vice-Chairperson and Members not exceeding three to be appointed by the Central Government on the recommendation of the Selection Committee consisting of such persons as may be prescribed. (2) The head office of the Authority shall be at such place as may be notified by the Central Government. (3) The election of the members of the board shall be held in the general meeting of the members of the multi-State co-operative society. (i) Chairperson of the Authority unless he held the post of Additional Secretary to the Government of India or equivalent rank; (ii) Vice-Chairperson of the Authority unless he held the post of Joint Secretary to the Government of India or equivalent rank; and (iii) Member unless he fulfils such qualification and experience as may be prescribed (4) The Chairperson, Vice-Chairperson or Member of the Authority shall hold office for a period of three years from the date on which they enter upon their office or until they attain the age of sixty-five years, whichever is earlier and they shall be eligible for re-appointment: Provided that in case of appointment of a Government servant as a Chairperson, Vice-Chairperson or a Member, he shall be treated as an ex officio Member and he shall continue so long as he holds the office by virtue of which he is a Chairperson, Vice-Chairperson or Member. (5) The salaries and allowances payable to, and the other terms and conditions of service of the Chairperson, Vice-Chairperson and Members of the Authority, other than the ex officio Member, shall be such as may be prescribed. ----- **45A. Power of Chairperson.—The Chairperson of the Authority shall have powers of general** superintendence and directions in the conduct of the affairs of the Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such other powers and functions as may be prescribed. **45B. Removal and suspension of Chairperson, Vice Chairperson and Members.—(1) The** Central Government may, by order, remove from office the Chairperson, Vice-Chairperson or Member of the Authority, other than _ex officio Member, if the Chairperson, Vice-Chairperson or Member of the_ Authority, as the case may be,— (a) has been adjudged as an insolvent; (b) has been convicted of an offence which, in the opinion of the Central Government involves moral turpitude; (c) has been physically or mentally incapable of acting as a Chairperson, Vice-Chairperson or Member of the Authority; (d) has acquired such financial or other interests, as is likely to affect prejudicially his function as a Chairperson, Vice-Chairperson or Member of the Authority; (e) has so abused his position, as to render his continuance in office prejudicial to the public interest; or (f) has engaged at any time during his term of office in any other employment. (2) The Chairperson, Vice-Chairperson or Member of the Authority shall not be removed from his office except by an order of the Central Government on the ground of his proved misbehaviour or incapacity after the Central Government has, on an inquiry, held in accordance with the procedure prescribed in this behalf by it, come to the conclusion that the Chairperson, Vice-Chairperson or Member of the Authority ought on any such ground to be removed. (3) The Central Government may suspend the Chairperson, Vice-Chairperson or Member of the Authority in respect of whom an inquiry under sub-section (2) is being initiated or pending until the Central Government has passed an order on receipt of the report of the inquiry. **45C. Disclosure and declaration of interest. —(1) Before appointing any person as Chairperson,** Vice-Chairperson or Member, the Central Government shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such Chairperson, Vice-Chairperson or Member. (2) The Chairperson, Vice-Chairperson or Members shall immediately after entering office and every year thereafter, make a declaration as to the extent of their interest, whether direct or indirect and whether financial or otherwise, in any co-operative society. (3) The declaration so made under sub-section (2) shall be placed in the public domain by the Authority. **45D. Resignation of Members.— The Chairperson, Vice-Chairperson or Members, other than ex** officio Members, may, by notice in writing of not less than thirty days under their hand addressed to the Central Government, resign their office and on such resignation being accepted by that Government, shall be deemed to have vacated their office: Provided that the Chairperson, Vice-Chairperson or Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. **45E. Filling of casual vacancy.— If a casual vacancy occurs in the office of the Chairperson, Vice-** Chairperson or Member of the Authority, whether by reason of his death, resignation or otherwise, such vacancy shall be filled within a period of ninety days by making a fresh appointment in accordance with the provisions of section 45 and the person so appointed shall hold office for the remainder of the term of office for which the Chairperson, Vice-Chairperson or Member of the Authority, as the case may be, in whose place he is so appointed. ----- **45F. Restriction of reemployment.—The Chairperson, Vice-Chairperson and Member of the** Authority, on ceasing to hold office shall not, for a period of two years, accept any employment (including as consultant or otherwise) in any co-operative society: Provided that nothing contained in this section shall apply to any employment under the Central Government or in any State Government or any Corporation established by or under any Central or State Act or a Government Company as defined under clause (45) of section 2 of the Companies Act, 2013 (18 of 2013). **45G. Vacancies, etc., not to invalidate proceedings of Authority.—No act or proceeding of the** Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of the Authority; (b) any defect in the appointment of a person as Chairperson or Member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. **45H. Meetings of Authority.— (1) The Authority shall meet at such places and times and shall** observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings), as may be prescribed. (2) The Chairperson of the Authority shall preside at the meeting of the Authority and if for any reason the Chairperson of the Authority is unable to attend a meeting of the Authority, the ViceChairperson of the Authority shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes of the members present and voting and, in the event of an equality of votes, the Chairperson or the Vice-Chairperson of the Authority presiding shall have the right to exercise a second or casting vote. (4) Save as otherwise provided in sub-section (1), every Member shall have one vote. **45-I. Functions of Authority.— The Authority shall discharge the following functions, namely:––** (i) conduct the elections of the multi-State co-operative society; (ii) supervise, direct and control the matters relating to preparation of electoral rolls; and (iii) such other functions as may be prescribed. **45J. Elections of members of board.— (1) No person shall be eligible to be elected as a member of** the board or office bearer of a multi-State co-operative society, unless he is an active member of the general body of that society. _Explanation.—For the purposes of this sub-section, the term “active member” means any member—_ (i) availing minimum level of products or services of the society; or (ii) attending not less than three consecutive general meetings, as specified in section 29. (2) A member of the board or office bearer of a multi-State co-operative society shall cease to be such member or office bearer, if he ceases to be a member of general body of that society (3) The election of members of board shall be held by secret ballot in such manner as may be prescribed. (4) The election of the members of the board shall be held in the general meeting of the members of the multi-State co-operative society and the elected members of the board shall, if the bye-laws of such society permit, be eligible for re-election. (5) The term of office of elected members of the board and its office bearers shall be five years from the date of election and the term of office bearers shall be co-terminus with the term of the board: Provided that the board may fill casual vacancies up to one-third of number of elected directors on the board by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the term of office of the board is less than half of its original term: ----- Provided further that in case the number of such casual vacancies in the same term of the board exceeds one-third of number of elected directors, such vacancies shall be filled by elections. (6) The expenses for holding elections by the Authority shall be borne by the multi-State co-operative society in such manner as may be prescribed. (7) The Central Government may make rules to provide for the powers and the procedure to be followed by the Authority for conduct of election of members of the board. (8) The Chairperson and the Chief Executive of the multi-State co-operative society shall inform the Authority, six months before the expiry of the term of the existing board, to conduct the elections within time. (9) The multi-State co-operative society in respect of which the election is being held shall provide such infrastructure, personnel, information, documents or other assistance to the Authority as it may require. **45K. Appointment of Returning Officer and other officers.— (1) The Authority may appoint a** Returning Officer to conduct the election of the multi-State co-operative societies and discharge such functions, as directed by the Authority, in such manner as may be prescribed. (2) The Central Government shall provide such staff and officers to the Authority as may be necessary for the efficient discharge of functions by the Authority under the Act. (3) The Authority may appoint,— (a) such observers as it may consider necessary to supervise the elections and discharge such other functions as may be prescribed; and (b) such number of Assistant Returning Officers as it may consider necessary to assist the Returning Officer. **45L. Power to issue directions.— The Authority may, by general or special order, issue such** directions to the board, its members, Chief Executive and other staff of the multi-State co-operative society as may be necessary for the conduct of free and fair elections and the board, its members, Chief Executive and staff of the society shall comply with such directions.] **46. Holding of office in co-operative society.—Notwithstanding anything contained in this Act, no** person shall be eligible to hold, at the same time, office of a president or chairperson or vice-president or vice-chairperson on the board of more than two multi-State co-operative societies. **47. Removal of elected members by general body.—An elected member of a board, who has acted** adversely to the interests of multi-State co-operative society, may on the basis of a report of the Central Registrar or otherwise be removed from the board upon a resolution of the general body passed at its meeting by a majority of not less than two-third of the members present and voting at the meeting: Provided that the member concerned shall not be removed unless he has been given a reasonable opportunity of making a representation in the matter. **48. Nominee of Central Government or State Government on board.—(1) Where the Central** Government or a State Government has subscribed to the share capital of a multi-State co-operative society, the Central Government or the State Government, as the case maybe, or any person authorised by the Central Government or the State Government shall have right to nominate on the board such number of persons as its members on the following basis, namely:— (a) where the total amount of issued equity share capital held by the Central Government or the State Government is less than twenty-six per cent. of the total issued equity share capital, one member of the board; (b) where the total amount of issued equity share capital held by the Central Government or the State Government is twenty-six per cent. or more but less than fifty-one per cent. of the total issued equity share capital, two members of the board; (c) where the total amount of issued equity share capital held by the Central Government or the State Government is fifty-one per cent. or more of the total issued share capital, three members of the board: ----- Provided that the number of such nominated persons shall not exceed one-third of the total number of members of the board: Provided further that where the Central Government or a State Government has guaranteed the repayment of principal and payment of interest on debentures issued by a multi-State co-operative society or has guaranteed the repayment of principal and payment of interest on loans and advances to a multi-State co-operative society or has given any assistance by way of grants or otherwise to a multi-State co-operative society, the Central Government or the State Government in this behalf, as the case may be, or any person authorised by the Central Government, shall have the right to nominate person on the board of such a society in the manner as may be prescribed. (2) A person nominated under this section shall hold office during the pleasure of the Government by which he has been so nominated. **49. Powers and functions of board.—(1) The board may exercise all such powers as may be** necessary or expedient for the purpose of carrying out its functions under this Act. (2) Without prejudice to the generality of the foregoing powers, such powers shall include the power— (a) to admit members; 1[(aa) to elect the Chairperson and Vice-Chairperson or President and Vice-President of the multi-State co-operative society from amongst the elected members of the board in accordance with the directions of the Authority: Provided that the certificate of election shall be issued by the Chief Executive of the multi-State co-operative society after conclusion of resolution by the board;] (b) to interpret the organisational objectives and set-up specific goals to be achieved towards these objectives; (c) to make periodic appraisal of operations; (d) to appoint and remove a Chief Executive and such other employees of the society as are not required to be appointed by the Chief Executive; (e) to make provisions for regulating the appointment of employees of the multi-State co-operative society and the scales of pay, allowances and other conditions of service of, including disciplinary action against such employees; 1[Provided that the recruitment of such employees shall be subject to such procedure as may be prescribed.] (f) to place the annual report, annual financial statements, annual plan and budget for the approval of the general body; (g) to consider audit and compliance report and place the same before the general body; (h) to acquire or dispose of immovable property; (i) to review membership in other co-operatives; (j) to approve annual and supplementary budget; (k) to raise funds; (l) to sanction loans to the members; and (m) to take such other measures or to do such other acts as may be prescribed or required under this Act or the bye-laws or as may be delegated by the general body. **50. Meeting of board.—(1) The Chief Executive shall convene the meetings of the board at the** instance of the chairperson or president of the multi-State co-operative society. ----- 1[Provided that where such Chairperson or President fails to direct the Chief Executive to convene the meeting of the board within the quarter, such Chief Executive shall convene the meeting on the basis of requisition of the Vice-Chairperson or Vice-President or any other Member of the board: Provided further that notwithstanding anything contained in the first proviso, the Chief Executive may also convene the meeting on the basis of requisition from at least fifty per cent. of Members of the board;] (2) The total number of meetings of the board in a year and the venue of meetings as may be specified in the bye-laws: Provided that the board shall meet at least once in every quarter: Provided further that not more than two persons may be invited by the board in its meetings. 2[(3) The Chairperson or President, if for any reason, is unable to attend a meeting of the board, the Vice-Chairperson or Vice-President and in the absence of both, any other Member of the board chosen by the Members of the board present from amongst themselves at the meeting, shall preside over the meeting. (4) The quorum for a meeting of the board of directors of a multi-State co-operative society shall be one-third of its total number of elected directors.] **51. Chief Executive.—(1) There shall be a Chief Executive, by whatever designation called, of every** multi-State co-operative society to be appointed by the board and he shall be a full-time employee of such multi-State co-operative society. 3[(1A) No multi-State co-operative society shall appoint or continue the employment of any person as the Chief Executive who— (a) is below the age of twenty-one years or has attained the age of seventy years: Provided that any person above the age of seventy years may be appointed by a special resolution passed by three-fourth of the board members, in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such person; (b) is an undischarged insolvent or has any time been adjudged as an insolvent; (c) has at any time been convicted by a court of an offence and sentenced for a period of more than six months; or (d) does not meet the criteria for ‘fit and proper’, as determined by the Central Registrar in case of multi-State credit societies or in case of non-credit multi-State societies, does not meet the criteria as Central Government may prescribe in terms of education qualifications and relevant experience.] (2) The Chief Executive shall be a member of the board and of the Executive Committee and such other committees or sub-committees as may be constituted under sub-section (1) of section 53. (3) Where the Central Government or the State Government holds fifty-one per cent. or more of the equity share capital or of total shares of the multi-State co-operative society, the salary and allowances payable to and other terms and conditions of service including pension, gratuity and other retirement benefits of the Chief Executive shall be such as may be prescribed. **52. Powers and functions of Chief Executive.—The Chief Executive shall under the general** superintendence, direction and control of the board, exercise the powers and discharge the functions specified below, namely:— (a) day-to-day management of the business of the multi-State co-operative society; (b) operating the accounts of the multi-State co-operative society and be responsible for making arrangements for safe custody of cash; (c) signing on the documents for and on behalf of the multi-State co-operative society; 1. Ins. by Act 11 of 2023, s. 19 (w.e.f. 3-8-2023). ----- (d) making arrangements for the proper maintenance of various books and records of the multi-State co-operative society and for the correct preparation, timely submission of periodical statements and returns in accordance with the provisions of this Act, the rules and the bye-laws; (e) convening meetings of the general body of the multi-State co-operative society, the board and the Executive Committee and other committees or sub-committees constituted under sub-section (1) of section 53 and maintaining proper records for such meetings; (f) making appointments to the posts in the multi-State co-operative society in accordance with the bye-laws; (g) assisting the board in the formulation of policies, objectives and planning; (h) furnishing to the board periodical information necessary for appraising the operations and functions of the multi-State co-operative society; (i) appoint the person to sue or be sued on behalf of the multi-State co-operative society; (j) present the draft annual report and financial statement for the approval of the board within 1[forty-five days] of closure of the financial year; (k) performing such other duties, and exercising such other powers, as may be specified in the bye-laws of the multi-State co-operative society. **53. Committees of board.—[2][(1) The board may constitute an Executive Committee, and such other** committees or sub-committees as may be specified in the bye-laws of the multi-State co-operative society: Provided that the board shall constitute— (a) an Audit and Ethics Committee; (b) a Committee on prevention of sexual harassment at work place.] (2) The Executive Committee or other committee or sub-committee referred to in sub-section (1) shall perform such functions as are assigned to it in accordance with the bye-laws of the multi-State co-operative society. **54. Securing possession of records, etc.—(1) If—** (a) the records, including registers and books of account of a multi-State co-operative society are likely to be tampered with or destroyed or the funds or other property of such society are likely to be mis-appropriated; or (b) the board of a multi-State co-operative society is reconstituted at a general meeting of the society; or (c) a multi-State co-operative society is ordered to be wound up under section 86 and the outgoing members of the board refuse to handover charge of the records and property of the society to those having or entitled to receive such charge, the Chief Executive may apply to the magistrate within whose jurisdiction the multi-State co-operative society functions for securing the records and property of the society. (2) On receipt of an application under sub-section (1), the magistrate may, by a warrant, authorise any police officer not below the rank of a sub-inspector to enter and search any place where such records and property are kept or are believed to be kept and to seize such records and property; and the records and property so seized shall be handed over to the new board or the liquidator, as the case may be. (3) Every such search and seizure shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974). ----- CHAPTER VI PRIVILEGES OF MULTI-STATE CO-OPERATIVE SOCIETIES **55. Charge and set-off in respect of share or contribution or interest of members.—A multi-State** co-operative society shall have a charge on the share or contribution or interest in the capital and on the deposits of a member or past or deceased member and on any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt due from such member or past member or the estate of such deceased member to the society and may set-off any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt. **56. Share of contribution or interest not liable to attachment.—(1) Subject to the provisions of** section 55, the share or contribution or interest of a member or past or deceased member in the capital of a multi-State co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debtor liability incurred by such member, and an official assignee or a receiver under any law relating to insolvency shall not be entitled to, or have any claim on, such share or contribution or interest. (2) The reserve fund, or the bad debt reserves, or the provident fund of the employees, of a multi-State co-operative society invested by such society in accordance with the provision of this Act and the bye-laws shall not be liable to attachment under any decree or order of a court in respect of any debt or liability incurred by the society. **57. Register of members.—Any register or list of members or shares kept by any multi-State** co-operative society shall be _prima facie evidence of any of the following particulars entered therein,_ namely:— (a) the date on which any person entered in such register or list became a member; and (b) the date on which any such person ceased to be a member. **58. Admissibility of copy of entry as evidence.—(1) A copy of any entry in a book of a multi-State** co-operative society regularly kept in the course of its business shall, if certified in such manner as may be prescribed, be received in any suit or legal proceedings as _prima facie evidence of the existence of_ such entry and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent, as the original entry itself if admissible. (2) No officer of a multi-State co-operative society and no officer in whose office the books of a multi-State co-operative society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society’s books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under an order of a court or an arbitrator made for a special cause. **59. Exemption from compulsory registration of instruments.—Nothing in clauses (b) and (c) of** sub-section (1) of section 17 of the Registration Act, 1908 (16 of 1908) shall apply to— (a) any instrument relating to shares in a multi-State co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or (b) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or (c) an endorsement upon transfer of any debenture issued by any such society. **60. Deduction from salary to meet multi-State co-operative society’ s claim in certain cases.—(1)** Notwithstanding anything contained in any law for the time being in force, a member of a multi-State co-operative society may execute an agreement in favour of that society providing that his employer disbursing his salary or wages shall be competent to deduct every month from the salary or wages payable to him, such amount as may be specified in the agreement and to pay the amount so deducted to the i i i f i f d b h d d h b h i ----- (2) On the execution of such agreement, the employer disbursing the salary or wages of the members shall, if so required by the multi-State co-operative society, by a requisition in writing and so long as the society does not intimate that the whole of such debt or other demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society within a period of fourteen days of the date on which deduction has been made, as if it were a part of the salary or wages payable on the day as required under the Payment of Wages Act, 1936 (4 of 1936), and such payment shall be valid discharge of the employer for his liability to pay the amount deducted. (3) If after the receipt of a requisition made under sub-section (2), the employer disbursing the salary or wages of the member at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the multi-State co-operative society, the society shall be entitled to recover any such amount from such employer as arrears of land revenue and the amount so due from such employer shall rank in priority in respect of the liability of such employer equal to that of the salary or wages in arrears. **61. Government aid to multi-State co-operative societies.—Notwithstanding anything contained in** any law for the time being in force, the Central Government or a State Government, on receipt of request from a multi-State co-operative society and with a view to promoting co-operative movement, may,— (a) subscribe to the share capital of a multi-State co-operative society; (b) give loans or make advances to a multi-State co-operative society; (c) guarantee the repayment of principal and payment of interest on debentures issued by a multi-State co-operative society; (d) guarantee the repayment of share capital of a multi-State co-operative society and dividends thereon at such rates as may be specified by the Central Government or the State Government; (e) guarantee the repayment of principal and payment of interest on loans and advances to a multi-State co-operative society; (f) give financial assistance in any other form, including subsidies, to any multi-State co-operative society; and (g) provide aid to any other multi-State co-operative society on such terms and conditions as may be prescribed. CHAPTER VII PROPERTIES AND FUNDS OF MULTI-STATE CO-OPERATIVE SOCIETIES **62. Funds not to be divided by way of profit.—(1) No part of the funds, other than net profits, of a** multi-State co-operative society shall be divided by way of bonus or dividend or otherwise distributed among its members. (2) The net profits of a multi-State co-operative society referred to in sub-section (1) in respect of a society earning profits shall be calculated by deducting from the gross profit for the year, all interest accrued and accruing in relation to amounts which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under the law relating to payment of bonus for the time being in force, and equalisation fund for such bonus, provision for payment of income-tax and making approved donations under the Income-tax Act, 1961 (43 of 1961), development rebate, provision for development fund, bad debt fund, price fluctuation fund, dividend equalisation fund, share capital redemption fund, investment fluctuation fund, provision for retirement benefits to employees, and after providing for or writing off bad debts and losses not adjusted against any fund created out of profit: Provided that such society may add to the net profits for the year interest accrued in the preceding years, but actually recovered during the year: Provided further that in the case of such multi-State co-operative societies as do not have share capital, the surplus of income over expenditure shall not be treated as net profits and such surplus shall be dealt with in accordance with the bye-laws. ----- **63. Disposal of net profits.—(1) A multi-State co-operative society shall, out of its net profits in any** year,— (a) transfer an amount not less than twenty-five per cent. to the reserve fund; 1[(b) credit annually one per cent. of net profit to co-operative education fund to be maintained by the Central Government in such manner as may be prescribed and the proceeds from such fund shall be used for co-operative education and training through the National Co-operative Union of India and any other agency in such manner as may be determined by the Central Government;] (c) transfer an amount not less than ten per cent. to a reserve fund for meeting unforeseen losses. (2) Subject to such conditions as may be prescribed, the balance of the net profits may be utilised for all or any of the following purposes, namely:— (a) payment of dividend to the members on their paid-up share capital at a rate not exceeding the prescribed limit; (b) constitution of, or contribution to, such special funds including education funds, as may be specified in the bye-laws; (c) donation of amounts not exceeding five per cent. of the net profits for any purpose connected with the development of co-operative movement or charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 (6 of 1890); (d) payment of _ex gratia_ amount to employees of the multi-State co-operative society to the extent and in the manner specified in the bye-laws. 2[63A. Establishment of Co-operative Rehabilitation, Reconstruction and Development **Fund. — (1) The Central Government shall establish a Fund, to be called the Co-operative Rehabilitation,** Reconstruction and Development Fund for revival of sick multi-State co-operative societies as referred to in section 63B and for development purposes in such manner as may be determined by it and there shall be credited to such Fund annually by multi-State co-operative societies which are in profit for the preceding three financial years one crore rupees or one per cent. of the net profits of such multi-State cooperative society, whichever is less. (2) The Central Government shall, by notification, constitute a Committee, consisting of such members as it may deem fit, to administer the Fund, and maintain separate accounts and other relevant records in relation to the Fund in such form as may be specified by the Central Government in consultation with the Comptroller and Auditor-General of India. (3) The Committee shall spend the money out of the Fund for carrying out the objects for which such Fund has been established. **63B. Rehabilitation and reconstruction of sick societies.— (1) If, at any time, the Central** Registrar, is of the opinion that a multi-State co-operative society has become sick, he may, by an order, declare such society as sick co-operative society. (2) Where a multi-State co-operative society is declared as a sick co-operative society under sub-section (1), the Central Government or any person or agency authorised by it, may prepare a scheme for rehabilitation and reconstruction of the society and hand it over to the society for approval of the general body. (3) The Central Government may, on the recommendation of the general body and to give effect to the scheme for rehabilitation and reconstruction referred to in sub-section (2), re-organise the board of such society with such persons, having experience in the field of co-operation, management, finance, accountancy and any other area relating to such societies as may be recommended by the general body: Provided that in respect of a sick multi-State co-operative bank, any scheme for rehabilitation or reconstruction shall be done with the prior approval of the Reserve Bank. _Explanation.––For the purposes of this section, the expression “sick co-operative society” means a_ multi-State co-operative society being a society registered under the provisions of this Act which has at the end of any financial year accumulated losses equal to or exceeding total of its paid-up capital, free ----- reserves and surpluses and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year. **63C. Financial assistance to multi-State co-operative societies for development.—(1) The Central** Government may, on an application made by a multi-State co-operative society which has contributed to the Fund for continuous five preceding financial years, grant such financial assistance as it may consider appropriate to the society out of the Fund for infrastructural requirement: Provided that at least fifty per cent. of the total requirement shall be borne by the multi-State co-operative society and the financial assistance from the Fund shall not exceed more than the fifty per cent. of such requirement. (2) The Committee constituted under sub-section (2) of section 63A shall examine and recommend to the Central Government for providing the financial assistance to the multi-State co-operative society to such extent and on such terms and conditions as it may consider necessary.] **64. Investment of funds.—A multi-State co-operative society may invest or deposit its funds—** (a) in a co-operative bank, State co-operative bank, co-operative land development bank or Central co-operative bank; or 1[(b) in any of the securities issued by the Central Government, State Government, Government Corporations, Government Companies, Authorities, Public Sector Undertakings or any other securities ensured by Government guarantees;] (c) in the shares or securities of any other multi-State co-operative society or any co-operative society; or (d) in the shares, securities or assets of a subsidiary institution or any other institution; [2][in the same line of business as the multi-State co-operative society] or 3[(e) with any other scheduled or nationalised bank. _Explanation.––For the purposes of this clause, the expression,—_ (i) “scheduled bank” shall have the same meaning as assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934); and (ii) “nationalised bank” means a corresponding new bank constituted under sub-section (1) of section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); or (f) in such other manner as may be determined by the Central Government.] **65. Restriction on contribution.—No multi-State co-operative society shall make a contribution,** either in money or in kind, whether directly or indirectly, to an institution which has an object of furtherance of the interest of a political party. **66. Restriction on loans.—(1) A multi-State co-operative society, other than a co-operative bank,** shall not make a loan to a member on the security of his share or on the security of a non-member. (2) Notwithstanding anything contained in sub-section (1), a multi-State co-operative society may make a loan to a depositor on the security of his deposit. **67. Restrictions on borrowing.—(1) A multi-State co-operative society may receive deposits, [4][from** its voting members] raise loans and receive grants from external sources to such extent and under such conditions as may be specified in the bye-laws: Provided that the total amount of deposits and loans received during any financial year shall not exceed [5][such multiples as may be determined by the Central Government] of the sum of subscribed share capital and accumulated reserves: 1. Subs. by Act 11 of 2023, s. 25 for clause (b) (w.e.f. 3-8-2023). 2. Ins. by s. 25, ibid. (w.e.f. 3-8-2023). 3. Subs. by 25, ibid., for clause (e) and (f) (w.e.f. 3-8-2023). ----- Provided further that while calculating the total sum of subscribed share capital and accumulated reserves, the accumulated losses shall be deducted. 1[Explanation.— For the removal of doubts, it is hereby clarified that a multi-State co-operative society shall not be entitled to receive deposits from persons other than voting members.] (2) Subject to the provisions of sub-section (1), a multi-State co-operative society may accept funds or borrow funds for the fulfilment of its objects on such terms and conditions as are mutually contracted upon. (3) A multi-State co-operative society may issue non-convertible debentures or other instruments subject to the provisions of any law for the time being in force to raise resources for the fulfilment of its objects to the extent of twenty-five per cent. of its paid-up share capital. **68. Restriction on other transactions with non-members.—Save as provided in sections 66 and 67,** the transaction of a multi-State co-operative society with any person other than a member, shall be subject to such prohibitions and restrictions, if any, as may be specified in the bye-laws. **69. Contributory provident fund.—(1) Subject to the provisions of the Employees’ Provident Fund** and Miscellaneous Provisions Act, 1952 (19 of 1952), a multi-State co-operative society having such number or class of employees as may be prescribed, may establish a contributory provident fund for the benefit of its employees to which shall be credited all contributions made by the employees and the society in accordance with the bye-laws of the society. (2) Monies standing to the credit of any contributory provident fund established by a multi-State co-operative society under sub-section (1) shall not— (a) be used in the business of the society; (b) form part of the assets of the society; (c) be liable to attachment or be subject to any other process of any court or other authority. CHAPTER VIII AUDIT, INQUIRY, INSPECTION AND SURCHARGE **70. Appointment and remuneration of auditors.—(1) Every multi-State co-operative society shall** cause to be audited by an auditor referred to in sub-section (2), its accounts at least once in each year. (2) Every multi-State co-operative society shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed: 1[Provided that such auditors or auditing firm shall be appointed from a panel approved by the Central Registrar: Provided further that in case of multi-State co-operative banks, multi-State credit societies with deposits of above five hundred crore rupees and multi-State non-credit societies with turnover of above five hundred crore rupees, the auditor shall be appointed from a panel of auditors approved for audit of such societies by the Central Registrar.] (3) Every auditor appointed under sub-section (1) shall, within thirty days of the receipt from the multi-State co-operative society of the intimation of his appointment, inform the Central Registrar in writing that he has accepted, or refused to accept, the appointment. 2[(3A) An auditor appointed under sub-section (2) shall submit the audit of accounts report to the multi-State co-operative society, within six months from the date of closing of the financial year, to which such accounts relate.] (4) A retiring auditor shall be re-appointed unless— (a) he is not qualified for re-appointment; ----- (b) he has given the multi-State co-operative society a notice in writing of his unwillingness to be re-appointed; (c) a resolution has been passed at the general meeting of members appointing some body instead of him or providing expressly that he shall not be re-appointed; or (d) where notice has been given of an intended resolution to appoint some person or persons in the place of a retiring auditor, and by reason of the death, incapacity or disqualification of that person or all those persons, as the case may be, the resolution cannot be proceeded with. (5) Where at an annual general meeting no auditors are appointed or re-appointed, the Central Registrar may appoint a person to fill the vacancy. (6) First auditor or auditors of a multi-State co-operative society shall be appointed by the board within one month of the date of registration of such society and the auditor or auditors so appointed shall hold office until the conclusion of the first annual general meeting: Provided that— (a) the multi-State co-operative society may, at a general meeting, remove any such auditor or all or any of such auditors and appoint in his or their places any other person or persons who have been nominated for appointment by any member of the multi-State co-operative society and of whose nomination notice has been given to the members of the multi-State co-operative society not less than fourteen days before the date of the meeting; and (b) if the board fails to exercise its powers under this sub-section, the multi-State co-operative society in the general meeting may appoint the first auditor or auditors. (7)(a) The multi-State co-operative society may fill any causal vacancy in the office of an auditor; but while any such vacancy continues, the remaining auditor or auditors, if any, may act: 1[Provided that where such vacancy is caused by the resignation or death of an auditor, the vacancy shall be filled by the board from the panel of auditors from which such auditor was appointed.] (b) Any auditor appointed in a causal vacancy shall hold office until the conclusion of the next annual general meeting. (8) Any auditor appointed under this section may be removed from office before the expiry of his term by the multi-State co-operative society in general meeting. (9) The remuneration of the auditors of a multi-State co-operative society— (a) in the case of an auditor appointed by the board or the Central Registrar may be fixed by the board or the Central Registrar, as the case may be; and (b) subject to clause (a), shall be fixed by the multi-State co-operative society in general meeting or in such manner as the multi-State co-operative society in general meeting may determine. _Explanation.—For the purposes of this sub-section, any sums paid by the multi-State co-operative_ society in respect of the auditors’ expenses shall be deemed to be included in the expression “remuneration”. 2[(10) The audit report of the accounts of the national co-operative societies shall be laid before each House of Parliament.] 3[70A. Concurrent Audit.— In case of multi-State co-operative societies,–– (i) having an annual turnover more than the amount as determined by the Central Government; or (ii) having deposit of more than the amount as determined by the Central Government, the concurrent audit shall be carried out by an auditor appointed from a panel of auditors approved by the Central Registrar.] 1. Subs. by Act 11 of 2023, s. 27, for clause (a) (w.e.f. 3-8-2023). ----- **71. Provision as to resolutions for appointing or removing auditors.—(1) A special notice shall be** required for a resolution at an annual general meeting appointing as auditor a person other than a retiring auditor, or providing expressly that a retiring auditor shall not be re-appointed. (2) On receipt of notice of such a resolution, the multi-State co-operative society shall forthwith send a copy thereof to the retiring auditor. (3) Where notice is given of such a resolution and the retiring auditor makes with respect thereto representations in writing to the multi-State co-operative society (not exceeding a reasonable length) and requests their notification to members of the multi-State co-operative society, the multi-State co-operative shall, unless the representations are received by it too late for it to do so,— (a) in any notice of the resolution given to members of the multi-State co-operative society, state the fact of the representations having been made; and (b) send a copy of the representation to every member of the multi-State co-operative society to whom notice of the meeting is sent, whether before or after the receipt of the representations by the multi-State co-operative society, and if a copy of the representations is not sent as aforesaid because they were received too late or because of the multi-State co-operative society’s default, the auditor may (without prejudice to his right to be heard orally) require that the representations shall be read out at the meeting. **72. Qualifications and disqualifications of auditors.—(1) A person shall not be qualified for** appointment as an auditor of a multi-State co-operative society unless he is a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949). (2) None of the following persons shall be qualified for appointment as auditor of a multi-State co-operative society— (a) a body corporate; (b) an officer or employee of the multi-State co-operative society; (c) a person who is a member, or who is in the employment, of an officer or employee of the multi-State co-operative society; (d) a person who is indebted to the multi-State co-operative society or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the multi-State co-operative society for an amount exceeding one thousand rupees. (3) A person shall also not be qualified for appointment as an auditor of a multi-State co-operative society if he is, by virtue of sub-section (2), disqualified for appointment as an auditor of any other body corporate or multi-State co-operative society or co-operative society. (4) If an auditor becomes subject, after his appointment, to any of the disqualifications specified in sub-sections (2) and (3), he shall be deemed to have vacated his office as such. **73. Powers and duties of auditors.—(1) Every auditor of a multi-State co-operative society shall** have a right of access at all times to the books, accounts and vouchers of the multi-State co-operative society, whether kept at the head office of the multi-State co-operative society or elsewhere, and shall be entitled to require from the officers or other employees of the multi-State co-operative society such information and explanations as the auditor may think necessary for the performance of his duties as an auditor. (2) Without prejudice to provisions of sub-section (1), the auditor shall inquire,— (a) whether loans and advances made by the multi-State co-operative society on the basis of security have been properly secured and whether the terms on which they have been made are not prejudicial to the interests of the multi-State co-operative society or its members; (b) whether transactions of the multi-State co-operative society which are represented merely by book entries are not prejudicial to the interests of the multi-State co-operative society; (c) whether personal expenses have been charged to revenue account; and (d) where it is stated in the books and papers of the multi-State co-operative society that any ----- allotment, and if no cash has actually been so received, whether the position as stated in the account books and the balance-sheet is correct, regular and not misleading. (3) The auditor shall make a report to the members of the multi-State co-operative society on the accounts examined by him and on every balance-sheet and profit and loss account and on every other document required to be part of or annexed to the balance-sheet or profit and loss account, which are laid before the multi-State co-operative society in general meeting during his tenure of office, and the report shall state whether, in his opinion and to the best of his information and according to the explanations given to him, the said accounts give the information required by this Act in the manner so required and give a true and fair view,— (a) in the case of the balance-sheet, of the state of the multi-State co-operative society’s affairs as at the end of its financial year; and (b) in the case of the profit and loss account, of the profit or loss for its financial year. (4) The auditors’ report shall also state— (a) whether he has obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purposes of his audit; (b) whether, in his opinion, proper books of account have been kept by the multi-State co-operative society so far as appears from his examination of those books, and proper returns adequate for the purposes of his audit have been received from branches or offices of the multi-State co-operative society not visited by him; (c) whether the report on the accounts of any branch office audited by a person other than the multi-State co-operative society’s auditor has been forwarded to him and how he has dealt with the same in preparing the auditor’s report; (d) whether the multi-State co-operative society’s balance-sheet and profit and loss account dealt with by the report are in agreement with the books of account and returns. (5) Where any of the matters referred to in clauses (a) and (b) of sub-section (3) or in clauses (a), (b), (c) and (d) of sub-section (4) is answered in the negative or with a qualification, the auditor’s report shall state the reason for the answer. 1[(6) the multi-State co-operative society or class of multi-State co-operative societies, as the case may be, shall adopt such standards of auditing and accounting as may be determined by the Central Government: Provided that until such standards of auditing and accounting are specified, the auditing and accounting standards specified by the Institute of Chartered Accountants of India constituted by subsection (1) of section 3 of the Chartered Accountants Act, 1949 shall be deemed to be the standards of auditing and accounting: Provided further that the multi-State co-operative banks shall adopt the standards of accounting and auditing, if any, laid down by the Reserve Bank.] **74. Signature of audit report, etc.—Only the person appointed as an auditor of the multi-State** co-operative society shall sign the auditor’s report, or sign or authenticate any other document of the multi-State co-operative society required by law to be signed or authenticated by the auditor. **75. Reading and inspection of auditor’s report.—The auditor’s report shall be read before the** multi-State co-operative society in the general meeting and shall be open to inspection by any member of the multi-State co-operative society. **76. Right of auditor to attend general meeting.—All notices of, and other communications relating** to, any general meeting of a multi-State co-operative society, which any member of the multi-State co-operative society is entitled to have sent to him, shall also be forwarded to the auditor of the multiState co-operative society; and the auditor shall be entitled to attend any general meeting and to be heard at any general meeting which he attends on any part of the business which concerns him as auditor. ----- **77. Power of Central Government to direct special audit in certain cases.—(1) Where the Central** Government is of the opinion— (a) that the affairs of any multi-State co-operative society are not being managed in accordance with self-help and mutual aid and co-operative principles or prudent commercial practices; or with sound business principles; or (b) that any multi-State co-operative society is being managed in a manner likely to cause serious injury or damage to the interest of the trade, industry or business to which it pertains; or (c) that the financial position of any multi-State co-operative society is such as to endanger its solvency, the Central Government may at any time by order direct that a special audit of the multi-State co-operative society’s accounts for such period or periods as may be specified in the order, shall be conducted and may by the same or a different order appoint either a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) or the multi-State co-operative society’s auditor himself to conduct with special audit: Provided that the Central Government shall not order for special audit of a multi-State co-operative society’s accounts if that Government or the State Government either by itself or both hold less than fifty-one per cent. of the paid-up share capital or of the shares in such multi-State co-operative society. (2) The chartered accountant or the multi-State co-operative society’s auditor appointed under sub-section (1) to conduct a special audit as aforesaid is hereafter in this section referred to as the special auditor. (3) The special auditor shall have the same powers and duties in relation to the special audit as an auditor of a multi-State co-operative society has under section 73: Provided that the special auditor shall, instead of making his report to the members of the multi-State co-operative society, make the same to the Central Government. (4) The report of the special auditor shall, as far as may be, include all the matters required to be included in the auditors’ report under section 73 and, if the Central Government so directs, shall also include a statement on any other matter which may be referred to him by that Government. (5) The Central Government may by order direct any person specified in the order to furnish to the special auditor within such time as may be specified therein such information or additional information as may be required by the special auditor in connection with the special audit. (6) On receipt of the report of the special auditor, the Central Government may take such action on the report as it considers necessary in accordance with the provisions of this Act or any other law for the time being in force: Provided that if the Central Government does not take any action on the report within four months from the date of its receipt, that Government shall send to the multi-State co-operative society either a copy of, or relevant extract from, the report with its comments thereon and require the multi-State co-operative society either to circulate that copy or those extracts to the members or to have such copy or extracts read before the multi-State co-operative society at its next general meeting. (7) The expenses of, and incidental to, any special audit under this section (including the remuneration of the special auditor) shall be determined by the Central Government which determination shall be final and paid by the multi-State co-operative society and in default of such payment, shall be recoverable from the multi-State co-operative society as an arrear of land revenue. **78. Inquiry by Central Registrar.—(1) The Central Registrar may, on a request from a federal** co-operative to which a multi-State co-operative society is affiliated or a creditor or not less than one-third of the members of the board or not less than one-fifth of the total number of members of a multi-State co-operative society hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a multi-State co-operative society: Provided that no inquiry under this sub-section shall be held unless a notice of not less than fifteen days has been given to the multi-State co-operative society. ----- 1[(1A) If the Central Registrar is satisfied on the basis of information available with him or furnished to him by a Government agency, that the business of a multi-State co-operative society is being carried on for a fraudulent or unlawful purpose, he may, after informing the multi-State co-operative society of the allegations made against it, by a written order, call on the multi-State co-operative society to furnish in writing any information or explanation, with the endorsement of the board of the society, on matters contained in such order within the time specified therein: Provided that if the Central Registrar is not satisfied with the explanation of the society, he shall either himself or through an office or agency authorised by him, conduct inquiry into the constitution, working and financial condition of the society. (1B) Notwithstanding anything contained in this Act, the Central Registrar shall, either _suo motu or_ through an officer or agency authorised by him, conduct inquiry into the constitution, working and financial condition of any multi-State co-operative society, once in such period as may be determined by the Central Government.] (2) The Central Registrar or the person authorised by him under sub-section (1) shall have the following powers, namely:— (a) he shall at all reasonable times have free access to the books, accounts, documents, securities, cash and other properties belonging to or in the custody of the multi-State co-operative society and may summon any person in possession or responsible for the custody of any such books, accounts, documents, securities, cash or other properties to produce the same, at any place specified by him; (b) he may, notwithstanding any bye-law specifying the period of notice for a general meeting of the multi-State co-operative society, require the officers of the society to call a general meeting of the society by giving notice of not less than seven days at such time and place at the headquarters of the society to consider such matters, as may be directed by him; and where the officers of the society refuse or fail to call such a meeting, he shall have power to call it himself; (c) he may summon any person who is reasonably believed by him to have any knowledge of the affairs of the multi-State co-operative society to appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath. (3) Any meeting called under clause (b) of sub-section (2) shall have all the powers of a general meeting of the society called under the bye-laws of the society and its proceedings shall be regulated by such bye-laws. (4) The Central Registrar shall, within a period of three months of the date of receipt of the report, communicate the report of inquiry to the multi-State co-operative society, the financial institutions, if any, to which the society is affiliated, and to the person or authority, if any, at whose instance the inquiry is made. **79. Inspection of multi-State co-operative societies.—(1) The Central Registrar may, on a request** from a federal co-operative to which a multi-State co-operative society is affiliated or a creditor or not less than one-third of the members of the board or not less than one-fifth of the total number of members of a multi-State co-operative society by general or special order in writing in this behalf, inspect-or direct any person authorised by him by order in writing in this behalf to make an inspection into the constitution, working and financial condition of a multi-State co-operative society: Provided that no inspection under this sub-section shall be made unless a notice of not less than fifteen days has been given to the multi-State co-operative society. (2) (a) For the purpose of inspection under sub-section (1), the Central Registrar or the person authorised by him under that sub-section shall at all times have access to all books, accounts, papers, vouchers, securities, stock and other property of that society and may, in the event of serious irregularities discovered during inspection, take them into custody and shall have power to verify the cash balance of the society and subject to the general or special order of the Central Registrar to call a meeting of the board and also a general meeting of the society where such general meeting is, in his opinion, necessary. ----- (b) Every officer or member of a multi-State co-operative society shall furnish such information with regard to the working of the society as the Central Registrar or the person making such inspection may require. (3) A copy of the report of inspection under this section shall be communicated to the multi-State co-operative society within a period of three months from the date of completion of such inspection. **80. Inspection of books of indebted multi-State co-operative societies.—(1) The Central Registrar** shall, on the application of a creditor of a multi-State co-operative society, inspect, or direct some person authorised by him by order in writing in this behalf to inspect, the books of the society: Provided that no such inspection shall be made unless the applicant— (a) satisfies the Central Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; (b) deposits with the Central Registrar such sum as security for the costs of the proposed inspection as the Central Registrar may require. (2) The Central Registrar shall communicate the result of any such inspection to the creditor. **81. Costs of inquiry and inspection.—Where an inquiry is held under section 78 or an inspection is** made under section 79, the Central Registrar may apportion the costs, or such part of the costs, as he may think fit, between the multi-State co-operative society, the members or creditors demanding an inquiry or inspection, and the officers or former officers and the members or past members of that society: Provided that— (a) no order of apportionment of the costs shall be made under this section unless the society or the person liable to pay the costs thereunder has had a reasonable opportunity of being heard; (b) the Central Registrar shall state in writing under his own hand the grounds on which the costs are apportioned. **82. Recovery of costs.—Any sum awarded by way of costs under section 81 may be recovered, on** application to a magistrate having jurisdiction in the place where the person, from whom the money is claimable, actually and voluntarily resides or carries on business, and such magistrate shall recover the same as if it were a fine imposed by himself. **83. Repayment, etc.—(1) If in the course of an audit, inquiry, inspection or the winding up of a** multi-State co-operative society, it is found that any person, who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society, the Central Registrar may, of his own motion or on the application of the board, liquidator or any creditor inquire himself or direct any person authorised by him, by an order in writing in this behalf, to inquire into the conduct of such person within a period of two years from the date of the report of the audit, inspection or inquiry or the date of the order of winding up, as the case may be: Provided that where the Central Registrar is satisfied that such inquiry could not be commenced during the period of two years aforesaid on account of fraud or concealment of facts, he may make or direct the inquiry to be made within such period not exceeding six years from the date of the report of the audit, inspection or inquiry or the date of the order of winding up, as he thinks fit. (2) Where an inquiry is made under sub-section (1), the Central Registrar may, after giving the person concerned a reasonable opportunity of being heard, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and costs or compensation to such extent, as the Central Registrar may consider just and equitable. CHAPTER IX SETTLEMENT OF DISPUTES **84. Reference of disputes.—(1) Notwithstanding anything contained in any other law for the time** being in force, if any dispute [other than a dispute regarding disciplinary action taken by a multi-State ----- of the Industrial Disputes Act, 1947 (14 of 1947)] touching the constitution, management or business of a multi-State co-operative society arises— (a) among members, past members and persons claiming through members, past members and deceased members, or (b) between a member, past members and persons claiming through a member, past member or deceased member and the multi-State co-operative society, its board or any officer, agent or employee of the multi-State co-operative society or liquidator, past or present, or (c) between the multi-State co-operative society or its board and any past board, any officer, agent or employee, or any past officer, past agent or past employee, heirs or legal representatives of any deceased officer, deceased agent or deceased employee of the multi-State co-operative society, or (d) between the multi-State co-operative society and any other multi-State co-operative society, between a multi-State co-operative society and liquidator of another multi-State co-operative society or between the liquidator of one multi-State co-operative society and the liquidator of another multi-State co-operative society, such dispute shall be referred to arbitration. (2) For the purposes of sub-section (1), the following shall be deemed to be disputes touching the constitution, management or business of a multi-State co-operative society, namely:— (a) a claim by the multi-State co-operative society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not; (b) a claim by a surety against the principal debtor where the multi-State co-operative society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debtor, whether such debt or demand is admitted or not; (c) any dispute arising in connection with the election of any officer of a multi-State co-operative society. (3) If any question arises whether a dispute referred to arbitration under this section is or is not a dispute touching the constitution, management or business of a multi-State co-operative society, the decision thereon of the arbitrator shall be final and shall not be called in question in any court. (4) Where a dispute has been referred to arbitration under sub-section (1), the same shall be settled or decided by the arbitrator to be appointed by the Central Registrar. (5) Save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to all arbitration under this Act as if the proceedings for arbitration were referred for settlement or decision under the provisions of the Arbitration and Conciliation Act, 1996. **85. Limitation.—(1) Notwithstanding anything contained in the Limitation Act, 1963 (36 of 1963),** but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute referred to arbitration shall,— (a) when the dispute relates to the recovery of any sum including interest thereon due to a multi-State co-operative society by a member thereof, be computed from the date on which such member dies or ceases to be a member of the society; (b) save as otherwise provided in clause (c), when the dispute relates to any act or omission on the part of any of the parties referred to in clause (b) or clause (c) or clause (d) of sub-section (1) of section 84, be six years from the date on which the act or omission, with reference to which the dispute arose, took place; (c) when the dispute is in respect of an election of an officer of a multi-State co-operative society, be one month from the date of the declaration of the result of the election. (2) The period of limitation in the case of any dispute, except those mentioned in sub-section (1), which are required to be referred to arbitration shall be regulated by the provisions of the Limitation Act, 1963 (36 of 1963) as if the dispute were a suit and the arbitrator a civil court ----- (3) Notwithstanding anything contained in sub-sections (1) and (2), the arbitrator may admit a dispute after the expiry of the period of limitation, if the applicant satisfies the arbitrator that he had sufficient cause for not referring the dispute within such period. 1[CHAPTER IXA REDRESSAL OF COMPLAINTS 2[85A. Co-operative Ombudsman.— (1) The Central Government shall appoint, one or more Co operative Ombudsman with territorial jurisdiction for inquiring into the complaints made by any member of the multi-State co-operative societies regarding their deposits, equitable benefits of society’s functioning or any other issue affecting the individual rights of the concerned member, in such manner, as may be prescribed. (2) The Co-operative Ombudsman shall, on receipt of a complaint, complete the process of inquiry and adjudicate within a period of three months from the date of receipt of the complaint and may issue necessary directions to the society during the course of inquiry and the society shall be bound to comply with the same within a period of one month from the date of issuance of such directions. (3) The multi-State co-operative society aggrieved by any directions of the Ombudsman may file an appeal in such manner as may be prescribed, within a period of one month before the Central Registrar who shall decide the appeal within a period of forty-five days and the decision of the Central Registrar shall be final and binding: Provided that the Central Registrar may entertain the appeal after the expiry of said period of one month, if he is satisfied that the society was prevented by sufficient cause from preferring the appeal in time. (4) The Ombudsman shall submit periodic reports to the Central Registrar of Co-operative Societies. (5) The Co-operative Ombudsman while conducting the inquiry under sub-section (1), shall exercise the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, (5 of 1908)–– (a) for summoning and enforcing the attendance of persons; (b) examining them on oath; (c) discovery and production of books of account and other documents; and (d) any other matter which may be prescribed.] CHAPTER X WINDING UP OF MULTI-STATE CO-OPERATIVE SOCIETY **86. Winding up of multi-State co-operative societies.—(1) If the Central Registrar, after audit has** been conducted under section 70 or special audit has been conducted under section 77 or an inquiry has been held under section 78 or an inspection has been made under section 79, [3][or section 108] is of opinion that the society ought to be wound up, he may, after giving the society a reasonable opportunity of making its representations by order, direct it to be wound up. (2) The Central Registrar may, of his own motion and after giving the multi-State co-operative society a reasonable opportunity of making its representation, make an order directing the winding up of the multi-State co-operative society,— 4[(a) where the number of members or the number of societies or the number of persons, as the case may be, has at any time reduced below the number of members or societies or persons as specified in sub-section (2) of section 6: Provided that the multi-State co-operative society shall be given six months’ time to restore the number of members or societies or persons to the requisite number;] (b) where the multi-State co-operative society has not commenced working within a period of six months of the date of its registration or such extended period as the Central Registrar may allow in this behalf or has ceased to function in accordance with [5][co-operative principles; or] 1. Ins. by Act 11 of 2023, s. 30 (w.e.f. 3-8-2023). 2. Ins. by s. 31, ibid. (w.e.f. 3-8-2023). 3. Ins. by s. 32, ibid. (w.e.f. 3-8-2023). ----- 1[(c) where the Central Registrar has reasons to believe that the registration was obtained by misrepresentation of facts, submission of false or misleading information, suppression of material facts or fraud thereby compromising the spirit of co-operation.] (3) The Central Registrar may cancel an order for the winding up of a multi-State co-operative society, at any time, in any case where, in his opinion, the society should continue to exist. (4) A copy of such order shall be communicated by registered post to the multi-State co-operative society and to the financial institutions, if any, of which the society is a member. 2[(5) Notwithstanding anything contained in this section, in case of winding up of multi-State co-operative banks, the provisions of the Banking Regulation Act, 1949 (10 of 1949) shall also apply.] (6) Notwithstanding anything contained in this section, the Central Registrar shall make an order for the winding up of a multi-State co-operative society, if the society, by a resolution passed by two-third majority of members present and voting in a general meeting decides for winding up of that society. 1[Provided that prior to winding up, “no objection” from the institutional lenders, who have outstanding loans from the society, shall be required in writing. _Explanation.—For the purposes of this proviso, the expression “institutional lenders” includes banks,_ savings and loan association, trust company, insurance company, real estate investment trust, pension fund and the like.] **87. Winding up of co-operative bank at the direction of Reserve Bank.—Notwithstanding** anything to the contrary contained elsewhere in this Act, the Central Registrar shall make an order for the winding up of a co-operative bank, if so required by the Reserve Bank in the circumstances mentioned in section 13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961). **88. Reimbursement to the Deposit Insurance Corporation by liquidator.—Where a co-operative** bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961), is wound up and the Deposit Insurance Corporation has become liable to the depositors of the insured bank under sub-section (1) of section 16 of that Act, the Deposit Insurance Corporation shall be reimbursed by the liquidator or such other person in the circumstances, to the extent and in the manner provided in section 21 of that Act. **89. Liquidator.—(1) Where the Central Registrar has made an order under section 86 for the winding** up of a multi-State co-operative society, the Central Registrar may appoint a liquidator for the purpose and fix his remuneration. (2) A liquidator shall, on appointment, take into his custody or under his control all the property, effects and actionable claims to which the multi-State co-operative society is or appears to be entitled and shall take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage to, such property, effects and claims and he may carry on the business of the multi-State co-operative society so far as may be necessary with the previous approval of the Central Registrar. (3) Where an appeal is preferred under clause (f) of sub-section (1) of section 99, an order for the winding up of a multi-State co-operative society made under section 86 shall not operate thereafter until the order is confirmed in appeal: Provided that the liquidator shall continue to have custody or control of the property, effects and actionable claims mentioned in sub-section (2) and have authority to take the steps referred to in that sub-section. (4) Where an order for the winding up of a multi-State co-operative society is set aside in appeal, the property, effects and actionable claims of the society shall re-vest in the society. **90. Powers of liquidator.—(1) Subject to any rules made in this behalf, the whole of the assets of a** multi-State co-operative society in respect of which an order for winding up has been made, shall vest in the liquidator appointed under section 89 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise. (2) Such liquidator shall also have power, subject to the control of the Central Registrar— ----- (a) to institute and defend suits and other legal proceedings on behalf of the multi-State co-operative society by the name of his office; (b) to determine from time to time the contribution (including debts due and costs of liquidation) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of the deceased members or by any officers or former officers, to the assets of the multi-State co-operative society; (c) to investigate all claims against the multi-State co-operative society and subject to the provisions of this Act, to decide questions of priority arising between claimants; (d) to pay claims against the multi-State co-operative society, including interest up to the date of winding up according to their respective priorities, if any, in full or rateably, as the assets of the society may permit; and the surplus, if any, remaining after payment of the claims being applied in payment of interest from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in any case; (e) to determine by what persons and in what proportions the costs of the liquidation are to be borne; (f) to determine whether any person is a member, past member or nominee of a deceased member; (g) to give such directions in regard to the collection and distribution of the assets of the multi-State co-operative society as may appear to him to be necessary for winding up the affairs of that society; (h) to carry on the business of the multi-State co-operative society so far as may be necessary for the beneficial winding up of the same; (i) to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have any claim, present or future, whereby the multi-State co-operative society may be rendered liable; (j) to make any compromise or arrangement with any person between whom and the multi-State co-operative society there exists any dispute and to refer any such dispute for decision; (k) after consulting the members of the multi-State co-operative society, to dispose of the surplus, if any, remaining after paying the claims against the society, in such manner as may be prescribed; (l) to compromise all calls or liabilities to calls and debts and liabilities capable of resulting in debts, and all claims, present or future, certain or contingent, subsisting or alleged to be subsisting between the multi-State co-operative society and a contributory or other debtor or person apprehending liability to the multi-State co-operative society and all questions in any way relating to or affecting the assets or the winding up of the society on such terms as may be agreed and take any security for the discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof. (3) When the affairs of a multi-State co-operative society have been wound up, the liquidator shall make a report to the Central Registrar and deposit the records of the society in such place as the Central Registrar may direct. **91. Disposal of surplus assets.—The surplus assets, as shown in the report of a liquidator of a** multi-State co-operative society which is wound up,— (a) may, if the bye-laws of the multi-State co-operative society specify the purpose for which surplus shall be utilised, be utilised by the Central Registrar for the said purpose, and (b) if the bye-laws aforesaid do not specify the purpose, be divided by the Central Registrar with the previous sanction of the Central Government, amongst the members of such multi-State co-operative society in such manner as may be prescribed. **92. Priority of contributions assessed by liquidator.—Notwithstanding anything contained in any** law relating to insolvency, the contribution assessed by a liquidator shall rank next to debts due to the Central Government or a State Government or a local authority in accordance with the order of priority in i l di ----- **93. Power of Central Registrar to cancel registration of a multi-State co-operative society.—(1)** The Central Registrar may, after considering the report of the liquidator made to him under sub-section (3) of section 90, order the registration of the multi-State co-operative society to be cancelled and on such cancellation, that society shall stand dissolved. (2) An order passed under sub-section (1) shall be communicated by registered post to the president or the chairperson as the case may be, of the multi-State co-operative society and to the financial institutions, if any, of which the society was a member. CHAPTER XI EXECUTION OF DECREES, ORDERS AND DECISIONS **94. Execution of decisions, etc.—Every decision or order made under section 39 or section 40 or** section 83 or [1][section 84 or] section 99 or section 101 shall, if not carried out,— (a) on a certificate signed by the Central Registrar or any person authorised by him in writing in this behalf, be deemed to be a decree of a civil court and shall be executed in the same manner as if it were a decree of such court and such decree shall be executed by the Central Registrar or any person authorised by him in writing in this behalf, by attachment and sale or sale without attachment of any property of the person or a multi-State co-operative society against whom the decision or order has been made; or (b) where the decision or order provides for the recovery of money, be executed according to law for the time being in force for the recovery of arrears of land revenue: Provided that any application for the recovery of any sum shall be made in such manner— (i) to the Collector and shall be accompanied by a certificate signed by the Central Registrar or by any person authorised by him in writing in this behalf; (ii) within twelve years from the date fixed in the decision or order and if no such date is fixed, from the date of decision or order, as the case may be; or (c) be executed by the Central Registrar or any person authorised by him in writing in this behalf, by attachment and sale or sale without attachment of any property of the person or a multi-State co-operative society against whom the decision or order has been made. **95. Execution of orders of liquidators.—Every order made by the liquidator under section 90 shall** be executed according to the law for the time being in force for the recovery of arrears of land revenue. **96. Attachment before award.—(1) Where the arbitrator is satisfied that a party to any reference** made to him under section 84 with intent to defeat or delay the execution of any decision that may be passed thereon is about to— (a) dispose of the whole or any part of the property; or (b) remove the whole or any part of the property from its existing precincts, the arbitrator may, unless adequate security is furnished, direct conditional attachment of the said property or such part thereof as he deems necessary. (2) The attachment under sub-section (1) shall be executed by a civil court having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect as such order. **97. Central Registrar or arbitrator or person authorised to be civil court for certain** **purposes.—The Central Registrar or the arbitrator or any person authorised by him in writing in this** behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-in-aid of such recovery, to be a civil court for the purposes of article 136 of the Schedule to the Limitation Act, 1963 (36 of 1963). **98. Recovery of sums due to Government.—(1) All sums due from a multi-State co-operative** society, or from an officer or member or past member of a multi-State co-operative society, to the Central Government or a State Government, including any cost awarded to the Central Government or the State ----- Government, as the case may be, under any provision of this Act, may, on a certificate issued by the Central Registrar in this behalf, be recovered in the same manner as arrears of land revenue as first charge on the assets of such society or officer or member, as the case may be. (2) Sums due from a multi-State co-operative society to the Central Government or a State Government and recoverable under sub-section (1) may be recovered firstly from the property of the society and secondly from the members, past members or the estates of deceased members, subject to the limit of their liability: Provided that the liability of past members and the estate of deceased members shall in all cases be subject to the provisions of section 37. 1[(3) The Central Registrar shall also have the power to recover the following dues by attaching bank accounts of defaulting multi-State co-operative societies— (a) the co-operative education fund referred to in clause (b) of sub-section (1) of section 63; (b) the Co-operative Rehabilitation, Reconstruction and Development Fund established under section 63A; and (c) the expenses incurred by the Co-operative Election Authority for conduct of elections.] **2[98A. Review of decision.— The Central Registrar may, on an application received from any party,** review his decision under clause (a) or clause (b) or clause (c) of sub-section (1) of section 94: Provided that no application for review shall be entertained against the recovery certificate issued by the Central Registrar or by any person authorised by him in writing in this behalf, unless the applicant deposits with the concerned society, fifty per cent. of the amount of the recoverable dues: Provided further that no application for review shall be entertained, if made after sixty days of the date of receipt of the decision or order: Provided also that the Central Registrar may entertain any such application made after such period, if the applicant satisfies that he had sufficient cause for not making the application within such period.] CHAPTER XII APPEALS AND REVIEW **99. Appeals.—(1) Subject to the provisions of section 100, an appeal shall lie under this section** against— (a) an order made by the Central Registrar under sub-section (3) of section 7 refusing to register a multi-State co-operative society; (b) an order made by the Central Registrar under sub-section (9) of section 11 refusing to register an amendment of the bye-laws of a multi-State co-operative society; (c) a decision of a multi-State co-operative society refusing or deemed to be refusing under sub-section (4) of section 25 to admit any person as a member of the society who is otherwise duly qualified for membership under the bye-laws of the society; (d) an order made by the Central Registrar under section 81 apportioning the costs of an inquiry held under section 78 or an inspection made under section 80; (e) an order made by the Central Registrar under sub-section (2) of section 83; (f) an order made by the Central Registrar under section 86 directing the winding up of a multi-State co-operative society; (g) an order made by the liquidator of a multi-State co-operative society under section 90. (2) An appeal against any decision or order under sub-section (1) shall be made within sixty days from the date of such decision or order to the prescribed appellate authority. ----- (3) The appellate authority may, if satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the period of sixty days, admit the appeal within such further period as that authority may deem fit. (4) In disposing of an appeal under this section, the appellate authority may, after giving the parties a reasonable opportunity of making their representation, pass such order thereon as that authority may deem fit. (5) The decision or order of the appellate authority on appeal shall be final. **100. No appeal in certain cases.—Notwithstanding anything contained in this Act, where, with the** previous sanction in writing of, or on requisition by, the Reserve Bank, a co-operative bank— (a) is being wound up; or (b) in respect of which a scheme of amalgamation or reorganisation is given effect to, no appeal there against shall lie or be permissible, and the sanction or requisition of the Reserve Bank shall not be liable to be called in question. **101. Review.—(1) The appellate authority referred to in section 99, may, on the application of any** party, review its own order in any case and pass in reference thereto such order as it thinks fit: Provided that no such application shall be entertained unless the appellate authority is satisfied that there has been a discovery of new and important matter or evidence which after exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when the order was made or that there has been some mistake or error apparent on the face of the record or for any other sufficient reason: Provided further that no such order shall be made under this sub-section unless notice has been given to all interested parties and they have been afforded a reasonable opportunity of being heard. (2) An application for review under sub-section (1) by any party shall be made within thirty days from the date of communication of the order of the appellate authority sought to be reviewed. **102. Interlocutory orders.—Where an appeal is made under section 99, the appellate authority may,** in order to prevent the ends of justice being defeated, make such interlocutory orders, including an order of stay pending the decision of the appeal as such authority may deem fit. CHAPTER XIII SOCIETIES WHICH BECOME MULTI-STATE CO-OPERATIVE SOCIETIES CONSEQUENT ON REORGANISATION OF STATES **103. Co-operative societies functioning immediately before reorganisation of States.—(1) Where,** by virtue of the provisions of Part II of the State Reorganisation Act, 1956 (37 of 1956) or any other enactment relating to reorganisation of States, any co-operative society which immediately before the day on which the reorganisation takes place, had its objects confined to one State becomes, as from that day, a multi-State co-operative society, it shall be deemed to be a multi-State co-operative society registered under the corresponding provisions of this Act and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, continue to be in force until altered or rescinded. 1[Provided that where all the successor States take necessary steps to divide or reorganise such deemed multi-State co-operative society into State co-operative societies in order to confine their objects, services and the members to respective States within a period of three years, such deemed multi-State cooperative society shall cease to be a multi-State co-operative society: Provided further that the deemed multi-State co-operative society other than those mentioned in the first proviso shall submit an application for registration and obtain the certificate of registration from the Central Registrar.] (2) If it appears to the Central Registrar or any officer authorised in this behalf by the Central Government (hereafter in this section referred to as the authorised officer) that it is necessary or expedient to reconstitute or reorganise any society referred to in sub-section (1), the Central Registrar or the authorised officer, as the case may be, may, with the previous approval of the Central Government, place ----- before a meeting of the general body of that society, held in such manner as may be prescribed, a scheme for the reconstitution or reorganisation, including proposals regarding— (a) the formation of new multi-State co-operative societies and the transfer thereto in whole or in part, of the assets and liabilities of that society; or (b) the transfer, in whole or in part, of the assets and liabilities of that society to any other multi-State co-operative society in existence immediately before the date of that meeting of the general body (hereafter in this section referred to as the existing multi-State co-operative society). (3) If the scheme is sanctioned by a resolution passed by a majority of the members present at the said meeting, either without modifications or with modifications to which the Central Registrar or the authorised officer agrees, he shall certify the scheme and upon such certification, the scheme shall, notwithstanding anything to the contrary contained in any law, regulation or bye-laws for the time being in force, be binding on all the societies affected by the scheme, as well as the shareholders and creditors of all such societies. (4) If the scheme is not sanctioned under sub-section (3), the Central Registrar or the authorised officer may refer the scheme to such judge of the appropriate High Court, as may be nominated in this behalf by the Chief Justice thereof, and the decision of that judge in regard to the scheme shall be final and shall be binding on all the societies affected by the scheme as well as the shareholders and creditors of all such societies. _Explanation.—For the purposes of this sub-section, “appropriate High Court” means the High Court_ within the local limits of whose jurisdiction the principal place of business of the multi-State co-operative society is situated. (5) Notwithstanding anything contained in this section, where a scheme under sub-section (2) includes any proposal regarding the transfer of the assets and liabilities of any multi-State co-operative society referred to in clause (b) thereof, the scheme shall not be binding on such multi-State co-operative society or the shareholders and creditors thereof, unless the proposal regarding such transfer is accepted by that multi-State co-operative society by a resolution passed by a majority of the members present at a meeting of its general body. CHAPTER XIV OFFENCES AND PENALTIES **104. Offences and penalties.—(1) A multi-State co-operative society or an officer or member** thereof wilfully making a false return or furnishing false information, [1][or failing to file any return or information] or any person wilfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this Act, or wilfully not furnishing any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which shall not be less than [2][five thousand rupees] and which may extend to 3[one lakh rupees]. (2) Any employer who, without sufficient cause, fails to pay to a multi-State co-operative society the amount deducted by him under section 60 within a period of fourteen days from the date on which such deduction is made shall, without prejudice to any action that may be taken against him under any other law for the time being in force, be punishable with fine which may extend to [4][ten thousand rupees]. (3) Any officer or custodian who wilfully fails to hand over custody of books, accounts, documents, records, cash, security and other property belonging to a multi-State co-operative society of which he is an officer or custodian, to a person entitled under section 54, or section 70, or section 78, or section 79, or section 89 [5][or to a person required to file return under section 120] shall be punishable with fine which may extend to [6][five thousand rupees] and in the case of a continuing breach, with a further fine which 1. Ins. by Act 11 of 2023, s. 37 (w.e.f. 3-8-2023). 2. Subs. by s. 37, ibid., for “two thousand rupees” (w.e.f. 3-8-2023). 3. Subs. by s. 37, ibid., for “ten thousand rupees” (w.e.f. 3-8-2023). 4. Subs. by s. 37, ibid., for “five thousand rupees” (w.e.f. 3-8-2023). ----- may extend to [1][ten thousand rupees] for every day during which the breach is continued after conviction for the first such breach. (4) Whoever, before, during or after the election of delegates under the proviso to sub-section (1) of section 38 or election of members of the board,— (a) fraudulently defaces or fraudulently destroys any nomination paper; or (b) fraudulently defaces, destroys or removes any list, notice or other document affixed by or under the authority of a returning officer; or (c) fraudulently defaces or fraudulently destroys any ballot paper or the official mark on any ballot paper or any declaration of identity; or (d) without due authority supplies any ballot paper to any person or receives any ballot paper from any person or is in possession of any ballot paper; or (e) fraudulently puts into any ballot box anything other than the ballot paper which he is authorised by law to put in; or (f) without due authority destroys, takes, opens or otherwise interferes, with any ballot box or ballot papers then in use for the purposes of the election; or (g) fraudulently or without due authority, as the case may be, attempts to do any of the foregoing acts or wilfully aids or abets the doing of any such acts; (h) offers any gift or promises to offer any gratification to any person [2][or receives such gift, promise or gratification] with the object, directly or indirectly, of including— (i) a person to stand or not to stand as, or to withdraw or not to withdraw from, being a candidate at an election; or (ii) a member to vote or refrain from voting at an election, or as a reward to a person for having so stood or not stood or for having withdrawn or not having withdrawn his candidature; or (iii) a member for having voted or refrained from voting, shall be punishable with imprisonment for a term which may extend to six months or with fine or with both [2][and shall also be debarred from contesting elections for a period of three years.] 2[(5) Where a multi-State co-operative society,— (a) which is required to provide an explanation or make a statement during the course of inspection, inquiry or investigation, destroys, mutilates or falsifies, or conceals or tampers or unauthorisedly removes, or causes the destruction, mutilation or falsification or concealment or tampering or unauthorised removal of, any document relating to the property, assets or affairs of the society or makes or causes to make a false entry in any document concerning the society; (b) makes any investment in contravention of the provision of section 64 or the bye-laws made under this Act; (c) causes unlawful loss to the assets and property of the society; or (d) causes unlawful loss to the depositor, the board of directors or the responsible officers of the multi-State co-operative society shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to one year or with fine which shall not be less than five thousand rupees but may extend to one lakh rupees or with both. (6) Where the board of directors or officers of the multi-State co-operative society receive any unlawful gains while transacting matters related to such society or utilise any assets of the society for personal unlawful gains, such directors or officers concerned shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to one year or with fine which shall ----- not be less than five thousand rupees but may extend to one lakh rupees or with both and the proceeds of such unlawful gains shall be recovered from them and deposited in such manner as may be prescribed.] **105. Cognizance of offences.—(1) No court inferior to that of a Metropolitan Magistrate or a Judicial** Magistrate of the first class shall try any offence under this Act. (2) No prosecution for offences under section 104 shall be instituted except on a complaint filed in writing by a member of a multi-State co-operative society or by the Central Registrar in the competent court. 1[105A. Provisions of this Act not in derogation of any other law.— The provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being in force.] CHAPTER XV MISCELLANEOUS 2[106. Appointment of Co-operative Information Officer.— (1) Every multi-State co-operative society shall appoint a Co-operative Information Officer to provide the information relating to affairs and management of the society to the members of the society and such information shall be confined to the information falling under the disclosure norms specified by the society in its bye-laws. (2) Any member of multi-State co-operative society shall make an application, accompanying such fee as may be prescribed, to get information specified in sub-section (1). (3) The Co-operative Information Officer shall, within thirty days from the date of receipt of application, either provide the information or reject the application specifying the reason to do so. (4) Any member of the multi-State co-operative society whose application has been rejected may prefer an appeal to the Co-operative Ombudsman within a period of one month from the date of such rejection and his decision shall be final and binding. **106A. Copy of rules and bye-laws, etc., for inspection.—Every Chief Executive of multi-State** co-operative society shall keep a copy of the rules and its bye-laws and also a list of its members, open to inspection free of charge at all reasonable times, at the registered address of the multi-State co-operative society.] **107. Place of keeping and inspection of, registers and returns.—(1) The register of members** commencing from the date of the registration of multi-State co-operative society, the index of members, the register of debenture holders, and copies of all annual returns prepared together with the copies of certificates and documents, shall be kept at the registered office of the multi-State co-operative society. (2) The registers, indexes, returns and copies of certificates and other documents referred to in sub-section (1) shall be open during business hours (subject to such reasonable restrictions, as the multi-State co-operative society may impose, so that not less than two hours in each day are allowed for inspection) to the inspection— (a) of any member or debenture holder, without fee; and (b) of any other person, on payment of such sum as may be prescribed for each inspection. **108. Inspection of books of account, etc., of multi-State co-operative society.—(1) The books of** account and other books and papers of every multi-State co-operative society shall be open to inspection during business hours— (i) by the Central Registrar [3][or any person authorised by him in this behalf, not below the rank of Assistant Commissioner or equivalent], or (ii) by such officer of the Government as may be authorised by the Central Government in this behalf: Provided that such inspection may be made without giving any previous notice to that society or any officer thereof; 1. Ins. by Act 11 of 2023, s. 38 (w.e.f. 3-8-2023). ----- (iii) by the members of the multi-State co-operative society. (2) It shall be the duty of every director, other officer or employee of the multi-State co-operative society to produce to the person making inspection under sub-section (1), all such books of account and other books and papers of the multi-State co-operative society in his custody or control and to furnish him with any statement, information or explanation relating to the affairs of such society as the said person may require of him within such time and at such place as he may specify. (3) It shall also be the duty of every director, other officer or employee of the multi-State co-operative society to give to the person making inspection under this section all assistance in connection with the inspection which the multi-State co-operative society may be reasonably expected to give. (4) The person making the inspection under this section may, during the course of inspection,— (i) make or cause to be made copies of books of account and other books and papers, or (ii) place or cause to be placed any marks or identification thereon in token of the inspection having been made. (5) Notwithstanding anything contained in any other law for the time being in force or any contract to the contrary, the Central Registrar or an officer authorised under clause (ii) of sub-section (1), making an inspection under this section shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in respect of the following matters, namely:— (i) the discovery and production of books of account and other documents, at such place and such time as may be specified by such person; (ii) summoning and enforcing the attendance of persons and examining them on oath; (iii) inspection of any books, registers and other documents of the multi-State co-operative society at any place. (6) Where an inspection of the books of account and other books and papers of the multi-State co-operative society has been made under this section, the Central Registrar or an officer authorised under clause (ii) of sub-section (1), making the inspection shall make a report to the Central Government. **109 Annual accounts and balance-sheet.—At every annual general meeting of a multi-State** co-operative society, the board shall lay before the multi-State co-operative society— (a) a balance-sheet as at the end of every [1][financial year]; and (b) a profit and loss account for that year. **110. Minutes of proceedings of general meetings and of board and other meetings.—(1) Every** multi-State co-operative society shall cause minutes of all proceedings of every general meeting and of all proceedings of every meeting of its board or of every committee of the board, to be kept by making within thirty days of the conclusion of every such meeting concerned, entries thereof in books kept for that purpose with their pages consecutively numbered. (2) Each page of every such book shall be initialed or signed and the last page of the record of proceedings of each meeting in such books shall be dated and signed— (a) in the case of minutes of proceedings of a meeting of the board or of a committee thereof, by the chairperson of the said meeting or the chairperson of the next succeeding meeting; (b) in the case of minutes of proceedings of a general meeting, by the chairperson of the same meeting within the aforesaid period of thirty days or in the event of the death or inability of that chairperson within that period, by a member of the board duly authorised by the board for the purpose. (3) In no case the minutes of proceedings of a meeting shall be attached to any such books as aforesaid by pasting or otherwise. (4) The minutes of each meeting shall contain a fair and correct summary of the proceedings thereat. ----- (5) All appointments of officers made at any of the meetings aforesaid shall be included in the minutes of the meeting. (6) In the case of a meeting of the board or of a committee of the board, the minutes shall also contain— (a) the names of the members of the board present at the meeting; and (b) in the case of each resolution passed at the meeting, the names of the members of the board, if any, dissenting from, or not concurring in, the resolution. (7) Nothing contained in sub-sections (1) to (6) shall be deemed to require the inclusion in any such minutes of any matter which, in the opinion of the chairperson of the meeting— (a) is, or could reasonably be regarded as, defamatory of any person; (b) is irrelevant or immaterial to the proceedings; or (c) is detrimental to the interests of the multi-State co-operative society. _Explanation.—The chairperson shall exercise an absolute discretion in regard to the inclusion or_ non-inclusion of any matter in the minutes on the grounds specified in this sub-section. **111. Minutes to be evidence.—Minutes of meetings kept in accordance with the provisions of** section 110 shall be evidence of the proceedings recorded therein. **112. Presumptions to be drawn where minutes duly drawn and signed.—Where minutes of the** proceedings of any general meeting of the multi-State co-operative society or of any meeting of its board or a committee of the board have been kept in accordance with the provisions of section 110, then, until the contrary is proved, the meeting shall be deemed to have been duly called and held, and all proceedings thereat to have duly taken place, and in particular, all appointments of directors or liquidators made at the meeting shall be deemed to be valid. **113. Inspection of minutes book of general meetings.—The books containing the minutes of the** proceedings of any general meeting of a multi-State co-operative society shall— (a) be kept at the registered office of that society, and (b) be open, during business hours, to the inspection of any member of that society. **114. Liquidator to be public servant.—Any person appointed as liquidator under the provisions of** this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **115. Notice necessary in suits.—No suit shall be instituted against a multi-State co-operative society** or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of ninety days next after notice in writing has been delivered to the Central Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left. **116.** **[1][Power to amend Schedules.]—(1) If the Central Government is satisfied that any** multi-State co-operative society should be designated as a national co-operative society or any national co-operative society specified in the Second Schedule should be omitted from the said Schedule, it may, by notification, amend the said Schedule so at to include therein such multi-State co-operative society or exclude therefrom such national co-operative society, and thereupon the said Schedule shall be deemed to have been amended accordingly. 2[(1A) If the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification, amend the First Schedule and the Third Schedule and thereupon such Schedules shall be deemed to have been amended accordingly: Provided that in case of the First Schedule, such notification shall be used only for adding to the co-operative principles in the list.] ----- (2) A copy of every notification under [1][sub-sections (1) and (1A)] shall be laid before each House of Parliament as soon as may be after it is made. **117. Bar of jurisdiction of courts.—(1) Save as otherwise provided in this Act, no court shall have** jurisdiction in respect of— (a) the registration of a multi-State co-operative society or its bye-laws or of an amendment of the bye-laws; (b) any matter concerning the winding up and the dissolution of a multi-State co-operative society. (2) While a multi-State co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against the liquidator or against the society or any member thereof, except by leave of the Central Registrar and subject to such terms and conditions as he may impose. (3) Save as otherwise provided in this Act, no decision or order made under this Act shall be questioned in any court. **118. Indemnity.—No suit, prosecution or other legal proceedings shall lie against the Central** Registrar or, any person subordinate to him or acting on his authority or against any other person, in respect of anything in good faith done or purporting to have been done under this Act. **119. Opening of branches.—Notwithstanding anything contained to the contrary in any law relating** to co-operative societies in force in a State, a multi-State co-operative society, not being a co-operative bank, may open branches or places of business in any place in India. **120. Filing of returns.—Every year within six months of the closure of the accounting year every** multi-State co-operative society shall file the following returns with the Central Registrar, namely:— 2[(a) annual report of the activities including details of board decisions which were not unanimous;] (b) audited statements of accounts; (c) plan for surplus disposal as approved by the general body; (d) list of amendments to the bye-laws of the multi-State co-operative society; (e) declaration regarding date of holding of general body meeting and conduct of elections where due; 3[(f) disclosure regarding employees who are relatives of Members of board; (g) declaration of any related party transactions by the board of directors; and (h) any other information required by the Central Registrar in pursuance of any of the provisions of this Act or the rules made thereunder.] 4[120A. Filing of applications, documents, inspections, etc., in electronic form.—(1) Notwithstanding anything to the contrary contained in this Act, and without prejudice to the provisions of the Information Technology Act, 2000 (21 of 2000), the Central Government may, from such date as may be notified, require that— (a) such applications, returns, reports, statement of accounts, or any other particulars or document as may be required to be filed or delivered under this Act or the rules made thereunder, shall be filed in the electronic form and authenticated; (b) such document, notice, any communication or intimation, as may be required to be served or delivered under this Act, shall be served or delivered in the electronic form and authenticated; (c) such applications, returns, reports, statement of accounts, registers, bye-laws or any other particulars or documents and returns filed under this Act or the rules made thereunder shall be 1. Subs. by Act 11 of 2023, s. 42, for “sub-section (1)” (w.e.f. 3-8-2023). 2. Subs. by s. 43, ibid., for clause (a) (w.e.f. 3-8-2023). ----- maintained by the Central Registrar in the electronic form and registered or authenticated, as the case may be; (c) such applications, returns, reports, statement of accounts, registers, bye-laws or any other particulars or documents and returns filed under this Act or the rules made thereunder shall be maintained by the Central Registrar in the electronic form and registered or authenticated, as the case may be; (e) such fees, charges or other sums payable under this Act or the rules made thereunder shall be paid through the electronic form, in such manner as may be prescribed. (2) The Central Registrar shall— (a) issue certificate of registration; (b) register the amendment of bye-laws; (c) register change of registered office; (d) register any document; (e) issue any certificate; (f) issue notice; and (g) receive such communication as may be required to be registered or issued or recorded or received, as the case may be, under this Act or the rules made thereunder or perform duties or discharge functions or exercise powers under this Act or the rules made thereunder or do any act which is by this Act directed to be performed or discharged or exercised or done by the Central Registrar, in the electronic form in such manner as may be prescribed. **120B.** **Application of Banking Regulation Act, 1949.—The provisions of this Act shall apply to a** multi-State co-operative society in respect of matters relating to incorporation, regulation and winding up: Provided that in case of a multi-State co-operative society carrying on the business of banking, the provisions of the Banking Regulation Act, 1949 (10 of 1949) shall also apply.] **121. Certain Acts not to apply.—(1) The provisions of [1][the Companies Act, 2013 (18 of 2013)] and** 1[the Competition Act, 2002 (12 of 2003)] shall not apply to the multi-State co-operative societies. (2) The multi-State Co-operative societies registered or deemed to be registered under the provisions of this Act shall not indulge in monopolistic and restrictive trade practices as defined in the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969). **122. Central Government’s power to give directions to specified multi-State co-operative** **societies in public interest.—If the Central Government is satisfied that in the public interest or for the** purposes of securing proper implementation of co-operative production and other developmental programmes approved or undertaken by the Central Government or to secure proper management of the business of the specified multi-State co-operative societies generally or for preventing the affairs of such society being conducted in a manner detrimental to the interests of the members, any depositors or creditors thereof, it is necessary to issue directions to any class of specified multi-State co-operative societies generally or to any specified multi-State co-operative society or societies in particular, the Central Government may issue directions to it or to them, from time to time, and all such specified multi-State co-operative society or the societies concerned, as the case may be, shall be bound to comply with such directions. **123. Supersession of board of specified multi-State co-operative society.—(1) If in the opinion of** the Central Government, the board of any specified multi-State co-operative society is persistently making default or is negligent in the performance of the duties imposed on it by this Act or the rules or ----- the bye-laws [1][or has committed any act including fraud, misappropriation and the like which is prejudicial to the interests of the society or its members, or has omitted or failed to comply with any directions given to it under section 122 in public interest or that there is a stalemate in the constitution or functions of the board or the Co-operative Election Authority has failed to conduct elections in accordance with the provisions of this Act, the Central Government may, after giving the board an opportunity to state its objections, if any, and considering the objections, if received, by order in writing, supersede or suspend the board and appoint one or more administrators, who need not be members of the society, to manage the affairs of the society for such period not exceeding six months, as may be specified in the order:] 2[Provided that while taking a decision for supersession or suspension on grounds of failure to conduct election, such action shall only be taken if the Board had not given requisition to hold election to the Co-operative Election Authority within the time limit or not extended necessary assistance as per the provisions of section 45.] (2) The Central Government may fix such remuneration for the administrators, as it may think fit and the remuneration shall be paid out of the funds of the specified multi-State co-operative society. (3) The administrator shall, subject to the control of the Central Government and to such instructions as it may from time to time give, have power to exercise all or any of the functions of the board or of any officer of the specified multi-State co-operative society and take all such actions as may be required in the interests of the society. (4) Save as otherwise provided in sub-section (5), the administrator shall, before the expiry of his term of office, arrange for the constitution of a new board in accordance with the bye-laws of the specified multi-State co-operative society. (5) If, at any time during the period the administrator is in office, the Central Government considers it necessary or expedient so to do, it may, by order in writing giving reasons therefore, direct the administrator to arrange for the constitution of a new board for such specified multi-State co-operative society in accordance with the bye-laws of such society and immediately on the constitution of such board, the administrator shall hand over the management of such society to such newly constituted board and cease to function. (6) Where a specified multi-State co-operative society is indebted to any financial institution, the Central Government shall, before taking any action, under sub-section (1) in respect of that society, consult the financial institution. 3[Explanation.—For the purposes of section 122 and this section, the expression “specified multi State co-operative society” means any multi-State co-operative society where there is Government shareholding or loan or financial assistance or any guarantee by the Government.] **124. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form to be used, the particulars to be given and the conditions to be complied with in the making of applications under section 6 for the registration of a multi-State co-operative society and the procedure in the matter of such applications; 4[(aa) the guidelines under sub-section (2) of section 7;] (b) the matters in respect of which a multi-State co-operative society may make bye-laws under sub-section (2) of section10; (c) the manner in which the order of refusal to register any amendment of the bye-laws shall be communicated under sub-section (9) of section 11; 1. Subs. by Act 11 of 2023, s. 46, for the portion beginning with “or has committed any act” and ending with “the aggregate period does not exceed one year” (w.e.f. 3-8-2023). 2. Subs. by s. 46, ibid., for proviso (w.e.f. 3-8-2023). 3. Subs. by s. 46, ibid., for the Explanation (w.e.f. 3-8-2023). 4 I b 47 ibid ( f 3 8 2023) ----- (d) the manner in which a multi-State co-operative society shall have a principal place of business and registered address under section 14; (e) the procedure and conditions for change in the extent of the liability of a multi-State co-operative society under section 16; (f) the manner in which order of refusal to register an amendment of bye-laws shall be communicated under sub-section (4) of section 22; (g) the classification of federal co-operative and other terms and conditions applicable to in under sub-section (3) of section 23; (h) the restriction on holding the share capital of the society other than a member referred to in section 33; (i) the constitution and powers of smaller body representing the general body under the proviso to sub-section (1) of section38; (j) the period within which annual general meeting be called and the procedure at such meetings and the powers to be exercised by such meeting under section 39; 1[(ja) the manner in which the board of a multi-State co-operative society shall provide information, documents, personnel, funds or expenses or any other assistance as sought by the Co-operative Election Authority for conducting elections under clause (a) of sub-section (2) of section 43;] 2[(k) the composition of the Selection Committee for appointment of Chairperson, Vice-Chairperson and Members of the Co-operative Election Authority under sub-section (1) of section 45 (ka) the qualification and experience for appointment of Member of the Authority under clause (iii) of sub-section (3) of section 45; (kb) the salaries and allowances payable to, and other terms and conditions of service of the Chairperson, Vice-Chairperson and Members of the Authority under sub-section (5) of section 45; (kc) the other powers and functions of Chairperson under section 45A; (kd) the procedure of inquiry under sub-section (2) of section 45B; (ke) time, places and the procedure to be observed by the Authority in regard to transaction of business at its meetings under sub-section (1) of section 45H; (kf ) other functions of the Authority under clause (iii) of section 45-I; (kg) the manner of election of members of board by secret ballot under sub-section (3) of section 45J; (kh) the manner of bearing the expenses for holding elections by the Authority under sub-section (6) of section 45J; (ki) the manner of discharge of functions by the Returning Officers and observers under sub-section (1) and clause (a) of sub-section (3) of section 45K; (kj) other functions of the observers under clause (a) of sub-section (3) of section 45K;] (l) the nomination of members under the second proviso to sub-section (1) of section 48; (m) the additional measures and acts which may be taken or, as the case may be, done by the board under section 49; 3[(ma) the procedure for recruitment of employees under proviso to clause (e) of sub-section (2) of section 49;] (n) the salary and allowances payable to and other terms and conditions of the Chief Executive under sub-section (3) of section 51; 1. Ins. by Act 11 of 2023, s. 47 (w.e.f. 3-8-2023). ----- 1* - - - (p) the persons by whom and the form in which copies of entries in books of multi-State co-operative societies may be certified under section 58 and the charges to be levied for the supply of such copies; (q) providing aid to multi-State co-operative societies on certain terms and conditions under clause (g) of section 61; 2[(qa) the manner of maintenance of fund under clause (b) of sub-section (1) of section 63;] (r) the conditions under which profits may be distributed to the members of a multi-State co-operative society and the maximum rate of dividend which may be paid by the multi-State co-operative societies under section 63; (s) establishment of contributory provident fund under sub-section (1) of section 69; 2[(sa) the manner of appointment of Co-operative Ombudsman and submission of complaints to such Ombudsman under sub-section (1) of section 85A; (sb) the manner of filing an appeal by society against directions of Ombudsman under sub-section (3) of section 85A; (sc) other matters under clause (d) of sub-section (5) of section 85A;] (t) the manner of disposing of the surplus under clause (k) of sub-section (2) of section 90; (u) the manner in which surplus assets be divided by the Central Registrar with the previous sanction of the Central Government under clause (b) of section 91; (v) the appellate authority to be specified under sub-section (2) of section 99; (w) the procedure under section 103 for reconstitution and reorganisation of societies which became the multi-State co-operative societies consequent on reorganisation of States; 2[(wa) the manner of recovery and deposit of proceeds of unlawful gains under sub-section (6) of section 104; (wb) the manner to make an application with such fee for the purpose of getting information under sub-section (2) of section 106;] (x) the inspection of records of the society on payment of fees under clause (b) of sub-section (2) of section 107; 2[(xa) the manner of powers being exercised by the Central Government in respect of matters relating to filing of applications, documents, inspections and the like in electronic form under sub-section (1) of section 120A; (xb) the manner of discharging the functions or exercising powers with respect to matters mentioned therein by the Central Registrar in electronic form under sub-section (2) of section 120A;] (y) any other matter which is required to be, or may be, prescribed. 3[(3) Every rule made under this section and any notification issued under section 116 shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree that the rules and any notification issued under section 116 should not be made, the rule and any notification issued under section 116 shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule and any notification issued under section 116.] 1. Clause (o) omitted by Act 11 of 2023, s. 47 (w.e.f. 3-8-2023). ----- **125. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 1[(1A) Notwithstanding anything contained in sub-section (1), if any difficulty arises in giving effect to the provisions of this Act as amended by the Multi-State Co-operative Societies (Amendment) Act, 2023, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the date of commencement of the Multi-State Co-operative Societies (Amendment) Act, 2023.] **126. Repeal and saving.—(1) The Multi-State Co-operative Societies Act, 1984 (51 of 1984) is** hereby repealed. (2) Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897) with respect to repeals, any notification, rule, order, requirement, registration, certificate, notice, decision, direction, approval, authorisation, consent, application, request or thing made, issued given or done under the Multi-State Co-operative Societies Act, 1984 (51 of 1984) shall, if in force at the commencement of this Act, continue to be in force and have effect as if made, issued given or done under the corresponding provisions of this Act. (3) Every multi-State co-operative society existing, immediately before the commencement of this Act which has been registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other Act relating to co-operative societies in force, in any State or in pursuance of the provisions of the Multi-unit Co-operative Societies Act, 1942 (6 of 1942) or the Multi-State Co-operative Societies Act, 1984 (51 of 1984), shall be deemed to be registered under the corresponding provisions of this Act, and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, or the rules, continue to be in force until altered or rescinded. (4) All appointments, rules and orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the Acts referred to in sub-section (1) shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling the registration of a multi-State co-operative society shall be deemed, unless the society has already been finally liquidated, to be an order made under section 86 for its being wound up. (5) The provisions of this Act shall apply to— (a) any application for registration of a multi-State co-operative society; (b) any application for registration of amendment of bye-laws of a multi-State co-operative society, pending at the commencement of this Act and to the proceedings consequent thereon and to any registration granted in pursuance thereof. (6) Save as otherwise provided in this Act, any legal proceeding pending in any court or before the Central Registrar or any other authority at the commencement of this Act shall be continued to be in that court or before the Central Registrar or that authority as if this Act had not been passed. ----- THE FIRST SCHEDULE [See section 3(g)] CO-OPERATIVE PRINCIPLES 1. Voluntary and Open Membership.—Co-operatives are voluntary organisations, open to all persons capable of using their services and willing to accept the responsibilities of membership, without discrimination on bases of gender, social inequality, racial, political ideologies or religious consideration. 2. Democratic Member Control.—Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and decision making. Elected representatives of these co-operatives are responsible and accountable to their members. 3. Member’s Economic Participation.—Members contribute equitably and control the capital of their Co-operative democratically. At least a part of the surplus arising out of the economic results would be the common property of the co-operatives. The remaining surplus could be utilised benefiting the members in proportion to their share in the Co-operative. 4. **Autonomy and Independence.—Co-operatives are autonomous, self-help organisations** controlled by their members. If co-operatives enter into agreement with other organisations including Government or raise capital from external sources, they do so on terms that ensure their democratic control by members and maintenance of Co-operative autonomy. 5. Education, Training and Information.—Co-operatives provide education and training to their members, elected representatives and employees so that they can contribute effectively to the development of their Co-operatives. They also make the general public, particularly young people and leaders aware of the nature and benefits of co-operation. 6. Co-operation among Co-operatives.—Co-operatives serve their members most effectively and strengthen the co-operative movement, by working together through available local, regional, national and international structures. 7. Concern for Community.—While focusing on the needs of their members, co-operatives work for the sustainable development of communities through policies accepted by their members. ----- THE SECOND SCHEDULE [See sections 3(r) and 116] LIST OF NATIONAL CO-OPERATIVE SOCIETIES 1. National Co-operative Land Development Banks Federation Limited, Mumbai. 2. National Federation of State Co-operative Banks Limited, Mumbai. 3. National Co-operative Union of India Limited, New Delhi. 4. National Agricultural Co-operative Marketing Federation of India Limited, New Delhi. 5. National Co-operative Consumer’s Federation of India Limited, New Delhi. 6. National Federation of Co-operative Sugar Factories Limited, New Delhi. 1[7. ****] 8. National Co-operative Housing Federation Limited, New Delhi. 9. Indian Farmer’s Fertiliser Co-operative Limited, New Delhi. 10. All India Federation of Co-operative Spinning Mills Limited, Mumbai. 1[11. ****] 12. National Co-operative Dairy Federation of India Limited, Anand. 1[13.****] 1[14. ****] 15. All India Handloom Fabrics Marketing Co-operative Society Limited, New Delhi. 16. National Federation of Urban Co-operative Banks and Credit Societies Limited, New Delhi. 17. Krishak Bharati Co-operative Limited, New Delhi. 18. National Federation of Fishermen’s Co-operative Limited, New Delhi. 19. National Federation of Labour Co-operative Limited, New Delhi. 1[20. ****] 21. Tribal Co-operative Marketing Development Federation of India Limited, New Delhi. 2[22. National Cooperative Organics Limited, Anand, Gujarat. 23. Bharatiya Beej Sahakari Samiti Limited, New Delhi. 24. National Cooperative Exports Limited, New Delhi.] 1. The Serial numbers 7, 11, 13, 14 and 20 and the entries relating thereto, omitted vide notification S.O. No. 1396(E), dated ----- 1[THE THIRD SCHEDULE [See clause (h) of sub-section (1) of section 43] |Sl. No.|Name of the Act|Act Number| |---|---|---| |1.|The Indian Stamp Act, 1899|2 of 1899.| |2.|The Reserve Bank of India Act, 1934|2 of 1934.| |3.|The Central Excise Act, 1944|1 of 1944.| |4.|The Industries (Development and Regulation) Act, 1951|65 of 1951.| |5.|The Prevention of Food Adulteration Act, 1954|37 of 1954.| |6.|The Essential Commodities Act, 1955|10 of 1955.| |7.|The Securities Contracts (Regulation) Act, 1956|42 of 1956.| |8.|The Wealth-Tax Act,1957|27 of 1957.| |9.|The Customs Act, 1962|52 of 1962.| |10.|The Prize Chits and Money Circulation Schemes (Banning) Act, 1978|43 of 1978.| |11.|The Sick Industrial Companies (Special Provisions) Act, 1985|1 of 1986.| |12.|The Securities and Exchange Board of India Act, 1992|15 of 1992.| |13.|The Foreign Trade (Development and Regulation) Act, 1992|22 of 1992.| |14.|The Foreign Exchange Management Act, 1999|42 of 1999| |15.|The Competition Act, 2002|12 of 2003.| |16.|The Prevention of Money-Laundering Act, 2002|15 of 2003| |17.|The Companies Act, 2013|18 of 2013.]| -----
17-Dec-2002
58
The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/1889/4/A2002-58.pdf
central
# THE UNIT TRUST OF INDIA (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2002 ________ # ARRANGEMENT OF SECTIONS ________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II TRANSFER AND VESTING OF THE UNDERTAKING OF TRUST IN THE SPECIFIED COMPANY AND TRANSFER AND VESTING OF THE SPECIFIED UNDERTAKING OF TRUST IN THE ADMINISTRATOR 3. Transfer of initial capital. 4. Undertaking of Trust to vest in specified company and specified undertaking of Trust to vest in Administrator. 5. General effect of vesting of undertaking or specified undertaking in specified company or Administrator. 6. Provisions in respect of officers and other employees of Trust. CHAPTER III APPOINTMENT OF ADMINISTRATOR TO MANAGE THE SPECIFIED UNDERTAKING OF THE TRUST 7. Appointment of Administrator to manage specified undertaking. 8. Administrator to vacate office. CHAPTER IV POWERS AND FUNCTIONS OF ADMINISTRATOR 9. Board of Advisers. 10. Powers and functions of Administrator. 11. Maintenance of accounts by Administrator. CHAPTER V MISCELLANEOUS 12. Concession, etc., to be deemed to have been granted to specified undertaking. 13. Tax exemption or benefit to continue to have effect. 14. Exemption from stamp duty. 15. Guarantee to be operative. 16. Protection of action taken in good faith. 1 ----- SECTIONS 17. Shares, bonds, debentures and units to be deemed to be approved securities. 18. Substitution in every Act, rule, regulation or notification by specified company or Administrator in place of Trust. 19. Power of Central Government to alter Schedules I and II. 20. Power of Central Government to make Scheme. 21. Repeal and saving of Act 52 of 1963. 22. Act to have overriding effect. 23. Application of other laws not barred. 24. Power to remove difficulties. 25. Repeal and saving. SCHEDULE I. SCHEDULE II. 2 ----- # THE UNIT TRUST OF INDIA (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2002 ACT 58 OF 2002 [17th December, 2002.] 1An Act to provide for the transfer and vesting of the undertaking (excluding the specified # undertaking) of the Unit Trust of India to the specified company to be formed and registered under the Companies Act, 1956, and the transfer and vesting of the specified undertaking of the Unit Trust of India in the Administrator and for matters connected therewith or incidental thereto and also to repeal the Unit Trust of India Act, 1963. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Unit Trust of India (Transfer of** Undertaking and Repeal) Act, 2002. (2) It shall be deemed to have come into force on the 29th day of October, 2002. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Administrator” means a person or a body of persons appointed as Administrator under section 7; (b) “appointed day” means such date as the Central Government may, by notification in the Official Gazette, appoint under section 4; (c) “bank” shall have the meaning assigned to it in clause (d) of section 2 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993); (d) “Development Bank” means the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964); (e) “financial institution” shall have the meaning assigned to it in clause (h) of section 2 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993); (f) “Life Insurance Corporation of India” means the Life Insurance Corporation of India established under sub-section (1) of section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956); (g) “Schedule” means Schedules I and II to this Act; (h) “specified company” means a company to be formed and registered under the Companies Act, 1956 (1 of 1956) and whose entire capital is subscribed by such financial institutions or banks as may be specified by the Central Government, by notification in the Official Gazette, for the purpose of transfer and vesting of the undertaking; (i) “specified undertaking” includes all business, assets, liabilities and properties of the Trust representing and relatable to the schemes and Development Reserve Fund specified in the Schedule I; (j) “State Bank” means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); (k) “Trust” means the Unit Trust of India established under sub-section (1) of section 3 of the Unit Trust of India Act, 1963 (52 of 1963); (l) “undertaking” includes all business, assets, liabilities and properties of the Trust representing and relatable to the schemes and plans specified in the Schedule II; 1. Received the assent of the president on 17[th] December, 2002, published in the Gazette of India, Extraordinary, Part II, s. 1 dated the 18[th] December, 2002. 3 ----- (m) “unit” means a unit issued under a unit scheme made under section 21 of the Unit Trust of India Act, 1963 (52 of 1963). CHAPTER II TRANSFER AND VESTING OF THE UNDERTAKING OF TRUST IN THE SPECIFIED COMPANY AND TRANSFER AND VESTING OF THE SPECIFIED UNDERTAKING OF TRUST IN THE ADMINISTRATOR **3. Transfer of initial capital.—(1) On the appointed day, the initial capital of the Trust, contributed** by the Development Bank, the Life Insurance Corporation, the State Bank and the subsidiary banks and other institutions under sections 4 and 4A of the Unit Trust of India Act, 1963 (52 of 1963), as it stood immediately before the commencement of this Act, shall stand transferred to, and vest in, the Central Government. (2) The initial capital contributed by the Development Bank, the Life Insurance Corporation, the State Bank and the subsidiary banks and other institutions shall be refunded, by the Central Government, to such extent as may be determined by it, having regard to the book value, the assets and liabilities of the Trust. **4. Undertaking of Trust to vest in specified company and specified undertaking of Trust to vest** **in Administrator.—(1) On such date as the Central Government may, by notification in the Official** Gazette, appoint, there shall be transferred to, and vest in,— (a) the specified company, the undertaking (excluding the specified undertaking) of the Trust for such consideration and on such terms and conditions as may be mutually agreed upon between the Central Government and the subscribers to the capital of the specified company; (b) the Administrator, the specified undertaking of the Trust. (2) The decision of the Central Government, as to whether any business, assets, liabilities or properties represent or relate to the undertaking or specified undertaking, shall be final: Provided that any business, asset or property which is not represented or related to the undertaking or specified undertaking, shall vest in the Central Government. **5. General effect of vesting of undertaking or specified undertaking in specified company or** **Administrator.—(1) The undertaking of the Trust which is transferred to, and which vest in, the** specified company or the specified undertaking of the Trust, which is transferred to, and vest in, the Administrator, as the case may be, under section 4, shall be deemed to include all business, assets, rights, powers, authorities and privileges and all properties, movable and immovable, real and personal, corporeal and incorporeal, in possession or reservation, present or contingent of whatever nature and wheresoever situate including lands, buildings, vehicles, cash balances, deposits, foreign currencies, disclosed and undisclosed reserves, reserve fund, special reserve fund, benevolent reserve fund, any other fund, stocks, investments, shares, bonds, debentures, security, management of any industrial concern, loans, advances and guarantees given to industrial concerns, tenancies, leases and book-debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership, possession or power of the Trust in relation to the undertaking or the specified undertaking, as the case may be, within or without India, all books of account, registers, records and documents relating thereto and shall also be deemed to include all borrowings, liabilities, units issued and obligations of whatever kind within or without India then subsisting of the Trust in relation to such undertaking or the specified undertaking, as the case may be. (2) All contracts, deeds, bonds, guarantees, powers-of-attorney, other instruments (including all units issued and unit schemes formulated by the Trust) and working arrangements subsisting immediately before the appointed day and affecting the Trust shall cease to have effect or to be enforceable against the Trust and shall be of as full force and effect against or in favour of the specified company or the Administrator, as the case may be, in which the undertaking or specified undertaking has vested by virtue of this Act and enforceable as fully and effectually as if instead of the Trust, the specified company or the Administrator, as the case may be, had been named therein or had been a party thereto. (3) All unit schemes taken by the Board of the Trust immediately before the commencement of this Act shall be deemed to have been taken by the specified company or the Administrator, as the case may 4 ----- be, and all the units issued by the Trust under such scheme shall be deemed to be the units issued by the specified company or the Administrator, as the case may be, and the income on such units shall be distributed and such units shall be redeemed or purchased by them in the same manner as would have been done by the Trust had the undertaking or the specified undertaking not been transferred under section 4. (4) Any proceeding or cause of action pending or existing immediately before the appointed day by or against the Trust may, as from the appointed day, be continued and enforced by or against the specified company or the Administrator, as the case may be, in which the undertaking or specified undertaking has vested by virtue of this Act as it might have been enforced by or against the Trust if this Act had not been enacted and shall cease to be enforceable by or against the Trust. **6. Provisions in respect of officers and other employees of Trust.—(1) Every officer or other** employee of the Trust (except a trustee of the Board, the Chairman and executive trustee) serving in the employment immediately before the appointed day shall become, as from the appointed day, an officer or, as the case may be, other employee of the specified company and shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same obligations and with the same rights and privileges as to leave, leave fare concession, welfare scheme, medical benefit scheme, insurance, provident fund, other funds, retirement, voluntary retirement, gratuity and other benefits as he would have held under the Trust if its undertaking had not vested in the specified company and shall continue to do so as an officer or, as the case may be, other employee of the specified company or until the expiry of a period of six months from the appointed day if such officer or other employee opts not to continue to be the officer or other employee of the specified company within such period. (2) The Administrator, in consultation with the specified company, may requisition, the services of such officers or other employees as it may deem fit, on such terms and conditions which may be mutually agreed upon between the Administrator and the specified company. (3) Where an officer or other employee of the Trust opts under sub-section (1) not to be in employment or service of the specified company, such officer or other employee shall be deemed to have resigned. (4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, the transfer of the services of any officer or other employee of the Trust to the specified company shall not entitle such officer or other employee to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. (5) The officers and other employees who have retired before the appointed day from the service of the Trust and are entitled to any benefits, rights or privileges shall be entitled to receive the same benefits, rights or privileges from the specified company. (6) The Trust of the provident fund or the gratuity fund of the Unit Trust of India and any other bodies created for the welfare of officers or other employees would continue to discharge their functions in the specified company as was being done hitherto in the Unit Trust of India and any tax exemption granted to the provident fund or the gratuity fund would continue to be applied to the specified company. (7) Notwithstanding anything contained in this Act or in the Companies Act, 1956 (1 of 1956) or in any other law for the time being in force or in the regulations of the Unit Trust of India, the Chairman, the trustees, executive trustee or any other person entitled to manage the whole or substantial part of the business and affairs of the Trust shall not be entitled to any compensation against the Trust for the loss of office or for the premature termination of any contract of management entered into by him with the Trust. CHAPTER III APPOINTMENT OF ADMINISTRATOR TO MANAGE THE SPECIFIED UNDERTAKING OF THE TRUST **7. Appointment of Administrator to manage specified undertaking.—(1) The Central** Government shall, on and from the appointed day, appoint a person or a body of persons, as the “Administrator of the specified undertaking of the Unit Trust of India” for the purpose of taking over the 5 ----- administration thereof and the Administrator shall carry on the management of the specified undertaking of the Trust for and on behalf of the Central Government. (2) The Central Government may issue such directions (including directions as to initiating, defending or continuing any legal proceedings before any court, tribunal or other authority) to the Administrator as to his powers and functions as that Government may deem desirable and the Administrator may apply to the Central Government at any time for instructions as to the manner in which he shall conduct the management of the specified undertaking or in relation to any matter arising in the course of such management. (3) Subject to the other provisions of this Act and the Schemes made thereunder and the control of the Central Government, the Administrator shall be entitled, notwithstanding anything contained in any other law for the time being in force, to exercise, in relation to the management of the specified undertaking, the powers specified under section 10 including powers to dispose of any property or assets of such specified undertaking whether such powers are derived under any law for the time being in force. (4) Every person having possession, custody or control of any property forming part of the specified undertaking of the Trust shall deliver forthwith such property to the Administrator. (5) Any person who, on the appointed day, has in his possession or under his control any books, papers or other documents relating to the specified undertaking, including the minutes book containing the resolutions of the persons in charge of the management of the specified undertaking before the appointed day, the current cheque books relating to the specified undertaking, any letters, memoranda, notes or other communications between him and the Trust so far they relate to the specified undertaking shall, notwithstanding anything contained in any other law for the time being in force, be liable to account for the books, papers and other documents (including such minutes book, letters, memoranda, notes or other communications) to the Administrator. (6) Any person in charge of the management of the specified undertaking immediately before the appointed day shall, within ten days from that day or within such further period as the Central Government may allow in this behalf, furnish to the Administrator the complete inventory of all the properties and assets (including particulars of book-debts and investments and belongings) forming part of the specified undertaking immediately before the appointed day and of all the liabilities and obligations of such specified undertaking, in relation to its administration, subsisting immediately before that day, and also of all agreements relating to specified undertaking entered into by the Trust in relation to its administration and in force immediately before that day. (7) The Administrator shall receive from the funds of the specified undertaking such remuneration as the Central Government may fix. **8. Administrator to vacate office.—(1) The Administrator shall, immediately on redemption of all** the schemes of the specified undertaking and the payment of entire amount to [1][investors or from such date as may be notified by the Central Government in the Official Gazette, whichever is earlier,] vacate his office; but nothing in this sub-section shall be construed as prohibiting his appointment as a member of the Board of Advisers after vacation of his office as such. (2) On the vacation of his office, the Administrator shall forthwith deliver, to the Central Government or any institution or officer specified by it, possession of all assets and properties representing and relatable to the specified undertaking which are in his possession, custody and control on the date immediately preceding the date on which he vacates his office as the Administrator. CHAPTER IV POWERS AND FUNCTIONS OF ADMINISTRATOR **9. Board of Advisers.—(1) On such date as the Central Government may, by notification in the** Official Gazette, appoint a Board of Advisers to advise and assist the Administrator in carrying on the management of the specified undertaking. 1. Subs. by Act 8 of 2023, s. 173, for “investors, shall” (w.e.f. 1-4-2023). 6 ----- (2) The composition, term of office of the Advisers, the fees and allowances and other conditions of appointment, disqualifications for being an Adviser, filling up of casual vacancy in the office of the Adviser, the meetings of the Board of Advisers, vacation and resignation of office of the Advisers, shall be such as may be specified in the Scheme made by the Central Government. **10. Powers and functions of Administrator.—(1) Subject to the provisions of this Act and the** Scheme made thereunder, the Administrator may, on the advice of the Board of Advisers, transact any of the following kinds of business in India in relation to the specified undertaking only, namely:— (a) selling and purchasing units of the schemes specified in Schedule I; (b) investing in and acquiring, holding or disposing of securities and exercising and enforcing, all powers and rights incidental thereto including protection or realisation of such investment and the taking over of the administration of any property offered as security for such investment; (c) granting of loans and advances upon the security of any movable or immovable property or otherwise; (d) accepting, collecting, discounting, re-discounting, purchasing, selling or negotiating or otherwise dealing with, any bills of exchange, hundies, promissory notes, coupons, drafts, bill of lading, railway receipts, warehouse receipts, documents of title to goods, warrants, certificates, scrips and other mercantile instruments; (e) purchasing, selling or issuing participation certificates in relation to any loan or advance granted by any public financial institution or scheduled bank or such other institution as may be specified by the Central Government; (f) keeping money on deposit with companies or other bodies corporate, scheduled banks or such other institutions as may be specified by the Central Government; (g) formulating in relation to any unit scheme specified in Schedule I,— (i) savings and life insurance plan or plans under which a person may acquire an interest in units in association with or as the agent of, the Life Insurance Corporation of India or the Central Government, but not including the life insurance business; (ii) savings and insurance plan or plans under which a person may acquire an interest in units in association with, or as the agent of, the General Insurance Corporation but not including the general insurance business; or (iii) any other plan or plans, under which a person may acquire an interest in units; (h) acquiring immovable property or any interest therein, the development (including construction) and sale of such property and the rendering of financial and other assistance to any person for the acquisition of any immovable property or any interest therein and for the development (including construction) of such property; (i) providing leasing and hire purchase finance to persons, companies, and other bodies corporate; (j) providing merchant banking and investment advisory services; (k) extending investment or fund or port folio management services to persons resident outside India; (l) opening of an account or the making of an agency arrangement with a bank incorporated outside India; (m) buying or selling of or entering into such other dealings in, foreign exchange, as may be necessary for the discharge of its functions; (n) doing any other kind of business connected with mobilisation of savings or investments which the Central Government may authorise; (o) generally doing all such acts and things as may be incidental to or consequential upon the discharge of its functions under this Act. 7 ----- (2) The Administrator shall, on and after the appointed day, neither formulate any new scheme nor issue any new unit, whether related to the undertaking or the specified undertaking or otherwise. **11. Maintenance of accounts by Administrator.—(1) The Administrator shall maintain separate** accounts of each of the specified undertaking asset possession whereof has been taken by him, and shall cause to be made therein entries of all receipts and expenditure in respect thereof. (2) The separate accounts under sub-section (1) shall be maintained in such form and in such manner as may be specified by the Central Government. (3) The Central Government shall cause the accounts maintained under this section to be inspected and audited at such intervals and by such persons as may be specified by it. CHAPTER V MISCELLANEOUS **12. Concession, etc., to be deemed to have been granted to specified undertaking.—With effect** from the appointed day, all fiscal and other concessions, licences, benefits, privileges and exemptions granted to the Trust in connection with the affairs and business of the specified undertaking of the Trust under any law for the time being in force shall be deemed to have been granted in relation to the specified undertaking. **13. Tax exemption or benefit to continue to have effect.—(1) Notwithstanding anything contained** in the Income-tax Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to tax on income, profits or gains, no income-tax or any other tax shall be payable by the Administrator in relation to the specified undertaking [1][for the period beginning on the appointed day and ending on the 2[31st day of March, 2025]] in respect of any income, profits or gains derived, or any amount received in relation to the specified undertaking. (2) The transfer and vesting of the undertaking or the specified undertaking in terms of section 4 shall not be construed as a transfer within the meaning of the Income-tax Act, 1961 (43 of 1961) for the purposes of capital gains. **14. Exemption from stamp duty.—Notwithstanding anything contained in the Indian Stamp** Act, 1899 (2 of 1899), the transfer and vesting of the undertaking and the specified undertaking in terms of section 4 shall not be liable to the payment of any stamp duty under that Act. **15. Guarantee to be operative.—Any guarantee given for or in favour of the Trust with respect to** any loan, lease, finance or other assistance shall continue to be operative in relation to the specified undertaking managed by the Administrator. **16. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** the Central Government or the Administrator, Board of Advisers or any of the officers or other employees of the Central Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done under this Act. **17.** **Shares,** **bonds,** **debentures** **and** **units** **to** **be** **deemed** **to** **be** **approved** **securities.—Notwithstanding anything contained in any other law for the time being in force, the shares,** bonds, debentures and units of the specified undertaking shall be deemed to be approved securities for the purposes of the Indian Trusts Act, 1882 (2 of 1882), the Insurance Act, 1938 (4 of 1938) [3]***. **18. Substitution in every Act, rule, regulation or notification by specified company or** **Administrator in place of Trust.—In every Act, rule, regulation or notification in force on the appointed** day, for the words “Unit Trust of India”, wherever they occur, the words, brackets and figures “specified company referred to in the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002” or “Administrator of the specified undertaking of the Unit Trust of India referred to in the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002”, as the case may be, shall be substituted. **19. Power of Central Government to alter Schedules I and II.—(1) The Central Government may,** by notification in the Official Gazette, alter Schedules I and II. 1. Subs. by Act 18 of 2008, s. 123, for “for a period of five years computed from the appointed day” (w.e.f. 1-2-2008). 2. Subs. by Act 8 of 2023, s. 173, for “31st day of March, 2023” (w.e.f. 1-4-2023). 3. The words and figures “and the Banking Regulation Act, 1949” omitted by Act 4 of 2013, s. 17 and Schedule (w.e.f. 18-12013). 8 ----- (2) Every alteration made by the Central Government under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the alteration, or both Houses agree that the alteration should not be made, the alteration shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that alteration. **20. Power of Central Government to make Scheme.—(1) The Central Government may, by** notification in the Official Gazette, make a Scheme for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, the said Scheme may provide for all or any of the following matters, namely:— (a) the manner in which the specified undertaking and schemes and assets and investments specified in Schedule I shall be managed; (b) the term of office of the Advisers, the fee and allowances and other conditions of appointment of the Advisers, disqualifications for being an Adviser, filling up of casual vacancy in the office of Adviser, the meetings of Board of Advisers, vacation and resignation of office of the Advisers; (c) the manner of payment of consideration for which the undertaking shall be transferred to the specified company; (d) the assets representing and relatable to the undertaking and the specified undertaking; and (e) such incidental, consequential and supplemental matters as may be necessary to carry out the provisions of this Act. (3) Every Scheme made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Scheme or both Houses agree that the Scheme should not be made, the Scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Scheme. **21. Repeal and saving of Act 52 of 1963.—(1) On the appointed day, the Unit Trust of India** Act, 1963 shall stand repealed and the Board of trustees referred to in section 10 of the said Act (herein after referred to as the repealed Act) shall stand dissolved. (2) On the dissolution of the said Board, the person appointed as the Chairman of the Board and every other person appointed as the trustee and executive trustee and holding office as such immediately before such date shall vacate their respective offices. (3) Notwithstanding such repeal, anything done or any action taken or purported to have been done or taken including any rule, regulation, notification, scheme, inspection, order or notice made or issued or any appointment, confirmation or declaration made or any permission, authorisation or exemption granted or any document or instrument executed or any direction given under the Act hereby repealed shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act. (4) Notwithstanding the repeal of the Unit Trust of India Act, 1963 (52 of 1963), the Administrator shall, so far as may be, comply with the provisions of Chapter VI of the Act so repealed for any of the purposes related to the annual accounts and audit of the Trust. **22. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything in consistent therewith contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act. 9 ----- **23. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of the provisions of any other law for the time being in force. **24. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not in consistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **25. Repeal and saving.—(1) The Unit Trust of India (Transfer of Undertaking and Repeal)** Ordinance, 2002 (Ord. 5 of 2002) is hereby repealed. (2) Notwithstanding the repeal of the Unit Trust of India (Transfer of Undertaking and Repeal) Ordinance, 2002 (Ord. 5 of 2002), anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. 10 ----- SCHEDULE I [See sections 2(g), 2(i) and 19] PART I SCHEMES 1. The Unit Scheme, 1964 published on May 30, 1964, in the Gazette of India, Part III, Section 4, dated the 30th May, 1964. 2. The Children's Gift Plan-1970 published on December 11, 1971, in the Gazette of India, Part III, Section 4. 3. The Children's Gift Growth Fund Unit Scheme 1986 published on April 19, 1986, in the Gazette of India, Part III, Section 4, vide No. UT/392/DPD(P&R) 3B/Vol.-I/85-86, dated the 3rd April, 1986. 4. The Bhopal Gas Victims-Monthly Income Plan-1992 (BGVMIP) published on September 18, 1993, in the Gazette of India, Part III, Section 4, _vide_ No. UT/DBDM/360A/SPD-174/93-94, dated the 13th August, 1993. 5. The Rajlakshmi Unit Scheme (II) published on August 27, 1994, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/140A/SPD-55/93-94, dated the 29th July, 1994. 6. The Monthly Income Plan 1997 (IV) published on November 2, 1997, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/SPD-71-R/R-97-98, dated the 23rd October, 1997. 7. The Institutional Investors’ Special Fund Unit Scheme 1997 (II) published on February 21, 1998, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-96/SPD-89C/97-98, dated the 5th January, 1998. 8. The Monthly Income Plan 1997 (V) published on February 21, 1998, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-95/SPD-71S/97-98, dated the 12th January, 1998. 9. The Monthly Income Plan 1998 published on April 4, 1998, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-104/SPD-71T/97-98, dated the 5th March, 1998. 10. The Institutional Investors' Special Fund Unit Scheme 1998 (IISFUS' 98) published on May 23, 1998, in the Gazette of India, Part III, Section 4, _vide_ No. UT/DBDM/SPD-89-D/R-III/97-98, dated the 27th April, 1998. 11. The UTI NRI Fund (UNF) published on June 13, 1998, in the Gazette of India, Part III, Section 4, vide No. UT/NRI/R-113/N-52/97-98, dated the 15th May, 1998. 12. The Monthly Income Plan 1998 (II) published on August 1, 1998, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-119/SPD-71U/97-98, dated the 29th June, 1998. 13. The Monthly Income Plan (III) published on September 5, 1998, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-125/SPD-71-V/98-99, dated the 7th August, 1998. 14. The Monthly Income Plan (IV) published on February 27, 1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-160/SPD-71W/98-99, dated the 28th January, 1999. 15. The Monthly Income Plan 1998 (V) published on March 6, 1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-101 /SPD-71X/98-99, dated the 28th January, 1999. 11 ----- 16. The Children's Gift Growth Fund Unit Scheme 1999, published on May 29, 1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-175/SPD-55/98-99, dated the29th May, 1999. 17. The Institutional Investors' Special Fund Unit Scheme 1998 (II) published on May 29,1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R/SPD/98-99 dated the 31st March, 1999. 18. The Rajlakshmi Unit Plan 1999 published on May 29, 1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-175/SPD-59A/98-99. 19. The Monthly Income Plan 1999 published on June 12, 1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-179/SPD-71-Y/98-99, dated the 5th May, 1999. 20. The Special Unit Scheme-1999 formulated in pursuance of agreement between Government of India and Unit Trust of India signed on 22nd July, 1999. 21. The Monthly Income Plan 1999 (II) published on January 22, 2000, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-224/SPD-71-Z/ 99-2000, dated the 30th December, 1999. 22. The Monthly Income Plan 2000 published on April 15, 2000, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/SPD-119-A/R-235/99-2000, dated the 14th March, 2000. The Monthly Income Plan 2000 (Second) published on September 9, 2000, in the Gazette of 23. India, Part III, Section 4, vide No. UT/DBDM/SPD-119-B/ R-7/99-2000, dated the 10th August, 2000. 24. The Monthly Income Plan 2001 published on May 12, 2001, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-69/SPD-119-D/2000-2001, dated the 9th April, 2001. 25. The Monthly Income Plan 2000 (Third) published on January 13, 2001, in the Gazette of India, Part III, Section 4, _vide_ No. UT/DBDM/SPD-119-C/R15/2000-2001, dated the14th November, 2000. PART II ASSETS AND INVESTMENTS 26. All assets and investments made out of the Development Reserve Fund created in 1984 under sub-section (1) of section 25B of the Unit Trust of India Act, 1963 (52 of1963). 12 ----- SCHEDULE II [See sections 2(g), 2(l) and 19] SCHEMES AND PLANS 1. The Mutual Fund (Subsidiary) Unit Scheme, 1986 published on October 25, 1986, in the Gazette of India, Part III, Section 4, _vide_ No. 158/DPD (P&R) 100/Vol. I/86-87 dated the 9th October, 1986. 2. The Capital Growth Unit Scheme, 1992 (Master gain 92) published on July 4,1992, in the Gazette of India, Part III, Section 4, vide No. UT/ DBDM/ 1144/ SPD-185/91-92 dated the 8th June, 1992. 3. The Housing Unit Scheme-1992 published in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/ 155A/SPD-184/92-93 dated August 8, 1992. 4. The Unit Scheme 1992 published on April 17, 1993, in the Gazette of India, Part III, Section 4, _vide No. UT/DBDM/2044A/SPD-61/92-93._ 5. The Master Equity Plan-1993 published on July 17, 1993, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/2454A/SPD-74A/92-93. 6. The Senior Citizens Unit Plan published on August 28, 1993, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/393A/SPD-60/93-94 dated the 18th August, 1993. 7. The Equity Linked Savings Unit Scheme-1994 (ELSS 94) published on February 12, 1994, in the Gazette of India, Part III, Section 4, _vide_ No. UT/DBDM/R96A/SPD74B/93-94 dated the 11th January, 1994. 8. The Growing Corpus Growing Income Scheme-1994 (GCGI 94) published on April 2, 1994, in the Gazette of India, Part III, Section 4, _vide_ No. UT/DBDM/1704A/SPD-78/93-94 dated the 7th March, 1994. 9. The Grihalakshmi Unit Scheme 1994 (GUS 1994) published on August 20, 1994, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/76A/ SPD-68/93-94. 10. The Equity Linked Savings Unit Scheme 1995 (ELSS 95) published on February 11,1995, in the Gazette of India, Part III, Section 4, _vide_ No. UT/DBDM/680A/SPD-74C/94-95 dated the 10th January, 1995. 11. The Primary Equity Fund published on June 3, 1995, in the Gazette of India, Part III, Section 4, _vide No. UT/DBDM/ 1109A/SPD-85 /94-95 dated the 2nd May, 1995._ 12. The Master Equity Plan 1996 published on December 23, 1995, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/431-A/SPD-74D/ 95-96 dated the 30th November, 1995. 13. The Grandmaster Unit Scheme-1993 published on January 25, 1997, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-172/SPD-77/96-97 dated the 9th December, 1996. 14. The Master Equity Plan 1997 published on January 25, 1997, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R173/SPD-74-E/96-97 dated the 23rd December, 1996. 15. The UTI Money Market Fund (A MONEY MARKET MUTUAL FUND) published on July 26, 1997, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/SPD-93/R-223/96-97 dated the 24th June, 1997. 16. The Master Equity Plan 1998 published on February 21, 1998, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R 96/SPD-74F/97-98 dated the 5th January, 1998. 13 ----- 17. The Unit Growth Scheme 10,000 published on June 27, 1998, in the Gazette of India, Part III, Section 4. 18. The UTI-Bond Fund published on August 8, 1998, in the Gazette of India, Part III, Section 4, _vide No. UT/DBDM/R-121/SPD-102/97-98 dated the 14th July, 1998._ 19. The UTI-Small Investors’ Fund published on August 8, 1998, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-181/SPD-98/97-98 dated the 14th July, 1998. 20. The Master Value Unit Plan 1998 published on August 8, 1998, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/SPD-107/R-121/97-98 dated the 14th July, 1998. 21. The Master Index Fund published on August 15, 1998, in the Gazette of India, Part III, Section 4, _vide No. UT/DBDM/SPD-108 R-122/97-98 dated the 17th July, 1998._ 22. The Master share Plus Unit Scheme 1991 published on April 24, 1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-171/SPD-172/98-99 dated the 30th March, 1999. 23. The Master Equity Plan 1999 published on May 29, 1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R/SPD-74G/98-99 dated the 7th April, 1999. 24. The UTI Growth Sectors Fund (UTI - GSF) published on August 28, 1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/SPD-112/R194A/98-99 dated the 27th July, 1999. 25. The UTI G-Sec. Fund published on December 18, 1999, in the Gazette of India, Part III, Section 4, vide No. UT/DBM/R/SPD-114/99-2000 dated the 18th November, 1999. 26. The UTI Equity Tax Savings Plan published on March 18, 2000, in the Gazette of India, Part III, Section 4, vide No. UT/DBD/R-SPD-117/99-2000 dated the 9th February, 2000. 27. The Master growth Unit Scheme-1993 published on May 20, 2000, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-238/SPD-118/99-2000 dated the 17th April, 2000. 28. The Nifty Index Fund (NIF) published on May 20, 2000, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-239/SPD-120/99-2000 dated the 17th April, 2000. 29. The Unit Scheme 1995 (US-95) published on June 3, 2000, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-241/SPD-84/99-2000 dated the 3rd May, 2000. 30. The Index Select Equity Fund published on March 17, 2001, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-62/SD-96/2000 2001 dated the 12th February, 2001. 31. The Unit Scheme for Charitable and Religious Trusts and Registered Societies, 1981 published on April 28, 2001, in the Gazette of India, Part III, Section 4, _vide_ No. UT/DBDM/R-65/SPD53/2000-2001 dated the 20th March, 2001. 32. The Unit Linked Insurance Plan 1971 published on May 19, 2001, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-7/SD-52/2000-2001 dated the 24th April, 2001. 33. The Children's Career Plan (CCP) published on May 12, 2001, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-69/SPD-64/2000-2001 dated the 9th April, 2001. 34. The UTI-Mahila Unit Scheme (MUS) published on June 16, 2001, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R/SPD-68-A/2000-2001 dated the 11th May, 2001. 14 ----- 35. The Retirement Benefit Plan (RBP) published on August 10, 2002, in the Gazette of India, Part III, Section 4, vide No. UT/DBDM/R-47/SPD-66/ 2001-2002 dated the 25thJuly, 2002. 36. The UTI Regular Income Scheme. 37. The India Fund Unit Scheme 1986. 38. The India Access Fund Unit Scheme 1996. 39. The India Information Technology Fund Unit Scheme 1997. 40. The India Infrastructure Fund Unit Scheme 1999. 41. The India Media, Internet and Communication Fund Unit Scheme 2000. 42. The Variable Investment Scheme 2002. 43. The Unit Scheme 2002. 15 -----
17-Dec-2002
54
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2006/1/A2002-54.pdf
central
# THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 _____________ # ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGULATION OF SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS OF BANKS AND FINANCIAL INSTITUTIONS 3. Registration of asset reconstruction companies. 4. Cancellation of certificate of registration. 5. Acquisition of rights or interest in financial assets. 5A. Transfer of pending applications to any one of Debts Recovery Tribunals in certain cases. 6. Notice to obligor and discharge of obligation of such obligor. 7. Issue of security by raising of receipts or funds by asset reconstruction company. 8. Exemption from registration of security receipt. 9. Measures for assets reconstruction. 10. Other functions of asset reconstruction company. 11. Resolution of disputes. 12. Power of Reserve Bank to determine policy and issue directions. 12A. Power of Reserve Bank to call for statements and information. 12B. Power of Reserve Bank to carry out audit and inspection. CHAPTER III ENFORCEMENT OF SECURITY INTEREST 13. Enforcement of security interest. 14. Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset. 15. Manner and effect of take over of management. 16. No compensation to directors for loss of office. 17. Application against measures to recover secured debts. 17A. [Omitted.] 18. Appeal to Appellate Tribunal. 18A. Validation of fees levied. 18B. [Omitted.] 18C. Right to lodge a caveat. 1 ----- SECTIONS 19. Right of borrower to receive compensation and costs in certain cases. CHAPTER IV CENTRAL REGISTRY 20. Central Registry. 20A. Integration of registration systems with Central Registry. 20B. Delegation of powers. 21. Central Registrar. 22. Register of securitisation, reconstruction and security interest transactions. 23. Filing of transactions of securitisation, reconstruction and creation of security interest. 24. Modification of security interest registered under this Act. 25. Asset reconstruction company or secured creditors to report satisfaction of security interest. 26. Right to inspect particulars of securitisation, reconstruction and security interest transactions. 26A. Rectification by Central Government in matters of registration, modification and satisfaction, etc. CHAPTER IVA REGISTRATION BY SECURED CREDITORS AND OTHER CREDITORS 26B. Registration by secured creditors and other creditors. 26C. Effect of the registration of transactions, etc. 26D. Right of enforcement of securities. 26E. Priority to secured creditors. CHAPTER V OFFENCES AND PENALTIES 27. Penalties. 28. [Omitted.] 29. Offences. 30. Cognizance of offences. 30A. Power of adjudicating authority to impose penalty. 30B. Appeal against penalties. 30C. Appellate Authority. 30D. Recovery of penalties. CHAPTER VI MISCELLANEOUS 31. Provisions of this Act not to apply in certain cases. 31A. Power to exempt a class or classes of banks or financial institutions. 32. Protection of action taken in good faith. 33. Offences by companies. 34. Civil court not to have jurisdiction. 35. The provisions of this Act to override other laws. 36. Limitation. 37. Application of other laws not barred. 2 ----- SECTIONS 38. Power of Central Government to make rules. 39. Certain provisions of this Act to apply after Central Registry is set up or cause to be set up. 40. Power to remove difficulties. 41. Amendments to certain enactments. 42. Repeal and saving. THE SCHEDULE. 3 ----- # THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 ACT NO. 54 OF 2002 [17th December, 2002.] 1[An Act to regulate securitisation and reconstruction of financial assets and enforcement of # security interest and to provide for a Central database of security interests created on property rights, and for matters connected therewith or incidental thereto.] BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Securitisation and** Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 21st day of June, 2002. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “Appellate Tribunal” means a Debts Recovery Appellate Tribunal established under sub-section (1) of section 8 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993); (b) “asset reconstruction” means acquisition by any [2][asset reconstruction company] of any right or interest of any bank or financial institution in any financial assistance for the purpose of realisation of such financial assistance; 3[(ba) “asset reconstruction company” means a company registered with Reserve Bank under section 3 for the purposes of carrying on the business of asset reconstruction or securitisation, or both;] (c) “bank” means— (i) a banking company; or (ii) a corresponding new bank; or (iii) the State Bank of India; or (iv) a subsidiary bank; or 4[(iva) a multi-State co-operative bank; or] (v) such other bank which the Central Government may, by notification, specify for the purposes of this Act; (d) “banking company” shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); 1. Subs. by Act 44 of 2016, s. 2, for the long title (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid., for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 3. Ins. by s. 4, ibid. (w.e.f. 1-9-2016). 4. Ins. by Act 1 of 2013, s. 2 (w.e.f. 15-1-2013). 4 ----- (e) “Board” means the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (f) “borrower” means [1][any person who, or a pooled investment vehicle as defined in clause (da) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) which,] has been granted financial assistance by any bank or financial institution or who has given any guarantee or created any mortgage or pledge as security for the financial assistance granted by any bank or financial institution 2[and includes a person who, or a pooled investment vehicle which,] becomes borrower of a 3[asset reconstruction company] consequent upon acquisition by it of any rights or interest of any bank or financial institution in relation to such financial assistance [4][or who has raised funds through issue of debt securities]; (g) “Central Registry” means the registry set up or cause to be set up under sub-section (1) of section 20; 4[(ga) “company” means a company as defined in clause (20) of section 2 of the Companies Act, 2013 (18 of 2013);] (h) “corresponding new bank” shall have the meaning assigned to it in clause (da) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); 5[(ha) “debt” shall have the meaning assigned to it in clause (g) of section 2 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) and includes— (i) unpaid portion of the purchase price of any tangible asset given on hire or financial lease or conditional sale or under any other contract; (ii) any right, title or interest on any intangible asset or licence or assignment of such intangible asset, which secures the obligation to pay any unpaid portion of the purchase price of such intangible asset or an obligation incurred or credit otherwise extended to enable any borrower to acquire the intangible asset or obtain licence of such asset;] (i) “Debts Recovery Tribunal” means the Tribunal established under sub-section (1) of section 3 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of 1993); 4[(ia) “debt securities” means debt securities listed in accordance with the regulations made by the Board under the Securities and Exchange Board of India Act,1992 (15 of 1992);] 6[(j) “default” means— (i) non-payment of any debt or any other amount payable by the borrower to any secured creditor consequent upon which the account of such borrower is classified as non-performing asset in the books of account of the secured creditor; or (ii) non-payment of any debt or any other amount payable by the borrower with respect to debt securities after notice of ninety days demanding payment of dues served upon such borrower by the debenture trustee or any other authority in whose favour security interest is created for the benefit of holders of such debt securities;] 1. Subs. by Act 13 of 2021, s. 162, for “any person who” (w.e.f. 1-4-2021). 2. Subs. by s. 162, ibid., for “and includes a person who” (w.e.f. 1-4-2021). 3. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 4. Ins. by s. 4, ibid. (w.e.f. 1-9-2016). 5. Subs. by s. 4, ibid., for clause (ha) (w.e.f. 1-9-2016). 6. Subs. by s. 4, ibid., for clause (j) (w.e.f. 1-9-2016). 5 ----- (k) “financial assistance” means any loan or advance granted or any debentures or bonds subscribed or any guarantees given or letters of credit established or any other credit facility extended by any bank or financial institution [1][including funds provided for the purpose of acquisition of any tangible asset on hire or financial lease or conditional sale or under any other contract or obtaining assignment or licence of any intangible asset or purchase of debt securities;] (l) “financial asset” means debt or receivables and includes— (i) a claim to any debt or receivables or part thereof, whether secured or unsecured; or (ii) any debt or receivables secured by, mortgage of, or charge on, immovable property; or (iii) a mortgage, charge, hypothecation or pledge of movable property; or (iv) any right or interest in the security, whether full or part underlying such debt or receivables; or (v) any beneficial interest in property, whether movable or immovable, or in such debt, receivables, whether such interest is existing, future, accruing, conditional or contingent; or 1[(va) any beneficial right, title or interest in any tangible asset given on hire or financial lease or conditional sale or under any other contract which secures the obligation to pay any unpaid portion of the purchase price of such asset or an obligation incurred or credit otherwise provided to enable the borrower to acquire such tangible asset; or (vb) any right, title or interest on any intangible asset or licence or assignment of such intangible asset, which secures the obligation to pay any unpaid portion of the purchase price of such intangible asset or an obligation incurred or credit otherwise extended to enable the borrower to acquire such intangible asset or obtain licence of the intangible asset; or] (vi) any financial assistance; (m) “financial institution” means— (i) a public financial institution within the meaning of section 4A of the Companies Act, 1956 (1 of 1956); (ii) any institution specified by the Central Government under sub-clause (ii) of clause (h) of section 2 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993); (iii) the International Finance Corporation established under the International Finance Corporation (Status, Immunities and Privileges) Act, 1958 (42 of 1958); 1[(iiia) a debenture trustee registered with the Board and appointed for secured debt securities; (iiib) asset reconstruction company, whether acting as such or managing a trust created for the purpose of securitisation or asset reconstruction, as the case may be;] (iv) any other institution or non-banking financial company as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934), which the Central Government may, by notification, specify as financial institution for the purposes of this Act; 1[(ma) “financial lease” means a lease under any lease agreement of tangible asset, other than negotiable instrument or negotiable document, for transfer of lessor's right therein to the lessee for a 1. Ins. by Act 44 of 2016, s. 4 (w.e.f. 1-9-2016). 6 ----- certain time in consideration of payment of agreed amount periodically and where the lessee becomes the owner of the such assets at the expiry of the term of lease or on payment of the agreed residual amount, as the case may be;] (n) “hypothecation” means a charge in or upon any movable property, existing or future, created by a borrower in favour of a secured creditor without delivery of possession of the movable property to such creditor, as a security for financial assistance and includes floating charge and crystallisation of such charge into fixed charge on movable property; 1[(na) “negotiable document” means a document, which embodies a right to delivery of tangible assets and satisfies the requirements for negotiability under any law for the time being in force including warehouse receipt and bill of lading;] (o) “non-performing asset” means an asset or account of a borrower, which has been classified by a bank or financial institution as sub-standard, [2][doubtful or loss asset,— (a) in case such bank or financial institution is administered or regulated by any authority or body established, constituted or appointed by any law for the time being in force, in accordance with the directions or guidelines relating to assets classifications issued by such authority or body; (b) in any other case, in accordance with the directions or guidelines relating to assets classifications issued by the Reserve Bank]; (p) “notification” means a notification published in the Official Gazette; (q) “obligor” means a person liable to the originator, whether under a contract or otherwise, to pay a financial asset or to discharge any obligation in respect of a financial asset, whether existing, future, conditional or contingent and includes the borrower; (r) “originator” means the owner of a financial asset which is acquired by a [3][asset reconstruction company] for the purpose of securitisation or asset reconstruction; (s) “prescribed” means prescribed by rules made under this Act; (t) “property” means— (i) immovable property; (ii) movable property; (iii) any debt or any right to receive payment of money, whether secured or unsecured; (iv) receivables, whether existing or future; (v) intangible assets, being know-how, patent, copyright, trade mark, licence, franchise or any other business or commercial right of similar nature[1][as may be prescribed by the Central Government in consultation with Reserve Bank]; (u) “[4][qualified buyer]” means a financial institution, insurance company, bank, state financial corporation, state industrial development corporation, [2][trustee or [3][asset reconstruction company] which has been granted a certificate of registration under sub-section (4) of section 3 or any asset management company making investment on behalf of mutual fund] or a foreign institutional investor registered under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulations made thereunder,[1][any category of non-institutional investors as may 1. Ins. by Act 44 of 2016, s. 4 (w.e.f. 1-9-2016). 2. Subs. by Act 30 of 2004, s. 2, for certain words (w.e.f. 11-11-2004). 3. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 4. Subs. by s. 3, ibid., for “qualified institutional buyer” (w.e.f. 1-9-2016). 7 ----- be specified by the Reserve Bank under sub-section (1) of section 7] or any other body corporate as may be specified by the Board; 1* - - - (w) “Registrar of Companies” means the Registrar defined in clause (40) of section 2 of the Companies Act, 1956 (1 of 1956); (x) “Reserve Bank” means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); (y) “scheme” means a scheme inviting subscription to security receipts proposed to be issued by a 2[asset reconstruction company] under that scheme; (z) “securitisation” means acquisition of financial assets by any [2][asset reconstruction company] from any originator, whether by raising of funds by such [2][asset reconstruction company] from 3[qualified buyers] by issue of security receipts representing undivided interest in such financial assets or otherwise; 1* - - - (zb) “security agreement” means an agreement, instrument or any other document or arrangement under which security interest is created in favour of the secured creditor including the creation of mortgage by deposit of title deeds with the secured creditor; (zc) “secured asset” means the property on which security interest is created; 4[(zd) “secured creditor” means— (i) any bank or financial institution or any consortium or group of banks or financial institutions holding any right, title or interest upon any tangible asset or intangible asset as specified in clause (l); (ii) debenture trustee appointed by any bank or financial institution; or (iii) an asset reconstruction company whether acting as such or managing a trust set up by such asset reconstruction company for the securitisation or reconstruction, as the case may be; or (iv) debenture trustee registered with [5][the Board and appointed] for secured debt securities; or (v) any other trustee holding securities on behalf of a bank or financial institution, in whose favour security interest is created by any borrower for due repayment of any financial assistance.] (ze) “secured debt” means a debt which is secured by any security interest; 6[(zf) “security interest” means right, title or interest of any kind, other than those specified in section 31, upon property created in favour of any secured creditor and includes— (i) any mortgage, charge, hypothecation, assignment or any right, title or interest of any kind, on tangible asset, retained by the secured creditor as an owner of the property, given on hire or financial lease or conditional sale or under any other contract which secures the obligation to pay any unpaid portion of the purchase price of the asset or an obligation incurred or credit provided to enable the borrower to acquire the tangible asset; or 1. Omitted by Act 44 of 2016, s. 4 (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid., for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 3. Subs. by s. 3, ibid., for “qualified institutional buyers” (w.e.f. 1-9-2016). 4. Subs. by s. 4, ibid., for clause (zd) (w.e.f. 1-9-2016). 5. Subs. by Act 13 of 2021, s. 162, for “the Board appointed by any company” (w.e.f. 1-4-2021). 6. Subs. by Act 44 of 2016, s. 4, for clause (zf) (w.e.f. 1-9-2016). 8 ----- (ii) such right, title or interest in any intangible asset or assignment or licence of such intangible asset which secures the obligation to pay any unpaid portion of the purchase price of the intangible asset or the obligation incurred or any credit provided to enable the borrower to acquire the intangible asset or licence of intangible asset;] (zg) “security receipt” means a receipt or other security, issued by a [1][asset reconstruction company] to any [2][qualified buyer] pursuant to a scheme, evidencing the purchase or acquisition by the holder thereof, of an undivided right, title or interest in the financial asset involved in securitisation; (zh) “sponsor” means any person holding not less than ten per cent. of the paid-up equity capital of a [1][asset reconstruction company]; (zi) “State Bank of India” means the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 (23 of 1955); (zj) “subsidiary bank” shall have the meaning assigned to it in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959). (2) Words and expressions used and not defined in this Act but defined in the Indian Contract Act, 1872 (9 of 1872) or the Transfer of Property Act, 1882 (4 of 1882) or the Companies Act, 1956 (1 of 1956) or the Securities and Exchange Board of India Act, 1992 (15 of 1992) shall have the same meanings respectively assigned to them in those Acts. CHAPTER II REGULATION OF SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS OF BANKS AND FINANCIAL INSTITUTIONS **3. Registration of** **[3][asset reconstruction companies].—(1) No** [1][asset reconstruction company] shall commence or carry on the business of securitisation or asset reconstruction without— (a) obtaining a certificate of registration granted under this section; and 4[(b) having net owned fund of not less than two crore rupees or such other higher amount as the Reserve Bank, may, by notification, specify;] Provided that the Reserve Bank may, by notification, specify different amounts of owned fund for different class or classes of [3][asset reconstruction companies]: Provided further that a [1][asset reconstruction company], existing on the commencement of this Act, shall make an application for registration to the Reserve Bank before the expiry of six months from such commencement and notwithstanding anything contained in this sub-section may continue to carry on the business of securitisation or asset reconstruction until a certificate of registration is granted to it or, as the case may be, rejection of application for registration is communicated to it. (2) Every [1][asset reconstruction company] shall make an application for registration to the Reserve Bank in such form and manner as it may specify. (3) The Reserve Bank may, for the purpose of considering the application for registration of a [1][asset reconstruction company] to commence or carry on the business of securitisation or asset reconstruction, as the case may be, require to be satisfied, by an inspection of records or books of such [1][asset reconstruction company], or otherwise, that the following conditions are fulfilled, namely:— (a) that the [1][asset reconstruction company] has not incurred losses in any of the three preceding financial years; 1. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid., for “qualified institutional buyer” (w.e.f. 1-9-2016). 3. Subs. bys. 3, ibid., for “securitisation companies or reconstruction companies” (w.e.f. 1-9-2016). 4. Subs. by s. 5, ibid., for clause (b) (w.e.f. 1-9-2016). 9 ----- (b) that such [1][asset reconstruction company] has made adequate arrangements for realisation of the financial assets acquired for the purpose of securitisation or asset reconstruction and shall be able to pay periodical returns and redeem on respective due dates on the investments made in the company by the [2][qualified buyers] or other persons; (c) that the directors of [1][asset reconstruction company] have adequate professional experience in matters related to finance, securitisation and reconstruction; 3* - - - (e) that any of its directors has not been convicted of any offence involving moral turpitude; 4[(f) that a sponsor of an asset reconstruction company is a fit and proper person in accordance with the criteria as may be specified in the guidelines issued by the Reserve Bank for such persons;] (g) that [1][asset reconstruction company] has complied with or is in a position to comply with prudential norms specified by the Reserve Bank; 5[(h) that 1[asset reconstruction company] has complied with one or more conditions specified in the guidelines issued by the Reserve Bank for the said purpose.] (4) The Reserve Bank may, after being satisfied that the conditions specified in sub-section (3) are fulfilled, grant a certificate of registration to the [6][asset reconstruction company] to commence or carry on business of securitisation or asset reconstruction, subject to such conditions which it may consider, fit to impose. (5) The Reserve Bank may reject the application made under sub-section (2) if it is satisfied that the conditions specified in sub-section (3) are not fulfilled: Provided that before rejecting the application, the applicant shall be given a reasonable opportunity of being heard. (6) Every [1][asset reconstruction company] shall obtain prior approval of the Reserve Bank for any substantial change in its management [7][including appointment of any director on the board of directors of the asset reconstruction company or managing director or chief executive officer thereof] or change of location of its registered office or change in its name: Provided that the decision of the Reserve Bank, whether the change in management of a [8][asset reconstruction company] is a substantial change in its management or not, shall be final. _Explanation.—For the purposes of this section, the expression “substantial change in management”_ means the change in the management by way of transfer of shares or [9][change affecting the sponsorship in the company by way of transfer of shares or] amalgamation or transfer of the business of the company. **4. Cancellation of certificate of registration.—(1) The Reserve Bank may cancel a certificate of** registration granted to a [8][asset reconstruction company], if such company— (a) ceases to carry on the business of securitisation or asset reconstruction; or 1. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 2. Subs. bys. 3, ibid., for “qualified institutional buyers” (w.e.f. 1-9-2016). 3. Omitted by s. 5, ibid. (w.e.f. 1-9-2016). 4. Subs. by s. 5, ibid., for clause (f) (w.e.f. 1-9-2016). 5. Ins. by Act 30 of 2004, s. 3 (w.e.f. 11-11-2004). 6. Subs. by Act 44 of 2016, s. 3, for “securitisation company or the reconstruction company” (w.e.f. 1-9-2016). 7. Ins. by s. 5, ibid. (w.e.f. 1-9-2016). 8. Subs. by s. 3, ibid., for “securitisation company or a reconstruction company” (w.e.f. 1-9-2016). 9. Ins. by s. 5, ibid. (w.e.f. 1-9-2016). 10 ----- (b) ceases to receive or hold any investment from a [1][qualified buyer]; or (c) has failed to comply with any conditions subject to which the certificate of registration has been granted to it; or (d) at any time fails to fulfil any of the conditions referred to in clauses (a) to (g) of sub-section (3) of section 3; or (e) fails to— (i) comply with any direction issued by the Reserve Bank under the provisions of this Act; or (ii) maintain accounts in accordance with the requirements of any law or any direction or order issued by the Reserve Bank under the provisions of this Act; or (iii) submit or offer for inspection its books of account or other relevant documents when so demanded by the Reserve Bank; or (iv) obtain prior approval of the Reserve Bank required under sub-section (6) of section 3: Provided that before cancelling a certificate of registration on the ground that the [2][asset reconstruction company] has failed to comply with the provisions of clause (c) or has failed to fulfil any of the conditions referred to in clause (d) or sub-clause (iv) of clause (e), the Reserve Bank, unless it is of the opinion that the delay in cancelling the certificate of registration granted under sub-section (4) of section 3 shall be prejudicial to the public interest or the interests of the investors or the 3[asset reconstruction company], shall give an opportunity to such company on such terms as the Reserve Bank may specify for taking necessary steps to comply with such provisions or fulfilment of such conditions. (2) A [2][asset reconstruction company] aggrieved by the order of [4]*** cancellation of certificate of registration may prefer an appeal, within a period of thirty days from the date on which [5][such order of cancellation] is communicated to it, to the Central Government: Provided that before rejecting an appeal such company shall be given a reasonable opportunity of being heard. (3) A [2][asset reconstruction company], which is holding investments of [6][qualified buyers] and whose application for grant of certificate of registration has been rejected or certificate of registration has been cancelled shall, notwithstanding such rejection or cancellation be deemed to be a [2][asset reconstruction company] until it repays the entire investments held by it (together with interest, if any) within such period as the Reserve Bank may direct. **5. Acquisition of rights or interest in financial assets.—(1) Notwithstanding anything contained in** any agreement or any other law for the time being in force, any [2][asset reconstruction company] may acquire financial assets of any bank or financial institution— (a) by issuing a debenture or bond or any other security in the nature of debenture, for consideration agreed upon between such company and the bank or financial institution, incorporating therein such terms and conditions as may be agreed upon between them; or 1. Subs. by Act 44 of 2016, s. 3, for “qualified institutional buyer” (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid., for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 3. Subs. by s. 3, ibid., for “securitisation company or the reconstruction company” (w.e.f. 1-9-2016). 4. The words “rejection of application for registration or” omitted by Act 30 of 2004, s. 4 (w.e.f. 11-11-2004). 5. Subs. bys. 4, ibid., for “such order of rejection or cancellation” (w.e.f. 11-11-2004). 6. Subs. by Act 44 of 2016, s. 3, for “qualified institutional buyers” (w.e.f. 1-9-2016). 11 ----- (b) by entering into an agreement with such bank or financial institution for the transfer of such financial assets to such company on such terms and conditions as may be agreed upon between them. 1[(1A) Any document executed by any bank or financial institution under sub-section (1) in favour of the asset reconstruction company acquiring financial assets for the purposes of asset reconstruction or securitisation shall be exempted from stamp duty in accordance with the provisions of section 8F of the Indian Stamp Act, 1899 (2 of 1899): Provided that the provisions of this sub-section shall not apply where the acquisition of the financial assets by the asset reconstruction company is for the purposes other than asset reconstruction or securitisation.] (2) If the bank or financial institution is a lender in relation to any financial assets acquired under sub-section (1) by the [2][asset reconstruction company], such [3][asset reconstruction company] shall, on such acquisition, be deemed to be the lender and all the rights of such bank or financial institution shall vest in such company in relation to such financial assets. 1[(2A) If the bank or financial institution is holding any right, title or interest upon any tangible asset or intangible asset to secure payment of any unpaid portion of the purchase price of such asset or an obligation incurred or credit otherwise provided to enable the borrower to acquire the tangible asset or assignment or licence of intangible asset, such right, title or interest shall vest in the asset reconstruction company on acquisition of such assets under sub-section (1).] (3) Unless otherwise expressly provided by this Act, all contracts, deeds, bonds, agreements, powers of-attorney, grants of legal representation, permissions, approvals, consents or no-objections under any law or otherwise and other instruments of whatever nature which relate to the said financial asset and which are subsisting or having effect immediately before the acquisition of financial asset under sub-section (1) and to which the concerned bank or financial institution is a party or which are in favour of such bank or financial institution shall, after the acquisition of the financial assets, be of as full force and effect against or in favour of the [3][asset reconstruction company], as the case may be, and may be enforced or acted upon as fully and effectually as if, in the place of the said bank or financial institution, 3[asset reconstruction company], as the case may be, had been a party thereto or as if they had been issued in favour of [3][asset reconstruction company], as the case may be. (4) If, on the date of acquisition of financial asset under sub-section (1), any suit, appeal or other proceeding of whatever nature relating to the said financial asset is pending by or against the bank or financial institution, save as provided in the third proviso to sub-section (1) of section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) the same shall not abate, or be discontinued or be, in any way, prejudicially affected by reason of the acquisition of financial asset by the 3[asset reconstruction company], as the case may be, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the [3][asset reconstruction company], as the case may be. 4[(5) On acquisition of financial assets under sub-section (1), the 3[asset reconstruction company], may with the consent of the originator, file an application before the Debts Recovery Tribunal or the Appellate Tribunal or any court or other Authority for the purpose of substitution of its name in any pending suit, appeal or other proceedings and on receipt of such application, such Debts Recovery Tribunal or the Appellate Tribunal or court or Authority shall pass orders for the substitution of the [3][asset reconstruction company] in such pending suit, appeal or other proceedings.] 1. Ins. by Act 44 of 2016, s. 6 (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid., for “securitisation company or the reconstruction company” (w.e.f. 1-9-2016). 3. Subs. by s. 3, ibid., for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 4. Ins. by Act 1 of 2013, s. 3 (w.e.f. 15-1-2013). 12 ----- 1[5A.Transfer of pending applications to any one of Debts Recovery Tribunals in certain **cases.—(1) If any financial asset, of a borrower acquired by a** [2][asset reconstruction company], comprise of secured debts of more than one bank or financial institution for recovery of which such banks or financial institutions has filed applications before two or more Debts Recovery Tribunals the [2][asset reconstruction company] may file an application to the Appellate Tribunal having jurisdiction over any of such Tribunals in which such applications are pending for transfer of all pending applications to any one of the Debts Recovery Tribunals as it deems fit. (2) On receipt of such application for transfer of all pending applications under sub-section (1), the Appellate Tribunal may, after giving the parties to the application an opportunity of being heard, pass an order for transfer of the pending applications to any one of the Debts Recovery Tribunals. (3) Notwithstanding anything contained in the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993), any order passed by the Appellate Tribunal under sub-section (2) shall be binding on all the Debts Recovery Tribunals referred to in sub-section (1) as if such order had been passed by the Appellate Tribunal having jurisdiction on each such Debts Recovery Tribunal. (4) Any recovery certificate, issued by the Debts Recovery Tribunal to which all the pending applications are transferred under sub-section (2), shall be executed in accordance with the provisions contained in sub-section (23) of section 19 and other provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) shall, accordingly, apply to such execution.] **6. Notice to obligor and discharge of obligation of such obligor.—(1) The bank or financial** institution may, if it considers appropriate, give a notice of acquisition of financial assets by any [2][asset reconstruction company], to the concerned obligor and any other concerned person and to the concerned registering authority (including Registrar of Companies) in whose jurisdiction the mortgage, charge, hypothecation, assignment or other interest created on the financial assets had been registered. (2) Where a notice of acquisition of financial asset under sub-section (1) is given by a bank or financial institution, the obligor, on receipt of such notice, shall make payment to the concerned [2][asset reconstruction company], as the case may be, and payment made to such company in discharge of any of the obligations in relation to the financial asset specified in the notice shall be a full discharge to the obligor making the payment from all liability in respect of such payment. (3) Where no notice of acquisition of financial asset under sub-section (1) is given by any bank or financial institution, any money or other properties subsequently received by the bank or financial institution, shall constitute monies or properties held in trust for the benefit of and on behalf of the [2][asset reconstruction company], as the case may be, and such bank or financial institution shall hold such payment or property which shall forthwith be made over or delivered to [2][asset reconstruction company], as the case may be, or its agent duly authorised in this behalf. **7. Issue of security by raising of receipts or funds by** **[2][asset reconstruction company].—(1)** Without prejudice to the provisions contained in the Companies Act, 1956 (1 of 1956), the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the Securities and Exchange Board of India Act, 1992 (15 of 1992), any [2][asset reconstruction company], may, after acquisition of any financial asset under sub-section (1) of section 5, offer security receipts to qualified institute buyers [3][or such other category of investors including non-institutional investors as may be specified by the Reserve Bank in consultation with the Board, from time to time,] for subscription in accordance with the provisions of those Acts. 1. Ins. by Act 30 of 2004, s. 5 (w.e.f. 11-11-2004). 2. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 3. Subs. by s. 7, ibid., for “(other than by offer to public)” (w.e.f. 1-9-2016). 13 ----- (2) A [1][asset reconstruction company] may raise funds from the [2][qualified buyers] by formulating schemes for acquiring financial assets and shall keep and maintain separate and distinct accounts in respect of each such scheme for every financial asset acquired out of investments made by a [3][qualified buyer] and ensure that realisations of such financial asset is held and applied towards redemption of investments and payment of returns assured on such investments under the relevant scheme. 4[(2A) (a) The scheme for the purpose of offering security receipts under sub-section (1) or raising funds under sub-section (2), may be in the nature of a trust to be managed by the [1][asset reconstruction company], and the [1][asset reconstruction company] shall hold the assets so acquired or the funds so raised for acquiring the assets, in trust for the benefit of the [2][qualified buyers] holding the security receipts or from whom the funds are raised. (b) The provisions of the Indian Trusts Act, 1882 (2 of 1882) shall, except in so far as they are inconsistent with the provisions of this Act, apply with respect to the trust referred to in clause (a) above.] (3) In the event of non-realisation under sub-section (2) of financial assets, the [2][qualified buyers] of a 1[asset reconstruction company], holding security receipts of not less than seventy-five per cent. of the total value of the [5][security receipts issued under a scheme by such company], shall be entitled to call a meeting of all the [2][qualified buyers] and every resolution passed in such meeting shall be binding on the company. (4) The [2][qualified buyers] shall, at a meeting called under sub-section (3), follow the same procedure, as nearly as possible as is followed at meetings of the board of directors of the [1][asset reconstruction company], as the case may be. **8. Exemption from registration of security receipt.—Notwithstanding anything contained in** sub-section (1) of section 17 of the Registration Act, 1908 (16 of 1908),— (a) any security receipt issued by the [1][asset reconstruction company], as the case may be, under sub-section (1) of section 7, and not creating, declaring, assigning, limiting or extinguishing any right, title or interest, to or in immovable property except in so far as it entitles the holder of the security receipt to an undivided interest afforded by a registered instrument; or (b) any transfer of security receipts, shall not require compulsory registration. **6[9. Measures for assets reconstruction.—(1)Without prejudice to the provisions contained in any** other law for the time being in force, an asset reconstruction company may, for the purposes of asset reconstruction, provide for any one or more of the following measures, namely:— (a) the proper management of the business of the borrower, by change in, or take over of, the management of the business of the borrower; (b) the sale or lease of a part or whole of the business of the borrower; (c) rescheduling of payment of debts payable by the borrower; (d) enforcement of security interest in accordance with the provisions of this Act; (e) settlement of dues payable by the borrower; (f) taking possession of secured assets in accordance with the provisions of this Act; (g) conversion of any portion of debt into shares of a borrower company: 1. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid., for “qualified institutional buyers” (w.e.f. 1-9-2016). 3. Subs. by s. 3, ibid., for “qualified institutional buyer” (w.e.f. 1-9-2016). 4. Ins. by Act 30 of 2004, s. 6 (w.e.f. 11-11-2004). 5. Subs. by s. 6, ibid., for “security receipts issued by such company” (w.e.f. 11-11-2004). 6. Subs. by Act 44 of 2016, s. 8, for section 9 (w.e.f. 1-9-2016). 14 ----- Provided that conversion of any part of debt into shares of a borrower company shall be deemed always to have been valid, as if the provisions of this clause were in force at all material times. (2) The Reserve Bank shall, for the purposes of sub-section (1), determine the policy and issue necessary directions including the direction for regulation of management of the business of the borrower and fees to be charged. (3) The asset reconstruction company shall take measures under sub-section (1) in accordance with policies and directions of the Reserve Bank determined under sub-section (2).] **10. Other functions of [1][asset reconstruction company].—(1) Any [1][asset reconstruction company]** registered under section 3 may— (a) act as an agent for any bank or financial institution for the purpose of recovering their dues from the borrower on payment of such fee or charges as may be mutually agreed upon between the parties; (b) act as a manager referred to in clause (c) of sub-section (4) of section 13 on such fee as may be mutually agreed upon between the parties; (c) act as receiver if appointed by any court or tribunal: Provided that no [1][asset reconstruction company] shall act as a manager if acting as such gives rise to any pecuniary liability. (2) Save as otherwise provided in sub-section (1), no [1][asset reconstruction company] which has been granted a certificate of registration under sub-section (4) of section 3, shall commence or carry on, without prior approval of the Reserve Bank, any business other than that of securitisation or asset reconstruction: Provided that a [1][asset reconstruction company] which is carrying on, on or before the commencement of this Act, any business other than the business of securitisation or asset reconstruction or business referred to in sub-section (1), shall cease to carry on any such business within one year from the date of commencement of this Act. _Explanation.—For the purposes of this section, “[2][asset reconstruction company]” or “[3][asset_ reconstruction company]” does not include its subsidiary. **11. Resolution of disputes.—Where any dispute relating to securitisation or reconstruction or** non-payment of any amount due including interest arises amongst any of the parties, namely, the bank or financial institution or [1][asset reconstruction company] or [4][qualified buyer], such dispute shall be settled by conciliation or arbitration as provided in the Arbitration and Conciliation Act, 1996 (26 of 1996), as if the parties to the dispute have consented in writing for determination of such dispute by conciliation or arbitration and the provisions of that Act shall apply accordingly. **12. Power of Reserve Bank to determine policy and issue directions.—(1) If the Reserve Bank is** satisfied that in the public interest or to regulate financial system of the country to its advantage or to prevent the affairs of any [1][asset reconstruction company] from being conducted in a manner detrimental to the interest of investors or in any manner prejudicial to the interest of such [1][asset reconstruction company], it is necessary or expedient so to do, it may determine the policy and give directions to all or any [1][asset reconstruction company] in matters relating to income recognition, accounting standards, making provisions for bad and doubtful debts, capital adequacy based on risk weights for assets and also 1. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid., for “securitisation company” (w.e.f. 1-9-2016). 3. Subs. by s. 3, ibid., for “reconstruction company” (w.e.f. 1-9-2016). 4. Subs. by s. 3, ibid., for “qualified institutional buyer” (w.e.f. 1-9-2016). 15 ----- relating to deployment of funds by the [1][asset reconstruction company], as the case may be, and such company shall be bound to follow the policy so determined and the directions so issued. (2) Without prejudice to the generality of the power vested under sub-section (1), the Reserve Bank may give directions to any [1][asset reconstruction company] generally or to a class of [2][asset reconstruction companies] or to any [1][asset reconstruction company] in particular as to— (a) the type of financial asset of a bank or financial institution which can be acquired and procedure for acquisition of such assets and valuation thereof; (b) the aggregate value of financial assets which may be acquired by any [1][asset reconstruction company]; 3[(c) the fee and other charges which may be charged or incurred for management of financial assets acquired by any asset reconstruction company; (d) transfer of security receipts issued to qualified buyers.] 4[12A. Power of Reserve Bank to call for statements and information.—The Reserve Bank may at any time direct a [1][asset reconstruction company] to furnish it within such time as may be specified by the Reserve Bank, with such statements and information relating to the business or affairs of such [1][asset reconstruction company] (including any business or affairs with which such company is concerned) as the Reserve Bank may consider necessary or expedient to obtain for the purposes of this Act.] 5[12B. Power of Reserve Bank to carry out audit and inspection.—(1) The Reserve Bank may, for the purposes of this Act, carry out or caused to be carried out audit and inspection of an asset reconstruction company from time to time. (2) It shall be the duty of an asset reconstruction company and its officers to provide assistance and cooperation to the Reserve Bank to carry out audit or inspection under sub-section (1). (3) Where on audit or inspection or otherwise, the Reserve Bank is satisfied that business of an asset reconstruction company is being conducted in a manner detrimental to public interest or to the interests of investors in security receipts issued by such asset reconstruction company, the Reserve Bank may, for securing proper management of an asset reconstruction company, by an order— (a) remove the Chairman or any director or appoint additional directors on the board of directors of the asset reconstruction company; or (b) appoint any of its officers as an observer to observe the working of the board of directors of such asset reconstruction company: Provided that no order for removal of Chairman or director under clause (a) shall be made except after giving him an opportunity of being heard. (4) It shall be the duty of every director or other officer or employee of the asset reconstruction company to produce before the person, conducting an audit or inspection under sub-section (1), all such books, accounts and other documents in his custody or control and to provide him such statements and information relating to the affairs of the asset reconstruction company as may be required by such person within the stipulated time specified by him.] 1. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid., for “securitisation companies or reconstruction companies” (w.e.f. 1-9-2016). 3. Ins. by s. 9, ibid. (w.e.f. 1-9-2016). 4. Ins. by Act 30 of 2004, s. 7 (w.e.f. 11-11-2004). 5. Ins. by Act 44 of 2016, s. 10 (w.e.f. 1-9-2016). 16 ----- CHAPTER III ENFORCEMENT OF SECURITY INTEREST **13. Enforcement of security interest.—(1) Notwithstanding anything contained in section 69 or** section 69A of the Transfer of Property Act, 1882 (4 of 1882), any security interest created in favour of any secured creditor may be enforced, without the intervention of court or tribunal, by such creditor in accordance with the provisions of this Act. (2) Where any borrower, who is under a liability to a secured creditor under a security agreement, makes any default in repayment of secured debt or any instalment thereof, and his account in respect of such debt is classified by the secured creditor as non-performing asset, then, the secured creditor may require the borrower by notice in writing to discharge in full his liabilities to the secured creditor within sixty days from the date of notice failing which the secured creditor shall be entitled to exercise all or any of the rights under sub-section (4). 1[Provided that— (i) the requirement of classification of secured debt as non-performing asset under this sub-section shall not apply to a borrower who has raised funds through issue of debt securities; and (ii) in the event of default, the debenture trustee shall be entitled to enforce security interest in the same manner as provided under this section with such modifications as may be necessary and in accordance with the terms and conditions of security documents executed in favour of the debenture trustee.] (3) The notice referred to in sub-section (2) shall give details of the amount payable by the borrower and the secured assets intended to be enforced by the secured creditor in the event of non-payment of secured debts by the borrower. 2[(3A) If, on receipt of the notice under sub-section (2), the borrower makes any representation or raises any objection, the secured creditor shall consider such representation or objection and if the secured creditor comes to the conclusion that such representation or objection is not acceptable or tenable, he shall communicate [3][within fifteen days] of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower: Provided that the reasons so communicated or the likely action of the secured creditor at the stage of communication of reasons shall not confer any right upon the borrower to prefer an application to the Debts Recovery Tribunal under section 17 or the Court of District Judge under section 17A.] (4) In case the borrower fails to discharge his liability in full within the period specified in sub-section (2), the secured creditor may take recourse to one or more of the following measures to recover his secured debt, namely:— (a) take possession of the secured assets of the borrower including the right to transfer by way of lease, assignment or sale for realising the secured asset; 4[(b) take over the management of the business of the borrower including the right to transfer by way of lease, assignment or sale for realising the secured asset: 1. Ins. by Act 44 of 2016, s. 11 (w.e.f. 1-9-2016). 2. Ins. by Act 30 of 2004, s. 8 (w.e.f. 11-11-2004). 3. Subs. by Act 1 of 2013, s. 5, for “within one week” (w.e.f. 15-1-2013). 4. Subs. by Act 30 of 2004, s. 8, for clause (b) (w.e.f. 11-11-2004). 17 ----- Provided that the right to transfer by way of lease, assignment or sale shall be exercised only where the substantial part of the business of the borrower is held as security for the debt: Provided further that where the management of whole of the business or part of the business is severable, the secured creditor shall take over the management of such business of the borrower which is relatable to the security for the debt;] (c) appoint any person (hereafter referred to as the manager), to manage the secured assets the possession of which has been taken over by the secured creditor; (d) require at any time by notice in writing, any person who has acquired any of the secured assets from the borrower and from whom any money is due or may become due to the borrower, to pay the secured creditor, so much of the money as is sufficient to pay the secured debt. (5) Any payment made by any person referred to in clause (d) of sub-section (4) to the secured creditor shall give such person a valid discharge as if he has made payment to the borrower. 1[(5A) Where the sale of an immovable property, for which a reserve price has been specified, has been postponed for want of a bid of an amount not less than such reserve price, it shall be lawful for any officer of the secured creditor, if so authorised by the secured creditor in this behalf, to bid for the immovable property on behalf of the secured creditor at any subsequent sale. (5B) Where the secured creditor, referred to in sub-section (5A), is declared to be the purchaser of the immovable property at any subsequent sale, the amount of the purchase price shall be adjusted towards the amount of the claim of the secured creditor for which the auction of enforcement of security interest is taken by the secured creditor, under sub-section (4) of section 13. (5C) The provisions of section 9 of the Banking Regulation Act, 1949 (10 of 1949) shall, as far as may be, apply to the immovable property acquired by secured creditor under sub-section (5A).] (6) Any transfer of secured asset after taking possession thereof or take over of management under sub-section (4), by the secured creditor or by the manager on behalf of the secured creditor shall vest in the transferee all rights in, or in relation to, the secured asset transferred as if the transfer had been made by the owner of such secured asset. (7) Where any action has been taken against a borrower under the provisions of sub-section (4), all costs, charges and expenses which, in the opinion of the secured creditor, have been properly incurred by him or any expenses incidental thereto, shall be recoverable from the borrower and the money which is received by the secured creditor shall, in the absence of any contract to the contrary, be held by him in trust, to be applied, firstly, in payment of such costs, charges and expenses and secondly, in discharge of the dues of the secured creditor and the residue of the money so received shall be paid to the person entitled thereto in accordance with his rights and interests. 2[(8) Where the amount of dues of the secured creditor together with all costs, charges and expenses incurred by him is tendered to the secured creditor at any time before the date of publication of notice for public auction or inviting quotations or tender from public or private treaty for transfer by way of lease, assignment or sale of the secured assets,— (i) the secured assets shall not be transferred by way of lease assignment or sale by the secured creditor; and 1. Ins. by Act 1 of 2013, s. 5 (w.e.f. 15-1-2013). 2. Subs. by Act 44 of 2016, s. 11, for sub-section (8) (w.e.f. 1-9-2016). 18 ----- (ii) in case, any step has been taken by the secured creditor for transfer by way of lease or assignment or sale of the assets before tendering of such amount under this sub-section, no further step shall be taken by such secured creditor for transfer by way of lease or assignment or sale of such secured assets.] (9) [1][Subject to the provisions of the Insolvency and Bankruptcy Code, 2016, in the case of] financing of a financial asset by more than one secured creditors or joint financing of a financial asset by secured creditors, no secured creditor shall be entitled to exercise any or all of the rights conferred on him under or pursuant to sub-section (4) unless exercise of such right is agreed upon by the secured creditors representing not less than [2][sixty per cent.] in value of the amount outstanding as on a record date and such action shall be binding on all the secured creditors: Provided that in the case of a company in liquidation, the amount realised from the sale of secured assets shall be distributed in accordance with the provisions of section 529A of the Companies Act, 1956 (1 of 1956): Provided further that in the case of a company being wound up on or after the commencement of this Act, the secured creditor of such company, who opts to realise his security instead of relinquishing his security and proving his debt under proviso to sub-section (1) of section 529 of the Companies Act, 1956 (1 of 1956), may retain the sale proceeds of his secured assets after depositing the workmen's dues with the liquidator in accordance with the provisions of section 529A of that Act: Provided also that liquidator referred to in the second proviso shall intimate the secured creditor the workmen's dues in accordance with the provisions of section 529A of the Companies Act, 1956 (1 of 1956) and in case such workmen's dues cannot be ascertained, the liquidator shall intimate the estimated amount of workmen's dues under that section to the secured creditor and in such case the secured creditor may retain the sale proceeds of the secured assets after depositing the amount of such estimate dues with the liquidator: Provided also that in case the secured creditor deposits the estimated amount of workmen's dues, such creditor shall be liable to pay the balance of the workmen's dues or entitled to receive the excess amount, if any, deposited by the secured creditor with the liquidator: Provided also that the secured creditor shall furnish an undertaking to the liquidator to pay the balance of the workmen's dues, if any. _Explanation.—For the purposes of this sub-section,—_ (a) “record date” means the date agreed upon by the secured creditors representing not less than 2[sixty per cent.] in value of the amount outstanding on such date; (b) “amount outstanding” shall include principal, interest and any other dues payable by the borrower to the secured creditor in respect of secured asset as per the books of account of the secured creditor. (10) Where dues of the secured creditor are not fully satisfied with the sale proceeds of the secured assets, the secured creditor may file an application in the form and manner as may be prescribed to the Debts Recovery Tribunal having jurisdiction or a competent court, as the case may be, for recovery of the balance amount from the borrower. (11) Without prejudice to the rights conferred on the secured creditor under or by this section, the secured creditor shall be entitled to proceed against the guarantors or sell the pledged assets without first 1. Subs. by Act 31 of 2016, s. 251 and the Seventh Schedule, for “In the case of” (w.e.f. 15-11-2016). 2. Subs. by Act 1 of 2013, s. 5, for “three-fourth” (w.e.f. 15-1 -2013). 19 ----- taking any of the measured specifies in clauses (a) to (d) of sub-section (4) in relation to the secured assets under this Act. (12) The rights of a secured creditor under this Act may be exercised by one or more of his officers authorised in this behalf in such manner as may be prescribed. (13) No borrower shall, after receipt of notice referred to in sub-section (2), transfer by way of sale, lease or otherwise (other than in the ordinary course of his business) any of his secured assets referred to in the notice, without prior written consent of the secured creditor. **STATE AMENDMENT** **Jammu and Kashmir and Ladakh (UTs).—** **Amendment of section 13.—In sub-section (3A), in proviso thereto, omit “or the Court of District** Judge under section 17A”. [Vide Order No. 3807(E) dated 26th October, 2020, the Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Third Order, 2020 (w.e.f. 26-10-2020) and _Vide Union_ Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] **14. Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking** **possession of secured asset.—(1) Where the possession of any secured assets is required to be taken by** the secured creditor or if any of the secured assets is required to be sold or transferred by the secured creditor under the provisions of this Act, the secured creditor may, for the purpose of taking possession or control of any such secured assets, request, in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction any such secured asset or other documents relating thereto may be situated or found, to take possession thereof, and the Chief Metropolitan Magistrate or, as the case may be, the District Magistrate shall, on such request being made to him— (a) take possession of such asset and documents relating thereto; and (b) forward such asset and documents to the secured creditor: 1[Provided that any application by the secured creditor shall be accompanied by an affidavit duly affirmed by the authorised officer of the secured creditor, declaring that— (i) the aggregate amount of financial assistance granted and the total claim of the Bank as on the date of filing the application; (ii) the borrower has created security interest over various properties and that the Bank or Financial Institution is holding a valid and subsisting security interest over such properties and the claim of the Bank or Financial Institution is within the limitation period; (iii) the borrower has created security interest over various properties giving the details of properties referred to in sub-clause (ii)above; (iv) the borrower has committed default in repayment of the financial assistance granted aggregating the specified amount; (v) consequent upon such default in repayment of the financial assistance the account of the borrower has been classified as a non-performing asset; (vi) affirming that the period of sixty days notice as required by the provisions of sub-section (2) of section 13, demanding payment of the defaulted financial assistance has been served on the borrower; 1. Ins. by Act 1 of 2013, s. 6 (w.e.f. 15-1-2013). 20 ----- (vii) the objection or representation in reply to the notice received from the borrower has been considered by the secured creditor and reasons for non-acceptance of such objection or representation had been communicated to the borrower; (viii) the borrower has not made any repayment of the financial assistance in spite of the above notice and the Authorised Officer is, therefore, entitled to take possession of the secured assets under the provisions of sub-section (4) of section 13 read with section 14 of the principal Act; (ix) that the provisions of this Act and the rules made thereunder had been complied with: Provided further that on receipt of the affidavit from the Authorised Officer, the District Magistrate or the Chief Metropolitan Magistrate, as the case may be, shall after satisfying the contents of the affidavit pass suitable orders for the purpose of taking possession of the secured assets[1][within a period of thirty days from the date of application]: 1[Provided also that if no order is passed by the Chief Metropolitan Magistrate or District Magistrate within the said period of thirty days for reasons beyond his control, he may, after recording reasons in writing for the same, pass the order within such further period but not exceeding in aggregate sixty days.] Provided also that the requirement of filing affidavit stated in the first proviso shall not apply to proceeding pending before any District Magistrate or the Chief Metropolitan Magistrate, as the case may be, on the date of commencement of this Act.] 2[(1A) The District Magistrate or the Chief Metropolitan Magistrate may authorise any officer subordinate to him,— (i) to take possession of such assets and documents relating thereto; and (ii) to forward such assets and documents to the secured creditor.] (2) For the purpose of securing compliance with the provisions of sub-section (1), the Chief Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use, or cause to be used, such force, as may, in his opinion, be necessary. (3) No act of the Chief Metropolitan Magistrate or the District Magistrate [1][any officer authorised by the Chief Metropolitan Magistrate or District Magistrate] done in pursuance of this section shall be called in question in any court or before any authority. **15. Manner and effect of take over of management.—(1) [3][When the management of business of a** borrower istaken over by a [4][asset reconstruction company] under clause (a) of section 9 or, as the case may be, by a secured creditor under clause (b) of sub-section (4) of section 13], the secured creditor may, by publishing a notice in a newspaper published in English language and in a newspaper published in an Indian language in circulation in the place where the principal office of the borrower is situated, appoint as many persons as it thinks fit— (a) in a case in which the borrower is a company as defined in the Companies Act, 1956 (1 of 1956), to be the directors of that borrower in accordance with the provisions of that Act; or (b) in any other case, to be the administrator of the business of the borrower. (2) On publication of a notice under sub-section (1),— (a) in any case where the borrower is a company as defined in the Companies Act, 1956 (1 of 1956), all persons holding office as directors of the company and in any other case, all persons holding any office having power of superintendence, direction and control of the business of 1. Ins. by Act 44 of 2016, s. 12 (w.e.f. 1-9-2016). 2. Ins. by Act 1 of 2013, s. 6 (w.e.f. 15-1-2013). 3. Subs. by Act 30 of 2004, s. 9, for “When the management of business of a borrower is taken over by a secured creditor” (w.e.f. 11-11-2004). 4. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 21 ----- the borrower immediately before the publication of the notice under sub-section (1), shall be deemed to have vacated their offices as such; (b) any contract of management between the borrower and any director or manager thereof holding office as such immediately before publication of the notice under sub-section (1), shall be deemed to be terminated; (c) the directors or the administrators appointed under this section shall take such steps as may be necessary to take into their custody or under their control all the property, effects and actionable claims to which the business of the borrower is, or appears to be, entitled and all the property and effects of the business of the borrower shall be deemed to be in the custody of the directors or administrators, as the case may be, as from the date of the publication of the notice; (d) the directors appointed under this section shall, for all purposes, be the directors of the company of the borrower and such directors or as the case may be, the administrators appointed under this section, shall alone be entitled to exercise all the powers of the directors or as the case may be, of the persons exercising powers of superintendence, direction and control, of the business of the borrower whether such powers are derived from the memorandum or articles of association of the company of the borrower or from any other source whatsoever. (3) Where the management of the business of a borrower, being a company as defined in the Companies Act, 1956 (1 of 1956), is taken over by the secured creditor, then, notwithstanding anything contained in the said Act or in the memorandum or articles of association of such borrower,— (a) it shall not be lawful for the shareholders of such company or any other person to nominate or appoint any person to be a director of the company; (b) no resolution passed at any meeting of the shareholders of such company shall be given effect to unless approved by the secured creditor; (c) no proceeding for the winding up of such company or for the appointment of a receiver in respect thereof shall lie in any court, except with the consent of the secured creditor. (4) Where the management of the business of a borrower had been taken over by the secured creditor, the secured creditor shall, on realisation of his debt in full, restore the management of the business of the borrower to him. 1[Provided that if any secured creditor jointly with other secured creditors or any asset reconstruction company or financial institution or any other assignee has converted part of its debt into shares of a borrower company and thereby acquired controlling interest in the borrower company, such secured creditors shall not be liable to restore the management of the business to such borrower.] **16. No compensation to directors for loss of office.—(1) Notwithstanding anything to the contrary** contained in any contract or in any other law for the time being in force, no managing director or any other director or a manager or any person in charge of management of the business of the borrower shall be entitled to any compensation for the loss of office or for the premature termination under this Act of any contract of management entered into by him with the borrower. (2) Nothing contained in sub-section (1) shall affect the right of any such managing director or any other director or manager or any such person in charge of management to recover from the business of the borrower, moneys recoverable otherwise than by way of such compensation. **17.** **[2][Application against measures to recover secured debts].—(1) Any person (including** borrower), aggrieved by any of the measures referred to in sub-section (4) of section 13 taken by the 1. Ins. by Act 44 of 2016, s. 13 (w.e.f. 1-9-2016). 2. Subs. by s. 14, ibid., for “Right to appeal” (w.e.f. 1-9-2016). 22 ----- secured creditor or his authorised officer under this Chapter,[1][may make an application along with such fee, as may be prescribed,] to the Debts Recovery Tribunal having jurisdiction in the matter within fortyfive days from the date on which such measure had been taken: 2[Provided that different fees may be prescribed for making the application by the borrower and the person other than the borrower.] 3[Explanation.—For the removal of doubts, it is hereby declared that the communication of the reasons to the borrower by the secured creditor for not having accepted his representation or objection or the likely action of the secured creditor at the stage of communication of reasons to the borrower shall not entitle the person (including borrower) to make an application to the Debts Recovery Tribunal under this sub-section.] 4[(1A) An application under sub-section (1) shall be filed before the Debts Recovery Tribunal within the local limits of whose jurisdiction— (a) the cause of action, wholly or in part, arises; (b) where the secured asset is located; or (c) the branch or any other office of a bank or financial institution is maintaining an account in which debt claimed is outstanding for the time being.] 5[(2) The Debts Recovery Tribunal shall consider whether any of the measures referred to in sub-section (4) of section 13 taken by the secured creditor for enforcement of security are in accordance with the provisions of this Act and the rules made thereunder. 6[(3) If, the Debts Recovery Tribunal, after examining the facts and circumstances of the case and evidence produced by the parties, comes to the conclusion that any of the measures referred to in sub-section (4) of section 13, taken by the secured creditor are not in accordance with the provisions of this Act and the rules made thereunder, and require restoration of the management or restoration of possession, of the secured assets to the borrower or other aggrieved person, it may, by order,— (a) declare the recourse to any one or more measures referred to in sub-section (4) of section 13 taken by the secured creditor as invalid; and (b) restore the possession of secured assets or management of secured assets to the borrower or such other aggrieved person, who has made an application under sub-section (1), as the case may be; and (c) pass such other direction as it may consider appropriate and necessary in relation to any of the recourse taken by the secured creditor under sub-section (4) of section 13.] (4) If, the Debts Recovery Tribunal declares the recourse taken by a secured creditor under sub-section (4) of section 13, is in accordance with the provisions of this Act and the rules made thereunder, then, notwithstanding anything contained in any other law for the time being in force, the secured creditor shall be entitled to take recourse to one or more of the measures specified under sub-section (4) of section 13 to recover his secured debt. 1. Subs. by Act 30 of 2004, s. 10, for “may prefer an appeal” (w.e.f. 21-6-2002). 2. Ins. by s. 10, ibid. (w.e.f. 21-6-2002). 3. Ins. bys. 10, ibid. (w.e.f. 11-11-2004). 4. Ins. by Act 44 of 2016, s. 14 (w.e.f. 1-9-2016). 5. Subs. by Act 30 of 2004, s.10, for sub-sections (2) and (3) (w.e.f. 11-11-2004). 6. Subs. by Act 44 of 2016, s. 14,for sub-section (3) (w.e.f. 1-9-2016). 23 ----- 1[(4A) Where— (i) any person, in an application under sub-section (1), claims any tenancy or leasehold rights upon the secured asset, the Debt Recovery Tribunal, after examining the facts of the case and evidence produced by the parties in relation to such claims shall, for the purposes of enforcement of security interest, have the jurisdiction to examine whether lease or tenancy,— (a) has expired or stood determined; or (b) is contrary to section 65A of the Transfer of Property Act, 1882 (4 of 1882); or (c) is contrary to terms of mortgage; or (d) is created after the issuance of notice of default and demand by the Bank under sub section (2) of section 13 of the Act; and (ii) the Debt Recovery Tribunal is satisfied that tenancy right or leasehold rights claimed in secured asset falls under the sub-clause (a) or sub-clause (b) or sub-clause (c) or sub-clause (d) of clause (i), then notwithstanding anything to the contrary contained in any other law for the time being in force, the Debt Recovery Tribunal may pass such order as it deems fit in accordance with the provisions of this Act.] (5) Any application made under sub-section (1) shall be dealt with by the Debts Recovery Tribunal as expeditiously as possible and disposed of within sixty days from the date of such application: Provided that the Debts Recovery Tribunal may, from time to time, extend the said period for reasons to be recorded in writing, so, however, that the total period of pendency of the application with the Debts Recovery Tribunal, shall not exceed four months from the date of making of such application made under sub-section (1). (6) If the application is not disposed of by the Debts Recovery Tribunal within the period of four months as specified in sub-section (5), any part to the application may make an application, in such form as may be prescribed, to the Appellate Tribunal for directing the Debts Recovery Tribunal for expeditious disposal of the application pending before the Debts Recovery Tribunal and the Appellate Tribunal may, on such application, make an order for expeditious disposal of the pending application by the Debts Recovery Tribunal. (7) Save as otherwise provided in this Act, the Debts Recovery Tribunal shall, as far as may be, dispose of the application in accordance with the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) and the rules made thereunder.] **17A. [Making of application to Court of District Judge in certain cases.] Omitted by the Jammu and** _Kashmir Reorganization (Adaptation of Central Laws) Order,_ 2020, vide notification No. S.O. 1123(E) _dated_ (18-3-2020) and _Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws)_ Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020). 1. Ins. by Act 44 of 2016, s. 14 (w.e.f. 1-9-2016). 24 ----- **18. Appeal to Appellate Tribunal.—(1) Any person aggrieved, by any order made by the Debts** Recovery Tribunal[1][under section 17, may prefer an appeal along with such fee, as may be prescribed] to the Appellate Tribunal within thirty days from the date of receipt of the order of Debts Recovery Tribunal. 2[Provided that different fees may be prescribed for filing an appeal by the borrower or by the person other than the borrower:] 3[Provided further that no appeal shall be entertained unless the borrower has deposited with the Appellate Tribunal fifty per cent. of the amount of debt due from him, as claimed by the secured creditors or determined by the Debts Recovery Tribunal, whichever is less: Provided also that the Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount to not less than twenty-five per cent. of debt referred to in the second proviso.] (2) Save as otherwise provided in this Act, the Appellate Tribunal shall, as far as may be, dispose of the appeal in accordance with the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) and rules made thereunder. 4[18A. Validation of fees levied.—Any fee levied and collected for preferring, before the commencement of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2004, an appeal to the Debts Recovery Tribunal or the Appellate Tribunal under this Act, shall be deemed always to have been levied and collected in accordance with law as if the amendments made to sections 17 and 18 of this Act by sections 10 and 12 of the said Act were in force at all material times. **18B.** [Appeal to High Court in certain cases.] _Omitted by the Jammu and Kashmir Reorganization_ _(Adaptation of Central Laws) Order, 2020, vide notification No. S.O. 1123(E) dated (18-3-2020) and Vide_ Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020). 5[18C. Right to lodge a caveat.—(1) Where an application or an appeal is expected to be made or has been made under sub-section (1) of section 17 or section 17A or sub-section (1) of section 18or section 18B, the secured creditor or any person claiming a right to appear before the Tribunal or the Court of District Judge or the Appellate Tribunal or the High Court, as the case may be, on the hearing of such application or appeal, may lodge a caveat in respect thereof. (2) Where a caveat has been lodged under sub-section (1),— (a) the secured creditor by whom the caveat has been lodged (hereafter in this section referred to as the caveator) shall serve notice of the caveat by registered post, acknowledgement due, on the person by whom the application has been or is expected to be made under sub-section (1); (b) any person by whom the caveat has been lodged (hereafter in this section referred to as the caveator) shall serve notice of the caveat by registered post, acknowledgement due, on the person by whom the application has been or is expected to be made under sub-section (1). (3) Where after a caveat has been lodged under sub-section (1), any application or appeal is filed before the Tribunal or the court of District Judge or the Appellate Tribunal or the High Court, as the case 1. Subs. by Act 30 of 2004, s. 12, for “under section 17, may prefer an appeal” (w.e.f. 21-6-2002). 2. Ins. by s. 12, ibid. (w.e.f. 21-6-2002). 3. Ins. by s. 12, ibid. (w.e.f. 11-11-2004). 4. Ins. by s. 13, ibid. (w.e.f. 11-11-2004). 5. Ins. by Act 1 of 2013, s. 7 (w.e.f. 15-1-2013). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 25 ----- may be, the Tribunal or the District Judge or the Appellate Tribunal or the High Court, as the case may be, shall serve a notice of application or appeal filed by the applicant or the appellant on the caveator. (4) Where a notice of any caveat has been served on the applicant or the Appellant, he shall periodically furnish the caveator with a copy of the application or the appeal made by him and also with copies of any paper or document which has been or may be filed by him in support of the application or the appeal. (5) Where a caveat has been lodged under sub-section (1), such caveat shall not remain in force after the expiry of the period of ninety days from the date on which it was lodged unless the application or appeal referred to in sub-section (1) has been made before the expiry of the said period.] **STATE AMENDMENT** **Jammu and Kashmir (UT).—** **Amendment of section 18(C)—(i) in sub-section (1), omit “or section 17A”, “or section 18B”, “or the** court of District Judge” and “or the High Court”; and (ii) in sub-section (3), omit “or the court of District Judge” and “or the High Court”. [Vide Order No. 3807(E) dated 26th October, 2020, the Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Third Order, 2020 (w.e.f. 26-10-2020) **Ladakh (UT).—** **Amendment of section 18(C)—** (a) In sub-section (1), omit,— (i) “or section 17A” and “or section 18B”; and (ii) “or the court of District Judge” and “or the High Court” whenever they occur; (b) in sub-section (3) omit “or the court of District Judge” and “or the High Court”. [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] **1[19. Right of borrower to receive compensation and costs in certain cases.—If the Debts Recovery** Tribunal or the Court of District Judge, on an application made under section 17 or section 17A or the Appellate Tribunal or the High Court on an appeal preferred under section 18 or section 18A, holds that the possession of secured assets by the secured creditor is not in accordance with the provisions of this Act and rules made thereunder and directs the secured creditors to return such secured assets to the 2[concerned borrowers or any other aggrieved person, who has filed the application under section 17 or section 17A or appeal under section 18 or section 18A, as the case may be, the borrower or such other person] shall be entitled to the payment of such compensation and costs as may be determined by such Tribunal or Court of District Judge or Appellate Tribunal or the High Court referred to in section 18B.] **STATE AMENDMENT** **Union Territory of Jammu and Kashmir** **Amendment of section 19.—(i) Omit “or the Court of District Judge”, occurring at both the places;** (ii) Omit “or section 17A” occurring at both the places; (iii) Omit “or the High Court; (iv) Omit “or section 18A” occurring at both the places; and (v) Omit “or the High Court referred to in section 18B” occurring at the end. **Insertion of new section:—After section 19, insert—** **19A. Transfer of Pending Applications.—All the pending applications before the court of District Judge** and the High Court under sections 17A and 18B respectively, shall stand transferred to the Tribunal and the Appellate Tribunal, as the case may be. [Vide Order No. 3807(E) dated 26th October, 2020, the Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Third Order, 2020 (w.e.f. 26-10-2020)]. **Union Territory of Ladakh—** Section 19.—In section 19,— (i) omit "or the court of District Judge", "or the High Court" and "or the High Court referred to in section 18B"; (ii) omit “or section 17A" and "or section 18A". 1. Subs. by Act 30 of 2004, s. 14, for section 19 (w.e.f. 11-11-2004). 2. Subs. by Act 44 of 2016, s. 15, for “concerned borrowers, such borrower” (w.e.f. 1-9-2016). 26 ----- [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] CHAPTER IV CENTRAL REGISTRY **20. Central Registry.—(1) The Central Government may, by notification, set up or cause to be set up** from such date as it may specify in such notification, a registry to be known as the Central Registry with its own seal for the purposes of registration of transaction of securitisation and reconstruction of financial assets and creation of security interest under this Act. (2) The head office of the Central Registry shall be at such place as the Central Government may specify and for the purpose of facilitating registration of transactions referred to in sub-section (1), there may be established at such other places as the Central Government may think fit, branch offices of the Central Registry. (3) The Central Government may, by notification, define the territorial limits within which an office of the Central Registry may exercise its functions. (4) The provisions of this Act pertaining to the Central Registry shall be in addition to and not in derogation of any of the provisions contained in the Registration Act, 1908 (16 of 1908), the Companies Act, 1956 (1 of 1956), the Merchant Shipping Act, 1958 (44 of 1958), the Patents Act, 1970 (39 of 1970), the Motor Vehicles Act, 1988 (49 of 1988), and the Designs Act, 2000 (16 of 2000) or any other law requiring registration of charges and shall not affect the priority of charges or validity thereof under those Acts or laws. 1[20A.Integration of registration systems with Central Registry.—(1) The Central Government may, for the purpose of providing a Central database, in consultation with State Governments or other authorities operating registration system for recording rights over any property or creation, modification or satisfaction of any security interest on such property, integrate the registration records of such registration systems with the records of Central Registry established under section 20, in such manner as may be prescribed. _Explanation.—For the purpose of this sub-section, the registration records includes records of registration_ under the Companies Act, 2013 (18 of 2013), the Registration Act, 1908 (16 of 1908), the Merchant Shipping Act, 1958 (44 of 1958), the Motor Vehicles Act, 1988 (59 of 1988), the Patents Act, 1970 (39 of 1970), the Designs Act, 2000 (16 of 2000) or other such records under any other law for the time being in force. (2) The Central Government shall after integration of records of various registration systems referred to in sub-section (1) with the Central Registry, by notification, declare the date of integration of registration systems and the date from which such integrated records shall be available; and with effect from such date, security interests over properties which are registered under any registration system referred to in sub-section (1) shall be deemed to be registered with the Central Registry for the purposes of this Act. **20B. Delegation of powers.—The Central Government may, by notification, delegate its powers and** functions under this Chapter, in relation to establishment, operations and regulation of the Central Registry to the Reserve Bank, subject to such terms and conditions as may be prescribed.] **21. Central Registrar.—(1) The Central Government may, by notification, appoint a person for the** purpose of registration of transactions relating to securitisation, reconstruction of financial assets and security interest created over properties, to be known as the Central Registrar. (2) The Central Government may appoint such other officers with such designations as it thinks fit for the purpose of discharging, under the superintendence and direction of the Central Registrar, such functions of the Central Registrar under this Act as he may, from time to time, authorise them to discharge. 1. Ins. by Act 44 of 2016, s. 16 (w.e.f. 1-9-2016). 27 ----- **22. Register of securitisation, reconstruction and security interest transactions.—(1) For the** purposes of this Act, a record called the Central Register shall be kept at the head office of the Central Registry for entering the particulars of the transactions relating to— (a) securitisation of financial assets; (b) reconstruction of financial assets; and (c)creation of security interest. (2) Notwithstanding anything contained in sub-section (1), it shall be lawful for the Central Registrar to keep the records wholly or partly in computer, floppies, diskettes or in any other electronic form subject to such safeguards as may be prescribed. (3) Where such register is maintained wholly or partly in computer, floppies, diskettes or in any other electronic form, under sub-section (2), any reference in this Act to entry in the Central Register shall be construed as a reference to any entry as maintained in computer or in any other electronic form. (4) The register shall be kept under the control and management of the Central Registrar. **23. Filing of transactions of securitisation, reconstruction and creation of security interest.—** 1[(1)] The particulars of every transaction of securitisation, asset reconstruction or creation of security interest shall be filed, with the Central Registrar in the manner and on payment of such fee as may be prescribed [2]***: 3* - - - 4[Provided 5*** that the Central Government may, by notification, require registration of all transactions of securitisation, or asset reconstruction or creation of security interest which are subsisting on or before the date of establishment of the Central Registry under sub-section (7) of section 20 within such period and on payment of such fees as may be prescribed.] 6[(2) The Central Government may, by notification, require the registration of transaction relating to different types of security interest created on different kinds of property with the Central Registry. (3) The Central Government may, by rules, prescribe forms for registration for different types of security interest under this section and fee to be charged for such registration.] **24. Modification of security interest registered under this Act.—Whenever the terms or** conditions, or the extent or operation of any security interest registered under this Chapter are or is 7[asset reconstruction company] or the secured creditors, as the case may be, to send to the Central Registrar, the particulars of such modification, and the provisions of this Chapter as to registration of a security interest shall apply to such modification modified, it shall be the duty of the [8][asset reconstruction company] or the of such security interest. **25.** [9][Asset reconstruction company] or secured creditors to report satisfaction of security **interest.—(1) The [9][asset reconstruction company] or the secured creditors as the case may be, shall give** intimation to the Central Registrar of the payment or satisfaction in full, of any security interest relating to the [10][asset reconstruction company] or the secured creditors and requiring registration under this Chapter, within thirty days from the date of such payment or satisfaction. 1. Section 23 numbered as sub-section (1) by Act 44 of 2016, s. 17 (w.e.f. 24-1-2020). 2.The certain words omitted by s. 17, ibid. (w.e.f. 24-1-2020). 3. The proviso omitted by s. 17, ibid. (w.e.f. 24-1-2020). 4. Ins. by Act 1 of 2013, s.8 (w.e.f. 15-5-2013). 5. The word “further” omitted by Act 44 of 2016, s. 17 (w.e.f. 24-1-2020). 6. Ins. by s. 17, ibid. (w.e.f. 24-1-2020). 7. Subs. by Act 44 of 2016, s. 3, for “reconstruction company” (w.e.f. 1-9-2016). 8. Subs. by s. 3, ibid., for “securitisation company” (w.e.f. 1-9-2016). 9. Subs. by s. 3, ibid., for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 10. Subs. by s. 3, ibid., for “securitisation company or the reconstruction company” (w.e.f. 1-9-2016). 28 ----- 1[(1A) On receipt of intimation under sub-section (1), the Central Registrar shall order that a memorandum of satisfaction shall be entered in the Central Register.] (2) [2][If the concerned borrower gives an intimation to the Central Registrar for not recording the payment or satisfaction referred to in sub-section (1), the Central Registrar shall on receipt of such intimation], cause a notice to be sent to the [3][asset reconstruction company] or the secured creditors calling upon it to show cause within a time not exceeding fourteen days specified in such notice, as to why payment or satisfaction should not be recorded as intimated to the Central Registrar. (3) If no cause is shown, the Central Registrar shall order that a memorandum of satisfaction shall be entered in the Central Register. (4) If cause is shown, the Central Registrar shall record a note to that effect in the Central Register, and shall inform the borrower that he has done so. **26. Right to inspect particulars of securitisation, reconstruction and security interest** **transactions.—(1) The particulars of securitisation or reconstruction or security interest entered in the** Central register of such transactions kept under section 22 shall be open during the business hours for inspection by any person on payment of such fees as may be prescribed. (2) The Central Register referred to in sub-section (1) maintained in electronic form shall also be open during the business hours for the inspection of any person through electronic media on payment of such fees as may be prescribed. 4[26A.Rectification by Central Government in matters of registration, modification and **satisfaction, etc.—(1) The Central Government, on being satisfied—** (a) that the omission to file with the Registrar the particulars of any transaction of securitisation, asset reconstruction or security interest or modification or satisfaction of such transaction or; the omission or mis-statement of any particular with respect to any such transaction or modification or with respect to any satisfaction or other entry made in pursuance of section 23 or section 24 or section 25 of the principal Act was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors; or (b) that on other grounds, it is just and equitable to grant relief, may, on the application of a secured creditor or [5][asset reconstruction company] or any other person interested on such terms and conditions as it may seem to the Central Government just and expedient, direct that the time for filing of the particulars of the transaction for registration or modification or satisfaction shall be extended or, as the case may require, the omission or mis-statement shall be rectified. (2) Where the Central Government extends the time for the registration of transaction of security interest or securitisation or asset reconstruction or modification or satisfaction thereof, the order shall not prejudice any rights acquired in respect of the property concerned or financial asset before the transaction is actually registered.] 1. Ins. by Act 30 of 2004, s. 15 (w.e.f. 11-11-2004). 2. Subs. by s. 15, ibid., for “The Central Registrar shall, on receipt of such intimation” (w.e.f. 11-11-2004). 3. Subs. by Act 44 of 2016, s. 3, for “securitisation company” (w.e.f. 1-9-2016). 4. Ins. by Act 1 of 2013, s. 9 (w.e.f. 15-1-2013). 5. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 29 ----- 1[CHAPTER IVA REGISTRATION BY SECURED CREDITORS AND OTHER CREDITORS **26B. Registration by secured creditors and other creditors.—(1) The Central Government may by** notification, extend the provisions of Chapter IV relating to Central Registry to all creditors other than secured creditors as defined in clause (zd) of sub-section (1) of section 2, for creation, modification or satisfaction of any security interest over any property of the borrower for the purpose of securing due repayment of any financial assistance granted by such creditor to the borrower. (2) From the date of notification under sub-section (1), any creditor including the secured creditor may file particulars of transactions of creation, modification or satisfaction of any security interest with the Central Registry in such form and manner as may be prescribed. (3) A creditor other than the secured creditor filing particulars of transactions of creation, modification and satisfaction of security interest over properties created in its favour shall not be entitled to exercise any right of enforcement of securities under this Act. (4) Every authority or officer of the Central Government or any State Government or local authority, entrusted with the function of recovery of tax or other Government dues and for issuing any order for attachment of any property of any person liable to pay the tax or Government dues, shall file with the Central Registry such attachment order with particulars of the assessee and details of tax or other Government dues from such date as may be notified by the Central Government, in such form and manner as may be prescribed. (5) If any person, having any claim against any borrower, obtains orders for attachment of property from any court or other authority empowered to issue attachment order, such person may file particulars of such attachment orders with Central Registry in such form and manner on payment of such fee as may be prescribed. **26C. Effect of the registration of transactions, etc.—(1) Without prejudice to the provisions** contained in any other law, for the time being in force, any registration of transactions of creation, modification or satisfaction of security interest by a secured creditor or other creditor or filing of attachment orders under this Chapter shall be deemed to constitute a public notice from the date and time of filing of particulars of such transaction with the Central Registry for creation, modification or satisfaction of such security interest or attachment order, as the case may be. (2) Where security interest or attachment order upon any property in favour of the secured creditor or any other creditor are filed for the purpose of registration under the provisions of Chapter IV and this Chapter, the claim of such secured creditor or other creditor holding attachment order shall have priority over any subsequent security interest created upon such property and any transfer by way of sale, lease or assignment or licence of such property or attachment order subsequent to such registration, shall be subject to such claim: Provided that nothing contained in this sub-section shall apply to transactions carried on by the borrower in the ordinary course of business. 1. Ins. by Act 44 of 2016, s. 18 (w.e.f. 24-1-2020). 30 ----- **26D. Right of enforcement of securities.—Notwithstanding anything contained in any other law for** the time being in force, from the date of commencement of the provisions of this Chapter, no secured creditor shall be entitled to exercise the rights of enforcement of securities under Chapter III unless the security interest created in its favour by the borrower has been registered with the Central Registry. **26E. Priority to secured creditors.—Notwithstanding anything contained in any other law for the** time being in force, after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority. _Explanation.—For the purposes of this section, it is hereby clarified that on or after the_ commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured creditors in payment of debt shall be subject to the provisions of that Code.] CHAPTER V OFFENCES AND PENALTIES **27. Penalties.—If a default is made—** (a) in filing under section 23, the particulars of every transaction of any securitisation or asset reconstruction or security interest created by a [1][asset reconstruction company] or secured creditors; or (b) in sending under section 24, the particulars of the modification referred to in that section; or (c) in giving intimation under section 25, every company and every officer of the company or the secured creditors and every officer of the secured creditor who is in default shall be punishable with fine which may extend to five thousand rupees for every day during which the default continues: 2[Provided that provisions of this section shall be deemed to have been omitted from the date of coming into force of the provisions of this Chapter and section 23 as amended by the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016 (44 of 2016).] **28.** [Penalties for non-compliance of direction of Reserve Bank.] _Omitted by the Enforcement of_ _Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act,_ 2016(44 of 2016) s. 20 (w.e.f. 1-9-2016). **29. Offences.—If any person contravenes or attempts to contravene or abets the contravention of the** provisions of this Act or of any rules made thereunder, he shall be punishable with imprisonment for a term which may extend to one year, or with fine, or with both. **3[30. Cognizance of offences.—(1) No court shall take cognizance of any offence punishable under** section 27 in relation to non-compliance with the provisions of section 23, section 24 or section 25 or under section 28 or section 29 or any other provisions of the Act, except upon a complaint in writing 1. Subs. by Act 44 of 2016, s. 3, for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 2. Ins. by s. 19, ibid. (w.e.f. 24-1-2020). 3. Subs. by Act 1 of 2013, s. 10, for section 30 (w.e.f. 15-1-2013). 31 ----- made by an officer of the Central Registry or an officer of the Reserve Bank, generally or specially authorised in writing in this behalf by the Central Registrar or, as the case may be, the Reserve Bank. (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act.] 1[30A. Power of adjudicating authority to impose penalty.—(1) Where any asset reconstruction company or any person fails to comply with any direction issued by the Reserve Bank under this Act the adjudicating authority may, by an order, impose on such company or person in default, a penalty not exceeding one crore rupees or twice the amount involved in such failure where such amount is quantifiable, whichever is more, and where such failure is a continuing one, a further penalty which may extend to one lakh rupees for every day, after the first, during which such failure continues. (2) For the purpose of imposing penalty under sub-section (1), the adjudicating authority shall serve a notice on the asset reconstruction company or the person in default requiring such company or person to show cause why the amount specified in the notice should not be imposed as a penalty and a reasonable opportunity of being heard shall be given to such person. (3) Any penalty imposed under this section shall be payable within a period of thirty days from the date of issue of notice under sub-section (2). (4) Where the asset reconstruction company fails to pay the penalty within the specified period under sub-section (3), the adjudicating authority shall, by an order, cancel its registration: Provided that an opportunity of being heard shall be given to such asset reconstruction company before cancellation of registration. (5) No complaint shall be filed against any person in default in any court pertaining to any failure under sub-section (1) in respect of which any penalty has been imposed and recovered by the Reserve Bank under this section. (6) Where any complaint has been filed against a person in default in the court having jurisdiction no proceeding for imposition of penalty against that person shall be taken under this section. _Explanation.—For the purposes of this section and sections 30B, 30C and 30D,—_ (i) “adjudicating authority” means such officer or a committee of officers of the Reserve Bank, designated as such from time to time, by notification, by the Central Board of Reserve Bank; (ii) “person in default” means the asset reconstruction company or any person which has committed any failure, contravention or default under this Act and any person incharge of such company or such other person, as the case may be, shall be liable to be proceeded against and punished under section 33 for such failure or contravention or default committed by such company or person. **30B. Appeal against penalties.—A person in default, aggrieved by an order passed under** sub-section (4) of section 30A, may, within a period of thirty days from the date on which such order is passed, prefer an appeal to the Appellate Authority: Provided that the Appellate Authority may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that there was sufficient cause for not filing it within such period. 1. Ins. by Act 44 of 2016, s. 21 (w.e.f. 1-9-2016). 32 ----- **30C. Appellate Authority.—(1) The Central Board of Reserve Bank may designate such officer or** committee of officers as it deems fit to exercise the power of Appellate Authority. (2) The Appellate Authority shall have power to pass such order as it deems fit after providing a reasonable opportunity of being heard to the person in default. (3) The Appellate Authority may, by an order stay the enforcement of the order passed by the adjudicating authority under section 30A, subject to such terms and conditions, as it deems fit. (4) Where the person in default fails to comply with the terms and conditions imposed by order under sub-section (3) without reasonable cause, the Appellate Authority may dismiss the appeal. **30D. Recovery of penalties.—(1) Any penalty imposed under section 30A shall be recovered as a** “recoverable sum” and shall be payable within a period of thirty days from the date on which notice demanding payment of the recoverable sum is served upon the person in default and, in the case of failure of payment by such person within such period, the Reserve Bank may, for the purpose of recovery,— (a) debit the current account, if any, of the person in default maintained with the Reserve Bank or by liquidating the securities, if any, held to the credit of such person in the books of the Reserve Bank; (b) issue a notice to the person from whom any amount is due to the person in default, requiring such person to deduct from the amount payable by him to the person in default, such amount equivalent to the amount of the recoverable sum, and to make payment of such amount to the Reserve Bank. (2) Save as otherwise provided in sub-section (4), a notice issued under clause (b) of sub-section (1) shall be binding on every person to whom it is issued, and, where such notice is issued to a post office, bank or an insurance company, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document for the purpose of any entry or endorsement thereof before payment is made, notwithstanding any rule, practice or requirement to the contrary. (3) Any claim in respect of any amount, arising after the date of issue of notice under sub-section (1) shall be void as against the demand contained in such notice. (4) Any person, to whom the notice is sent under sub-section (1), objects to such notice by a statement on oath that the sum demanded or any part thereof is not due to the person in default or that he does not hold any money for or on account of the person in default, then nothing contained in this section shall be deemed to require, such person to pay such sum or part thereof, as the case may be. (5) Where it is found that statement made by the person under sub-section (4) is false in material particulars, such person shall be personally liable to the Reserve Bank to the extent of his own liability to the person in default on the date of the notice, or to the extent of the recoverable sum payable by the person in default to the Reserve Bank, whichever is less. (6) The Reserve Bank may, at any time, amend or revoke any notice issued under sub-section (1) or extend the time for making the payment in pursuance of such notice. (7) The Reserve Bank shall grant a receipt for any amount paid to it in compliance with a notice issued under this section and the person so paying shall be fully discharged from his liability to the person in default to the extent of the amount so paid. 33 ----- (8) Any person discharging any liability to the person in default after the receipt of a notice under this section shall be personally liable to the Reserve Bank— (a) to the extent of his own liability to the person in default so discharged; or (b) to the extent of the recoverable sum payable by the person in default to the Reserve Bank, whichever is less. (9) Where the person to whom the notice is sent under this section, fails to make payment in pursuance thereof to the Reserve Bank, he shall be deemed to be the person in default in respect of the amount specified in the notice and action or proceedings may be taken or instituted against him for the realisation of the amount in the manner provided in this section. (10) The Reserve Bank may enforce recovery of recoverable sum through the principal civil court having jurisdiction in the area where the registered office or the head office or the principal place of business of the person in default or the usual place of residence of such person is situated as if the notice issued by the Reserve Bank were a decree of the Court. (11) No recovery under sub-section (10) shall be enforced, except on an application made to the principal civil court by an officer of the Reserve Bank authorised in this behalf certifying that the person in default has failed to pay the recoverable sum.] CHAPTER VI MISCELLANEOUS **31. Provisions of this Act not to apply in certain cases.—The provisions of this Act shall not apply** to— (a) a lien on any goods, money or security given by or under the Indian Contract Act, 1872 (9 of 1872) or the Sale of Goods Act, 1930 (3 of 1930) or any other law for the time being in force; (b) a pledge of movables within the meaning of section 172 of the Indian Contract Act, 1872 (9 of 1872); (c) creation of any security in any aircraft as defined in clause (1) of section 2 of the Aircraft Act, 1934 (24 of 1934); (d) creation of security interest in any vessel as defined in clause (55) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958); 1* - - - (f) any rights of unpaid seller under section 47 of the Sale of Goods Act, 1930 (3 of 1930); (g) [2][any properties not liable to attachment (excluding the properties specifically charged with the debt recoverable under this Act)]or sale under the first proviso to sub-section (1) of section 60 of the Code of Civil Procedure, 1908 (5 of 1908); (h) any security interest for securing repayment of any financial asset not exceeding one lakh rupees; (i) any security interest created in agricultural land; 1. Omitted by Act 44 of 2016, s. 22 (w.e.f. 1-9-2016). 2. Subs. by Act 30 of 2004, s. 17, for “any properties not liable to attachment” (w.e.f. 11-11-2004). 34 ----- (j) any case in which the amount due is less than twenty per cent. of the principal amount and interest thereon. 1[31A. Power to exempt a class or classes of banks or financial institutions.—(1)The Central Government may, by notification in the public interest, direct that any of the provisions of this Act,— (a) shall not apply to such class or classes of banks or financial institutions; or (b) shall apply to the class or classes of banks or financial institutions with such exceptions, modifications and adaptations, as may be specified in the notification. 2[(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days, and if, both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. (3) In reckoning any such period of thirty days as is referred to in sub-section (2), no account shall be taken of any period during which the House referred to in sub-section (2) is prorogued or adjourned for more than four consecutive days. (4) The copies of every notification issued under this section shall, as soon as may be after it has been issued, be laid before each House of Parliament.]] **32. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against [3][the Reserve Bank or the Central Registry or any secured creditor or any of its officers] for anything done or omitted to be done in good faith under this Act. **33. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was incharge of, and was responsible to, the company, for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company'' means any body corporate and includes a firm or other association of individuals; and (b) “director'', in relation to a firm, means a partner in the firm. **34. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which a Debts Recovery Tribunal or the Appellate Tribunal is 1. Ins. by Act 1 of 2013, s. 11 (w.e.f. 15-1-2013). 2. Subs. by Act 44 of 2016, s. 23, for sub-section (2) (w.e.f. 1-9-2016). 3. Subs. by Act 44 of 2016, s. 24, for “any secured creditor or any of his officers or manager exercising any of the rights of the secured creditor or borrower” (w.e.f. 1-9-2016). 35 ----- empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993). **35. The provisions of this Act to override other laws.—The provisions of this Act shall have effect,** notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. **36. Limitation.—No secured creditor shall be entitled to take all or any of the measures under** sub-section (4) of section 13, unless his claim in respect of the financial asset is made within the period of limitation prescribed under the Limitation Act, 1963 (36 of 1963). **37. Application of other laws not barred.—The provisions of this Act or the rules made thereunder** shall be in addition to, and not in derogation of, the Companies Act, 1956 (1 of 1956), the SecuritiesContracts (Regulation) Act, 1956 (42 of 1956), the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) or any other law for the time being in force. **38. Power of Central Government to make rules.—(1) The Central Government may, by** notification and in the Electronic Gazette as defined in clause (s) of section 2 of the Information Technology Act, 2000 (21 of 2000), make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 1[(a) other business or commercial rights of similar nature under clause (t) of section 2;] 2[(aa)] the form and manner in which an application may be filed under sub-section (10) of section 13; (b) the manner in which the rights of a secured creditor may be exercised by one or more of his officers under sub-section (12) of section 13; 3[(ba) the fee for making an application to the Debts Recovery Tribunal under sub-section (1) of section 17; (bb) the form of making an application to the Appellate Tribunal under sub-section (6) of section 17; (bc) the fee for preferring an appeal to the Appellate Tribunal under sub-section (1) of section 18;] 1[(bca) the manner of integration of records of various registration systems with the records of Central Registry under sub-section (1) of section 20A; (bcb) the terms and conditions of delegation of powers by the Central Government to the Reserve Bank under section 20B;] (c) the safeguards subject to which the records may be kept under sub-section (2) of section 22; (d) the manner in which the particulars of every transaction of securitisation shall be filed under section 23 and fee for filing such transaction; 1. Ins. by Act 44 of 2016, s. 25 (w.e.f. 1-9-2016). 2. Clause (a) renumbered as clause (aa) by s. 25, ibid. (w.e.f. 1-9-2016). 3. Ins. by Act 30 of 2004, s. 18 (w.e.f. 11-11-2004). 36 ----- [1][(da) the form for registration of different types of security interests and fee thereof under sub-section (3) of section 23;] (e) the fee for inspecting the particulars of transactions kept under section 22 and entered in the Central Register under sub-section (1) of section 26; (f) the fee for inspecting the Central Register maintained in electronic form under sub-section (2) of section 26; 1[(fa) the form and the manner for filing particulars of transactions under sub-section (2) of section 26B; (fb) the form and manner of filing attachment orders with the Central Registry and the date under sub-section (4) of section 26B; (fc) the form and manner of filing particulars of attachment order with the Central Registry and the fee under sub-section (5) of section 26B;] (g) any other matter which is required to be, or may be, prescribed, in respect of which provision is to be, or may be, made by rules. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **39. Certain provisions of this Act to apply after Central Registry is set up or cause to be set** **up.—The provisions of sub-sections (2), (3) and (4) of section 20 and sections 21, 22, 23, 24, 25, 26 and** 27 shall apply after the Central Registry is set up or cause to be set up under sub-section (1) of section 20. **40. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **41. Amendments to certain enactments.—The enactments specified in the Schedule shall be** amended in the manner specified therein. **42. Repeal and saving.—(1) The Securitisation and Reconstruction of Financial Assets and** Enforcement of Security Interest (Second) Ordinance, 2002 (Ord. 3 of 2002) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. 1. Ins. by Act 44 of 2016, s. 25 (w.e.f. 1-9-2016). 37 ----- THE SCHEDULE (See section 41) Year Act No. Short title Amendment 1956 1 The Companies Act, 1956. 1956 42 The Securities Contracts (Regulation) Act, 1956. 1986 1 The Sick Industrial Companies (Special Provisions) Act, 1985. In section 4A, in sub-section (1), after clause (vi), insert the following:— “(vii) the 1[asset reconstruction company] which has obtained a certificate of registration under sub-section (4) or section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.”. In section 2, in clause (h), after sub-clause (ib), insert the following:— “(ic) security receipt as defined in clause (zg) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.”. In section 15, in sub-section (1), after the proviso, insert the following:— “Provided further that no reference shall be made to the Board for Industrial and Financial Reconstruction after the commencement of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, where financial assets have been acquired by any 2[asset reconstruction company] under sub-section (1) of section 5 of that Act: Provided also that on or after the commencement of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, where a reference is pending before the Board for Industrial and Financial Reconstruction, such reference shall abate if the secured creditors, representing not less than three-fourth in value of the amount outstanding against financial assistance disbursed to the borrower of such secured creditors, have taken any measures to recover their secured debt under sub-section (4) of section 13 of that Act.”. 1. Subs. by Act 44 of 2016, s. 3, for “securitisation company or the reconstruction company” (w.e.f. 1-9-2016). 2. Subs. by s. 3, ibid., for “securitisation company or reconstruction company” (w.e.f. 1-9-2016). 38 -----
17-Dec-2002
60
The Metro Railways (Operation and Maintenance) Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2008/3/2002-60.pdf
central
# THE METRO RAILWAYS (OPERATION AND MAINTENANCE) ACT, 2002 _________ ARRANGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II GOVERNMENT METRO RAILWAY ADMINISTRATION 3. Constitution of Government metro railway. 4. Appointment of General Manager. CHAPTER III FUNCTIONS AND POWERS OF THE METRO RAILWAY ADMINISTRATION 5. Functions of metro railway administration. 6. Powers of metro railway administration. CHAPTER IV COMMISSIONER OF METRO RAILWAY SAFETY 7. Appointment of Commissioner of Metro Railway Safety. 8. Duties of Commissioner. 9. Powers of Commissioner. 10. Commissioner to be public servant. 11. Facilities to be provided to Commissioner. 12. Annual report. 13. Annual report to be laid before Parliament. CHAPTER V OPENING OF METRO RAILWAY 14. Sanction of Central Government to the opening of metro railway. 15. Formalities to be complied with before giving sanction to the opening of metro railway. 16. Sections 14 and 15 to apply to the opening of certain works. 17. Temporary suspension of traffic. 18. Power to close metro railway opened for public carriage of passengers. 19. Re-opening of closed metro railway. 1 ----- SECTIONS 20. Use of rolling stock. 21. Delegation of powers. 22. Power to make rules in respect of matters in this Chapter. CHAPTER VI WORKING OF THE METRO RAILWAY 23. Exhibition of fare tables at station and supply of tickets. 24. Exhibition and surrender of pass and ticket. 25. Prohibition against travelling without pass or ticket. 26. Carriage of goods. 27. Prohibition against travelling of person suffering from infectious or contagious diseases and powers to remove them. 28. Communication between passengers and metro railway officials in charge of trains. 29. Right of metro railway administration to display commercial advertisements on metro railway or on the premises occupied by it. 30. Carriage of dangerous or offensive material. 31. Power to remove persons from metro railway and its carriages. 32. Power to make rules. CHAPTER VII FARE FIXATION 33. Fixation of fare for carriage of passengers. 34. Constitution of Fare Fixation Committee. 35. Other terms and conditions and procedure to be followed. 36. Period for making recommendations. 37. Recommendations to be binding on metro railway administration. CHAPTER VIII ACCIDENTS 38. Notice of metro railway accident. 39. Inquiry by Commissioner. 40. Inquiry by metro railway administration. 41. Powers of Commissioner in relation to inquiries. 42. Statement made before Commissioner. 43. Procedure for conducting inquiry. 44. No inquiry, investigation, etc., to be made if the Commission of Inquiry is appointed. 45. Inquiry into accident not covered by section 38. 46. Returns. 47. Power to make rules in respect of matters in this Chapter. 2 ----- CHAPTER IX CLAIMS COMMISSIONER SECTIONS 48. Claims Commissioner. 49. Qualifications for appointment as Claims Commissioner. 50. Term of office. 51. Resignation and removal. 52. Salary and allowances and other conditions of service of Claims Commissioner. 53. Procedure and powers of Claims Commissioner. 54. Decision of Claims Commissioner. 55. Savings as to certain rights. 56. Power to make rules. CHAPTER X LIABILITY OF METRO RAILWAY ADMINISTRATION DUE TO ACCIDENTS 57. Extent of liability. 58. Application for compensation. CHAPTER XI OFFENCES AND PENALTIES 59. Drunkenness or nuisance on metro railway. 60. Penalty for taking or causing to take offensive material upon metro railway. 61. Penalty for taking or causing to take dangerous material upon metro railway. 62. Prohibition of demonstrations upon metro railway. 63. Penalty for travelling on roof, etc., of a train. 64. Penalty for unlawfully entering or remaining upon metro railway or walking on metro track. 65. Endangering the safety of passengers by metro railway official. 66. Abandoning train, etc., without authority. 67. Obstructing running of train, etc. 68. Obstructing metro railway official in his duties. 69. Travelling without proper pass or ticket or beyond authorised distance. 70. Needlessly interfering with means of communication in a train. 71. Altering or defacing or counterfeiting pass or ticket. 72. Defacing public notices. 73. Any sale of articles on metro railway. 74. Maliciously wrecking a train causing sabotage. 75. Penalty for unauthorised sale of tickets. 76. Maliciously hurting or attempting to hurt persons travelling by metro railway. 77. Endangering safety of persons travelling by metro railway by rash or negligent act or omission. 78. Damage to or destruction of certain metro railway properties. 79. Endangering the safely of persons travelling by metro railway by wilful act or omission. 80. Penalty for making a false claim for compensation. 81. Offences by companies. 3 ----- SECTIONS 82. Power of arrest without warrant. 83. Arrest of person likely to abscond, etc. 84. Magistrate having jurisdiction under the Act. 85. Place of trial. CHAPTER XII MISCELLANEOUS 86. Power of Central Government to issue directions. 87. Prohibition to work as non—Government metro railway. 88. Protection of action taken in good faith. 89. Restriction on execution against metro railway property. 90. Officials of metro railway administration to be public servants. 91. Procedure for delivery to metro railway administration of property detained by a metro railway official. 92. Proof of entries in records and documents. 93. Service of notice, etc., on metro railway administration. 94. Service of notice, etc., by metro railway administration. 95. Presumption where notice is served by registered post. 96. Representation of metro railway administration. 97. Appointment of security staff. 98. Delegation of powers. 99. Power to remove difficulties. 100. Power of Central Government to make rules. 101. Power of metro railway administration to make regulations. 102. Rules and regulations to be laid before Parliament. 103. Effect of Act inconsistent with other enactments. 104. Application of other Acts. 105. Repeal and savings. 4 ----- # THE METRO RAILWAYS (OPERATION AND MAINTENANCE) ACT, 2002 ACT NO. 60 OF 2002 [17th December, 2002.] # An Act to provide for the operation and maintenance and to regulate the working of the metro railway in the [1][National Capital Region, metropolitan city and metropolitan area] and for matters connected therewith and incidental thereto. BE it enacted by Parliament in the Fifty—third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—[2][(1) This Act may be called the Metro Railways** (Operation and Maintenance) Act, 2002. (2) It extends in the first instance to the National Capital Region and the Central Government may, by notification, after consultation with the State Government, extend this Act to such other metropolitan area and metropolitan city, except the metropolitan city of Calcutta, and with effect from such date as may be specified in that notification and thereupon the provisions of this Act shall apply to that metropolitan area or metropolitan city accordingly.] (3) It shall be deemed to have come into force on the 29th day of October, 2002. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** 3[(a) “Central Government”, in relation to technical planning and safety of metro railways, means the Ministry of the Government of India dealing with Railways; (aa) “Claims Commissioner” means a Claims Commissioner appointed under section 48;] (b) “Commissioner” means the Commissioner of the Metro Railway Safety appointed under section 7; (c) “development” with its grammatical variations means the carrying out of building, engineering, mining or other operations in, on, over or under land or the making of any material change on any building, or land, or planting of any tree on land and includes redevelopment; (d) “electric supply-line” shall have the meaning assigned to it under clause (f) of section 2 of the Indian Electricity Act, 1910 (9 of 1910); (e) “fare” means the charge levied for the carriage of passengers; (f) “Government metro railway” means a metro railway owned by the Central Government; (g) “land” includes any right or interest in any land; 4[(h) “metropolitan area” shall have the meaning assigned to it in clause (c) of article 243P of the Constitution; (ha) “metropolitan city” means the metropolitan city of Bombay, Calcutta, Delhi or Madras;] (i) “metro railway” means rail-guided mass rapid transit system having dedicated right-of-way, with steel wheel or rubber-tyred wheel coaches, but excluding tramways, for carriage of passengers, and includes— (A) all land within the boundary marks indicating the limits of the land appurtenant to a metro railway, (B) all rails tracks, sidings, yards or branches worked over for the purposes of, or in connection with, a metro railway, 1. Subs. by Act 34 of 2009, s. 5, for “metropolitan city of Delhi” (w.e.f. 7-9-2009). 2. Subs. by s. 6, ibid., for sub-sections (1) and (2) (w.e.f. 7-9-2009). 3. Subs. by s. 7, ibid., for cl. (a) (w.e.f. 7-9-2009). 4. Subs. by s. 7, ibid., for cl. (h) (w.e.f. 7-9-2009). 5 ----- (C) all stations, offices, ventilation shafts and ducts, warehouses, workshops, manufactories, fixed plants and machineries, sheds, depots and other works constructed for the purpose of, or in connection with, a metro railway; (j) “metro railway administration” in relation to— (i) a Government metro railway means the General Manager of that railway; or (ii) a non-Government metro railway means the person who is the owner or lessee of that metro railway or the person working that metro railway under an arrangement with the owner or lessee of that metro railway; (k) “metro railway official” means any person employed by the Central Government or by a metro railway administration in connection with the services of a metro railway; 1[(ka) “National Capital Region” means the National Capital Region as defined in clause (f) of section 2 of the National Capital Region Planning Board Act, 1985 (2 of 1985);] (l) “non-Government metro railway” means a metro railway other than a Government metro railway; (m) “notification” means a notification published in the Official Gazette; (n) “pass” means an authority given by the metro railway administration or by an officer appointed by that administration in this behalf, to a person allowing him to travel as a passenger on the metro railway, but does not include a ticket; (o) “prescribed” means prescribed by rules made by the Central Government under this Act; (p) “railway” shall have the meaning assigned to it in clause (31) of section 2 of the Railways Act, 1989 (24 of 1989); (q) “regulations” means the regulations made by the Government metro railway administration under this Act; (r) “rolling stock” includes locomotives, engines, carriages (whether powered or not), wagons, trollies and vehicles of all kinds moving or intended to move on rails; and (s) “telegraph line” shall have the meaning assigned to it in clause (4) of section 3 of the Indian Telegraph Act, 1885 (13 of 1885). (2) All other words and expressions used herein and not defined but defined in the Metro Railways (Construction of Works) Act, 1978 (33 of 1978) shall have the meanings, respectively, assigned to them in that Act. CHAPTER II GOVERNMENT METRO RAILWAY ADMINISTRATION **3. Constitution of Government metro railway.—(1) The Central Government may, for the purpose** of efficient administration of a Government metro railway, in [2][the National Capital Region, metropolitan city and metropolitan area], by notification, constitute such railways as it may deem fit. (2) A Government metro railway administration may, for efficient performance of its functions under this Act, appoint such officers and other employees as it considers necessary on such terms and conditions of service as may be determined by regulation. **4. Appointment of General Manager.—(1) The Central Government shall, by notification, appoint** a person to be the General Manager of a Government metro railway. (2) The general superintendence and control of a Government metro railway shall vest in the General Manager. 1. Ins. by Act 34 of 2009, s. 7 (w.e.f. 7-9-2009). 2. Subs. by s. 5, ibid., for “metropolitan city of Delhi” (w.e.f. 7-9-2009). 6 ----- CHAPTER III FUNCTIONS AND POWERS OF THE METRO RAILWAY ADMINISTRATION **5. Functions of metro railway administration.—The functions of a metro railway administration** shall be— (a) to maintain and operate metro railway, for public carriage of passengers, constructed in, upon, across, under or over any land, building, street, road or passage in [1][the National Capital Region, metropolitan city and metropolitan area]; and (b) to engage in any such other activities or perform such other functions as may be considered necessary for the purpose of the operation and maintenance of the metro railway in [1][the National Capital Region, metropolitan city and metropolitan area]. **6. Powers of metro railway administration.—(1) The metro railway administration shall have the** power to do anything which may be necessary or expedient for the purpose of carrying out its functions under the Act. (2) Without prejudice to the generality of the foregoing provision, such power shall include the power to— (a) acquire, hold and dispose of all kinds of properties owned by it, both movable and immovable; (b) improve, develop or alter any property or asset held by it; 2[(ba) develop any metro railway land for commercial use; (bb) provide for carriage of passengers by integrated transport services or any other mode of transport;] (c) center temporarily in or upon the lands adjoining the metro railway alignment in order to remove obstruction, or prevent imminent danger from any source, such as tree, post or structure, which may obstruct the movement of the rolling stock, or passengers, or the view of the signal provided for movement of the rolling stock; (d) execute any lease or grant any licence in respect of the property held by it; (e) enter into, assign and rescind any contract or obligation; (f) employ an agent or contractor for discharging its functions; (g) obtain licence from the Central Government to establish and maintain telegraph lines; 3[(ga) levy and collect penalties under this Act;] (h) lay down or place electric supply lines for conveyance and transmission of energy and to obtain licence for that purpose; and (i) do all incidental acts as are necessary for discharge of any function conferred, or imposed, on it by this Act. CHAPTER IV COMMISSIONER OF METRO RAILWAY SAFETY **7. Appointment of Commissioner of Metro Railway Safety.—[4][(1)] The Central Government may** appoint one or more Commissioners of Metro Railway Safety. 5[(2) The Commissioner shall function under the administrative control of the Chief Commissioner of Railway Safety appointed under section 5 of the Railways Act, 1989 (24 of 1989).] **8. Duties of Commissioner.—The Commissioner shall—** 1. Subs. by Act 34 of 2009, s. 5, for “metropolitan city of Delhi” (w.e.f. 7-9-2009). 2. Ins. by s. 8, ibid. (w.e.f. 7-9-2009). 3. Ins. by Act 18 of 2023, s. 2 and the Schedule (w.e.f. 6-10-2023). 4. S. 7 renumbered as sub-section (1) thereof by Act 34 of 2009, s. 9 (w.e.f. 7-9-2009). 5. Ins. by s. 9, ibid. (w. e. f. 7-9-2009). 7 ----- (a) inspect the metro railway with a view to determine whether it is fit to be opened for the public carriage of passengers and report thereon to the Central Government as required by or under this Act; (b) make such periodical or other inspections of metro railway, its rolling stock used thereon and its other installations as the Central Government may direct; (c) make an inquiry under the provisions of this Act into the cause of any accident on the metro railway; and (d) discharge such other duties as are conferred on him by or under this Act. **9. Powers of Commissioner.—Subject to the control of the Central Government, the Commissioner,** whenever it is necessary so to do for any of the purposes of this Act, may— (a) enter upon and inspect the metro railway or any rolling stock used thereon and its other installations; (b) by order in writing addressed to the metro railway administration, require the attendance before him of metro railway official and to require answers or returns to such inquiries as he thinks fit to make from such metro railway official or from the metro railway administration; and (c) require the production of any book, document or material object belonging to or in the possession or control of any metro railway administration which appears to him to be necessary to inspect. **10. Commissioner to be public servant.—The Commissioner shall be deemed to be a public servant** within the meaning of section 21 of the Indian Penal Code (45 of 1860). **11. Facilities to be provided to Commissioner.—The metro railway administration shall provide to** the Commissioner all reasonable facilities for the discharge of the duties or for the exercise of the powers imposed or conferred on him by or under this Act. 1[12. Annual report.—The Chief Commissioner of Railway Safety shall, for each financial year, prepare in such form, and within such time, as may be prescribed, an annual report giving a full account of the activities of the Commissioners during the financial year immediately preceding the financial year in which such report is prepared and forward copies thereof to the Central Government.] **13. Annual report to be laid before Parliament.—The Central Government shall cause the annual** report of the [2][Chief Commissioner of Railway Safety] to be laid after its receipt before each House of Parliament. CHAPTER V OPENING OF METRO RAILWAY **14. Sanction of Central Government to the opening of metro railway.—The metro railway in** 3[the National Capital Region, metropolitan city and metropolitan area] shall not be opened for the public carriage of passengers except with the previous sanction of the Central Government. **15. Formalities to be complied with before giving sanction to the opening of metro railway.—(1)** The Central Government shall, before giving its sanction to the opening of the metro railway under section 14, obtain a report from the Commissioner that (a) he has made a careful inspection of the metro railway and the rolling stock that may be used thereon; (b) the moving and fixed dimensions as laid down by the Central Government have not been infringed; (c) the track structure, strength of bridges, standards of signalling system, traction system, general structural character of civil works and the size of, and maximum gross load upon, the 1. Subs. by Act 34 of 2009, s. 10, for section 12 (w.e.f. 7-9-2009). 2. Subs. by s. 11, ibid., for “Commissioner” (w.e.f. 7-9-2009). 3. Subs. by s. 5, ibid., for “metropolitan city of Delhi” (w.e.f. 7-9-2009). 8 ----- axles of any rolling stock, comply with the requirements laid down by the Central Government; and (d) in his opinion, metro railway can be opened for the public carriage of passengers without any danger to the public using it. (2) If the Commissioner is of the opinion that the metro railway cannot be opened without any danger to the public using it, he shall, in his report, state the grounds therefor, as also the requirements which, in his opinion, are to be complied with before sanction is given by the Central Government. (3) The Central Government, after considering the report of the Commissioner, may sanction the opening of the metro railway under section 14 as such or subject to such conditions as may be considered necessary by it for the safety of the public. **16. Sections 14 and 15 to apply to the opening of certain works.—The provisions of sections 14** and 15 shall apply to the opening of the following works if they form part of, or are directly connected with, the metro railway used for the public carriage of passengers and have been constructed subsequent to the giving of a report by the Commissioner under section 15, namely:— (a) opening of additional lines of metro railway; (b) opening of stations and junctions; (c) re-modelling of yards and re-building of bridges; and (d) any alteration or reconstruction materially affecting the structural character of any work to which the provisions of sections 14 and 15 apply or are extended by this section. **17. Temporary suspension of traffic.—When an accident has occurred on the metro railway** resulting in a temporary suspension of traffic, and either the original tracks and works have been restored to their original standard or a temporary diversion has been laid for the purpose of restoring communication, the original tracks and works so restored, or the temporary diversion, as the case may be, may, without prior inspection by the Commissioner, be opened for the public carriage of passengers, subject to the following conditions, namely:— (a) the metro railway official in charge of the works undertaken by reasons of the accident has certified in writing that the opening of the restored tracks and works, or of the temporary diversion will not in his opinion be attended with danger to the public; and (b) a notice of the opening of the tracks and works or the diversion shall be sent immediately to the Commissioner. **18. Power to close metro railway opened for public carriage of passengers.—Where, after the** inspection of the metro railway opened and used for the public carriage of passengers or any rolling stock used thereon, the Commissioner is of the opinion that the use of the metro railway or of any rolling stock will be attended with danger to the public using it, the Commissioner shall send a report to the Central Government who may thereupon direct that (i) the metro railway be closed for the public carriage of passengers; or (ii) the use of the rolling stock be discontinued; or (iii) the metro railway or the rolling stock may be used for the public carriage of passengers subject to such conditions as it may consider necessary for the safety of the public. **19. Re-opening of closed metro railway.—When the Central Government has, under section 18** directed the closure of the metro railway or the discontinuance of the use of any rolling stock— (a) the metro railway shall not be re-opened for the public carriage of passengers until it has been inspected by the Commissioner and its re-opening is sanctioned in accordance with the provisions of this Chapter; and (b) the rolling stock shall not be used until it has been inspected by the Commissioner and its re-use is sanctioned in accordance with the provisions of this Chapter. 9 ----- **20. Use of rolling stock.—The metro railway administration may use such rolling stock as it may** consider necessary for operation and working of the metro railway: Provided that before using any rolling stock of a design or type different from that already running on any section of the metro railway, the previous sanction of the Central Government shall be obtained for such use: Provided further that before giving any such sanction, the Central Government shall obtain a report from the Commissioner that he has made a careful inspection of the rolling stock and, in his opinion, such rolling stock can be used. **21. Delegation of powers.—The Central Government may, by notification, direct that any of its** powers or functions under this Chapter, except power to make rule under section 22, shall, in relation to such matters and subject to such conditions, if any, as may be specified in the notification, be exercised or discharged also by the Commissioner. **22. Power to make rules in respect of matters in this Chapter.—(1) The Central Government may,** by notification, make rules to carry out the provisions of this Chapter. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the duties of a metro railway administration and the Commissioner in regard to the opening of a metro railway for the public carriage of passengers; (b) the arrangements to be made for and the formalities to be complied with before opening a metro railway for the public carriage of passengers; (c) for regulating the mode in which, and the speed at which rolling stock used on metro railway is to be moved or propelled; and (d) the cases in which and the extent to which the procedure provided in this Chapter may be dispensed with. CHAPTER VI WORKING OF THE METRO RAILWAY **23. Exhibition of fare tables at station and supply of tickets.—(1) The metro railway** administration shall cause to be pasted in a conspicuous and accessible place at every station in [1][Hindi, English and official language of the State in which such station is located] a table of the fare chargeable for travelling from the station to every place for which tickets are issued to passengers. (2) Any person desirous of travelling on the metro railway shall, upon payment of fare, be issued with a ticket by the metro railway administration or an agent authorised in this behalf. (3) The ticket issued under sub-section (2) shall indicate its value, period of validity and such other particulars as may be prescribed. **24. Exhibition and surrender of pass and ticket.—Every passenger shall, on demand by any metro** railway official authorised in this behalf, present his pass or ticket to such metro railway official for examination at the beginning, or during or at the end of the journey and surrender such ticket,— (a) at the end of journey if the ticket is for a single journey, or (b) if such ticket is issued for a particular amount, on the exhaustion of the amount for which the ticket was issued. **25. Prohibition against travelling without pass or ticket.—No person shall enter or remain in any** carriage on the metro railway, for the purpose of travelling therein as a passenger, unless he has with him a proper pass or ticket. **26. Carriage of goods.—(1) No person shall, while travelling in the metro railway, carry with him** any goods other than [2]*** baggage containing personal belongings not exceeding such volume and weight as may be prescribed. 1. Subs. by Act 34 of 2009, s. 12, for “Hindi and English” (w.e.f. 7-9-2009). 2. The words “a small” omitted by s. 13, ibid. (w.e.f. 7-9-2009). 10 ----- (2) Where any person travels on the metro railway in contravention of the provisions of sub-section (1), he shall, notwithstanding that he holds a valid pass or ticket for any travel in such railway, be liable to be removed from the train by any metro railway official authorised by the metro railway administration in this behalf or by any other person whom such metro railway official may call to his aid. **27. Prohibition against travelling of person suffering from infectious or contagious diseases and** **powers to remove them.—(1) No person suffering from infectious or contagious diseases as may be** prescribed, shall travel by the metro railway. (2) Any person travelling in contravention of any rule made under sub-section (1) shall be liable to be removed from the metro railway. **28. Communication between passengers and metro railway officials in charge of trains.—The** metro railway administration shall provide and maintain in proper order, in any metro train, such efficient means of communication between the passengers and the metro railway official in charge of the train as may be approved by the Central Government. **29. Right of metro railway administration to display commercial advertisements on metro** **railway or on the premises occupied by it.—The metro railway administration may use its premises,** lands, buildings, posts, bridges, structures, vehicles, rolling stock and other property for displaying commercial advertisements and for that purpose may erect or construct or fix any hoardings, billboards, show cases, and such other things for the display of posters or other publicity materials. **30. Carriage of dangerous or offensive material.—(1) No person shall take or cause to be taken on** the metro railway such dangerous or offensive material as may be prescribed. (2) If any metro railway official has reason to believe that any person is carrying with him, in a container of any form, or otherwise, any dangerous or offensive material, he may cause such container to be opened by its carrier for the purposes of ascertaining its contents. (3) Any metro railway official may remove from the metro railway any person taking with him any dangerous or offensive material. **31. Power to remove persons from metro railway and its carriages.—Any person, entering upon** or into any part of the metro railway without lawful authority, on being asked to leave the metro railway by any metro railway official, does not leave therefrom, may be removed from the metro railway by such metro railway official or by any other person whom such metro railway official may call to his aid. **32. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Chapter. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the particulars of the ticket such as the value, the period of validity and other particulars under sub-section (3) of section 23; (b) the volume and weight of baggage under sub-section (1) of section 26; (c) diseases which are infectious or contagious under sub-section (1) of section 27; (d) material which is dangerous or offensive under sub-section (1) of section 30; and (e) generally, for regulating the travelling upon, and the use, working and management of the metro railway. (3) Every metro railway administration shall keep at every station on its metro railway a copy of all the rules made under this section and shall also allow any person to inspect it free of charge. CHAPTER VII FARE FIXATION **33. Fixation of fare for carriage of passengers.—The metro railway administration shall, from time** to time, on the recommendations made to it by the Fare Fixation Committee constituted under 11 ----- sub-section (1) of section 34, fix, for the carriage of passengers, fare for travelling from one station to another of the metro railway: Provided that the metro railway administration may fix the fare under this section without recommendations of the Fare Fixation Committee on the initial opening of the metro railway. **34. Constitution of Fare Fixation Committee.—(1) The Central Government may, from time to** time, constitute a Fare Fixation Committee for the purpose of recommending fare for the carriage of passengers by the metro railway. (2) The Fare Fixation Committee shall consist of a Chairperson and two other members. (3) A person shall not be qualified for appointment as the Chairperson unless he is or has been a Judge of a High Court. 1[(4) The Central Government and the State Government shall nominate one member each to the Fare Fixation Committee: Provided that a person who is or has been an Additional Secretary to the Government of India or holds or has held an equivalent post in the Central Government or the State Government shall be qualified to be nominated as a member.] (5) A sitting Judge of a High Court shall be appointed after consultation with the Chief Justice of that High Court. **35. Other terms and conditions and procedure to be followed.—(1) The other terms and** conditions of the Fare Fixation Committee, and the procedure to be followed by that committee shall be such as may be prescribed. (2) The metro railway administration shall provide to the Fare Fixation Committee all reasonable facility for the discharge of its duties under this Act. **36. Period for making recommendations.—The Fare Fixation Committee shall submit its report** along with recommendations to the metro railway administration within such period, not exceeding three months, as may be specified by order made by the Central Government. **37. Recommendations to be binding on metro railway administration.—The recommendations** made by the Fare Fixation Committee shall be binding on the metro railway administration. CHAPTER VIII ACCIDENTS **38. Notice of metro railway accident.—(1) Where, in the course of working a metro railway,—** (a) any accident attended with loss of any human life, or with grievous hurt, as defined in the Indian Penal Code (45 of 1860); or (b) any collision between trains; or (c) the derailment of any train carrying passengers, or of any part of such train; or (d) any accident of a description usually attended with loss of human life or with such grievous hurt as aforesaid; or (e) any accident of any other description which the Central Government may notify in this behalf, occurs, the metro railway official in charge of the section of the metro railway on which the accident occurs, shall, without delay, give notice of the accident in such form and containing such particulars as may be prescribed to the Deputy Commissioner and the Deputy Commissioner of Police, within whose jurisdiction the accident occurs, the officer in charge of the police station within the local limits of which the accident occurs and to such other Magistrate or police officer as may be appointed in this behalf by the Central Government. 1. Subs. by Act 34 of 2009, s. 14, for sub-section (4) (w.e.f. 7-9-2009). 12 ----- (2) The metro railway administration, within whose jurisdiction the accident occurs, shall, without delay, give notice of the accident to the [1][State Government] and the Commissioner having jurisdiction over the place of the accident. **39. Inquiry by Commissioner.—(1) On the receipt of a notice under section 38 of the occurrence of** an accident resulting in loss of human life or grievous hurt causing total or partial disablement of permanent nature to a passenger, the Commissioner shall, as soon as may be, notify the metro railway administration in whose jurisdiction the accident occurred of his intention to hold an inquiry into the causes that led to the accident and shall at the same time fix and communicate the date, time and place of inquiry: Provided that it shall be open to the Commissioner to hold an inquiry into any other accident which, in his opinion, requires the holding of such an inquiry. (2) If for any reason, the Commissioner is not able to hold an inquiry as soon as may be after the occurrence of the accident, he shall notify the metro railway administration accordingly. **40. Inquiry by metro railway administration.—Where no inquiry is held by the Commissioner** under sub-section (1) of section 39 or where the Commissioner has informed the metro railway administration under sub-section (2) of that section that he is not able to hold an inquiry, the metro railway administration within whose jurisdiction the accident occurs, shall cause an inquiry to be made in accordance with the prescribed procedure. **41. Powers of Commissioner in relation to inquiries.—(1) For the purpose of conducting an** inquiry under this Chapter into the causes of any accident, the Commissioner shall, in addition to the powers specified in section 9, have the powers as are vested in a Civil Court while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely:— (a) summoning and enforcing the attendance of persons and examining them on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) requisitioning any public record or copies thereof from any court or office; and (e) any other matter which may be prescribed. (2) The Commissioner while conducting an inquiry under this Chapter shall be deemed to be a Civil Court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **42. Statement made before Commissioner.—No statement made by a person in the course of giving** evidence in an inquiry before the Commissioner shall subject him to, or be used against him, in any civil or criminal proceeding, except in a prosecution for giving false evidence by such person: Provided that the statement is— (a) made in reply to a question which is required by the Commissioner to answer; or (b) relevant to the subject matter of the inquiry. **43. Procedure for conducting inquiry.—The metro railway administration or the Commissioner** conducting an inquiry under this Chapter may send notice of the inquiry to such persons, follow such procedure, and prepare the report in such manner as may be prescribed. **44. No inquiry, investigation, etc., to be made if the Commission of Inquiry is** **appointed.—Notwithstanding anything contained in the foregoing provisions of this Chapter, where a** Commission of Inquiry is appointed under the Commissions of Inquiry Act, 1952 (60 of 1952), to inquire into an accident, any inquiry, investigation or other proceeding pending in relation to that accident shall not be proceeded with, and all records or other documents relating to such inquiry shall be forwarded to such authority as may be specified by the Central Government in this behalf. 1. Subs. by Act 34 of 2009, s. 15, for “Government of the National Capital Territory of Delhi” (w.e.f. 7-9-2009). 13 ----- **45. Inquiry into accident not covered by section 38.—Where any accident of the nature not** specified in section 38 occurs in the course of working the metro railway, the metro railway administration within whose jurisdiction the accident occurs, may cause such inquiry to be made into the causes of the accident, as may be prescribed. **46. Returns.—The metro railway administration shall send to the Central Government a return of** accidents occurring on its railway, whether attended with injury to any person or not, in such form and manner and at such intervals as may be prescribed. **47. Power to make rules in respect of matters in this Chapter.—(1) The Central Government may,** by notification, make rules to carry out the provisions of this Chapter. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: — (a) the forms of notice of accidents to be given under section 38 and the particulars of the accident such notices shall contain; (b) the persons to whom notices in respect of any inquiry under this Chapter are to be sent, the procedure to be followed in such inquiry and the manner in which a report of such inquiry shall be prepared; (c) the nature of inquiry to be made by the metro railway administration into the causes of an accident under section 40; (d) for conducting an inquiry under clause (e) of sub-section (1) of section 41; (e) the procedure of conducting inquiry and preparation of the report under section 43; (f) the making of an inquiry into the causes of the accident under section 45; and (g) the form and manner of sending a return of accidents by the metro railway administration under section 46. CHAPTER IX CLAIMS COMMISSIONER **48. Claims Commissioner.—The Central Government may, by notification, appoint a Claims** Commissioner for the purpose of adjudicating upon claims for compensation in respect of accidents involving the death of, or bodily injury to person, or damage to any property arising out of the working of the metro railway. **49. Qualifications for appointment as Claims Commissioner.—A person shall not be qualified for** appointment as Claims Commissioner unless he (a) is or has been, or is qualified to be, a Judge of a High Court; or (b) has been a Member of the Indian Legal Service and has held a post in Grade I of that Service; or (c) has, for at least three years, held a civil judicial post carrying a scale of pay which is not less than that of a Joint Secretary to the Government of India. **50. Term of office.—The Claims Commissioner shall hold office as such for a term as may be** specified by the Central Government. **51. Resignation and removal.—(1) The Claims Commissioner may, by notice in writing under his** hand addressed to the Central Government, resign his office. (2) The Claims Commissioner may be removed from his office by an order of the Central Government on the ground of proved misbehaviour or incapacity after an inquiry in which he had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. (3) The procedure for the investigation of misbehaviour or incapacity of the Claims Commissioner referred to in sub-section (2) be such as may be prescribed. 14 ----- **52. Salary and allowances and other conditions of service of Claims Commissioner.—The salary** and allowances payable to, and the other terms and conditions of service of, the Claims Commissioner shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of the Claims Commissioner shall be varied to his disadvantage after his appointment. **53. Procedure and powers of Claims Commissioner.—(1) The Claims Commissioner shall have all** the powers of a civil court for the purpose of taking evidence on oath, enforcing attendance of witnesses and compelling the discovery or production of documents and material objects. (2) The Claims Commissioner shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). (3) In enquiring into and determining any claims for payment of compensation, the Claims Commissioner may, subject to any rules that may be made in this behalf, follow such summary procedure as he may deem fit. (4) Subject to any rules that may be made in this behalf, the Claims Commissioner may, for the purpose of determining any claim for compensation, choose one or more persons possessing special knowledge of any matter relevant to the enquiry, to assist him in holding the enquiry. (5) The Claims Commissioner shall have powers to pass such interim and final order as the circumstance may require, including orders for payment of costs. **54. Decision of Claims Commissioner.—(1) Any question as to the liability of the metro railway** administration to pay compensation or as to the person to whom such compensation is payable, shall be determined by an order of the Claims Commissioner. (2) Every order made under sub-section (1) shall be final. **55. Savings as to certain rights.—(1) Notwithstanding anything contained in any other law for the** time being in force, where the death of, or bodily injury to, any person gives rise to a claim for compensation under this Act and also under any other law in force, the person entitled to compensation may claim such compensation only once either under this Act or under any other law in force. (2) Nothing in sub-section (1) shall affect the right of any person to claim compensation payable under any contract or scheme providing for compensation for death or personal injury or for damage to property or any sum payable under any policy of insurance. **56. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Chapter. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for— (i) the procedure for investigation of misbehaviour or incapacity of the Claims Commissioner under sub-section (3) of section 51; (ii) the salary and allowances and the other terms and conditions of service of the Claims Commissioner under section 52; and (iii) any other purpose incidental to or connected with the objects of this Chapter. CHAPTER X LIABILITY OF METRO RAILWAY ADMINISTRATION DUE TO ACCIDENTS **57. Extent of liability.—The metro railway administration shall, notwithstanding anything contained** in any other law, be liable to pay compensation for loss occasioned by the death of, or bodily injury to any person to such extent as may be prescribed. **58. Application for compensation.—An application for compensation arising out of an accident may** be made to the Claims Commissioner by,— (a) the person who has sustained the injury or suffered any loss; or (b) all or any of the dependants of the deceased where death has resulted from the accident; or 15 ----- (c) an agent duly authorised by the person injured or all or any of the dependants of the deceased, as the case may be: Provided that where all the dependants of the deceased have not joined in any such application for compensation, the application shall be made on behalf of or for the benefit of all the dependants of the deceased and the dependants who have not so joined, shall be impleaded as respondents to the application. _Explanation.—For the purpose of this section, the word “dependant” shall have the same_ meaning as given to it in clause (b) of section 123 of the Railways Act, 1989 (24 of 1989). CHAPTER XI OFFENCES AND PENALTIES **59. Drunkenness or nuisance on metro railway.—(1) If any person, in any carriage or upon any** part of the metro railway,— (a) is in a state of intoxication; or (b) commits any nuisance or vandalism or act of indecency, or uses abusive or obscene language; or (c) wilfully or without excuse interferes in any way with the comfort of any passenger, he shall be punishable with fine which may extend to five hundred rupees and shall also be liable to forfeiture of the fare which he may have paid or any pass or ticket which he may have obtained or purchased, or be removed from such carriage or part by any metro railway official authorised by the metro railway administration in this behalf. (2) If any metro railway official is in a state of intoxication while on duty, he shall be [1][liable to penalty which may extend to ten thousand rupees] or, where the improper performance of the duty would be likely to endanger the safety of any passenger travelling or being upon the metro railway, with imprisonment for a term which may extend to two years, or with fine which may extend to [2][ten thousand rupees], or with both. **60. Penalty for taking or causing to take offensive material upon metro railway.—(1) If, in** contravention of sub-section (1) of section 30, a person takes or causes to be taken any offensive material upon the metro railway, he shall be punishable with fine which may extend to five hundred rupees. (2) In addition to the penalties specified in sub-section (1), a person takes or causes to be taken any offensive material upon the metro railway shall be responsible also for any loss, injury or damage which may be caused by reason of such material having been so brought upon the metro railway. **61. Penalty for taking or causing to take dangerous material upon metro railway.—(1) If, in** contravention of sub-section (1) of section 30, a person takes or causes to be taken any dangerous material upon the metro railway, he shall be punishable with imprisonment for a term which may extend to four years and with fine which may extend to five thousand rupees. (2) In addition to the penalties specified in sub-section (1), a person takes or causes to be taken any dangerous material upon the metro railway shall be responsible also for any loss, injury or damage which may be caused by reason of such material having been so brought upon the metro railway. **62. Prohibition of demonstrations upon metro railway.—(1) No demonstration of any kind** whatsoever shall be held on any part of the metro railway or other premises thereof and it shall be open to the metro railway administration to exclude from such premises any person attending such demonstrations whether or not he is in possession of a pass or ticket entitling him to be in the said premises. (2) No person shall paste or put up any poster or write or draw anything or matter in any compartment or carriage of the metro railway, or any premises thereof, without any lawful authority and any person 1. Subs. by Act 18 of 2023, s. 2 and the Schedule, for “punishable with fine which may extend to two hundred and fifty rupees” (w.e.f. 6-10-2023). 2. Subs. by s. 2 and the Schedule, ibid., for “five hundred rupees” (w.e.f. 6-10-2023). 16 ----- found engaged in doing any such act may be removed from the compartment, carriage or premises by any metro railway official authorised by the metro railway administration in this behalf. (3) Whoever contravenes any of the provisions of sub-section (1) or sub-section (2), or on being asked by any metro railway official to leave any compartment, carriage or premises refuses to do so, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. **63. Penalty for travelling on roof, etc., of a train.—If any passenger travels on the roof of a train or** persists in travelling in any part of a train not intended for the use of passengers or projects any part of his body out of a train [1][he shall be liable to penalty which may extend to five thousand rupees], and shall also be liable to be removed from the train by any metro railway official authorised by the metro railway administration in this behalf. **64. Penalty for unlawfully entering or remaining upon metro railway or walking on metro** **track.—(1) If a person enters into or upon the metro railway without any lawful authority or having** entered with lawful authority remains there unlawfully and refuses to leave on being requested to do so by any metro railway official, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to two hundred and fifty rupees, or with both. (2) If any person walks on the metro track without any lawful authority, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both. **65. Endangering the safety of passengers by metro railway official.—If any metro railway** official, when on duty endangers the safety of any passenger, (a) by any rash or negligent act or omission; or (b) by disobeying any rule, regulation or order which such official was bound by the terms of his employment to obey, and of which he had notice, he shall be punishable with imprisonment for a term which may extend to [2][two years, or with fine which may extend to thirty thousand rupees, or with both]. **66. Abandoning train, etc., without authority.—If any metro railway official, when on duty, is** entrusted with any responsibility connected with the running of a train, or any other rolling stock from one station or place to another station or place, and he abandons his duty before reaching such station or place, without authority or without properly handing over such train or rolling stock to another authorised metro railway official, he shall be punishable with imprisonment for a term which may extend to four years, or with fine which may extend to five thousand rupees, or with both. **67. Obstructing running of train, etc.—If any person obstructs or causes to be obstructed or** attempts to obstruct any train or rolling stock upon the metro railway by squatting, picketing or keeping without authority any rolling stock on the metro railway or tampering with any signalling installations or by interfering with the working mechanism thereof, or otherwise, he shall be liable to be removed by any metro railway official, authorised by the metro railway administration in this behalf and shall also be punishable with imprisonment for a term which may extend to four years, or with fine which may extend to five thousand rupees, or with both. **68. Obstructing metro railway official in his duties.—If any person wilfully obstructs or prevents** any metro railway official in the discharge of his duties, he shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both. **69. Travelling without proper pass or ticket or beyond authorised distance.—(1) If any** passenger (a) travels in a train without having a proper pass or ticket with him; or 1. Subs. by Act 18 of 2023, s. 2 and the Schedule, for certain words (w.e.f. 6-10-2023). 2. Subs. by s. 2 and the Schedule, ibid., for “five years, or with fine which may extend to six thousand rupees, or with both” (w.e.f. 6-10-2023). 17 ----- (b) being in or having alighted from a train, fails or refuses to present for examination or to deliver up his pass or ticket immediately on requisition being made therefor under section 24, or travels in a train in contravention of the provisions of section 25, he shall be liable to pay, on demand of any metro railway official appointed by the metro railway administration in this behalf, the excess charge mentioned in sub-section (3) in addition to the ordinary single fare for the distance which he has travelled or, where there is any doubt as to the station from which he started, the ordinary single fare from the station from which the train originally started. (2) If any passenger travels or attempts to travel in a carriage or by a train or travels in or on a carriage beyond the place authorised by his pass or ticket, he shall be liable to pay, on demand of any person appointed by the metro railway administration in this behalf, the excess charge mentioned in sub-section (3) in addition to any difference between any fare paid by him and the fare payable in respect of the journey he has made. (3) The excess charge referred to in sub-sections (1) and (2) shall be fifty rupees. 1[(4) If any passenger liable to pay the excess charge and fare mentioned in sub-section (1), or the excess charge and any difference of fare mentioned in sub-section (2), fails or refuses to pay the same on a demand being made therefor, any metro railway official authorised by the metro railway administration in this behalf may apply to any Metropolitan Magistrate or, as the case may be, Judicial Magistrate of the first class, for the recovery of the sum payable as if it were a fine.] (5) Any sum recovered under sub-section (4) shall, as and when it is recovered, be paid to the Consolidated Fund of India. 2[70. Needlessly interfering with means of communication in a train.— If any passenger or any other person without reasonable and sufficient cause makes use of, or interferes with, any means provided by the metro railway administration in a metro railway for communication between passengers and metro railway official in charge of the metro railway or misuses alarm bell or emergency stop push or emergency trip system or emergency call point of the metro railway, he shall be liable to penalty which may extend to ten thousand rupees.] **71. Altering or defacing or counterfeiting pass or ticket.—If any person wilfully breaks the** security code of any pass or ticket, or defaces or alters or counterfeits or duplicates it or acts in any way to cause revenue loss to metro railway, he shall be punishable with imprisonment for a term which may extend to six months. **72. Defacing public notices.—If any person without lawful authority—** (a) in this behalf pulls down or wilfully damages any board or documents set up or posted by the order of the metro railway administration on the metro railway, or any rolling stock, or (b) obliterates or alters any letters or figures upon any such board or document or upon any rolling stock, he shall be punishable with imprisonment which may extend to two months or with fine up to two hundred and fifty rupees, or with both. **73. Any sale of articles on metro railway.—If any person sells or exposes for sale, any article** whatsoever in any metro railway carriage or upon any part of the metro premises not authorised by metro railway administration for such purpose, he shall be punishable with fine which may extend to five hundred rupees, and in default of payment of fine, he shall be punishable with imprisonment which may extend to six months: Provided that, in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, such fine shall not be less than one hundred rupees. **74. Maliciously wrecking a train or causing sabotage.—(1) If any person—** (a) loosens or displaces any rail or any other matter or thing belonging to the metro railway; or 1. Subs. by Act 18 of 2023, s. 2 and the Schedule, for sub-section (4) (w.e.f. 6-10-2023). 2. Subs. by s. 2 and the Schedule, ibid., for section 70 (w.e.f. 6-10-2023). 18 ----- (b) turns, moves, unlocks or diverts any point or other machinery belonging to the metro railway; or (c) does or causes to be done any act of sabotage in relation to the metro railway with intent or with knowledge that it is likely to endanger safety of any person upon the metro railway, he shall be punishable with imprisonment for life, or with rigorous imprisonment for a term which may extend to ten years: Provided that, in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, where a person is punished with rigorous imprisonment, such imprisonment shall not be less than— (i) three years in the case of a first conviction; and (ii) seven years in the case of conviction for the second or subsequent offence. (2) If a person unlawfully does any act of sabotage or any other act referred to in sub-section (1) with intent to cause the death of any person, or with knowledge that such act is so imminently dangerous that it must in all probability cause the death of any person or such bodily injury to any person as is likely to cause the death of any person, he shall be punishable with death or imprisonment for life. **75. Penalty for unauthorised sale of tickets.—If any person not being a metro railway official, or an** agent authorised in this behalf under sub-section (2) of section 23 sells or attempts to sell any ticket in order to enable any other person to travel therewith, he shall be punishable for a term which may extend to three months, or fine which may extend to five hundred rupees, or with both, and shall also forfeit the ticket which he sells or attempts to sell. **76. Maliciously hurting or attempting to hurt persons travelling by metro railway.—If any** person unlawfully throws or causes to fall or strike at, against, into or upon any rolling stock forming part of a train, any wood, stone or other matter or thing with intent, or with knowledge that it is likely to endanger the safety of any person being in or upon such rolling stock or in or upon any other rolling stock forming part of the same train, he shall be punishable with imprisonment for life or with imprisonment for a term which may extend to ten years. **77. Endangering safety of persons travelling by metro railway by rash or negligent act or** **omission.—If any person in a rash or negligent manner does any act, or omits to do what he is legally** bound to do, and the act or omission is likely to endanger the safety of any person travelling or being upon the metro railway, he shall be punishable with imprisonment for a term which may extend to one year, or with fine, or with both. **78. Damage to or destruction of certain metro railway properties.—(1) Whoever, with intent to** cause or knowing that he is likely to cause damage to or destruction of any of the properties of the metro railway referred to in sub-section (2), causes by fire, explosive substance or otherwise causes damage to such property, he shall be punishable with imprisonment for a term which may extend to ten years. (2) The properties of the metro railway referred to in sub-section (1) are the metro railway track, tunnels, sub-way, box-structures, station buildings and installations, carriage and wagons, rolling stock, signalling, telecommunication, air-conditioning and ventilation equipments, electrical sub-station, drainage pump, escalators, lifts, lighting installations, ticket vending machine, ticket barriers, electric traction and block equipments, and such other properties as the Central Government may, by notification, specify. **79. Endangering the safety of persons travelling by metro railway by wilful act or omission.—If** any person by unlawful act or by any wilful omission or neglect or by tampering with safety devices, endangers or causes to be endangered the safety of any person travelling on or being upon any metro railway, or obstructs or causes to be obstructed or attempts to obstruct any rolling stock upon any metro railway, he shall be punishable with imprisonment for a term which may extend to seven years: Provided that, in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, such imprisonment shall not be less than 19 ----- (i) six months in the case of first conviction; and (ii) two years in the case of conviction for the second or subsequent offence. **80. [Penalty for making a false claim for compensation].—Omitted by the Jan Vishwas** (Amendment of Provisions) Act, 2023 (18 of 2023), s. 2 and the Schedule (w.e.f. 6-10-2023). **81. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company, for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purpose of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **82. Power of arrest without warrant.—(1) If a person commits any offence mentioned in sections** 59, 61, [1][sections 65 to 68, 71 to 79], he may be arrested without warrant or other written authority by any metro railway official or by a police officer not below the rank of a head constable or by any other person whom such metro railway official or police officer may call to his aid: Provided that where a person has been arrested, by any person other than the police officer, he shall be made over to a police officer, or, in the absence of a police officer, take such person or cause him to be taken in custody to the nearest police station. (2) A person so arrested under sub-section (1) shall be produced before the nearest Magistrate, having authority to try him or commit him for trial, as early as possible but within a period not exceeding twenty-four hours of such arrest exclusive of the time necessary for the journey from the place of arrest to the court of the Magistrate. **83. Arrest of person likely to abscond, etc.—(1) If any person commits any offence under this Act,** other than an offence mentioned in section 82 or fails or refuses to pay any excess charge or other sum demanded under section 69 and there is reason to believe that he may abscond, or his name and address are unknown and he refuses on demand to give his name and address, or there is reason to believe that name and address given by him is incorrect, any metro railway official or police officer not below the rank of head constable, or any other person whom such metro railway official may call to his aid, may, without warrant or written authority, arrest him. (2) A person so arrested shall be produced before the nearest Magistrate, having authority to try him or commit him for trial, as early as possible but within a period not exceeding twenty-four hours, exclusive of the time necessary for the journey from the place of arrest to the court of the Magistrate. **84. Magistrate having jurisdiction under the Act.—Notwithstanding anything contained in the** Code of Criminal Procedure, 1973 (2 of 1974), no court inferior to that of a Metropolitan Magistrate shall try an offence under this Act. 1. Subs. by Act 18 of 2023, s. 2 and the Schedule, for the words and figures “sections 65 to 79” (w.e.f. 6-10-2023). 20 ----- **85. Place of trial.—(1) Any person committing an offence under this Act, or any rule or regulation** made thereunder, shall be triable for such offence in any place in which he may be, or which the [1][State Government] may notify in this behalf, as well as any other place in which he is liable to be tried under any law for the time being in force. (2) Every notification under sub-section (1) shall be published by the [2][State Government] and a copy thereof shall be exhibited for the information of the public in some conspicuous place at such metro railway stations as that Government may direct. CHAPTER XII MISCELLANEOUS **86. Power of Central Government to issue directions.—Without prejudice to the foregoing** provisions of this Act, the metro railway administration in case of the non-Government metro railway shall, in the discharge of its duties and functions under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the metro railway administration shall, as far as practicable, be given opportunity to express its views before any direction is given under this section. **87. Prohibition to work as non-Government metro railway.—No non-Government metro railway** shall work without obtaining permission from the Central Government. **88. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government, any metro railway administration, a metro railway official or against any other person, for anything which is in good faith done or intended to be done in pursuance of this Act or any rules, regulations or orders made thereunder. **89. Restriction on execution against metro railway property.—(1) No rolling stock, metro railway** tracks, machinery, plant, tools, fittings, materials or effects used or provided by a metro railway administration for the purpose of traffic on its railway, or its stations or workshops, or offices shall be liable to be taken in execution of any decree or order of any court or of any local authority or person having by law the power to attach or distrain property or otherwise to cause the property to be taken in execution, without the previous sanction of the Central Government. (2) Nothing in sub-section (1) is to be construed as affecting the authority of any court to attach the earnings of the metro railway administration in execution of a decree or order. **90. Officials of metro railway administration to be public servants.—All persons in the** employment of the metro railway administration shall, when acting or purporting to act in pursuance of the provisions of this Act, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **91. Procedure for delivery to metro railway administration of property detained by a metro** **railway official.—If a metro railway official is discharged from service or is suspended, or dies or** absconds or absents himself, and he or his spouse or widow or any member of his family or his representative, refuses or neglects, after notice in writing for that purpose, to deliver up to the metro railway administration or to a person appointed by the metro railway administration, in this behalf, any station, dwelling house, office or other building with its appurtenances, or any books, papers, keys, equipments or other matters, belonging to the metro railway administration and in the possession or custody of such metro railway official on the occurrence of any such event as aforesaid, any Metropolitan Magistrate may, on application made by or on behalf of the metro railway administration, order any police officer, with proper assistance, to enter upon the station, office or other building and remove any person found therein and take possession thereof, or to take possession of the books, papers and other matters, and to deliver the same to the metro railway administration or to a person appointed by the metro railway administration in that behalf. 1. Subs. by Act 34 of 2009, s. 16, for “Government of the National Capital Territory of Delhi” (w.e.f. 7-9-2009). 2. Subs. by s. 16, ibid., for “Government of the National Capital Territory of Delhi in the Delhi Gazette” (w.e.f. 7-9-2009). 21 ----- **92. Proof of entries in records and documents.—(1) Entries made in the records or other** documents of the metro railway administration shall be admitted in evidence in all proceedings by or against the metro railway administration, and all such entries may be proved either by the production of the records or other documents of the metro railway administration containing such entries or by the production of a copy of the entries certified by the officer having custody of the records or other documents under his signature and stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents of the metro railway administration in his possession. (2) Notwithstanding anything contained in any other law, a court shall presume that the entries in the records of the metro railway administration admitted in evidence under sub-section (1) are true, unless there is evidence to the contrary. **93. Service of notice, etc., on metro railway administration.—Any notice or other document** required or authorised by this Act to be served on a metro railway administration may be served (a) by leaving it at the office of the metro railway administration; or (b) by registered post to the office address of the metro railway administration. **94. Service of notice, etc., by metro railway administration.—Any notice or other document** required or authorised by this Act to be served on any person by the metro railway administration may be served by (a) delivering it to the person; or (b) leaving it at the usual or the last known place of abode of the person; or (c) registered post addressed to the person at his usual or the last known place of abode. **95. Presumption where notice is served by registered post.—Where a notice or other document is** served by registered post, it shall be deemed to have been served at the time when the letter containing it would be delivered in the ordinary course of post, and in proving such service, it shall be sufficient to prove that the letter containing the notice or other document was properly addressed and registered. **96. Representation of metro railway administration.—(1) The metro railway administration may,** by order in writing, authorise any of its official or other person to act for, or represent it, as the case may be, in any proceeding before any civil, criminal or other court. (2) A person authorised under sub-section (1) to conduct prosecution on its behalf shall, notwithstanding anything in section 302 of the Code of Criminal Procedure, 1973 (2 of 1974), be entitled to conduct such prosecutions without the permission of the Magistrate. **97. Appointment of security staff.—The metro railway administration may constitute and maintain** security staff for its railway, and the powers, duties and functions of such staff shall be such as may be prescribed. **98. Delegation of powers.—(1) The Central Government may, by notification, direct that all or any** of the powers under this Act or rules made thereunder, except sections 22, 32, 47, 56, 99 and 100, exercisable by it, shall, in relation to such matters and subject to such conditions, if any, as may be specified in the notification, be exercisable also by such officer or authority subordinate to the Central Government or by such officer of the metro railway administration. (2) The metro railway administration may, by general or special order in writing, delegate to any of its official subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act, except its power under section 101. **99. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act. 22 ----- (2) Every order made under this section shall be laid before each House of Parliament. **100. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form and time for preparing and sending annual report under section 12; (b) the terms and conditions of the Fare Fixation Committee under section 35; (c) the procedure to be followed by the Fare Fixation Committee under section 35; (d) the extent of compensation payable under section 57; (e) the powers, duties and functions of the security staff of the Government metro railway under section 97; and (f) without prejudice to any power to make rules contained elsewhere in this Act, generally to carry out the purposes of this Act. **101. Power of metro railway administration to make regulations.—The Government metro** railway administration may, with the previous approval of the Central Government, make regulations not inconsistent with this Act and the rules made thereunder, to provide for all matters for which provisions are necessary or expedient for the purpose of giving effect to the provisions of this Act. **102. Rules and regulations to be laid before Parliament.—Every rule made by the Central** Government and every regulation made by a Government metro railway administration under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **103. Effect of Act inconsistent with other enactments.—The provisions of this Act shall have** effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act. **104. Application of other Acts.—Save as otherwise provided in this Act, the provisions of this Act** shall be in addition to and not in derogation of the Metro Railways (Construction of Works) Act, 1978 (33 of 1978). **105. Repeal and savings.—(1) The Delhi Metro Railway (Operation and Maintenance) Ordinance,** 2002 (Ord. 7 of 2002) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act. 23 -----
20-Dec-2002
69
The Suppression of Unlawful Acts Against Safety of Maritime Navigation and Fixed Platforms on Continental Shelf Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2009/1/a2002-69.pdf
central
# THE SUPPRESSION OF UNLAWFUL ACTS AGAINST SAFETY OF MARITIME NAVIGATION AND FIXED PLATFORMS ON CONTINENTAL SHELF ACT, 2002 ______ ARRANGEMENT OF SECTIONS ______ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, application and commencement. 2. Definitions. CHAPTER II OFFENCES 3. Offences against ship, fixed platform, cargo of a ship, maritime navigational facilities, etc. 4. Conferment of powers of investigation. 5. Designated Courts. 6. Offence triable by Designated Court. 7. Application of Code to proceedings before a Designated Court. 8. Provision as to bail. CHAPTER III MISCELLANEOUS 9. Provisions as to extradition. 10. Contracting parties to Convention or Protocol. 11. Power to treat certain ships to be registered in Convention States. 12. Previous sanction necessary for prosecution. 13. Presumptions as to offences under section 3. 14. Protection of action taken in good faith. ----- # THE SUPPRESSION OF UNLAWFUL ACTS AGAINST SAFETY OF MARITIME NAVIGATION AND FIXED PLATFORMS ON CONTINENTAL SHELF ACT, 2002 ACT NO. 69 OF 2002 [20th December, 2002.] # An Act to give effect to the International Maritime Organisation Convention for Suppression of Unlawful Acts Against the Safety of Maritime Navigation and the Protocol for the Suppression of Unlawful Acts Against the Safety of Fixed Platforms Located on the Continental Shelf and for matters connected therewith. WHEREAS a Convention for the Suppression of Unlawful Acts Against the Safety of Maritime Navigation and the Protocol for the Suppression of Unlawful Acts Against the Safety of Fixed Platforms Located on the Continental Shelf were signed at Rome on the 10th day of March, 1988; AND WHEREAS India, having acceded to the said Convention and the Protocol, should make provisions for giving effect thereto and for matters connected therewith. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, application and commencement.—(1) This Act may be called the** Suppression of Unlawful Acts Against Safety of Maritime Navigation and Fixed Platforms on Continental Shelf Act, 2002. (2) It extends to the whole of India including the limit of the territorial waters, the continental shelf, the exclusive economic zone or any other maritime zone of India within the meaning of section 2 of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976). (3) Save as otherwise provided, it shall apply— (a) to any offence under section 3 committed outside India by any person; (b) to a ship, if that ship is navigating or scheduled to navigate into, through or from waters beyond the outer limits of the territorial waters of India, or the lateral limits of its territorial waters with adjacent States; (c) when the offence is committed on board a ship in the territorial waters of India or against a fixed platform located on the Continental Shelf of India. (4) Notwithstanding anything contained in sub-section (3), this Act shall apply only to offences committed by an offender or alleged offender,— (a) when such an offender is found in the territory of a Convention State; (b) when such an offender is found in the territory of a Protocol State in whose internal water or territorial waters or continental shelf the fixed platform is located; or (c) when such an offender is found in the territory of a State other than the State referred to in clause (a) or clause (b). (5) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Code” means the Code of Criminal Procedure, 1973 (2 of 1974); 1. 1st February, 2003, vide notification No. S.O. 115(E), dated 30th, January, 2003, see Gazette of India, Extraordinary, Part ----- (b) “Continental Shelf of India” shall have the meaning assigned to it in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976); (c) “Convention” means the Convention for the Suppression of Unlawful Acts Against the Safety of Maritime Navigation, signed at Rome on the10th day of March, 1988 as amended from time to time; (d) “Convention State” means a State Party to the Convention; (e) “fixed platform” means an artificial island, installation or structure permanently attached to the seabed for the purpose of exploration for, or exploitation of resources or for other economic purposes; (f) “Protocol” means the Protocol for the Suppression of Unlawful Acts Against the Safety of Fixed Platforms Located on the Continental Shelf adopted at Rome on the 10th day of March,1988 as amended from time to time; (g) “Protocol State” means a State Party to the Protocol; (h) “ship” means a vessel of any type whatsoever not permanently attached to the seabed and includes dynamically supported craft, submersibles, or any other floating craft. CHAPTER II OFFENCES **3. Offences against ship, fixed platform, cargo of a ship, maritime navigational facilities,** **etc.—(1) Whoever unlawfully and intentionally—** (a) commits an act of violence against a person on board a fixed platform or a ship which is likely to endanger the safety of the fixed platform or, as the case may be, safe navigation of the ship shall be punished with imprisonment for a term which may extend to ten years and shall also be liable to fine; (b) destroys a fixed platform or a ship or causes damage to a fixed platform or a ship or cargo of the ship in such manner which is likely to endanger the safety of such platform or safe navigation of such ship shall be punished with imprisonment for life; (c) seizes or exercises control over a fixed platform or a ship by force or threatens or in any other form intimidates shall be punished with imprisonment for life; (d) places or causes to be placed on a fixed platform or a ship, by any means whatsoever, a device or substance which is likely to destroy that fixed platform or that ship or cause damage to that fixed platform or that ship or its cargo which endangers o is likely to endanger that fixed platform or the safe navigation of that ship shall be punished with imprisonment for a term which may extend to fourteen years; (e) destroys or damages maritime navigational facilities or interferes with their operation if such act is likely to endanger the safe navigation of a ship shall be punished with imprisonment for a term which may extend to fourteen years; (f) communicates information which he knows to be false thereby endangering the safe navigation of a ship shall be punished with imprisonment for a term which may extend to fourteen years and shall also be liable to fine; (g) in the course of commission of or in attempt to commit, any of the offences specified in clauses (a) to (d) in connection with a fixed platform or clauses (a) to (f) in connection with a ship— (i) causes death to any person shall be punished with death; (ii) causes grievous hurt to any person shall be punished with imprisonment for a term which may extend to fourteen years; (iii) causes injury to any person shall be punished with imprisonment for a term which may extend to ten years; (iv) seizes or threatens a person shall be punished with imprisonment for a term which may extend to ten years; and ----- (v) threatens to endanger a ship or a fixed platform shall be punished with imprisonment for a term which may extend to two years. (2) Whoever attempts to commit, or abets the commission of, an offence punishable under sub-section (1) shall be deemed to have committed such offence and shall be punished with the punishment provided for such offence. (3) Whoever unlawfully or intentionally threatens a person to compel that person to do or refrain from doing any act or to commit any offence specified in clause (a), clause (b) or clause (c) of sub-section (1), if such threat is likely to endanger the safe navigation of a ship or safety of a fixed platform shall be punished with the punishment provided for such offence. (4) Where any act referred to in sub-section (1) is committed,— (a) against or on board— (i) an Indian ship at the time of commission of the offence; or (ii) any ship in the territory of India including its territorial waters; (b) by a stateless person, such act shall be deemed to be an offence committed by such person for the purposes of this Act. _Explanation.—In this sub-section, the expression “stateless person” means a person whose habitual_ residence is in India but he does not have nationality of any country. (5) Where an offence under sub-section (1) is committed and the person accused of or suspected of the commission of such offence is present in the territory of India and is not extradited to any Convention State or Protocol State, as the case may be, such person shall be dealt with in India in accordance with the provisions of this Act. (6) On being satisfied that the circumstances so warrant, the Central Government or any other authority designated by it shall take the person referred to in sub-section (5) and present in the territory of India into custody or take measures, in accordance with the law for the time being in force, to ensure his presence in India for such time as is necessary to enable any criminal or extradition proceeding to be instituted: Provided that when a person is taken into custody under this sub-section, it shall be necessary for the Central Government or any other authority designated by it to notify the Government of any Convention State or Protocol State which have also established jurisdiction over the offence committed or suspected to have been committed by the person in custody. (7) Subject to the provisions of sub-section (8), where an offence under sub-section (1) is committed outside India, the person committing such offence may be dealt with in respect thereof as if such offence had been committed at any place within India at which he may be found. (8) No court shall take cognizance of an offence punishable under this section which is committed outside India unless— (a) such offence is committed on a fixed platform or on board a ship flying the Indian flag at the time the offence is committed; (b) such offence is committed on board a ship which is for the time being chartered without crew to a lessee who has his principal place of business, or where he has no such place of business, his permanent residence, is in India; or (c) the alleged offender is a citizen of India or is on a fixed platform or on board a ship in relation to which such offence is committed when it enters the territorial waters of India or is found in India. **4. Conferment of powers of investigation.—(1) Notwithstanding anything contained in the Code,** for the purpose of this Act, the Central Government may, by notification in the Official Gazette, confer on any gazetted officer of the Coast Guard or any other gazetted officer of the Central Government powers of arrest, investigation and prosecution exercisable by a police officer under the Code. ----- (2) All officers of police and all officers of Government are hereby required and empowered to assist the officer of the Central Government referred to in sub-section (1), in the execution of provisions of this Act. _Explanation.—For the purpose of this section, “officer of the Coast Guard” means an officer as_ defined in clause (q) of section 2 of the Coast Guard Act, 1978 (30 of 1978). **5. Designated Courts.—(1) For the purpose of providing for speedy trial, the State Government** shall, with the concurrence of the Chief Justice of the High Court, by notification in the Official Gazette, specify a Court of Session to be a Designated Court for such area or areas as may be specified in the notification. (2) Notwithstanding anything contained in the Code, a Designated Court shall, as far as practicable, hold the trial on a day-to-day basis. **6. Offence triable by Designated Court.—(1) Notwithstanding anything contained in the Code,—** (a) all offences under this Act shall be triable only by the Designated Court specified under sub-section (1) of section 5; (b) where a person accused of or suspected of the commission of an offence under this Act is forwarded to a Magistrate under sub-section (2) or sub-section (2A) of section 167 of the Code, such Magistrate may authorise the detention of such person in such custody as he thinks fit for a period not exceeding fifteen days in the whole where such Magistrate is a Judicial Magistrate and seven days in the whole where such Magistrate is an Executive Magistrate: Provided that where such Magistrate considers,— (i) when such person is forwarded to him as aforesaid; or (ii) upon or at any time before the expiry of the period of detention authorised by him, that the detention of such person is unnecessary, he shall order such person to be forwarded to the Designated Court having the jurisdiction; (c) the Designated Court may exercise, in relation to the person forwarded to it under clause (b), the same power which a Magistrate having jurisdiction to try a case may exercise under section 167 of the Code, in relation to an accused person in such case who has been forwarded to him under that section; (d) a Designated Court may, upon a perusal of a complaint made by an officer of the Central Government or the State Government, as the case may be, authorised in this behalf, take cognizance of that offence without the accused being committed to it for trial. (2) When trying an offence under this Act, a Designated Court may also try an offence other than an offence under this Act, with which the accused may, under the Code, be charged at the same trial. **7. Application of Code to proceedings before a Designated Court.—Save as otherwise provided in** this Act, the provisions of the Code shall apply to the proceedings before a Designated Court and the person conducting a prosecution before a Designated Court shall be deemed to be a Public Prosecutor. **8. Provision as to bail.—(1) Notwithstanding anything in the Code, no person accused of an offence** punishable under this Act shall, if in custody, be released on bail or on his own bond unless— (a) the Public Prosecutor has been given an opportunity to oppose the application for such release; and (b) where the Public Prosecutor opposes the application, the Court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail. (2) The limitations on granting of bail specified in sub-section (1) are in addition to the limitations under the Code or any other law for the time being in force on granting of bail. (3) Nothing contained in this section shall be deemed to affect the special powers of the High Court regarding bail under section 439 of the Code. ----- CHAPTER III MISCELLANEOUS **9. Provisions as to extradition.—(1) The offences under section 3 shall be deemed to have been** included as extraditable offences and provided for in all the extradition treaties made by India with Convention States or Protocol States and which extend to, and are binding on, India on the date of commencement of this Act. (2) For the purposes of the application of the Extradition Act, 1962 (34 of 1962) to offences under this Act, any ship registered in a Convention State or Protocol State shall, at any time while that ship is plying, be deemed to be within the jurisdiction of that Convention State or Protocol State, whether or not it is for the time being also within the jurisdiction of any other country. **10. Contracting parties to Convention or Protocol.—The Central Government may, by notification** in the Official Gazette, certify as to which are the Convention States or Protocol States and to what extent such States have availed themselves of the provisions of the Convention or Protocol, as the case may be, and any such notification shall be conclusive evidence of the matters certified therein. **11. Power to treat certain ships to be registered in Convention States.—If the Central** Government is satisfied that the requirements of the Convention have been satisfied in relation to any ship, it may, by notification in the Official Gazette, direct that such ship shall, for the purposes of this Act, be deemed to be registered in such Convention State as may be specified in the notification. **12. Previous sanction necessary for prosecution.—No prosecution for an offence under this Act** shall be instituted except with the previous sanction of the Central Government. **13. Presumptions as to offences under section 3.—In a prosecution for an offence under** sub-section (1) of section 3, if it is proved— (a) that the arms, ammunition or explosives were recovered from the possession of the accused and there is reason to believe that such arms, ammunition or explosives of similar nature were used in the commission of such offence; (b) that there is evidence of use of force, threat of force or any other form of intimidation caused to the crew or passengers in connection with the commission of such offence; or (c) that there is evidence of an intended threat of using bomb, fire, arms, ammunition, or explosives or committing any form of violence against the crew, passengers or cargo of a ship or fixed platform located on the Continental Shelf of India, the Designated Court shall presume, unless the contrary is proved, that the accused had committed such offence. **14. Protection of action taken in good faith.—(1) No suit, prosecution or other legal proceeding** shall lie against any person for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act. (2) No suit or other legal proceeding shall lie against the Central Government for any damage caused or likely to be caused for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act. ___________ -----
13-Jan-2003
12
The Competition Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2010/7/A2003-12.pdf
central
# THE COMPETITION ACT, 2002 ________ # ARRANGEMENT OF SECTIONS ________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II PROHIBITION OF CERTAIN AGREEMENTS, ABUSE OF DOMINANT POSITION AND REGULATION OF COMBINATIONS _Prohibition of agreements_ 3. Anti-competitive agreements. _Prohibition of abuse of dominant position_ 4. Abuse of dominant position. _Regulation of combinations_ 5. Combination. 6. Regulation of combinations. 6A. Open offers, etc. CHAPTER III COMPETITION COMMISSION OF INDIA 7. Establishment of Commission. 8. Composition of Commission. 9. Selection Committee for Chairperson and Members of Commission. 10. Term of office of Chairperson and other Members. 11. Resignation, removal and suspension of Chairperson and other Members. 12. Restriction on employment of Chairperson and other Members. 13. Administrative powers of Chairperson. 14. Salary and allowances and other terms and conditions of service of Chairperson and other Members. 15. Vacancy, etc., not to invalidate proceedings of Commission. 16. Appointment of Director General, etc. 17. Appointment of Secretary, experts, professionals and officers and other employees of Commission. CHAPTER IV DUTIES, POWERS AND FUNCTIONS OF COMMISSION 18. Duties and functions of Commission. 19. Inquiry into certain agreements and dominant position of enterprise. 20. Inquiry into combination by commission. 21. Reference by statutory authority. 21A. Reference by Commission. 22. Meetings of Commission. ----- SECTIONS 23. [Omitted.] 24. [Omitted.] 25. [Omitted.] 26. Procedure for inquiry under section 19. 27. Orders by Commission after inquiry into agreements or abuse of dominant position. 28. Division of enterprise enjoying dominant position. 29. Procedure for investigation of combinations. 29A. Issue of statement of objections by Commission and proposal of modifications. 30. Procedure in case of notice under sub-section (2) of section 6. 31. Orders of Commission on combinations. 32. Acts taking place outside India but having an effect on competition in India. 33. Power to issue interim orders. 34. [Omitted.] 35. Appearance before Commission. 36. Power of Commission to regulate its own procedure. 37. [Omitted.] 38. Rectification of orders. 39. Execution of orders of Commission imposing monetary penalty. 40. [Omitted.] CHAPTER V DUTIES OF DIRECTOR GENERAL 41. Director General to investigate contraventions. CHAPTER VI PENALTIES 42. Contravention of orders of Commission. 42A. Compensation in case of contravention of orders of Commission. 43. Penalty for failure to comply with directions of Commission and Director General. 43A. Power to impose penalty for non-furnishing of information on combinations. 44. Penalty for making false statement or omission to furnish material information. 45. Penalty for contraventions in relation to furnishing of information. 46. Power to impose lesser penalty. 47. Crediting sums realised by way of penalties to Consolidated Fund of India. 48. Contravention by companies. 48A. Settlement. 48B. Commitment. 48C. Revocation of the Settlement or Commitment order and penalty. CHAPTER VII COMPETITION ADVOCACY 49. Competition advocacy. CHAPTER VIII FINANCE, ACCOUNTS AND AUDIT 50. Grants by Central Government. 51. Constitution of Fund. 52. Accounts and audit. 53. Furnishing of returns, etc., to Central Government. ----- CHAPTER VIIIA APPELLATE TRIBUNAL SECTIONS 53A. Appellate Tribunal. 53B. Appeal to Appellate Tribunal. 53C. [Omitted.] 53D. [Omitted.] 53E. [Omitted.] 53F. [Omitted.] 53G. [Omitted.] 53H. [Omitted.] 53-I. [Omitted.] 53J. [Omitted.] 53K. [Omitted.] 53L. [Omitted.] 53M. [Omitted.] 53N. Awarding compensation. 53-O. Procedure and powers of Appellate Tribunal. 53P. Execution of orders of Appellate Tribunal. 53Q. Contravention of orders of Appellate Tribunal. 53R. [Omitted.] 53-S. Right to legal representation. 53T. Appeal to Supreme Court. 53U. Power to Punish for contempt. CHAPTER IX MISCELLANEOUS 54. Power to exempt. 55. Power of Central Government to issue directions. 56. Power of Central Government to supersede Commission. 57. Restriction on disclosure of information. 58. Chairperson, Members, Director General, Secretary, officers and other employees, etc., to be public servants. 59. Protection of action taken in good faith. 59A. Compounding of certain offences. 60. Act to have overriding effect. 61. Exclusion of jurisdiction of civil courts. 62. Application of other laws not barred. 63. Power to make rules. 64. Power to make regulations. 64A. Process of issuing regulations. 64B. Commission to issue guidelines. 65. Power to remove difficulties. 66. Repeal and saving. ----- # THE COMPETITION ACT, 2002 ACT NO. 12 OF 2003 [13th January, 2003.] # An Act to provide, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Competition Act, 2002.** (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “acquisition” means, directly or indirectly, acquiring or agreeing to acquire— (i) shares, voting rights or assets of any enterprise; or (ii) control over management or control over assets of any enterprise; (b) “agreement” includes any arrangement or understanding or action in concert,— (i) whether or not, such arrangement, understanding or action is formal or in writing; or (ii) whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings; 2[(ba) “Appellate Tribunal” means the National Company Law Appellate Tribunal referred to in sub-section (1) of section 53A;] (c) “cartel” includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services; (d) “Chairperson” means the Chairperson of the Commission appointed under sub-section (1) of section 8; (e) “Commission” means the Competition Commission of India established under sub-section (1) of section 7; 3[(ea) “commitment” means the commitment referred to in section 48B;] 1. 31st March, 2003, vide Notification No. S.O. 340(E), dated 31st March, 2003 in respect of [s. 1, cls. (d), (g), (j), (k), (l) and (n) of s. 2, ss. 8, 9, 10, 14, 16, 17, sub-sec. (1) of s. 63 and cls. (a), (b), (d), (e), (f) and (g) of sub-sec. (2) of s. 63]; 19th June, 2003, vide Notification no. S.O. 715(E), dated 19th June, 2003 in respect of [s. 2 {except cls. (d), (g), (j), (k), (l) and (n)}, ss. 7, 11, 12, 13, 15, 22, 23, 36, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, s. 63 {except cls. (a), (b), (d), (e), (f), (g) and (n) of subsec. (2)}, 64 and 65] 20th May, 2009, vide Notification No. S.O. 1241(E), dated 15th May, 2009 in respect of [s. 3, 4, 18, 19, 21, 26, 27, 28, 32, 33, 35, 38, 39, 41, 42, 43, 45, 46, 47, 48, 54, 55 and 56.] 1st September, 2009, vide Notification No. S.O. 2204(E), dated 28th August 2009 in respect of s. 66. 1st June, 2011, vide Notification No. S.O. 1231(E), dated 30th May 2011 in respect of s. 44. 2. Subs. by Act 7 of 2017, s. 171, for clause (ba) (w.e.f. 26-5-2017). 3. Ins. by Act 9 of 2023, s. 3 (w.e.f. 18-5-2023). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. ----- (f) “consumer” means any person who— (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, whether such purchase of goods is for resale or for any commercial purpose or for personal use; (ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first-mentioned person whether such hiring or availing of services is for any commercial purpose or for personal use; (g) “Director General” means the Director General appointed under sub-section (1) of section 16 and includes any Additional, Joint, Deputy or Assistant Directors General appointed under that section; (h) “enterprise” means [1][a person or a department of the Government, including units, divisions, subsidiaries, who or which is, or has been, engaged in any economic activity, relating to the production, storage, supply, distribution, acquisition or control of articles or goods, or the provision of services, of any kind, or in investment, or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate, either directly or through one or more of its units or divisions or subsidiaries, but does not include any activity of the Government relatable to the sovereign functions of the Government including all activities carried on by the departments of the Central Government dealing with atomic energy, currency, defence and space;] _Explanation.—For the purposes of this clause,—_ (a) “activity” includes profession or occupation; (b) “article” includes a new article and “service” includes a new service; (c) “unit” or “division”, in relation to an enterprise, includes— (i) a plant or factory established for the production, storage, supply, distribution, acquisition or control of any article or goods; (ii) any branch or office established for the provision of any service; (i) “goods” means goods as defined in the Sale of Goods Act, 1930 (8 of 1930) and includes— (A) products manufactured, processed or mined; (B) debentures, stocks and shares after allotment; (C) in relation to goods supplied, distributed or controlled in India, goods imported into India; (j) “Member” means a Member of the Commission appointed under sub-section (1) of section 8 and includes the Chairperson; (k) “notification” means a notification published in the Official Gazette; 2[(ka) “party” includes a consumer or an enterprise or a person or an information provider, or a consumer association or a trade association, or the Central Government or any State Government or any statutory authority, as the case may be, and shall include an enterprise or a person against whom any inquiry or proceeding is instituted; and any enterprise or person impleaded by the Commission to join the proceedings;] 1. Subs. by Act 9 of 2023, s. 3, for certain words (w.e.f. 18-5-2023). 2. Ins. by s. 3, ibid. (w.e.f. 18-5-2023). ----- (l) “person” includes— (i) an individual; (ii) a Hindu undivided family; (iii) a company; (iv) a firm; (v) an association of persons or a body of individuals, whether incorporated or not, in India or outside India; (vi) any corporation established by or under any Central, State or Provincial Act or a Government company as defined in [1][clause (45) of section 2 of [2][the Companies Act, 2013 (18 of 2013)]]; (vii) any body corporate incorporated by or under the laws of a country outside India; (viii) a co-operative society registered under any law relating to co-operative societies; (ix) a local authority; (x) every artificial juridical person, not falling within any of the preceding sub-clauses; (m) “practice” includes any practice relating to the carrying on of any trade by a person or an enterprise; (n) “prescribed” means prescribed by rules made under this Act; (o) “price”, in relation to the sale of any goods or to the performance of any services, includes every valuable consideration, whether direct or indirect, or deferred, and includes any consideration which in effect relates to the sale of any goods or to the performance of any services although ostensibly relating to any other matter or thing; 3[(p) “public financial institution” means public financial institution as defined in clause (72) of section 2 of the Companies Act, 2013 (18 of 2013) and includes a State Financial Corporation, State Industrial Corporation or State Investment Corporation;] (q) “regulations” means the regulations made by the Commission under section 64; (r) “relevant market” means the market which may be determined by the Commission with reference to the relevant product market or the relevant geographic market or with reference to both the markets; (s) “relevant geographic market” means a market comprising the area in which the conditions of competition for supply of goods or provision of services or demand of goods or services are distinctly homogenous and can be distinguished from the conditions prevailing in the neighbouring areas; 4[(t) “relevant product market” means a market comprising of all those products or services— (i) which are regarded as inter-changeable or substitutable by the consumer, by reason of characteristics of the products or services, their prices and intended use; or (ii) the production or supply of, which are regarded as inter-changeable or substitutable by the supplier, by reason of the ease of switching production between such products and services and marketing them in the short term without incurring significant additional costs or risks in response to small and permanent changes in relative prices;] (u) “service” means service of any description which is made available to potential users and includes the provision of services in connection with business of any industrial or commercial matters 1. Subs. by Act 9 of 2023, s. 3, for the words and figures “section 617 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 18-5 2023). 2. Subs. by s. 2, ibid., for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 18-5-2023). 3. Subs. by s. 3, ibid., for clause (p) (w.e.f. 18-5-2023). 4. Subs. by s. 3, ibid., for clause (t) (w.e.f. 18-5-2023). ----- such as banking, communication, education, financing, insurance, chit funds, real estate, transport, storage, material treatment, processing, supply of electrical or other energy, boarding, lodging, entertainment, amusement, construction, repair, conveying of news or information and advertising; 1[(ua) “settlement” means the settlement referred to in section 48A;] (v) “shares” means shares in the share capital of a company carrying voting rights and includes— (i) any security which entitles the holder to receive shares with voting rights; (ii) stock except where a distinction between stock and share is expressed or implied; (w) “statutory authority” means any authority, board, corporation, council, institute, university or any other body corporate, established by or under any Central, State or Provincial Act for the purposes of regulating production or supply of goods or provision of any services or markets therefor or any matter connected therewith or incidental thereto; (x) “trade” means any trade, business, industry, profession or occupation relating to the production, supply, distribution, storage or control of goods and includes the provision of any services; (y) “turnover” includes value of sale of goods or services; (z) words and expressions used but not defined in this Act and defined in [2][the Companies Act, 2013 (18 of 2013)] shall have the same meanings respectively assigned to them in that Act. CHAPTER II PROHIBITION OF CERTAIN AGREEMENTS, ABUSE OF DOMINANT POSITION AND REGULATION OF COMBINATIONS _Prohibition of agreements_ **3. Anti-competitive agreements.—(1) No enterprise or association of enterprises or person or** association of persons shall enter into any agreement in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which causes or is likely to cause an appreciable adverse effect on competition within India. (2) Any agreement entered into in contravention of the provisions contained in sub-section (1) shall be void. (3) Any agreement entered into between enterprises or associations of enterprises or persons or associations of persons or between any person and enterprise or practice carried on, or decision taken by, any association of enterprises or association of persons, including cartels, engaged in identical or similar trade of goods or provision of services, which— (a) directly or indirectly determines purchase or sale prices; (b) limits or controls production, supply, markets, technical development, investment or provision of services; (c) shares the market or source of production or provision of services by way of allocation of geographical area of market, or type of goods or services, or number of customers in the market or any other similar way; (d) directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have an appreciable adverse effect on competition: Provided that nothing contained in this sub-section shall apply to any agreement entered into by way of joint ventures if such agreement increases efficiency in production, supply, distribution, storage, acquisition or control of goods or provision of services. 1. Ins. by Act 9 of 2023, s. 3 (w.e.f. 18-5-2023). 2. Subs. by s. 2, ibid., for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 18-5-2023). ----- 1[Provided further that an enterprise or association of enterprises or a person or association of persons though not engaged in identical or similar trade shall also be presumed to be part of the agreement under this sub-section if it participates or intends to participate in the furtherance of such agreement.] _Explanation.—For the purposes of this sub-section, “bid rigging” means any agreement, between_ enterprises or persons referred to in sub-section (3) engaged in identical or similar production or trading of goods or provision of services, which has the effect of eliminating or reducing competition for bids or adversely affecting or manipulating the process for bidding. (4) [2][Any other agreement amongst enterprises or persons including but not restricted to agreement amongst enterprises or persons] at different stages or levels of the production chain in different markets, in respect of production, supply, distribution, storage, sale or price of, or trade in goods or provision of services, including— (a) tie-in arrangement; (b) exclusive [3][dealing] agreement; (c) exclusive distribution agreement; (d) refusal to deal; (e) resale price maintenance, shall be an agreement in contravention of sub-section (1) if such agreement causes or is likely to cause an appreciable adverse effect on competition in India. 4[Provided that nothing contained in this sub-section shall apply to an agreement entered into between an enterprise and an end consumer.] _Explanation.—For the purposes of this sub-section,—_ 5[(a) “tie-in arrangement” includes any agreement requiring a purchaser of goods or services, as a condition of such purchase, to purchase some other distinct goods or services; (b) “exclusive dealing agreement” includes any agreement restricting in any manner the purchaser or the seller, as the case may be, in the course of his trade from acquiring or selling or otherwise dealing in any goods or services other than those of the seller or the purchaser or any other person, as the case may be;] (c) “exclusive distribution agreement” includes any agreement to limit, restrict or withhold the output or supply of any goods [6][or services] or allocate any area or market for the disposal or sale of the goods [6][or services]; (d) “refusal to deal” includes any agreement which restricts, or is likely to restrict, by any method the persons or classes of persons to whom goods [6][or services] are sold or from whom goods 6[or services] are bought; (e) “resale price maintenance” [7][includes, in case of any agreement to sell goods or provide services, any direct or indirect restriction] that the prices to be charged on the resale by the purchaser shall be the prices stipulated by the seller unless it is clearly stated that prices lower than those prices may be charged. (5) Nothing contained in this section shall restrict— (i) the right of any person to restrain any infringement of, or to impose reasonable conditions, as may be necessary for protecting any of his rights which have been or may be conferred upon him under— 1. Ins. by Act 9 of 2023, s. 4 (w.e.f. 18-5-2023). 2. Subs. by s. 4, ibid., for “Any agreement amongst enterprises or persons” (w.e.f. 18-5-2023). 3. Subs. by s. 4, for “supply” (w.e.f. 18-5-2023). 4. Ins. by s. 4, ibid. (w.e.f. 18-5-2023). 5. Subs. by s. 4, ibid., for clauses (a) and (b) (w.e.f. 18-5-2023). 6. Ins. by s. 4, ibid. (w.e.f. 18-5-2023). 7. Subs. by s. 4, ibid., for “includes any agreement to sell goods on condition” (w.e.f. 18-5-2023). ----- (a) the Copyright Act, 1957 (14 of 1957); (b) the Patents Act, 1970 (39 of 1970); (c) the Trade and Merchandise Marks Act, 1958 (43 of 1958) or the Trade Marks Act, 1999 (47 of 1999); (d) the Geographical Indications of Goods (Registration and Protection) Act, 1999 (48 of 1999); (e) the Designs Act, 2000 (16 of 2000); (f) the Semi-conductor Integrated Circuits Layout-Design Act, 2000 (37 of 2000); 1[(g) any other law for the time being in force relating to the protection of other intellectual property rights.] (ii) the right of any person to export goods from India to the extent to which the agreement relates exclusively to the production, supply, distribution or control of goods or provision of services for such export. _Prohibition of abuse of dominant position_ **4. Abuse of dominant position.—[2][(1) No enterprise or group shall abuse its dominant position.]** (2) There shall be an abuse of dominant position [3][under sub-section (1), if an enterprise or a group],— (a) directly or indirectly, imposes unfair or discriminatory— (i) condition in purchase or sale of goods or service; or (ii) price in purchase or sale (including predatory price) of goods or service. _Explanation.—For the purposes of this clause, the unfair or discriminatory condition in purchase_ or sale of goods or service referred to in sub-clause (i) and unfair or discriminatory price in purchase or sale of goods (including predatory price) or service referred to in sub-clause (ii) shall not include such [4][condition or price] which may be adopted to meet the competition; or (b) limits or restricts— (i) production of goods or provision of services or market therefor; or (ii) technical or scientific development relating to goods or services to the prejudice of consumers; or (c) indulges in practice or practices resulting in denial of market access [5][in any manner]; or (d) makes conclusion of contracts subject to acceptance by other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts; or (e) uses its dominant position in one relevant market to enter into, or protect, other relevant market. _Explanation.—For the purposes of this section, the expression—_ (a) “dominant position” means a position of strength, enjoyed by an enterprise, in the relevant market, in India, which enables it to— (i) operate independently of competitive forces prevailing in the relevant market; or (ii) affect its competitors or consumers or the relevant market in its favour; 1. Ins. by Act 9 of 2023, s. 4 (w.e.f. 18-5-2023). 2. Subs. by Act 39 of 2007, s. 3, for sub-section (1) (w.e.f. 20-5-2009). 3. Subs. by s. 3, ibid., for “under sub-section (1), if an enterprise” (w.e.f. 20-5-2009). 4. Subs. by Act 9 of 2023, s. 5, for “discriminatory condition or price” (w.e.f. 18-5-2023). 5. Ins. by Act 39 of 2007, s. 3 (w.e.f. 20-5-2009). ----- (b) “predatory price” means the sale of goods or provision of services, at a price which is below the cost, as may be determined by regulations, of production of the goods or provision of services, with a view to reduce competition or eliminate the competitors; 1[(c) “group” shall have the same meaning as assigned to it in clause (b) of the Explanation to section 5.] _Regulation of combinations_ **5. Combination.—The acquisition of one or more enterprises by one or more persons or merger or** amalgamation of enterprises shall be a combination of such enterprises and persons or enterprises, if— (a) any acquisition where— (i) the parties to the acquisition, being the acquirer and the enterprise, whose control, shares, voting rights or assets have been acquired or are being acquired jointly have,— (A) either, in India, the assets of the value of more than rupees one thousand crores or turnover more than rupees three thousand crores; or 2[(B) in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars, including at least rupees five hundred crores in India, or turnover more than fifteen hundred million US dollars, including at least rupees fifteen hundred crores in India; or] (ii) the group, to which the enterprise whose control, shares, assets or voting rights have been acquired or are being acquired, would belong after the acquisition, jointly have or would jointly have,— (A) either in India, the assets of the value of more than rupees four thousand crores or turnover more than rupees twelve thousand crores; or 3[(B) in India or outside India, in aggregate, the assets of the value of more than two billion US dollars, including at least rupees five crores in India, or turnover more than six billion US dollars; or, including at least rupees fifteen hundred crores in india; or] (b) acquiring of control by a person over an enterprise when such person has already direct or indirect control over another enterprise engaged in production, distribution or trading of a similar or identical or substitutable goods or provision of a similar or identical or substitutable service, if— (i) the enterprise over which control has been acquired along with the enterprise over which the acquirer already has direct or indirect control jointly have,— (A) either in India, the assets of the value of more than rupees one thousand crores or turnover more than rupees three thousand crores; or 4[(B) in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars, including at least rupees five hundred crores in India, or turnover more than fifteen hundred million US dollars, including at least rupees fifteen hundred crores in India; or] (ii) the group, to which enterprise whose control has been acquired, or is being acquired, would belong after the acquisition, jointly have or would jointly have,— (A) either in India, the assets of the value of more than rupees four thousand crores or turnover more than rupees twelve thousand crores; or 5[(B) in India or outside India, in aggregate, the assets of the value of more than two billion US dollars, including at least rupees five hundred crores in India, or turnover more than six billion US dollars, including at least rupees fifteen hundred crores in India; or] 1. Ins. by Act 39 of 2007, s. 3 (w.e.f. 20-5-2009). 2. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011). 3. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011). 4. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011). 5. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011). ----- (c) any merger or amalgamation in which— (i) the enterprise remaining after merger or the enterprise created as a result of the amalgamation, as the case may be, have,— (A) either in India, the assets of the value of more than rupees one thousand crores or turnover more than rupees three thousand crores; or 1[(B) in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars, including at least rupees five hundred crores in India, or turnover more than fifteen hundred million US dollars, including at least rupees fifteen hundred crores in India; or] (ii) the group, to which the enterprise remaining after the merger or the enterprise created as a result of the amalgamation, would belong after the merger or the amalgamation, as the case may be, have or would have,— (A) either in India, the assets of the value of more than rupees four-thousand crores or turnover more than rupees twelve thousand crores; or 2[(B) in India or outside India, in aggregate, the assets of the value of more than two billion US dollars, including at least rupees five hundred crores in India, or turnover more than six billion US dollars, including at least rupees fifteen hundred crores in [3][India; or]] 4[(d) value of any transaction, in connection with acquisition of any control, shares, voting rights or assets of an enterprise, merger or amalgamation exceeds rupees two thousand crore: Provided that the enterprise which is being acquired, taken control of, merged or amalgamated has such substantial business operations in India as may be specified by regulations. (e) notwithstanding anything contained in clause (a) or clause (b) or clause (c), where either the value of assets or turnover of the enterprise being acquired, taken control of, merged or amalgamated in India is not more than such value as may be prescribed, such acquisition, control, merger or amalgamation, shall not constitute a combination under section 5.] 5[Explanation.—For the purposes of this section,— (a) “control” means the ability to exercise material influence, in any manner whatsoever, over the management or affairs or strategic commercial decisions by— (i) one or more enterprises, either jointly or singly, over another enterprise or group; or (ii) one or more groups, either jointly or singly, over another group or enterprise; (b) “group” means two or more enterprises where one enterprise is directly or indirectly, in a position to— (i) exercise twenty-six per cent. or such other higher percentage as may be prescribed, of the voting rights in the other enterprise; or (ii) appoint more than fifty per cent. of the members of the board of directors in the other enterprise; or (iii) control the management or affairs of the other enterprise; (c) “turnover” means the turnover certified by the statutory auditor on the basis of the last available audited accounts of the company in the financial year immediately preceding the financial year in which the notice is filed under sub-section (2) or sub-section (4) of section 6 and such turnover in India shall be determined by excluding intra-group sales, indirect taxes, trade discounts and all amounts generated through assets or business from customers outside 1. Subs. by Act 39 of 2007, s. 4, for Item (B) (w.e.f. 1-6-2011). 2. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011). 3. Subs. by Act 9 of 2023, s. 6, for “India.” (w.e.f. 10-9-2024). 4. Ins. by s. 6, ibid. (w.e.f. 10-9-2024). 5. Subs. by s. 6, ibid., for the Explanation (w.e.f. 10-9-2024). ----- India, as certified by the statutory auditor on the basis of the last available audited accounts of the company in the financial year immediately preceding the financial year in which the notice is filed under sub-section (2) or sub-section (4) of section 6; (d) “value of transaction” includes every valuable consideration, whether direct or indirect, or deferred for any acquisition, merger or amalgamation; (e) the value of assets shall be determined by taking the book value of the assets as shown, in the audited books of account of the enterprise, in the financial year immediately preceding the financial year in which the date of proposed combination falls and if such financial statement has not yet become due to be filed with the Registrar under the Companies Act, 2013 (18 of 2013) then as per the statutory auditor's report made on the basis of the last available audited accounts of the company in the financial year immediately preceding the financial year in which the notice is filed under sub-section (2) or sub-section (4) of section 6, as reduced by any depreciation, and the value of assets shall include the brand value, value of goodwill, or value of copyright, patent, permitted use, collective mark, registered proprietor, registered trade mark, registered user, homonymous geographical indication, geographical indications, design or layout-design or similar other commercial rights under the laws provided in sub-section (5) of section 3; (f) where a portion of an enterprise or division or business is being acquired, taken control of, merged or amalgamated with another enterprise, the value of assets or turnover or value of transaction as may be applicable, of the said portion or division or business or attributable to it, shall be the relevant assets or turnover or relevant value of transaction for the purpose of applicability of the thresholds under section 5.] **6. Regulation of combinations.—(1) No person or enterprise shall enter into a combination which** causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India and such a combination shall be void. (2) Subject to the provisions contained in sub-section (1), any person or enterprise, who or which proposes to enter into a combination, [1][shall] give notice to the Commission, in the form as may be specified, and the fee which may be determined, by regulations, disclosing the details of the proposed combination, [2][after any of the following, but before consummation of the combination]— (a) approval of the proposal relating to merger or amalgamation, referred to in clause (c) [3][and clause (d)] of section 5, by the board of directors of the enterprises concerned with such merger or amalgamation, as the case may be; (b) execution of any agreement or other document for acquisition referred to in clause (a) [3][and clause (d)] of section 5 or acquiring of control referred to in clause (b) of that section. 3[Explanation.—For the purposes of this sub-section, “other document” means any document, by whatever name called, conveying an agreement or decision to acquire control, shares, voting rights or assets or if the acquisition is without the consent of the enterprise being acquired, any document executed by the acquiring enterprise, by whatever name called, conveying a decision to acquire control, shares or voting rights or where a public announcement has been made in accordance with the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) for acquisition of shares, voting rights or control such public document.] 4[(2A) No combination shall come into effect until 5[one hundred and fifty days] have passed from the day on which the notice has been given to the Commission under sub-section (2) or the Commission has passed orders under section 31, whichever is earlier.] 1. Subs. by Act 39 of 2007, s. 5, for “may, at his or its option,” (w.e.f. 1-6-2011). 2. Subs. by Act 9 of 2023, s. 7, for “within thirty days of” (w.e.f. 10-9-2024). 3. Ins. by s. 7, ibid. (w.e.f. 10-9-2024). 4. Ins. by Act 39 of 2007, s. 5 (w.e.f. 1-6-2011). 5. Subs. by Act 9 of 2023, s. 7, for “two hundred and ten days” (w.e.f. 10-9-2024). ----- (3) The Commission shall, after receipt of notice under sub-section (2), deal with such notice in accordance with the provisions contained in [1][sections 29, 29A, 30 and 31.] 2[(4) Notwithstanding anything contained in sub-sections (2A) and (3) and section 43A, if a combination fulfils such criteria as may be prescribed and is not otherwise exempted under this Act from the requirement to give notice to the Commission under sub-section (2), then notice for such combination may be given to the Commission in such form and on payment of such fee as may be specified by regulations, disclosing the details of the proposed combination and thereupon a separate notice under sub-section (2) shall not be required to be given for such combination. (5) Upon filing of a notice under sub-section (4) and acknowledgement thereof by the Commission, the proposed combination shall be deemed to have been approved by the Commission under sub-section (1) of section 31 and no other approval shall be required under sub-section (2) or sub-section (2A). (6) If within the period referred to in sub-section (1) of section 20, the Commission finds that the combination notified under sub-section (4) does not fulfil the requirements specified under that subsection or the information or declarations provided are materially incorrect or incomplete, the approval under sub-section (5) shall be void ab initio and the Commission may pass such order as it may deem fit: Provided that no such order shall be passed unless the parties to the combination have been given an opportunity of being heard. (7) Notwithstanding anything contained in this section and section 43A, upon fulfilment of such criteria as may be prescribed, certain categories of combinations shall be exempted from the requirement to comply with sub-sections (2), (2A) and (4). (8) Notwithstanding anything contained in sub-sections (4), (5), (6) and (7)— (i) the rules and regulations made under this Act on the matters referred to in these sub-sections as they stood immediately before the commencement of the Competition (Amendment) Act, 2023 and in force at such commencement, shall continue to be in force, till such time as the rules or regulations, as the case may be, made under this Act; and (ii) any order passed or any fee imposed or combination consummated or resolution passed or direction given or instrument executed or issued or thing done under or in pursuance of any rules and regulations made under this Act shall, if in force at the commencement of the Competition (Amendment) Act, 2023, continue to be in force, and shall have effect as if such order passed or such fee imposed or such combination consummated or such resolution passed or such direction given or such instrument executed or issued or done under or in pursuance of this Act. (9) The provisions of this section shall not apply to share subscription or financing facility or any acquisition, by a public financial institution, foreign portfolio investor, bank or Category I alternative investment fund, pursuant to any covenant of a loan agreement or investment agreement. _Explanation.—For the purposes of this section, the expression—_ (a) “Category I alternative investment fund” has the same meaning as assigned to it under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (b) “foreign portfolio investor” has the same meaning as assigned to it under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the Securities and Exchange Board of India Act,1992 (15 of 1992).] **3[6A. Open offers, etc.— Nothing contained in sub-section (2A) of section 6 and section 43A shall** prevent the implementation of an open offer or an acquisition of shares or securities convertible into other securities from various sellers, through a series of transactions on a regulated stock exchange from coming into effect, if— 1. Subs. by Act 9 of 2023, s. 7, for “sections 29, 30 and 31” (w.e.f. 10-9-2024). 2. Subs. by s. 7, ibid., for sub-sections (4) and (5) and the Explanation (w.e.f. 10-9-2024) 3. Ins. by s. 8, ibid. (w.e.f. 10-9-2024). ----- (a) the notice of the acquisition is filed with the Commission within such time and in such manner as may be specified by regulations; and (b) the acquirer does not exercise any ownership or beneficial rights or interest in such shares or convertible securities including voting rights and receipt of dividends or any other distributions, except as may be specified by regulations, till the Commission approves such acquisition in accordance with the provisions of sub-section (2A) of section 6 of the Act. _Explanation.—For the purposes of this section, “open offer” means an open offer made in accordance_ with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulation, 2011 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992).] CHAPTER III COMPETITION COMMISSION OF INDIA **7. Establishment of Commission.—(1) With effect from such date[1] as the Central Government may,** by notification, appoint, there shall be established, for the purposes of this Act, a Commission to be called the “Competition Commission of India”. (2) The Commission shall be a body corporate by the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (3) The head office of the Commission shall be at such place* as the Central Government may decide from time to time. (4) The Commission may establish offices at other places in India. **2[8. Composition of Commission.—(1) The Commission shall consist of a Chairperson and not less** than two and not more than six other Members to be appointed by the Central Government. (2) The Chairperson and every other Member shall be a person of ability, integrity and standing and who has special knowledge of, and such professional experience of not less than fifteen years in, international trade, economics, business, commerce, law, finance, accountancy, management, industry 3[technology,] public affairs or competition matters, including competition law and policy, which in the opinion of the Central Government, may be useful to the Commission. (3) The Chairperson and other Members shall be whole-time Members.] 4[9. Selection Committee for Chairperson and Members of Commission.—(1) The Chairperson and other Members of the Commission shall be appointed by the Central Government from a panel of names recommended by a Selection Committee consisting of— (a) the Chief Justice of India or his nominee……..Chairperson; (b) the Secretary in the Ministry of Corporate Affairs………Member; (c) the Secretary in the Ministry of Law and Justice……….Member; (d) two experts of repute who have special knowledge of, and professional experience in international trade, economics, business, commerce, law, finance, accountancy, management, industry, [5][technology,] public affairs or competition matters including competition law and policy……….Members. (2) The term of the Selection Committee and the manner of selection of panel of names shall be such as may be prescribed.] 1. 14th October, 2003, vide Notification No. S.O. 1198(E), dated 14th October, 2003. - New Delhi, vide Notification NO. S.O. 1198(E), dated 14th October, 2003. 2. Subs. by Act 39 of 2007, s. 6, for section 8 (w.e.f. 12-10-2007). 3. Ins. by Act 9 of 2023, s. 9 (w.e.f. 18-5-2023). 4. Subs. by Act 39 of 2007, s. 7, for section 9 (w.e.f. 12-10-2007). 5. Ins. by Act 9 of 2023, s. 10 (w.e.f. 18-5-2023). ----- **10. Term of office of Chairperson and other Members.—(1) The Chairperson and every other** Member shall hold office as such for a term of five years from the date on which he enters upon his office and shall be eligible for re-appointment: 1[Provided that the Chairperson or other Members shall not hold office as such after he has attained the age of sixty-five years.] (2) A vacancy caused by the resignation or removal of the Chairperson or any other Member under section 11 or by death or otherwise shall be filled by fresh appointment in accordance with the provisions of sections 8 and 9. (3) The Chairperson and every other Member shall, before entering upon his office, make and subscribe to an oath of office and of secrecy in such form, manner and before such authority, as may be prescribed. (4) In the event of the occurrence of a vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the senior-most Member shall act as the Chairperson, until the date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office. (5) When the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member shall discharge the functions of the Chairperson until the date on which the Chairperson resumes the charge of his functions. **11. Resignation, removal and suspension of Chairperson and other Members.—(1) The** Chairperson or any other Member may, by notice in writing under his hand addressed to the Central Government, resign his office: Provided that the Chairperson or a Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. (2) Notwithstanding anything contained in sub-section (1), the Central Government may, by order, remove the Chairperson or any other Member from his office if such Chairperson or Member, as the case may be,— (a) is, or at any time has been, adjudged as an insolvent; or (b) has engaged at any time, during his term of office, in any paid employment; or (c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest; or (f) has become physically or mentally incapable of acting as a Member. (3) Notwithstanding anything contained in sub-section (2), no Member shall be removed from his office on the ground specified in clause (d) or clause (e) of that sub-section unless the Supreme Court, on a reference being made to it in this behalf by the Central Government, has, on an inquiry, held by it in accordance with such procedure as may be prescribed in this behalf by the Supreme Court, reported that the Member, ought on such ground or grounds to be removed. 2[12. Restriction on employment of Chairperson and other Members.—(1) The Chairperson and other Members shall, for a period of two years from the date on which they cease to hold office, not 1. Subs. by Act 39 of 2007, s. 8, for the proviso (w.e.f. 12-10-2007). 2. Subs. by Act 9 of 2023, s. 11, for section 12 (w.e.f. 18-5-2023). ----- accept any employment in or advise as a consultant, retainer or in any other capacity whatsoever, or be connected with the management or administration of— (a) any enterprise which is or has been a party to a proceeding before the Commission under this Act; or (b) any person who appears or has appeared before the Commission under section 35. (2) Notwithstanding anything contained in section 35, the Chairperson or any other Member after retirement or otherwise ceasing to be in service for any reason shall not represent for any person or enterprise before the Commission: Provided that nothing contained in this section shall apply to any employment under the Central Government or a State Government or local authority or in any statutory authority or any corporation established by or under any Central, State or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013).] 1[13. Administrative powers of Chairperson.—The Chairperson shall have the powers of general superintendence, direction and control in respect of all administrative matters of the Commission: Provided that the Chairperson may delegate such of his powers relating to administrative matters of the Commission, as he may think fit, to any other Member or officer of the Commission.] **14. Salary and allowances and other terms and conditions of service of Chairperson and other** **Members.—(1) The salary, and the other terms and conditions of service, of the Chairperson and other** Members, including travelling expenses, house rent allowance and conveyance facilities, sumptuary allowance and medical facilities shall be such as may be prescribed. (2) The salary, allowances and other terms and conditions of service of the Chairperson or a Member shall not be varied to his disadvantage after appointment. **15. Vacancy, etc., not to invalidate proceedings of Commission.—No act or proceeding of the** Commission shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Commission; or (b) any defect in the appointment of a person acting as a Chairperson or as a Member; or (c) any irregularity in the procedure of the Commission not affecting the merits of the case. **16. Appointment of Director General, etc.—[2][(1) The** [3][Commission may, with the prior approval of the Central Government], appoint a Director General for the purposes of assisting the Commission in conducting inquiry into contravention of any of the provisions of this Act and for performing such other functions as are, or may be, provided by or under this Act. (1A) The number of other Additional, Joint, Deputy or Assistant Directors General or such officers or other employees in the office of Director General and the manner of appointment of such Additional, Joint, Deputy or Assistant Directors General or such officers or other employees shall be such as may be prescribed.] (2) Every Additional, Joint, Deputy and Assistant Directors General or [4][such officers or other employees,] shall exercise his powers, and discharge his functions, subject to the general control, supervision and direction of the Director General. (3) The salary, allowances and other terms and conditions of service of the Director General and Additional, Joint, Deputy and Assistant Directors General or [5][such officers or other employees,] shall be such as may be prescribed. 1. Subs. by Act 39 of 2007, s. 10, for section 13 (w.e.f. 20-5-2009). 2. Subs. by s. 11, ibid., for sub-section (1) (w.e.f. 12-10-2007). 3. Subs. by Act 9 of 2023, s. 12, for “Central Government may, by notification” (w.e.f. 18-7-2023). 4. Subs. by Act 39 of 2007, s. 11, for “such other advisers, consultants and officers,” (w.e.f. 12-10-2007). 5. Subs. by s. 11, ibid., for “such other advisers, consultants or officers,” (w.e.f. 12-10-2007). ----- (4) The Director General and Additional, Joint, Deputy and Assistant Directors General or [5][such officers or other employees,] shall be appointed from amongst persons of integrity and outstanding ability and who have experience in investigation, and knowledge of accountancy, management, business, public administration, international trade, law or economics and such other qualifications as may be prescribed. 1[17. Appointment of Secretary, experts, professionals and officers and other employees of **Commission.—(1) The Commission may appoint a Secretary and such officers and other employees as it** considers necessary for the efficient performance of its functions under this Act. (2) The salaries and allowances payable to and other terms and conditions of service of the Secretary and officers and other employees of the Commission and the number of such officers and other employees shall be such as may be prescribed. (3) The Commission may engage, in accordance with the procedure specified by regulations, such number of experts and professionals of integrity and outstanding ability, who have special knowledge of, and experience in, economics, law, business or such other disciplines related to competition, as it deems necessary to assist the Commission in the discharge of its functions under this Act.] CHAPTER IV DUTIES, POWERS AND FUNCTIONS OF COMMISSION 2[18. Duties and functions of Commission.—Subject to the provisions of this Act, it shall be the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India: Provided that the Commission may, for the purpose of discharging its duties or performing its functions under this Act, enter into any memorandum or arrangement with the prior approval of the Central Government, with any agency of any foreign country: Provided further that, the Commission may, for the purpose of discharging its duties or performing its functions under this Act, enter into any memorandum or arrangement with any statutory authority or department of Government.] **19. Inquiry into certain agreements and dominant position of enterprise.—(1) The Commission** may inquire into any alleged contravention of the provisions contained in sub-section (1) of section 3 or sub-section (1) of section 4 either on its own motion or on— (a) [3][receipt of any information, in such manner and] accompanied by such fee as may be determined by regulations, from any person, consumer or their association or trade association; or (b) a reference made to it by the Central Government or a State Government or a statutory authority. 4[Provided that the Commission shall not entertain an information or a reference unless it is filed within three years from the date on which the cause of action has arisen: Provided further that an information or a reference may be entertained after the period specified in the first proviso if the Commission is satisfied that there had been sufficient cause for not filing the information or the reference within such period after recording its reasons for condoning such delay.] (2) Without prejudice to the provisions contained in sub-section (1), the powers and functions of the Commission shall include the powers and functions specified in sub-sections (3) to (7). (3) The Commission shall, while determining whether an agreement has an appreciable adverse effect on competition under section 3, have due regard to all or any of the following factors, namely:— (a) creation of barriers to new entrants in the market; 1. Subs. by Act 39 of 2007, s. 12, for section 17 (w.e.f. 12-10-2007). 2. Subs. by Act 9 of 2023, s. 13, for section 18 (w.e.f. 18-5-2023). 3. Subs. by Act 39 of 2007, s. 13, for “receipt of a complaint” (w.e.f. 20-5-2009). 4. Ins. by Act 9 of 2023, s. 14 (w.e.f. 18-5-2023). ----- (b) driving existing competitors out of the market; (c) foreclosure of competition [1]***; (d) [2][benefits or harm] to consumers; (e) improvements in production or distribution of goods or provision of services; (f) promotion of technical, scientific and economic development by means of production or distribution of goods or provision of services. (4) The Commission shall, while inquiring whether an enterprise enjoys a dominant position or not under section 4, have due regard to all or any of the following factors, namely:— (a) market share of the enterprise; (b) size and resources of the enterprise; (c) size and importance of the competitors; (d) economic power of the enterprise including commercial advantages over competitors; (e) vertical integration of the enterprises or sale or service network of such enterprises; (f) dependence of consumers on the enterprise; (g) monopoly or dominant position whether acquired as a result of any statute or by virtue of being a Government company or a public sector undertaking or otherwise; (h) entry barriers including barriers such as regulatory barriers, financial risk, high capital cost of entry, marketing entry barriers, technical entry barriers, economies of scale, high cost of substitutable goods or service for consumers; (i) countervailing buying power; (j) market structure and size of market; (k) social obligations and social costs; (l) relative advantage, by way of the contribution to the economic development, by the enterprise enjoying a dominant position having or likely to have an appreciable adverse effect on competition; (m) any other factor which the Commission may consider relevant for the inquiry. (5) For determining whether a market constitutes a “relevant market” for the purposes of this Act, the Commission shall have due regard to the “relevant geographic market’’ and “relevant product market”. (6) The Commission shall, while determining the “relevant geographic market”, have due regard to all or any of the following factors, namely:— (a) regulatory trade barriers; (b) local specification requirements; (c) national procurement policies; (d) adequate distribution facilities; (e) transport costs; (f) language; (g) consumer preferences; 1. The words “by hindering entry into the market” omitted by Act 9 of 2023, s. 14 (w.e.f. 18-5-2023). 2. Subs. by s. 14, ibid. for “accrual of benefits” (w.e.f. 18-5-2023). ----- (h) need for secure or regular supplies or rapid after-sales services. 1[(i) characteristics of goods or nature of services; (j) costs associated with switching supply or demand to other areas.] (7) The Commission shall, while determining the “relevant product market”, have due regard to all or any of the following factors, namely:— (a) physical characteristics or end-use of goods [1][or the nature of services]; (b) price of goods or service; (c) consumer preferences; (d) exclusion of in-house production; (e) existence of specialised producers; (f) classification of industrial products. 1[(g) costs associated with switching demand or supply to other goods or services; (h) categories of customers.] **20. Inquiry into combination by Commission.—(1) The Commission may, upon its own** knowledge or information relating to acquisition referred to in clause (a) of section 5 or acquiring of control referred to in clause (b) of section 5 or merger or amalgamation referred to in [2][clause (c) of section 5 or acquisition of any control, shares, voting right or assets of an enterprise, merger or amalgamation referred to in clause (d) of that section], inquire into whether such a combination has caused or is likely to cause an appreciable adverse effect on competition in India: Provided that the Commission shall not initiate any inquiry under this sub-section after the expiry of one year from the date on which such combination has taken effect. (2) The Commission shall, on receipt of a notice under sub-section (2) of section 6 [3]***, inquire whether a combination referred to in that notice or reference has caused or is likely to cause an appreciable adverse effect on competition in India. (3) Notwithstanding anything contained in section 5, the Central Government shall, on the expiry of a period of two years from the date of commencement of this Act and thereafter every two years, in consultation with the Commission, [4][enhance or reduce by notification, or keep at the same level, on the basis of the wholesale price index or fluctuations in exchange rate of rupee or foreign currencies, or such factors that in its opinion are relevant in this matter, the value of assets or the value of turnover or value of transaction], for the purposes of that section. (4) For the purposes of determining whether a combination would have the effect of or is likely to have an appreciable adverse effect on competition in the relevant market, the Commission shall have due regard to all or any of the following factors, namely:— (a) actual and potential level of competition through imports in the market; (b) extent of barriers to entry into the market; (c) level of [5][concentration] in the market; (d) degree of countervailing power in the market; (e) likelihood that the combination would result in the parties to the combination being able to significantly and sustainably increase prices or profit margins; 1. Ins. by Act 9 of 2023, s. 14 (w.e.f. 18-5-2023). 2. Subs. by s. 15, ibid., for “clause (c) of that section” (w.e.f. 18-5-2023). 3. The words, brackets and figures in brackets “or upon receipt of a reference under sub-section (1) of section 21” omitted by Act 39 of 2007, s. 14 (w.e.f. 1-6-2011). 4. Subs. by Act 9 of 2023, s. 15, for certain words (w.e.f. 18-5-2023). 5. Subs. by s. 15, ibid., for “combination” (w.e.f. 18-5-2023). ----- (f) extent of effective competition likely to sustain in a market; (g) extent to which substitutes are available or are likely to be available in the market; (h) market share, in the relevant market, of the persons or enterprise in a combination, individually and as a combination; (i) likelihood that the combination would result in the removal of a vigorous and effective competitor or competitors in the market; (j) nature and extent of vertical integration in the market; (k) possibility of a failing business; (l) nature and extent of innovation; (m) relative advantage, by way of the contribution to the economic development, by any combination having or likely to have appreciable adverse effect on competition; (n) whether the benefits of the combination outweigh the adverse impact of the combination, if any. **21. Reference by statutory authority.—(1) Where in the course of a proceeding before any statutory** authority an issue is raised by any party that any decision which such statutory authority has taken or proposes to take, is or would be, contrary to any of the provisions of this Act, then such statutory authority may make a reference in respect of such issue to the Commission: 1[Provided that any statutory authority, may, suo motu, make a reference to the Commission on any issue that involves any provision of this Act or is related to promoting the objectives of this Act, as the case may be.] 2[(2) On receipt of a reference under sub-section (1), the Commission shall give its opinion, within sixty days of receipt of such reference, to such statutory authority which shall consider the opinion of the Commission and thereafter, give its findings recording reasons therefor on the issues referred to in the said opinion.] **3[21A. Reference by Commission.—(1) Where in the course of a proceeding before the Commission** an issue is raised by any party that any decision which, the Commission has taken during such proceeding or proposes to take, is or would be contrary to any provision of [4][an Act] whose implementation is entrusted to a statutory authority, then the Commission may make a reference in respect of such issue to the statutory authority: 5[Provided that the Commission, may, _suo motu, make a reference to a statutory authority on any_ issue that involves provisions of an Act whose implementation is entrusted to that statutory authority.] (2) On receipt of a reference under sub-section (1), the statutory authority shall give its opinion, within sixty days of receipt of such reference, to the Commission which shall consider the opinion of the statutory authority, and thereafter give its findings recording reasons therefor on the issues referred to in the said opinion.] **6[22. Meetings of Commission.—(1) The Commission shall meet at such times and such places, and** shall observe such rules of procedure in regard to the transaction of business at its meetings as may be provided by regulations. (2) The Chairperson, if for any reason, is unable to attend a meeting of the Commission, the senior-most Member present at the meeting, shall preside at the meeting. 1. Subs. by Act 9 of 2023, s. 16, for the proviso (w.e.f. 18-5-2023). 2. Subs. by Act 39 of 2007, s. 15, for sub-section (2) (w.e.f. 20-5-2009). 3. Ins. by s. 16, ibid. (w.e.f. 20-5-2009). 4. Subs. by Act 9 of 2023, s. 17, for “this Act” (w.e.f. 18-5-2023). 5. Subs. by s. 17, ibid., for the proviso (w.e.f. 18-5-2023). 6. Subs. by Act 39 of 2007, s. 17, for section 22 (w.e.f. 12-10-2007). ----- (3) All questions which come up before any meeting of the Commission shall be decided by a majority of the Members present and voting, [1]***: Provided that the quorum for such meeting shall be three Members.] **23. [Distribution of business of Commission amongst Benches.]** _Omitted by the Competition_ (Amendment) Act, 2007 (39 of 2007), s. 18 (w.e.f. 12-10-2007)]. **24. [Procedure for deciding a case where Members of a Bench differ.]** _Omitted by s. 18,_ _ibid._ (w.e.f. 12-10-2007)]. **25. [Jurisdiction of Bench.]** _Omitted by s. 18, ibid. (w.e.f. 12-10-2007)]._ 2[26. Procedure for inquiry under section 19.—(1) On receipt of a reference from the Central Government or a State Government or a statutory authority or on its own knowledge or information received under section 19, if the Commission is of the opinion that there exists a prima facie case, it shall direct the Director General to cause an investigation to be made into the matter: Provided that if the subject matter of an information received is, in the opinion of the Commission, substantially the same as or has been covered by any previous information received, then the new information may be clubbed with the previous information. (2) Where on receipt of a reference from the Central Government or a State Government or a statutory authority or information received under section 19, the Commission is of the opinion that there exists no prima facie case, it shall close the matter forthwith and pass such orders as it deems fit and send a copy of its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be. 3[(2A) The Commission may not inquire into agreement referred to in section 3 or conduct of an enterprise or group under section 4, if the same or substantially the same facts and issues raised in the information received under section 19 or reference from the Central Government or a State Government or a statutory authority has already been decided by the Commission in its previous order.] (3) The Director General shall, on receipt of direction under sub-section (1), submit a report on his findings within such period as may be specified by the Commission. 3[(3A) If, after consideration of the report of the Director General referred to in sub-section (3), the Commission is of the opinion that further investigation is required, it may direct the Director General to investigate further into the matter. (3B) The Director General shall, on receipt of direction under sub-section (3A), investigate the matter and submit a supplementary report on his findings within such period as may be specified by the Commission.] (4) The Commission may forward a copy of the report referred to in [4][sub-sections (3) and (3B)] to the parties concerned: Provided that in case the investigation is caused to be made based on reference received from the Central Government or the State Government or the statutory authority, the Commission shall forward a copy of the report referred to in [4][sub-sections (3) and (3B)] to the Central Government or the State Government or the statutory authority, as the case may be. (5) If the report of the Director General referred to in [4][sub-sections (3) and (3B)] recommends that there is no contravention of the provisions of this Act, the Commission shall invite objections or suggestions from the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be, on such report of the Director General. (6) If, after consideration of the objections or suggestions referred to in sub-section (5), if any, the Commission agrees with the recommendation of the Director General, it shall close the matter forthwith and pass such orders as it deems fit and communicate its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be. 1. The words “and in the event of equality of votes, the Chairperson or in his absence, the Member presiding, shall have a second or casting vote” omitted by Act 9 of 2023, s. 18 (w.e.f. 18-5-2023). 2. Subs. by Act 39 of 2007, s. 19, for section 26 (w.e.f. 20-5-2009). 3. Ins. by Act 9 of 2023, s. 19 (w.e.f. 18-5-2023). 4. Subs. by s. 19, ibid., for “sub-section (3)” (w.e.f. 18-5-2023). ----- (7) If, after consideration of the objections or suggestions referred to in sub-section (5), if any, the Commission is of the opinion that further investigation is called for, it may direct further investigation in the matter by the Director General or cause further inquiry to be made in the matter or itself proceed with further inquiry in the matter in accordance with the provisions of this Act. (8) If the report of the Director General referred to in [1][sub-sections (3) and (3B)] recommends that there is contravention of any of the provisions of this Act, and the Commission is of the opinion that further inquiry is called for, it shall inquire into such contravention in accordance with the provisions of this Act.] 2[(9) Upon completion of the investigation or inquiry under sub-section (7) or sub-section (8), as the case may be, the Commission may pass an order closing the matter or pass an order under section 27, and send a copy of its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be: Provided that before passing such order, the Commission shall issue a show-cause notice indicating the contraventions alleged to have been committed and such other details as may be specified by regulations and give a reasonable opportunity of being heard to the parties concerned.] **27. Orders by Commission after inquiry into agreements or abuse of dominant position.—** Where after inquiry the Commission finds that any agreement referred to in section 3 or action of an enterprise in a dominant position, is in contravention of section 3 or section 4, as the case may be, it may pass all or any of the following orders, namely:— (a) direct any enterprise or association of enterprises or person or association of persons, as the case may be, involved in such agreement, or abuse of dominant position, to discontinue and not to re-enter such agreement or discontinue such abuse of dominant position, as the case may be; 3[(b) impose such penalty, as it may deem fit which shall be not more than ten per cent. of the average of the turnover or income, as the case may be, for the last three preceding financial years, upon each of such person or enterprise which is a party to such agreement or has abused its dominant position: Provided that in case any agreement referred to in section 3 has been entered into by a cartel, the Commission may impose upon each producer, seller, distributor, trader or service provider included in that cartel, a penalty of up to three times of its profit for each year of the continuance of such agreement or ten per cent. of its turnover or income, as the case may be, for each year of the continuance of such agreement, whichever is higher. _Explanation_ 1.—For the purposes of this clause, the expression “turnover” or “income”, as the case may be, shall be determined in such manner as may be specified by regulations. _Explanation 2.—For the purposes of this clause, “turnover” means global turnover derived from_ all the products and services by a person or an enterprise.] 4* - - - (d) direct that the agreements shall stand modified to the extent and in the manner as may be specified in the order by the Commission; (e) direct the enterprises concerned to abide by such other orders as the Commission may pass and comply with the directions, including payment of costs, if any; 5* - - - (g) pass such other [6][order or issue such directions] as it may deem fit: 7[Provided that while passing orders under this section, if the Commission comes to a finding, that an enterprise in contravention to section 3 or section 4 of the Act is a member of a group as 1. Subs. by Act 9 of 2023, s. 19, for “sub-section (3)” (w.e.f. 18-5-2023). 2. Ins. by s. 19, ibid. (w.e.f. 19-9-2024). 3. Subs. by s. 20, ibid., for clause (b) (w.e.f. 6-3-2024). 4. Clause (c) omitted by Act 39 of 2007, s. 20, (w.e.f. 20-5-2009). 5. Clause (f) omitted by s. 20, ibid. (w.e.f. 20-5-2009). 6. Subs. by s. 20, ibid., for “order” (w.e.f. 20-5-2009). 7. Ins. by s. 20, ibid. (w.e.f. 20-5-2009). ----- defined in clause (b) of the Explanation to section 5 of the Act, and other members of such a group are also responsible for, or have contributed to, such a contravention, then it may pass orders, under this section, against such members of the group.] **28. Division of enterprise enjoying dominant position.—(1) The** 1[Commission] may, notwithstanding anything contained in any other law for the time being in force, by order in writing, direct division of an enterprise enjoying dominant position to ensure that such enterprise does not abuse its dominant position. (2) In particular, and without prejudice to the generality of the foregoing powers, the order referred to in sub-section (1) may provide for all or any of the following matters, namely:— (a) the transfer or vesting of property, rights, liabilities or obligations; (b) the adjustment of contracts either by discharge or reduction of any liability or obligation or otherwise; (c) the creation, allotment, surrender or cancellation of any shares, stocks or securities; 2* - - - (e) the formation or winding up of an enterprise or the amendment of the memorandum of association or articles of association or any other instruments regulating the business of any enterprise; (f) the extent to which, and the circumstances in which, provisions of the order affecting an enterprise may be altered by the enterprise and the registration thereof; (g) any other matter which may be necessary to give effect to the division of the enterprise. (3) Notwithstanding anything contained in any other law for the time being in force or in any contract or in any memorandum or articles of association, an officer of a company who ceases to hold office as such in consequence of the division of an enterprise shall not be entitled to claim any compensation for such cesser. **29. Procedure for investigation of combinations.—(1) Where the Commission is of the** [3][prima _facie] opinion that a combination is likely to cause, or has caused an appreciable adverse effect on_ competition within the relevant market in India, it shall issue a notice to show cause to the parties to combination calling upon them to respond [4][within fifteen days] of the receipt of the notice, as to why investigation in respect of such combination should not be conducted. [3][(1A) After receipt of the response of the parties to the combination under sub-section (1), the Commission may call for a report from the Director General and such report shall be submitted by the Director General within such time as the Commission may direct.] 5[(1B) The Commission shall, within thirty days of receipt of notice under sub-section (2) of section 6, form its prima facie opinion referred to in sub-section (1).] (2) The Commission, if it is prima facie of the opinion that the combination has, or is likely to have, an appreciable adverse effect on competition, it shall, [6][within seven days] from the date of receipt of the response of the parties to the combination, [3][or the receipt of the report from Director General called under sub section (1A), whichever is later] direct the parties to the said combination to publish details of the combination [7][within seven days] of such direction, in such manner, as it thinks appropriate, for bringing the combination to the knowledge or information of the public and persons affected or likely to be affected by such combination. 1. Subs. by Act 39 of 2007, s. 21, for “Central Government, on recommendation under clause (f) of section 27” (w.e.f. 20-5-2009). 2. Clause (d) omitted by s. 21, ibid. (w.e.f. 20-5-2009). 3. Ins. by s. 22, ibid. (w.e.f. 20-5-2009). 4. Subs. by Act 9 of 2023, s. 21, for “within thirty days” (w.e.f. 10-9-2024). 5. Ins. by s. 21, ibid. (w.e.f. 10-9-2024). 6. Subs. by s. 21, ibid., for “within seven working days” (w.e.f. 10-9-2024). 7. Subs. by s. 21, ibid., for “within ten working days” (w.e.f. 10-9-2024). ----- (3) The Commission may invite any person or member of the public, affected or likely to be affected by the said combination, to file his written objections, if any, before the Commission [1][within ten days] from the date on which the details of the combination were published under sub-section (2). (4) The Commission may, [2][within seven days] from the expiry of the period specified in sub-section (3), call for such additional or other information as it may deem fit from the parties to the said combination. (5) The additional or other information called for by the Commission shall be furnished by the parties referred to in sub-section (4) [3][within ten days] from the expiry of the period specified in sub-section (4). 4[(6) After receipt of all information, the Commission shall proceed to deal with the case in accordance with the provisions contained in section 29A or section 31, as the case may be. (7) Notwithstanding anything contained in this section, the Commission may accept appropriate modifications offered by the parties to the combination or _suo motu_ propose modifications, as the case may be, before forming a prima facie opinion under sub-section (1).] 5[29A. Issue of statement of objections by Commission and proposal of modifications.—(1) Upon completion of the process under section 29, where the Commission is of the opinion that the combination has, or is likely to have, an appreciable adverse effect on competition, it shall issue a statement of objections to the parties identifying such appreciable adverse effect on competition and direct the parties to explain within twenty-five days of receipt of the statement of objections, why such combination should be allowed to take effect. (2) Where the parties to the combination consider that such appreciable adverse effect on competition can be eliminated by suitable modification to such combination, they may submit an offer of appropriate modification to the combination along with their explanation to the statement of objections issued under sub-section (1) in such manner as may be specified by regulations. (3) If the Commission does not accept the modification submitted by the parties under sub-section (2) it shall, within seven days from the date of receipt of the proposed modifications under that sub-section, communicate to the parties as to why the modification is not sufficient to eliminate the appreciable adverse effect on competition and call upon the parties to furnish, within twelve days of the receipt of the said communication, revised modification, if any, to eliminate the appreciable adverse effects on competition: Provided that the Commission shall evaluate such proposal for modification within twelve days from receipt of such proposal: Provided further that the Commission may _suo motu_ propose appropriate modifications to the combination which may be considered by the parties to the combination.] **6[30. Procedure in case of notice under sub-section (2) of section 6.—Where any person or** enterprise has given a notice under sub-section (2) of section 6, the Commission shall examine such notice and form its prima facie opinion as provided in sub-section (1) of section 29 and proceed as per provisions contained in that section.] **31. Orders of Commission on** **[7]*** combinations.—(1) Where the Commission is of the opinion** that any combination does not, or is not likely to, have an appreciable adverse effect on competition, it shall, by order, approve that combination [8]*** in respect of which a notice has been given under subsection (2) of section 6. 1. Subs. by Act 9 of 2023, s. 21, for “within fifteen working days” (w.e.f. 10-9-2024). 2. Subs. by s. 21, ibid., for “within fifteen working days” (w.e.f. 10-9-2024). 3. Subs. by s. 21, ibid., for “within fifteen days” (w.e.f. 10-9-2024). 4. Subs. by s. 21, ibid., for sub-section (6) (w.e.f. 10-9-2024). 5. Ins. by s. 22, ibid., (w.e.f. 10-9-2024). 6. Subs. by Act 39 of 2007, s. 23, for section 30 (w.e.f. 1-6-2011). 7. The word “certain” omitted by Act 9 of 2023, s. 23 (w.e.f. 10-9-2024). 8. The words “including the combination” omitted by s. 23, ibid., (w.e.f. 10-9-2024). ----- 1[ Provided that if the Commission does not form a prima facie opinion as provided under sub-section (1B) of section 29, the combination shall be deemed to have been approved and no separate order shall be required to be passed.] (2) Where the Commission is of the opinion that the combination has, or is likely to have, an appreciable adverse effect on competition, it shall direct that the combination shall not take effect. 2[(3) Where the Commission is of the opinion that any appreciable adverse effect on competition that the combination has, or is likely to have, can be eliminated by modification proposed by the parties or the Commission, as the case may be, under sub-section (7) of section 29 or sub-section (2) or sub-section (3) of section 29A, it may approve the combination subject to such modifications as it thinks fit. (4) Where a combination is approved by the Commission under sub-section (3), the parties to the combination shall carry out such modification within such period as may be specified by the Commission. (5) Where— (a) the Commission has directed under sub-section (2) that the combination shall not take effect; or (b) the parties to the combination, fail to carry out the modification within such period as may be specified by the Commission under sub-section (4); or (c) the Commission is of the opinion that the combination has, or is likely to have, an appreciable adverse effect on competition which cannot be eliminated by suitable modification to such combination, then, without prejudice to any penalty which may be imposed or any prosecution which may be initiated under this Act, the Commission may order that such combination shall not be given effect to, or be declared void, or frame a scheme to be implemented by the parties to address the appreciable adverse effect on competition, as the case may be. (6) If no order is passed or direction issued by the Commission in accordance with the provisions of sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), as the case may be, within a period of one hundred and fifty days from the date of notice given to the Commission under sub-section (2) of section 6, the combination shall be deemed to have been approved by the Commission.] 3* - - - (13) Where the Commission has ordered a combination to be void, the acquisition or acquiring of control or merger or amalgamation referred to in section 5, shall be dealt with by the authorities under any other law for the time being in force as if such acquisition or acquiring of control or merger or amalgamation had not taken place and the parties to the combination shall be dealt with accordingly. (14) Nothing contained in this Chapter shall affect any proceeding initiated or which may be initiated under any other law for the time being in force. **32. Acts taking place outside India but having an effect on competition in India.—The** Commission shall, notwithstanding that,— (a) an agreement referred to in section 3 has been entered into outside India; or (b) any party to such agreement is outside India; or (c) any enterprise abusing the dominant position is outside India; or (d) a combination has taken place outside India; or (e) any party to combination is outside India; or 1. Ins. by Act 9 of 2023, s. 23, (w.e.f. 10-9-2024). 2. Subs. by s. 23, ibid., for sub-sections (3), (4), (5) and (6) (w.e.f. 10-9-2024). 3. Sub-sections (7), (8), (9), (10), (11) and (12) omitted by s. 23, ibid., (w.e.f. 10-9-2024). ----- (f) any other matter or practice or action arising out of such agreement or dominant position or combination is outside India, have power to inquire [1][in accordance with the provisions contained in sections 19, 20, 26, [2][29, 29A and 30] of the Act] into such agreement or abuse of dominant position or combination if such agreement or dominant position or combination has, or is likely to have, an appreciable adverse effect on competition in the relevant market in India [1][and pass such orders as it may deem fit in accordance with the provisions of this Act]. 3[33. Power to issue interim orders.—Where during an inquiry, the Commission is satisfied that an act in contravention of sub-section (1) of section 3 or sub-section (1) of section 4 or section 6 has been committed and continues to be committed or that such act is about to be committed, the Commission may, by order, temporarily restrain any party from carrying on such act until the conclusion of such inquiry or until further orders, without giving notice to such party, where it deems it necessary.] **34. [Power to award compensation.]** _Omitted by the Competition (Amendment) Act, 2007 (39_ _of_ 2007), s. 27 (w.e.f. 12-10-2007). **35. Appearance before Commission.—[4][1] [5][A party] or the Director General may either appear in** person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of his or its officers to present his or its case before the Commission. _Explanation.—For the purposes of this section,—_ (a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (b) “company secretary” means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (c) “cost accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (d) “legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice. 6[(2) Without prejudice to sub-section (1), a party may call upon experts from the fields of economics, commerce, international trade or from any other discipline to provide an expert opinion in connection with any matter related to a case.] **7[36. Power of Commission to regulate its own procedure.—(1) In the discharge of its functions,** the Commission shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules made by the Central Government, the Commission shall have the powers to regulate its own procedure. (2) The Commission shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavit; 1. Ins. by Act 39 of 2007, s. 25, (w.e.f. 20-5-2009). 2. Subs. by Act 9 of 2023, s. 24, for “29 and 30” (w.e.f. 10-9-2024). 3. Subs. by s. 26, ibid., for section 33 (w.e.f. 20-5-2009). 4. Section 35 shall be numbered as sub-section (1) thereof by Act 9 of 2023, s. 25 (w.e.f. 18-5-2023). 5. Subs. by s. 25, ibid., for “A person or an enterprise” (w.e.f. 18-5-2023). 6. Ins. by s. 25, ibid. (w.e.f. 18-5-2023). 7. Subs. by Act 39 of 2007, s. 29, for section 36 (w.e.f. 12-10-2007). ----- (d) issuing commissions for the examination of witnesses or documents; (e) requisitioning, subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), any public record or document or copy of such record or document from any office. (3) The Commission may call upon such experts, from the fields of economics, commerce, accountancy, international trade or from any other discipline as it deems necessary, to assist the Commission in the conduct of any inquiry by it. (4) The Commission may direct any person— (a) to produce before the Director General or the Secretary or an officer authorised by it, such books or other documents in the custody or under the control of such person so directed as may be specified or described in the direction, being documents relating to any trade, the examination of which may be required for the purposes of this Act; (b) to furnish to the Director General or the Secretary or any other officer authorised by it, as respects the trade or such other information as may be in his possession in relation to the trade carried on by such person as may be required for the purposes of this Act.] **37. [Review of orders of Commission.]** _Omitted by the Competition (Amendment)_ _Act, 2007 (39_ _of_ 2007), s. 30 (w.e.f. 12-10-2007). **38. Rectification of orders.—(1) With a view to rectifying any mistake apparent from the record, the** Commission may amend any order passed by it under the provisions of this Act. (2) Subject to the other provisions of this Act, the Commission may make— (a) an amendment under sub-section (1) of its own motion; (b) an amendment for rectifying any such mistake which has been brought to its notice by any party to the order. _Explanation.—For the removal of doubts, it is hereby declared that the Commission shall not,_ while rectifying any mistake apparent from record, amend substantive part of its order passed under the provisions of this Act. **1[39. Execution of orders of Commission imposing monetary penalty.—(1) If a person fails to pay** any monetary penalty imposed on him under this Act, the Commission shall proceed to recover such penalty in such manner as may be specified by the regulations. (2) In a case where the Commission is of the opinion that it would be expedient to recover the penalty imposed under this Act in accordance with the provisions of the Income-tax Act, 1961 (43 of 1961), it may make a reference to this effect to the concerned income-tax authority under that Act for recovery of the penalty as tax due under the said Act. (3) Where a reference has been made by the Commission under sub-section (2) for recovery of penalty, the person upon whom the penalty has been imposed shall be deemed to be the assessee in default under the Income-tax Act, 1961 (43 of 1961) and the provisions contained in sections 221 to 227, 228A, 229, 231 and 232 of the said Act and the Second Schedule to that Act and any rules made there under shall, in so far as may be, apply as if the said provisions were the provisions of this Act and referred to sums by way of penalty imposed under this Act instead of to income- tax and sums imposed by way of penalty, fine and interest under the Income–tax Act, 1961 and to the Commission instead of the Assessing Officer. _Explanation_ _1.—Any reference to sub-section (2) or sub-section (6) of section 220 of the Income-tax_ Act, 1961 (43 of 1961), in the said provisions of that Act or the rules made thereunder shall be construed as references to sections 43 to 45 of this Act. _Explanation 2.—The Tax Recovery Commissioner and the Tax Recovery Officer referred to in the_ Income-tax Act, 1961 (43 of 1961) shall be deemed to be the Tax Recovery Commissioner and the Tax Recovery Officer for the purposes of recovery of sums imposed by way of penalty under this Act and 1. Subs. by Act 39 of 2007, s. 31, for section 39 (w.e.f. 20-5-2009). ----- reference made by the Commission under sub-section (2) would amount to drawing of a certificate by the Tax Recovery Officer as far as demand relating to penalty under this Act. _Explanation 3.—Any reference to appeal in Chapter XVIID and the Second Schedule to the_ Income-tax Act, 1961 (43 of 1961), shall be construed as a reference to appeal before the Competition Appellate Tribunal under section 53B of this Act.] **40. [Appeal.]—Omitted by the Competition (Amendment)** _Act, 2007 (39_ _of 2007),_ _s. 32_ (w.e.f. 12-10-2007) CHAPTER V DUTIES OF DIRECTOR GENERAL **41. Director General to investigate contraventions.—(1) The Director General shall, when so** directed by the Commission, assist the Commission in investigating into any contravention of the provisions of this Act or any rules or regulations made thereunder. (2) The Director General shall have all the powers as are conferred upon the Commission under sub-section (2) of section 36. 1[(3) Without prejudice to sub-section (2), it shall be the duty of all officers, other employees and agents of a party which are under investigation— (a) to preserve and to produce all information, books, papers, other documents and records of, or relating to, the party which are in their custody or power to the Director General or any person authorised by it in this behalf; and (b) to give all assistance in connection with the investigation to the Director General. (4) The Director General may require any person other than a party referred to in sub-section (3) to furnish such information or produce such books, papers, other documents or records before it or any person authorised by it in this behalf if furnishing of such information or the production of such books, papers, other documents or records is relevant or necessary for the purposes of its investigation. (5) The Director General may keep in his custody any information, books, papers, other documents or records produced under sub-section (3) or sub-section (4) for a period of one hundred and eighty days and thereafter shall return the same to the person by whom or on whose behalf the information, books, papers, other documents or records were produced: Provided that the information, books, papers, other documents or records may be called for by the Director General if they are needed again for a further period of one hundred and eighty days by an order in writing: Provided further that the certified copies of the information, books, papers, other documents or records, as may be applicable, produced before the Director General may be provided to the party or person on whose behalf the information, books, papers, other documents or records are produced at their own cost. (6) The Director General may examine on oath— (a) any of the officers and other employees and agents of the party being investigated; and (b) with the previous approval of the Commission, any other person, in relation to the affairs of the party being investigated and may administer an oath accordingly and for that purpose may require any of those persons to appear before it personally. (7) The examination under sub-section (6) shall be recorded in writing and shall be read over to or by, and signed by, the person examined and may thereafter be used in evidence against it. (8) Where in the course of investigation, the Director General has reasonable grounds to believe that information, books, papers, other documents or records of, or relating to, any party or person, may be destroyed, mutilated, altered, falsified or secreted, the Director General may make an application to the 1. Subs. by Act 9 of 2023, s. 26, for sub-section (3) (w.e.f. 18-5-2023). ----- Chief Metropolitan Magistrate, Delhi for an order for seizure of such information, books, papers, other documents or records. (9) The Director General may make requisition of the services of any police officer or any officer of the Central Government to assist him for all or any of the purposes specified in sub-section (10) and it shall be the duty of every such officer to comply with such requisition. (10) The Chief Metropolitan Magistrate, Delhi may, after considering the application and hearing from the Director General, by order, authorise the Director General— (a) to enter, with such assistance, as may be required, the place or places where such information, books, papers, other documents or records are kept; (b) to search that place or places in the manner specified in the order; and (c) to seize information, books, papers, other documents or records as it considers necessary for the purpose of the investigation: Provided that certified copies of the seized information, books, papers, other documents or records, as the case may be, may be provided to the party or person from whose place or places such documents have been seized at its cost. (11) The Director General shall keep in his custody such information, books, papers, other documents or records seized under this section for such period not later than the conclusion of the investigation as it considers necessary and thereafter shall return the same to the party or person from whose custody or power they were seized and inform the Chief Metropolitan Magistrate, of such return: Provided that the Director General may, before returning such information, books, papers, other documents or records take copies of, or extracts thereof or place identification marks on them or any part thereof. (12) Save as otherwise provided in this section, every search or seizure made under this section shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to search or seizure made under that Code.] 1[Explanation.—For the purposes of this section,— (a) “agent”, in relation to any person, means any one acting or purporting to act for or on behalf of such person, and includes the bankers, and persons employed as auditors and legal advisors, by such person; (b) “officers”, in relation to any company or body corporate, includes any trustee for the debenture holders of such company or body corporate; (c) any reference to officers and other employees or agents shall be construed as a reference to past as well as present officers and other employees or agents, as the case may be.] CHAPTER VI PENALTIES 2[42. Contravention of orders of Commission.—(1) The Commission may cause an inquiry to be made into compliance of its orders or directions made in exercise of its powers under the Act. (2) If any person, without reasonable clause, fails to comply with the orders or directions of the Commission issued under [3][sections 6, 27, 28, 31, 32, 33, 42A, 43, 43A, 44 and 45 of the Act, he shall be liable to a penalty] which may extend to rupees one lakh for each day during which such non-compliance occurs, subject to a maximum of rupees ten crore, as the Commission may determine. (3) If any person does not comply with the orders or directions issued, or fails to [4][pay the penalty imposed under sub-section (2)], he shall, without prejudice to any proceeding under section 39, be 1. Subs. by Act 9 of 2023, s. 26, for Explanation (w.e.f. 18-5-2023). 2. Subs. by Act 39 of 2007, s. 34, for section 42 (w.e.f. 20-5-2009). 3. Subs. by Act 9 of 2023, s. 27, for “sections 27, 28, 31, 32, 33, 42A and 43A of the Act, he shall be punishable with fine” (w.e.f. 18-5-2023). 4. Subs. by s. 27, ibid., for “pay the fine imposed under sub-section (2)” (w.e.f. 18-5-2023). ----- punishable with imprisonment for a term which may extend to three years, or with fine which may extend to rupees twenty-five crore, or with both, as the Chief Metropolitan Magistrate, Delhi may deem fit: Provided that the Chief Metropolitan Magistrate, Delhi shall not take cognizance of any offence under this section save on a complaint filed by the Commission or any of its officers authorised by it.] 1[42A. Compensation in case of contravention of orders of Commission.—Without prejudice to the provisions of this Act, any person may make an application to the Appellate Tribunal for an order for the recovery of compensation from any enterprise for any loss or damage shown to have been suffered, by such person as a result of the said enterprise violating directions issued by the Commission or contravening, without any reasonable ground, any decision or order of the Commission issued [2][under sections 6, 27], 28, 31, 32 and 33 or any condition or restriction subject to which any approval, sanction, direction or exemption in relation to any matter has been accorded, given, made or granted under this Act or delaying in carrying out such orders or directions of the Commission.] 3[43. Penalty for failure to comply with directions of Commission and Director General.—If any person fails to comply, without reasonable cause, with a direction given by— (a) the Commission under sub-sections (2) and (4) of section 36; or (b) the Director General while exercising powers referred to in sub-section (2) of section 41, such person [4][shall be liable to a penalty] which may extend to rupees one lakh for each day during which such failure continues subject to a maximum of rupees one crore, as may be determined by the Commission.] 5[43A. Power to impose penalty for non-furnishing of information on combination.—If any person or enterprise fails to give notice to the Commission under sub-section (2) or sub-section (4) of section 6 or contravenes sub-section (2A) of section 6 or submit information pursuant to an inquiry under sub-section (1) of section 20, the Commission may impose on such person or enterprise, a penalty which may extend to one per cent., of the total turnover or assets or the value of transaction referred to in clause (d) of section 5, whichever is higher, of such a combination: Provided that in case any person or enterprise has given a notice under sub-section (4) of section 6 and such notice is found to be void _ab initio_ under sub-section (6) of section 6, then a notice under sub-section (2) of section 6 may be given by the acquirer or parties to the combination, as may be applicable, within a period of thirty days of the order of the Commission under sub-section (6) of that section and no action under this section shall be taken by the Commission till the expiry of such period of thirty days.] **44. Penalty for making false statement or omission to furnish material information.—If any** person, being a party to a combination,— (a) makes a statement which is false in any material particular, or knowing it to be false; or (b) omits to state any material particular knowing it to be material, such person shall be liable to a penalty which shall not be less than rupees fifty lakhs but which may extend to [6][rupees five crore], as may be determined by the Commission. **45. Penalty for** **[7][contraventions] in relation to furnishing of information.—[8][(1) Without** prejudice to the provisions of [9][sub-section (6) of section 6 and] section 44, if a person, who furnishes or is required to furnish under this Act any particulars, documents or any information,— (a) makes any statement or furnishes any document which he knows or has reason to believe to be false in any material particular; or 1. Ins. by Act 39 of 2007, s. 35 (w.e.f. 20-5-2009). 2. Subs. by Act 9 of 2023, s. 28, for “under sections 27” (w.e.f. 10-9-2024). 3. Subs. by Act 39 of 2007, s. 36, ibid., for section 43 (w.e.f. 20-5-2009). 4. Subs. by Act 9 of 2023, s. 29, for “shall be punishable with fine” (w.e.f. 18-5-2023). 5. Subs. by s. 30, ibid., for section 43A (w.e.f. 10-9-2024). 6. Subs. by s. 31, ibid., for “rupees one crore” (w.e.f. 18-5-2023). 7. Subs. by s. 32, ibid., for “offences” (w.e.f. 18-5-2023). 8. Subs. by Act 39 of 2007, s. 38, for sub-section (1) (w.e.f. 20-5-2009). 9. Ins. by Act 9 of 2023, s. 32 (w.e.f. 18-5-2023). ----- (b) omits to state any material fact knowing it to be material; or (c) wilfully alters, suppresses or destroys any document which is required to be furnished as aforesaid, such person shall be [1][liable to a penalty] which may extend to rupees one crore as may be determined by the Commission.] (2) Without prejudice to the provisions of sub-section (1), the Commission may also pass such other order as it deems fit. **2[46. Power to impose lesser penalty.—** (1) The Commission may, if it is satisfied that any producer, seller, distributor, trader or service provider included in any cartel, which is alleged to have violated section 3, has made a full and true disclosure in respect of the alleged violations and such disclosure is vital, impose upon such producer, seller, distributor, trader or service provider a lesser penalty as may be specified by regulations, than leviable under this Act or the rules or the regulations made under this Act: Provided that lesser penalty shall not be imposed by the Commission in cases where the report of investigation directed under section 26 has been received before making of such disclosure: Provided further that lesser penalty shall be imposed by the Commission only in respect of a producer, seller, distributor, trader or service provider included in the cartel, who has made the full, true and vital disclosures under this section: Provided also that lesser penalty shall not be imposed by the Commission if the person making the disclosure does not continue to co-operate with the Commission till the completion of the proceedings before the Commission: Provided also that the Commission may, if it is satisfied that such producer, seller, distributor, trader or service provider included in the cartel had in the course of proceedings,— (a) not complied with the condition on which the lesser penalty was imposed by the Commission; or (b) had given false evidence; or (c) the disclosure made is not vital, and thereupon such producer, seller, distributor, trader or service provider may be tried for the contravention with respect to which the lesser penalty was imposed and shall also be liable to the imposition of penalty to which such person has been liable, had lesser penalty not been imposed. (2) The Commission may allow a producer, seller, distributor, trader or service provider included in the cartel, to withdraw its application for lesser penalty under this section, in such manner and within such time as may be specified by regulations. (3) Notwithstanding anything contained in sub-section (2), the Director General and the Commission shall be entitled to use for the purposes of this Act, any evidence submitted by a producer, seller, distributor, trader or service provider in its application for lesser penalty, except its admission (4) Where during the course of the investigation, a producer, seller, distributor, trader or service provider who has disclosed a cartel under sub-section (1), makes a full, true and vital disclosure under sub-section (1) with respect to another cartel in which it is alleged to have violated section 3, which enables the Commission to form a prima facie opinion under sub-section (1) of section 26 that there exists another cartel, then the Commission may impose upon such producer, seller, distributor, trader or service provider a lesser penalty as may be specified by regulations, in respect of the cartel already being investigated, without prejudice to the producer, seller, distributor, trader or service provider obtaining lesser penalty under sub-section (1) regarding the newly disclosed cartel.] **47. Crediting sums realised by way of penalties to Consolidated Fund of India.—All sums** realised by way of penalties [3][and recovery of legal costs by the Commission] under this Act shall be credited to the Consolidated Fund of India. 1. Subs. by Act 9 of 2023, s. 32, for “punishable with fine” (w.e.f. 18-5-2023). 2. Subs. by s. 33, ibid, for section 46 (w.e.f. 20-2-2024). 3. Ins. by s. 34, ibid., (w.e.f. 10-9-2024). ----- **1[48. Contravention by companies.— (1) Where a person committing contravention of any of the** provisions of this Act or of any rule, regulation, order made or direction issued thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be in contravention of this Act and unless otherwise provided in this Act, the Commission may impose such penalty on such persons, as it may deem fit which shall not be more than ten per cent. of the average of the income for the last three preceding financial years: Provided that in case any agreement referred to in sub-section (3) of section 3 has been entered into by a cartel, the Commission may unless otherwise provided in this Act, impose upon such persons referred to in sub-section (1), a penalty of up to ten per cent. of the income for each year of the continuance of such agreement. (2) Nothing contained in sub-section (1) shall render any such person liable to any penalty if he proves that the contravention was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such contravention. (3) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, regulation, order made or direction issued thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officers of the company, such director, manager, secretary or other officers shall also be deemed to be in contravention of the provisions of this Act and unless otherwise provided in this Act, the Commission may impose such penalty on such persons, as it may deem fit which shall not be more than ten per cent. of the average of the income for the last three preceding financial years: Provided that in case any agreement referred to in sub-section (3) of section 3 has been entered into by a cartel, the Commission may, unless otherwise provided under this Act, impose upon such person a penalty as it may deem fit which shall not exceed ten per cent. of the income for each year of the continuance of such agreement. _Explanation.—For the purposes of this section,—_ (a) “company” means a body corporate and includes a firm or other association of individuals; (b) “director”, in relation to a firm, means a partner in the firm; (c) “income”, in relation to a person, shall be determined in such manner as may be specified by regulations. **48A. Settlement.—(1) Any enterprise, against whom any inquiry has been initiated under** sub-section (1) of section 26 for contravention of sub-section (4) of section 3 or section 4, may, for settlement of the proceeding initiated for the alleged contraventions, submit an application in writing to the Commission in such form and upon payment of such fee as may be specified by regulations. (2) An application under sub-section (1) may be submitted at any time after the receipt of the report of the Director General under sub-section (4) of section 26 but prior to such time before the passing of an order under section 27 or section 28 as may be specified by regulations. (3) The Commission may, after taking into consideration the nature, gravity and impact of the contraventions, agree to the proposal for settlement, on payment of such amount by the applicant or on such other terms and manner of implementation of settlement and monitoring as may be specified by regulations. (4) While considering the proposal for settlement, the Commission shall provide an opportunity to the party concerned, the Director General, or any other party to submit their objections and suggestions, if any. (5) If the Commission is of the opinion that the settlement offered under sub-section (1) is not appropriate in the circumstances or if the Commission and the party concerned do not reach an agreement 1. Subs. by Act 9 of 2023, s. 35, for section 48 (w.e.f. 6-3-2024). ----- on the terms of the settlement within such time as may be specified by regulations, it shall, by order, reject the settlement application and proceed with its inquiry under section 26. (6) The procedure for conducting the settlement proceedings under this section shall be such as may be specified by regulations. (7) No appeal shall lie under section 53B against any order passed by the Commission under this section. (8) All settlement amounts, realised under this Act shall be credited to the Consolidated Fund of India. **48B. Commitment.—(1) Any enterprise, against whom any inquiry has been initiated under sub-** section (1) of section 26 for contravention of sub-section (4) of section 3 or section 4, as the case may be, may submit an application in writing to the Commission, in such form and on payment of such fee as may be specified by regulations, offering commitments in respect of the alleged contraventions stated in the Commission's order under sub-section (1) of section 26. (2) An offer for commitments under sub-section (1) may be submitted at any time after an order under sub-section (1) of section 26 has been passed by the Commission but within such time prior to the receipt by the party of the report of the Director General under sub-section (4) of section 26 as may be specified by regulations. (3) The Commission may, after taking into consideration the nature, gravity and impact of the alleged contraventions and effectiveness of the proposed commitments, accept the commitments offered on such terms and the manner of implementation and monitoring as may be specified by regulations. (4) While considering the proposal for commitment, the Commission shall provide an opportunity to the party concerned, the Director General, or any other party to submit their objections and suggestions, if any. (5) If the Commission is of the opinion that the commitment offered under sub-section (1) is not appropriate in the circumstances or if the Commission and the party concerned do not reach an agreement on the terms of the commitment, it shall pass an order rejecting the commitment application and proceed with its inquiry under section 26 of the Act. (6) The procedure for commitments offered under this section shall be such as may be specified by regulations. (7) No appeal shall lie under section 53B against any order passed by the Commission under this section. **48C. Revocation of the settlement or commitment order and penalty.—If an applicant fails to** comply with the order passed under section 48A or section 48B or it comes to the notice of the Commission that the applicant has not made full and true disclosure or there has been a material change in the facts, the order passed under section 48A or section 48B, as the case may be, shall stand revoked and withdrawn and such enterprise shall be liable to pay legal costs incurred by the Commission which may extend to rupees one crore and the Commission may restore or initiate the inquiry in respect of which the order under section 48A or section 48B was passed.] CHAPTER VII COMPETITION ADVOCACY **49. Competition advocacy.—[1][(1) The Central Government may, in formulating a policy on** competition (including review of laws related to competition) or on any other matter, and a State Government may, in formulating a policy on competition or on any other matter, as the case may be, make a reference to the Commission for its opinion on possible effect of such policy on competition and on the receipt of such a reference, the Commission shall, within sixty days of making such reference, give its opinion to the Central Government, or the State Government, as the case may be, which may thereafter take further action as it deems fit.] 1. Subs. by Act 39 of 2007, s. 40, for sub-section (1) (w.e.f. 12-10-2007). ----- (2) The opinion given by the Commission under sub-section (1) shall not be binding upon the Central Government [1][or the State Government, as the case may be,] in formulating such policy. (3) The Commission shall take suitable measures [2]*** for the promotion of competition advocacy 3[or culture], creating awareness and imparting training about competition issues. CHAPTER VIII FINANCE, ACCOUNTS AND AUDIT **50. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, make to the Commission grants of such sums of money as the Government may think fit for being utilised for the purposes of this Act. **51. Constitution of Fund.—(1) There shall be constituted a fund to be called the “Competition** Fund” and there shall be credited thereto— (a) all Government grants received by the Commission; 4* - - - (c) the fees received under this Act; (d) the interest accrued on the amounts referred to in [5][clauses (a) and (c)]. 6[(e) all sums received by the Commission from such other sources as may be decided upon by the Government.] (2) The Fund shall be applied for meeting— (a) the salaries and allowances payable to the Chairperson and other Members and the administrative expenses including the salaries, allowances and pension payable to the Director General, Additional, Joint, Deputy or Assistant Directors General, the Registrar and officers and other employees of the Commission; (b) the other expenses of the Commission in connection with the discharge of its functions and for the purposes of this Act. (3) The Fund shall be administered by a committee of such Members of the Commission as may be determined by the Chairperson. (4) The committee appointed under sub-section (3) shall spend monies out of the Fund for carrying out the objects for which the Fund has been constituted. **52. Accounts and audit.—(1) The Commission shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Commission shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Commission to the Comptroller and Auditor-General of India. _Explanation.—For the removal of doubts, it is hereby declared that the orders of the Commission,_ being matters appealable to the [7][Appellate Tribunal or the Supreme Court], shall not be subject to audit under this section. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Commission shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India generally has, in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Commission. 1. Ins. by Act 39 of 2007, s. 40, (w.e.f. 12-10-2007). 2. The words “, as may be prescribed,” omitted by s. 40, ibid. (w.e.f. 12-10-2007). 3. Ins. by Act 9 of 2023, s. 36 (w.e.f. 18-5-2023). 4. Cl. (b) omitted by Act 39 of 2007, s. 41 (w.e.f. 12-10-2007). 5. Subs. by s. 41, ibid., for “clauses (a) to (c)” (w.e.f. 12-10-2007). 6. Ins. by Act 9 of 2023, s. 37 (w.e.f. 18-5-2023). 7. Subs. by Act 39 of 2007, s. 42, for “Supreme Court” (w.e.f. 12-10-2007). ----- (4) The accounts of the Commission as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **53. Furnishing of returns, etc., to Central Government.—(1) The Commission shall furnish to the** Central Government at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing measures for the promotion of competition advocacy, creating awareness and imparting training about competition issues, as the Central Government may, from time to time, require. (2) The Commission shall prepare once in every year, in such form and at such time as may be prescribed, an annual report giving a true and full account of its activities during the previous year and copies of the report shall be forwarded to the Central Government. (3) A copy of the report received under sub-section (2) shall be laid, as soon as may be after it is received, before each House of Parliament. 1[CHAPTER VIIIA 2[APPELLATE TRIBUNAL] **3[** **4[53A. Appellate Tribunal.—The National Company Law Appellate Tribunal constituted under** section 410 of the Companies Act, 2013 (18 of 2013) shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall— (a) hear and dispose of appeals against any direction issued or decision made or order passed by the Commission under [5][sub-section (6) of section 6, sub-sections (2), (2A), (6) and (9) of section 26], section 27, section 28, section 31, section 32, section 33, section 38, section 39, section 43, section 43A, section 44, section 45 or section 46 of this Act; and (b) adjudicate on claim for compensation that may arise from the findings of the Commission or the orders of the Appellate Tribunal in an appeal against any finding of the Commission or under section 42A or under sub-section (2) of section 53Q of this Act, and pass orders for the recovery of compensation under section 53N of this Act.] **653B. Appeal to Appellate Tribunal.—(1) The Central Government or the State Government or a** local authority or enterprise or any person, aggrieved by any direction, decision or order referred to in clause (a) of section 53A may prefer an appeal to the Appellate Tribunal. (2) Every appeal under sub-section (1) shall be filed within a period of sixty days from the date on which a copy of the direction or decision or order made by the Commission is received by the Central Government or the State Government or a local authority or enterprise or any person referred to in that sub-section and it shall be in such form and be accompanied by such fee as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of sixty days if it is satisfied that there was sufficient cause for not filing it within that period: 7[Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the Commission, shall be entertained by the Appellate Tribunal unless the appellant has deposited twenty-five per cent. of that amount in the manner as directed by the Appellate Tribunal.] (3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the direction, decision or order appealed against. 1. Ins. by Act 39 of 2007, s. 43, (w.e.f. 12-10-2007). 2. Subs. by Act 7 of 2017, s. 171, for the heading (w.e.f. 26-5-2017). 3. 12-10-2007, vide S.O. No. 1747(E), dated 12-10-2007. 4. Subs. by Act 7 of 2017, s. 171, for section 53A (w.e.f. 26-5-2017). 5. Subs. by Act 9 of 2023, s. 38, for “sub-sections (2) and (6) of section 26” (w.e.f. 10-9-2024). 6. 20-5-2009, vide S.O. No 1242(E), dated 15-5-2009. 7. Ins. by Act 9 of 2023, s. 39 (w.e.f. 18-5-2023). ----- (4) The Appellate Tribunal shall send a copy of every order made by it to the Commission and the parties to the appeal. (5) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal within six months from the date of receipt of the appeal. **153C.** [Composition of Appellate Tribunal.] _Omitted by the Finance Act,_ 2017 (7 of 2017), _s. 171_ (w.e.f. 26-5-2017). **253D. [Qualifications for appointment of Chairperson and Members of Appellate Tribunal.] Omitted** _by_ _s. 171, ibid. (w.e.f. 26-5-2017)._ **253E. [Selection Committee.] Omitted by** _s. 171, ibid. (w.e.f. 26-5-2017)._ **253F. [Term of office of Chairperson and Members of Appellate Tribunal.] Omitted by** _s. 171, ibid._ (w.e.f. 26-5-2017). **253G.** [Terms and conditions of service of Chairperson and Members of Appellate _Tribunal.] Omitted by_ _s. 171, ibid. (w.e.f. 26-5-2017)._ **253H. [Vacancies.] Omitted by** _s. 171, ibid. (w.e.f. 26-5-2017)._ **253-I.** [Resignation of Chairperson and Members of Appellate Tribunal.] _Omitted by_ _s. 171,_ _ibid._ (w.e.f. 26-5-2017). **253J. [Member of Appellate Tribunal to act as its Chairperson in certain cases.] Omitted by** _s. 171,_ _ibid. (w.e.f. 26-5-2017)._ **253K. [Removal and suspension of Chairperson and Members of Appellate Tribunal.] Omitted by** _s._ 171, ibid. (w.e.f. 26-5-2017). **253L.** [Restriction on employment of Chairperson and other Members of Appellate Tribunal in _certain cases.] Omitted by_ _s. 171, ibid. (w.e.f. 26-5-2017)._ **253M. [Staff of Appellate Tribunal.] Omitted by** _s. 171, ibid. (w.e.f. 26-5-2017)._ **253N. Awarding compensation.—(1) Without prejudice to any other provisions contained in this** Act, the Central Government or a State Government or a local authority or any enterprise or any person may make an application to the Appellate Tribunal to adjudicate on claim for compensation that may arise from the findings of the Commission or the orders of the Appellate Tribunal in an appeal against any findings of the Commission or under section 42A or [3][under sub-section (2) of section 53Q or the orders of the Supreme Court in an appeal against the findings of the Appellate Tribunal under section 53T or an order for settlement passed under section 48A, and to pass an order for the recovery of compensation from any enterprise for any loss or damage shown to have been suffered, by the Central Government or a State Government or a local authority or any enterprise or any person as a result of any contravention of the provisions of Chapter II, having been committed by enterprise or as a result of order of settlement passed by the Commission]. (2) Every application made under sub-section (1) shall be accompanied by the findings of the Commission [4][or Appellate Tribunal or the Supreme Court, or an order for settlement], if any, and also be accompanied with such fees as may be prescribed. (3) The Appellate Tribunal may, after an inquiry made into the allegations mentioned in the application made under sub-section (1), pass an order directing the enterprise to make payment to the applicant, of the amount determined by it as realisable from the enterprise as compensation for the loss or damage caused to the applicant as a result of any contravention of the provisions of Chapter II having been committed by such enterprise: 1. 20-12-2007, vide S.O. No. 2167(E), dated 20-12-2007. 2. 20-5-2009, vide S.O. No. 1242(E), dated 15-5-2009. 3. Subs. by Act 9 of 2023, s. 40, for certain words (w.e.f. 6-3-2024). 4. Ins. by s. 40, ibid., (w.e.f. 6-3-2024). ----- Provided that the Appellate Tribunal may obtain the recommendations of the Commission before passing an order of compensation. (4) Where any loss or damage referred to in sub-section (1) is caused to numerous persons having the same interest, one or more of such persons may, with the permission of the Appellate Tribunal, make an application under that sub-section for and on behalf of, or for the benefit of, the persons so interested, and thereupon, the provisions of rule 8 of Order 1 of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to the application before the Appellate Tribunal and the order of the Appellate Tribunal thereon. _Explanation.—For the removal of doubts, it is hereby declared that—_ (a) an application may be made for compensation before the Appellate Tribunal only after either the Commission or the Appellate Tribunal on appeal under clause (a) of sub-section (1) of section 53A [1][or the Supreme Court on appeal under section 53T] of the Act, has determined in a proceeding before it that violation of the provisions of the Act has taken place, or if provisions of section 42A or sub-section (2) of section 53Q of the Act are attracted; (b) enquiry to be conducted under sub-section (3) shall be for the purpose of determining the eligibility and quantum of compensation due to a person applying for the same, and not for examining afresh the findings of the Commission or the Appellate Tribunal [1][or the Supreme Court,] on whether any violation of the Act has taken place. **153-O. Procedure and powers of Appellate Tribunal.—(1) The Appellate Tribunal shall not be** bound by the procedure laid down in the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules made by the Central Government, the Appellate Tribunal shall have power to regulate its own procedure including the places at which they shall have their sittings. (2) The Appellate Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavit; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing a representation for default or deciding it ex parte; (h) setting aside any order of dismissal of any representation for default or any order passed by it _ex parte;_ (i) any other matter which may be prescribed. (3) Every proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860) and the Appellate Tribunal shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code or Criminal Procedure, 1973 (2 of 1974). **153P. Execution of orders of Appellate Tribunal.—(1) Every order made by the Appellate Tribunal** shall be enforced by it in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the Appellate Tribunal to send, in case of its inability to execute such order, to the court within the local limits of whose jurisdiction,— 1. 20-5-2009, vide S.O. No. 1242(E), dated 15-5-2009. ----- (a) in the case of an order against a company, the registered office of the company is situated; or (b) in the case of an order against any other person, place where the person concerned voluntarily resides or carries on business or personally works for gain, is situated. (2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that court. **153Q. Contravention of orders of Appellate Tribunal.—2[(1) Without prejudice to the provisions** of this Act, if any person contravenes, without any reasonable ground, any order of the Appellate Tribunal, he shall be liable for contempt proceeding under section 53U.] (2) Without prejudice to the provisions of this Act, any person may make an application to the Appellate Tribunal for an order for the recovery of compensation from any enterprise for any loss or damage shown to have been suffered, by such person as a result of the said enterprise contravening, without any reasonable ground, any order of the Appellate Tribunal or delaying in carrying out such orders of the Appellate Tribunal. **353R. [Vacancy in Appellate Tribunal not to invalidate acts or proceedings.] Omitted by** _the Finance_ _Act, 2017 (7 of 2017), s. 171, (w.e.f. 26-5-2017)._ **153-S. Right to legal representation.—(1) A person preferring an appeal to the Appellate Tribunal** may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Appellate Tribunal. (2) The Central Government or a State Government or a local authority or any enterprise preferring an appeal to the Appellate Tribunal may authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal. (3) The Commission may authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal. _Explanation.—The expressions “chartered accountant” or “company secretary” or “cost accountant”_ or “legal practitioner” shall have the meanings respectively assigned to them in the _Explanation to_ section 35. **153T. Appeal to Supreme Court.—The Central Government or any State Government or the** Commission or any statutory authority or any local authority or any enterprise or any person aggrieved by any decision or order of the Appellate Tribunal may file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal to them: Provided that the Supreme court may, if it is satisfied that the applicant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed after the expiry of the said period of sixty days. **153U. Power to Punish for contempt.—The Appellate Tribunal shall have, and exercise, the same** jurisdiction, powers and authority in respect of contempt of itself as a High Court has and may exercise and, for this purpose, the provisions of the Contempt of Courts Act, 1971 (70 of 1971) shall have effect subject to modifications that,— (a) the reference therein to a High Court shall be construed as including a reference to the Appellate Tribunal; (b) the references to the Advocate-General in section 15 of the said Act shall be construed as a reference to such Law Officer as the Central Government may, by notification, specify in this behalf.] CHAPTER IX MISCELLANEOUS **54. Power to exempt.—The Central Government may, by notification, exempt from the application** of this Act, or any provision thereof, and for such period as it may specify in such notification— 1. 20-5-2009, vide S.O. No. 1242(E), dated 15-5-2009. 2. Subs. by Act 9 of 2023, s. 41, for sub-section (1) (w.e.f. 18-5-2023). 3. 20-12-2007, vide S.O. No. 2167(E), dated 20-12-2007. ----- (a) any class of enterprises if such exemption is necessary in the interest of security of the State or public interest; (b) any practice or agreement arising out of and in accordance with any obligation assumed by India under any treaty, agreement or convention with any other country or countries; (c) any enterprise which performs a sovereign function on behalf of the Central Government or a State Government: Provided that in case an enterprise is engaged in any activity including the activity relatable to the sovereign functions of the Government, the Central Government may grant exemption only in respect of activity relatable to the sovereign functions. **55. Power of Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Commission shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy, other than those relating to technical and administrative matters, as the Central Government may give in writing to it from time to time: Provided that the Commission shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government whether a question is one of policy or not shall be final. **56. Power of Central Government to supersede Commission.—(1) If at any time the Central** Government is of the opinion— (a) that on account of circumstances beyond the control of the Commission, it is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or (b) that the Commission has persistently made default in complying with any direction given by the Central Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Commission or the administration of the Commission has suffered; or (c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification and for reasons to be specified therein, supersede the Commission for such period, not exceeding six months, as may be specified in the notification: Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Commission to make representations against the proposed supersession and shall consider representations, if any, of the Commission. (2) Upon the publication of a notification under sub-section (1) superseding the Commission,— (a) the Chairperson and other Members shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Commission shall, until the Commission is reconstituted under sub-section (3), be exercised and discharged by the Central Government or such authority as the Central Government may specify in this behalf; (c) all properties owned or controlled by the Commission shall, until the Commission is reconstituted under sub-section (3), vest in the Central Government. (3) On or before the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government shall reconstitute the Commission by a fresh appointment of its Chairperson and other Members and in such case any person who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for re-appointment. (4) The Central Government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament at the earliest. ----- **57. Restriction on disclosure of information.—No information relating to any enterprise, being an** information which has been obtained by or on behalf of [1][the Commission or the Appellate Tribunal] for the purposes of this Act, shall, without the previous permission in writing of the enterprise, be disclosed otherwise than in compliance with or for the purposes of this Act or any other law for the time being in force. 2[58. Chairperson, Members, Director General, Secretary, officers and other employees, etc., to **be public servants.—The Chairperson and other Members and the Director General, Additional, Joint,** Deputy or Assistant Directors General and Secretary and officers and other employees of the Commission and the Chairperson, Members, officers and other employees of the Appellate Tribunal shall be deemed, while acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).] **59. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government or Commission or any officer of the Central Government or the Chairperson or any Member or the Director General, Additional, Joint, Deputy or Assistant Directors General or [3][the Secretary or officers or other employees of the Commission or the Chairperson, Members, officers and other employees of the Appellate Tribunal] for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. 4[59A. Compounding of certain offences.—Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act, not being an offence punishable with imprisonment only or imprisonment and also with fine, may either before or after the institution of any proceeding, be compounded by the Appellate Tribunal or a court before which such proceeding is pending.] **60. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force. **61. Exclusion of jurisdiction of civil courts.—No civil court shall have jurisdiction to entertain any** suit or proceeding in respect of any matter which the [5][Commission or the Appellate Tribunal] is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **62. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the provisions of any other law for the time being in force. **63. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 6[(a) the value of the assets or turnover of the enterprise acquired, taken control of, merged or amalgamated in India under clause (e) of section 5; (ab) the percentage of voting rights higher than twenty-six per cent. under sub-clause (i) of clause (b) of the Explanation to section 5; (ac) the criteria of combinations under sub-section (4) of section 6; (ad) the criteria under sub-section (7) of section 6;] 7[ 8[(ae)] the term of the Selection Committee and the manner of selection of panel of names under sub-section (2) of section 9;] (b) the form and manner in which and the authority before whom the oath of office and of secrecy shall be made and subscribed to under sub-section (3) of section 10; 1. Subs. by Act 39 of 2007, s. 44, for “the Commission” (w.e.f. 12-10-2007). 2. Subs. by s. 45, ibid., for section 58 (w.e.f. 12-10-2007). 3. Subs. by s. 46, ibid., for “Registrar or officers or other employees of the Commission” (w.e.f. 12-10-2007). 4. Ins. by Act 9 of 2023, s. 42 (w.e.f. 18-5-2023). 5. Subs. by Act 39 of 2007, s. 47, for “Commission” (w.e.f. 12-10-2007). 6. Ins. by Act 9 of 2023, s. 43 (w.e.f. 18-5-2023). 7. Subs. by Act 39 of 2007, s. 48, for clause (a) (w.e.f. 12-10-2007). 8. Clause (a) re-lettered as clause (ae) thereof by Act 9 of 2023, s. 43 (w.e.f. 18-5-2023). ----- 1* - - - (d) the salary and the other terms and conditions of service including travelling expenses, house rent allowance and conveyance facilities, sumptuary allowance and medical facilities to be provided to the Chairperson and other Members under sub-section (1) of section 14; 2[(da) the number of Additional, Joint, Deputy or Assistant Directors General or such officers or other employees in the office of Director General and the manner in which such Additional, Joint, Deputy or Assistant Directors General or such officers or other employees may be appointed under sub- section (1A) of section 16;] (e) the salary, allowances and other terms and conditions of service of the Director General, Additional, Joint, Deputy or Assistant Directors General or [3][such officers or other employees] under sub-section (3) of section 16; (f) the qualifications for appointment of the Director General, Additional, Joint, Deputy or Assistant Directors General or [6][such officers or other employees] under sub-section (4) of section 16; (g) the salaries and allowances and other terms and conditions of service of the [4][Secretary] and officers and other employees payable, and the number of such officers and employees under sub-section (2) of section 17; 5* - - - (k) the form in which the annual statement of accounts shall be prepared under sub-section (1) of section 52; (l) the time within which and the form and manner in which the Commission may furnish returns, statements and such particulars as the Central Government may require under sub-section (1) of section 53; (m) the form in which and the time within which the annual report shall be prepared under sub-section (2) of section 53; 6[(ma) the form in which an appeal may be filed before the Appellate Tribunal under sub-section (2) of section 53B and the fees payable in respect of such appeal; 7* - - - (me) the fee which shall be accompanied with every application made under sub-section (2) of section 53N; (mf) the other matters under clause (i) of sub-section (2) of section 53-O in respect of which the Appellate Tribunal shall have powers under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit;] 8[(mg) the form of the publication of guidelines under sub-section (5) of section 64B;] 9[(n) the manner in which the monies transferred to the Competition Commission of India or the Appellate Tribunal shall be dealt with by the Commission or the Appellate Tribunal, as the case may be, under the fourth proviso to sub-section (2) of section 66;] (o) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be, or may be, made by rules. (3) Every notification issued under sub-section (3) of section 20 and section 54 and every rule made under this Act by the Central Government shall be laid, as soon as may be after it is made, before each 1. Clause (c) omitted by Act 39 of 2007, s. 48 (w.e.f. 12-10-2007) 2. Ins. by s. 48, ibid. (w.e.f. 12-10-2007). 3. Subs. by s. 48, ibid., for “such other advisers, consultants or officers” (w.e.f. 12-10-2007). 4. Subs. by s. 48, ibid., for “Registrar” (w.e.f. 12-10-2007). 5. Cls. (h), (i) and (j) omitted by s. 48, ibid. (w.e.f. 12-10-2007). 6. Ins. by s. 48, ibid. (w.e.f. 12-10-2007). 7. Cls. (mb), (mc) and (md) omitted by Act 7 of 2017, s. 171 (w.e.f. 26-5-2017). 8. Ins. by Act 9 of 2023, s. 43 (w.e.f. 18-5-2023). 9. Subs. by Act 39 of 2007, s. 48, for clause (n) (w.e.f. 12-10-2007). ----- House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session, or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or rule, or both Houses agree that the notification should not be issued or rule should not be made, the notification or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule, as the case may be. **64. Power to make regulations.—(1) The Commission may, by notification, make regulations** consistent with this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing provisions, such regulations may provide for all or any of the following matters, namely:— (a) the cost of production to be determined under clause (b) of the Explanation to section 4; (b) the form of notice as may be specified and the fee which may be determined under sub-section (2) of section 6; 1[(c) the manner of determination of substantial business operations in India under clause (d) of section 5; (ca) the form and fee for notice for combination under sub-section (4) of section 6; (cb) the time and manner for filing notice of acquisition under clause (a) of section 6A; (cc) the manner and circumstance in which the acquirer may exercise the ownership or beneficial right or interest in shares or convertible securities including voting right and receipt of dividends or any other distributions as an exception under clause (b) of section 6A;] 2[(d) the procedures to be followed for engaging the experts and professionals under sub-section (3) of section 17; (e) the fee which may be determined under clause (a) of sub-section (1) of section 19; (f) the rules of procedure in regard to the transaction of business at the meetings of the Commission under sub-section (1) of section 22; 3[(fa) other details to be indicated in the show-cause notice under sub-section (9) of section 26; (fb) the manner of determining turnover or income under the _Explanation to clause (b) of_ section 27; (fc) the manner in which modification may be proposed by parties to the combination to the Commission under sub-section (2) of section 29A;] (g) the manner in which penalty shall be recovered under sub-section (1) of section 39; 4[(ga) the lesser penalty to be imposed on producer, seller, distributor, trader or service provider under sub-section (1) of section 46; (gb) the manner and time for withdrawal of application for lesser penalty under sub-section (2) of section 46; (gc) the lesser penalty to be imposed on producer, seller, distributor, trader or service provider under sub-section (4) of section 46; (gd) the manner of determining income under clause (c) of Explanation to section 48; (ge) the form of application and fee under sub-section (1), the time under sub-section (2), the terms and manner of implementations and monitoring under sub-section (3) and the procedure for conducting settlement proceedings under sub-section (6) of section 48A; 1. Subs. by Act 9 of 2023, s. 44, for clause (c) (w.e.f. 18-5-2023). 2. Subs. by Act 39 of 2007, s. 49, for clauses (d) and (e) (w.e.f. 12-10-2007). 3. Ins. by Act 9 of 2023, s. 44 (w.e.f. 18-5-2023). 4. Ins. by s. 44, ibid., (w.e.f. 18-5-2023). ----- (gf) the form of application and fee under sub-section (1), the time under sub-section (2), the terms and manner of implementations and monitoring under sub-section (3) and the procedure for commitments offered under sub-section (6) of section 48B; (gg) the other details to be published along with draft regulations and the period for inviting public comments under clause (a) of section 64A;] (h) any other matter in respect of which provision is to be, or may be, made by regulations.] (3) Every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation, or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation. 1[64A. Process of issuing regulations.—The Commission shall ensure transparency while making regulations under section 64, by— (a) publishing draft regulations along with such other details as may be specified on its website and inviting public comments for a specified period prior to issuing regulations; (b) publishing a general statement of its response to the public comments, not later than the date of notification of the regulations; (c) periodically reviewing such regulations: Provided that if the Commission is of the opinion that certain regulations are required to be made or existing regulations are required to be amended urgently in public interest or the subject matter of the regulation relates solely to the internal functioning of the Commission, it may make regulations or amend the existing regulations, as the case may be, without following the provisions stated in this section recording the reason, for doing so. # 64B. Commission to issue guidelines.— (1) The Commission may publish guidelines on the provisions of this Act or the rules and regulations made thereunder either on a request made by a person or on its own motion. (2) Guidelines issued under sub-section (1) shall not be construed as determination of any question of fact or law by the Commission, its Members or officers and shall not be binding on the Commission, its Members or officers. (3) Without prejudice to anything contained in sub-section (1), the Commission shall publish guidelines as to the appropriate amount of any penalty for any contravention of provision of this Act. (4) While imposing penalty under clause (b) of section 27 or under section 43A or section 48 for any contravention of provision of this Act, the Commission shall consider the guidelines under sub-section (3) and provide reasons in case of any divergence from such guidelines. (5) The guidelines under sub-sections (1) and (3) shall be published in such form as may be prescribed.] **65. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as may appear to it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of this Act. 1. Ins. by Act 9 of 2023, s. 45, (w.e.f. 18-5-2023). ----- (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **66. Repeal and saving.—[1][(1) The Monopolies and Restrictive Trade Practices Act, 1969** (54 of 1969) is hereby repealed and the Monopolies and Restrictive Trade Practices Commission established under sub-section (1) of section 5 of the said Act (hereafter referred to as the repealed Act) shall stand dissolved. 2* - - - (1A) The repeal of the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969) shall, however, not affect,— (a) the previous operation of the Act so repealed or anything duly done or suffered thereunder; or (b) any right, privilege, obligation or liability acquired, accrued or incurred under the Act so repealed; or (c) any penalty, confiscation or punishment incurred in respect of any contravention under the Act so repealed; or (d) any proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, confiscation or punishment as aforesaid, and any such proceeding or remedy may be instituted, continued or enforced, and any such penalty, confiscation or punishment may be imposed or made as if that Act had not been repealed.] (2) On the dissolution of the Monopolies and Restrictive Trade Practices Commission, the person appointed as the Chairman of the Monopolies and Restrictive Trade Practices Commission and every other person appointed as Member and Director General of Investigation and Registration, Additional, Joint, Deputy, or Assistant Directors General of Investigation and Registration and any officer and other employee of that Commission and holding office as such immediately before such dissolution shall vacate their respective offices and such Chairman and other Members shall be entitled to claim compensation not exceeding three months’ pay and allowances for the premature termination of term of their office or of any contract of service: Provided that the Director General of Investigation and Registration, Additional, Joint, Deputy or Assistant Directors General of Investigation and Registration or any officer or other employee who has been, immediately before the dissolution of the Monopolies and Restrictive Trade Practices Commission appointed on deputation basis to the Monopolies and Restrictive Trade Practices Commission, shall, on such dissolution, stand reverted to his parent cadre, Ministry or Department, as the case may be: 3[Provided further that the Director General of Investigation and Registration, Additional, Joint, Deputy or Assistant Directors General of Investigation and Registration or any officer or other employee who has been, immediately before the dissolution of the Monopolies and Restrictive Trade Practices Commission employed on regular basis by the Monopolies and Restrictive Trade Practices Commission, shall become, on and from such dissolution, the officer and employee, respectively, of the Competition Commission of India or the Appellate Tribunal, in such manner as may be specified by the Central Government, with the same rights and privileges as to pension, gratuity and other like matters as would have been admissible to him if the rights in relation to such Monopolies and Restrictive Trade Practices Commission had not been transferred to, and vested in, the Competition Commission of India or the Appellate Tribunal, as the case may be, and shall continue to do so unless and until his employment in the Competition Commission of India or the Appellate Tribunal, as the case may be, is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the Competition Commission of India or the Appellate Tribunal, as the case may be:] Provided also that notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, the transfer of the services of any Director 1. Subs. by Act 39 of 2007, s. 50, for sub-section (1) (w.e.f. 1-9-2009). 2. The proviso and the Explanation omitted by Act 39 of 2009, s. 2 (w.e.f. 14-10-2009). 3. Subs. by Act 39 of 2007, s. 50, for the second proviso (w.e.f. 1-9-2009). ----- General of Investigation and Registration, Additional, Joint, Deputy or Assistant Directors General of Investigation and Registration or any officer or other employee, employed in the Monopolies and Restrictive Trade Practices Commission, to [1][the Competition Commission of India or the Appellate Tribunal, as the case may be,] shall not entitle such Director General of Investigation and Registration, Additional, Joint, Deputy or Assistant Directors General of Investigation and Registration or any officer or other employee any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority: Provided also that where the Monopolies and Restrictive Trade Practices Commission has established a provident fund, superannuation, welfare or other fund for the benefit of the Director General of Investigation and Registration, Additional, Joint, Deputy or Assistant Directors General of Investigation and Registration or the officers and other employees employed in the Monopolies and Restrictive Trade Practices Commission, the monies relatable to the officers and other employees whose services have been transferred by or under this Act to [2][the Competition Commission of India or the Appellate Tribunal, as the case may be, shall, out of the monies standing], on the dissolution of the Monopolies and Restrictive Trade Practices Commission to the credit of such provident fund, superannuation, welfare or other fund, stand transferred to, and vest in, [3][the Competition Commission of India or the Appellate Tribunal, as the case may be, and such monies which stand so transferred shall be dealt with by the said Commission or the Tribunal, as the case may be, in such manner as may be prescribed.] 4[(3) All cases pertaining to monopolistic trade practices or restrictive trade practices pending (including such cases, in which any unfair trade practice has also been alleged), before the Monopolies and Restrictive Trade Practices Commission shall, [5][on the commencement of the Competition Amendment Act, 2009 (39 of 2009)] stand transferred to the Appellate Tribunal and shall be adjudicated by the Appellate Tribunal in accordance with the provisions of the repealed Act as if that Act had not been repealed.] 6[Explanation.—For the removal of doubts, it is hereby declared that all cases referred to in this sub-section, sub-section (4) and sub-section (5) shall be deemed to include all applications made for the losses or damages under section 12B of the Monopolies and Restrictive Trade Practices Act,1969 (54 of 1969) as it stood before its repeal.] (4) Subject to the provisions of sub-section (3), all cases pertaining to unfair trade practices other than those referred to in clause (x) of sub-section (1) of section 36A of the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969) and pending before the Monopolies and Restrictive Trade Practices Commission [7][immediately before the commencement of the Competition (Amendment) Act, 2009 (39 of 2009), shall, on such commencement], stand transferred to the National Commission constituted under the Consumer Protection Act, 1986 (68 of 1986) and the National Commission shall dispose of such cases as if they were cases filed under that Act: Provided that the National Commission may, if it considers appropriate, transfer any case transferred to it under this sub-section, to the concerned State Commission established under section 9 of the Consumer Protection Act, 1986 (68 of 1986) and that State Commission shall dispose of such case as if it was filed under that Act: 8[Provided further that all the cases relating to the unfair trade practices pending, before the National Commission under this sub-section, on or before the date on which the Competition (Amendment) Bill, 2009 receives the assent of the President, shall, on and from that date, stand transferred to the Appellate Tribunal and be adjudicated by the Appellate Tribunal in accordance with the provisions of the repealed Act as if that Act had not been repealed.] 1. Subs. by Act 39 of 2007, s. 50, for “the Central Government” (w.e.f. 1-9-2009). 2. Subs. by s. 50, ibid., for “the Central Government shall, out of the monies standing” (w.e.f. 1-9-2009). 3. Subs. by s. 50, ibid., for certain words (w.e.f. 1-9-2009). 4. Subs. by s. 50, ibid., for sub-section (3) (w.e.f. 1-9-2009). 5. Subs. by Act 39 of 2009, s. 2, for “after the expiry of two years referred to in the proviso to sub-section (1)” (w.e.f. 14-10-2009). 6. Ins. by s. 2, ibid. (w.e.f. 14-10-2009). 7. Subs. by Act 39 of 2009, s. 2, for “on or before the expiry of two years referred to in the proviso to sub-section (1)” (w.e.f. 14-10-2009). 8. Ins. by s. 2, ibid. (14-10-2009). ----- 1[(5) All cases pertaining to unfair trade practices referred to in clause (x) of sub-section (1) of section 36A of the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969) and pending before the Monopolies and Restrictive Trade Practices Commission shall, [2][on the commencement of the Competition (Amendment) Act, 2009 (39 of 2009)], stand transferred to the Appellate Tribunal and the Appellate Tribunal shall dispose of such cases as if they were cases filed under that Act.] (6) All investigations or proceedings, other than those relating to unfair trade practices, pending before the Director General of Investigation and Registration on or before the commencement of this Act shall, on such commencement, stand transferred to the Competition Commission of India, and the Competition Commission of India may conduct or order for conduct of such investigation or proceedings in the manner as it deems fit. (7) All investigations or proceedings, relating to unfair trade practices, other than those referred to in clause (x) of sub-section (1) of section 36A of the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969) and pending before the Director General of Investigation and Registration on or before the commencement of this Act shall, on such commencement, stand transferred to the National Commission constituted under the Consumer Protection Act, 1986 (68 of 1986) and the National Commission may conduct or order for conduct of such investigation or proceedings in the manner as it deems fit: 3[Provided that all investigations or proceedings, relating to unfair trade practices pending before the National Commission, on or before the date on which the Competition (Amendment) Bill, 2009 receives the assent of the President shall, on and from that date, stand transferred to the Appellate Tribunal and the Appellate Tribunal may conduct or order for conduct of such investigation or proceedings in the manner as it deems fit.] (8) All investigations or proceedings relating to unfair trade practices referred to in clause (x) of sub-section (1) of section 36A of the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969), and pending before the Director General of Investigation and Registration on or before the commencement of this Act shall, on such commencement, stand transferred to the Competition Commission of India and the Competition Commission of India may conduct or order for conduct of such investigation in the manner as it deems fit. (9) Save as otherwise provided under sub-sections (3) to (8), all cases or proceedings pending before the Monopolies and Restrictive Trade Practices Commission shall abate. (10) The mention of the particular matters referred to in sub-sections (3) to (8) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal. 1. Subs. by Act 39 of 2007, s. 50, for sub-section (5) (w.e.f. 1-9-2009). 2. Subs. by s. 2, ibid., for certain words (14-10-2009). 3. Ins. by s. 2, ibid. (w.e.f. 14-10-2009). -----
14-Jan-2003
13
The Control of National Highways (Land and Traffic) Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2028/3/A2003-13.pdf
central
# THE CONTROL OF NATIONAL HIGHWAYS (LAND AND TRAFFIC) ACT, 2002 _______________ # ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II HIGHWAYS ADMINISTRATION 3. Establishment of Highway Administrations. 4. Powers and functions of Highway Administration. 5. [Omitted]. 6. [Omitted.]. 7. [Omitted.]. 8. [Omitted.]. 9. [Omitted.]. 10. [Omitted.]. 11. [Omitted.]. 12. [Omitted.]. 13. [Omitted.]. 14. Appeal. 15. [Omitted.] 16. [Omitted.] 17. Conditions as to making of interim order. 18. [Omitted.] 19. Limitation. 20. Appointment of officers to act on behalf of Highway Administration. 21. Delegation of powers. 22. Power to transfer jurisdiction. CHAPTER III PREVENTION OF UNAUTHORISED OCCUPATION OF HIGHWAY LAND AND THEIR REMOVAL 23. Highway land to be deemed as property of Central Government. 24. Prevention of occupation of highway land. 25. Grant of lease or licence of highway land for temporary use. 26. Removal of unauthorised occupation. 27. Recovery of cost of removal of unauthorised occupation and fine imposed. 1 ----- CHAPTER IV CONTROL OF ACCESS TO THE NATIONAL HIGHWAYS SECTIONS 28. Right of access. 29. Procedure for permission to access to Highway. 30. Regulation or diversion of access, etc. CHAPTER V REGULATION OF DIFFERENT TYPES OF TRAFFIC ON NATIONAL HIGHWAYS 31. Highway Administration to regulate traffic when Highway deemed unsafe. 32. Prohibition of use of heavy vehicles on certain Highways. 33. Temporary closure of traffic on Highway. 34. Permanent closure of Highway. 35. Power to restrict the use of vehicles. 36. Prevention and repair of damage to Highway. 37. Prohibition to leave vehicles or animals in dangerous position. CHAPTER VI REGULATION OF CONSTRUCTION ON HIGHWAY LAND FOR PUBLIC UTILITIES, DRAINS, ETC. 38. Construction on highway land. CHAPTER VII OFFENCE AND PENALTY 39. Offence and penalty. CHAPTER VIII MISCELLANEOUS 40. [Omitted.] 41. Finality of orders. 42. Duty of village officials. 43. Conduct of inquiry. 44. Officers of Highways Administration to be public servant. 45. Protection of action taken in good faith. 46. Offences by companies. 47. Procedure for service of notices, etc. 48. Act to have overriding effect. 49. Power to remove difficulties. 50. Power to make rules. 2 ----- # THE CONTROL OF NATIONAL HIGHWAYS (LAND AND TRAFFIC) ACT, 2002 ACT NO. 13 OF 2003 [14th January, 2003.] # An Act to provide for control of land within the National Highways, right of way and traffic moving on the National Highways and also for removal of unauthorised occupation thereon. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Control of National** Highways (Land and Traffic) Act, 2002. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act. **2. Definitions.—In this Act, unless the context otherwise requires,—** 2* - - - (b) “building” means any work of construction done in any manner by use of any material and includes a farm building for agricultural purposes, plinth, doorstep, wall, drain, advertisement board and other things fixed with such building; (c) “construct”, with its grammatical variations, in relation to a building, means to construct, reconstruct, erect, re-erect, extend or alter structurally a building; (d) “cost of land” means the market value of the land as determined by the competent authority of the State Government or the Government of the Union territory appointed for such determination, as the case may be; 3[(da) “Court” means the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction;] (e) “Highway” means a National Highway declared as such under section 2 of the National Highways Act, 1956 (48 of 1956) and includes any Expressway or Express Highway vested in the Central Government, whether surfaced or unsurfaced, and also includes— (i) all lands appurtenant to the Highway, whether demarcated or not, acquired for the purpose of the Highway or transferred for such purpose by the State Government to the Central Government; (ii) all bridges, culverts, tunnels, causeways, carriageways and other structures constructed on or across such Highway; and (iii) all trees, railings, fences, posts, paths, signs, signals, kilometre stone and other Highway accessories and materials on such Highways; (f) “Highway Administration” means the Highway Administration established under section 3; (g) “highway land” means the land of which the Central Government is, or is deemed to be, the owner under sub-section (1) of section 23; (h) “land” includes benefits arising out of land and things attached to the earth or permanently fastened to anything attached to the earth; 1. 27th January, 2005, vide notification No. S.O. 96(E), dated 27th January, 2005, see Gazette of India, Extraordinary, Part II sec. 3(ii). 2. Clause (a) omitted by Act 33 of 2021, s. 24 (w.e.f. 4-4-2021). 3. Ins. by s. 24, ibid. (w.e.f. 4-4-2021). 3 ----- (i) “means of access” means any permanent means of access, whether private or public, for vehicles of any kind; (j) “premises” means any land or building or part of a building and includes— (i) the garden, grounds and outhouses, if any, appertaining to such building or part of a building; and (ii) any fittings affixed to such building or part of a building for the more beneficial enjoyment thereof; (k) “prescribed” means prescribed by rules made under this Act; 1* - - - (m) “unauthorised occupation” means any occupation of the highway land, without permission under this Act for such purpose, by a person who— (i) is trespasser on the Highway; or (ii) for the time being is paying or is liable to pay to other person rent or any portion of the rent of the premises on a Highway; or (iii) lives in or otherwise uses any premises on a Highway; or (iv) is a rent-free tenant of any premises on a Highway; or (v) is a licensee of any premises on a Highway for its possession; or (vi) is liable to pay damages to the owner of any premises on a Highway for the use or possession of such premises; (n) “vehicle” means a barrow, sledge, plough, drag and any wheeled or tracked conveyance of any description capable of being used on a Highway. CHAPTER II 2[HIGHWAYS ADMINISTRATION 3***] **3. Establishment of Highway Administrations.—(1) The Central Government shall, by notification** in the Official Gazette,— (a) establish, for the purposes of this Act, a body or authority consisting of one or more officers of the Central Government or the State Government to be known as Highway Administration to exercise powers and discharge functions conferred on it under this Act; and (b) define the limits of the Highway within which, or the length of Highway on which, a Highway Administration shall have jurisdiction: Provided that the Central Government may, in the notification issued under this sub-section or by any general or special order, impose any condition or limitation subject to which a Highway Administration shall exercise powers and discharge functions conferred on it under this Act. (2) The Central Government may establish one or more Highway Administrations for a State or Union territory or for a Highway under sub-section (1). (3) Subject to the provisions of this Act, the Highway Administration shall exercise powers and discharge functions conferred on it under this Act in such manner as may be prescribed. **4. Powers and functions of Highway Administration.—A Highway Administration shall exercise** powers and discharge functions throughout its jurisdiction specified under this Act subject to such conditions or limitations as may be imposed by the notification issued under sub-section (1) of section 3 and by any general or special order made in this behalf by the Central Government. 1. Clause (l) omitted by Act 33 of 2021, s. 24 (w.e.f. 4-4-2021). 2. Subs. by Act 7 of 2017, s. 167, for the heading (w.e.f. 26-5-2017). 3. The words “AND TRIBUNALS, ETC.” omitted by Act 33 of 2021, s. 24 (w.e.f. 4-4-2021). 4 ----- **5. [Establishment of Tribunals.]—Omitted by the Tribunals Reforms Act, 2021 (33** _of 2021),_ _s. 24_ (w.e.f. 4-4-2021). **6. [Composition of Tribunal.]—Omitted by the Finance Act, 2017 (7** _of 2017),_ _s._ 167 (w.e.f. 26-5-2017). **7. [Qualifications for appointment as Presiding Officer.]—Omitted by s. 167, ibid. (w.e.f. 26-5-2017).** **8. [Term of office.] —Omitted by s. 167, ibid. (w.e.f. 26-5-2017).** **9. [Staff of Tribunal.] —Omitted by s. 167, ibid. (w.e.f. 26-5-2017).** **10. [Salary and allowances and other terms and conditions of service of Presiding Officer.] —** _Omitted by s. 167, ibid. (w.e.f. 26-5-2017)._ **11. [Vacancies in Tribunal.] —Omitted by s. 167, ibid. (w.e.f. 26-5-2017).** **12. [Resignation and removal.] —Omitted by s. 167, ibid. (w.e.f. 26-5-2017).** **13. [Financial and administrative powers of Presiding Officer.]—Omitted by s. 167,** _ibid._ (w.e.f. 26-5-2017). **1[14. Appeal.—An appeal from any order passed, or any action taken, excluding issuance or serving** of notices, under sections 26, 27, 28, 36, 37 and 38 by the Highway Administration or an officer authorised on its behalf, as the case may be, shall lie to the Court.] 15. [Bar of jurisdiction.]—Omitted by the Tribunal Reforms Act, 2021 (33 _of 2021),_ _s. 24_ (w.e.f. 4-4-2021). 16. [Procedure and powers of Tribunal.]—Omitted by _s. 24, ibid., (w.e.f. 4-4-2021)._ **17. Conditions as to making of interim order.—Notwithstanding anything contained in any other** provision of this Act or in any other law for the time being in force, no interim order (whether by way of injunction or stay or in any other manner) shall be made on, or in any proceeding relating to, an application or appeal unless— (a) copies of such application or appeal and of all documents in support of the plea for such interim order are furnished to the party against whom such application is made or appeal is preferred; and (b) opportunity is given to such party to be heard in the matter: Provided that the [2][Court] may dispense with the requirements of clauses (a) and (b) and make an interim order as an exceptional measure if it is satisfied, for reasons to be recorded in writing, that it is necessary so to do for preventing any loss being caused to the applicant or the appellant, as the case may be; which cannot be adequately compensated in money; but any such interim order shall, if it is not sooner vacated, cease to have effect on the expiry of a period of fourteen days from the date on which it is made unless the said requirements have been complied with before the expiry of that period and the 2[Court] has continued the operation of the interim order. 18. [Execution of orders of Tribunal.]—Omitted by Act the Tribunals Reforms Act, 2021 (33 of 2021), _s. 24 (w.e.f. 4-4-2021)._ **19. Limitation.—Every appeal to the** [2][Court] under this Act shall be preferred within a period of sixty days from the date on which the order appealed against has been made: Provided that an appeal may be admitted after the expiry of the said period of sixty days, if the appellant satisfies the [2][Court] that he had sufficient cause for not preferring the appeal within the specified period. 1. Subs. by Act 33 of 2021, s. 24, for section 14 (w.e.f. 4-4-2021). 2. Subs. by s. 24, ibid., for “Tribunal” (w.e.f. 4-4-2021). 5 ----- **20. Appointment of officers to act on behalf of Highway Administration.—(1) The Highway** Administration may, if it thinks fit after the approval of the Central Government, by notification in the Official Gazette, appoint such— (a) gazetted officer of the Central Government; or (b) gazetted officer of the State Government; or (c) officer of the National Highways Authority of India constituted under section 3 of the National Highways Authority of India Act, 1988 (68 of 1988) or any other authority constituted under any other enactment, equivalent to a gazetted officer of the Central Government or the State Government, to exercise such powers and discharge such functions of the Highway Administration as may be specified in the notification. (2) The Highway Administration may specify in the notification under sub-section (1), the limits of the Highway within which or the length of the Highway on which an officer appointed under that sub-section shall exercise the powers and discharge the functions. **21. Delegation of powers.—The Central Government may, by notification in the Official Gazette,** direct that any power exercisable by it (except the powers conferred by section 50) under this Act shall, subject to such conditions, if any, as may be specified in the notification, be exercisable by a State Government or any other authority or an officer of the State Government as may be specified in the notification. **22. Power to transfer jurisdiction.—The Central Government may, at any time, by notification in** the Official Gazette, transfer the jurisdiction of a Highway Administration defined under clause (b) of sub-section (1) of section 3 to other Highway Administration, and on the transfer the Highway Administration shall cease to have and such other Highway Administration shall, subject to the conditions, if any, specified in the notification, have all the powers and authority exercisable by the Highway Administration before such transfer of jurisdiction. CHAPTER III PREVENTION OF UNAUTHORISED OCCUPATION OF HIGHWAY LAND AND THEIR REMOVAL **23. Highway land to be deemed as property of Central Government.—(1) All lands forming parts** of a Highway which vest in the Central Government or which do not already vest in the Central Government but have been acquired for the purpose of Highway shall, for the purposes of this Act, and other Central Acts, be deemed to be the property of the Central Government as owner thereof. (2) The Highway Administration shall cause to be maintained a record in the prescribed manner in which the particulars of the lands, relating to the Highway, of which the Central Government is the owner shall be entered and the entries of the particulars of such lands in any record maintained for such purpose before the commencement of this Act shall be deemed to be the entry of the particulars of such lands made in the first said record and accordingly the Central Government shall be deemed to be the owner of the lands regarding which the entries have been made in such records maintained before the commencement of this Act. (3) Any person claiming against the ownership of the Central Government referred to in sub-section (2) shall make written complaint to the Highway Administration and prove his claim before it and the Highway Administration, after considering the evidence produced by such person, may correct such records or reject the claim. **24. Prevention of occupation of highway land.—(1) No person shall occupy any highway land or** discharge any material through drain on such land without obtaining prior permission, for such purpose in writing, of the Highway Administration or any officer authorised by such Administration in this behalf. (2) The Highway Administration or the officer authorised under sub-section (1) may, on an application made by a person in this behalf and having regard to the safety and convenience of traffic, grant permission to such person— 6 ----- (i) to place a movable structure on the Highway in front of any building owned by him or to make a movable structure on support of such building and over the Highway, or (ii) to put up a temporary lawning or tent or other similar construction or a temporary stall or scaffolding on the Highway, or (iii) to deposit or cause to be deposited, building materials, goods, for sale or other articles on any Highway, or (iv) to make a temporary excavation for carrying out any repairs or improvements to adjoining buildings, and such permission shall be granted subject to the conditions and on payment of the rent and other charges by issuing permit in the form as may be prescribed: Provided that no such permission shall be valid beyond a period of one month at a time from the date on which the permission has been granted unless it is renewed by the Highway Administration or such officer on an application made by such person for the renewal of the permission. (3) The permission granted under sub-section (2) shall specify therein— (i) the time up to which the permission is granted; (ii) the purpose of such permission; (iii) the portion of the Highway in respect of which the permission has been granted, and shall be accompanied with a plan or sketch of such portion of Highway. (4) The person, to whom the permit has been issued under sub-section (2), shall produce the permit for inspection whenever called upon to do so by any officer of the Highway Administration and shall, on the expiry of the permission granted under such permit, restore the portion of the Highway specified in the permit in such condition as it was immediately before the issuing of such permit and deliver the possession of such portion to the Highway Administration. (5) The Highway Administration or the officer issuing the permit under sub-section (2) shall maintain a complete record of all such permits issued, and shall also ensure in every case at the expiration of the period up to which the permission under a permit is granted under that sub-section that the possession of the portion of the Highway in respect of which such permission was granted has been delivered to the Highway Administration. **25. Grant of lease or licence of highway land for temporary use.—The Highway Administration** or the officer authorised by such Administration in this behalf may, having regard to the safety and convenience of traffic and subject to such conditions as may be prescribed and on payment of prescribed rent or other charges, grant lease or licence of highway land to a person for temporary use: Provided that no such lease shall be valid for more than five years at a time from the date on which such lease has been granted unless renewed by the Highway Administration or such officer. **26. Removal of unauthorised occupation.—(1) Where the Highway Administration or the officer** authorised by such Administration in this behalf is of the opinion that it is necessary in the interest of traffic safety or convenience to cancel any permit issued under sub-section (2) of section 24, it may, after recording the reasons in writing for doing so, cancel such permit and, thereupon, the person to whom the permission was granted shall, within the period specified by an order made by the Highway Administration or such officer restore the portion of the Highway specified in the permit in such condition as it was immediately before the issuing of such permit and deliver the possession of such portion to the Highway Administration and in case such person fails to deliver such possession within such period, he shall be deemed to be in unauthorised occupation of highway land for the purposes of this section and section 27. (2) When, as a result of the periodical inspection of highway land or otherwise, the Highway Administration or the officer authorised by such Administration in this behalf is satisfied that any unauthorised occupation has taken place on highway land, the Highway Administration or the officer so 7 ----- authorised shall serve a notice in a prescribed form on the person causing or responsible for such unauthorised occupation requiring him to remove such unauthorised occupation and to restore such highway land in its original condition as before the unauthorised occupation within the period specified in the notice. (3) The notice under sub-section (2) shall specify therein the highway land in respect of which such notice is issued, the period within which the unauthorised occupation on such land is required to be removed, the place and time of hearing any representation, if any, which the person to whom the notice is addressed may make within the time specified in the notice and that failure to comply with such notice shall render the person specified in the notice liable to penalty, and summary eviction from the highway land in respect of which such notice is issued, under sub-section (6). (4) The service of the notice under sub-section (2) shall be made by delivering a copy thereof to the person to whom such notice is addressed or to his agent or other person on his behalf or by registered post addressed to the person to whom such notice is addressed and an acknowledgment purporting to be signed by such person or his agent or other person on his behalf or an endorsement by a postal employee that such person or his agent or such other person on his behalf has refused to take delivery may be deemed to be prima facie proof of service. (5) Where the service of the notice is not made in the manner provided under sub-section (4), the contents of the notice shall be advertised in a local newspaper for the knowledge of the person to whom the notice is addressed and such advertisement shall be deemed to be the service of such notice on such person. (6) Where the service of notice under sub-section (2) has been made under sub-section (4) or sub-section (5) and the unauthorised occupation on the highway land in respect of which such notice is served has not been removed within the time specified in the notice for such purpose and no reasonable cause has been shown before the Highway Administration or the officer authorised by such Administration in this behalf for not so removing unauthorised occupation, the Highway Administration or such officer, as the case may be, shall cause such unauthorised occupation to be removed at the expenses of the Central Government or the State Government, as the case may be, and impose penalty on the person to whom the notice is addressed which shall be five hundred rupees per square metre of the land so unauthorisedly occupied and where the penalty so imposed is less than the cost of such land, the penalty may be extended equal to such cost. (7) Notwithstanding anything contained in this section, the Highway Administration or the officer authorised by such Administration in this behalf shall have power without issuing any notice under this section to remove the unauthorised occupation on the highway land, if such unauthorised occupation is in the nature of— (a) exposing any goods or article— (i) in open air; or (ii) through temporary stall, kiosk, booth or any other shop of temporary nature, (b) construction or erection, whether temporary or permanent, or (c) trespass or other unauthorised occupation which can be removed easily without use of any machine or other device, and in removing such occupation, the Highway Administration or such officer may take assistance of the police, if necessary, to remove such occupation by use of the reasonable force necessary for such removal. (8) Notwithstanding anything contained in this section, if the Highway Administration or the officer authorised by such Administration in this behalf is of the opinion that any unauthorised occupation on the highway land is of such a nature that the immediate removal of which is necessary in the interest of— (a) the safety of traffic on the Highway; or (b) the safety of any structure forming part of the Highway, 8 ----- and no notice can be served on the person responsible for such unauthorised occupation under this section without undue delay owing to his absence or for any other reason, the Highway Administration or the officer authorised by such Administration may make such construction including alteration of any construction as may be feasible at the prescribed cost necessary for the safety referred to in clause (a) or clause (b) or have such unauthorised occupation removed in the manner specified in sub-section (7). (9) The Highway Administration or an officer authorised by such Administration in this behalf shall, for the purposes of this section or section 27, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) issuing commissions for the examination of witnesses; and (d) any other matter which may be prescribed, and any proceeding before such Administration or officer shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860) and the Administration or the officer shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **27. Recovery of cost of removal of unauthorised occupation and fine imposed.—(1) Where a** Highway Administration or the officer authorised by such Administration in this behalf has removed any unauthorised occupation or made any construction including alteration of construction in respect of any unauthorised occupation or repaired any damage under sub-section (2) of section 36, the expenditure incurred in such removal or repair together with fifteen per cent. of additional charges or any fine imposed under this Act shall be recoverable in the manner hereinafter provided in this section. (2) The Highway Administration or the officer authorised in this behalf by such Administration shall serve a copy of the bill in the prescribed form indicating therein the expenditure, additional charges or fine recoverable under sub-section (1) on the person from whom such expenditure, additional charges or fine is recoverable and the provisions of section 26 relating to the service of notice shall apply for the service of copy of the bill under this sub-section as if for the word “notice” the word “bill” has been substituted in that section. (3) A copy of the bill referred to in sub-section (2) shall be accompanied with a certificate issued by the Highway Administration or the officer authorised by such Administration in this behalf and the amount indicated in the bill shall be the conclusive proof that such amount is the expenditure actually incurred for all or any of the purposes referred to in sub-section (1) as indicated in the bill. (4) Where a Highway Administration or the officer authorised in this behalf by such Administration has removed any unauthorised occupation or made any construction including alteration of construction in respect of any unauthorised occupation or repaired any damage under sub-section (2) of section 36, the material, if any, recovered as a result of such removal, construction, alteration or repair shall be retained in possession of the Highway Administration or such officer till the payment of the bill in respect thereof served under sub-section (2) and on payment of such bill such material shall be returned to the person entitled for the material, but in case of the failure of such payment within the time specified for the payment in the bill, the material may be sold by auction by the Highway Administration or such officer and after deduction of the amount payable under the bill from the proceeds of the auction, the balance, if any, shall be returned to the person entitled therefor. (5) In case where the proceeds of the auction under sub-section (4) is less than the amount recoverable under the bill referred to in that sub-section, the difference between such proceeds and the amount so recoverable or where no such auction has been made, the amount recoverable under the bill shall, in case of failure of the payment within the time specified in the bill, be recoverable as the arrears of land revenue. 9 ----- CHAPTER IV CONTROL OF ACCESS TO THE NATIONAL HIGHWAYS **28. Right of access.—(1) No person shall have right of access to a Highway either through any** vehicle or on foot by a group of five or more persons except permitted by the Highway Administration either generally or specifically in the manner specified in section 29. (2) The access to a Highway under sub-section (1) shall be subject to the guidelines and instructions issued by the Central Government from time to time. (3) The Highway Administration may, by notification in the Official Gazette, declare a Highway or any portion thereof to be limited for access in the manner as specified in such notification and may also impose any restriction or control on such access to, from or across such Highway as specified in that notification. **29. Procedure for permission to access to Highway.—(1) The general permission under** sub-section (1) of section 28 shall be given by issuing notification in the Official Gazette for such purpose and specific permission under that sub-section shall be given in the manner specified hereinafter under this section. (2) Any person desirous of obtaining specific permission referred to in sub-section (1) may make an application in the prescribed form to the Highway Administration specifying therein the means of access to which such permission relates and shall also be accompanied with such fees as may be prescribed and the Highway Administration shall, after considering the application either give the permission with or without the terms and conditions as may be prescribed or reject the application as it may deem fit. (3) In case, where the permission has been given in respect of the application made under sub-section (2), the person to whom such permission has been given shall obtain the licence from the Highway Administration in the prescribed form enumerating therein the terms and conditions, if any, subject to which such permission has been given, and such permission shall be renewed after such period and in such manner as may be prescribed. (4) If any person contravenes the provisions of sub-section (1) of section 28 or violates any terms and conditions subject to which permission has been given under sub-section (2) including non-renewal of licence obtained under sub-section (3), his access to Highway under the permission under sub-section (1) or sub-section (3), as the case may be, shall be deemed to be unauthorised access and the Highway Administration or the officer authorised by such Administration shall have the power to remove such access and where necessary, the Highway Administration or such officer may use the necessary force with the assistance of the police to remove such access. **30. Regulation or diversion of access, etc.—(1) Notwithstanding any permission given under** sub-section (1) or sub-section (2) of section 29, the Highway Administration shall have the power in the interest of the safety and convenience of the traffic to refuse, regulate or divert any proposed or existing access to the Highway. (2) Where an existing access is diverted, the alternative access given in lieu thereof shall not be unreasonably distant from the existing access. CHAPTER V REGULATION OF DIFFERENT TYPES OF TRAFFIC ON NATIONAL HIGHWAYS **31.** **Highway** **Administration** **to** **regulate** **traffic** **when** **Highway** **deemed** **unsafe.—(1) Notwithstanding anything contained in this Act, the Highway Administration shall have the** power to regulate and control the plying of vehicles on the Highway for the proper management thereof. (2) If at any time the Highway Administration is satisfied on the information received by it or otherwise that any Highway within its jurisdiction or any part thereof is or has become congested or unsafe for vehicular or pedestrian traffic by reason of damage or otherwise, it may, either close the Highway or such part thereof to all traffic or to any class of traffic, or regulate the number and speed of 10 ----- vehicles to be used on the Highway or such part thereof, as the case may be, in the manner as it may deem fit. **32. Prohibition of use of heavy vehicles on certain Highways.—Where the Highway** Administration is satisfied that the surface of a Highway or any part thereof, or any bridge, culvert or causeway built on or across the Highway is not designed to carry vehicles of which the laden weight exceeds a prescribed limit, it may, subject to such rules as may be made in this behalf, prohibit or restrict the plying of such vehicles on or over such Highway or part thereof or such bridge, culvert or causeway, as the case may be. **33. Temporary closure of traffic on Highway.—Where, in exercise of the powers under section 31** or section 32, the Highway Administration considers it proper for the purposes of that section to temporarily close a Highway or part thereof or to restrict or regulate traffic on such Highway or part thereof, it may do so in the manner as it may deem fit. **34. Permanent closure of Highway.—(1) Where, in exercise of the powers under section 31, the** Highway Administration deems it necessary in the interest of the safety of the Highway to close a Highway or part thereof, it may, by notification in the Official Gazette, give notice of its intention to the public to do so specifying therein the time within which the objections and suggestions received shall be considered under sub-section (3) and in addition to such notice, it shall also notify the contents of such notice in at least two newspapers, one of which shall be in the local language of the area through which such Highway passes and another shall be the newspaper being circulated in such area. (2) The notice under sub-section (1) shall indicate the alternative route proposed to be provided in lieu of the Highway or part thereof intended to be closed specifying therein as to whether such alternative route shall be an already existing Highway or shall be newly constructed and shall also invite objections and suggestions from the persons affected on such proposal within the time and to be addressed to the officer as specified in such notice. (3) The Highway Administration shall, after considering the objections and suggestions, if any, received within the time specified in such notice, take decision on the proposal for closure under the notice and shall act in accordance with such decision. **35. Power to restrict the use of vehicles.—If the Highway Administration is satisfied that it is** necessary in the interest of public safety or convenience, or because of the nature of any road or bridge so to do, it may, by notification in the Official Gazette, prohibit or restrict, subject to such exceptions or conditions as may be specified in the notification, the use of any Highway or part thereof by a class or classes of traffic either generally or on specified occasion or time as specified in the notification and when such prohibition or restriction is imposed, the Highway Administration shall cause such traffic signs to be placed or erected at suitable places for the convenience of the traffic as may be prescribed: Provided that where any prohibition or restriction under this section is to be remained for a period of one month or less, such prohibition or restriction may be imposed without issuing notification in the Official Gazette: Provided further that the prohibition or restriction imposed under the first proviso shall be published widely for the knowledge of the users by other possible means. **36. Prevention and repair of damage to Highway.—(1) No person who is in charge of, or in** possession of, any vehicle or animal shall, wilfully or negligently, cause, or allow such vehicle or animal to cause, any damage to any Highway. (2) Where, in contravention of sub-section (1), any damage has been caused to any Highway, the Highway Administration shall have such damage repaired at its own expenses and such expenses together with fifteen per cent. thereof as additional charges shall, without prejudice to any other action which may be taken against the person who has so contravened sub-section (1), be recovered from him in accordance with the provisions contained in section 27 as if such expenses and additional charges were the expenses and additional charges recoverable under that section. 11 ----- **37. Prohibition to leave vehicles or animals in dangerous position.—(1) No person in charge of, or** in possession of, any vehicle or animal shall allow such vehicle or animal to stand or proceed on a Highway unless the same is under such safety control as may be prescribed. (2) Where, in contravention of sub-section (1), any obstruction on the Highway is caused, the vehicle or animal causing such obstruction shall be caused to be towed away by the Highway Administration to remove such obstruction on the Highway and the vehicle or animal so towed away shall be taken into possession by the Highway Administration and shall be handed over to the owner thereof in the manner, by payment to the Highway Administration, the expenses incurred in such removal, as may be prescribed. (3) In case where the expenses in respect of the vehicle or animal taken into possession under sub-section (2) have not been paid in the manner prescribed under that sub-section, the Highway Administration shall sell such vehicle or animal by auction and the proceeds of the auction shall be the property of the Central Government. (4) Any person who has unauthorised occupation on a highway land shall be summarily evicted by the Highway Administration in the manner specified in section 26 for removal of unauthorised occupation and shall be liable to fine imposed by the Highway Administration which shall not be less than five hundred rupees per square metre of the unauthorisedly occupied land by him but which may be extended to the cost of such land. CHAPTER VI REGULATION OF CONSTRUCTION ON HIGHWAY LAND FOR PUBLIC UTILITIES, DRAINS, ETC. **38. Construction on highway land.—(1) Notwithstanding anything contained in any other law for** the time being in force, no person other than a Highway Administration or a person authorised by such Administration in this behalf shall construct, install, shift, repair, alter or carry any poles, pillars, advertisement towers, transformers, cable wire, pipe, drain, sewer, canal, railway line, tramway, telephone boxes, repeater station, street, path or passage of any kind on highway land or across, under or over any Highway except with the prior permission in writing of the Highway Administration for such purpose. (2) Any person who intends to obtain the permission under sub-section (1) shall make an application in the prescribed form to the Highway Administration containing therein the purpose and period of occupancy of Highway, location and part of the Highway to be occupied, method of execution of work, period of construction and method of restoration of such part of the Highway. (3) The Highway Administration shall consider the application made under sub-section (1) and if it is satisfied that there is no alternative other than the Highway in respect of which the permission is sought under the application where the land can be found to locate the public utility, it may give permission in writing as sought in the application: Provided that while giving such permission, the Highway Administration may impose such conditions as it may deem fit to protect— (i) the Highway from damage; and (ii) the traffic on the Highway from obstruction, and may also impose such fees and other charges as may be prescribed on the person to whom such permission is given in respect of any land forming part of the Highway, occupied or applied to the proposed work or construction under permission and also impose on such person the expenditure, if any, incurred by the Highway Administration for repairing any damage caused to the Highway by laying or shifting of any structure, article or equipment under the permission. (4) If any person, in contravention of sub-section (1), makes any construction or carries out any other work, the Highway Administration may, at its own expenses, cause such construction or other work to be removed from the Highway and restore the Highway in the condition as it was immediately before giving permission for such construction or other work under sub-section (3) and such expenses together with fifteen per cent. thereof as additional charges and fine imposed by the Highway Administration taking into account the nature of the damages caused by such construction or other work, which shall not be less 12 ----- than five hundred rupees per square metre of land used for such construction or other work, but shall not exceed the cost of such land, shall be recovered from such person in accordance with the provisions contained in section 27 as if such expenses, additional charges and fine were the expenses, additional charges and fine recoverable under that section. CHAPTER VII OFFENCE AND PENALTY **39. Offence and penalty.—(1) If any person, who has been evicted from any unauthorised** occupation on a highway land under this Act, again occupies any highway land without permission for such occupation under this Act, he shall be punishable with imprisonment for a term which may extend to one year, or with fine which shall not be less than one thousand rupees per square metre of so occupied highway land but which shall not exceed two times the cost of such highway land, or with both. (2) Any court, convicting a person under sub-section (1), may make an order for evicting that person from such occupied highway land summarily and he shall be liable to such eviction without prejudice to any other action that may be taken against him. (3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the offence punishable under sub-section (1) shall be cognizable. CHAPTER VIII MISCELLANEOUS 40. [Right of appellant to take assistance of legal practitioner.]—Omitted by Act the Tribunals _Reforms Act, 2021 (33 of 2021), s. 24 (w.e.f. 4-4-2021)._ **41. Finality of orders.—Save as otherwise expressly provided in this Act, every order made or any** action taken by the Highway Administration or the officer authorised in this behalf by such Administration [1]*** shall be final and shall not be called in question in any original suit, application or execution proceeding and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act to the Highway Administration [2]***. **42. Duty of village officials.—Wherever any village headman, village accountant, village watchman** or other village official, by whatever name called, becomes aware of any offence involving unauthorised occupation, damage or destruction of the highway land, he shall forthwith inform the nearest police station or the nearest Highway Administration or any officer authorised in this behalf by such Administration, the commission of such offence and shall also be duty-bound to assist the Highway Administration and its officers in prosecuting the offender of the offence. **43. Conduct of inquiry.—The Highway Administration or the officer authorised in this behalf by** such Administration shall, if he desires to make any inquiry for the purposes of this Act, make a summary inquiry in such manner as may be prescribed. 3[44. **Officers of Highways Administration to be public servant.—The officer or officers** constituting the Highways Administration and any other officer authorised by such Administration under this Act, shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).] **45. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government or [4][any other officer of the Central Government] or the officer or officers constituting the Highway Administration or any other officer authorised by such Administration 1. The words “or every order passed or decision made on appeal under this Act by the Tribunal” omitted by Act 33 of 2021, s. 24 (w.e.f. 4-4-2021). 2. The words “or Tribunal” omitted by s. 24, ibid. (w.e.f. 4-4-2021). 3. Subs. by Act 7 of 2017, s. 167 for section 44 (w.e.f. 26-5-2017). 4. Subs by, s.167, ibid., for certain words (w.e.f. 26-5-2017). 13 ----- under this Act or any other person, for anything which is in good faith done or intended to be done under this Act or the rules made thereunder. **46. Offences by companies.—(1) Where an offence punishable under this Act has been committed** by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence punishable under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **47. Procedure for service of notices, etc.—Save as otherwise provided in this Act, every notice or** bill issued or prepared under this Act may be served or presented in such manner as may be prescribed. **48. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **49. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **50. Power to make rules.—(1) The Central Government may, after previous publication, by** notification in the Official Gazette, make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner of exercising powers and discharge functions under sub-section (3) of section 3; 1* - - 2* - - (g) the manner for maintaining the records of the Highway Administration in which the lands are shown and the manner of proving claim for correction of such records under sub-section (2) of section 23; (h) the conditions subject to which, the rent and other charges on payment of which and the form in which permit may be issued for grant of permission under sub-section (2) of section 24; 1. Clauses (b), (c), (d) and (e) omitted by Act 7 of 2017, s.167 (w.e.f. 26-5-2017). 2. Clause (f) omitted by Act 33 of 2021, s. 24 (w.e.f. 4-4-2021). 14 ----- (i) the conditions, payment of rent and other charges for grant of lease or licence of highway land under section 25; (j) the form of notice under sub-section (2) of section 26; (k) the feasible cost for making construction including alteration of any construction under sub-section (8) of section 26; (l) the additional matter in respect of which the Highway Administration or an officer authorised by such Administration in this behalf may exercise the powers of a civil court under clause (d) of sub-section (9) of section 26; (m) the form of the bill under sub-section (2) of section 27; (n) the form of application, the fees to be accompanied therewith and the terms and conditions for permission under sub-section (2) of section 29; (o) the form of licence, the period and the manner of renewal of such licence under sub-section (3) of section 29; (p) the limit of laden weight and the provisions subject to which the plying of vehicles may be prohibited or restricted under section 32; (q) the traffic signs to be placed or erected under section 35; (r) the safety and control for allowing any vehicle or animal to stand or proceed on a Highway under sub-section (1) of section 37; (s) the manner of handing over the vehicle or animal to the owner and payment of expenses incurred in the removal of such vehicle or animal under sub-section (2) of section 37; (t) the form of application under sub-section (2) of section 38; (u) the fees and other charges to be imposed under sub-section (3) of section 38; (v) the manner of summary inquiry under section 43; (w) the manner of service or presentation of notice or bill under section 47; and (x) any other matter which is required to be, or may be, prescribed. (3) Every rule made or every notification issued by the Central Government under this Act shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification. 15 -----
17-Jan-2003
15
The Prevention of Money-Laundering Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2036/5/A2003-15.pdf
central
# THE PREVENTION OF MONEY-LAUNDERING ACT, 2002 __________ # ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II # OFFENCE OF MONEY-LAUNDERING 3. Offence of money-laundering. 4. Punishment for money-laundering. CHAPTER III # ATTACHMENT, ADJUDICATION AND CONFISCATION 5. Attachment of property involved in money-laundering. 6. Adjudicating Authorities, composition, powers, etc. 7. Staff of Adjudicating Authorities. 8. Adjudication. 9. Vesting of property in Central Government. 10. Management of properties confiscated under this Chapter. 11. Power regarding summons, production of documents and evidence, etc. CHAPTER IV # OBLIGATIONS OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES 11A. Verification of identity by reporting entity. 12. Reporting entity to maintain records. 12A. Access to information. 12AA. Enhanced due diligence. 13. Powers of Director to impose fine. 14. No civil or criminal proceedings against reporting entity, its directors and employees in certain cases. 15. Procedure and manner of furnishing information by reporting entities. CHAPTER V SUMMONS, SEARCHES AND SEIZURES, ETC. 16. Power of survey. 17. Search and seizure. 18. Search of persons. ----- SECTIONS 19. Power to arrest. 20. Retention of property. 21. Retention of records. 22. Presumption as to records or property in certain cases. 23. Presumption in inter-connected transactions. 24. Burden of proof. CHAPTER VI APPELLATE TRIBUNAL 25. Appellate Tribunal. 26. Appeal to Appellate Tribunal. 27. [Omitted.]. 28. [Omitted.]. 29. [Omitted.]. 30. [Omitted.]. 31. [Omitted.]. 32. [Omitted.]. 33. [Omitted.]. 34. [Omitted.]. 35. Procedure and powers of Appellate Tribunal. 36. Distribution of business amongst Benches. 37. Power of Chairperson to transfer cases. 38. Decision to be by majority. 39. Right of appellant to take assistance of authorised representative and of Government to appoint presenting officers. 40. Members, etc., to be public servants. 41. Civil court not to have jurisdiction. 42. Appeal to High Court. CHAPTER VII SPECIAL COURTS 43. Special Courts. 44. Offences triable by Special Courts. 45. Offences to be cognizable and non-bailable. 46. Application of Code of Criminal Procedure, 1973 to proceedings before Special Court. 47. Appeal and revision. CHAPTER VIII AUTHORITIES 48. Authorities under Act. 49. Appointment and powers of authorities and other officers. 50. Powers of authorities regarding summons, production of documents and to give evidence, etc. 51. Jurisdiction of authorities. 52. Power of Central Government to issue directions, etc. ----- SECTIONS. 53. Empowerment of certain officers. 54. Certain officers to assist in inquiry etc. CHAPTER IX RECIPROCAL ARRANGEMENT FOR ASSISTANCE IN CERTAIN MATTERS AND PROCEDURE FOR ATTACHMENT AND CONFISCATION OF PROPERTY 55. Definitions. 56. Agreements with foreign countries. 57. Letter of request to a contracting State in certain cases. 58. Assistance to a contracting State in certain cases. 58A. Special Court to release the property. 58B. Letter of request of a contracting State or authority for confiscation or release the property. 59. Reciprocal arrangements for processes and assistance for transfer of accused persons. 60. Attachment, seizure and confiscation, etc., of property in a contracting State or India. 61. Procedure in respect of letter of request. CHAPTER X MISCELLANEOUS 62. Punishment for vexatious search. 63. Punishment for false information or failure to give information, etc. 64. Cognizance of offences. 65. Code of Criminal Procedure, 1973 to apply. 66. Disclosure of information. 67. Bar of suits in civil courts. 68. Notice, etc., not to be invalid on certain grounds. 69. Recovery of fine or penalty. 70. Offences by companies. 71. Act to have overriding effect. 72. Continuation of proceedings in the event of death or insolvency. 72A. Inter-ministerial Co-ordination Committee. 73. Power to make rules. 74. Rules to be laid before Parliament. 75. Power to remove difficulties. THE SCHEDULE. ----- # THE PREVENTION OF MONEY-LAUNDERING ACT, 2002 ACT NO. 15 OF 2003 [17th January, 2003.] # An Act to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto. WHEREAS the Political Declaration and Global Programme of Action, annexed to the resolution S-17/2 was adopted by the General Assembly of the United Nations at its seventeenth special session on the twenty-third day of February, 1990; AND WHEREAS the Political Declaration adopted by the Special Session of the United Nations General Assembly held on 8th to 10th June, 1998 calls upon the Member States to adopt national money-laundering legislation and programme; AND WHEREAS it is considered necessary to implement the aforesaid resolution and the Declaration. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Prevention of Money-** laundering Act, 2002. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “Adjudicating Authority” means an Adjudicating Authority appointed under sub-section (1) of section 6; (b) “Appellate Tribunal” means the Appellate Tribunal [2][referred to in] section 25; (c) “Assistant Director” means an Assistant Director appointed under sub-section (1) of section 49; (d) “attachment” means prohibition of transfer, conversion, disposition or movement of property by an order issued under Chapter III; 3[(da) “authorised person” means an authorised person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);] (e) “banking company” means a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking institution referred to in section 51 of that Act; (f) “Bench” means a Bench of the Appellate Tribunal; 4[(fa)”beneficial owner” means an individual who ultimately owns or controls a client of a reporting entity or the person on whose behalf a transaction is being conducted and includes a person who exercises ultimate effective control over a juridical person;] (g) “Chairperson” means the Chairperson of the Appellate Tribunal; (h) “chit fund company” means a company managing, conducting or supervising, as foreman, agent or in any other capacity, chits as defined in section 2 of the Chit Funds Act, 1982 (40 of 1982); 1. 1st July, 2005, vide notification No. G.S.R. 436(E), dated 1st July, 2005, see Gazette of India, Extraordinary, Part II, sec. 3(i). 2. Subs. by Act 28 of 2016, s. 232, for “established under” (w.e.f. 1-6-2016). 3. Ins. by Act 21 of 2009, s. 2 (w.e.f. 1-6-2009). 4. Ins. by Act 2 of 2013, s. 2 (w.e.f. 15-2-2013). ----- 1[(ha)”client” means a person who is engaged in a financial transaction or activity with a reporting entity and includes a person on whose behalf the person who engaged in the transaction or activity, is acting;] (i) “co-operative bank” shall have the same meaning as assigned to it in clause (dd) of section 2 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961); 1[(ia)”corresponding law” means any law of any foreign country corresponding to any of the provisions of this Act or dealing with offences in that country corresponding to any of the scheduled offences; _(ib)”dealer” has the same meaning as assigned to it in clause_ _(b) of section 2 of the_ Central Sales Tax Act, 1956 (74 of 1956);] (j) “Deputy Director” means a Deputy Director appointed under sub-section (1) of section 49; 2* - - - (k) “Director” or “Additional Director” or “Joint Director” means a Director or Additional Director or Joint Director, as the case may be, appointed under sub-section (1) of section 49; 3[(l) “financial institution” means a financial institution as defined in clause (c) of section 45-1 of the Reserve Bank of India Act, 1934 (2 of 1934) and includes a chit fund company, a housing finance institution, an authorised person, a payment system operator, a non-banking financial company and the Department of Posts in the Government of India;] (m) “housing finance institution” shall have the meaning as assigned to it in clause (d) of section 2 of the National Housing Bank Act, 1987 (53 of 1987); 4[(n) “intermediary” means,— (i) a stock-broker, [5]*** share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser or any other intermediary associated with securities market and registered under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); or (ii) an association recognised or registered under the Forward Contracts (Regulation) Act, 1952 (74 of 1952) or any member of such association; or (iii) intermediary registered by the Pension Fund Regulatory and Development Authority; or (iv) a recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);] 6[(na) “investigation” includes all the proceedings under this Act conducted by the Director or by an authority authorised by the Central Government under this Act for the collection of evidence;] (o) “Member” means a Member of the Appellate Tribunal and includes the Chairperson; (p) “money-laundering” has the meaning assigned to it in section 3; (q) “non-banking financial company” shall have the same meaning as assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934) [7***]; (r) “notification” means a notification published in the Official Gazette; 1. Ins. by Act 2 of 2013, s. 2 (w.e.f. 15-2-2013). 2. Clause (ja) omitted by s. 2, ibid. (w.e.f. 15-2-2013). 3. Subs. by s. 2, ibid., for clause (l) (w.e.f. 15-2-2013). 4. Subs. by s. 2, ibid., for clause (n) (w.e.f. 15-2-2013). 5. The word “sub-broker,” omitted by Act 23 of 2019, s. 192 (w.e.f. 1-8-2019). 6. Ins. by Act 20 of 2005, s. 2 (w.e.f. 1-7-2005). 7. The words “and includes a person carrying on designated business or profession” omitted by Act 2 of 2013, s. 2 (w.e.f. 15-2-2013). ----- 1[(ra) “offence of cross border implications”, means— (i) any conduct by a person at a place outside India which constitutes an offence at that place and which would have constituted an offence specified in Part A, Part B or Part C of the Schedule, had it been committed in India and if such person [2][transfers in any manner] the proceeds of such conduct or part thereof to India; or (ii) any offence specified in Part A, Part B or Part C of the Schedule which has been committed in India and the proceeds of crime, or part thereof have been transferred to a place outside India or any attempt has been made to transfer the proceeds of crime, or part thereof from India to a place outside India. _Explanation.—Nothing contained in this clause shall adversely affect any investigation,_ enquiry, trial or proceeding before any authority in respect of the offences specified in Part A or Part B of the Schedule to the Act before the commencement of the Prevention of Moneylaundering (Amendment) Act, 2009 (21 of 2009); (rb) “payment system” means a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them. _Explanation.—For the purposes of this clause, “payment system” includes the systems_ enabling credit card operations, debit card operations, smart card operations, money transfer operations or similar operations; (rc) “payment system operator” means a person who operates a payment system and such person includes his overseas principal. _Explanation.—For the purposes of this clause, “overseas principal” means,—_ (A) in the case of a person, being an individual, such individual residing outside India, who owns or controls or manages, directly or indirectly, the activities or functions of payment system in India; (B) in the case of a Hindu undivided family, Karta of such Hindu undivided family residing outside India who owns or controls or manages, directly or indirectly, the activities or functions of payment system in India; (C) in the case of a company, a firm, an association of persons, a body of individuals, an artificial juridical person, whether incorporated or not, such company, firm, association of persons, body of individuals, artificial juridical person incorporated or registered outside India or existing as such and which owns or controls or manages, directly or indirectly, the activities or functions of payment system in India;] (s) “person” includes— (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether incorporated or not, (vi) every artificial juridical person not falling within any of the preceding sub-clauses, and (vii) any agency, office or branch owned or controlled by any of the above persons mentioned in the preceding sub-clauses; 1. Ins. by Act 21 of 2009, s. 2 (w.e.f. 1-6-2009). 2. Subs. by Act 2 of 2013, s. 2, for “remits” (w.e.f. 15-2-2013). ----- 1[(sa) “person carrying on designated business or profession” means,— (i) a person carrying on activities for playing games of chance for cash or kind, and includes such activities associated with casino; 2[(ii) Inspector-General of Registration appointed under section 3 of the Registration Act, 1908 (16 of 1908) as may be notified by the Central Government;] (iii) real estate agent, as may be notified by the Central Government; (iv) dealer in precious metals, precious stones and other high value goods, as may be notified by the Central Government; (v) person engaged in safekeeping and administration of cash and liquid securities on behalf of other persons, as may be notified by the Central Government; or (vi) person carrying on such other activities as the Central Government may, by notification, so designate, from time to time; _(sb) “precious metal” means gold, silver, platinum, palladium or rhodium or such other metal as_ may be notified by the Central Government; _(sc)”precious stone” means diamond, emerald, ruby, sapphire or any such other stone as may be_ notified by the Central Government;] (t) “prescribed” means prescribed by rules made under this Act; (u) “proceeds of crime” means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property 3[or where such property is taken or held outside the country, then the property equivalent in value held within the country] [4][or abroad]; 5[Explanation.—For the removal of doubts, it is hereby clarified that “proceeds of crime” include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence;] (v) “property” means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible and includes deeds and instruments evidencing title to, or interest in, such property or assets, wherever located; 1[Explanation.—For the removal of doubts, it is hereby clarified that the term “property” includes property of any kind used in the commission of an offence under this Act or any of the scheduled offences; (va) “real estate agent” means a real estate agent as defined in clause (88) of section 65 of the Finance Act, 1994 (32 of 1994);] (w) “records” include the records maintained in the form of books or stored in a computer or such other form as may be prescribed; 1[(wa) “reporting entity” means a banking company, financial institution, intermediary or a person carrying on a designated business or profession;] (x) “Schedule” means the Schedule to this Act; (y) “scheduled offence” means— (i) the offences specified under Part A of the Schedule; or 6[(ii) the offences specified under Part B of the Schedule if the total value involved in such offences is [7][one crore rupees] or more; or 1. Ins. by Act 2 of 2013, s. 2 (w.e.f. 15-2-2013). 2. Subs. by Act 23 of 2019, s. 192, for sub-clause (ii) (w.e.f. 1-8-2019). 3. Ins. by Act 20 of 2015, s. 145 (w.e.f. 14-5-2015). 4. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). 5. Ins. by Act 23 of 2019, s. 192 (w.e.f. 1-8-2019). 6. Subs. by Act 21 of 2009, s. 2, for sub-clause (ii) (w.e.f. 1-6-2009). 7. Subs. by Act 20 of 2015, s. 145, for “thirty lakh rupees” (w.e.f. 14-5-2015). ----- (iii) the offences specified under Part C of the Schedule.] (z) “Special Court” means a Court of Session designated as Special Court under sub-section (1) of section 43; (za) “transfer” includes sale, purchase, mortgage, pledge, gift, loan or any other form of transfer of right, title, possession or lien; (zb) “value” means the fair market value of any property on the date of its acquisition by any person, or if such date cannot be determined, the date on which such property is possessed by such person. (2) Any reference, in this Act or the Schedule, to any enactment or any provision thereof shall, in relation to an area in which such enactment or such provision is not in force, be construed as a reference to the corresponding law or the relevant provisions of the corresponding law, if any, in force in that area. CHAPTER II OFFENCE OF MONEY-LAUNDERING **3. Offence of money-laundering.—Whosoever directly or indirectly attempts to indulge or** knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the [1][proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming] it as untainted property shall be guilty of offence of money-laundering. 2[Explanation.—For the removal of doubts, it is hereby clarified that,— (i) a person shall be guilty of offence of money-laundering if such person is found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually involved in one or more of the following processes or activities connected with proceeds of crime, namely:— (a) concealment; or (b) possession; or (c) acquisition; or (d) use; or (e) projecting as untainted property; or (f) claiming as untainted property, in any manner whatsoever; (ii) the process or activity connected with proceeds of crime is a continuing activity and continues till such time a person is directly or indirectly enjoying the proceeds of crime by its concealment or possession or acquisition or use or projecting it as untainted property or claiming it as untainted property in any manner whatsoever.] **4. Punishment for money-laundering.—Whoever commits the offence of money-laundering shall** be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine [3]***: Provided that where the proceeds of crime involved in money-laundering relates to any offence specified under paragraph 2 of Part A of the Schedule, the provisions of this section shall have effect as if for the words “which may extend to seven years”, the words “which may extend to ten years” had been substituted. CHAPTER III # ATTACHMENT, ADJUDICATION AND CONFISCATION **5. Attachment of property involved in money-laundering.—[4][(1)Where the Director or any other** officer not below the rank of Deputy Director authorised by the Director for the purposes of this 1. Subs. by Act 2 of 2013, s. 3, for “proceeds of crime and projecting” (w.e.f. 15-2-2013). 2. Ins. by Act 23 of 2019, s. 193 (w.e.f. 1-8-2019). 3. The words “which may extend to five lakh rupees” omitted by Act 2 of 2013, s. 4 (w.e.f. 15-2-2013). 4. Subs. by s. 5, ibid., for sub-section (1) (w.e.f. 15-2-2013). ----- section, has reason to believe (the reason for such belief to be recorded in writing), on the basis of material in his possession, that— (a) any person is in possession of any proceeds of crime; and (b) such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime under this Chapter, he may, by order in writing, provisionally attach such property for a period not exceeding one hundred and eighty days from the date of the order, in such manner as may be prescribed: Provided that no such order of attachment shall be made unless, in relation to the scheduled offence, a report has been forwarded to a Magistrate under section 173 of the Code of Criminal Procedure, 1973 (2 of 1974), or a complaint has been filed by a person authorised to investigate the offence mentioned in that Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as the case may be, or a similar report or complaint has been made or filed under the corresponding law of any other country: Provided further that, notwithstanding anything contained in [1][first proviso], any property of any person may be attached under this section if the Director or any other officer not below the rank of Deputy Director authorised by him for the purposes of this section has reason to believe (the reasons for such belief to be recorded in writing), on the basis of material in his possession, that if such property involved in money-laundering is not attached immediately under this Chapter, the non-attachment of the property is likely to frustrate any proceeding under this Act:] 2[Provided also that for the purposes of computing the period of one hundred and eighty days, the period during which the proceedings under this section is stayed by the High Court, shall be excluded and a further period not exceeding thirty days from the date of order of vacation of such stay order shall be counted.]; (2) The Director, or any other officer not below the rank of Deputy Director, shall, immediately after attachment under sub-section (1), forward a copy of the order, along with the material in his possession, referred to in that sub-section, to the Adjudicating Authority, in a sealed envelope, in the manner as may be prescribed and such Adjudicating Authority shall keep such order and material for such period as may be prescribed. (3) Every order of attachment made under sub-section (1) shall cease to have effect after the expiry of the period specified in that sub-section or on the date of an order made under [3][sub-section (3)] of section 8, whichever is earlier. (4) Nothing in this section shall prevent the person interested in the enjoyment of the immovable property attached under sub-section (1) from such enjoyment. _Explanation.—For the purposes of this sub-section, “person interested”, in relation to any immovable_ property, includes all persons claiming or entitled to claim any interest in the property. (5) The Director or any other officer who provisionally attaches any property under sub-section (1) shall, within a period of thirty days from such attachment, file a complaint stating the facts of such attachment before the Adjudicating Authority. **6. Adjudicating Authorities, composition, powers, etc.—(1) The Central Government shall, by** notification, appoint [4][an Adjudicating Authority] to exercise jurisdiction, powers and authority conferred by or under this Act. (2) An Adjudicating Authority shall consist of a Chairperson and two other Members: 1. Subs. by Act 20 of 2015, s. 146, for “clause (b)” (w.e.f. 14-5-2015). 2. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). 3. Subs. by s. 208, ibid., for “sub-section (2)” (w.e.f. 19-4-2018). 4. Subs. by Act 21 of 2009, s. 4, for “one or more Adjudicating Authorities” (w.e.f. 1-6-2009). ----- Provided that one Member each shall be a person having experience in the field of law, administration, finance or accountancy. (3) A person shall, however, not be qualified for appointment as Member of an Adjudicating Authority,— (a) in the field of law, unless he— (i) is qualified for appointment as District Judge; or (ii) has been a member of the Indian Legal Service and has held a post in Grade I of that service; (b) in the field of finance, accountancy or administration unless he possesses such qualifications, as may be prescribed. (4) The Central Government shall appoint a Member to be the Chairperson of the Adjudicating Authority. (5) Subject to the provisions of this Act,— (a) the jurisdiction of the Adjudicating Authority may be exercised by Benches thereof; (b) a Bench may be constituted by the Chairperson of the Adjudicating Authority with one or two Members as the Chairperson of the Adjudicating Authority may deem fit; (c) the Benches of the Adjudicating Authority shall ordinarily sit at New Delhi and at such other places as the Central Government may, in consultation with the Chairperson, by notification, specify; (d) the Central Government shall, by notification, specify the areas in relation to which each Bench of the Adjudicating Authority may exercise jurisdiction. (6) Notwithstanding anything contained in sub-section (5), the Chairperson may transfer a Member from one Bench to another Bench. (7) If at any stage of the hearing of any case or matter it appears to the Chairperson or a Member that the case or matter is of such a nature that it ought to be heard by a Bench consisting of two Members, the case or matter may be transferred by the Chairperson or, as the case may be, referred to him for transfer, to such Bench as the Chairperson may deem fit. (8) The Chairperson and every Member shall hold office as such for a term of five years from the date on which he enters upon his office: Provided that no Chairperson or other Member shall hold office as such after he has attained the age of [1][sixty-five] years. (9) The salary and allowances payable to and the other terms and conditions of service of the Member shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of the Member shall be varied to his disadvantage after appointment. (10) If, for reasons other than temporary absence, any vacancy occurs in the office of the Chairperson or any other Member, then, the Central Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Adjudicating Authority from the stage at which the vacancy is filled. (11) The Chairperson or any other Member may, by notice in writing under his hand addressed to the Central Government, resign his office: Provided that the Chairperson or any other Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. (12) The Chairperson or any other Member shall not be removed from his office except by an order made by the Central Government after giving necessary opportunity of hearing. 1. Subs. by Act 21 of 2009, s. 4, for “sixty-two” (w.e.f. 1-6-2009). ----- (13) In the event of the occurrence of any vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the senior-most Member shall act as the Chairperson of the Adjudicating Authority until the date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office. (14) When the Chairperson of the Adjudicating Authority is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member shall discharge the functions of the Chairperson of the Adjudicating Authority until the date on which the Chairperson of the Adjudicating Authority resumes his duties. (15) The Adjudicating Authority shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Adjudicating Authority shall have powers to regulate its own procedure. **7. Staff of Adjudicating Authorities.—(1) The Central Government shall provide each Adjudicating** Authority with such officers and employees as that Government may think fit. (2) The officers and employees of the Adjudicating Authority shall discharge their functions under the general superintendence of the Chairperson of the Adjudicating Authority. (3) The salaries and allowances and other conditions of service of the officers and employees of the Adjudicating Authority shall be such as may be prescribed. **8. Adjudication.—(1) On receipt of a complaint under sub-section (5) of section 5, or applications made** under sub-section (4) of section 17 or under sub-section (10) of section 18, if the Adjudicating Authority has reason to believe that any person has committed an [1][offence under section 3 or is in possession of proceeds of crime], it may serve a notice of not less than thirty days on such person calling upon him to indicate the sources of his income, earning or assets, out of which or by means of which he has acquired the property attached under sub-section (1) of section 5, or, seized [2][or frozen] under section 17 or section 18, the evidence on which he relies and other relevant information and particulars, and to show cause why all or any of such properties should not be declared to be the properties involved in money-laundering and confiscated by the Central Government: Provided that where a notice under this sub-section specifies any property as being held by a person on behalf of any other person, a copy of such notice shall also be served upon such other person: Provided further that where such property is held jointly by more than one person, such notice shall be served to all persons holding such property. (2) The Adjudicating Authority shall, after— (a) considering the reply, if any, to the notice issued under sub-section (1); (b) hearing the aggrieved person and the Director or any other officer authorised by him in this behalf; and (c) taking into account all relevant materials placed on record before him, by an order, record a finding whether all or any of the properties referred to in the notice issued under sub-section (1) are involved in money-laundering: Provided that if the property is claimed by a person, other than a person to whom the notice had been issued, such person shall also be given an opportunity of being heard to prove that the property is not involved in money-laundering. (3) Where the Adjudicating Authority decides under sub-section (2) that any property is involved in money-laundering, he shall, by an order in writing, confirm the attachment of the property made under sub-section (1) of section 5 or retention of property or [3][record seized or frozen under section 17 or section 18 and record a finding to that effect, whereupon such attachment or retention or freezing of the seized or frozen property] or record shall— 1. Subs. by Act 21 of 2009, s. 5, for “offence under section 3” (w.e.f. 1-6-2009). 2. Ins. by Act 2 of 2013, s. 6 (w.e.f. 15-2-2013). 3. Subs. by s. 6, ibid., for certain words and figures (w.e.f. 15-2-2013). ----- (a) continue during [1][investigation for a period not exceeding [2][three hundred and sixty-five days] or] the pendency of the proceedings relating to any [3][offence under this Act before a court or under the corresponding law of any other country, before the competent court of criminal jurisdiction outside India, as the case may be; and] 4[(b) become final after an order of confiscation is passed under sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60 by the [5][Special Court];] 6[Explanation.—For the purposes of computing the period of three hundred and sixty-five days under clause (a), the period during which the investigation is stayed by any court under any law for the time being in force shall be excluded.] (4) Where the provisional order of attachment made under sub-section (1) of section 5 has been confirmed under sub-section (3), the Director or any other officer authorised by him in this behalf shall forthwith take the [7][possession of the property attached under section 5 or frozen under sub-section (1A) of section 17, in such manner as may be prescribed: Provided that if it is not practicable to take possession of a property frozen under sub-section (1A) of section 17, the order of confiscation shall have the same effect as if the property had been taken possession of.] 8[(5) Where on conclusion of a trial of an offence under this Act, the Special Court finds that the offence of money-laundering has been committed, it shall order that such property involved in the moneylaundering or which has been used for commission of the offence of money-laundering shall stand confiscated to the Central Government. (6) Where on conclusion of a trial under this Act, the Special Court finds that the offence of money laundering has not taken place or the property is not involved in money-laundering, it shall order release of such property to the person entitled to receive it. (7) Where the trial under this Act cannot be conducted by reason of the death of the accused or the accused being declared a proclaimed offender or for any other reason or having commenced but could not be concluded, the Special Court shall, on an application moved by the Director or a person claiming to be entitled to possession of a property in respect of which an order has been passed under sub-section (3) of section 8, pass appropriate orders regarding confiscation or release of the property, as the case may be, involved in the offence of money-laundering after having regard to the material before it.] 9[(8) Where a property stands confiscated to the Central Government under sub-section (5), the Special Court, in such manner as may be prescribed, may also direct the Central Government to restore such confiscated property or part thereof of a claimant with a legitimate interest in the property, who may have suffered a quantifiable loss as a result of the offence of money laundering: Provided that the Special Court shall not consider such claim unless it is satisfied that the claimant has acted in good faith and has suffered the loss despite having taken all reasonable precautions and is not involved in the offence of money-laundering:] 1[Provided further that the Special Court may, if it thinks fit, consider the claim of the claimant for the purposes of restoration of such properties during the trial of the case in such manner as may be prescribed.] **9. Vesting of property in Central Government.—Where an order of confiscation has been made** under [10][sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60] in 1. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). 2. Subs. by Act 7 of 2019, s. 22, for “ninety days” (w.e.f. 20-3-2019). 3. Subs. by Act 2 of 2013, s. 6, for “scheduled offence before a court; and” (w.e.f. 15-2-2013). 4. Subs. by s. 6, ibid., for clause (b) (w.e.f. 15-2-2013). 5. Subs. by Act 20 of 2015, s. 147, for “Adjudicating Authority” (w.e.f. 14-5-2015). 6. Ins. by Act 7 of 2019, s. 22 (w.e.f. 20-3-2019). 7. Subs. by Act 2 of 2013, s. 6, for “possession of the attached property” (w.e.f. 15-2-2013). 8. Subs. by s. 6, ibid., for sub-sections (5) and (6) (w.e.f. 15-2-2013). 9. Ins. by Act 20 of 2015, s. 147 (w.e.f. 14-5-2015). 10. Subs. by Act 2 of 2013, s. 7, for “sub-section (6) of section 8” (w.e.f. 15-2-2013). ----- respect of any property of a person, all the rights and title in such property shall vest absolutely in the Central Government free from all encumbrances: Provided that where the [1][Special Court or the Adjudicating Authority, as the case may be,] after giving an opportunity of being heard to any other person interested in the property attached under this Chapter, or seized [2][or frozen] under Chapter V, is of the opinion that any encumbrance on the property or lease-hold interest has been created with a view to defeat the provisions of this Chapter, it may, by order, declare such encumbrance or lease-hold interest to be void and thereupon the aforesaid property shall vest in the Central Government free from such encumbrances or lease-hold interest: Provided further that nothing in this section shall operate to discharge any person from any liability in respect of such encumbrances which may be enforced against such person by a suit for damages. **10. Management of properties confiscated under this Chapter.—(1) The Central Government** may, by order published in the Official Gazette, appoint as many of its officers (not below the rank of a Joint Secretary to the Government of India) as it thinks fit to perform the functions of an Administrator. (2) The Administrator appointed under sub-section (1) shall receive and manage the property in relation to which an order has been made under [3][sub-section (5) or sub-section (6) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60] in such manner and subject to such conditions as may be prescribed. (3) The Administrator shall also take such measures, as the Central Government may direct, to dispose of the property which is vested in the Central Government under section 9. **11. Power regarding summons, production of documents and evidence, etc.—(1) The** Adjudicating Authority shall, for the purposes of this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following matters, namely:— (a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a banking company or a financial institution or a company, and examining him on oath; (c) compelling the production of records; (d) receiving evidence on affidavits; (e) issuing commissions for examination of witnesses and documents; and (f) any other matter which may be prescribed. (2) All the persons so summoned shall be bound to attend in person or through authorised agents, as the Adjudicating Authority may direct, and shall be bound to state the truth upon any subject respecting which they are examined or make statements, and produce such documents as may be required. (3) Every proceeding under this section shall be deemed to be a judicial proceeding within the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860). CHAPTER IV OBLIGATIONS OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES **4[11A. Verification of Identity by Reporting Entity.—(1) Every Reporting Entity shall verify the** identity of its clients and the beneficial owner, by— (a) authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016) if the reporting entity is a banking company; or 1. Subs. by Act 2 of 2013, s. 7, for “Adjudicating Authority” (w.e.f. 15-2-2013). 2. Ins. by s.7, ibid. (w.e.f. 15-2-2013). 3. Subs. by s. 8, ibid., for “sub-section (6) of section 8” (w.e.f. 15-2-2013). 4. Ins. by Act 14 of 2019, s. 27 (w.e.f. 25-07-2019). ----- (b) offline verification under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016); or (c) use of passport issued under section 4 of the Passports Act, 1967 (15 of 1967); or (d) use of any other officially valid document or modes of identification as may be notified by the Central Government in this behalf: Provided that the Central Government may, if satisfied that a reporting entity other than banking company, complies with such the standards of privacy and security under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016), and it is necessary and expedient to do so, by notification, permit such entity to perform authentication under clause (a): Provided further that no notification under the first proviso shall be issued without consultation with the Unique Identification Authority of India established under sub-section (1) of section 11 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016) and the appropriate regulator. (2) If any reporting entity performs authentication under clause (a) of sub-section (1), to verify the identity of its client or the beneficial owner it shall make the other modes of identification under clauses (b), (c) and (d) of sub-section (1) also available to such client or the beneficial owner. (3) The use of modes of identification under sub-section (1) shall be a voluntary choice of every client or beneficial owner who is sought to be identified and no client or beneficial owner shall be denied services for not having an Aadhaar number. (4) If, for identification of a client or beneficial owner, authentication or offline verification under clause (a) or clause (b) of sub-section (1) is used, neither his core biometric information nor his Aadhaar number shall be stored. (5) Nothing in this section shall prevent the Central Government from notifying additional safeguards on any reporting entity in respect of verification of the identity of its client or beneficial owner. _Explanation.—The expressions “Aadhaar number” and “core biometric information” shall have the_ same meanings as are respectively assigned to them in clauses (a) and (j) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016).] 1[12. Reporting entity to maintain records.—(1) Every reporting entity shall— (a) maintain a record of all transactions, including information relating to transactions covered under clause (b), in such manner as to enable it to reconstruct individual transactions; (b) furnish to the Director within such time as may be prescribed, information relating to such transactions, whether attempted or executed, the nature and value of which may be prescribed; 2* - - - (e) maintain record of documents evidencing identity of its clients and beneficial owners as well as account files and business correspondence relating to its clients. (2) Every information maintained, furnished or verified, save as otherwise provided under any law for the time being in force, shall be kept confidential. (3) The records referred to in clause (a) of sub-section (1) shall be maintained for a period of five years from the date of transaction between a client and the reporting entity. (4) The records referred to in clause (e) of sub-section (1) shall be maintained for a period of five years after the business relationship between a client and the reporting entity has ended or the account has been closed, whichever is later. (5) The Central Government may, by notification, exempt any reporting entity or class of reporting 1. Subs. by Act 2 of 2013, s. 9, for section 12 (w.e.f. 15-2-2013). 2. Clauses (c) and (d) omitted by Act 14 of 2019, s. 28 (w.e.f. 25-07-2019). ----- entities from any obligation under this Chapter.] 1[12A. Access to information.—(1) The Director may call for from any reporting entity any of the records referred to in [2][section 11A, sub-section (1) of section 12, sub-section (1) of section 12AA] and any additional information as he considers necessary for the purposes of this Act. (2) Every reporting entity shall furnish to the Director such information as may be required by him under sub-section (1) within such time and in such manner as he may specify. (3) Save as otherwise provided under any law for the time being in force, every information sought by the Director under sub-section (1), shall be kept confidential.] 3[12AA. Enhanced due diligence.—(1) Every reporting entity shall, prior to the commencement of each specified transaction,— (a) verify the identity of the clients undertaking such specified transaction by authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016) in such manner and subject to such conditions, as may be prescribed: Provided that where verification requires authentication of a person who is not entitled to obtain an Aadhaar number under the provisions of the said Act, verification to authenticate the identity of the client undertaking such specified transaction shall be carried out by such other process or mode, as may be prescribed; (b) take additional steps to examine the ownership and financial position, including sources of funds of the client, in such manner as may be prescribed; (c) take additional steps as may be prescribed to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties. (2) Where the client fails to fulfill the conditions laid down under sub-section (1), the reporting entity shall not allow the specified transaction to be carried out. (3) Where any specified transaction or series of specified transactions undertaken by a client is considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the future monitoring of the business relationship with the client, including greater scrutiny or transactions in such manner as may be prescribed. (4) The information obtained while applying the enhanced due diligence measures under sub-section (1) shall be maintained for a period of five years from the date of transaction between a client and the reporting entity. _Explanation.—For the purposes of this section, “specified transaction” means—_ (a) any withdrawal or deposit in cash, exceeding such amount; (b) any transaction in foreign exchange, exceeding such amount; (c) any transaction in any high value imports or remittances; (d) such other transaction or class of transactions, in the interest of revenue or where there is a high risk or money-laundering or terrorist financing, as may be prescribed.] **13. Powers of Director to impose fine.—(1) The Director may, either of his own motion or on an** application made by any authority, officer or person, [4][make such inquiry or cause such inquiry to be 1. Ins. by Act 2 of 2013, s. 10 (w.e.f. 15-2-2013). 2. Subs. by Act 23 of 2019, s. 194, for “sub-section (1) of section 12” (w.e.f. 1-8-2019). 3. Ins. s. 195, ibid. (w.e.f. 1-8-2019). 4. Subs. by Act 2 of 2013, s. 11, for certain words, brackets and figures (w.e.f. 15-2-2013). ----- made, as he thinks fit to be necessary, with regard to the obligations of the reporting entity, under this Chapter]. 1[(1A) If at any stage of inquiry or any other proceedings before him, the Director having regard to the nature and complexity of the case, is of the opinion that it is necessary to do so, he may direct the concerned reporting entity to get its records, as may be specified, audited by an accountant from amongst a panel of accountants, maintained by the Central Government for this purpose. _(1B)The expenses of, and incidental to, any audit under sub-section (1A) shall be borne by the Central_ Government.] 2[(2) If the Director, in the course of any inquiry, finds that a reporting entity or its designated director on the Board or any of its employees has failed to comply with the obligations under this Chapter, then, without prejudice to any other action that may be taken under any other provisions of this Act, he may— (a) issue a warning in writing; or (b) direct such reporting entity or its designated director on the Board or any of its employees, to comply with specific instructions; or (c) direct such reporting entity or its designated director on the Board or any of its employees, to send reports at such interval as may be prescribed on the measures it is taking; or (d) by an order, impose a monetary penalty on such reporting entity or its designated director on the Board or any of its employees, which shall not be less than ten thousand rupees but may extend to one lakh rupees for each failure.] (3) The Director shall forward a copy of the order passed under sub-section (2) to every banking company, financial institution or intermediary or person who is a party to the proceedings under that sub-section. 3[Explanation.—For the purpose of this section, “accountant” shall mean a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949).] 4[14. No civil or criminal proceedings against reporting entity, its directors and employees in **certain cases.—Save as otherwise provided in section 13, the reporting entity, its directors and** employees shall not be liable to any civil or criminal proceedings against them for furnishing information under clause (b) of sub-section (1) of section 12.] 5[15. Procedure and manner of furnishing information by reporting entities.— The Central Government may, in consultation with the Reserve Bank of India, prescribe the procedure and the manner of maintaining and furnishing information by a reporting entity under [6][section 11A, sub-section (1) of section 12 and sub-section (1) of section 12AA] for the purpose of implementing the provisions of this Act.] CHAPTER V SUMMONS, SEARCHES AND SEIZURES, ETC. **16. Power of survey.—(1) Notwithstanding anything contained in any other provisions of this Act,** where an authority, on the basis of material in his possession, has reason to believe (the reasons for such belief to be recorded in writing) that an offence under section 3 has been committed, he may enter any place— (i) within the limits of the area assigned to him; or 1. Ins. by Act 2 of 2013, s. 11, (w.e.f. 15-2-2013). 2. Subs. by s. 11, ibid., for sub-section (2) (w.e.f. 15-2-2013). 3. Ins. by Act 2 of 2013, s. 11 (w.e.f. 15-2-2013). 4. Subs. by s. 12, ibid., for section 14 (w.e.f. 15-2-2013). 5. Subs. by s. 13, ibid., for section 15 (w.e.f. 15-2-2013). 6. Subs. by Act 23 of 2019, s. 196, for “sub-section (1) of section 12” (w.e.f. 1-8-2019). ----- (ii) in respect of which he is authorised for the purposes of this section by such other authority, who is assigned the area within which such place is situated, at which any act constituting the commission of such offence is carried on, and may require any proprietor, employee or any other person who may at that time and place be attending in any manner to, or helping in, such act so as to,— (i) afford him the necessary facility to inspect such records as he may require and which may be available at such place; (ii) afford him the necessary facility to check or verify the proceeds of crime or any transaction related to proceeds of crime which may be found therein; and (iii) furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceedings under this Act. _Explanation—For the purposes of this sub-section, a place, where an act which constitutes the_ commission of the offence is carried on, shall also include any other place, whether any activity is carried on therein or not, in which the person carrying on such activity states that any of his records or any part of his property relating to such act are or is kept. (2) The authority referred to in sub-section (1) shall, after entering any place referred to in that sub-section immediately after completion of survey, forward a copy of the reasons so recorded along with material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner as may be prescribed and such Adjudicating Authority shall keep such reasons and material for such period as may be prescribed. (3) An authority acting under this section may— (i) place marks of identification on the records inspected by him and make or cause to be made extracts or copies there from, (ii) make an inventory of any property checked or verified by him, and (iii) record the statement of any person present in the place which may be useful for, or relevant to, any proceeding under this Act. **17. Search and seizure.—(1) Where [1][the Director or any other officer not below the rank of Deputy** Director authorised by him for the purposes of this section,] on the basis of information in his possession, has reason to believe (the reason for such belief to be recorded in writing) that any person— (i) has committed any act which constitutes money-laundering, or (ii) is in possession of any proceeds of crime involved in money-laundering, or (iii) is in possession of any records relating to money-laundering,[2][or] 2[(iv) is in possession of any property related to crime,] then, subject to the rules made in this behalf, he may authorise any officer subordinate to him to— (a) enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such records or proceeds of crime are kept; (b) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (a) where the keys thereof are not available; (c) seize any record or property found as a result of such search; (d) place marks of identification on such record or [2][property, if required or] make or cause to be made extracts or copies therefrom; 1. Subs. by Act 21 of 2009, s. 7, for “the Director” (w.e.f. 1-6-2009). 2. Ins. by Act 2 of 2013, s. 14 (w.e.f. 15-2-2013). ----- (e) make a note or an inventory of such record or property; (f) examine on oath any person, who is found to be in possession or control of any record or property, in respect of all matters relevant for the purposes of any investigation under this Act: 1* - - - 2[(1A) Where it is not practicable to seize such record or property, the officer authorised under sub-section (1), may make an order to freeze such property whereupon the property shall not be transferred or otherwise dealt with, except with the prior permission of the officer making such order, and a copy of such order shall be served on the person concerned: Provided that if, at any time before its confiscation under sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60, it becomes practical to seize a frozen property, the officer authorised under sub-section (1) may seize such property.] (2) The authority, who has been authorised under sub-section (1) shall, immediately after search and seizure [2][or upon issuance of a freezing order], forward a copy of the reasons so recorded along with material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such reasons and material for such period, as may be prescribed. (3) Where an authority, upon information obtained during survey under section 16, is satisfied that any evidence shall be or is likely to be concealed or tampered with, he may, for reasons to be recorded in writing, enter and search the building or place where such evidence is located and seize that evidence: Provided that no authorisation referred to in sub-section (1) shall be required for search under this sub-section. 3[(4) The authority seizing any record or property under sub-section (1) or freezing any record or property under sub-section (1A) shall, within a period of thirty days from such seizure or freezing, as the case may be, file an application, requesting for retention of such record or property seized under sub-section (1) or for continuation of the order of freezing served under sub-section (1A), before the Adjudicating Authority.] **18. Search of persons.—(1) If an authority, authorised in this behalf by the Central Government by** general or special order, has reason to believe (the reason for such belief to be recorded in writing) that any person has secreted about his person or in anything under his possession, ownership or control, any record or proceeds of crime which may be useful for or relevant to any proceedings under this Act, he may search that person and seize such record or property which may be useful for or relevant to any proceedings under this Act: 4* - - - (2) The authority, who has been authorised under sub-section (1) shall, immediately after search and seizure, forward a copy of the reasons so recorded along with material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such reasons and material for such period, as may be prescribed. (3) Where an authority is about to search any person, he shall, if such person so requires, take such person within twenty-four hours to the nearest Gazetted Officer, superior in rank to him, or a Magistrate: Provided that the period of twenty-four hours shall exclude the time necessary for the journey undertaken to take such person to the nearest Gazetted Officer, superior in rank to him, or Magistrate’s Court. 1. The Proviso omitted by Act 23 of 2019, s. 197 (w.e.f. 1-8-2019). 2. Ins. by Act 2 of 2013, s. 14 (w.e.f. 15-2-3013). 3. Subs. by s. 14, ibid., for sub-section (4) (w.e.f. 15-2-2013). 4. The proviso omitted by Act 23 of 2019, s. 198 (w.e.f. 1-8-2019). ----- (4) If the requisition under sub-section (3) is made, the authority shall not detain the person for more than twenty-four hours prior to taking him before the Gazetted Officer, superior in rank to him, or the Magistrate referred to in that sub-section: Provided that the period of twenty-four hours shall exclude the time necessary for the journey from the place of detention to the office of the Gazetted Officer, superior in rank to him, or the Magistrate’s Court. (5) The Gazetted Officer or the Magistrate before whom any such person is brought shall, if he sees no reasonable ground for search, forthwith discharge such person but otherwise shall direct that search be made. (6) Before making the search under sub-section (1) or sub-section (5), the authority shall call upon two or more persons to attend and witness the search, and the search shall be made in the presence of such persons. (7) The authority shall prepare a list of record or property seized in the course of the search and obtain the signatures of the witnesses on the list. (8) No female shall be searched by any one except a female. (9) The authority shall record the statement of the person searched under sub-section (1) or sub-section (5) in respect of the records or proceeds of crime found or seized in the course of the search: 1* - - - (10) The authority, seizing any record or property under sub-section (1) shall, within a period of thirty days from such seizure, file an application requesting for retention of such record or property, before the Adjudicating Authority. **19. Power to arrest.—(1) If the Director, Deputy Director, Assistant Director or any other officer** authorised in this behalf by the Central Government by general or special order, has on the basis of material in his possession, reason to believe (the reason for such belief to be recorded in writing) that any person has been guilty of an offence punishable under this Act, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest. (2) The Director, Deputy Director, Assistant Director or any other officer shall, immediately after arrest of such person under sub-section (1), forward a copy of the order along with the material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such order and material for such period, as may be prescribed. (3) Every person arrested under sub-section (1) shall, within twenty-four hours, be taken to a 2[Special Court or] Judicial Magistrate or a Metropolitan Magistrate, as the case may be, having jurisdiction: Provided that the period of twenty-four hours shall exclude the time necessary for the journey from the place of arrest to the [2][Special Court or] Magistrate’s Court. 3[20. Retention of property.—(1) Where any property has been seized under section 17 or section 18 or frozen under sub-section (1A) of section 17 and the officer authorised by the Director in this behalf has, on the basis of material in his possession, reason to believe (the reason for such belief to be recorded by him in writing) that such property is required to be retained for the purposes of adjudication under section 8, such property may, if seized, be retained or if frozen, may continue to remain frozen, for a period not exceeding one hundred and eighty days from the day on which such property was seized or frozen, as the case may be. _(2) The officer authorised by the Director shall, immediately after he has passed an order for retention_ or continuation of freezing of the property for purposes of adjudication under section 8, forward a copy of the order along with the material in his possession, referred to in sub-section (1), to the Adjudicating 1. The proviso omitted by Act 21 of 2009 s. 8 (w.e.f. 1-6-2009). 2. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). 3. Subs. by Act 2 of 2013, s.16, for sections 20 and 21 (w.e.f. 15-2-2013). ----- Authority, in a sealed envelope, in the manner as may be prescribed and such Adjudicating Authority shall keep such order and material for such period as may be prescribed. (3) On the expiry of the period specified in sub-section (1), the property shall be returned to the person from whom such property was seized or whose property was ordered to be frozen unless the Adjudicating Authority permits retention or continuation of freezing of such property beyond the said period. (4) The Adjudicating Authority, before authorising the retention or continuation of freezing of such property beyond the period specified in sub-section (1), shall satisfy himself that the property is _prima facie involved in money-laundering and the property is required for the purposes of adjudication_ under section 8. (5) After passing the order of confiscation under sub-section (5) or sub-section (7) of section 8, 1[Special Court], shall direct the release of all property other than the property involved in money-laundering to the person from whom such property was seized or the persons entitled to receive it. (6) Where an order releasing the property has been made by the [2][Special Court] under sub-section (6) of section 8 or by the Adjudicating Authority under section 58B or sub-section (2A) of section 60, the Director or any officer authorised by him in this behalf may withhold the release of any such property for a period of ninety days from the date of [3][receipt of] such order, if he is of the opinion that such property is relevant for the appeal proceedings under this Act. **21. Retention of records.—(1) Where any records have been seized, under section 17 or section 18** or frozen under sub-section (1A) of section 17 and the Investigating Officer or any other officer authorised by the Director in this behalf has reason to believe that any of such records are required to be retained for any inquiry under this Act, such records may if seized, be retained or if frozen, may continue to remain frozen, for a period not exceeding one hundred and eighty days from the day on which such records were seized or frozen, as the case may be. (2) The person, from whom records seized or frozen, shall be entitled to obtain copies of records. (3) On the expiry of the period specified under sub-section (1), the records shall be returned to the person from whom such records were seized or whose records were ordered to be frozen unless the Adjudicating Authority permits retention or continuation of freezing of such records beyond the said period. (4) The Adjudicating Authority, before authorising the retention or continuation of freezing of such records beyond the period specified in sub-section (1), shall satisfy himself that the records are required for the purposes of adjudication under section 8. (5) After passing of an order of confiscation [4][or release under sub-section (5) or sub-section (6) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60], the Adjudicating Authority shall direct the release of the records to the person from whom such records were seized. (6) Where an order releasing the records has been made by the Court [5][Adjudicating Authority under sub-section (5) of section 21], the Director or any other officer authorised by him in this behalf may withhold the release of any such record for a period of ninety days from the date of [6][receipt of] such order, if he is of the opinion that such record is relevant for the appeal proceedings under this Act.] **22. Presumption as to records or property in certain cases.—(1) Where any records or property** are or is found in the possession or control of any person in the course of a survey or a search [7][or where any record or property is produced by any person or has been resumed or seized from the custody or control of any person or has been frozen under this Act or under any other law for the time being in force,] it shall be presumed that— 1. Subs. by Act 20 of 2015, s. 148, for “the Court or the Adjudicating Authority, as the case may be” (w.e.f. 14-5-2015). 2. Subs. by s. 148, ibid., for “Court” (w.e.f. 14-5-2015). 3. Ins. by s. 148, ibid. (w.e.f. 14-5-2015). 4. Subs. by Act 20 of 2015, s. 149, for “under sub-section (5) or sub-section (7) of section 8” (w.e.f. 14-5-2015). 5. Subs. by s. 149, ibid., for certain words, brackets, figures and letters (w.e.f. 14-5-2015). 6. Ins. by s. 149, ibid. (w.e.f. 14-5-2015). 7. Ins. by Act 2 of 2013, s.17 (w.e.f. 15-2-2013). ----- (i) such records or property belong or belongs to such person; (ii) the contents of such records are true; and (iii) the signature and every other part of such records which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person’s handwriting, and in the case of a record, stamped, executed or attested, that it was executed or attested by the person by whom it purports to have been so stamped, executed or attested. (2) Where any records have been received from any place outside India, duly authenticated by such authority or person and in such manner as may be prescribed, in the course of proceedings under this Act, the Special Court, the Appellate Tribunal or the Adjudicating Authority, as the case may be, shall— (a) presume, that the signature and every other part of such record which purports to be in the handwriting of any particular person or which the court may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person’s handwriting; and in the case of a record executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested; (b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence. **23. Presumption in inter-connected transactions.—Where money-laundering involves two or more** inter-connected transactions and one or more such transactions is or are proved to be involved in money-laundering, then for the purposes of adjudication or confiscation [1][under section 8 or for the trial of the money-laundering offence, it shall unless otherwise proved to the satisfaction of the Adjudicating Authority or the Special Court], be presumed that the remaining transactions from part of such inter-connected transactions. 2[24. Burden of proof.—In any proceeding relating to proceeds of crime under this Act,— (a) in the case of a person charged with the offence of money-laundering under section 3, the Authority or Court shall, unless the contrary is proved, presume that such proceeds of crime are involved in money-laundering; and (b) in the case of any other person the Authority or Court, may presume that such proceeds of crime are involved in money-laundering.] CHAPTER VI APPELLATE TRIBUNAL **3[25. Appellate Tribunal.—The Appellate Tribunal constituted under sub-section (1) of section 12 of** the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976) shall be the Appellate Tribunal for hearing appeals against the orders of the Adjudicating Authority and the other authorities under this Act.] **26. Appeal to Appellate Tribunal.—(1) Save as otherwise provided in sub-section (3), the Director** or any person aggrieved by an order made by the Adjudicating Authority under this Act, may prefer an appeal to the Appellate Tribunal. (2) Any [4][reporting entity] aggrieved by any order of the Director made under sub-section (2) of section 13, may prefer an appeal to the Appellate Tribunal. (3) Every appeal preferred under sub-section (1) or sub-section (2) shall be filed within a period of forty-five days from the date on which a copy of the order made by the Adjudicating Authority or Director is received and it shall be in such form and be accompanied by such fee as may be prescribed: 1. Subs. by Act 2 of 2013, s.18, for certain words and figure (w.e.f. 15-2-2013). 2. Subs. by s.19, ibid., for section 24 (w.e.f. 15-2-2013). 3. Subs. by Act 28 of 2016, s. 232, for section 25 (w.e.f. 1-6-2016). 4. Subs. by Act 2 of 2013, s. 20, for “banking company, financial institution or intermediary” (w.e.f. 15-2-2013). ----- Provided that the Appellate Tribunal may, after giving an opportunity of being heard, entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (4) On receipt of an appeal under sub-section (1) or sub-section (2), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (5) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned Adjudicating Authority or the Director, as the case may be. (6) The appeal filed before the Appellate Tribunal under sub-section (1) or sub-section (2) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of filing of the appeal. **27.** [Compositions, etc., of Appellate Tribunal.] Omitted by the Finance Act, 2016 (28 of 2016), _s. 232 (w.e.f. 1-6-2016)._ **28. [Qualifications for appointment.] Omitted by s. 232, ibid. (w.e.f. 1-6-2016).** **29. [Term of office.]** _Omitted by the Prevention of Money-laundering_ **(Amendment)** _Act, 2005_ (20 of 2005), s. 4 (w.e.f. 1-7-2005). **30. [Conditions of service.] Omitted by the Finance Act, 2016 (28 of 2016), s. 232** (w.e.f. 1-6-2016). **31. [Vacancies.] Omitted by s. 232, ibid. (w.e.f. 1-6-2016).** **32. [Resignation and removal.] Omitted by s. 232, ibid. (w.e.f. 1-6-2016).** **33.** [Member to act as Chairperson in certain circumstances.] _Omitted by s. 232,_ _ibid._ (w.e.f. 1-6-2016). **34. [Staff of Appellate Tribunal.] Omitted by s. 232, ibid. (w.e.f. 1-6-2016).** **35. Procedure and powers of Appellate Tribunal.—(1) The Appellate Tribunal shall not be bound** by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other Provisions of this Act, the Appellate Tribunal shall have powers to regulate its own procedure. (2) The Appellate Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing a representation for default or deciding it ex parte; (h) setting aside any order of dismissal of any representation for default or any order passed by it _ex parte; and_ (i) any other matter, which may be, prescribed by the Central Government. (3) An order made by the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil court and, for this purpose, the Appellate Tribunal shall have all the powers of a civil court. ----- (4) Notwithstanding anything contained in sub-section (3), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that court. (5) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Appellate Tribunal shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). **36. Distribution of business amongst Benches.—Where any Benches are constituted, the** 1[Chairman] may, from time to time, by notification, make provisions as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with by each Bench. **37. Power of** **[1][Chairman] to transfer cases.—On the application of any of the parties and after** notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the [1][Chairman] may transfer any case pending before one Bench, for disposal, to any other Bench. **38. Decision to be by majority.—If the Members of a Bench consisting of two Members differ in** opinion on any point, they shall state the point or points on which they differ, and make a reference to the 1[Chairman] who shall either hear the point or points himself or refer the case for hearing on such point or points by [2][third Member] of the Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of the Members of the Appellate Tribunal who have heard the case, including those who first heard it. **39. Right of appellant to take assistance of authorised representative and of Government to** **appoint presenting officers.—(1) A person preferring an appeal to the Appellate Tribunal under this Act** may either appear in person or take the assistance of an authorised representative of his choice to present his case before the Appellate Tribunal. _Explanation.—For the purposes of this sub-section, the expression “authorised representative” shall_ have the same meaning as assigned to it under sub-section (2) of section 288 of the Income-tax Act, 1961 (43 of 1961). (2) The Central Government or the Director may authorise one or more authorised representatives or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal. **40. Members, etc., to be public servants.—The** [1][Chairman], Members and other officers and employees of the Appellate Tribunal, the Adjudicating Authority, Director and the officers subordinate to him shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **41. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which the Director, an Adjudicating Authority or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **42. Appeal to High Court.—Any person aggrieved by any decision or order of the Appellate** Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal to him on any question of law or fact arising out of such order: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. 1. Subs. by Act 28 of 2016, s. 232, for “Chairperson” (w.e.f. 1-6-2016). 2. Subs. by Act 21 of 2009, s. 11, for “one or more of the other Members” (w.e.f. 1-6-2009). ----- _Explanation.—For the purposes of this section, “High Court” means—_ (i) the High Court within the jurisdiction of which the aggrieved party ordinarily resides or carries on business or personally works for gain; and (ii) where the Central Government is the aggrieved party, the High Court within the jurisdiction of which the respondent, or in a case where there are more than one respondent, any of the respondents, ordinarily resides or carries on business or personally works for gain. CHAPTER VII SPECIAL COURTS **43. Special Courts.—(1) The Central Government, in consultation with the Chief Justice of the High** Court, shall, for trial of offence punishable under section 4, by notification, designate one or more Courts of Session as Special Court or Special Courts or such area or areas or for such case or class or group of cases as may be specified in the notification. _Explanation.—In this sub-section, “High Court” means the High Court of the State in which a_ Sessions Court designated as Special Court was functioning immediately before such designation. (2) While trying an offence under this Act, a Special Court shall also try an offence, other than an offence referred to in sub-section (1), with which the accused may, under the Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial. **44. Offences triable by Special Courts.—(1) Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974),— 1[(a) an offence punishable under section 4 and any scheduled offence connected to the offence under that section shall be triable by the Special Court constituted for the area in which the offence has been committed: Provided that the Special Court, trying a scheduled offence before the commencement of this Act, shall continue to try such scheduled offence; or]; (b) a Special Court may, [2]*** upon a complaint made by an authority authorised in this behalf under this Act take [3][cognizance of offence under section 3, without the accused being committed to it for trial]; 4[Provided that after conclusion of investigation, if no offence of money-laundering is made out requiring filing of such complaint, the said authority shall submit a closure report before the Special Court; or] 5[(c) if the court which has taken cognizance of the scheduled offence is other than the Special Court which has taken cognizance of the complaint of the offence of money-laundering under sub-clause (b), it shall, on an application by the authority authorised to file a complaint under this Act, commit the case relating to the scheduled offence to the Special Court and the Special Court shall, on receipt of such case proceed to deal with it from the stage at which it is committed. (d) a Special Court while trying the scheduled offence or the offence of money-laundering shall hold trial in accordance with the provisions of the Code of Criminal Procedure, 1973 ( 2 of 1974) as it applies to a trial before a Court of Session.] 4[Explanation.—For the removal of doubts, it is clarified that,— (i) the jurisdiction of the Special Court while dealing with the offence under this Act, during investigation, enquiry or trial under this Act, shall not be dependent upon any orders passed in 1. Subs. by Act 2 of 2013, s. 21, for clause (a) (w.e.f. 15-2-2013). 2. The words “upon perusal of police report of the facts which constitute an offence under this Act or” omitted by Act 20 of 2005, s. 6 (w.e.f. 1-7-2005). 3. Subs. by Act 2 of 2013, s. 21, for “cognizance of the offence for which the accused is committed to it for trial” (w.e.f. 15-2-2013). 4. Ins. by Act 23 of 2019, s. 199 (w.e.f. 1-8-2019). 5. Ins. by Act 2 of 2013, s. 21 (w.e.f. 15-2-2013). ----- respect of the scheduled offence, and the trial of both sets of offences by the same court shall not be construed as joint trial; (ii) the complaint shall be deemed to include any subsequent complaint in respect of further investigation that may be conducted to bring any further evidence, oral or documentary, against any accused person involved in respect of the offence, for which complaint has already been filed, whether named in the original complaint or not.] (2) Nothing contained in this section shall be deemed to affect the special powers of the High Court regarding bail under section 439 of the Code of Criminal Procedure, 1973 (2 of 1974) and the High Court may exercise such powers including the power under clause (b) of sub-section (1) of that section as if the reference to “Magistrate” in that section includes also a reference to a “Special Court” designated under section 43. **45. Offences to be cognizable and non-bailable.—(1)** [1][Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), no person accused of an offence [2][under this Act] shall be released on bail or on his own bond unless—] (i) the Public Prosecutor has been given a opportunity to oppose the application for such release; and (ii) where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail: Provided that a person, who, is under the age of sixteen years, or is a woman or is sick or infirm, [3][or is accused either on his own or along with other co-accused of money-laundering a sum of less than one crore rupees] may be released on bail, if the Special Court so directs: Provided further that the Special Court shall not take cognizance of any offence punishable under section 4 except upon a complaint in writing made by— (i) the Director; or (ii) any officer of the Central Government or a State Government authorised in writing in this behalf by the Central Government by a general or special order made in this behalf by that Government. 4[(1A) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), or any other provision of this Act, no police officer shall investigate into an offence under this Act unless specifically authorised, by the Central Government by a general or special order, and, subject to such conditions as may be prescribed.] (2) The limitation on granting of bail specified in [5]*** sub-section (1) is in addition to the limitations under the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force on granting of bail. 6[Explanation.—For the removal of doubts, it is clarified that the expression “Offences to be cognizable and non-bailable” shall mean and shall be deemed to have always meant that all offences under this Act shall be cognizable offences and non-bailable offences notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1973 (2 of 1974), and accordingly the officers authorised under this Act are empowered to arrest an accused without warrant, subject to the fulfillment of conditions under section 19 and subject to the conditions enshrined under this section.] 1. Subs. by Act 20 of 2005, s. 7, for certain words, figures, brackets and letters (w.e.f. 1-7-2005). 2. Subs. by Act 13 of 2018, s. 208, for “punishable for a term of imprisonment of more than three years under Part A of the Schedule” (w.e.f. 19-4-2018). 3. Ins. by s. 208, ibid., (w.e.f. 19-4-2018). 4. Ins. by Act 20 of 2005, s. 7 (w.e.f. 1-7-2005). 5. The words, brackets and letter “clause (b) of” omitted by s. 7, ibid. (w.e.f. 1-7-2005). 6. The Explanation ins. by Act 23 of 2019, s. 200 (w.e.f. 1-8-2019). ----- **46. Application of Code of Criminal Procedure, 1973 to proceedings before Special Court.—(1)** Save as otherwise provided in this Act, the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) (including the provisions as to bails or bonds), shall apply to the proceedings before a Special Court and for the purposes of the said provisions, the Special Court shall be deemed to be a Court of Session and the persons conducting the prosecution before the Special Court, shall be deemed to be a Public Prosecutor: Provided that the Central Government may also appoint for any case or class or group of cases a Special Public Prosecutor. (2) A person shall not be qualified to be appointed as a Public Prosecutor or a Special Public Prosecutor under this section unless he has been in practice as an advocate for not less than seven years, under the Union or a State, requiring special knowledge of law. (3) Every person appointed as a Public Prosecutor or a Special Public Prosecutor under this section shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal Procedure, 1973 (2 of 1974) and the provisions of that Code shall have effect accordingly. **47. Appeal and revision.—The High Court may exercise, so far as may be applicable, all the powers** conferred by Chapter XXIX or Chapter XXX of the Code of Criminal Procedure, 1973 (2 of 1974), on a High Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court. CHAPTER VIII AUTHORITIES **48. Authorities under Act.—There shall be the following classes of authorities for the purposes of** this Act, namely:— (a) Director or Additional Director or Joint Director, (b) Deputy Director, (c) Assistant Director, and (d) such other class of officers as may be appointed for the purposes of this Act. **49. Appointment and powers of authorities and other officers.—(1) The Central Government may** appoint such persons as it thinks fit to be authorities for the purposes of this Act. (2) Without prejudice to the provisions of sub-section (1), the Central Government may authorise the Director or an Additional Director or a Joint Director or a Deputy Director or an Assistant Director appointed under that sub-section to appoint other authorities below the rank of an Assistant Director. (3) Subject to such conditions and limitations as the Central Government may impose, an authority may exercise the powers and discharge the duties conferred or imposed on it under this Act. **50. Powers of authorities regarding summons, production of documents and to give evidence,** **etc.—(1) The Director shall, for the purposes of section 13, have the same powers as are vested in a civil** court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following matters, namely:— (a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a [1][reporting entity] and examining him on oath; (c) compelling the production of records; (d) receiving evidence on affidavits; (e) issuing commissions for examination of witnesses and documents; and (f) any other matter which may be prescribed. 1. Subs. by Act 2 of 2013, s. 22, for “banking company or a financial institution or a company,” (w.e.f. 15-2-2013). ----- (2) The Director, Additional Director, Joint Director, Deputy Director or Assistant Director shall have power to summon any person whose attendance he considers necessary whether to give evidence or to produce any records during the course of any investigation or proceeding under this Act. (3) All the persons so summoned shall be bound to attend in person or through authorised agents, as such officer may direct, and shall be bound to state the truth upon any subject respecting which they are examined or make statements, and produce such documents as may be required. (4) Every proceeding under sub-sections (2) and (3) shall be deemed to be a judicial proceeding within the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860). (5) Subject to any rules made in this behalf by the Central Government, any officer referred to in sub-section (2) may impound and retain in his custody for such period, as he thinks fit, any records produced before him in any proceedings under this Act: Provided that an Assistant Director or a Deputy Director shall not— (a) impound any records without recording his reasons for so doing; or (b) retain in his custody any such records for a period exceeding three months, without obtaining the previous approval of the [1][Joint Director]. **51. Jurisdiction of authorities.—(1) The authorities shall exercise all or any of the powers and** perform all or any of the functions conferred on, or, assigned, as the case may be, to such authorities by or under this Act or the rules framed thereunder in accordance with such directions as the Central Government may issue for the exercise of powers and performance of the functions by all or any of the authorities. (2) In issuing the directions or orders referred to in sub-section (1), the Central Government may have regard to any one or more of the following criteria, namely:— (a) territorial area; (b) classes of persons; (c) classes of cases; and (d) any other criterion specified by the Central Government in this behalf. **52. Power of Central Government to issue directions, etc.—The Central Government may, from** time to time, issue such orders, instructions and directions to the authorities as it may deem fit for the proper administration of this Act and such authorities and all other persons employed in execution of this Act shall observe and follow such orders, instructions and directions of the Central Government: Provided that no such orders, instructions or directions shall be issued so as to— (a) require any authority to decide a particular case in a particular manner; or (b) interfere with the discretion of the Adjudicating Authority in exercise of his functions. **53. Empowerment of certain officers.—The Central Government may, by a special or general order,** empower an officer not below the rank of Director of the Central Government or of a State Government to act as an authority under this Act: Provided that the Central Government may empower an officer below the rank of Director if the officer of the rank of the Director or above are not available in a particular area. **54. Certain officers to assist in inquiry, etc.—The following** [2][officers and others] are hereby empowered and required to assist the authorities in the enforcement of this Act, namely:— (a) officers of the Customs and Central Excise Departments; (b) officers appointed under sub-section (1) of section 5 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985); (c) income-tax authorities under sub-section (1) of section 117 of the Income-tax Act, 1961 (43 of 1961); 1. Subs. by Act 13 of 2018, s. 208, for “Director” (w.e.f. 19-4-2018). 2. Subs. by Act 2 of 2013, s. 23 for “officers” (w.e.f. 15-2-2013). ----- 1[(d) members of the recognised stock exchange referred to in clause (f) of section 2 and the officers of the stock exchanges recognised under section 4 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);] (e) officers of the Reserve Bank of India constituted under sub-section (1) of section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); (f) officers of Police; (g) officers of enforcement appointed under sub-section (1) of section 36 of the Foreign Exchange Management Act, 1999 (40 of 1999); (h) officers of the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); 2[(ha) officers of the Insurance Regulatory and Development Authority established under section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999); _(hb) officers of the Forward Markets Commission established under section 3 of the Forward_ Contracts (Regulation) Act, 1952 (74 of 1952); _(hc) officers and members of the recognised association recognised under section 6 of the_ Forward Contracts (Regulation) Act, 1952 (74 of 1952); _(hd) officers of the Pension Fund Regulatory and Development Authority;_ _(he) officers of the Department of Posts in the Government of India;_ _(hf)_ Registrars or Sub-Registrars appointed by the State Governments under section 6 of the Registration Act, 1908 (16 of 1908); _(hg) registering authority empowered to register motor vehicles under Chapter IV of the Motor_ Vehicles Act, 1988 (59 of 1988); _(hh)_ officers and members of the Institute of Chartered Accountants of India constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949); _(hi)_ officers and members of the Institute of Cost and Works Accountants of India constituted under section 3 of the Cost and Works Accountants Act, 1959 (23 of 1959); _(hj) officers and members of the Institute of Company Secretaries of India constituted under_ section 3 of the Company Secretaries Act, 1980 (56 of 1980);] (i) officers of any other body corporate constituted or established under a Central Act or a State Act; (j) such other officers of the Central Government, State Government, local authorities or 3[reporting entities] as the Central Government may, by notification, specify, in this behalf. CHAPTER IX RECIPROCAL ARRANGEMENT FOR ASSISTANCE IN CERTAIN MATTERS AND PROCEDURE FOR ATTACHMENT AND CONFISCATION OF PROPERTY **55. Definitions.—In this Chapter, unless the context otherwise requires,—** (a) “contracting State” means any country or place outside India in respect of which arrangements have been made by the Central Government with the Government of such country through a treaty or otherwise; 1. Subs. by Act 2 of 2013, s. 23, for clause (d) (w.e.f. 15-2-2013). 2. Ins. by s. 23, ibid. (w.e.f. 15-2-2013). 3. Subs. by s. 23, ibid., for “banking companies” (w.e.f. 15-2-2013). ----- (b) “identifying” includes establishment of a proof that the property was derived from, or used in the commission of an offence under section 3; (c) “tracing” means determining the nature, source, disposition, movement, title or ownership of property. **56. Agreements with foreign countries.—(1) The Central Government may enter into an agreement** with the Government of any country outside India for— (a) enforcing the provisions of this Act; (b) exchange of information for the prevention of any offence under this Act or under the corresponding law in force in that country or investigation of cases relating to any offence under this Act, and may, by notification in the Official Gazette, make such provisions as may be necessary for implementing the agreement. (2) The Central Government may, by notification in the Official Gazette, direct that the application of this Chapter in relation to a contracting State with which reciprocal arrangements have been made, shall be subject to such conditions, exceptions or qualifications as are specified in the said notification. **57. Letter of request to a contracting State in certain cases.—(1) Notwithstanding anything** contained in this Act or the Code of Criminal Procedure, 1973 (2 of 1974) if, in the course of an investigation into an offence or other proceedings under this Act, an application is made to a Special Court by the Investigating Officer or any officer superior in rank to the Investigating Officer that any evidence is required in connection with investigation into an offence or proceedings under this Act and he is of the opinion that such evidence may be available in any place in a contracting State, and the Special Court, on being satisfied that such evidence is required in connection with the investigation into an offence or proceedings under this Act, may issue a letter of request to a court or an authority in the contracting State competent to deal with such request to— (i) examine facts and circumstances of the case, (ii) take such steps as the Special Court may specify in such letter of request, and (iii) forward all the evidence so taken or collected to the Special Court issuing such letter of request. (2) The letter of request shall be transmitted in such manner as the Central Government may specify in this behalf. (3) Every statement recorded or document or thing received under sub-section (1) shall be deemed to be the evidence collected during the course of investigation. **58. Assistance to a contracting State in certain cases.—Where a letter of request is received by the** Central Government from a court or authority in a contracting State requesting for investigation into an offence or proceedings under this Act and forwarding to such court or authority any evidence connected therewith, the Central Government may forward such letter of request to the Special Court or to any authority under the Act as it thinks fit for execution of such request in accordance with the provisions of this Act or, as the case may be, any other law for the time being in force. 1[58A. Special Court to release the property.—Where on closure of the criminal case or conclusion of a trial in a criminal court outside India under the corresponding law of any other country, such court finds that the offence of money-laundering has not taken place or the property in India is not involved in money-laundering, the Special Court may, on an application moved by the concerned person or the Director, after notice to the other party, order release of such property to the person entitled to receive it. **58B. Letter of request of a contracting State or authority for confiscation or release the** **property.—Where the trial under the corresponding law of any other country cannot be conducted by** 1. Ins. by Act 2 of 2013, s. 24 (w.e.f. 15-2-2013). ----- reason of the death of the accused or the accused being declared a proclaimed offender or for any other reason or having commenced but could not be concluded, the Central Government shall, on receipt of a letter of request from a court or authority in a contracting State requesting for confiscation or release of property, as the case may be, forward the same to the Director to move an application before the Special Court and upon such application the Special Court shall pass appropriate orders regarding confiscation or release of such property involved in the offence of money-laundering.] **59. Reciprocal arrangements for processes and assistance for transfer of accused persons.—(1)** Where a Special Court, in relation to an offence punishable under section 4, desires that— (a) a summons to an accused person, or (b) a warrant for the arrest of an accused person, or (c) a summons to any person requiring him to attend and produce a document or other thing or to produce it, or (d) a search warrant, issued by it shall be served or executed at any place in any contracting State, it shall send such summons or warrant in duplicate in such form, to such Court, Judge or Magistrate through such authorities, as the Central Government may, by notification, specify in this behalf and that Court, Judge or Magistrate, as the case may be, shall cause the same to be executed. (2) Where a Special Court, in relation to an offence punishable under section 4 has received for service or execution— (a) a summons to an accused person, or (b) a warrant for the arrest of an accused person, or (c) a summons to any person requiring him to attend and produce a document or other thing, or to produce it, or (d) a search warrant, issued by a Court, Judge or Magistrate in a contracting State, it shall, cause the same to be served or executed as if it were a summons or warrant received by it from another Court in the said territories for service or execution within its local jurisdiction; and where— (i) a warrant of arrest has been executed, the person arrested shall be dealt with in accordance with the procedure specified under section 19; (ii) a search warrant has been executed, the things found in this search shall, so far as possible, be dealt with in accordance with the procedure specified under sections 17 and 18: Provided that in a case where a summon or search warrant received from a contracting State has been executed, the documents or other things produced or things found in the search shall be forwarded to the Court issuing the summons or search-warrant through such authority as the Central Government may, by notification, specify in this behalf. (3) Where a person transferred to a contracting State pursuant to sub-section (2) is a prisoner in India, the Special Court or the Central Government may impose such conditions as that Court or Government deems fit. (4) Where the person transferred to India pursuant to sub-section (1) is a prisoner in a contracting State, the Special Court in India shall ensure that the conditions subject to which the prisoner is transferred to India are complied with and such prisoner shall be kept in such custody subject to such conditions as the Central Government may direct in writing. ----- **60. Attachment, seizure and confiscation, etc., of property in a contracting State or India.—(1)** Where the Director has made an order for attachment of any [1][property under section 5 or for freezing under sub-section (1A) of section 17 or where an Adjudicating Authority has made an order relating to a property under section 8 or where a Special Court has made an order of confiscation relating to a property under sub-section (5) or sub-section (6) of section 8] and such property is suspected to be in a contracting State, the Special Court, on an application by the Director or the Administrator appointed under sub-section (1) of section 10, as the case may be, may issue a letter of request to a court or an authority in the contracting State for execution of such order. (2) Where a letter of request is received by the Central Government from a court or an authority in a contracting State requesting [2][attachment, seizure, freezing or confiscation] of the property in India, derived or obtained, directly or indirectly, by any person from the commission of an offence under [3][a corresponding law] committed in that contracting State, the Central Government may forward such letter of request to the Director, as it thinks fit, for execution in accordance with the provisions of this Act. 4[(2A) Where on closure of the criminal case or conclusion of trial in a criminal court outside India under the corresponding law of any other country, such court finds that the offence of money-laundering under the corresponding law of that country has been committed, the [5][Special Court] shall, on receipt of an application from the Director for execution of confiscation under sub-section (2), order, after giving notice to the affected persons, that such property involved in money-laundering or which has been used for commission of the offence of money-laundering stand confiscated to the Central Government.] (3) The Director shall, on receipt of a letter of request under section 58 or section 59, direct any authority under this Act to take all steps necessary for tracing and identifying such property. (4) The steps referred to in sub-section (3) may include any inquiry, investigation or survey in respect of any person, place, property, assets, documents, books of account in any bank or public financial institutions or any other relevant matters. (5) Any inquiry, investigation or survey referred to in sub-section (4) shall be carried out by an authority mentioned in sub-section (3) in accordance with such directions issued in accordance with the provisions of this Act. (6) The provisions of this Act relating to attachment, adjudication, confiscation and vesting of property in the Central Government contained in Chapter III and survey, searches and seizures contained in Chapter V shall apply to the property in respect of which letter of request is received from a court or contracting State for attachment or confiscation of property. 6[(7) When any property in India is confiscated as a result of execution of a request from a contracting State in accordance with the provisions of this Act, the Central Government may either return such property to the requesting State or compensate that State by disposal of such property on mutually agreed terms that would take into account deduction for reasonable expenses incurred in investigation, prosecution or judicial proceedings leading to the return or disposal of confiscated property.] **61. Procedure in respect of letter of request.—Every letter of request, summons or warrant,** received by the Central Government from, and every letter of request, summons or warrant, to be transmitted to a contracting State under this Chapter shall be transmitted to a contracting State or, as the case may be, sent to the concerned Court in India and in such form and in such manner as the Central Government may, by notification, specify in this behalf. 1. Subs. by Act 2 of 2013, s. 25, for certain words and figures (w.e.f. 15-2-2013). 2. Subs. by s. 25, ibid., for “attachment or confiscation” (w.e.f. 15-2-2013). 3. Subs. by s. 25, ibid., for “section 3” (w.e.f. 15-2-2013). 4. Ins. by s. 25, ibid. (w.e.f. 15-2-2013). 5. Subs. by Act 20 of 2015, s. 150, for “Adjudicating Authority” (w.e.f. 14-5-2015). 6. Ins. by Act 21 of 2009, s. 12 (w.e.f. 1-6-2009). ----- CHAPTER X MISCELLANEOUS **62. Punishment for vexatious search.—Any authority or officer exercising powers under this Act or** any rules made thereunder, who, without reasons recorded in writing,— (a) searches or causes to be searched any building or place; or (b) detains or searches or arrests any person, shall for every such offence be liable on conviction for imprisonment for a term which may extend to two years or fine which may extend to fifty thousand rupees or both. **63. Punishment for false information or failure to give information, etc.—(I) Any person wilfully** and maliciously giving false information and so causing an arrest or a search to be made under this Act shall on conviction be liable for imprisonment for a term which may extend to two years or with fine which may extend to fifty thousand rupees or both. (2) If any person,— (a) being legally bound to state the truth of any matter relating to an offence under section 3, refuses to answer any question put to him by an authority in the exercise of its powers under this Act; or (b) refuses to sign any statement made by him in the course of any proceedings under this Act, which an authority may legally require to sign; or (c) to whom a summon is issued under section 50 either to attend to give evidence or produce books of account or other documents at a certain place and time, omits to attend or produce books of account or documents at the place or time, he shall pay, by way of penalty, a sum which shall not be less than five hundred rupees but which may extend to ten thousand rupees for each such default or failure. (3) No order under this section shall be passed by an authority referred to in sub-section (2) unless the person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such authority. 1[(4) Notwithstanding anything contained in clause (c) of sub-section (2), a person who intentionally disobeys any direction issued under section 50 shall also be liable to be proceeded against under section 174 of the Indian Penal Code (45 of 1860).] **64. Cognizance of offences.—(1) No court shall take cognizance of any offence under section 62 or** sub-section (1) of section 63 except with the previous sanction of the Central Government. (2) The Central Government shall, by an order, either give sanction or refuse to give sanction within ninety days of the receipt of the request in this behalf. **65. Code of Criminal Procedure, 1973 to apply.—The provisions of the Code of Criminal** Procedure, 1973 (2 of 1974) shall apply, in so far as they are not inconsistent with the provisions of this Act, to arrest, search and seizure, attachment, confiscation investigation, prosecution and all other proceedings under this Act. **66. Disclosure of information.—[2][(1)] The Director or any other authority specified by him by a** general or special order in this behalf may furnish or cause to be furnished to— 1. Ins. by Act 2 of 2013, s.26 (w.e.f. 15-2-2013). 2. Section 66 numbered as sub-section (1) by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). ----- (i) any officer, authority or body performing any functions under any law relating to imposition of any tax, duty or cess or to dealings in foreign exchange, or prevention of illicit traffic in the narcotic drugs and psychotropic substances under the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985); or (ii) such other officer, authority or body performing functions under any other law as the Central Government may, if in its opinion it is necessary so to do in the public interest, specify, by notification in the Official Gazette, in this behalf, any information received or obtained by such Director or any other authority, specified by him in the performance of their functions under this Act, as may, in the opinion of the Director or the other authority, so specified by him, be necessary for the purpose of the officer, authority or body specified in clause (i) or clause (ii) to perform his or its functions under that law. 1[(2) If the Director or other authority specified under sub-section (1) is of the opinion, on the basis of information or material in his possession, that the provisions of any other law for the time being in force are contravened, then the Director or such other authority shall share the information with the concerned agency for necessary action.] **67. Bar of suits in civil courts.—No suit shall be brought in any civil court to set aside or modify** any proceeding taken or order made under this Act and no prosecution, suit or other proceeding shall lie against the Government or any officer of the Government for anything done or intended to be done in good faith under this Act. **68. Notice, etc., not to be invalid on certain grounds.—No notice, summons, order, document or** other proceeding, furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of his Act shall be invalid, or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such notice, summons, order, document or other proceeding if such notice, summons, order, document or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act. 2[69. Recovery of fine or penalty.—Where any fine or penalty imposed on any person under section 13 or section 63 is not paid within six months from the day of imposition of fine or penalty, the Director or any other officer authorised by him in this behalf may proceed to recover the amount from the said person in the same manner as prescribed in Schedule II of the Income-tax Act, 1961 (43 of 1961) for the recovery of arrears and he or any officer authorised by him in this behalf shall have all the powers of the Tax Recovery Officer mentioned in the said Schedule for the said purpose.] **70. Offences by companies.—(1) Where a person committing a contravention of any of the** provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of and was responsible to the company, for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention. (2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of any company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. 1. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). 2. Subs. by Act 2 of 2013, s. 27, for section 69 (w.e.f. 15-2-2013). ----- _Explanation [1][1].—For the purposes of this section,—_ (i) “company” means any body corporate and includes a firm or other association of individuals; and (ii) “director”, in relation to a firm, means a partner in the firm. 2[Explanation 2.—For the removal of doubts, it is hereby clarified that a company may be prosecuted, notwithstanding whether the prosecution or conviction of any legal juridical person shall be contingent on the prosecution or conviction of any individual.] **71. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force. **72. Continuation of proceedings in the event of death or insolvency.—(1) Where—** (a) any property of a persons has been attached under section 8 and no appeal against the order attaching such property has been preferred; or (b) any appeal has been preferred to the Appellate Tribunal, and— (i) in a case referred to in clause (a), such person dies or is adjudicated an insolvent before preferring an appeal to the Appellate Tribunal; or (ii) in a case referred to in clause (b), such person dies or is adjudicated an insolvent during the pendency of the appeal, then, it shall be lawful for the legal representatives of such person or the official assignee or the official receiver, as the case may be, to prefer an appeal to the Appellate Tribunal or as the case may be, to continue the appeal before the Appellate Tribunal, in place of such person and the provisions of section 26 shall, so far as may be, apply, or continue to apply, to such appeal. (2) Where— (a) after passing of a decision or order by the Appellate Tribunal, no appeal has been preferred to the High court under section 42; or (b) any such appeal has been preferred to the High Court,— then— (i) in a case referred to in clause (a), the person entitled to file the appeal dies or is adjudicated an insolvent before preferring an appeal to the High Court, or (ii) in a case referred to in clause (b), the person who had filed the appeal dies or is adjudicated an insolvent during the pendency of the appeal before the High Court, then, it shall be lawful for the legal representatives of such person, or the official assignee or the official receiver, as the case may be, to prefer an appeal to the High Court or to continue the appeal before the High Court in place of such person and the provisions of section 42 shall, so far as may be, apply, or continue to apply, to such appeal. (3) The powers of the official assignee or the official receiver under sub-section (1) or sub-section (2) shall be exercised by him subject to the provisions of the Presidency-towns Insolvency Act, 1909 (3 of 1909) or the Provincial Insolvency Act, 1920 (5 of 1920), as the case may be. 3[72A. Inter-ministerial Co-ordination Committee.—The Central Government may, by notification, constitute an Inter-ministerial Co-ordination Committee for inter-departmental and interagency co-ordination for the following purposes, namely:— 1. Explanation shall be numbered as Explanation 1 by Act 2 of 2013, s. 28, (w.e.f. 15-2-2013) 2. Ins. by s. 28, ibid. (w.e.f. 15-2-2013). 3. Ins. by Act 23 of 2019, s. 201 (w.e.f. 1-8-2019). ----- (a) operational co-operation between the Government, law enforcement agencies, the Financial Intelligence Unit, India and the regulators or supervisors; (b) policy co-operation and co-ordination across all relevant or competent authorities; (c) such consultation among the concerned authorities, the financial sector and other sectors, as are appropriate, and are related to anti money-laundering or countering the financing of terrorism laws, regulations and guidelines; (d) development and implementing policies on anti money-laundering or countering the financing of terrorism; and (e) any other matter as the Central Government may, by notification, specify in this behalf.] **73. Power to make rules.—(1) The Central Government may, by notification, make rules for** carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form in which records referred to in this Act may be maintained; 1[(aa) the manner of provisional attachment of property under sub-section (1) of section 5;] (b) the manner in which the order and the material referred to in sub-section (2) of section 5 to be maintained; (c) matters in respect of experience of Members under sub-section (3) of section 6; (d) the salaries and allowances payable to and other terms and conditions of service of Members of the Adjudicating Authority under sub-section (9) of section 6; (e) the salaries and allowances payable to and other terms and conditions of service of the officers and employees of the Adjudicating Authority under sub-section (3) of section 7; 1[(ee) the manner of seizing or taking possession of property attached under section 5 or frozen under sub-section (1A) of section 17 or under sub-section (4) of section 8;] (f) the manner in which and the conditions subject to which the properties confiscated may be received and managed under sub-section (2) of section 10; (g) the additional matters in respect of which the Adjudicating Authority may exercise the powers of a civil court under clause (f) of sub-section (1) of section 11; 2* - - - (i) [3][the nature and value of transactions and the time within which] the information of transactions under clause (b) of sub-section (1) of section 12 shall be furnished; 4* - - - 5[(jja) the manner and the conditions in which authentication of the identity of clients shall be verified by the reporting entities under clause (a) of sub-section (1) of section 12AA; (jjb) the manner of identifying the ownership and financial position of the client under clause (b) of sub-section (1) of section 12AA; 1. Ins. by Act 2 of 2013, s. 29 (w.e.f. 15-2-2013). 2. Clause (h) omitted by s. 29, ibid. (w.e.f. 15-2-2013). 3. Subs. by s. 29, ibid., for “the time within which” (w.e.f. 15-2-2013). 4. Clauses (j) and (jj) omitted by Act 14 of 2019, s. 29 (w.e.f. 25-07-2019). 5. Ins. by Act 23 of 2019, s. 202 (w.e.f. 1-8-2019). ----- (jjc) additional steps to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties under clause (c) of sub-section (1) of section 12AA; (jjd) manner of increasing the future monitoring under sub-section (3) of section 12AA.] (jjj) the period of interval in which the reports are sent by the reporting entities or any of its employees under clause (c) of sub-section (2) of section 13;] (k) the procedure and the manner of maintaining and furnishing information under sub-section (1) of section 12 as required under section 15; (l) the manner in which the reasons and the material referred to in sub-section (2) of section 16 shall be maintained; (m) the rules relating to search and seizure under sub-section (1) of section 17; (n) the manner in which the reasons and the material referred to in sub-section (2) of section 17 shall be maintained; (o) the manner in which the reasons and the material referred to in sub-section (2) of section 18 shall be maintained; (p) the manner in which the order and the material referred to in sub-section (2) of section 19 shall be maintained; 1[(pp) the manner in which the forwarding of the order for retention or continuation of freezing of the property and the period of keeping such order and material under sub-section (2) of section 20;] (q) the manner in which records authenticated outside India may be received under sub-section (2) of section 22; (r) the form of appeal and the fee for filing such appeal, under sub-section (3) of section 26; 2* - - - (u) the additional matters in respect of which the Appellate Tribunal may exercise the powers of a civil court under clause (i) of sub-section (2) of section 35; 3[(ua) conditions subject to which a police officer may be authorised to investigate into an offence under sub-section (1A) of section 45;] (v) the additional matters in respect of which the authorities may exercise powers of a civil court under clause (f) of sub-section (1) of section 50; (w) the rules relating to impounding and custody of records under sub-section (5) of section 50; (x) any other matter which is required to be, or may be, prescribed. **74. Rules to be laid before Parliament.—Every rule made under this Act shall be laid, as soon as** may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 1. Ins. by Act 2 of 2013, s. 29 (w.e.f. 15-2-2013). 2. Clauses (s) and (t) omitted by Act 28 of 2016, s. 232 (w.e.f. 1-6-2016). 3. Ins. by Act 20 of 2005, s. 8 (w.e.f. 1-7-2005). ----- **75. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. ----- THE SCHEDULE [See section 2(y)] 1[PART A PARAGRAPH 1 OFFENCES UNDER THE INDIAN PENAL CODE (45 OF 1860) Section Description of offence 120B Criminal conspiracy. 121 121A 255 257 258 259 260 302 304 307 308 327 329 364A 384 to 389 392 to 402 411 412 413 414 417 418 419 420 421 Waging or attempting to wage war or abetting waging of war, against the Government of India. Conspiracy to commit offences punishable by section 121 against the State. Counterfeiting Government stamp. Making or selling instrument for counterfeiting Government stamp. Sale of counterfeit Government stamp. Having possession of counterfeit Government stamp. Using as genuine a Government stamp known to be counterfeit. Murder. Punishment for culpable homicide not amounting to murder. Attempt to murder. Attempt to commit culpable homicide. Voluntarily causing hurt to extort property, or to constrain to an illegal act. Voluntarily causing grievous hurt to extort property, or to constrain to an illegal act. Kidnapping for ransom, etc. Offences relating to extortion. Offences relating to robbery and dacoity. Dishonestly receiving stolen property. Dishonestly receiving property stolen in the commission of a dacoity. Habitually dealing in stolen property. Assisting in concealment of stolen property. Punishment for cheating. Cheating with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect. Punishment for cheating by personation. Cheating and dishonestly inducing delivery of property. Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors. 1. Subs. by Act 2 of 2013, s.30, for Part A (w.e.f. 15-2-2013). ----- Section Description of offence 422 Dishonestly or fraudulently preventing debt being available for creditors. 423 Dishonest or fraudulent execution of deed of transfer containing false statement of consideration. 424 Dishonest or fraudulent removal or concealment of property. 467 Forgery of valuable security, will, etc. 471 Using as genuine a forged document or electronic record. 472 and 473 Making or possessing counterfeit seal, etc., with intent to commit forgery. 475 and 476 Counterfeiting device or mark. 481 Using a false property mark. 482 Punishment for using a false property mark. 483 Counterfeiting a property mark used by another. 484 Counterfeiting a mark used by a public servant. 485 Making or possession of any instrument for counterfeiting a property mark. 486 Selling goods marked with a counterfeit property mark. 487 Making a false mark upon any receptacle containing goods. 488 Punishment for making use of any such false mark. 489A Counterfeiting currency notes or bank notes. 489B Using as genuine, forged or counterfeit currency notes or bank notes. PARAGRAPH 2 OFFENCES UNDER THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES ACT, 1985 (61 OF 1985) Section Description of offence 15 16 17 18 19 20 21 Contravention in relation to poppy straw. Contravention in relation to coca plant and coca leaves. Contravention in relation to prepared opium. Contravention in relation to opium poppy and opium. Embezzlement of opium by cultivator. Contravention in relation to cannabis plant and cannabis. Contravention in relation to manufactured drugs and preparations. 22 Contravention in relation to psychotropic substances. 23 Illegal import into India, export from India or transhipment of narcotic drugs and psychotropic substances. ----- Section Description of offence 24 External dealings in narcotic drugs and psychotropic substances in contravention of section 12 of the Narcotic Drugs and Psychotropic Substances Act, 1985. 25A Contravention of orders made under section 9A of the Narcotic Drugs and Psychotropic Substances Act, 1985. 27A Financing illicit traffic and harbouring offenders. 29 Abetment and criminal conspiracy. PARAGRAPH 3 OFFENCES UNDER THE EXPLOSIVE SUBSTANCES ACT,1908 (6 OF 1908) Section Description of offence 3 Causing explosion likely to endanger life or property. 4 Attempt to cause explosion, or for making or keeping explosives with intent to endanger life or property. 5 Making or possessing explosives under suspicious circumstances. PARAGRAPH 4 OFFENCES UNDER THE UNLAWFUL ACTIVITIES (PREVENTION) ACT, 1967 (37 OF 1967) Section Description of offence 10 read with section 3 Penalty for being member of an unlawful association, etc. 11 read with section 3 Penalty for dealing with funds of an unlawful association. 13 read with section 3 Punishment for unlawful activities. 16 read with section 15 Punishment for terrorist act. 16A Punishment for making demands of radioactive substances, nuclear devices, etc. 17 Punishment for raising funds for terrorist act. 18 Punishment for conspiracy, etc. 18A Punishment for organising of terrorist camps. 18B Punishment for recruiting of any person or persons for terrorist act. 19 Punishment for harbouring, etc. 20 Punishment for being member of terrorist gang or organisation. 21 Punishment for holding proceeds of terrorism. 38 Offence relating to membership of a terrorist organisation. 39 Offence relating to support given to a terrorist organisation. 40 Offence of raising fund for a terrorist organisation. ----- PARAGRAPH 5 OFFENCES UNDER THE ARMS ACT, 1959 (54 OF 1959) Section Description of offence 25 To manufacture, sell, transfer, convert, repair or test or prove or expose or offer for sale or transfer or have in his possession for sale, transfer, conversion, repair, test or proof, any arms or ammunition in contravention of section 5 of the Arms Act, 1959. To acquire, have in possession or carry any prohibited arms or prohibited ammunition in contravention of section 7 of the Arms Act, 1959. Contravention of section 24A of the Arms Act, 1959 relating to prohibition as to possession of notified arms in disturbed areas, etc. Contravention of section 24B of the Arms Act, 1959 relating to prohibition as to carrying of notified arms in or through public places in disturbed areas. Other offences specified in section 25. 26 To do any act in contravention of any provisions of section 3, 4, 10 or section 12 of the Arms Act, 1959 in such manner as specified in sub-section (1) of section 26 of the said Act. To do any act in contravention of any provisions of section 5, 6, 7 or section 11 of the Arms Act, 1959 in such manner as specified in sub-section (2) of section 26 of the said Act. Other offences specified in section 26. 27 Use of arms or ammunitions in contravention of section 5 or use of any arms or ammunition in contravention of section 7 of the Arms Act, 1959. 28 Use and possession of fire arms or imitation fire arms in certain cases. 29 Knowingly purchasing arms from unlicensed person or for delivering arms, etc., to person not entitled to possess the same. 30 Contravention of any condition of a licence or any provisions of the Arms Act, 1959 or any rule made thereunder. PARAGRAPH 6 OFFENCES UNDER THE WILD LIFE (PROTECTION) ACT, 1972 (53 OF 1972) Section Description of offence 51 read with section 9 Hunting of wild animals. 51 read with section 17A Contravention of provisions of section 17A relating to prohibition of picking, uprooting, etc., of specified plants. 51 read with section 39 Contravention of provisions of section 39 relating to wild animals, etc., to be Government property. 51 read with section 44 Contravention of provisions of section 44 relating to dealings in trophy and animal articles without licence prohibited. 51 read with section 48 Contravention of provisions of section 48 relating to purchase of animal, etc., by licensee. 51 read with section 49B Contravention of provisions of section 49B relating to prohibition of dealings in trophies, animals articles, etc., derived from scheduled animals. ----- PARAGRAPH 7 OFFENCES UNDER THE IMMORAL TRAFFIC (PREVENTION) ACT, 1956 (104 OF 1956) Section Description of offence 5 Procuring, inducing or taking person for the sake of prostitution. 6 Detaining a person in premises where prostitution is carried on. 8 Seducing or soliciting for purpose of prostitution. 9 Seduction of a person in custody. 1[PARAGRAPH 8 OFFENCES UNDER THE PREVENTION OF CORRUPTION ACT, 1988 (49 OF 1988) Section Description of offence 7. Offence relating to public servant being bribed. 7A. Taking undue advantage to influence public servant by corrupt or illegal means or by exercise of personal influence. 8. Offence relating to bribing a public servant. 9. Offence relating to bribing a public servant by a commercial organisation. 10. Person in charge of commercial organisation to be guilty of offence. 11. Public servant obtaining undue advantage, without consideration from person concerned in proceeding or business transacted by such public servant. 12. Punishment for abetment of offences. 13. Criminal misconduct by a public servant. 14 Punishment for habitual offender.] 1. Subs. by Act 16 of 2018, s. 19, for Paragraph 8 (w.e.f. 26-7-2018). ----- PARAGRAPH 9 OFFENCES UNDER THE EXPLOSIVES ACT, 1884 (4 OF 1884) Section Description of offence 9B Punishment for certain offences. 9C Offences by companies. PARAGRAPH 10 OFFENCES UNDER THE ANTIQUITIES AND ARTS TREASURES ACT, 1972 (52 OF 1972) Section Description of offence 25 read with section 3 Contravention of export trade in antiquities and art treasures. 28 Offences by companies. PARAGRAPH 11 OFFENCES UNDER THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 (15 OF 1992) Section Description of offence 12A read with section 24 Prohibition of manipulative and deceptive devices, insider trading and substantial. 24 Acquisition of securities or control. PARAGRAPH 12 OFFENCES UNDER THE CUSTOMS ACT, 1962 (52 OF 1962) Section Description of offence 135 Evasion of duty or prohibitions. ----- PARAGRAPH 13 OFFENCES UNDER THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976 (19 OF 1976) Section Description of offence 16 Punishment for enforcement of bonded labour. 18 Punishment for extracting bonded labour under the bonded labour system. 20 Abetment to be an offence. PARAGRAPH 14 OFFENCES UNDER THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986 (61 OF 1986) Section Description of offence 14 Punishment for employment of any child to work in contravention of the provisions of section 3 PARAGRAPH 15 OFFENCES UNDER THE TRANSPLANTATION OF HUMAN ORGANS ACT, 1994 (42 OF 1994) Section Description of offence 18 Punishment for removal of human organ without authority. 19 Punishment for commercial dealings in human organs. 20 Punishment for contravention of any other provision of this Act. PARAGRAPH 16 OFFENCES UNDER THE JUVENILE JUSTICE (CARE AND PROTECTION OF CHILDREN) ACT, 2000 (56 OF 2000) Section Description of offence 23 Punishment for cruelty to juvenile or child. 24 Employment of juvenile or child for begging. 25 Penalty for giving intoxicating liquor or narcotic drug or psychotropic substance to juvenile or child. 26 Exploitation of juvenile or child employee. ----- PARAGRAPH 17 OFFENCES UNDER THE EMIGRATION ACT, 1983 (31 OF 1983) Section Description of offence 24 Offences and penalties. PARAGRAPH 18 OFFENCES UNDER THE PASSPORTS ACT, 1967 (15 OF 1967) Section Description of offence 12 Offences and penalties. PARAGRAPH 19 OFFENCES UNDER THE FOREIGNERS ACT, 1946 (31 OF 1946) Section Description of offence 14 Penalty for contravention of provisions of the Act, etc. 14B Penalty for using forged passport. 14C Penalty for abetment. PARAGRAPH 20 OFFENCES UNDER THE COPYRIGHT ACT, 1957 (14 OF 1957) Section Description of offence 63 Offence of infringement of copyright or other rights conferred by this Act. 63A Enhanced penalty on second and subsequent convictions. 63B Knowing use of infringing copy of computer programme. 68A Penalty for contravention of section 52A. 1[PARAGRAPH 21 OFFENCES UNDER THE TRADE MARKS ACT, 1999 (47 OF 1999) Section Description of offence 103 Penalty for applying false trademarks, trade descriptions, etc. 104 Penalty for selling goods or providing services to which false trademark or false trade description is applied. Enhanced penalty on second or subsequent conviction. 105 Punishment of abetment in India of acts done out of India.] 120 1. Subs. by Act 18 of 2023, s. 2 and Schedule for PARAGRAPH 21 (w.e.f. 13-8-2024). ----- 1[PARAGRAPH 22 OFFENCES UNDER THE INFORMATION TECHNOLOGY ACT, 2000 (21 OF 2000) Section Description of offence Act to apply for offence or contravention committed outside India.] 75 PARAGRAPH 23 OFFENCES UNDER THE BIOLOGICAL DIVERSITY ACT, 2002 (18 OF 2003) Section Description of offence 55 read with section 6 Penalties for contravention of section 6, etc. PARAGRAPH 24 OFFENCES UNDER THE PROTECTION OF PLANT VARIETIES AND FARMERS RIGHTS ACT, 2001 (53 OF 2001) Section Description of offence 70 read with section 68 Penalty for applying false denomination, etc. 71 read with section 68 Penalty for selling varieties to which false denomination is applied. 72 read with section 68 Penalty for falsely representing a variety as registered. 73 read with section 68 Penalty for subsequent offence. 2* - - - PARAGRAPH 26 OFFENCES UNDER THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT, 1974 (6 OF 1974) Section Description of offence 41 (2) Penalty for pollution of stream or well. 43 Penalty for contravention of provisions of section 24. 3* - - - 1. Subs. by Act 18 of 2023, s. 2 and Schedule for PARAGRAPH 22 (w.e.f. 13-8-2024). 2. PARAGRAPH 25 omitted by s. 2 and Schedule, ibid., (w.e.f. 13-8-2024). 3. PARAGRAPH 27 omitted by s. 2 and Schedule, ibid., (w.e.f. 13-8-2024). 46 ----- PARAGRAPH 28 OFFENCES UNDER THE SUPPRESSION OF UNLAWFUL, ACTS AGAINST SAFETY OF MARITIME NAVIGATION AND FIXED PLATFORMS ON CONTINENTAL SHELF ACT, 2002 (69 OF 2002) Section Description of offence 3 Offences against ship, fixed platform, cargo of a ship, maritime navigational facilities, etc.] 1[PARAGRAPH 29 OFFENCE UNDER THE COMPANIES ACT, 2013 (18 OF 2013) Section Description of offence 447 Punishment for fraud] 2[PART B OFFENCE UNDER THE CUSTOMS ACT, 1962 (52 OF 1962) Section Description of offence 132 False declaration, false documents, etc.] 3[PART C An offence which is the offence of cross border implications and is specified in,— (1) Part A; or 4* - - - (3) the offences against property under Chapter XVII of the Indian Penal Code (45 of 1860).] 5[(4) The offence of wilful attempt to evade any tax, penalty or interest referred to in section 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015).] 1. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). 3. Ins. by Act 20 of 2015, s. 151 (w.e.f. 14-5-2015). 4. Ins. by Act 21 of 2009, s. 13 (w.e.f. 1-6-2009). 5. Serial number (2) omitted by Act 2 of 2013, s. 30 (w.e.f. 15-2-2013). 6. Ins. by Act 22 of 2015, s. 88 (w.e.f. 1-4-2016). 47 -----
30-Jan-2003
17
The Offshore Areas Mineral (Development and Regulation) Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2040/6/a2003-17.pdf
central
# THE OFFSHORE AREAS MINERAL (DEVELOPMENT AND REGULATION) ACT, 2002 ___________ # ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Declaration as to expediency of Union control. 3. Application. 4. Definitions. CHAPTER II GENERAL PROVISIONS FOR ACQUISITION OF OPERATING RIGHTS IN THE OFFSHORE AREAS 5. Reconnaissance, exploration or production to be under permit, licence or lease. 6. Grant of operating right. 7. Termination of operating right. 8. Reservation of areas. 9. Power to close areas. 10. Availability of areas for grant of permit, licence or lease. 11. [Omitted]. 12. Grant of composite licence. 13. Grant of production lease. 13A. Maximum area for which operating rights may be granted. 13B. Transfer of composite licence or production lease. 13C. Certain applications and exploration licence to become ineligible. 14. Period of commencement of operating rights. 15. Power of Central Government to authorise survey, research and scientific investigations in areas covered under operating rights. 16. Royalty. 16A. Establishment of Offshore Areas Mineral Trust. 17. Fixed rent. 18. Contribution towards International Seabed Authority. 19. Safety of persons and property. 19A. Duty of Central Government on mineral conservation and development. 20. Prevention and control of pollution and protection of marine environment. 21. Power of Central Government and administering authority to issue directions. CHAPTER III POWER OF ENTRY, INSPECTION, SEARCH AND SEIZURE 22. Power of entry, inspection, search and seizure. CHAPTER IV OFFENCES 23. Offences. 24. Offences by companies. 25. Place of trial. 26. Previous sanction of Central Government for prosecution. 27. Offences triable by Court of Session. ----- CHAPTER V CIVIL LIABILITY AND ADJUDICATION SECTIONS 28. Civil liability and adjudication. CHAPTER VI MISCELLANEOUS 29. Extension of enactments to offshore areas. 30. Compounding of offences. 31. Recovery of certain sums as arrears of land revenue. 32. Delegation of powers. 33. Protection of action taken in good faith. 34. Appeals. 34A. Power of revision by Central Government. 34B. Power of Central Government to issue directions. 34C. Power of Central Government to call for information. 35. Power to make rules. 36. [Omitted]. 37. Persons to be public servants. 38. Removal of difficulties. THE FIRST SCHEDULE. THE SECOND SCHEDULE. ----- # THE OFFSHORE AREAS MINERAL (DEVELOPMENT AND REGULATION) ACT, 2002 ACT NO. 17 OF 2003 [30th January, 2003.] # An Act to provide for development and regulation of mineral resources in the territorial waters, continental shelf, exclusive economic zone and other maritime zones of India and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Offshore Areas Mineral** (Development and Regulation) Act, 2002. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Declaration as to expediency of Union control.—It is hereby declared that it is expedient in the** public interest that the Union should take under its control the regulation of mines and the development of minerals in offshore areas to the extent herein after provided. **3. Application.—(1) This Act shall apply to all minerals in the offshore areas including any mineral** prescribed by notification under clause (g) of sub-section (1) of section 2 of the Atomic Energy Act, 1962 (33 of 1962) except mineral oils and hydrocarbons related thereto. (2) Except as otherwise provided in this Act, the provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being in force in the offshore areas. **4. Definitions.—In this Act, unless the context otherwise requires,—** (a) “administering authority” means an authority notified, in the Official Gazette, by the Central Government for the purposes of this Act; (b) “atomic minerals” means the minerals included in atomic minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) 2 *[and the rules made thereunder;] (c) “Coast Guard” means the Coast Guard constituted under the Coast Guard Act, 1978 (30 of 1978); 2[(ca) “composite licence” means the exploration licence-cum-production lease, which is a two stage operating right granted for the purpose of undertaking exploration operation followed by production operation; (cb) “dispatch” means removal of minerals or mineral products from the area covered under the production lease and includes the consumption of minerals and mineral products within such area;] (d) “exploration licence” means a licence granted [3][for the purpose of undertaking exploration operation]; (e) “exploration operation” means any operation undertaken for the purpose of exploring, locating or proving the mineral deposits; 2[(ea) “Government company” shall have the meaning assigned to it in clause (45) of section 2 of the Companies Act, 2013, (18 of 2013);] (f) “holder”, in relation to any operating right, means the lessee, licensee or permittee, as the case may be, in respect of such operating right; (g) “hydrocarbon” means very large group of chemical compounds composed of carbon and hydrogen; 1. 15th January, 2010, vide Order No. S.O. 338(E), dated by 11th February, 2010, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2. Ins. by Act 17 of 2023, s. 2 (w.e.f. 17-8-2023). *. Section 24 of the Offshore Areas Mineral (Development and Regulation) (Amendment) Act, 2023 (17 of 2023) provides for power to remove difficulties regarding amendments made therein which reads as under: “24. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of the principal Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this sub-section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.” 3 Subs by s 2 ibid for “under section 12” (w e f 17 8 2023) ----- (h) “Indian national” means a citizen of India and includes a firm or other association, if all the members of the firm or, as the case may be, the members of the association, are citizens of India; (i) “lessee” means the person in whose name [1][a production lease] is granted; (j) “licensee” means the person in whose name [2][a composite licence, or an exploration licence, is granted]; (k) “mine” means any place in the offshore area wherein any exploration or production operation is carried on, together with any vessel, erection, appliance, artificial island or platform and premises in the offshore area used for the purposes of exploration, winning, treating or preparing minerals, obtaining or extracting any mineral or metal by any mode or method, and includes any area covered by [3][a composite licence, or an exploration licence, or a production lease] where exploration or production operation has been, or is being, or may be, carried on under the provisions of this Act; (l) “mineral” includes all minerals except mineral oil and hydrocarbon resources relating thereto; (m) “mineral oil” includes natural gas and petroleum; (n) “offshore area” means the territorial waters, continental shelf, exclusive economic zone and other maritime zones of India under the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 of 1976); (o) “operating right” means the right of holder of a reconnaissance permit, or [4][a composite licence, or an exploration licence, or a production lease;] (p) “permittee” means the person in whose name the reconnaissance permit is granted; (q) “pollution of offshore environment” means the introduction by any person, directly or indirectly, of substances or energy into the offshore environment which results, or is likely to result, in deleterious effect on living resources and marine life, hazards to human health, hindrance to marine activities, including fishing and other legitimate uses of the offshore areas and impairment of quality of sea water for use and reduction of amenities; (r) “prescribed” means prescribed by rules made under this Act; 5[(ra) “production”, with its grammatical variation and cognate expressions, means the winning of mineral within the area covered under a production lease for the purpose of processing or dispatch;] (s) “production operation” means any operation undertaken for the purpose of winning any mineral from the offshore area and includes any operation directly or indirectly necessary there for or incidental thereto; (t) “production lease” means a lease granted [6][under section 8 or section 12 or section 13] which confers an exclusive right for the purpose of undertaking production operation; (u) “reconnaissance operation” means any preliminary geo-scientific survey undertaken for the purpose of searching or locating mineral deposits; (v) “reconnaissance permit” means a permit granted [7]*** for the purpose of undertaking reconnaissance operation; 5[(va) “standard block” means a block of the offshore area of one minute latitude by one minute longitude and includes the seabed and its subsoil and waters superjacent to the seabed within such block;] (w) “vessel” includes any ship, [8][barge, boat, container, sailing vessel or stationary vessel or any other vessel of any description, submersible or otherwise and remotely operated or otherwise, used in any operation or any activity pursuant thereto]. 1. Subs. by Act 17 of 2023, s. 2, for “the production lease” (w.e.f. 17-8-2023). 2. Subs. by s. 2, ibid., for “the exploration licence is granted” (w.e.f. 17-8-2023). 3. Subs. by s. 2, ibid., for “an exploration licence or production lease” (w.e.f. 17-8-2023). 4. Subs. by s. 2, ibid., for “an exploration licence, or a production lease” (w.e.f. 17-8-2023). 5. Ins. by s. 2, ibid. (w.e.f. 17-8-2023). 6. Subs. by s. 2, ibid., for “under section 13” (w.e.f. 17-8-2023). 7. The words and figures “under section 11” omitted by s. 2, ibid. (w.e.f. 17-8-2023). 8 Subs by s 2 ibid for “boat sailing vessel or any other vessel of any description” (w e f 17 8 2023) ----- CHAPTER II GENERAL PROVISIONS FOR ACQUISITION OF OPERATING RIGHTS IN THE OFFSHORE AREAS **5. Reconnaissance, exploration or production to be under permit, licence or lease.—(1) No** person shall undertake any reconnaissance operation, exploration operation or production operation in the offshore areas, except under and in accordance with the prescribed terms and conditions of a reconnaissance permit, [1][a composite licence, or an exploration licence, or a production lease, granted] under this Act and the rules made thereunder: Provided that nothing in this sub-section shall apply to any reconnaissance operation or exploration operation undertaken by the Geological Survey of India, [2][Atomic Minerals Directorate for Exploration and Research], the Chief Hydrographer to the Government of India of [3][the National Hydrographic Office], the National Institute of Oceanography, the National Institute of Ocean Technology of Department of Ocean Development of the Government of India, or [4][any other agency including a private entity, duly authorised in this behalf by the Central Government by notification in the Official Gazette, subject to such conditions as may be specified therein.] 5[(2) Every permittee, licensee and lessee referred to in sub-section (1), and the Government organisation, agency or private entity referred to in the proviso thereof, shall— (a) furnish to the administering authority and such other authority as may be prescribed, all exploration and operational data, reports, samples and other information in respect of or collected pursuant to an operation, in such manner and within such period, as may be prescribed; and (b) all exploration and operational data, reports, samples and other information in respect of or collected pursuant to an operation, shall be held by such permittee, licensee, lessee, Government organisation, agency or private entity, as the case may be, in strict confidence and any dissemination, pursuant to a sale or otherwise, of such data, reports or other information, or sharing of its samples, shall be subject to such terms and conditions, as may be prescribed.] (3) Notwithstanding anything contained in this Act, the Central Government may— (a) authorise seaward artillery practice under the Seaward Artillery Practice Act, 1949 (8 of 1949); (b) provide for, by notification in the Official Gazette, special measures to ensure public safety and interest, the defence of India and civil defence, conduct of the naval operations and exercises, national security and other strategic considerations and the matters connected therewith during war like conditions or otherwise. (4) No operating right shall be [6][granted, extended or acquired] otherwise than in accordance with the provisions of this Act and the rules made thereunder and any reconnaissance permit, [7][composite licence, exploration licence or production lease, granted, extended or acquired] in contravention of the provisions of this Act or any rules made thereunder, shall be void. **6. Grant of operating right.—The Central Government shall not grant an operating right to any** person unless such person— (a) is an Indian national, or a company as defined in [8][clause (20) of section 2 of the Companies Act, 2013 (18 of 2013)]; and (b) satisfies such conditions as may be prescribed: 9[Provided that no exploration licence, or composite licence, or production lease shall be granted for an area to any person other than the Government, a Government company or a corporation, in respect of any minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and 1. Subs. by Act 17 of 2023, s. 3, for “exploration licence or production lease granted” (w.e.f. 17-8-2023). 2. Subs. by s. 3, ibid., for “Atomic Minerals Directorate of Exploration and Research” (w.e.f. 17-8-2023). 3. Subs. by s. 3, ibid., for “Naval Hydrographic Office of the Indian Navy” (w.e.f. 17-8-2023). 4. Subs. by s. 3, ibid., for “any other agency duly authorised in this behalf by the Central Government” (w.e.f. 17-8-2023). 5. Subs. by s. 3, ibid., for sub-section (2) (w.e.f. 17-8-2023). 6. Subs. by s. 3, ibid., for “granted or renewed” (w.e.f. 17-8-2023). 7. Subs. by s. 3, ibid., for “exploration licence or production lease granted, renewed or acquired” (w.e.f. 17-8-2023). 8. Subs. by s. 4, ibid., for “section 3 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 17-8-2023). 9 Subs by s 4 ibid for the proviso (w e f 17 8 2023) ----- Regulation) Act, 1957 (67 of 1957), subject to such conditions and manner as may be prescribed, where the grade of such mineral in such area is equal to or greater than such threshold value as the Central Government may, by notification in the Official Gazette, specify: Provided further that no production lease shall be granted in respect of any part of the offshore area, unless the existence of mineral resources in such offshore area has been adequately established in accordance with such parameters as may be prescribed.] **7. Termination of operating right.—(1) Where the Central Government, after consultation with the** administering authority, is of the opinion [1][that it is expedient in public interest, strategic interest of the country, in the interest of] development and regulation of offshore mineral resources, preservation of natural environment and prevention of pollution, avoidance of danger to public health or communication, ensuring safety of any offshore structure or conservation of mineral resources [2][or for any other reason], the Central Government may prematurely terminate any operating right in respect of any mineral in any offshore area or part thereof. (2) No order for premature termination of operating right under sub-section (1) shall be made except after giving the holder of operating right a reasonable [3][opportunity of being heard, except in cases where premature termination is being done on the grounds of strategic interest of the country]. (3) Where the holder of any operating right fails to commence operation within the period specified in section 14 or discontinues the operation for a period of two years, the operating right shall lapse from the date of execution of the lease or, as the case may be, discontinuance of the operation: Provided that the administering authority, on an application made by the holder of operating right and after being satisfied that such non-commencement of operation or discontinuation thereof, is due to the reasons beyond the control of the holder of operating right, may [4][extend the period specified in section 14 by a further period not exceeding one year and such extension shall not be granted for more than once during the entire period of operating right:] 5[Provided further that where the holder of operating right— (a) fails to undertake operation; or (b) having commenced the operation, discontinues such operation, before the end of the extended period, such operating right shall also lapse from the date of execution of the lease or, as the case may be, discontinuance of the operation.] 5[(4) Where the holder of a production lease fails to undertake production and dispatch for a period of four years after the date of execution of the lease, or having commenced production and dispatch, discontinues the same for a period of two years, then such lease shall lapse on the expiry of the period of four years from the date of its execution or, as the case may be, two years from date of discontinuance of the production and dispatch: Provided that the administering authority may, on an application made by the lessee, and after being satisfied that such non-commencement of production, or dispatch, or discontinuation thereof, was due to the reasons beyond the control of the lessee, may extend such period by a further period not exceeding one year, but such extension shall not be granted for more than once during the entire period of lease: Provided further that where the lessee,— (a) fails to undertake production or dispatch; or (b) having commenced the production and dispatch, discontinues the same, before the end of the extended period, such lease shall lapse from the date of its execution or, as the case may be, discontinuance of production or dispatch.] **8. Reservation of areas.—(1) The Central Government may, from time to time, by notification in the** Official Gazette, reserve any offshore area not already held under any operating right, for the purposes of 1. Subs. by Act 17 of 2023, s. 5, for “that it is expedient in the interest of” (w.e.f. 17-8-2023). 2. Ins. by s. 5, ibid. (w.e.f. 17-8-2023). 3. Subs. by s. 5, ibid., for “opportunity of being heard” (w.e.f. 17-8-2023). 4. Subs. by s. 5, ibid., for “condone such non-commencement or discontinuation.” (w.e.f. 17-8-2023). 5 Ins by s 5 ibid (w e f 17 8 2023) ----- the Central Government and, where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area shall be reserved. (2) The Central Government may, from time to time, by notification in the Official Gazette, dereserve, any area reserved under sub-section (1), in the interest of development and regulation of the offshore mineral. 1[(3) Where the Central Government reserves any offshore area under sub-section (1), the administering authority may, subject to such terms and conditions as may be prescribed, grant a composite licence, or a production lease, in such area or any part thereof to the Government, or a Government company, or a corporation. (4) A composite licence or a production lease granted to the Government, or a Government company, or a corporation under sub-section (3) shall be subject to the same terms and conditions applicable to a licensee or a lessee, as the case may be, except the procedure specified for grant of a composite licence under section 12 or a production lease under section 13. (5) Where a Government company, or corporation is desirous of carrying out the exploration operation or production operation in a joint venture with other persons, the joint venture partner shall be selected through a competitive process, and such Government company or corporation shall hold more than seventy-four per cent. of the paid up share capital in such joint venture.] **9. Power to close areas.—(1) The Central Government may, in the public interest, by order in** writing and communicated to the permittee, licensee or lessee, as the case may be, close any area either in part or whole, covered under any operating right, for [2][such period as may be specified in the order, for] the preservation of natural environment and prevention of pollution, or to avoid danger to public health, or communication, or to ensure safety of any offshore structure or platform, or for the conservation of 3[offshore mineral, or for regulation of offshore areas, or for national security] or for any other strategic consideration. (2) Any area, either in part or whole closed under sub-section (1) and included in any operating right, shall, from the date of such order, be deemed to be excluded for the purposes of the operating right [2][for such period as may be specified in the order] and the holder of the operating right shall not undertake any operation in the area covered under such order [4][during the period of closure specified therein]. **10. Availability of areas for grant of permit, licence or lease.—[5][Within six months] from the date** of commencement of this Act, and subsequently at such times as may be considered necessary in this behalf by the administering authority, it shall, by notification in the Official Gazette, declare the parts of the offshore areas which shall be available for grant of [6][reconnaissance permit, or exploration licence, or composite licence, or production lease]. 7[* - - - *] **11. [Grant of reconnaissance permit.]—** _Omitted by the Offshore Areas Mineral_ (Development and _Regulation) Amendment_ _Act, 2023 (17 of 2023), s. 9 (w.e.f. 17-8-2023)._ **8[12. Grant of composite licence.—(1) The administering authority may, in respect of an offshore** area where the existence of mineral resources has not been adequately established for grant of a production lease as required by the second proviso to section 6, after inviting applications in this behalf, select any person for grant of a composite licence, who— (a) fulfils the eligibility conditions as specified in this Act and such conditions as may be prescribed; and (b) is selected through auction by method of competitive bidding, including e-auction, conducted on the basis of such terms and conditions, manner and bidding parameters, as may be prescribed. 1. Ins. by Act 17 of 2023, s. 6 (w.e.f. 17-8-2023). 2. Ins. by s. 7, ibid. (w.e.f. 17-8-2023). 3. Subs. by s. 7, ibid., for “offshore mineral, or for national security” (w.e.f. 17-8-2023). 4. Subs. by s. 7, ibid., for “from the date specified therein” (w.e.f. 17-8-2023). 5. Subs. by s. 8, ibid., for “(1) Within six months” (w.e.f. 17-8-2023). 6. Subs. by s. 8, ibid., for “reconnaissance permit, exploration licence or production lease” (w.e.f. 17-8-2023). 7. Sub-section (2) and (3) omitted by s. 8, ibid. (w.e.f. 17-8-2023). 8 Subs by s 10 ibid for section 12 and 13 (w e f 17 8 2023) ----- (2) The Central Government shall grant the composite licence to the person selected in accordance with the procedure laid down in sub-section (1). (3) The licensee shall complete the exploration operations satisfactorily, as specified in the notice inviting applications, within a period of three years from the date of grant of the composite licence: Provided that the administering authority may, on an application made by the licensee three months before the lapse of the said period, for reasons to be recorded in writing and subject to such conditions as may be prescribed, grant an extension for a period of two years to the licensee for satisfactory completion of the exploration operations: Provided further that no further extension shall be granted upon expiry of the extended period, if any, granted under the first proviso. (4) The area granted under a composite licence shall comprise of contiguous standard blocks, which in aggregate do not exceed an area of thirty minutes latitude by thirty minutes longitude. (5) Every licensee shall, on being granted a composite licence, commence and carry out exploration operation subject to such terms, milestones and relinquishment requirements, as may be prescribed. (6) A licensee, who has adequately established the existence of mineral resources in an offshore area held under the composite licence, or part thereof, as required by the second proviso to section 6, shall, within the period specified or extended under sub-section (3), subject to such terms and conditions, and on making an application to the administering authority in such form, as may be prescribed, be granted one or more production leases: Provided that such licensee— (a) is not in breach of the terms and conditions of his composite licence; (b) continues to be eligible for grant of a production lease in accordance with section 6; and (c) has applied for grant of production lease within six months of completion of his exploration operations: Provided further that the total area of such production lease or production leases, granted in pursuance of a single composite licence, shall not exceed fifteen minutes latitude by fifteen minutes longitude. (7) The administering authority shall, on receipt of an application under sub-section (6), and on being satisfied that the licensee meets the requirements under the provisions of this Act and the rules made thereunder, recommend to the Central Government for grant of production lease to such licensee. (8) The Central Government shall, on receipt of a recommendation under sub-section (7) from the administering authority, grant production lease to the licensee in accordance with such procedure as may be prescribed. (9) Every production lease granted in pursuance of a composite licence shall be for a period of fifty years. (10) All rights and interests held under a composite licence in the parts of an offshore area, in respect of which no production lease is granted, shall cease to exist upon expiry of the composite licence. (11) The provisions of this section shall not apply to— (a) the areas covered under section 8; and (b) the minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), where the grade of atomic mineral is equal to or greater than such threshold value, as the Central Government may, by notification in the Official Gazette, specify. **13. Grant of production lease.— (1) The administering authority may, in respect of an offshore area** where the existence of mineral resources has been adequately established for grant of production lease as required by the second proviso to section 6, after inviting applications in this behalf, select any person for grant of a production lease, who— ----- (a) fulfils the eligibility conditions as specified in this Act and such conditions as may be prescribed; and (b) is selected through auction by method of competitive bidding, including e-auction, conducted on the basis of such terms and conditions, manner and bidding parameters, as may be prescribed. (2) The Central Government shall grant the production lease to the applicant selected in accordance with the procedure laid down under sub-section (1). (3) Every production lease under this section shall be granted for a period of fifty years. (4) The area under a production lease shall comprise of contiguous standard blocks and shall not exceed an area of fifteen minutes latitude by fifteen minutes longitude. (5) Upon grant of a production lease, the lessee shall commence and carry out production operation in such manner and subject to such terms and conditions, as may be prescribed. (6) The provisions of this section shall not apply to— (a) the areas covered under section 8; and (b) the minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), where the grade of atomic mineral is equal to or greater than such threshold value, as the Central Government may, by notification in the Official Gazette, specify.] 1[13A. Maximum area for which operating rights may be granted.—(1) Notwithstanding anything contained in section 12 or section 13, no person shall acquire in respect of any mineral or a group of associated minerals, as may be prescribed, one or more exploration licence, composite licence and production lease, all taken together and covering a total area of more than forty-five minutes latitude by forty-five minutes longitude: Provided that if the Central Government is of the opinion that in the interest of the development of any mineral or industry, it is necessary so to do, it may, for the reasons to be recorded in writing, increase or decrease the said area limit in respect of any mineral or any specified category of deposits of such mineral or such group of associated minerals. (2) For the purposes of this section, a person acquiring by, or in the name of, another person an operating right which is intended for himself, shall be deemed to be acquiring it himself. (3) For the purposes of determining the total area referred to in sub-section (1), the area held under an operating right by a person as a member of a co-operative society, or a company, or a corporation, or a Hindu undivided family, or a partner of a firm, shall be deducted from the area referred to in sub-section (1) so that the sum total of the area held by such person, under an operating right, whether as such member or partner, or individually, may not, in any case, exceed the total area specified in sub-section (1). **13B. Transfer of composite licence or production lease.— (1) A composite licence or a production** lease granted under section 8, or through competitive bidding under section 12 or section 13, may be transferred by the relevant licensee or lessee, as the case may be, in such manner and subject to such conditions, as may be prescribed, to any person eligible for grant of such licence or lease, under the provisions of this Act: Provided that no such transfer of a composite licence or a production lease shall be made in contravention of any conditions, subject to which such licence or lease was granted. _Explanation.—For the purposes of this sub-section, it is clarified that transfer may include one or_ more production leases, granted pursuant to one composite licence. (2) The provisions of this Act, the rules made thereunder and the terms and conditions of a composite licence or a production lease, shall be binding upon the person to whom such licence or lease, as the case may be, is transferred under sub-section (1). **13C. Certain applications and exploration licence to become ineligible.—(1) On and from the** date of commencement of the Offshore Areas Mineral (Development and Regulation) Amendment Act, 1 Ins by Act 17 of 2023 s 11 (w e f 17 8 2023) ----- 2023, auction being the sole method of selection for grant of composite licence or production lease under sections 12 and 13,— (a) all applications received prior to the said date of commencement for grant of composite licence or production lease shall become ineligible; (b) any exploration licence granted prior to the said date of commencement shall become ineligible for grant of production lease over the offshore area covered by such exploration licence. (2) The provisions of sub-section (1) shall be applicable notwithstanding anything contained in this Act, or any order or direction to the contrary, passed by any court or authority, prior to the commencement of the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023.] **14. Period of commencement of operating rights.—A holder of operating right shall commence** operation within the period specified below after the grant of the operating right and shall thereafter conduct such operation in proper, skilful and workman-like manner, as follows:— (a) reconnaissance permit — six months; 1[(aa) composite licence — one year;] (b) exploration licence — one year; and (c) production lease — two years. **15. Power of Central Government to authorise survey, research and scientific investigations in** **areas covered under operating rights.—Any person or agency authorised by notification in the Official** Gazette, by the Central Government in this behalf, may conduct survey, research, diving operations and scientific investigations in the offshore areas, including any area covered under operating rights and the permittee, licensee or lessee, as the case may be, shall permit such person or agency to undertake the said investigations in their respective areas and to render such assistance as may be necessary for conduct of the investigations. **16. Royalty.—(1) A lessee shall pay royalty to the Central Government in respect of any mineral** removed or [2][consumed from the area covered under his production] lease, at the rate for the time being specified in the First Schedule in respect of that mineral. (2) The Central Government may, by notification in the Official Gazette, amend the First Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification: Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of three years. 3[16A. Establishment of Offshore Areas Mineral Trust.—(1) The Central Government shall, by notification in the Official Gazette, establish a Trust, as a non-profit autonomous body, to be called the Offshore Areas Mineral Trust. (2) The object of the Offshore Areas Mineral Trust shall be to use the funds accrued to it for the following purposes, namely:— (a) research, administration, studies and related expenditure with respect to offshore areas and mitigation of any adverse impact that may be caused to the ecology in the offshore area, due to operations undertaken; or (b) providing relief upon the occurrence of any disaster in the offshore area; or (c) the purposes of exploration in the offshore area; or (d) for the interest and benefit of persons affected by exploration or production operations undertaken; or (e) such other purposes, as may be prescribed. 1. Ins. by Act 17 of 2023, s. 12, (w.e.f. 17-8-2023). 2. Subs. by s. 13, ibid., for “consumed by him from the area covered under the production” (w.e.f. 17-8-2023). 3 Ins by s 14 ibid (w e f 17 8 2023) ----- (3) The composition and functions of the Offshore Areas Mineral Trust shall be such as may be prescribed. (4) The funds accrued to the Offshore Areas Mineral Trust shall be non-lapsable under the public account of India and be administered in such manner as may be prescribed. (5) A lessee shall pay, in addition to the royalty, to the Offshore Areas Mineral Trust, an amount which is equivalent to such percentage of the royalty paid in terms of the First Schedule, not exceeding one-third of such royalty, in such manner as may be prescribed. (6) The entities specified and notified under sub-section (1) of section 5 shall be eligible for funding under the Offshore Areas Mineral Trust, subject to such conditions as may be specified by the Central Government.] **17. Fixed rent.—(1) A lessee shall pay to the Central Government, every year, fixed rent in respect** of the area covered under the production lease, at the rate for the time being specified in the Second Schedule: Provided that where the lessee becomes liable under section 16 to pay royalty for any mineral removed or [1][consumed from the area] covered under such lease, he shall be liable to pay either such royalty or the fixed rent in respect of that area, whichever is greater. (2) The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which fixed rent shall be payable in respect of any area covered under a production lease and such enhancement or reduction shall take effect from such date as may be specified in the notification: Provided that the Central Government shall not enhance the rate of the fixed rent more than once during any period of three years. **18. Contribution towards International Seabed Authority.—[2][Every lessee shall, in addition to** other payments required under this Act, pay to the Central Government in advance, the amount to be paid to the International Seabed Authority in respect of the offshore area granted under his production lease falling in such part of the continental shelf extending beyond two hundred nautical miles, from the baseline from which the breadth of the territorial sea is measured, towards fulfilment of the obligation of the Government of India under Article 82 of the United Nations Convention on the Law of the Sea, 1982.] **19. Safety of persons and property.—(1) The permittee, licensee, lessee or any other person** undertaking the reconnaissance operation or exploration operation or production operation under sub-section (1) of section 5 or any agency undertaking the reconnaissance operation or exploration operation under the proviso to sub-section (1) of the said section shall be responsible to ensure that the concerned operation is conducted with due regard to the safety and health of persons including divers and safety and security of property engaged in the operation. (2) The Central Government may, by notification in the Official Gazette, declare safety zones in respect of offshore activities as may be necessary and prescribe the norms for regulating the safety and health of persons and safety of property engaged in operations authorised under this Act, the implementation thereof and matters connected therewith. (3) In the event of any contravention of provisions of sub-section (1) or the norms prescribed under sub-section (2) by the permittee, licensee, lessee or any other person undertaking the reconnaissance operation or exploration operation or production operation under sub-section (1) of section 5, or any other agency undertaking the reconnaissance operation or exploration operation under the proviso to sub-section (1) of the said section, shall also be deemed to be responsible for such contravention unless he or it proves that he or it, as the case may be, had taken all reasonable precautions within his or its means for enforcing those provisions, to prevent such contravention. 3[19A. **Duty of Central Government on mineral conservation and development.—The Central** Government shall take necessary steps, as may be prescribed, for the conservation and systematic development of minerals in the offshore areas and for the protection of environment by preventing or controlling any pollution which may be caused by exploration or production operations.] 1. Subs. by Act 17 of 2023, s. 15, for “consumed by him from the area” (w.e.f. 17-8-2023). 2. Subs. by s. 16, ibid., for section 18 (w.e.f. 17-8-2023). 3 Ins by s 17 ibid (w e f 17 8 2023) ----- **20. Prevention and control of pollution and protection of marine environment.—(1) Every** holder of the operating rights shall carry out the operations authorised under this Act subject to the provisions of this Act and the rules made thereunder and any other law and the rules made thereunder, for the time being in force for the prevention and control of pollution and protection of marine environment. (2) Every holder of an operating right shall be liable for any pollution of, or damage to, the marine environment resulting from his activities relating to his operating right in the offshore areas and shall pay such compensation, as may be determined by the administering authority keeping in view the extent of pollution or damage, as the case may be. (3) The Central Government may prescribe measures to be taken for prevention and control of pollution and protection of marine environment due to activities in the offshore areas. **21. Power of Central Government and administering authority to issue directions.—(1) The** permittee, licensee or lessee shall comply with such directions as the Central Government or the administering authority may issue, from time to time, for the conservation and systematic development of offshore minerals, prevention of pollution, protection of marine environment, prevention of coastal erosion or prevention of danger to life or property including the marine life. (2) The permittee, licensee or lessee shall comply with such directions as may be issued from time to time by the competent authority or Coast Guard regarding national security, safety and national integrity. _Explanation.—“competent authority” means the competent authority appointed for the purposes of_ sub-section (2) by the Central Government in the Ministry dealing with defence of India. CHAPTER III POWER OF ENTRY, INSPECTION, SEARCH AND SEIZURE **22. Power of entry, inspection, search and seizure.—(1) For the purpose of ascertaining the** position of the working, actual or prospective, of any mine or abandoned mine, or for any other purpose connected with this Act or the rules made thereunder, any officer authorised, by the Central Government in this behalf, by general or special order, may— (a) enter and inspect, at all reasonable times, any mine; (b) weigh, draw samples or take measurements of the stocks of minerals recovered from any mine; (c) survey and take samples and measurements in any such mine; (d) examine any document, book, register or record in the possession or power of any person having the control of, or connected with, any mine and place marks of identification thereon and take extracts from, or make copies of, such document, book, register or record; (e) order the production of any such document, book, register and record, by the person referred to in clause (d); and (f) examine any person having the control of, or connected with, any mine. (2) Any authorised officer may, for the purpose of ascertaining whether or not the requirements of this Act or any rule made thereunder have been complied with, either with, or where it is not possible to obtain warrant conveniently, then, without, a warrant, — (a) search any mine; (b) stop or board and search any vessel which is engaged or which is likely to be engaged in any activity regulated under this Act; and (c) require the person for the time being having command or charge of mine or such vessel to produce any licence, permit, log book or other document relating, to the vessel or mine and examine or take copies of such licence, permit, log book or other document, as the case may be, for ascertaining the requirements of sub-section (1). (3) Where the authorised officer has reason to believe that any vessel or mine has been, or is being, or is about to be, used or employed, as the case may be, in violation of any provision of this Act or rule made thereunder, he may, with, or where it is not possible to obtain warrant conveniently, then, without, a warrant,— ----- (a) seize and detain such vessel or mine, including any gear, equipment, stores or cargo found on board such vessel or belonging to the vessel and seize any mineral found on board the vessel; (b) seize any evidence relating to violation of any provision of this Act or rule made thereunder; (c) require the person for the time being having command or charge of the vessel, platform or erection of the mine so seized or detained to bring such vessel, platform or erection to any specified port; (d) arrest any person whom such officer has reason to believe, has committed such violation: Provided that the authorised officer, after arresting such person and before producing him before the competent court, shall inform the administering authority regarding the arrest and grounds of arrest communicated to the person so arrested. (4) In taking any action under sub-section (3), the authorised officer may use such force as may be reasonably necessary. (5) Where any vessel or other things are seized or detained, under sub-section (3),— (a) the vessel or other things so seized or detained shall, as soon as possible, be produced before the court competent to try an offence under this Act and the court shall make such order as it may deem fit for the retention or custody of such vessel or things with the Central Government or any other authority pending the completion of any proceedings for the prosecution of any offence relating to such vessel or things, as the case may be, under this Act or rules made thereunder: Provided that the court may, on an application made by the owner or the person for the time being having command or charge of the vessel or mine, order the release of the vessel or other things so seized or detained, to the owner or the person for the time being having command or charge of the vessel or mine, furnishing security in the form of cash or a bank guarantee for an amount which is not less than fifty per cent. of the value of the vessel or things so seized or detained; (b) the administering authority shall be informed by the authorised officer of such seizure and the details thereof. (6) Where, in pursuance of the commission of any offence under this Act, any vessel is pursued beyond the limits of the offshore area, the powers conferred on an authorised officer by this section may be exercised beyond such limits in the circumstances and to the extent recognised by international law and State practice. (7) Every person to whom an order or warrant is issued or given by virtue of the powers conferred by this section shall be legally bound to comply with such order or warrant. _Explanation.—For the purposes of this section,—_ (i) “authorised officer” means an officer of the Central Government notified as such in the Official Gazette, by the Central Government; (ii) “warrant” means a warrant issued by the Judicial Magistrate or the Metropolitan Magistrate, as the case may be, within whose jurisdiction the place, where the warrant is to be executed, is situated. CHAPTER IV OFFENCES **23. Offences.—(1) [1][(a) whoever undertakes any reconnaissance operation, or exploration operation,** or production operation in an offshore area without a reconnaissance permit, or a composite licence, or an exploration licence, or a production lease, as the case may be, shall be punishable with imprisonment for a term which may extend to five years, or with fine of five lakh rupees, which may extend to ten lakh rupees, or with both; (b) any permittee or licensee or lessee, who fails to furnish the required data, or information, or document under sub-section (2) of section 5 in the manner provided therein, shall be punishable with imprisonment which may extend to three years, or with fine of five lakh rupees, which may extend to ten lakh rupees, or with both. 1 Subs by Act 17 of 2023 s 18 for clauses (a) and (b) (w e f 17 8 2023) ----- _Explanation.—For the purposes of clauses (a) and (b), the amount of fine provided shall be in respect_ of each standard block of such part of the offshore area where such reconnaissance operation, or exploration operation, or production operation is undertaken.] (c) Any vessel, together with its gear, boats, stores and cargo, used or employed in violation of section 5, along with any mineral recovered or processed in violation of that section, if any, shall be confiscated. (d) Whoever ships, transports, offers for sale, sells, purchases, imports, exports, or has custody, control or possession of, any mineral recovered, processed or retained in violation of this Act or any rule made thereunder shall be [1][punishable] with imprisonment which may extend to three years, or [2][with fine of twenty-five lakh rupees, which may extend to fifty lakh rupees], or with both. (2) Whoever— (a) intentionally obstructs any authorised officer referred to in section 22 in the exercise of any powers conferred under this Act; or (b) fails to afford reasonable facilities to the authorised officer referred to in section 22 or his assistant to board the vessel or enter the mine or to provide for adequate security to such officer or assistant at the time of entry into the vessel or mine or when they are on board such vessel or mine; or (c) fails to stop the vessel or mine or to produce the licence, permit, log book or any other document, as the case may be, on board such vessel, or mine, when required to do so by the authorised officer referred to in section 22; or (d) interferes with, delays, or prevents, by any means, the lawful apprehension of any person under this Act, shall be [3][punishable with imprisonment which may extend to five years, or with fine of two lakh rupees, which may extend to five lakh rupees], or with both. 4[(2A) Whoever, having been convicted of an offence under sub-section (1) or sub-section (2), is again convicted of an offence under that sub-section, shall, in addition to the punishment provided therefor, be punishable with additional fine which may extend to one lakh rupees for each day during which he continues to commit that offence.] (3) Whoever contravenes any other provision of this Act [5]***, other than those specified in sub-sections (1) and (2) shall be [6][punishable] with imprisonment for a term which may extend to five years, or [7][with fine of fifty lakh rupees, which may extend to one crore rupees], or with both, and in the case of continuing contravention, with an additional fine which may extend to five lakh rupees for every day during which such contravention continues. [4][(4) Any rule made under any provision of this Act may provide that any contravention thereof shall be punishable with imprisonment for a term which may extend to five years or with fine of fifty lakh rupees, which may extend to one crore rupees, or with both, and in the case of a continuing contravention, with additional fine which may extend to five lakh rupees for every day during which such contravention continues after conviction for the first such contravention.] **24. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was directly in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 1. Subs. by Act 17 of 2023, s. 18, for “punished” (w.e.f. 17-8-2023). 2. Subs. by s. 18, ibid., for “with fine which may extend to fifty lakh rupees” (w.e.f. 17-8-2023). 3. Subs. by s. 18, _ibid., for “punished with imprisonment for a term which may extend to five years, or with fine which may_ extend to fifty thousand rupees” (w.e.f. 17-8-2023). 4. Ins. by s. 18, ibid. (w.e.f. 17-8-2023). 5. The words “or the rules made thereunder” omitted by s. 18, ibid. (w.e.f. 17-8-2023). 6. Subs. by s. 18, ibid., for “punished” (w.e.f. 17-8-2023). 7 Subs by s 18 ibid for “with fine which may extend to one crore rupees” (w e f 17 8 2023) ----- Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge and that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act, has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary, or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means anybody corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **25. Place of trial.—Notwithstanding anything contained in other law for the time being in force, any** person committing an offence under this Act or any rule made thereunder or under any of the enactment extended under this Act or under the rules made thereunder shall be tried for the offence in such place as the Central Government may, by general or special order published in the Official Gazette, direct in this behalf. **26. Previous sanction of Central Government for prosecution.—No prosecution for an offence** committed under this Act shall be instituted except with the previous sanction of the Central Government or such officer or authority as may be authorised by the Central Government, by order in writing in this behalf. **27. Offences triable by Court of Session.—Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), all offences under this Act shall be triable by the Court of Session. CHAPTER V CIVIL LIABILITY AND ADJUDICATION **28. Civil liability and adjudication.—(1) A person to whom a permit, licence or lease is granted** under this Act,— (a) contravenes the general terms and conditions imposed by the rules made under this Act shall be liable to pay to the Central Government an amount which shall not be less than five lakh rupees and which may extend to one crore rupees; (b) contravenes any particular terms and conditions applicable only in case of such permittee, licensee or lessee as the case may be, shall also be liable, apart from the liability under clause (a), to pay additional amount to the Central Government which shall not be less than [1][five lakh rupees and which may extend to fifty lakh rupees]. (2) No court or other authority except the authorised officer designated by the Central Government for this purpose, shall have jurisdiction to hear and decide the cases relating to clauses (a) and (b) of sub-section (1). (3) An officer of the Central Government who has been authorised by that Government to file an application before the authorised officer designated under sub-section (2), shall file an application against licensee, lessee or permittee, as the case may be, indicating the civil wrong committed by him under clause (a) or clause (b) of sub-section (1) in such manner as may be prescribed. (4) When an application is filed under sub-section (3), before an authorised officer designated under sub-section (2), he shall serve notice along with the copy of such application to the person, against whom the application is made, to provide him an opportunity to file reply to the application in the prescribed manner and the authorised officer shall dispose of the case after considering the evidence produced either in support or in opposition to the application and after providing the opportunity of hearing. (5) For the purposes of this section, the authorised officer designated under sub-section (2), shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— 1 Subs by Act 17 of 2023 s 19 for “one lakh rupees and which may extend to ten lakh rupees” (w e f 17 8 2023) ----- (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) reviewing its decisions; and (f) any other matter which may be prescribed. CHAPTER VI MISCELLANEOUS **29. Extension of enactments to offshore areas.—The Central Government may, by notification in** the Official Gazette,— (a) extend with such restrictions and modifications as it thinks fit, any enactment for the time being in force in India or any part thereof to the offshore area or any part thereof; and (b) make such provisions as it may consider necessary for facilitating the enforcement of such enactment, and any enactment so extended shall have effect as if the offshore area or the part thereof, as the case may be, is a part of the territory of India. **30. Compounding of offences.—(1) Any offence punishable under this Act may, either before or** after the institution of the prosecution, be compounded by the administering authority or any other officer authorised by the Central Government with respect to that offence, on payment for credit to that Government of such sum as that administering authority or officer, as the case may be, may specify: Provided that such sum shall not, in any case, exceed the maximum amount of the fine which may be imposed under this Act for the offence so compounded. (2) Where an offence is compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded and the offender, if in custody, shall be released forthwith. **31. Recovery of certain sums as arrears of land revenue.—Any licence fee, royalty, fixed rent or** other sum due to the Central Government under this Act or rules made thereunder or under the terms and conditions of a reconnaissance permit, exploration licence or production lease may, on a certificate issued by the administering authority, be recovered in the same manner as if it were an arrear of land revenue and every such sum together with the interest due thereon, shall be the first charge on the assets of the permittee, licensee or lessee, as the case may be. **32. Delegation of powers.—The Central Government may, by notification in the Official Gazette,** direct that any power exercisable by it under this Act or any rule made thereunder may, in relation to such matter and subject to such conditions, if any, as may be specified in the notification, be exercisable also by such officer or authority subordinate to that Government as may be specified in the notification. **33. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against any person for anything which is in good faith done or intended to be done under this Act or any rule made thereunder. **34. Appeals.—(1) Subject to the provisions of sub-section (2), any person aggrieved by an order** made by the administering authority or any officer under this Act or the rules made thereunder may prefer an appeal against such order to the Central Government. (2) Every such appeal shall be preferred within prescribed period from the date on which the impugned order was made: Provided that the Central Government may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within such prescribed period, permit the appellant to prefer the appeal within a further period as may be prescribed. (3) On receipt of any such appeal, the Central Government shall, after giving the parties to the appeal a reasonable opportunity of being heard and after making such inquiry as it deems proper, make such ----- order, as it may think fit, confirming, modifying or reversing the order appealed against, or may send back the case with such direction as it may think fit for a fresh order after taking additional evidence, if necessary. 1[34A. **Power of revision by Central Government.—The Central Government may, of its own** motion and for reasons to be recorded in writing, and in accordance with such terms as may be prescribed, revise any order made by the administering authority or any officer under this Act or the rules made thereunder. **34B. Power of Central Government to issue directions.—Notwithstanding anything contained in** this Act, the Central Government may give such directions to the administering authority, as it may deem necessary, in public interest, strategic interest of the country, conservation and development of mineral, or to carry out the provisions of this Act or the rules made thereunder. **34C. Power of Central Government to call for information.—The Central Government may, for the** purposes of this Act, require— (a) the administering authority; or (b) a permittee or a licensee or a lessee; or (c) any person whom it has reason to believe to be connected with any activity in respect of minerals in the offshore area, to furnish such information as it may deem necessary for, or relevant to, any enquiry or proceeding, under this Act.] **35. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for the purposes of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the terms and conditions of a reconnaissance permit, exploration licence or production lease under sub-section (1) of section 5; 2[(aa) such other authority to whom, all exploration and operational data, reports, samples and other information in respect of or collected pursuant to an operation, is to be furnished by the lessee, licensee or permittee the manner and the period within which, they are to be furnished, under clause (a) of sub-section (2) of section 5; (ab) the terms and conditions subject to which the data, reports, samples or information is to be disseminated pursuant to a sale or otherwise under clause (b) of sub-section (2) of section 5;] (b) conditions for grant of operating right under clause (b) of section 6; 3[(c) the conditions and manner for regulating the grant of mineral concessions in respect of minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), under the first proviso to section 6; (ca) the parameters for adequately establishing existence of mineral resources under the second proviso to section 6;] 4* - - - 2[(ja) the terms and conditions for grant of a composite licence or a production lease to a Government company or corporation under section 8; (jb) the eligibility conditions to be fulfilled, the terms and conditions for conducting competitive bidding, the manner and bidding parameters for grant of a composite licence under sub-section (1) of section 12; (jc) the conditions subject to which extension is to be granted to the licensee for completion of the exploration operations under the first proviso to sub-section (3) of section 12; 1. Ins. by Act 17 of 2023, s. 20 (w.e.f. 17-8-2023). 2. Ins. by s. 21, ibid. (w.e.f. 17-8-2023). 3. Subs. by s. 21, ibid., for clause (c) (w.e.f. 17-8-2023). 4 Clauses (d) to (j) omitted by s 21 ibid (w e f 17 8 2023) ----- (jd) terms, milestone and relinquishment requirements for commencing and carrying out exploration operation under sub-section (5) of section 12; (je) the form of application to be made to the administering authority for grant of production lease under sub-section (6) and the procedure therefor under sub-section (8) of section 12; (jf) eligibility conditions to be fulfilled, the terms and conditions for conducting competitive bidding, the manner and bidding parameters for grant of a production lease under sub-section (1) of section 13; (jg) the terms and conditions subject to which the production operations shall be commenced and carried out under sub-section (5) of section 13; (jh) the group of associated minerals to be specified under sub-section (1) of section 13A; (ji) the manner and the conditions for transfer of a composite licence or a production lease under section 13B; (jj) such other purposes for which the funds accrued to the Offshore Area Mineral Trust shall be used under sub-section (2) of section 16A; (jk) the composition and functions of the Offshore Area Mineral Trust under sub-section (3) of section 16A; (jl) the manner of administration of funds accrued to the Offshore Area Mineral Trust under sub-section (4) of section 16A; (jm) the manner of payment of amounts to the Offshore Area Mineral Trust under sub-section (5) of section 16A;] (k) norms for regulating the safety and health of persons and safety of property engaged in operations authorised under this Act, the implementation thereof and matters connected therewith under sub-section (2) of section 19; 1[(ka) the steps necessary to be taken for conservation and systematic development of minerals in the offshore areas and for the protection of environment by preventing or controlling any pollution which may be caused by exploration or production operations under section 19A;] (l) the measures to be taken for prevention and control of pollution and protection of marine environment due to activities in the offshore areas under sub-section (3) of section 20; (m) the manner of filing application under sub-section (3) of section 28; (n) the manner of filing reply under sub-section (4) of section 28; (o) any other matter under clause (f) of sub-section (5) of section 28; (p) the period within which appeal shall be preferred under, and the further period which may be permitted under the proviso to, sub-section (2) of section 34; 1[(pa) the measures to be taken for preventing illegal mining, transportation, and storage of minerals and for the purposes connected therewith;] (q) any other matter which is to be, or may be, prescribed under this Act. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. [36. Relaxation in specific cases.]— _Omitted by the Offshore Areas Mineral (Development and_ _Regulation (Amendment) Act, 2023_ (17 of 2023), s. 22 (w.e.f. 17-8-2023). 1 Ins by Act 17 of 2023 s 21 (w e f 17 8 2023) ----- **37. Persons to be public servants.—The administering authority or any other officer shall be** deemed, while acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of the Indian Penal Code (45 of 1860). **38. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act,** or of any of the enactments extended under section 29, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or, as the case may be, of such enactment, as may appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section,— (a) in the case of any difficulty arising in giving effect to any provision of this Act, after the expiry of three years from the commencement of such provision; (b) in the case of any difficulty arising in giving effect to the provisions of any enactment extended under section 29, after the expiry of three years from the extension of such enactment. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. ----- THE FIRST SCHEDULE [See section 16(1)] RATES OF ROYALTY 1. Brown ilmenite (leucoxene), Ilmenite, Rutile and Zircon Two per cent. of sale price on ad valorem basis. 2. Dolomite Forty rupees per tonne. 3. Garnet Three per cent. of sale price on ad valorem basis. 4. Gold One and half per cent. of London Bullion Market Association price (commonly referred to as “London Price”) chargeable on the contained gold metal in ore produced. 5. Limestone and Lime mud Forty rupees per tonne. 6. Manganese Ore Three per cent. of sale price on ad valorem basis. 7. Monazite One hundred and twenty-five rupees per tonne. 8. Sillimanite Two and half per cent. of sale price on ad valorem basis. 9. Silver Five per cent. of London metal Exchange price chargeable on the contained silver metal in ore produced. 10. All other minerals not hereinbefore specified. Ten per cent. of sale price on ad valorem basis. ----- THE SECOND SCHEDULE [See section 17(1)] RATES OF FIXED RENT _Rates of fixed rent in rupees per standard block per annum_ Size 1st Year of the lease 2nd to 5th year of the lease 6th to 10th year of the lease 11th year of the lease and onwards 1[Standard block of 1 minute longitude by 1 minute latitude] Nil Rupees 50,000 Rupees 1,00,000 Rupees 2,00,000 1 Subs by Act 17 of 2023 s 23 for entries in column (1) (w e f 17 8 2023) -----
5-Feb-2003
18
The Biological Diversity Act, 2002
https://www.indiacode.nic.in/bitstream/123456789/2046/4/a2003-18.pdf
central
# THE BIOLOGICAL DIVERSITY ACT, 2002 __________ ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGULATION OF ACCESS TO BIOLOGICAL DIVERSITY 3. Certain persons not to undertake Biodiversity related activities without approval of National Biodiversity Authority. 4. Results of research not to be transferred to certain persons without approval of National Biodiversity Authority. 5. Certain provisions not to apply to certain collaborative research projects. 6. Application for intellectual property rights not to be made without approval of National Biodiversity Authority. 7. Prior intimation to State Biodiversity Board for accessing biological resource for certain purposes. CHAPTER III NATIONAL BIODIVERSITY AUTHORITY 8. Establishment of National Biodiversity Authority. 9. Conditions of service of Chairperson, members and Member-Secretary. 10. Chairperson to be Chief Executive of National Biodiversity Authority. 10A. Member Secretary. 11. Removal of members. 12. Meetings of National Biodiversity Authority. 13. Committees of National Biodiversity Authority. 14. Officers and employees of National Biodiversity Authority. 15. Authentication of orders and decisions of National Biodiversity Authority. 16. Delegation of powers. 17. Expenses of National Biodiversity Authority to be defrayed out of the Consolidated Fund of India. CHAPTER IV FUNCTIONS AND POWERS OF THE NATIONAL BIODIVERSITY AUTHORITY 18. Functions and powers of National Biodiversity Authority. CHAPTER V APPROVAL BY THE NATIONAL BIODIVERSITY AUTHORITY 19. Approval by National Biodiversity Authority for undertaking certain activities. 20. Transfer of results of research. 21. Determination of fair and equitable benefit sharing by National Biodiversity Authority. 1 ----- CHAPTER VI STATE BIODIVERSITY BOARD SECTIONS 22. Establishment of State Biodiversity Board. 23. Functions of State Biodiversity Board. 24. Power of State Biodiversity Board to restrict certain activities violating the objectives of conservation, etc. 25. Provisions of sections 9 to 17 to apply with modifications to State Biodiversity Board. CHAPTER VII FINANCE, ACCONTS AND AUDIT OF NATIONAL BIODIVERSITY AUTHORITY 26. Grants or loans by the Central Government. 27. Constitution of National Biodiversity Fund. 28. Annual report of National Biodiversity Authority. 29. Budget, accounts and audit. 30. Annual report to be laid before Parliament. CHAPTER VIII FINANCE, ACCOUNTS AND AUDIT OF STATE BIODIVERSITY BOARD 31. Grants of money by State Government to State Biodiversity Board. 32. Constitution of State Biodiversity Fund. 33. Annual report of State Biodiversity Board. 34. Audit of accounts of State Biodiversity Board. 35. Annual report of State Biodiversity Board to be laid before State Legislature. CHAPTER IX DUTIES OF THE CENTRAL AND THE STATE GOVERNMENTS 36. Central Government to develop national strategies and plans for conservation, promotion and sustainable use of biological diversity. 36A. Measures to be taken by National Biodiversity Authority. 36B. State Government to develop strategies and plans for conservation and sustainable use of biological diversity. 37. Biodiversity heritage sites. 38. Power of Central Government to notify threatened species. 39. Power of Central Government to designate repositories. 40. Provisions of this Act not to apply in certain cases. CHAPTER X BIODIVERSITY MANAGEMENT COMMITTEES 41. Constitutions of Biodiversity Management Committees. CHAPTER XI LOCAL BIODIVERSITY FUND 42. Grants to Local Biodiversity Fund. 43. Constitution of Local Biodiversity Fund. 44. Application of Local Biodiversity Fund. 45. Annual statement of Biodiversity Management Committees. 46. Audit of accounts of Biodiversity Management Committees. 2 ----- SECTIONS 47. Annual report, etc., of Biodiversity Management Committee to be submitted to District Magistrate. CHAPTER XII MISCELLANEOUS 48. National Biodiversity Authority to be bound by the directions given by Central Government. 49. Power of State Government to give directions. 50. Settlement of disputes. 51. Members, officers, etc., of National Biodiversity Authority and State Biodiversity Board deemed to be public servants. 52. Appeal. 52A. Appeal to National Green Tribunal. 53. Execution of determination or order. 54. Protection of action taken in good faith. 55. Penalties. 55A. Adjudication of penalties. 55B. Power to enter, inspect, survey, etc. 56. Penalty for contravention for directions or orders of Central Government, State Government, National Biodiversity Authority and State Biodiversity Boards. 57. Offences by companies. 58. [Omitted.]. 59. Act to have effect in addition to other Acts. 59A. Act not to apply to certain persons. 60. Power of Central Government to give directions to State Government. 61. Cognizance of offences. 62. Power of Central Government to make rules. 63. Power of State Government to make rules. 64. Power to make regulations. 65. Power to remove difficulties. 3 ----- # THE BIOLOGICAL DIVERSITY ACT, 2002 ACT NO. 18 OF 2003 [5th February, 2003.] # An Act to provide for conservation of biological diversity, sustainable use of its components and fair and equitable sharing of the benefits arising out of the use of biological resources, knowledge and for matters connected therewith or incidental thereto. WHEREAS India is rich in biological diversity and associated traditional and contemporary knowledge system relating thereto. AND WHEREAS India is a [1][Party] to the United Nations Convention on Biological Diversity signed at Rio de Janeiro on the 5th day of June, 1992; AND WHEREAS the said Convention came into force on the 29th December, 1993; AND WHEREAS the said Convention reaffirms the sovereign rights of the States over their biological resources; AND WHEREAS the said Convention has the main objective of conservation of biological diversity, sustainable use of its components and fair and equitable sharing of the benefits arising out of utilisation of genetic resources; 2[AND WHEREAS India is a Party to the Nagoya Protocol on access to genetic resources and the fair and equitable sharing of benefits arising from their utilisation to the convention on Biological Diversity which was adopted on the 29th October, 2010 in Nagoya, Japan; AND WHEREAS it is considered necessary to provide for conservation, sustainable utilisation, fair and equitable sharing of the benefits arising out of utilisation of biological resources and also to give effect to the said Convention.] BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Biological Diversity** Act, 2002. (2) It extends to the whole of India. (3) It shall come into force on such date[3] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** 4[(a) “access” means collecting, procuring or possessing any biological resource occurring in or obtained from India or traditional knowledge associated thereto, for the purposes of research or bio-survey or commercial utilisation; 1. Subs. by Act 10 of 2023, s. 2, for “party” (w.e.f. 1-4-2024). 2. Subs. by s. 2, ibid., for certain words (w.e.f. 1-4-2024). 3. 1st October, 2003 (Ss. 1, 2, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 48, 54, 59, 62, 63, 64, 65), _vide notification No. S.O._ 1146(E), dated 1st October, 2003, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 1st July, 2004 (Ss. 3, 4, 5, 6, 7, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 49, 50, 51, 52, 53, 55, 56, 57, 58, 60, 61), _vide notification No. S.O. 753(E), dated 1st July, 2004,_ _see Gazette of India, Extraordinary, Part II, sec. 3(ii)._ 4. Subs. by Act 10 of 2023, s. 3, for clause (a) (w.e.f. 1-4-2024). 4 ----- (aa) “benefit claimers” means the conservers of biological resources, their by-products, creators or holders of traditional knowledge associated thereto (excluding codified traditional knowledge only for Indians) and information relating to the use of such biological resources, innovations and practices associated with such use and application;] (b) “biological diversity” [1][or “biodiversity”] means the variability among living organisms from all sources and the ecological complexes of which they are part and includes diversity within species or between species and of eco-systems; 2[(c) “biological resources” include plants, animals, micro-organisms or parts of their genetic material and derivatives (excluding value added products), with actual or potential use or value for humanity, but does not include human genetic material;] (d) “bio-survey and bio-utilisation” means survey or collection of species, sub-species, genes, components and extracts of biological resource for any purpose and includes characterisation, inventorisation and bioassay; (e) “Chairperson” means the Chairperson of the National Biodiversity Authority or, as the case may be, of the State Biodiversity Board; 1[(ea) “codified traditional knowledge” means the knowledge derived from authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 (23 of 1940);] (f) “commercial utilisation” means end uses of biological resources for commercial utilisation such as drugs, industrial enzymes, food flavours, fragrance, cosmetics, emulsifiers, oleoresins, colours, extracts and genes used for improving crops and livestock through genetic intervention, but does not include conventional breeding or traditional practices in use in any agriculture, horticulture, poultry, dairy farming, animal husbandry or bee keeping; 1[(fa) “derivative” means a naturally occurring biochemical compound or metabolism of biological resources, even if it does not contain functional units of heredity;] (g) “fair and equitable benefit sharing” means sharing of benefits as determined by the National Biodiversity Authority under section 21; 1[(ga) “folk variety” means a cultivated variety of plant that was developed, grown and exchanged informally among farmers; (gb) “India” means the territory of India as referred to in Article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as refferred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976, and the air space above its territory (80 of 1976); (gc) “landrace” means primitive cultivar that was grown by ancient farmers and their successors;] (h) “local bodies” means Panchayats and Municipalities, by whatever name called, within the meaning of clause (1) of article 243B and clause (1) of article 243Q of the Constitution and in the absence of any Panchayats or Municipalities, institutions of self-government constituted under any other provision of the Constitution or any Central Act or State Act; (i) “member” means a member of the National Biodiversity Authority or a State Biodiversity Board and includes the Chairperson; 1[(ia) “Member-Secretary” means the full time Secretary of the National Biodiversity Authority, or of the State Biodiversity Board, as the case may be;] (j) “National Biodiversity Authority” means the National Biodiversity Authority established under section 8; (k) “prescribed” means prescribed by rules made under this Act; 1. Ins. by Act 10 of 2023, s. 3, (w.e.f. 1-4-2024). 2. Subs. by s. 3, ibid., for clause (c) (w.e.f. 1-4-2024). 5 ----- (l) “regulations” means regulations made under this Act; (m) “research” means study or systematic investigation of any biological resource or technological application, that uses biological systems, living organisms or derivatives thereof to make or modify products or processes for any use; (n) “State Biodiversity Board” means the State Biodiversity Board established under section 22; (o) “sustainable use” means the use of components of biological diversity in such manner and at such rate that does not lead to the long-term decline of the biological diversity thereby maintaining its potential to meet the needs and aspirations of present and future generations; (p) “value added products” means products which may contain portions or extracts of plants and animals in unrecognizable and physically inseparable form. CHAPTER II REGULATION OF ACCESS TO BIOLOGICAL [1][RESOURCES] **3. Certain persons not to undertake Biodiversity related activities without approval of National** **Biodiversity Authority.—(1) No person referred to in sub-section (2) shall, without previous approval of** the National Biodiversity Authority, obtain any biological resource occurring in India or knowledge associated thereto for research or for commercial utilisation or for bio-survey and bio-utilisation. (2) The persons who shall be required to take the approval of the National Biodiversity Authority under sub-section (1) are the following, namely:— (a) a person who is not a citizen of India; (b) a citizen of India, who is a non-resident as defined in clause (30) of section 2 of the Income-tax Act, 1961 (43 of 1961); (c) a body corporate, association or organisation— (i) not incorporated or registered in India; or 2[(ii) incorporated or registered in India under any law for the time being in force, which is controlled by a foreigner within the meaning of clause (27) of section 2 of the Companies Act, 2013 (18 of 2013).] 3[4. Results of research not to be transferred to certain persons without approval of National **Biodiversity Authority.—** No person or entity shall share or transfer any result of the research on any biological resource occurring in, or obtained or accessed from, India or traditional knowledge associated thereto, for monetary consideration or otherwise, to a person or body corporate referred to in sub-section (2) of section 3, without the prior written approval of the National Biodiversity Authority, except the codified traditional knowledge which is only for Indians: Provided that the provisions of this section shall not apply if publication of research papers or dissemination of knowledge in any seminar or workshop involving financial benefit is as per the guidelines issued by the Central Government: Provided further that where the results of research are used for further research, then, the registration with the National Biodiversity Authority shall be necessary: Provided also that if the results of research are used for commercial utilisation or for obtaining any intellectual property rights, within or outside India, prior approval of the National Biodiversity Authority shall be required to be taken in accordance with the provisions of this Act.] **5.** [4][Certain provisions] not to apply to certain collaborative research projects.—[5][(1) The provisions of section 3 shall not apply to collaborative research projects involving transfer or exchange of 1. Subs. by Act 10 of 2023, s. 4, for “DIVERSITY” (w.e.f. 1-4-2024). 2. Subs. by s. 5, ibid., for sub-clause (ii) (w.e.f. 1-4-2024). 3. Subs. by s. 6, ibid., for section 4 (w.e.f. 1-4-2024). 4. Subs. by s. 7, ibid., for “Sections 3 and 4” (w.e.f. 1-4-2024). 5. Subs. by s. 7, ibid., for sub-section (1) (w.e.f. 1-4-2024). 6 ----- biological resource or traditional knowledge associated thereto between institutions, including Government sponsored institutions of India, and such institutions in other countries, if such collaborative research projects satisfy the conditions specified in sub-section (3).] (2) All collaborative research projects, other than those referred to in sub-section (1) which are based on agreements concluded before the commencement of this Act and in force shall, to the extent the provisions of agreement are inconsistent with the provisions of this Act or any guidelines issued under clause (a) of sub-section (3), be void. (3) For the purposes of sub-section (1), collaborative research projects shall— (a) conform to the policy guidelines issued by the Central Government in this behalf; (b) be approved by the Central Government. **6. Application for intellectual property rights not to be made without approval of National** **Biodiversity Authority.—[1][(1) Any person or entity covered under sub-section (2) of section 3 applying** for an intellectual property right, by whatever name called, in or outside India, for any invention based on any research or information on a biological resource which is accessed from India, including those deposited in repositories outside India, or traditional knowledge associated thereto, shall obtain prior approval of the National Biodiversity Authority before grant of such intellectual property rights. (1A) Any person covered under section 7 applying for any intellectual property right, by whatever name called, in or outside India, for any invention based on any research or information on a biological resource which is accessed from India, including those deposited in repositories outside India, or traditional knowledge associated thereto, shall register with the National Biodiversity Authority before grant of such intellectual property rights. (1B) Any person covered under section 7 who has obtained intellectual property right, by whatever name called, in or outside India, for any invention based on any research or information on a biological resource which is accessed from India, including those deposited in repositories outside India, or traditional knowledge associated thereto, shall obtain prior approval of the National Biodiversity Authority at the time of commercialisation.] (2) The National Biodiversity Authority may, while granting the approval under this section, impose benefit sharing fee or royalty or both or impose conditions including the sharing of financial benefits arising out of the commercial utilisation of such rights. (3) The provisions of this section shall not apply to any person making an application for any right under any law relating to protection of plant varieties [2]***. (4) Where any right is granted under law referred to in sub-section (3), the concerned authority granting such right shall endorse a copy of such document granting the right to the National Biodiversity Authority. 3[7. Prior intimation to State Biodiversity Board for accessing biological resource for certain **purposes.—** (1) No person, other than the person covered under sub-section (2) of section 3, shall access any biological resource and its associated knowledge for commercial utilisation, without giving prior intimation to the concerned State Biodiversity Board, but such access shall be subject to the provisions of clause (b) of section 23 and sub-section (2) of section 24: Provided that the provisions of this section shall not apply to the codified traditional knowledge, cultivated medicinal plants and its products, local people and communities of the area, including growers and cultivators of biodiversity and to vaids, hakims and registered AYUSH practitioners only who have been practicing indigenous medicines, including Indian systems of medicine as profession for sustenance and livelihood. 1. Subs. by Act 10 of 2023, s. 8, for sub-section (1) (w.e.f. 1-4-2024). 2. The words "enacted by the Parliament" omitted by s. 8, ibid., (w.e.f. 1-4-2024). 3. Subs. by s. 9, ibid., for section 7 (w.e.f. 1-4-2024). 7 ----- (2) In the case of cultivated medicinal plants, the exemption under sub-section (1) shall be available only if a certificate of origin is obtained from the Biodiversity Management Committee in such manner as may be prescribed. (3) The Biodiversity Management Committee shall, on the basis of entries made in such books, maintained in such manner, issue the certificate of origin under subsection (2) in such manner as may be prescribed.] CHAPTER III NATIONAL BIODIVERSITY AUTHORITY **8. Establishment of National Biodiversity Authority.—(1) With effect from such date as the** Central Government may, by notification in the Official Gazette, appoint, there shall be established by the Central Government for the purposes of this Act, a body to be called the National Biodiversity Authority. (2) The National Biodiversity Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by the said name sue and be sued. 1[(3) The head office of the National Biodiversity Authority shall be at Chennai and the National Biodiversity Authority may, with the previous approval of the Central Government, establish offices at other places in India.] (4) The National Biodiversity Authority shall consist of the following members, namely:— 2[(a) a Chairperson, who shall be an eminent person having adequate knowledge, expertise and experience in the conservation and sustainable use of biological diversity and in matters relating to fair and equitable sharing of benefits, to be appointed by the Central Government; (b) sixteen ex officio members to be appointed by the Central Government, representing the Ministries dealing with— (i) Agricultural Research and Education; (ii) Agriculture and Farmers Welfare; (iii) Ayurveda, Unani, Siddha, Sowa Rigpa, Yoga and Naturopathy and Homoeopathy; (iv) Biotechnology; (v) Environment and Climate Change; (vi) Forests and Wildlife; (vii) Indian Council of Forestry Research and Education; (viii) Earth Sciences; (ix) Panchayati Raj; (x) Science and Technology; (xi) Scientific and Industrial Research; (xii) Tribal Affairs; (c) four representatives from State Biodiversity Boards on rotational basis;] (d) five non-official members to be appointed from amongst [3][experts including legal experts] and scientists having special knowledge of, or experience in, matters relating to conservation of biological diversity, sustainable use of biological resources and [4][fair and equitable] sharing of benefits arising out of the use of biological resources, representatives of industry, conservers, creators and knowledge-holders of biological resources. 1. Subs. by Act 10 of 2023, s. 10, for sub-section (3) (w.e.f. 1-4-2024). 2. Subs. by s. 10, ibid., for clauses (a), (b) and (c) (w.e.f. 1-4-2024). 3. Subs. by s. 10, ibid., for “specialists” (w.e.f. 1-4-2024). 4. Subs. by s. 10, ibid., for “equitable” (w.e.f. 1-4-2024). 8 ----- 1[(e) a Member-Secretary, who shall have experience in matters relating to biodiversity conservation, to be appointed by the Central Government.] **9. Conditions of service of [2][Chairperson, members and Member-Secretary.]—The term of office** and conditions of service of the Chairperson and the other members other than ex officio members of the National Biodiversity Authority [3][and of Member-Secretary] shall be such as may be prescribed by the Central Government. **10. Chairperson to be Chief Executive of National Biodiversity Authority.—The Chairperson** shall be the Chief Executive of the National Biodiversity Authority and shall exercise such powers and perform such duties, as may be prescribed. 4[10A. Member Secretary.— (1) The Member-Secretary shall be the chief coordinating officer and the convener of the National Biodiversity Authority and shall assist that Authority in the discharge of its functions under this Act. (2) The Member-Secretary shall perform such other functions as may be prescribed.] **11. Removal of members.—The Central Government may remove from the National Biodiversity** Authority any member who, in its opinion, has— (a) been adjudged as an insolvent; or (b) been convicted of an offence which involves moral turpitude; or (c) become physically or mentally incapable of acting as a member; or (d) so abused his position as to render his continuance in office detrimental to the public interest; or (e) acquired such financial or other interest as is likely to affect prejudicially his functions as a member. **12. Meetings of National Biodiversity Authority.—(1) The National Biodiversity Authority shall** meet at such time and place and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings) as may be prescribed. (2) The Chairperson of the National Biodiversity Authority shall preside at the meetings of the National Biodiversity Authority. (3) If for any reason the Chairperson is unable to attend any meeting of the National Biodiversity Authority, any member of the National Biodiversity Authority chosen by the members present at the meeting shall preside at the meeting. (4) All questions which come before any meeting of the National Biodiversity Authority shall be decided by a majority of votes of the members present and voting and in the event of equality of votes, the Chairperson or, in his absence, the person presiding, shall have and exercise a second or casting vote. (5) Every member who is in any way, whether directly, indirectly or personally, concerned or interested in a matter to be decided at the meeting shall disclose the nature of his concern or interest and after such disclosure, the member concerned or interested shall not attend that meeting. (6) No act or proceeding of the National Biodiversity Authority shall be invalidated merely by reason of— (a) any vacancy in, or any defect in the constitution of, the National Biodiversity Authority; or (b) any defect in the appointment of a person acting as a member; or (c) any irregularity in the procedure of the National Biodiversity Authority not affecting the merits of the case. 1. Ins. by Act 10 of 2023, s. 10 (w.e.f. 1-4-2024). 2. Subs. by s. 11, ibid., for “Chairperson and members” (w.e.f. 1-4-2024). 3. Ins. by s. 11, ibid. (w.e.f. 1-4-2024). 4. Ins. by s. 12, ibid. (w.e.f. 1-4-2024). 9 ----- **13. Committees of National Biodiversity Authority.—(1) The National Biodiversity Authority may** constitute a committee to deal with agro-biodiversity. _Explanation.—For the purposes of this sub-section, “agro-biodiversity” means biological diversity of_ agriculture related species and their wild relatives. 1[(2) The National Biodiversity Authority may also constitute such number of committees as it deems fit for the efficient discharge of its duties and performance of its functions under this Act.] (3) A committee constituted under this section shall co-opt such number of persons, who are not the members of the National Biodiversity Authority, as it may think fit and the persons so co-opted shall have the right to attend the meetings of the committee and take part in its proceedings but shall not have the right to vote. (4) The persons appointed as members of the committee under sub-section (2) shall be entitled to receive such allowances or fees for attending the meetings of the committee as may be fixed by the Central Government. **14. Officers and employees of National Biodiversity Authority.—(1) The National Biodiversity** Authority may appoint such officers and other employees as it considers necessary for the efficient discharge of its functions under this Act. (2) The terms and conditions of service of such officers and other employees of the National Biodiversity Authority shall be such as may be specified by regulations. **15. Authentication of orders and decisions of National Biodiversity Authority.—All orders and** decisions of the National Biodiversity Authority shall be authenticated by the signature of the Chairperson 2[or Member-Secretary] or any other member authorised by the National Biodiversity Authority in this behalf and all other instruments executed by the National Biodiversity Authority shall be authenticated by the [3][signature of Member-Secretary or an officer] of the National Biodiversity Authority authorised by it in this behalf. **16. Delegation of powers.—The National Biodiversity Authority may, by general or special order in** writing, delegate to any member [4][or Member-Secretary], officer of the National Biodiversity Authority or any other person subject to such conditions, if any, as may be specified in the order, such of the powers and functions under this Act (except the power to prefer an appeal under section 50 and the power to make regulations under section 64) as it may deem necessary. 17. Expenses of National Biodiversity Authority to be defrayed out of the Consolidated Fund of **India.—The salaries and allowances payable to the members and the administrative expenses of the** National Biodiversity Authority including salaries, allowances and pension payable to, or in respect of, the officers and other employees of the National Biodiversity Authority shall be defrayed out of the Consolidated Fund of India. CHAPTER IV # FUNCTIONS AND POWERS OF THE NATIONAL BIODIVERSITY AUTHORITY **18. Functions and powers of National Biodiversity Authority—[5][(1) The National Biodiversity** Authority shall, with the approval of the Central Government, make regulations to provide for access to biological resources and traditional knowledge associated thereto, and for determination of fair and equitable sharing of benefits. (2) It shall be the duty of the National Biodiversity Authority to regulate any activity referred to in sections 3, 4 and 6 by granting or rejecting approvals.] (3) The National Biodiversity Authority may— 1. Ins. by Act 10 of 2023, s. 13 (w.e.f. 1-4-2024). 2. Ins. by s. 14, ibid. (w.e.f. 1-4-2024). 3. Subs. by s. 14, ibid., for “signature of an officer” (w.e.f. 1-4-2024). 4. Ins. by s. 15, ibid. (w.e.f. 1-4-2024). 5. Subs. by s. 16, ibid., for sub-sections (1) and (2) (w.e.f. 1-4-2024). 10 ----- (a) advise the Central Government on matters relating to the conservation of biodiversity, sustainable use of its components and [1][fair and equitable] sharing of benefits arising out of the utilisation of biological resources; (b) advise the State Governments in the selection of areas of biodiversity importance to be notified under sub-section (1) of section 37 as [2][biodiversity heritage sites] and measures for the management of such heritage sites; 3[(ba) advise the State Biodiversity Boards on any matter relating to the implementation of the Act;] (c) perform such other functions as may be necessary to carry out the provisions of this Act. 4[(4) The National Biodiversity Authority may, on behalf of the Central Government, take any measures necessary to oppose the grant of intellectual property rights in any country outside India on any biological resource which is found in or brought from India, including those deposited in repositories outside India, or traditional knowledge associated thereto accessed.] CHAPTER V # APPROVAL BY THE NATIONAL BIODIVERSITY AUTHORITY **19. Approval by National Biodiversity Authority for undertaking certain activities.—(1) Any** person referred to in sub-section (2) of section 3 who intends to obtain any biological resource occurring in India or knowledge associated thereto for research or for commercial utilisation or for bio-survey and bio-utilisation or transfer the results of any research relating to biological resources occurring in, or obtained from, India, shall make application in such form and payment of such fees as may be prescribed, to the National Biodiversity Authority. 5[(2) Any person referred to in sub-section (2) of section 3 who intends to apply for a patent or any other form of intellectual property rights, whether in India or outside India, referred to in sub-section (1) of section 6, may make an application to the National Biodiversity Authority in such form, on payment of such fee, and in such manner, as may be prescribed. (2A) Any person referred to in sub-section (1A) of section 6 shall register with the National Biodiversity Authority at the time of making application under sub-section (2), and persons referred to in sub-section (1B) of section 6 shall obtain prior approval from the National Biodiversity Authority at the time of commercialisation.] (3) On receipt of an application under sub-section (1) or sub-section (2), the National Biodiversity Authority may, after making such enquiries as it may deem fit and if necessary after consulting an expert committee constituted for this purpose, by order, grant approval subject to any regulations made in this behalf and subject to such terms and conditions as it may deem fit, including the imposition of charges by way of royalty or for reasons to be recorded in writing, reject the application: Provided that no such order for rejection shall be made without giving an opportunity of being heard to the person affected. 6[(3A) The National Biodiversity Authority shall, while granting approval under this section, determine the benefit sharing in such manner as may be specified by regulations made in this behalf: Provided that if the National Biodiversity Authority is of the opinion that such an activity is detrimental or contrary to the objectives of conservation and sustainable use of biodiversity or fair and equitable sharing of benefits arising out of such activity, it may, by order, for reasons to be recorded in writing, prohibit or restrict any such activity: 1. Subs. by Act 10 of 2023, s. 16, for “equitable” (w.e.f. 1-4-2024). 2. Subs. by s. 16, ibid., for “heritage sites” (w.e.f. 1-4-2024). 3. Ins. by s. 16, ibid. (w.e.f. 1-4-2024). 4. Subs. by s. 16, ibid., for sub-section (4) (w.e.f. 1-4-2024). 5. Subs. by s. 17, ibid., for sub-section (2) (w.e.f. 1-4-2024). 6. Ins. by s. 17, ibid. (w.e.f. 1-4-2024). 11 ----- Provided further that no such order for rejection shall be made without giving an opportunity of being heard to the person concerned.] 1[(4) The National Biodiversity Authority shall place in public domain details of every approval granted or rejected under this section.] **20. Transfer of [2][results of research].—[3][(1) Any person or entity who intends to transfer the results** of any research on biological resources, which are found in or brought from India, including those deposited in repositories outside India or traditional knowledge associated thereto, to persons referred to under sub-section (2) of section 3 for monetary consideration or otherwise, he shall make an application to the National Biodiversity Authority in such form, and on payment of such fee, as may be prescribed.] (2) Any person who intends to transfer [4][the results of research] referred to in sub-section (1) shall make an application in such form and in such manner as may be prescribed to the National Biodiversity Authority. 5[(3) On receipt of an application under sub-section (2), the National Biodiversity Authority may, after making such enquiries, as it deems fit, by order, grant approval, subject to such terms and conditions, as it may deem fit, including benefit sharing or otherwise, as per the guidelines or for reasons to be recorded in writing, or reject the application: Provided that no such order for rejection shall be made without giving an opportunity of being heard to the person concerned. (4) The National Biodiversity Authority shall place in public domain the details of every approval granted or rejected under this section.] **21. Determination of [6][fair and equitable] benefit sharing by National Biodiversity Authority.—** 7[(1) The National Biodiversity Authority shall, while determining benefit sharing for the approval granted under this Act, ensure that the terms and conditions subject to which the approval is granted secures fair and equitable sharing of benefits arising out of the use of accessed biological resources, their derivatives, innovations and practices associated with their use and applications and knowledge relating thereto in accordance with mutually agreed terms and conditions between the person applying for such approval, and the Biodiversity Management Committee represented by the National Biodiversity Authority.] (2) The National Biodiversity Authority shall, subject to any regulations made in this behalf, determine the benefit sharing which shall be given effect in all or any of the following manner, namely:— (a) grant of joint ownership of intellectual property rights to the National Biodiversity Authority, or where benefit claimers are identified, to such benefit claimers; (b) transfer of technology; (c) location of production, research and development units in such areas which will facilitate better living standards to the benefit claimers; (d) association of Indian scientists, benefit claimers and the local people with research and development in biological resources and bio-survey and bio-utilisation; (e) setting up of venture capital fund for aiding the cause of benefit claimers; (f) payment of monetary compensation and other non-monetary benefits to the benefit claimers as the National Biodiversity Authority may deem fit. 1. Subs. by Act 10 of 2023, s. 17, for sub-section (4) (w.e.f. 1-4-2024). 2. Subs. by s. 18, ibid., for “biological resource or knowledge” (w.e.f. 1-4-2024). 3. Subs. by s. 18, ibid., for sub-section (1) (w.e.f. 1-4-2024). 4. Subs. by s. 18, ibid., for “any biological resource or knowledge associated thereto” (w.e.f. 1-4-2024). 5. Subs. by s. 18, ibid., for sub-sections (3) and (4) (w.e.f. 1-4-2024). 6. Subs. by s. 19, ibid., for “equitable” (w.e.f. 1-4-2024). 7. Subs. by s. 19, ibid., for sub-section (1) (w.e.f. 1-4-2024). 12 ----- (3) Where any amount of money is ordered by way of benefit sharing, the National Biodiversity Authority may direct the amount to be deposited in the National Biodiversity Fund: 1[Provided that where biological resource or associated knowledge was a result of access from an individual or group of individuals or organisations, the National Biodiversity Authority may direct that the amount shall be paid directly to such benefit claimer or organisation in accordance with the terms of any agreement and in such manner as it deems fit.] (4) For the purposes of this section, the National Biodiversity Authority shall, in consultation with the Central Government, by regulations, frame guidelines. CHAPTER VI STATE BIODIVERSITY BOARD **22. Establishment of State Biodiversity Board.—(1) With effect from such date as the State** Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established by that Government for the purposes of this Act, a Board for the State to be known as the______________ (name of the State) Biodiversity Board. (2) Notwithstanding anything contained in this section, no State Biodiversity Board shall be constituted for a Union territory and in relation to a Union territory, the National Biodiversity Authority shall exercise the powers and perform the functions of a State Biodiversity Board for that Union territory: Provided that in relation to any Union territory, the National Biodiversity Authority may delegate all or any of its powers or functions under this sub-section to such person or group of persons [2][or body] as the Central Government may specify. (3) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by the said name sue and be sued. (4) The Board shall consist of the following members, namely:— 3[(a) a Chairperson, who shall be an eminent person having adequate knowledge, expertise and experience in the conservation and sustainable use of biological diversity and in matters relating to fair and equitable sharing of benefits, to be appointed by the State Government; (b) not more than seven ex officio members to be appointed by the State Government to represent the concerned departments of the State Government, including departments dealing Panchayati Raj and tribal affiairs; (c) not more than five non-official members to be appointed from amongst experts, including legal experts, scientists having special knowledge, expertise and work experience in matters relating to conservation of biological diversity, sustainable use of biological resources and fair and equitable sharing of benefits arising out of the use of biological resources.] (5) The head office of the State Biodiversity Board shall be at such place as the State Government may, by notification in the Official Gazette, specify. **23. Functions of State Biodiversity Board.—The functions of the State Biodiversity Board shall be** to— 4[(a) advise the State Government on matters relating to the conservation of biodiversity, sustainable use of its components and fair and equitable sharing of benefits arising out of the utilisation of biological resources or traditional knowledge associated thereto, in conformity with the regulations or guidelines if any, issued by the Central Government or the National Biodiversity Authority; (b) regulate any activity referred to in section 7 by granting or rejecting approvals; 1. Subs. by Act 10 of 2023, s. 19, for the proviso (w.e.f. 1-4-2024). 2. Ins. by s. 20, ibid. (w.e.f. 1-4-2024). 3. Subs. by s. 20, ibid., for clauses (a), (b) and (c) (w.e.f. 1-4-2024). 4. Subs. by s. 21, ibid., for clauses (a) and (b) (w.e.f. 1-4-2024). 13 ----- (ba) determine the fair and equitable sharing of benefits as provided under the regulations made in this behalf by the National Biodiversity Authority while granting approvals;] (c) perform such other functions as may be necessary to carry out the provisions of this Act or as may be prescribed by the State Government. **24. Power of State Biodiversity Board to restrict certain activities violating the objectives of** **conservation, etc.—[1][(1) Any person other than the person referred to in sub-section (2) of section 3,** intending to undertake any activity covered under section 7, shall give prior intimation to the State Biodiversity Board, in such form as may be prescribed by the State Government.] 2[(2) If the State Biodiversity Board is of the opinion that such activity is detrimental or contrary to the objectives of conservation and sustainable use of biodiversity of fair and equitable sharing of benefits arising out of such activity, it may by order, restrict or reject such activity: Provided that no such order or rejection shall be made without giving an opportunity of being heard to the person concerned. (3) The State Biodiversity Board shall place in public domain the details of every approval granted or rejected under this section.] **25. Provisions of sections 9 to 17 to apply with modifications to State Biodiversity Board.—The** provisions of sections 9 to 17 shall apply to a State Biodiversity Board and shall have effect subject to the following modifications, namely:— (a) references to the Central Government shall be construed as references to the State Government; (b) references to the National Biodiversity Authority shall be construed as references to the State Biodiversity Board; (c) reference to the Consolidated Fund of India shall be construed as reference to the Consolidated Fund of the State. CHAPER VII FINANACE, ACCOUNTS AND AUDIT OF NATIONAL BIODIVERSITY AUTHORITY **26. Grants or loans by the Central Government.—The Central Government may, after due** appropriation made by Parliament by law in this behalf, pay to the National Biodiversity Authority by way of grants or loans such sums of money as the Central Government may think fit for being utilised for the purposes of this Act. **27. Constitution of National Biodiversity Fund—(1) There shall be constituted a Fund to be called** the National Biodiversity Fund and there shall be credited thereto— (a) any grants and loans made to the National Biodiversity Authority under section 26; 3[(b) all sums including charges and benefit sharing amount received by the National Biodiversity Authority;] (c) all sums received by the National Biodiversity Authority from such other sources as may be decided upon by the Central Government. (2) The Fund shall be [4][utilised] for— (a) channeling benefits to the benefit claimers; 5[(b) conservation, promotion and sustainable use of biological resources; 1. Subs. by Act 10 of 2023, s. 22, for sub-section (1) (w.e.f. 1-4-2024). 2. Subs. by s. 22, ibid., for sub-sections (2) and (3) (w.e.f. 1-4-2024). 3. Subs. by s. 23, ibid., for clause (b) (w.e.f. 1-4-2024). 4. Subs. by s. 23, ibid., for “applied” (w.e.f. 1-4-2024). 5. Subs. by s. 23, ibid., for clauses (b) and (c) (w.e.f. 1-4-2024). 14 ----- (c) socio-economic development of areas from where such biological resources or traditional knowledge associated thereto have been accessed in consultation with the Biodiversity Management Committee: Provided that when it is not possible to identify the area from where the biological resources or traditional knowledge associated thereto have been accessed, the fund shall be utilised for socio-economic development of the area where such biological resources occur; (d) activities to meet the purposes of the Act.] **28. Annual report of National Biodiversity Authority.—The National Biodiversity Authority shall** prepare, in such form and at such time each financial year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year and furnish, to the Central Government, before such date as may be prescribed, its audited copy of accounts together with auditors’ report thereon. **29. Budget, accounts and audit.—(1) The National Biodiversity Authority shall prepare a budget,** maintain proper accounts and other relevant records (including the accounts and other relevant records of the National Biodiversity Fund) and prepare an annual statement of account in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the National Biodiversity Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the National Biodiversity Authority to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the National Biodiversity Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the National Biodiversity Authority. (4) The accounts of the National Biodiversity Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report there on shall be forwarded annually to the Central Government. **30. Annual report to be laid before parliament.—The Central Government shall cause the annual** report and auditor's report to be laid, as soon as may be after they are received, before each House of Parliament. CHAPTER VIII FINANCE, ACCOUNTS AND AUDIT OF STATE BIODIVERSITY BOARD **31. Grants of money by State Government to State Biodiversity Board.—The State Government** may, after due appropriation made by the State Legislature by law in this behalf, pay to the State Biodiversity Board by way of grants or loans such sums of money as the State Government may think fit for being utilised for the purposes of this Act. **32. Constitution of State Biodiversity Fund.—(1) There shall be constituted a Fund to be called the** State Biodiversity Fund and there shall be credited thereto— (a) any grants and loans made to the State Biodiversity Board under section 31; (b) any grants or loans made by the National Biodiversity Authority; 1[(c) all sums including charges and benefit sharing amount received by the State Biodiversity Board and from such other sources as may be decided by the State Government;] (2) The State Biodiversity Fund shall be [2][utilised] for— (a) the management and conservation of heritage sites; 1. Subs. by Act 10 of 2023, s. 24, for clause (c) (w.e.f. 1-4-2024). 2. Subs. by s. 24, ibid., for “applied” (w.e.f. 1-4-2024). 15 ----- 1[(aa) channelling benefits to the benefit claimers;] (b) compensating or rehabilitating any section of the people economically affected by notification under sub-section (1) of section 37; 2[(c) conservation, promotion and sustainable use of biological resources;] 3[(d) socio-economic development of areas from where such biological resources or traditional knowledge associated thereto have been accessed in consultation with the Biodiversity Management Committee or local body concerned: Provided that when it is not possible to identify the area from where the biological resources or associated knowledge have been accessed, the fund shall be utilised for socio-economic development of the area where such biological resources occur;] 4[(e) making grants or loans to the Biodiversity Management Committees; (f) the activities to meet the purposes of the Act.] **33. Annual report of State Biodiversity Board.—The State Biodiversity Board shall prepare, in** such form and at such time in each financial year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the State Government. **34. Audit of accounts of State Biodiversity Board.—The accounts of the State Biodiversity Board** shall be maintained and audited in such manner as may, in consultation with the Accountant-General of the State, be prescribed and the State Biodiversity Board shall furnish, to the State Government, before such date as may be prescribed, its audited copy of accounts together with auditor’s report thereon. **35. Annual report of State Biodiversity Board to be laid before State Legislature.—The State** Government shall cause the annual report and auditor's report to be laid, as soon as may be after they are received, before the House of State Legislature. CHAPTER IX DUTIES OF THE CENTRAL AND THE STATE GOVERNMENTS **36. [5][Central Government to develop national strategies and plans for conservation, promotion** **and sustainable use of biological diversity.]—(1) The Central Government shall** [6][in consultation with the State Government and Union territories] develop national strategies, plans, programmes for the conservation and promotion and sustainable use of biological diversity including measures for identification and monitoring of areas rich in biological resources, promotion of _in situ, and_ _ex situ,_ 7[conservation of biological resources, including cultivars, folk varieties and landraces, incentives] for research, training and public education to increase awareness with respect to biodiversity. (2) Where the Central Government has reason to believe that any area rich in biological diversity, biological resources and their habitats is being threatened by overuse, abuse or neglect, it shall issue directives to the concerned State Government to take immediate ameliorative measures, offering such State Government any technical and other assistance that is possible to be provided or needed. (3) The Central Government shall, as far as practicable wherever it deems appropriate, integrate the conservation, promotion and sustainable use of biological diversity into relevant [8][sectoral policies or cross-sectoral plans and programmes]. (4) The Central Government shall undertake measures,— 1. Ins. by Act 10 of 2023, s. 24 (w.e.f. 1-4-2024). 2. Subs. by s. 24, ibid., for clause (c) (w.e.f. 1-4-2024). 3. Subs. by s. 24, ibid., for clause (d) (w.e.f. 1-4-2024). 4. Subs. by s. 24, ibid., for clause (e) (w.e.f. 1-4-2024). 5. Subs. by s. 25, ibid., for the marginal heading (w.e.f. 1-4-2024). 6. Ins. by s. 25, ibid. (w.e.f. 1-4-2024). 7. Subs. by s. 25, ibid., for “conservation of biological resources, incentives” (w.e.f. 1-4-2024). 8. Subs. by s. 25, ibid., for “sectoral or cross-sectoral plans, programmes and policies” (w.e.f. 1-4-2024). 16 ----- (i) wherever necessary, for assessment of environmental impact of that project which is likely to have adverse effect on biological diversity, with a view to avoid or minimise such effects and where appropriate provide for public participation in such assessment; (ii) to regulate, manage or control the risks associated with the use and release of living modified organisms resulting from biotechnology likely to have adverse impact on the conservation and sustainable use of biological diversity and human health. (5) The Central Government shall endeavour to respect and protect the knowledge of local people relating to biological diversity, as recommended by the National Biodiversity Authority through such measures, which may include registration of such knowledge at the local, State or national levels, and other measures for protection, including sui generis system. 1[(6) The Central Government shall involve the National Biodiversity Authority or State Biodiversity Boards to undertake measures for conservation and sustainable use of biological diversity or traditional knowledge associated thereto.] _Explanation.—For the purposes of this section,—_ (a) “ex situ conservation” means the conservation of components of biological diversity outside their natural habitats; (b) “in situ conservation” means the conservation of ecosystems and natural habitats and the maintenance and recovery of viable populations of species in their natural surroundings and, in the case of domesticated or cultivated species, in the surroundings where they have developed their distinctive properties. 2[36A. Measures to be taken by National Biodiversity Authority.—The Central Government may authorise National Biodiversity Authority or any other organisation to take any measure necessary to monitor and regulate within the territory of India, the access and utilisation of biological resources obtained from a foreign country in order to meet the international obligations to which India is a signatory. **36B. State Government to develop strategies and plans for conservation and sustainable use of** **biological diversity.—(1) The State Government shall develop strategies, plans, programmes for the** conservation and promotion and sustainable use of biological diversity, including measures for indentification and monitoring of areas rich in biological resources, promotion of in situ, and ex situ, conservation of biological resources, including cultivars, folk varieties and landraces, incentives for research, training and public education to increase awareness with respect to biodiversity, in conformity with the national strategies, plans and programmes. (2) The State Government shall, as far as practicable, wherever it deems appropriate, integrate the conservation, promotion and sustainable use of biological diversity into relevant sectoral policies or crosssectoral plans and programmes.] **37. Biodiversity heritage sites.—[3][(1) Without prejudice to any other law for the time being in force,** based on the recommendations of the State Biodiversity Board, the State Government may, from time to time, notify in the Official Gazette, areas of biodiversity importance as biodiversity heritage sites under this Act: Provided that the State Biodiversity Board shall consult the local body and the Biodiversity Management Committee concerned before making such recommendations.] (2) The State Government, in consultation with the Central Government, may frame rules for the management and conservation of all the [4][biodiversity heritage sites]. (3) The State Government shall frame schemes for compensating or rehabilitating any person or section of people economically affected by such notification. 1. Ins. by Act 10 of 2023, s. 25 (w.e.f. 1-4-2024). 2. Ins. by s. 26, ibid. (w.e.f. 1-4-2024). 3. Subs. by s. 27, ibid., for sub-section (1) (w.e.f. 1-4-2024). 4. Subs. by s. 27, ibid., for “heritage sites” (w.e.f. 1-4-2024). 17 ----- **38. Power of Central Government to notify threatened species.—Without prejudice to the** provisions of any other law for the time being in force, the Central Government, in consultation with the concerned State Government, may from time to time notify any species which is on the verge of extinction or likely to become extinct in the near future as a threatened species and prohibit or regulate collection thereof for any purpose and take appropriate steps to rehabilitate and preserve those species. 1[Provided that the Central Government may delegate such power to the State Government: Provided further that where such power is delegated to the State Government, it shall consult the National Biodiversity Authority before issuing any such notification.] **39. Power of Central Government to designate repositories.—(1) The Central Government may,** in consultation with the National Biodiversity Authority, designate institutions as repositories under this Act for different categories of biological resources. (2) The repositories shall keep in safe custody the biological material including voucher specimens deposited with them. (3) Any new tax on discovered by any person shall be notified to the repositories or any institution designated for this purpose and he shall deposit the voucher specimens with such repository or institution. **2[40. Provisions of this Act not to apply in certain cases. —Notwithstanding anything contained in** this Act, the Central Government may, in consultation with the National Biodiversity Authority, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall not apply to biological resources when normally traded as commodities or to the items derived from them, including agricultural wastes, as notified and cultivated medicinal plants and their products for entities covered under section 7, registered as per the regulations made or as may prescribed: Provided that no exemption shall be made for the activities referred to in sub-sections (1) and (2) of section 6.] CHAPTER X BIODIVERSITY MANAGEMENT COMMITTEES **41. Constitution of Biodiversity Management Committee.—[3][(1) Every local body at the Gram** Panchayat level in the rural areas and at the Nagar Panchayat or Municipal Committee at Municipal Corporation level in the urban areas shall constitute a Biodiversity Management Committee (by whatever name called) within its area for the purpose of promoting conservation, sustainable use and documentation of biological diversity including preservation of habitats, conservation of landraces, folk varieties, farmers' varieties, and cultivars, domesticated stocks and breeds of animals, living things in water bodies and microorganisms and chronicling of knowledge relating to biological diversity: Provided that the State Government may constitute Biodiversity Management Committees at the intermediate or district Panchayat level for achieving the objectives of the Act. (1A) The functions of Biodiversity Management Committee so constituted shall include conservation, sustainable use and documentation of biological diversity, including conservation of habitats, landraces, folk varieties, cultivars, domesticated breeds of animals, and microorganisms, and chronicling of traditional knowledge associated thereto relating to biological diversity (1B) The composition of the Biodiversity Management Committee shall be such as may be prescribed by the State Government: Provided that the number of members of the said Committee shall not be less than seven and not exceeding eleven.] (2) The National Biodiversity Authority and the State Biodiversity Boards shall consult the Biodiversity Management Committees while taking any decision relating to the use of biological 1. Ins. by Act 10 of 2023, s. 28 (w.e.f. 1-4-2024). 2. Subs. by s. 29, ibid., for section 40 (w.e.f. 1-4-2024). 3. Subs. by s. 30, ibid., for sub-section (1) (w.e.f. 1-4-2024). 18 ----- resources [1][or traditional knowledge associated thereto] occurring within the territorial jurisdiction of the Biodiversity Management Committee. 2[Explanation.—For the purposes of this section— (a) “cultivar” means a veriety of plant that has originated and persisted under cultivation or was specifically bred for the purpose of cultivation; (b) “folk variety” means a cultivated variety of plant that was developed, grown and exchanged informally among farmers; (c) “landrace” means primitive cultivar that was grown by ancient farmers and their successors; (d) “farmers' variety” means a veriety which— (i) has been traditionally cultivated and evolved by the farmers in their field; or (ii) is a wild relative or landrace of a veriety about which the farmers possess the common knowledge.] (3) The Biodiversity Management Committees may levy charges by way of collection fees from any person for accessing or collecting any biological resource for commercial purposes from areas falling within its territorial jurisdiction. CHAPTER XI LOCAL BIODIVERSITY FUND **42. Grants to Local Biodiversity Fund.—The State Government may, after due appropriation made** by State Legislature by law in this behalf, pay to the Local Biodiversity Funds by way of grants or loans such sums of money as the State Government may think fit for being utilised for the purposes of this Act. **43. Constitution of Local Biodiversity Fund.—(1) There shall be constituted a Fund to be called the** Local Biodiversity Fund at every area notified by the State Government where any institution of self-government is functioning and there shall be credited thereto— (a) any grants and loans made under section 42; (b) any grants or loans made by the National Biodiversity Authority; (c) any grants or loans made by the State Biodiversity Boards; (d) fees referred to in sub-section (3) of section 41 received by the Biodiversity Management Committees; 3[(e) benefit sharing amount and all other sums received by the Local Biodiversity Fund from such other sources as may be decided by the State Government.] **4[44. Application of Local Biodiversity Fund.—** (1) The Local Biodiversity Fund shall be utilised in accordance with the regulations and the guidelines made in this behalf, for— (a) the conservation and promotion of biodiversity including restoration of areas falling within the jurisdiction of concerned local body; (b) the socio-economic development of the community without compromising the conservation concerns; and (c) the administrative expenses of the Biodiversity Management Committee. (2) The Fund shall be utilised in such manner as may be prescribed by the State Government.] 1. Subs. by Act 10 of 2023, s. 30, for “and knowledge associated with such resources” (w.e.f. 1-4-2024). 2. Ins. by s. 30, ibid. (w.e.f. 1-4-2024). 3. Subs. by s. 31, ibid., for clause (e) (w.e.f. 1-4-2024). 4. Subs. by s. 32, ibid., for section 44 (w.e.f. 1-4-2024). 19 ----- **1[45. Annual statement of Biodiversity Management Committees.— 45. The custodian of the** Local Biodiversity Fund shall prepare, in such form and during each financial year at such time as may be prescribed by the State Government, its annual statement giving a full account of its activities during the previous financial year, and submit the same to the local body concerned with a copy to the State Biodiversity Board.] **2[46. Audit of accounts of Biodiversity Management Committees.—** (1) The Biodiversity Management Committee shall maintain the accounts which shall be audited in such manner as may be prescribed by the State Government. (2) The Biodiversity Management Committee shall furnish to the local body concerned and to the State Biodiversity Board, before such date as may be prescribed by the State Government, its audited copy of accounts together with auditor's report thereon.] **47. Annual report, etc., of the Biodiversity Management Committee to be submitted to District** **Magistrate.—Every local body constituting a Biodiversity Management Committee under sub-section (1)** of section 41, shall cause, the annual report and audited copy of accounts together with auditor's report thereon referred to in sections 45 and 46, respectively and relating to such Committee to be submitted to the District Magistrate having jurisdiction over the area of the local body. CHAPTER XII MISCELLANEOUS **48. National Biodiversity Authority to be bound by the directions given by Central** **Government.—(1) Without prejudice to the foregoing provisions of this Act, the National Biodiversity** Authority shall, in the discharge of its functions and duties under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the National Biodiversity Authority shall, as far as practicable, be given opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government whether a question is one of policy or not shall be final. **49. Power of State Government to give directions.—(1) Without prejudice to the foregoing** provisions of this Act, the State Biodiversity Board shall, in the discharge of its functions and duties under this Act, be bound by such directions on questions of policy as the State Government may give in writing to it from time to time: Provided that the State Biodiversity Board shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the State Government whether a question is one of policy or not shall be final. **50. Settlement of disputes [3]***.—(1) If a dispute arises between the National Biodiversity Authority** and a State Biodiversity Board, the said Authority or the Board, as the case may be, may prefer an appeal to the Central Government within such time as may be prescribed. (2) Every appeal made under sub-section (1) shall be in such form as may be prescribed by the Central Government. (3) The procedure for disposing of an appeal shall be such as may be prescribed by the Central Government: Provided that before disposing of an appeal, the parties shall be given a reasonable opportunity of being heard. (4) If a dispute arises between the State Biodiversity Boards, the Central Government shall refer the same to the National Biodiversity Authority. 1. Subs. by Act 10 of 2023, s. 33, for section 45 (w.e.f. 1-4-2024). 2. Subs. by s. 34, ibid., for section 46 (w.e.f. 1-4-2024). 3. The words “between State Biodiversity Boards” omitted by s. 35, ibid., (w.e.f. 1-4-2024). 20 ----- (5) While adjudicating any dispute under sub-section (4), the National Biodiversity Authority shall be guided by the principles of natural justice and shall follow such procedure as may be prescribed by the Central Government. (6) The National Biodiversity Authority shall have, for the purposes of discharging its functions under this section, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) reviewing its decisions; (f) dismissing an application for default or deciding it ex parte; (g) setting aside any order of dismissal of any application for default or any order passed by it _ex parte;_ (h) any other matter which may be prescribed. (7) Every proceeding before the National Biodiversity Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860) and the National Biodiversity Authority shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXV1 of the Code of Criminal Procedure, 1973 (2 of 1974). **51. Members, officers, etc., of National Biodiversity Authority and State Biodiversity Board** **deemed to be public servants.—All members, officers and other employees of the National Biodiversity** Authority or the State Biodiversity Board shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **52. Appeal.—Any person, aggrieved by any determination of [1][fair and equitable sharing of benefits** or order or direction] of the National Biodiversity Authority or a State Biodiversity Board under this Act, may file an appeal to the High Court within thirty days from the date of communication to him, of the determination or order of the National Biodiversity Authority or the State Biodiversity Board, as the case may be: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. 2[Provided further that nothing contained in this section shall apply on and from the commencement of the National Green Tribunal Act, 2010 (19 of 2010): Provided also that any appeal pending before the High Court, before the commencement of the National Green Tribunal Act, 2010 (19 of 2010), shall continue to be heard and disposed of by the High Court as if the National Green Tribunal had not been established under section 3 of the National Green Tribunal Act, 2010.] 2[52A. Appeal to National Green Tribunal.—Any person aggrieved by any determination of benefit sharing or order of the National Biodiversity Authority or a State Biodiversity Board under this Act, on or after the commencement of the National Green Tribunal Act, 2010 (19 of 2010), may file an appeal to the National Green Tribunal establishment under section 3 of the National Green Tribunal Act, 2010, in accordance with the provisions of that Act.] **53. Execution of determination or order.—Every determination of** [3][fair and equitable sharing of benefits] or order made by the National Biodiversity Authority or a State Biodiversity Board under this Act or the order made by the High Court [4][or the National Green Tribunal] in any appeal against any 1. Subs. by Act 10 of 2023, s. 36, for “benefit sharing or order” (w.e.f. 1-4-2024). 2. Ins. by Act 19 of 2010, s. 36 and Schedule III (w. e. f. 18-10-2010). 3. Subs. by Act 10 of 2023, s. 37, for “benefit sharing” (w.e.f. 1-4-2024). 4. Ins. by s. 37, ibid., (w.e.f. 1-4-2024). 21 ----- determination or order of the National Biodiversity Authority or a State Biodiversity Board shall, on a certificate issued by any officer of the National Biodiversity Authority or a State Biodiversity Board or the Registrar of the High Court [1][or the Registrar of the National Green Tribunal], as the case may be, be deemed to be decree of the civil court and shall be executable in the same manner as a decree of that court. _Explanation.—For the purposes of this section and section 52, the expression “State Biodiversity_ Board” includes the person or group of persons [2][or body] to whom the powers or functions under sub-section (2) of section 22 have been delegated under the proviso to that sub-section and the certificate relating to such person or group of persons [2][or body] under this section shall be issued by such person or group of persons [2][or body], as the case may be. **54. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government or the State Government or any officer of the Central Government or State Government or any member, officer or employee of the National Biodiversity Authority or the State Biodiversity Board for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. **3[55. Penalties.— If any person or entity covered under sub-section (2) of section 3 or section 7** contravenes or attempts to contravene or abets the contravention of the provisions of section 3 or section 4 or section 6 or section 7, such person shall be liable to pay penalty which shall not be less than one lakh rupees, but which may extend to fifty lakh rupees, but where the damage caused exceeds the amount of penalty, such penalty shall be commensurate with the damage caused, and in case, the failure or contravention continues, an additional penalty may be imposed, which shall not exceed one crore rupees and such penalty shall be decided by the adjudicating officer appointed under section 55A. **55A. Adjudication of penalties. — (1) For the purposes of determining the penalties under section** 55, the Central Government may appoint an officer not below the rank of Joint Secretary to the Government of India or a Secretary to the State Government to be the adjudicating officer, to hold inquiry in the prescribed manner and to impose the penalty so determined: Provided that the Central Government may appoint as many adjudicating officers as may be required. (2) While holding an inquiry, the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document, which in the opinion of the adjudicating officer, may be useful for, or relevant to, the subject-matter of the inquiry and if, on such inquiry, he is satisfied that the person concerned has failed to comply with the provisions of section 3 or section 4 or section 6 or section 7, he may impose such penalty as he thinks fit in accordance with the provisions of section 55: Provided that no such penalty shall be imposed without giving the person concerned an opportunity of being heard in the matter. (3) Any person aggrieved by the order made by the adjudicating officer under sub-section (2) may prefer an appeal to the National Green Tribunal established under section 3 of the National Green Tribunal Act, 2010 (19 of 2010). (4) Every appeal under sub-section (3) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person. (5) The National Green Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such order as it thinks fit, confirming, modifying or setting aside the order appealed against. **55B. Power to enter, inspect, survey, etc.—Any authority or officer empowered by the Central** Government may, for the purposes of carrying out inspection, survey or any such activity, have all or any of the following powers, namely:— (a) the power to enter upon any land, vehicle, or premises and to inspect, investigate, survey and collect information and make a map of the same and seize the materials and records; 1. Ins. by Act 10 of 2023, s. 37, (w.e.f. 1-4-2024). 2. Ins. by s. 37, ibid., (w.e.f. 1-4-2024). 3. Subs. by s. 38, ibid., for section 55 (w.e.f. 1-4-2024). 22 ----- (b) the powers of a civil court to compel the attendance of anyone, including witnesses and production of documents and materials objects; (c) the power to issue a search-warrant; (d) the power to hold an inquiry and in the course of such inquiry, receive and record evidence; (e) such other power as may be prescribed.] **56. Penalty for contravention of directions or orders of Central Government, State** **Government, National Biodiversity Authority and State Biodiversity Boards.—If any person** contravenes any direction given or order made by the Central Government, the State Government, the National Biodiversity Authority or the State Biodiversity Board for which no punishment has been separately provided under this Act, he shall be punished with a fine which may extend to one lakh rupees and in case of a second or subsequent offence, with fine which may extend to two lakh rupees and in the case of continuous contravention with additional fine which may extend to two lakh rupees every day during which the default continues. **57. Offences by companies—(1) Where an offence or contravention under this Act has been** committed by a company, every person who at the time the offence or contravention was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence or contravention and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence or contravention was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence or contravention. (2) Notwithstanding anything contained in sub-section (1), where an offence or contravention under this Act has been committed by a company and it is proved that the offence or contravention has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence or contravention and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **58. [Offences to be cognizable and non-bailable.]—Omitted by the Biological Diversity** _(Amendment) Act, 2023 (10 of 2023), s. 39 (w.e.f. 1-4-2024)._ **59. Act to have effect in addition to other Acts.—The provisions of this Act shall be in addition to,** and not in derogation of, the provisions in any other law, for the time being in force, relating to forests or wildlife. 1[59A. Act not to apply to certain persons.—The provision of this Act shall not apply to any person who has been given any approval or granted any right under any law relating to protection of plant varieties enacted by Parliament to the extent that such approvals or rights given under that Act does not require similar approval under this Act.] **60. Power of Central Government to give directions to State Government.—The Central** Government may give directions to any State Government as to the carrying into execution in the State of any of the provisions of this Act or of any rule or regulation or order made thereunder. **61. Cognizance of offences.—No Court shall take cognizance of any offence under this Act except** on a [2][written complaint] made by— 1. Ins. by Act 10 of 2023, s. 40 (w.e.f. 1-4-2024). 2. Subs. by s. 41, ibid., for “complaint” (w.e.f. 1-4-2024). 23 ----- (a) the Central Government or any authority or officer authorised in this behalf by that Government; or (b) [1][any person or a benefit claimer] who has given notice of not less than thirty days in the prescribed manner, of such offence and of his intention to make a complaint, to the Central Government or the authority or officer authorised as aforesaid. **62. Power of Central Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 2[(a) the manner of obtaining the certificate of origin under sub-section (2) of section 7; (aa) the books on the basis of which the certificate of origin to be issued, the manner of maintaining such books and the manner of issuing such certificate under sub-section (3) of section 7; (ab) the terms and conditions of service of the Chairperson, Member-Secretary and other members under section 9;] (b) powers and duties of the Chairperson under section 10; 3[(ba) the other functions to be performed by the Member-Secretary;] (c) procedure under sub-section (1) of section 12 in regard to transaction of business at meetings; (d) form of application and payment of fees for undertaking certain activities under sub-section (1) of section 19; (e) the form and manner of making an application [3][and payment of fees] under sub-section (2) of section 19; 3[(ea) form of application and payment of fees under sub-section (1) of section 20;] (f) form of application and the manner for transfer of biological resource or knowledge under sub-section (2) of section 20; (g) form in which, and the time of each financial year at which, the annual report of the National Biodiversity Authority shall be prepared and the date before which its audited copy of accounts together with auditor's report thereon shall be furnished under section 28; (h) form in which the annual statement of account shall be prepared under sub-section (1) of section 29; (i) the time within which and the form in which, an appeal may be preferred, the procedure for disposing of an appeal and the procedure for adjudication, under section 50; (j) the additional matter in which the National Biodiversity Authority may exercise powers of the civil court under clause (h) of sub-section (6) of section 50; 3[(ja) the manner of holding inquiry by the adjudicating officer under section 55A; (jb) the other power under clause (e) of section 55B;] (k) the manner of giving notice under clause (b) of section 61; (1) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules. (3) Every rule made under this section and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both 1. Subs. by Act 10 of 2023, s. 41, for “any benefit claimer” (w.e.f. 1-4-2024). 2. Subs. by s. 42, ibid., for clause (a) (w.e.f. 1-4-2024). 3. Ins. by s. 42, ibid. (w.e.f. 1-4-2024). 24 ----- Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **63. Power of State Government to make rules.—(1) The State Government may, by notification in** the Official Gazette, make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the other functions to be performed by the State Biodiversity Board under clause (c) of section 23; (b) the form in which the prior intimation shall be given under sub-section (1) of section 24; (c) the form in which, and the time of each financial year at which, the annual report shall be prepared under section 33; (d) the manner of maintaining and auditing the accounts of the State Biodiversity Board and the date before which its audited copy of the accounts together with auditor's report thereon shall be furnished under section 34; (e) management and conservation of national heritage sites under section 37; 1[(ea) the composition of the Biodiversity Management Committee under sub-section (1B) of section 41;] (f) the manner of management and custody of the Local Biodiversity Fund and the purposes for which such Fund shall be [2][utilised] under sub-section (1) of section 44; (g) the form of [3][annual statement] and the time at which such report shall be prepared during each financial year under section 45; (h) the manner of maintaining and auditing the accounts of the Local Biodiversity Fund and the date before which its audited copy of the accounts together with auditor's report thereon shall be furnished under section 46; (i) any other matter which is to be, or may be, specified. (3) Every rule made by the State Government under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **64. Power to make regulations.—The National Biodiversity Authority shall, with the previous** approval of the Central Government, by notification in the Official Gazette, make regulations for carrying out the purposes of this Act. **65. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 1. Ins. by Act 10 of 2023, s. 43 (w.e.f. 1-4-2024). 2. Subs. by s. 43, ibid., for “applied” (w.e.f. 1-4-2024). 3. Subs. by s. 43, ibid., for “annual report” (w.e.f. 1-4-2024). 25 -----
18-May-2003
34
The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003
https://www.indiacode.nic.in/bitstream/123456789/2053/3/A2003-34.pdf
central
# THE CIGARETTES AND OTHER TOBACCO PRODUCTS (PROHIBITION OFADVERTISEMENT AND REGULATION OF TRADE AND COMMERCE, PRODUCTION, SUPPLY AND DISTRIBUTION) ACT, 2003 –––––––– ARRANGEMENT OF SECTIONS –––––––– SECTIONS 1. Short title, extent and commencement. 2. Declaration as to expediency of control by the Union. 3. Definitions. 4. Prohibition of smoking in a public place. 5. Prohibition of advertisement of cigarettes and other tobacco products. 6. Prohibition on sale of cigarette or other tobacco products to a person below the age of eighteen years and in particular area. 7. Restrictions on trade and commerce in, and production, supply and distribution of cigarettes and other tobacco products. 8. Manner in which specified warning shall be made. 9. Language in which the specified warning shall be expressed. 10. Size of letters and figures. 11. Testing laboratory for nicotine and tar contents. 12. Power of entry and search. 13. Power to seize. 14. Confiscation of package. 15. Power to give option to pay costs in lieu of confiscation. 16. Confiscation not to interfere with other punishments. 17. Adjudication. 18. Giving opportunity to the owner of seized packages. 19. Appeal. 20. Punishment for failure to give specified warning and nicotine and tar contents. 21. Punishment for smoking in certain places. 22. Punishment for advertisement of cigarettes and tobacco products. 23. Forfeiture of advertisement and advertisement material. 24. Punishment for sale of cigarettes or any other tobacco products in certain places or to persons below the age of eighteen years. 25. Prevention, detention and place of trial of offences under sections 4 and 6. 1 ----- # SECTIONS 26. Offences by companies. 27. Offences to be bailable. 28. Composition of offences. 29. Protection of action taken in good faith. 30. Power to add any tobacco products in the Schedule. 31. Power of Central Government to make rules. 32. Act not to apply to cigarettes of other tobacco products which are exported. 33. Repeal and savings. THE SCHEDULE. 2 ----- # THE CIGARETTES AND OTHER TOBACCO PRODUCTS (PROHIBITION OFADVERTISEMENT AND REGULATION OF TRADE AND COMMERCE, PRODUCTION, SUPPLY AND DISTRIBUTION) ACT, 2003 ACT NO. 34 OF 2003 [18th May, 2003.] # An Act to prohibit the advertisement of, and to provide for the regulation of trade and commerce in, and production, supply and distribution of, cigarettes and other tobacco products and for matters connected therewith or incidental thereto. WHEREAS, the Resolution passed by the 39th World Health Assembly (WHO), in its Fourteenth Plenary meeting held on the 15th May, 1986 urged the member States of WHO which have not yet done so to implement the measures to ensure that effective protection is provided to non-smokers from involuntary exposure to tobacco smoke and to protect children and young people from being addicted to the use of tobacco; AND WHEREAS, the 43rd World Health Assembly in its Fourteenth Plenary meeting held on the 17th May, 1990, reiterated the concerns expressed in the Resolution passed in the 39th World Health Assembly and urged Member States to consider in their tobacco control strategies plans for legislation and other effective measures for protecting their citizens with special attention to risk groups such as pregnant women and children from involuntary exposure to tobacco smoke, discourage the use of tobacco and impose progressive restrictions and take concerted action to eventually eliminate all direct and indirect advertising, promotion and sponsorship concerning tobacco; AND WHEREAS, it is considered expedient to enact a comprehensive law on tobacco in the public interest and to protect the public health; AND WHEREAS, it is expedient to prohibit the consumption of cigarettes and other tobacco products which are injurious to health with a view to achieving improvement of public health in general as enjoined by article 47 of the Constitution; AND WHEREAS, it is expedient to prohibit the advertisement of, and to provide for regulation of trade and commerce, production, supply and distribution of, cigarettes and other tobacco products and for matters connected therewith or incidental thereto: BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the Cigarettes and Other** Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. **2. Declaration as to expediency of control by the Union.—It is hereby declared that it is expedient** in the public interest that the Union should take under its control the tobacco industry. 1. 1st December, 2007, sub-sections (1), (2), (3) and (4) of sec. 7, ss. 8, 9, 10 and 20, vide notification No. S.O. 1955(E), dated 16th November, 2007, see Gazette of India, Extraordinary, Part II, sec 3(ii). 3 ----- **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “advertisement” includes any visible representation by way of notice, circular, label, wrapper or other document and also includes any announcement made orally or by any means of producing or transmitting light, sound, smoke or gas; (b) “cigarette” includes,— (i) any roll of tobacco wrapped in paper or in any other substance not containing tobacco, (ii) any roll of tobacco wrapped in any substance containing tobacco, which, by reason of its appearance, the type of tobacco used in the filter, or its packaging and labelling is likely to be offered to, or purchased by, consumers as cigarette, but does not include beedi, cheroot and cigar; (c) “distribution” includes distribution by way of samples, whether free or otherwise; (d) “export”, with its grammatical variations and cognate expressions, means taking out of India to a place outside India; (e) “foreign language” means a language which is neither an Indian language nor the English language; (f) “import”, with its grammatical variations and cognate expressions, means bringing into India from a place outside India; (g) “Indian language” means a language specified in the Eighth Schedule to the Constitution, and includes any dialect of such language; (h) “label” means any written, marked, stamped, printed or graphic matter, affixed to, or appearing upon, any package; (i) “package” includes a wrapper, box, carton, tin or other container; (j) “prescribed” means prescribed by rules made under this Act; (k) “production”, with its grammatical variations and cognate expressions, includes the making of cigarettes, cigars, cheroots, beedis, cigarette tobacco, pipe tobacco, hookah tobacco, chewing tobacco, _pan masala or any chewing material having tobacco as one of its ingredients (by whatever name_ called) or snuff and shall include– (i) packing, labellingor re-labelling, of containers; (ii) re-packing from bulk packages to retail packages; and (iii) the adoption of any other method to render the tobacco product marketable; (l) “public place” means any place to which the public have access, whether as of right or not, and includes auditorium, hospital buildings, railway waiting room, amusement centres, restaurants, public offices, court buildings, educational institutions, libraries, public conveyances and the like which are visited by general public but does not include any open space; (m) “sale”, with its grammatical variations and cognate expressions, means any transfer of property in goods by one person to another, whether for cash or on credit, or by way of exchange, and whether wholesale or retail, and includes an agreement for sale, and offer for sale and exposure for sale; (n) “smoking”, means smoking of tobacco in any form whether in the form of cigarette, cigar, _beedis or otherwise with the aid of a pipe, wrapper or any other instruments;_ 4 ----- (o) “specified warning” means such warnings against the use of cigarettes or other tobacco products to be printed, painted or inscribed on packages of cigarettes or other tobacco products in such form and manner as may be prescribed by rules made under this Act; (p) “tobacco products” means the products specified in the Schedule. **STATE AMENDMENT** **Maharashtra** **Amendment of section 3 of Act 34 of 2003.—In section 3 of the Cigarettes and Other Tabacco** Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (hereinafter referred to as “the principal Act”), after clause (e), the following clause shall be inserted, namely:— “(ee) “hookah bar” means an establishment where people gather to smoke tobacco from a community hookah or narghile which is provided individually;” [Vide Maharashtra Act 60 of 2018, s. 2.] **Gujarat** **Amendment of section 3 of Act 34 of 2003.–In the Cigarettes and Other Tobacco Products** (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (hereinafter referred to as “the principal Act”), in section 3, after clause (e), the following clause shall be inserted, namely:— “(ee) “hookah bar” means an establishment where people gather to smoke tobacco from a communal hookah or narghile which is provided individually;”. [Vide Gujarat Act 27 of 2017, s. 2.] **Rajasthan** **Amendment of section 3, Central Act No. 34 of 2003.-In section 3 of the Cigarettes and Other** Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (Central Act No. 34 of 2003), hereinafter referred to as the principal Act, after the existing clause (e) and before the existing clause (f), the following clause shall be inserted, namely: “(ee) “hookah bar” means an establishment where people gather to smoke tobacco from a communal hookah or narghile which is provided individually;”. [Vide Rajasthan Act 1 of 2020, s. 2] **4. Prohibition of smoking in a public place.—No person shall smoke in any public place:** Provided that in a hotel having thirty rooms or a restaurant having seating capacity of thirty persons or more and in the airports, a separate provision for smoking area or space may be made. 5 ----- **STATE AMENDMENT** **Gujarat** **Insertion of new section 4A is Act 34 of 2003.—In the principal Act, after section 4, the following** section shall be inserted, namely:– **Prohibition of hookah bar.-“4A.—Notwithstanding anything contained in this Act, no person shall,** either on his own or on behalf of any other person, open or run any hookah bar in any place including the eating house. **_Explanation.—The term “eating house” shall have the same meaning as assigned to it by clause (5A)_** of section 2 of the Gujarat Police Act, 1951 (Bom. XXII of 1951).”. [Vide Gujarat Act 27 of 2017, s. 3.] **Maharashtra** **Insertion of new section 4A in Act 34 of 2003.—After section 4 of the principal Act, the following** section shall be inserted, namely:— **Prohibition of hookab bar.— “4A.–Notwithstading anything contained in this Act, no person shall,** either on his own or on behalf of any other person, open or run any hookah bar in any place including the eating house. _Explanation.–The term “eating house” shall have the same meaning as assigned to it in clause (5A) of_ section 2 of the Maharashtra Police Act (XXII of 1951).”. [Vide Maharashtra Act 60 of 2018, s. 3.] **Rajasthan** **Insertion of new section 4A, Central Act No. 34 of 2003.-after the existing section 4 and before the** existing section 5 of the principal Act, the following shall be inserted, namely:— “4A. Prohibition of hookah bar.—Notwithstanding anything contained in this Act, no person shall, either on his own or on behalf of any other person, open or run any hookah bar in any place including the eating house. **Explanation.—The term ‘eating house’ means any place where food or refreshment of any kind is** provided for visitors or sold for consumption therein.”. [Vide Rajasthan Act 1 of 2020, s. 3.] **5. Prohibition of advertisement of cigarettes and other tobacco products.—(1) No person** engaged in, or purported to be engaged in the production, supply or distribution of cigarettes or any other tobacco products shall advertise and no person having control over a medium shall cause to be advertised cigarettes or any other tobacco products through that medium and no person shall take part in any advertisement which directly or indirectly suggests or promotes the use or consumption of cigarettes or any other tobacco products. (2) No person, for any direct or indirect pecuniary benefit, shall— (a) display, cause to display, or permit or authorise to display any advertisement of cigarettes or any other tobacco product; or (b) sell or cause to sell, or permit or authorise to sell a film or video tape containing advertisement of cigarettes or any other tobacco product; or 6 ----- (c) distribute, cause to distribute, or permit or authorise to distribute to the public any leaflet, hand-bill or document which is or which contains an advertisement of cigarettes or any other tobacco product; or (d) erect, exhibit, fix or retain upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle or shall display in any manner whatsoever in any place any advertisement of cigarettes or any other tobacco product: Provided that this sub-section shall not apply in relation to— (a) an advertisement of cigarettes or any other tobacco product in or on a package containing cigarettes or any other tobacco product; (b) advertisement of cigarettes or any other tobacco product which is displayed at the entrance or inside a warehouse or a shop where cigarettes and any other tobacco products are offered for distribution or sale. (3) No person, shall, under a contract or otherwise promote or agree to promote the use or consumption of– (a) cigarettes or any other tobacco product; or (b) any trade mark or brand name of cigarettes or any other tobacco product in exchange for a sponsorship, gift, prize or scholarship given or agreed to be given by another person. **6. Prohibition on sale of cigarette or other tobacco products to a person below the age of** **eighteen years and in particular area.—No person shall sell, offer for sale, or permit sale of, cigarette** or any other tobacco product— (a) to any person who is under eighteen years of age, and (b) in an area within a radius of one hundred yards of any educational institution. **7. Restrictions on trade and commerce in, and production, supply and distribution of cigarettes** **and other tobacco products.—(1) No person shall, directly or indirectly, produce, supply or distribute** cigarettes or any other tobacco products unless every package of cigarettes or any other tobacco products produced, supplied or distributed by him bears thereon, or on its label [1][such specified warning including a pictorial warning as may be prescribed.] (2) No person shall carry on trade or commerce in cigarettes or any other tobacco products unless every package of cigarettes or any other tobacco products sold, supplied or distributed by him bears thereon, or on its label, the specified warning. (3) No person shall import cigarettes or any other tobacco products for distribution or supply for a valuable consideration or for sale in India unless every package of cigarettes or any other tobacco products so imported by him bears thereon, or on its label, the specified warning. (4) The specified warning shall appear on not less than one of the largest panels of the package in which cigarettes or any other tobacco products have been packed for distribution, sale or supply for a valuable consideration. (5) No person shall, directly or indirectly, produce, supply or distribute cigarettes or any other tobacco products unless every package of cigarettes or any other tobacco products produced, supplied or distributed by him indicates thereon, or on its label, the nicotine and tar contents on each cigarette or as the case may be on other tobacco products along with the maximum permissible limits thereof: 1. Subs. by Act 38 of 2007, s. 2, for certain words (w.e.f. 24-9-2007). 7 ----- Provided that the nicotine and tar contents shall not exceed the maximum permissible quantity thereof as may be prescribed by rules made under this Act. **8. Manner in which specified warning shall be made.—(1) The specified warning on a package of** cigarettes or any other tobacco products shall be— (a) legible and prominent; (b) conspicuous as to size and colour; (c) in such style or type of lettering as to be boldly and clearly presented in distinct contrast to any other type, lettering or graphic material used on the package or its label and shall be printed, painted or inscribed on the package in a colour which contrasts conspicuously with the background of the package or its labels. (2) The manner in which a specified warning shall be printed, painted or inscribed on a package of cigarettes or any other tobacco products shall be such as may be specified in the rules made under this Act. (3) Every package containing cigarettes or any other tobacco products shall be so packed as to ensure that the specified warning appearing thereon, or on its label, is, before the package is opened, visible to the consumer. **9. Language in which the specified warning shall be expressed.—(1) Where the language used on** a package containing cigarettes and any other tobacco products or on its label is— (a) English, the specified warning shall be expressed in the English language; (b) any Indian language or languages, the specified warning shall be expressed in such Indian language or languages; (c) both English and one or more Indian languages, the specified warning shall be expressed in the English language as well as in such Indian language or languages; (d) partly English and partly any Indian language or languages, the specified warning shall be expressed in the English language as well as in such Indian language or languages; (e) any foreign language, the specified warning shall be expressed in the English language; (f) partly any foreign language and partly English or any Indian language or languages, the specified warning shall be expressed in the English language as well as in such Indian language or languages. (2) No package of cigarettes or any other tobacco products or its label shall contain any matter or statement which is inconsistent with, or detracts from, the specified warning. **10. Size of letters and figures.—No specified warning or indication of nicotine and tar contents in** cigarettes and any other tobacco products shall be deemed to be in accordance with the provisions of this Act if the height of each letter or figure, or both the used on such warning and indication is less than the height as may be prescribed by rules made under this Act. **11. Testing laboratory for nicotine and tar contents.—For purposes of testing the nicotine and tar** contents in cigarettes and any other tobacco products the Central Government shall by notification in the Official Gazette grant recognition to such testing laboratory as that Government may deem necessary. 8 ----- **12. Power of entry and search.—(1) Any police officer, not below the rank of a sub-inspector or** any officer of State Food or Drug Administration or any other officer, holding the equivalent rank being not below the rank of Sub-Inspector of Police, authorise side by the Central Government or by the State Government may, if he has any reason to suspect that any provision of this Act has been, or is being, contravened, enter and search in the manner prescribed, at any reasonable time, any factory, building, business premises or any other place,— (a) where any trade or commerce in cigarettes or any other tobacco products is carried on or cigarettes or any other tobacco products are produced, supplied or distributed; or (b) where any advertisement of the cigarettes or any other tobacco products has been or is being made. (2) The provisions of the Code of Criminal Procedure, 1973(2 of 1974), shall apply to every search and seizure made under this Act. **STATE AMENDMENT** **Gujarat** **Amendment of Section 12 of Act 34 of 2003.—In the principal Act, in section 12, in sub-section** (1),– (i) in clause (b), the words “or” shall be added at the end; (ii) after clause (b), the following clause shall be added, namely:— “(c) where any hookas bar is being run.”. [Vide Gujarat Act 27 of 2017, s. 4.] **Maharashtra** **Amendment of section 12 of Act 34 of 2003.–In section 12 of the principal Act, in sub-section (1),–** (i) in clause (b), after the word “made” the word “; or” shall be added; (ii) after clause (b), the following clause shall be added, namely:— “(c) where any hookah bar is being run.”. [Vide Maharashtra Act 60 of 2018, s. 4.] **Rajasthan** **Amendment of section 12, Central Act No. 34 of 2003.—In the existing sub-section (1) of section** 12 of the principal Act,— (i) in clause (b), for the existing punctuation mark”. “appearing at the end, the expression”; or” shall be substituted; (ii) after the clause (b), so amended, the following shall be added, namely:— “(c) where any hookah bar is being run.”. [Vide Rajasthan Act 1 of 2020, s. 4.] **13. Power to seize.—(1) If any police officer, not below the rank of a sub-inspector or any officer of** State Food or Drug Administration or any other officer, holding the equivalent rank being not below the rank of Sub-Inspector of Police, authorised by the Central Government or by the State Government, has any reason to believe that,— 9 ----- (a) in respect of any package of cigarettes or any other tobacco products, or (b) in respect of any advertisement of cigarettes or any other tobacco products, the provisions of this Act have been, or are being, contravened, he may seize such package or advertisement material in the manner prescribed. (2) No package of cigarettes or any other tobacco products or advertisement material seized under clause (a) of sub-section (1) shall be retained by the officer who seized the package or advertisement material for a period exceeding ninety days from the date of the seizure unless the approval of the District Judge, within the local limits of whose jurisdiction such seizure was made, has been obtained for such retention. **STATE AMENDMENT** **Gujarat** **Insertion of new section 13A in Act 34 of 2003.—In the principal Act, after section 13, the** following section shall be inserted, namely:— **Power to seize.—“13A If any police officer, not below the rank of a Sub-Inspector, authorized by the** State Government, has reason to believe that the provisions of section 4A have been, or are being, contravened, he may seize any material or article used as a subject or means of hookah bar.”. [Vide Gujarat Act 27 of 2017, s. 5.] **Maharashtra** **Insertion of new section 13A in Act 34 of 2003.—After section 13 of the principal Act, the** following section shall be inserted, namely:— **Power to seize.—“13A.—If any police officer, not below the rank of Assistant Police Inspector,** authorized by the State Government, has reason to believe that the provisions 4A have been, or are being, contravened, he may seize any material or article used as a subject or means of hookah bar.”. [Vide Maharashtra Act 60 of 2018, s. 5.] **Rajasthan** **Insertion of new section 13A, Central Act No. 34 of 2003.—After the existing section 13 and** before the existing section 14 of the principal Act, the following shall be inserted, namely:— **“13A. Power to seize.—If any police officer, not below the rank of Sub-Inspector, authorized by the** State Government, has reason to believe that the provisions of section 4A have been, or are being, contravened, he may seize any material or article used as a subject or means of hookah bar.”. [Vide Rajasthan Act 1 of 2020, s. 5.] **14. Confiscation of package.—Any package of cigarettes or any other tobacco products or any** advertisement material of cigarettes or any other tobacco products, in respect of which any provision of this Act has been or is being contravened, shall be liable to be confiscated: Provided that, where it is established to the satisfaction of the court adjudging the confiscation that the person in whose possession, power or control any such package of cigarettes orany other tobacco products is found is not responsible for the contravention of the provisions of this Act, the Court may, instead of making an order for the confiscation of such package, make such other order authorised by this Act against the person guilty of the breach of the provisions of this Act as it may think fit. 10 ----- **15. Power to give option to pay costs in lieu of confiscation.— (1) Whenever any confiscation of** any package of cigarettes or any other tobacco products is authorised by this Act, the court adjudging it may, subject to such conditions as may be specified in the order adjudging the confiscation, give to the owner thereof an option to pay, in lieu of confiscation, costs which shall be equal to the value of the goods confiscated. (2) On payment of the costs ordered by the court, the seized packages shall be returned to the person from whom they were seized on condition that such person shall, before making any distribution, sale or supply of such packages of cigarettes or other tobacco products, get the specified warning and indication of nicotine and tar contents incorporated on each such package. **16. Confiscation not to interfere with other punishments.—No confiscation made, costs ordered to** be paid under this Act shall prevent the infliction of any punishment to which the person affected thereby is liable under the provisions of this Act or under any other law. **17. Adjudication.—Any confiscation of cigarettes or any other tobacco products may be adjudged or** costs may be ordered to be paid,— (a) without any limit, by the principal civil court of original jurisdiction within the local limits of whose jurisdiction such confiscation has been made, costs have been ordered to be paid, (b) subject to such limits as may be specified by the Central Government in this behalf, by such other court, not below a civil court having pecuniary jurisdiction exceeding rupees five thousand, as the Central Government may, by notification in the Official Gazette, authorise in this behalf. **18. Giving opportunity to the owner of seized packages.—(1) No order adjudging confiscation or** directing payment of costs shall be made unless the owner or person in possession of the package of cigarettes or any other tobacco products has been given a notice in writing informing him of the grounds on which it is proposed to confiscate such package, and giving him a reasonable opportunity of making a representation in writing, within such reasonable time as may be specified in the notice, against the confiscation mentioned therein, and, if he so desires, of being heard personally or through a representative in the matter: Provided that, where no such notice is given within a period of ninety days from the date of the seizure of the package of cigarettes or of any other tobacco products, such package shall be returned, after the expiry of that period, to the owner or the person from whose possession it was seized. (2) Save as otherwise provided in sub-section (1), the provisions of the Code of Civil Procedure, 1908 (5 of 1908), shall, as far as may be, apply to every proceeding referred to in sub-section (1). **19. Appeal.—(1) Any person, aggrieved by any decision of the court adjudging a confiscation,** ordering the payment of costs, may prefer an appeal to the court to which an appeal lies from the decision of such court. (2) The appellate court may, after giving to the appellant an opportunity of being heard, pass such order as it thinks fit confirming, modifying or reversing the decision or order appealed against or may send back the case with such directions as it may think fit for a fresh decision or adjudication, as the case may be, after taking additional evidence, if necessary: Provided that an order enhancing any fine in lieu of confiscation or confiscating of goods of greater value shall not be made under this section unless the appellant has had an opportunity of making a representation and, if he so desires, of being heard in person or through a representative in his defence. (3) No further appeal shall lie against the order of the court of appeal. **20. Punishment for failure to give specified warning and nicotine and tar contents.—(1) Any** person who produces or manufactures cigarettes or tobacco products, which do not contain, either on the 11 ----- package or on their label, the specified warning and the nicotine and tar contents, shall in the case of first conviction be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to five thousand rupees, or with both, and for the second or subsequent conviction, with imprisonment for a term which may extend to five years and with fine which may extend to ten thousand rupees. (2) Any person who sells or distributes cigarettes or tobacco products which do not contain either on the package or on their label, the specified warning and the nicotine and tar contents shall in the case of first conviction be punishable with imprisonment for a term, which may extend to one year, or with fine which may extend to one thousand rupees, or with both, and, for the second or subsequent conviction, with imprisonment for a term which may extend to two years and with fine which may extend to three thousand rupees. **21. Punishment for smoking in certain places.—(1) Whoever contravenes the provisions of section** 4 shall be punishable with fine which may extend to two hundred rupees. (2) An offence under this section shall be compoundable and shall be tried summarily in accordance with the procedure provided for summary trials in the Code of Criminal Procedure, 1973 (2 of 1974). **STATE AMENDMENT** **Gujarat** **Insertion of new section 21A in Act 34 of 2003.—In the principal Act, after section 21, the following** section shall be inserted, namely:– **Punishment for running hookas bar.–“21A.—Whoever contravenes the provisions of section 4A** shall be punishable with imprisonment which may extend to three years but which shall not be less that one year and with fine which may extend to fifty thousand rupees but which shall not be less than twenty thousand rupees.”. [Vide Gujarat Act 27 of 2017, s. 6.] **Maharashtra** **Insertion of new section 21A in Act 34 of 2003.—After section 21 of the principal Act, the following** section shall be inserted, namely: — **Punishment for running hookah bar.—“21A.—Whoever contravenes the provisions of section 4A,** shall be punishable with imprisonment for a term which may extend to three years but which shall not be less than one year and with fine which may extend to one lakh rupees but which shall not be less than fifty thousand rupees.”. [Vide Maharashtra Act 60 of 2018, s. 6.] **Rajasthan** **Insertion of new section 21A, Central Act No. 34 of 2003. —After the existing section 21 and before** the existing section 22 of the principal Act, the following shall be inserted, namely: — 12 ----- **“21A. Punishment for running hookah bar.—Whoever contravenes the provisions of section 4A,** Shall be punishable with imprisonment for a term which may extend to three years but which shall not be less than one year and with fine which may extend to one lakh rupees but which shall not be less than fifty thousand rupees.”. [Vide Rajasthan Act 1 of 2020, s. 6.] **22. Punishment for advertisement of cigarettes and tobacco products.—Whoever contravenes the** provision of section 5 shall, on conviction, be punishable— (a) in the case of first conviction, with imprisonment for a term which may extend to two years or with fine which may extend to one thousand rupees or with both, and (b) in the case of second or subsequent conviction with imprisonment for a term which may extend to five years and with fine which may extend to five thousand rupees. **23. Forfeiture of advertisement and advertisement material.—Where any person has been** convicted under this Act for the contravention of the provision of section 5, the advertisement and the advertisement material for cigarettes and other tobacco products may be forfeited to the Government and such advertisement and advertisement material shall be disposed of in such manner as may be prescribed by rules made under this Act. **24. Punishment for sale of cigarettes or any other tobacco products in certain places or to** **persons below the age of eighteen years.—(1) Any person who contravenes the provisions of section 6** shall be guilty of an offence under this Act and shall be punishable with fine which may extend to two hundred rupees. (2) All offences under this section shall be compoundable and shall be tried summarily in accordance with the procedure provided for summary trials in the Code of Criminal Procedure, 1973 (2 of 1974). **25. Prevention, detention and place of trial of offences under sections 4 and 6.—(1)** Notwithstanding anything contained in any other law for the time being in force, the Central Government or the State Government may, by notification in the Official Gazette, authorise one or more persons who shall be competent to act under this Act: Provided that the person so authorised may, if he has reasonable ground for believing that any person has committed an offence under section 4 or section 6, may detain such person unless the accused person furnishes his name and address, and otherwise satisfies the officer detaining him that he will duly answer any summons or other proceedings which may be taken against him. (2) Any person detained under sub-section (1) shall forthwith be taken before Magistrate to be dealt with according to law. (3) Any person committing an offence under section 4 or section 6 shall be triabal for such offence in any place in which he may be or which the State Government may notify in this behalf, as well as in any other place in which he is liable to be tried under any law for the time being in force. (4) Every notification issued under sub-sections (1) and (3) shall be published in the Official Gazette, and a copy thereof shall be exhibited for information to the public in some conspicuous place or places as the State Government may direct. (5) Every person authorised under sub-section (1) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **26. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was 13 ----- responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means a body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **27. Offences to be bailable.—Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), an offence punishable under this Act shall be bailable. **STATE AMENDMENT** **Gujarat** **Insertion of new section 27A in Act 34 of 2003.—In the principal Act, after section 27, the** following section shall be inserted, namely:– **Offence under section 4A to be cognizable.—“27A.—An offence under section 4A shall be** cognizable.”. [Vide Gujarat Act 27 of 2017, s. 7.] **Maharashtra** **Insertion of new section 27A in Act 34 of 2003.—After section 27 of the principal Act, the** following section shall be inserted, namely:— **Offence under section 4A to be cognizable.—“27A.—An offence under section 4A shall be** cognizable.”. [Vide Maharashtra Act 60 of 2018, s. 7] **Rajasthan** **Insertion of new section 27A, Central Act No. 34 of 2003.—After the existing section 27 and** before the existing section 28 of the principal Act, the following shall be inserted, namely:— **“27A. Offence under section 4A to be congnizable.—An offence under section 4A shall be** cognizable.”. [Vide Rajasthan Act 1 of 2020, s. 7.] 14 ----- **28. Composition of offences.—(1) Any offence committed under section 4 or section 6 may either** before or after the institution of the prosecution be compounded by such officer authorised by Central Government or State Government and for an amount which may not exceed two hundred rupees. (2) Where an offence has been compounded under sub-section (1), the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of such offence. **29. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or any State Government or any officer of the Central Government or any State Government for anything which is in good faith done or intended to be done under this Act. **30. Power to add any tobacco products in the Schedule.—The Central Government, after giving** by notification in the Official Gazette, not less than three months' notice of its intention so to do, may, by like notification, add any other tobacco product in respect of which it is of opinion that advertisements are to be prohibited and its production, supply and distribution is required to be regulated under this Act, and thereupon the Schedule shall in its application to such products be deemed to be amended accordingly. **31. Power of Central Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules to carry out the provisions of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) specify the form and manner in which warning shall be given in respect of cigarettes or other tobacco products under clause (o) of section 3; (b) specify the maximum permissible nicotine and tar contents in cigarettes or other tobacco products under the proviso to sub-section (5) of section 7; (c) specify the manner in which the specified warning shall be inscribed on each package of cigarettes or other tobacco products or its label under sub-section (2) of section 8; (d) specify the height of the letter or figure or both to be used in specified warning or to indicate the nicotine and tar contents in cigarettes or other tobacco products under section 10; (e) provide for the manner in which entry into and search of any premises is to be conducted and the manner in which the seizure of any package of cigarettes or other tobacco products shall be made and the manner in which seizure list shall be prepared and delivered to the person from whose custody any package of cigarettes or other tobacco products has been seized; (f) provide for any other matter which is required to be, or may be, prescribed. (3) Every rule made under this Act and every notification made under section 30 shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification. **32. Act not to apply to cigarettes of other tobacco products which are exported.—Nothing** contained in this Act shall apply to any cigarette or other tobacco products or package of cigarettes or other tobacco products which is exported: Provided that nothing in this section shall be deemed to authorise the export of any package of cigarettes or other tobacco products, not containing the specified warning and indication of nicotine and 15 ----- tar contents to any country if the law in force in that country requires that the same or similar warning and nicotine and tar contents shall be specified on each package of cigarettes or other tobacco products. _Explanation.—For the purpose of this section, any cigarette or other tobacco products or package of_ cigarettes or other tobacco products shall be deemed to be exported before the commencement of this Act, if the necessary steps for export have already been taken notwithstanding that the actual export has not taken place. **33. Repeal and savings.— (1) The Cigarettes (Regulation of Production, Supply and Distribution)** Act, 1975(49 of 1975), is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the provisions of the aforesaid Act, shall, in so far as such thing or action is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the provisions of this Act as if the said provisions were in force when such thing was done or such action was taken and shall continue in force accordingly until superseded by anything done or any action taken under this Act. 16 ----- THE SCHEDULE [See section 3(p)] 1. Cigarettes 2. Cigars 3. Cheroots 4. Beedis 5. Cigarette tobacco, pipe tobacco and hookah tobacco 6. Chewing tobacco 7. Snuff 8. Pan masala or any chewing material having tobacco as one of its ingredients (by whatever name called). 9. Gutka 10. Tooth powder containing tobacco. 17 -----
26-May-2003
36
The Electricity Act, 2003
https://www.indiacode.nic.in/bitstream/123456789/2058/1/A2003-36.pdf
central
# THE ELECTRICITY ACT, 2003 ________ ARRANGEMENT OF SECTIONS ––––––– PART I PRELIMINARY # SECTIONS 1. Short title, extent and commencement. 2. Definitions. PART II NATIONAL ELECTRICITY POLICY AND PLAN 3. National Electricity Policy and Plan. 4. National policy on stand alone systems for rural areas and non-conventional energy systems. 5. National policy on electrification and local distribution in rural areas. 6. Joint responsibility of State Government and Central Government in rural electrification. PART III GENERATION OF ELECTRICITY 7. Generating company and requirement for setting up of generating station. 8. Hydro-electric generation. 9. Captive generation. 10. Duties of generating companies. 11. Directions to generating companies. PART IV LICENSING 12. Authorised persons to transmit, supply, etc., electricity. 13. Power to exempt. 14. Grant of licence. 15. Procedure for grant of licence. 16. Conditions of licence. 17. Licensee not to do certain things. 18. Amendment of licence. 1 ----- # SECTIONS 19. Revocation of licence. 20. Sale of utilities of licensees. 21. Vesting of utility in purchaser. 22. Provisions where no purchase takes place. 23. Directions to licensees. 24. Suspension of distribution licence and sale of utility. PART V TRANSMISSION OF ELECTRICITY _Intra-State transmission_ 25. Inter-State, regional and inter-regional transmission. 26. National Load Despatch Centre. 27. Constitution of Regional Load Despatch Centre. 28. Functions of Regional Load Despatch Centre. 29. Compliance of directions. _Inter-State transmission_ 30. Transmission within a State. 31. Constitution of State Load Despatch Centers. 32. Functions of State Load Despatch Centers. 33. Compliance of directions. _Other provisions relating to transmission_ 34. Grid Standards. 35. Intervening transmission facilities. 36. Charges for intervening transmission facilities. 37. Directions by Appropriate Government. 38. Central Transmission Utility and functions. 39. State Transmission Utility and functions. 40. Duties of transmission licensees. 41. Other business of transmission licensee. PART VI DISTRIBUTION OF ELECTRICITY _Provisions with respect to distribution licensees_ 42. Duties of distribution licensee and open access. 43. Duty to supply on request. 44. Exceptions from duty to supply electricity. 45. Power to recover charges. 2 ----- SECTIONS 46. Power to recover expenditure. 47. Power to require security. 48. Additional terms of supply. 49. Agreements with respect to supply or purchase of electricity. 50. The Electricity supply code. 51. Other businesses of distribution licensees. _Provisions with respect to electricity traders_ 52. Provisions with respect to electricity trader. _Provisions with respect to supply generally_ 53. Provision relating to safety and electricity supply. 54. Control of transmission and use of electricity. 55. Use, etc., of meters. 56. Disconnection of supply in default of payment. _Consumer protection: Standards of performance_ 57. Standards of performance of licensee. 58. Different standards of performance by licensee. 59. Information with respect to levels of performance. 60. Market domination. PART VII TARIFF 61. Tariff regulations. 62. Determination of tariff. 63. Determination of tariff by bidding process. 64. Procedure for tariff order. 65. Provision of subsidy by State Government. 66. Development of market. PART VIII WORKS _Works of licensees_ 67. Provision as to opening up of streets, railways, etc. _Provisions relating to overhead lines_ 68. Overhead lines. 69. Notice to telegraph authority. 3 ----- PART IX CENTRAL ELECTRICITY AUTHORITY _Constitution and functions of Authority_ SECTIONS 70. Constitution, etc., of Central Electricity Authority. 71. Members not to have certain interest. 72. Officers and staff of Authority. 73. Functions and duties of Authority. _Certain powers and directions_ 74. Power to require statistics and returns. 75. Directions by Central Government to Authority. PART X REGULATORY COMMISSIONS _Constitution, powers and functions of Central Commission_ 76. Constitution of Central Commission. 77. Qualifications for appointment of Members of Central Commission. 78. Constitution of Selection Committee to recommend Members. 79. Functions of Central Commission. 80. Central Advisory Committee. 81. Objects of Central Advisory Committee. _Constitution, powers and functions of State Commissions_ 82. Constitution of State Commission. 83. Joint Commission. 84. Qualifications for appointment of Chairperson and Members of State Commission. 85. Constitution of Selection Committee to select Members of State Commission. 86. Functions of State Commission. 87. State Advisory Committee. 88. Objects of State Advisory Committee. _Appropriate Commission–other provisions_ 89. Term of office and conditions of service of Members. 90. Removal of Member. _Proceedings and powers of Appropriate Commission_ 91. Secretary, officers and other employees of Appropriate Commission. 92. Proceedings of Appropriate Commission. 93. Vacancies, etc., not to invalidate proceedings. 94. Powers of Appropriate Commission. 95. Proceedings before Commission. 96. Powers of entry and seizure. 4 ----- SECTIONS 97. Delegation. _Grants, Fund and Accounts, Audit and Report_ 98. Grants and loans by Central Government. 99. Establishment of Fund by Central Government. 100. Accounts and audit of Central Commission. 101. Annual report of Central Commission. 102. Grants and loans by State Government. 103. Establishment of Fund by State Government. 104. Accounts and audit of State Commission. 105. Annual report of State Commission. 106. Budget of Appropriate Commission. 107. Directions by Central Government. 108. Directions by State Government. 109. Directions to Joint Commission. PART XI APPELLATE TRIBUNAL FOR ELECTRICITY 110. Establishment of Appellate Tribunal. 111. Appeal to Appellate Tribunal. 112. Composition of Appellate Tribunal. 113. Qualifications for appointment of Chairperson and Member of Appellate Tribunal. 114. Term of office. 115. Terms and conditions of service. 116. Vacancies. 117. Resignation and removal. 117A. Qualifications, terms and conditions of service of Chairperson and Member. 118. Member to act as Chairperson in certain circumstances. 119. Officers and other employees of Appellate Tribunal. 120. Procedure and powers of Appellate Tribunal. 121. Power of Appellate Tribunal. 122. Distribution of business amongst Benches and transfer of cases from one Bench to another Bench. 123. Decision to be by majority. 124. Right of appellant to take assistance of legal practitioner and of Appropriate Commission to appoint presenting officers. 125. Appeal to Supreme Court. 5 ----- PART XII INVESTIGATION AND ENFORCEMENT SECTIONS 126. Assessment. 127. Appeal to Appellate Authority. 128. Investigation of certain matters. 129. Orders for securing compliance. 130. Procedure for issuing directions by Appropriate Commission. PART XIII REORGANISATION OF BOARD 131. Vesting of property of Board in State Government. 132. Use of proceeds of sale or transfer of Board, etc. 133. Provisions relating to officers and employees. 134. Payment of compensation or damages on transfer. PART XIV OFFENCES AND PENALTIES 135. Theft of electricity. 136. Theft of electric lines and materials. 137. Punishment for receiving stolen property. 138. Interference with meters or works of licensee. 139. Negligently breaking or damaging works. 140. Penalty for intentionally injuring works. 141. Extinguishing public lamps. 142. Punishment for non-compliance of directions by Appropriate Commission. 143. Power to adjudicate. 144. Factors to be taken into account by adjudicating officer. 145. Civil court not to have jurisdiction. 146. Punishment for non-compliance of orders or directions. 147. Penalties not to affect other liabilities. 148. Penalty where works belong to Government. 149. Offences by companies. 150. Abetment. 6 ----- SECTIONS 151. Cognizance of offences. 151A. Power of police to investigate. 151B. Certain offences to be cognizable and non-bailable. 152. Compounding of offences. PART XV SPECIAL COURTS 153. Constitution of Special Courts. 154. Procedure and power of Special Court. 155. Special Court to have powers of Court of Session. 156. Appeal and revision. 157. Review. PART XVI DISPUTE RESOLUTION _Arbitration_ 158. Arbitration. PART XVII OTHER PROVISIONS _Protective clauses_ 159. Protection of railways, highways, airports and canals, docks, wharfs and piers. 160. Protection of telegraphic, telephonic and electric signalling lines. 161. Notice of accidents and inquiries. 162. Appointment of Chief Electrical Inspector and Electrical Inspector. 163. Power for licensee to enter premises and to remove fittings or other apparatus of licensee. 164. Exercise of powers of Telegraph Authority in certain cases. 165. Amendment of sections 40 and 41 of Act 1 of 1894. PART XVIII MISCELLANEOUS 166. Coordination Forum. 167. Exemption of electric lines or electrical plants from attachment in certain cases. 168. Protection of action taken in good faith. 169. Members, officers, etc., of Appellate Tribunal, Appropriate Commission to be public servants. 7 ----- SECTIONS 170. Recovery of penalty payable under this Act. 171. Services of notices, orders or documents. 172. Transitional provisions. 173. Inconsistency in laws. 174. Act to have overriding effect. 175. Provisions of this Act to be in addition to and not in derogation of other laws. 176. Power of Central Government to make rules. 177. Powers of Authority to make regulations. 178. Powers of Central Commission to make regulations. 179. Rules and regulations to be laid before Parliament. 180. Powers of State Governments to make rules. 181. Powers of State Commissions to make regulations. 182. Rules and regulations to be laid before State Legislature. 183. Power to remove difficulties. 184. Provisions of Act not to apply in certain cases. 185. Repeal and saving. THE SCHEDULE. 8 ----- # THE ELECTRICITY ACT, 2003 ACT NO. 36 OF 2003 [26th May, 2003.] # An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:— PART I PRELIMINARY **1. Short title, extent and commencement. — (1) This Act may be called the Electricity Act, 2003.** (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (1) “Appellate Tribunal” means the Appellate Tribunal for Electricity established under section 110; (2) “appointed date” means such date as the Central Government may, by notification, appoint; (3) “area of supply” means the area within which a distribution licensee is authorised by his licence to supply electricity; (4) “Appropriate Commission” means the Central Regulatory Commission referred to in sub-section (1) of section 76 or the State Regulatory Commission referred to in section 82 or the Joint Commission referred to in section 83, as the case may be; (5) “Appropriate Government” means,— (a) the Central Government,— (i) in respect of a generating company wholly or partly owned by it; (ii) in relation to any inter-State generation, transmission, trading or supply of electricity and with respect to any mines, oil-fields, railways, national highways, airports, telegraphs, broadcasting stations and any works of defence, dockyard, nuclear power installations; (iii) in respect of the National Load Despatch Centre and Regional Load Despatch Centre; (iv) in relation to any works or electric installation belonging to it or under its control; (b) in any other case, the State Government, having jurisdiction under this Act; (6) “Authority” means the Central Electricity Authority referred to in sub-section (1) of section 70; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10- 2019). 2. 10th June, 2003 (ss. 1 to 120 and ss. 122 to 185), _vide notification No. S.O. 669(E), dated 10th June, 2003,_ _see Gazette of_ India, Extraordinary, Part II, sec. 3(ii). 9 ----- (7) “Board” means a State Electricity Board, constituted before the commencement of this Act, under sub-section (1) of section 5 of the Electricity (Supply) Act, 1948 (54 of 1948); (8) “Captive generating plant” means a power plant set up by any person to generate electricity primarily for his own use and includes a power plant set up by any co-operative society or association of persons for generating electricity primarily for use of members of such co-operative society or association; (9) “Central Commission” means the Central Electricity Regulatory Commission referred to in sub-section (1) of section 76; (10) “Central Transmission Utility” means any Government company which the Central Government may notify under sub-section (1) of section 38; (11) “Chairperson” means the Chairperson of the Authority or Appropriate Commission or the Appellate Tribunal, as the case may be; (12) “Co-generation” means a process which simultaneously produces two or more forms of useful energy (including electricity); (13) “company” means a company formed and registered under the Companies Act, 1956 (1 of 1956) and includes any body corporate under a Central, State or Provincial Act; (14) “conservation” means any reduction in consumption of electricity as a result of increase in the efficiency in supply and use of electricity; (15) “consumer” means any person who is supplied with electricity for his own use by a licensee or the Government or by any other person engaged in the business of supplying electricity to the public under this Act or any other law for the time being in force and includes any person whose premises are for the time being connected for the purpose of receiving electricity with the works of a licensee, the Government or such other person, as the case may be; (16) “dedicated transmission lines” means any electric supply-line for point to point transmission which are required for the purpose of connecting electric lines or electric plants of a captive generating plant referred to in section 9 or generating station referred to in section 10 to any transmission lines or sub-stations, or generating stations, or the load centre, as the case may be; (17) “distribution licensee” means a licensee authorised to operate and maintain a distribution system for supplying electricity to the consumers in his area of supply; (18) “distributing main” means the portion of any main with which a service line is, or is intended to be, immediately connected; (19) “distribution system” means the system of wires and associated facilities between the delivery points on the transmission lines or the generating station connection and the point of connection to the installation of the consumers; (20) “electric line” means any line which is used for carrying electricity for any purpose and includes– (a) any support for any such line, that is to say, any structure, tower, pole or other thing in, on, by or from which any such line is, or may be, supported, carried or suspended; and (b) any apparatus connected to any such line for the purpose of carrying electricity; (21) “Electrical Inspector” means a person appointed as such by the Appropriate Government under sub-section (1) of section 162 and also includes Chief Electrical Inspector; 10 ----- (22) “electrical plant” means any plant, equipment, apparatus or appliance or any part thereof used for, or connected with, the generation, transmission, distribution or supply of electricity but does not include– (a) an electric line; or (b) a meter used for ascertaining the quantity of electricity supplied to any premises; or (c) an electrical equipment, apparatus or appliance under the control of a consumer; (23) “electricity” means electrical energy— (a) generated, transmitted, supplied or traded for any purpose; or (b) used for any purpose except the transmission of a message; (24) “Electricity Supply Code” means the Electricity Supply Code specified under section 50; (25) “electricity system” means a system under the control of a generating company or licensee, as the case may be, having one or more— (a) generating stations; or (b) transmission lines; or (c) electric lines and sub-stations, and when used in the context of a State or the Union, the entire electricity system within the territories thereof; (26) “electricity trader” means a person who has been granted a licence to undertake trading in electricity under section 12; (27) “franchisee” means a person authorised by a distribution licensee to distribute electricity on its behalf in a particular area within his area of supply; (28) “generating company” means any company or body corporate or association or body of individuals, whether incorporated or not, or artificial juridical person, which owns or operates or maintains a generating station; (29) “generate” means to produce electricity from a generating station for the purpose of giving supply to any premises or enabling a supply to be so given; (30) “generating station” or “station” means any station for generating electricity, including any building and plant with step-up transformer, switch-gear, switch yard, cables or other appurtenant equipment, if any, used for that purpose and the site thereof; a site intended to be used for a generating station, and any building used for housing the operating staff of a generating station, and where electricity is generated by water-power, includes penstocks, head and tail works, main and regulating reservoirs, dams and other hydraulic works, but does not in any case include any sub-station; (31) “Government company” shall have the meaning assigned to it in section 617 of the Companies Act, 1956 (1 of 1956); (32) “grid” means the high voltage backbone system of inter-connected transmission lines, sub-station and generating plants; (33) “Grid Code” means the Grid Code specified by the Central Commission under clause (h) of sub-section (1) of section 79; (34) “Grid Standards” means the Grid Standards specified under clause (d) of section 73 by the Authority; 11 ----- (35) “high voltage line” means an electric line or cable of a nominal voltage as may be specified by the Authority from time to time; (36) “inter-State transmission system” includes— (i) any system for the conveyance of electricity by means of main transmission line from the territory of one State to another State; (ii) the conveyance of electricity across the territory of an intervening State as well as conveyance within the State which is incidental to such inter-State transmission of electricity; (iii) the transmission of electricity within the territory of a State on a system built, owned, operated, maintained or controlled by a Central Transmission Utility; (37) “intra-State transmission system” means any system for transmission of electricity other than an inter-State transmission system; (38) “licence” means a licence granted under section 14; (39) “licensee” means a person who has been granted a licence under section 14; (40) “line” means any wire, cable, tube, pipe, insulator, conductor or other similar thing (including its casing or coating) which is designed or adapted for use in carrying electricity and includes any line which surrounds or supports, or is surrounded or supported by or is installed in close proximity to, or is supported, carried or suspended in association with, any such line; (41) “local authority” means any Nagar Panchayat, Municipal Council, municipal corporation, Panchayat constituted at the village, intermediate and district levels, body of port commissioners or other authority legally entitled to, or entrusted by the Union or any State Government with, the control or management of any area or local fund; (42) “main” means any electric supply-line through which electricity is, or is intended to be, supplied; (43) “Member” means the Member of the Appropriate Commission or Authority or Joint Commission, or the Appellate Tribunal, as the case may be, and includes the Chairperson of such Commission or Authority or Appellate Tribunal; (44) “National Electricity Plan” means the National Electricity Plan notified under sub-section (4) of section 3; (45) “National Load Despatch Centre” means the Centre established under sub-section (1) of section 26; (46) “notification” means notification published in the Official Gazette and the expression “notify” shall be construed accordingly; (47) “open access” means the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission; (48) “overhead line” means an electric line which is placed above the ground and in the open air but does not include live rails of a traction system; (49) “person” shall include any company or body corporate or association or body of individuals, whether incorporated or not, or artificial juridical person; 12 ----- (50) “power system” means all aspects of generation, transmission, distribution and supply of electricity and includes one or more of the following, namely:— (a) generating stations; (b) transmission or main transmission lines; (c) sub-stations; (d) tie-lines; (e) load despatch activities; (f) mains or distribution mains; (g) electric supply-lines; (h) overhead lines; (i) service lines; (j) works; (51) “premises” includes any land, building or structure; (52) “prescribed” means prescribed by rules made by the Appropriate Government under this Act; (53) “public lamp” means an electric lamp used for the lighting of any street; (54) “real time operation” means action to be taken at a given time at which information about the electricity system is made available to the concerned Load Despatch Centre; (55) “Regional Power Committee” means a committee established by resolution by the Central Government for a specified region for facilitating the integrated operation of the power systems in that region; (56) “Regional Load Despatch Centre” means the Centre established under sub-section (1) of section 27; (57) “regulations” means regulations made under this Act; (58) “repealed laws” means the Indian Electricity Act, 1910 (9 of 1910), the Electricity (Supply) Act, 1948 (54 of 1948) and the Electricity Regulatory Commissions Act, 1998 (14 of 1998) repealed by section 185; (59) “rules” means rules made under this Act; (60) “Schedule” means the Schedule to this Act; (61) “service-line” means any electric supply-line through which electricity is, or is intended to be, supplied— (a) to a single consumer either from a distributing main or immediately from the Distribution Licensee’s premises; or (b) from a distributing main to a group of consumers on the same premises or on contiguous premises supplied from the same point of the distributing main; (62) “specified” means specified by regulations made by the Appropriate Commission or the Authority, as the case may be, under this Act; (63) “stand alone system” means the electricity system set-up to generate power and distribute electricity in a specified area without connection to the grid; (64) “State Commission” means the State Electricity Regulatory Commission constituted under sub-section (1) of section 82 and includes a Joint Commission constituted under sub-section (1) of section 83; 13 ----- (65) “State Grid Code” means the State Grid Code specified under clause (h) of sub-section (1) of section 86; (66) “State Load Despatch Centre” means the centre established under sub-section (1) of section 31; (67) “State Transmission Utility” means the Board or the Government company specified as such by the State Government under sub-section (1) of section 39; (68) “street” includes any way, road, lane, square, court, alley, passage or open space, whether a thoroughfare or not, over which the public have a right of way and also the roadway and footway over any public bridge or causeway; (69) “sub-station” means a station for transforming or converting electricity for the transmission or distribution thereof and includes transformers, converters, switch-gears, capacitors, synchronous condensers, structures, cable and other appurtenant equipment and any buildings used for that purpose and the site thereof; (70) “supply”, in relation to electricity, means the sale of electricity to a licensee or consumer; (71) “trading” means purchase of electricity for resale thereof and the expression “trade” shall be construed accordingly; (72) “transmission lines” means all high pressure cables and overhead lines (not being an essential part of the distribution system of a licensee) transmitting electricity from a generating station to another generating station or a sub-station, together with any step-up and step-down transformers, switch-gear and other works necessary to and used for the control of such cables or overhead lines, and such buildings or part thereof as may be required to accommodate such transformers, switch-gear and other works; (73) “transmission licensee” means a licensee authorised to establish or operate transmission lines; (74) “transmit” means conveyance of electricity by means of transmission lines and the expression “transmission” shall be construed accordingly; (75) “utility” means the electric lines or electrical plant, and includes all lands, buildings, works and materials attached thereto belonging to any person acting as a generating company or licensee under the provisions of this Act; (76) “wheeling” means the operation whereby the distribution system and associated facilities of a transmission licensee or distribution licensee, as the case may be, are used by another person for the conveyance of electricity on payment of charges to be determined under section 62; (77) “works” includes electric line, and any building, plant, machinery, apparatus and any other thing of whatever description required to transmit, distribute or supply electricity to the public and to carry into effect the objects of a licence or sanction granted under this Act or any other law for the time being in force. PART II NATIONAL ELECTRICITY POLICY AND PLAN **3. National Electricity Policy and Plan.—(1) The Central Government shall, from time to time,** prepare the National Electricity Policy and tariff policy, in consultation with the State Governments and the Authority for development of the power system based on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, hydro and renewable sources of energy. (2) The Central Government shall publish National Electricity Policy and tariff policy from time to time. 14 ----- (3) The Central Government may, from time to time, in consultation with the State Governments and the Authority, review or revise the National Electricity Policy and tariff policy referred to in sub-section (1). (4) The Authority shall prepare a National Electricity Plan in accordance with the National Electricity Policy and notify such plan once in five years: Provided that the Authority while preparing the National Electricity Plan shall publish the draft National Electricity Plan and invite suggestions and objections thereon from licensees, generating companies and the public within such time as may be prescribed: Provided further that the Authority shall— (a) notify the plan after obtaining the approval of the Central Government; (b) revise the plan incorporating therein the directions, if any, given by the Central Government while granting approval under clause (a). (5) The Authority may review or revise the National Electricity Plan in accordance with the National Electricity Policy. **4. National policy on stand alone systems for rural areas and non-conventional energy** **systems.—The Central Government shall, after consultation with the State Governments, prepare and** notify a national policy, permitting stand alone systems (including those based on renewable sources of energy and other non-conventional sources of energy) for rural areas. **5. National policy on electrification and local distribution in rural areas.—The Central** Government shall also formulate a national policy, in consultation with the State Governments and the State Commissions, for rural electrification and for bulk purchase of power and management of local distribution in rural areas through Panchayat Institutions, users’ associations, co-operative societies, non-Governmental organisations or franchisees. 1[6. Joint responsibility of State Government and Central Government in rural **electrification.—The concerned State Government and the Central Government shall jointly endeavour** to provide access to electricity to all areas including villages and hamlets through rural electricity infrastructure and electrification of households.] PART III GENERATION OF ELECTRICITY **7. Generating company and requirement for setting up of generating station.—Any generating** company may establish, operate and maintain a generating station without obtaining a licence under this Act if it complies with the technical standards relating to connectivity with the grid referred to in clause (b) of section 73. **8. Hydro-electric generation.—(1) Notwithstanding anything contained in section 7, any generating** company intending to set up a hydro-generating station shall prepare and submit to the Authority for its concurrence, a scheme estimated to involve a capital expenditure exceeding such sum, as may be fixed by the Central Government, from time to time, by notification. (2) The Authority shall, before concurring in any scheme submitted to it under sub-section (1) have particular regard to, whether or not in its opinion,— (a) the proposed river-works will prejudice the prospects for the best ultimate development of the river or its tributaries for power generation, consistent with the requirements of drinking water, 1. Subs. by Act 26 of 2007, s. 2, for section 6 (w.e.f. 15-6-2007). 15 ----- irrigation, navigation, flood-control, or other public purposes, and for this purpose the Authority shall satisfy itself, after consultation with the State Government, the Central Government, or such other agencies as it may deem appropriate, that an adequate study has been made of the optimum location of dams and other river-works; (b) the proposed scheme meets the norms regarding dam design and safety. (3) Where a multi-purpose scheme for the development of any river in any region is in operation, the State Government and the generating company shall co-ordinate their activities with the activities of the persons responsible for such scheme in so far as they are inter-related. **9. Captive generation.—(1) Notwithstanding anything contained in this Act, a person may construct,** maintain or operate a captive generating plant and dedicated transmission lines: Provided that the supply of electricity from the captive generating plant through the grid shall be regulated in the same manner as the generating station of a generating company: 1[Provided further that no licence shall be required under this Act for supply of electricity generated from a captive generating plant to any licensee in accordance with the provisions of this Act and the rules and regulations made thereunder and to any consumer subject to the regulations made under sub-section (2) of section 42.] (2) Every person, who has constructed a captive generating plant and maintains and operates such plant, shall have the right to open access for the purposes of carrying electricity from his captive generating plant to the destination of his use: Provided that such open access shall be subject to availability of adequate transmission facility and such availability of transmission facility shall be determined by the Central Transmission Utility or the State Transmission Utility, as the case may be: Provided further that any dispute regarding the availability of transmission facility shall be adjudicated upon by the Appropriate Commission. **10. Duties of generating companies.—(1) Subject to the provisions of this Act, the duties of a** generating company shall be to establish, operate and maintain generating stations, tie-lines, sub-stations and dedicated transmission lines connected therewith in accordance with the provisions of this Act or the rules or regulations made thereunder. (2) A generating company may supply electricity to any licensee in accordance with this Act and the rules and regulations made thereunder and may, subject to the regulations made under sub-section (2) of section 42, supply electricity to any consumer. (3) Every generating company shall— (a) submit technical details regarding its generating stations to the Appropriate Commission and the Authority; (b) co-ordinate with the Central Transmission Utility or the State Transmission Utility, as the case may be, for transmission of the electricity generated by it. **11. Directions to generating companies.—(1) The Appropriate Government may specify that a** generating company shall, in extraordinary circumstances operate and maintain any generating station in accordance with the directions of that Government. 1. Ins. by Act 26 of 2007, s. 3 (w.e.f. 15-6-2007). 16 ----- _Explanation. —For the purposes of this section, the expression “extraordinary circumstances” means_ circumstances arising out of threat to security of the State, public order or a natural calamity or such other circumstances arising in the public interest. (2) The Appropriate Commission may offset the adverse financial impact of the directions referred to in sub-section (1) on any generating company in such manner as it considers appropriate. PART IV LICENSING **12. Authorised persons to transmit, supply, etc., electricity.—No person shall—** (a) transmit electricity; or (b) distribute electricity; or (c) undertake trading in electricity, unless he is authorised to do so by a licence issued under section 14, or is exempt under section 13. **13. Power to exempt.—The Appropriate Commission may, on the recommendations of the** Appropriate Government, in accordance with the national policy formulated under section 5 and in the public interest, direct, by notification that subject to such conditions and restrictions, if any, and for such period or periods, as may be specified in the notification, the provisions of section 12 shall not apply to any local authority, Panchayat Institution, users’ association, co-operative societies, non-governmental organisations, or franchisees. **14. Grant of licence.—The Appropriate Commission may, on an application made to it under section** 15, grant a licence to any person— (a) to transmit electricity as a transmission licensee; or (b) to distribute electricity as a distribution licensee; or (c) to undertake trading in electricity as an electricity trader, in any area as may be specified in the licence: Provided that any person engaged in the business of transmission or supply of electricity under the provisions of the repealed laws or any Act specified in the Schedule on or before the appointed date shall be deemed to be a licensee under this Act for such period as may be stipulated in the licence, clearance or approval granted to him under the repealed laws or such Act specified in the Schedule, and the provisions of the repealed laws or such Act specified in the Schedule in respect of such licence shall apply for a period of one year from the date of commencement of this Act or such earlier period as may be specified, at the request of the licensee, by the Appropriate Commission and thereafter the provisions of this Act shall apply to such business: Provided further that the Central Transmission Utility or the State Transmission Utility shall be deemed to be a transmission licensee under this Act: Provided also that in case an Appropriate Government transmits electricity or distributes electricity or undertakes trading in electricity, whether before or after the commencement of this Act, such Government shall be deemed to be a licensee under this Act, but shall not be required to obtain a licence under this Act: Provided also that the Damodar Valley Corporation, established under sub-section (1) of section 3 of the Damodar Valley Corporation Act, 1948 (14 of 1948), shall be deemed to be a licensee under this Act but shall not be required to obtain a licence under this Act and the provisions of the Damodar Valley 17 ----- Corporation Act, 1948 in so far as they are not inconsistent with the provisions of this Act, shall continue to apply to that Corporation: Provided also that the Government company or the company referred to in sub-section (2) of section 131 of this Act and the company or companies created in pursuance of the Acts specified in the Schedule, shall be deemed to be a licensee under this Act: Provided also that the Appropriate Commission may grant a licence to two or more persons for distribution of electricity through their own distribution system within the same area, subject to the conditions that the applicant for grant of licence within the same area shall, without prejudice to the other conditions or requirements under this Act, comply with the additional requirements [1][relating to the capital adequacy, creditworthiness, or code of conduct] as may be prescribed by the Central Government, and no such applicant, who complies with all the requirements for grant of licence, shall be refused grant of licence on the ground that there already exists a licensee in the same area for the same purpose: Provided also that in a case where a distribution licensee proposes to undertake distribution of electricity for a specified area within his area of supply through another person, that person shall not be required to obtain any separate licence from the concerned State Commission and such distribution licensee shall be responsible for distribution of electricity in his area of supply: Provided also that where a person intends to generate and distribute electricity in a rural area to be notified by the State Government, such person shall not require any licence for such generation and distribution of electricity, but he shall comply with the measures which may be specified by the Authority under section 53: Provided also that a distribution licensee shall not require a licence to undertake trading in electricity. **15. Procedure for grant of licence.— (1) Every application under section 14 shall be made in such** form and in such manner as may be specified by the Appropriate Commission and shall be accompanied by such fee as may be prescribed. (2) Any person who has made an application for grant of a licence shall, within seven days after making such application, publish a notice of his application with such particulars and in such manner as may be specified and a licence shall not be granted— (i) until the objections, if any, received by the Appropriate Commission in response to publication of the application have been considered by it: Provided that no objection shall be so considered unless it is received before the expiration of thirty days from the date of the publication of the notice as aforesaid; (ii) until, in the case of an application for a licence for an area including the whole or any part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Government for defence purposes, the Appropriate Commission has ascertained that there is no objection to the grant of the licence on the part of the Central Government. (3) A person intending to act as a transmission licensee shall, immediately on making the application, forward a copy of such application to the Central Transmission Utility or the State Transmission Utility, as the case may be. (4) The Central Transmission Utility or the State Transmission Utility, as the case may be, shall, within thirty days after the receipt of the copy of the application referred to in sub-section (3), send its recommendations, if any, to the Appropriate Commission: 1. Subs. by Act 57 of 2003, s. 2, for “(including the capital adequacy, creditworthiness, or code of conduct)” (w.e.f. 27-1-2004). 18 ----- Provided that such recommendations shall not be binding on the Commission. (5) Before granting a licence under section 14, the Appropriate Commission shall— (a) publish a notice in two such daily newspapers, as that Commission may consider necessary, stating the name and address of the person to whom it proposes to issue the licence; (b) consider all suggestions or objections and the recommendations, if any, of the Central Transmission Utility or the State Transmission Utility, as the case may be. (6) Where a person makes an application under sub-section (1) of section 14 to act as a licensee, the Appropriate Commission shall, as far as practicable, within ninety days after receipt of such application, — (a) issue a licence subject to the provisions of this Act and the rules and regulations made thereunder; or (b) reject the application for reasons to be recorded in writing if such application does not conform to the provisions of this Act or the rules and regulations made thereunder or the provisions of any other law for the time being in force: Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard. (7) The Appropriate Commission shall, immediately after issue of a licence, forward a copy of the licence to the Appropriate Government, Authority, local authority, and to such other person as the Appropriate Commission considers necessary. (8) A licence shall continue to be in force for a period of twenty-five years unless such licence is revoked. **16. Conditions of licence.—The Appropriate Commission may specify any general or specific** conditions which shall apply either to a licensee or class of licensees and such conditions shall be deemed to be conditions of such licence: Provided that the Appropriate Commission shall, within one year from the appointed date, specify any general or specific conditions of licence applicable to the licensees referred to in the first, second, third, fourth and fifth provisos to section 14 after the expiry of one year from the commencement of this Act. **17. Licensee not to do certain things.—(1) No licensee shall, without prior approval of the** Appropriate Commission,— (a) undertake any transaction to acquire by purchase or takeover or otherwise, the utility of any other licensee; or (b) merge his utility with the utility of any other licensee: Provided that nothing contained in this sub-section shall apply if the utility of the licensee is situate in a State other than the State in which the utility referred to in clause (a) or clause (b) is situate. (2) Every licensee shall, before obtaining the approval under sub-section (1), give not less than one month’s notice to every other licensee who transmits or distributes, electricity in the area of such licensee who applies for such approval. (3) No licensee shall at any time assign his licence or transfer his utility, or any part thereof, by sale, lease, exchange or otherwise without the prior approval of the Appropriate Commission. (4) Any agreement, relating to any transaction specified in sub-section (1) or sub-section (3), unless made with the prior approval of the Appropriate Commission, shall be void. 19 ----- **18. Amendment of licence.—(1) Where in its opinion the public interest so permits, the Appropriate** Commission, may, on the application of the licensee or otherwise, make such alterations and amendments in the terms and conditions of his licence as it thinks fit: Provided that no such alterations or amendments shall be made except with the consent of the licensee unless such consent has, in the opinion of the Appropriate Commission, been unreasonably withheld. (2) Before any alterations or amendments in the licence are made under this section, the following provisions shall have effect, namely:— (a) where the licensee has made an application under sub-section (1) proposing any alteration or modifications in his licence, the licensee shall publish a notice of such application with such particulars and in such manner as may be specified; (b) in the case of an application proposing alterations or modifications in the area of supply comprising the whole or any part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or any building or place in the occupation of the Government for defence purposes, the Appropriate Commission shall not make any alterations or modifications except with the consent of the Central Government; (c) where any alterations or modifications in a licence are proposed to be made otherwise than on the application of the licensee, the Appropriate Commission shall publish the proposed alterations or modifications with such particulars and in such manner as may be specified; (d) the Appropriate Commission shall not make any alterations or modifications unless all suggestions or objections received within thirty days from the date of the first publication of the notice have been considered. **19. Revocation of licence.— (1)** If the Appropriate Commission, after making an enquiry, is satisfied that public interest so requires, it may revoke a licence in any of the following cases, namely:— (a) where the licensee, in the opinion of the Appropriate Commission, makes wilful and prolonged default in doing anything required of him by or under this Act or the rules or regulations made thereunder; (b) where the licensee breaks any of the terms or conditions of his licence the breach of which is expressly declared by such licence to render it liable to revocation; (c) where the licensee fails, within the period fixed in this behalf by his licence, or any longer period which the Appropriate Commission may have granted therefor— (i) to show, to the satisfaction of the Appropriate Commission, that he is in a position fully and efficiently to discharge the duties and obligations imposed on him by his licence; or (ii) to make the deposit or furnish the security, or pay the fees or other charges required by his licence; (d) where in the opinion of the Appropriate Commission the financial position of the licensee is such that he is unable fully and efficiently to discharge the duties and obligations imposed on him by his licence. (2) Where in its opinion the public interest so requires, the Appropriate Commission may, on application, or with the consent of the licensee, revoke his licence as to the whole or any part of his area of distribution or transmission or trading upon such terms and conditions as it thinks fit. (3) No licence shall be revoked under sub-section (1) unless the Appropriate Commission has given to the licensee not less than three months’ notice, in writing, stating the grounds on which it is proposed 20 ----- to revoke the licence, and has considered any cause shown by the licensee within the period of that notice, against the proposed revocation. (4) The Appropriate Commission may, instead of revoking a licence under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose, and any further terms and conditions so imposed shall be binding upon and be observed by the licensee and shall be of like force and effect as if they were contained in the licence. (5) Where the Commission revokes a licence under this section, it shall serve a notice of revocation upon the licensee and fix a date on which the revocation shall take effect. (6) Where the Appropriate Commission has given notice for revocation of licence under sub-section (5), without prejudice to any penalty which may be imposed or prosecution proceeding which may be initiated under this Act, the licensee may, after prior approval of that Commission, sell his utility to any person who is found eligible by that Commission for grant of licence. **20. Sale of utilities of licensees.—(1) Where the Appropriate Commission revokes under section 19** the licence of any licensee, the following provisions shall apply, namely:— (a) the Appropriate Commission shall invite applications for acquiring the utility of the licensee whose licence has been revoked and determine which of such applications should be accepted, primarily on the basis of the highest and best price offered for the utility; (b) the Appropriate Commission may, by notice in writing, require the licensee to sell his utility and thereupon the licensee shall sell his utility to the person (hereafter in this section referred to as the “purchaser”) whose application has been accepted by that Commission; (c) all the rights, duties, obligations and liabilities of the licensee, on and from the date of revocation of licence or on and from the date, if earlier, on which the utility of the licensee is sold to a purchaser, shall absolutely cease except for any liabilities which have accrued prior to that date; (d) the Appropriate Commission may make such interim arrangements in regard to the operation of the utility as may be considered appropriate including the appointment of Administrators; (e) The Administrator appointed under clause (d) shall exercise such powers and discharge such functions as the Appropriate Commission may direct. (2) Where a utility is sold under sub-section (1), the purchaser shall pay to the licensee the purchase price of the utility in such manner as may be agreed upon. (3) Where the Appropriate Commission issues any notice under sub-section (1) requiring the licensee to sell the utility, it may, by such notice, require the licensee to deliver the utility, and thereupon the licensee shall deliver on a date specified in the notice, the utility to the designated purchaser on payment of the purchase price thereof. (4) Where the licensee has delivered the utility referred to in sub-section (3) to the purchaser but its sale has not been completed by the date fixed in the notice issued under that sub-section, the Appropriate Commission may, if it deems fit, permit the intending purchaser to operate and maintain the utility system pending the completion of the sale. **21. Vesting of utility in purchaser.—Where a utility is sold under section 20 or section 24, then,** upon completion of the sale or on the date on which the utility is delivered to the intending purchaser, as the case may be, whichever is earlier— (a) the utility shall vest in the purchaser or the intending purchaser, as the case may be, free from any debt, mortgage or similar obligation of the licensee or attaching to the utility: Provided that any such debt, mortgage or similar obligation shall attach to the purchase money in substitution for the utility; and 21 ----- (b) the rights, powers, authorities, duties and obligations of the licensee under his licence shall stand transferred to the purchaser and such purchaser shall be deemed to be the licensee. **22. Provisions where no purchase takes place.—(1) If the utility is not sold in the manner provided** under section 20 or section 24, the Appropriate Commission may, to protect the interest of consumers or in the public interest, issue such directions or formulate such scheme as it may deem necessary for operation of the utility. (2) Where no directions are issued or scheme is formulated by the Appropriate Commission under sub-section (1), the licensee referred to in section 20 or section 24 may dispose of the utility in such manner as it may deem fit: Provided that, if the licensee does not dispose of the utility, within a period of six months from the date of revocation, under section 20 or section 24, the Appropriate Commission may cause the works of the licensee in, under, over, along, or across any street or public land to be removed and every such street or public land to be reinstated, and recover the cost of such removal and reinstatement from the licensee. **23. Directions to licensees.—If the Appropriate Commission is of the opinion that it is necessary or** expedient so to do for maintaining the efficient supply, securing the equitable distribution of electricity and promoting competition, it may, by order, provide for regulating supply, distribution, consumption or use thereof. **24. Suspension of distribution licence and sale of utility.—(1) If at any time the Appropriate** Commission is of the opinion that a distribution licensee— (a) has persistently failed to maintain uninterrupted supply of electricity conforming to standards regarding quality of electricity to the consumers; or (b) is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or (c) has persistently defaulted in complying with any direction given by the Appropriate Commission under this Act; or (d) has broken the terms and conditions of licence, and circumstances exist which render it necessary for it in public interest so to do, the Appropriate Commission may, for reasons to be recorded in writing, suspend, for a period not exceeding one year, the licence of the distribution licensee and appoint an Administrator to discharge the functions of the distribution licensee in accordance with the terms and conditions of the licence: Provided that before suspending a licence under this section, the Appropriate Commission shall give a reasonable opportunity to the distribution licensee to make representations against the proposed suspension of licence and shall consider the representations, if any, of the distribution licensee. (2) Upon suspension of licence under sub-section (1) the utilities of the distribution licensee shall vest in the Administrator for a period not exceeding one year or up to the date on which such utility is sold in accordance with the provisions contained in section 20, whichever is later. (3) The Appropriate Commission shall, within one year of appointment of the Administrator under sub-section (1), either revoke the licence in accordance with the provisions contained in section 19 or revoke suspension of the licence and restore the utility to the distribution licensee whose licence had been suspended, as the case may be. (4) In a case where the Appropriate Commission revokes the licence under sub-section (3), the utility of the distribution licensee shall be sold within a period of one year from the date of revocation of the licence in accordance with the provisions of section 20 and the price after deducting the administrative and other expenses on sale of utilities be remitted to the distribution licensee. 22 ----- PART V TRANSMISSION OF ELECTRICITY _Inter-State transmission_ **25. Inter-State, regional and inter-regional transmission.—For the purposes of this Part, the** Central Government may, make region-wise demarcation of the country, and, from time to time, make such modifications therein as it may consider necessary for the efficient, economical and integrated transmission and supply of electricity, and in particular to facilitate voluntary inter-connections and co-ordination of facilities for the inter-State, regional and inter-regional generation and transmission of electricity. **26. National Load Despatch Centre.—(1) The Central Government may establish a Centre at the** national level, to be known as the National Load Despatch Centre for optimum scheduling and despatch of electricity among the Regional Load Despatch Centres. (2) The constitution and functions of the National Load Despatch Centre shall be such as may be prescribed by the Central Government: Provided that the National Load Despatch Centre shall not engage in the business of trading in electricity. (3) The National Load Despatch Centre shall be operated by a Government company or any authority or corporation established or constituted by or under any Central Act, as may be notified by the Central Government. **27. Constitution of Regional Load Despatch Centre.—(1) The Central Government shall establish** a Centre for each region to be known as the Regional Load Despatch Centre having territorial jurisdiction as determined by the Central Government in accordance with section 25 for the purposes of exercising the powers and discharging the functions under this Part. (2) The Regional Load Despatch Centre shall be operated by a Government company or any authority or corporation established or constituted by or under any Central Act, as may be notified by the Central Government: Provided that until a Government company or authority or corporation referred to in this sub-section is notified by the Central Government, the Central Transmission Utility shall operate the Regional Load Despatch Centre: Provided further that no Regional Load Despatch Centre shall engage in the business of generation of electricity or trading in electricity. **28. Functions of Regional Load Despatch Centre.—(1) The Regional Load Despatch Centre shall** be the apex body to ensure integrated operation of the power system in the concerned region. (2) The Regional Load Despatch Centre shall comply with such principles, guidelines and methodologies in respect of wheeling and optimum scheduling and despatch of electricity as the Central Commission may specify in the Grid Code. (3) The Regional Load Despatch Centre shall— (a) be responsible for optimum scheduling and despatch of electricity within the region, in accordance with the contracts entered into with the licensees or the generating companies operating in the region; (b) monitor grid operations; (c) keep accounts of quantity of electricity transmitted through the regional grid; 23 ----- (d) exercise supervision and control over the inter-State transmission system; and (e) be responsible for carrying out real time operations for grid control and despatch of electricity within the region through secure and economic operation of the regional grid in accordance with the Grid Standards and the Grid Code. (4) The Regional Load Despatch Centre may levy and collect such fee and charges from the generating companies or licensees engaged in inter-State transmission of electricity as may be specified by the Central Commission. **29. Compliance of directions.—(1) The Regional Load Despatch Centre may give such directions** and exercise such supervision and control as may be required for ensuring stability of grid operations and for achieving the maximum economy and efficiency in the operation of the power system in the region under its control. (2) Every licensee, generating company, generating station, sub-station and any other person connected with the operation of the power system shall comply with the directions issued by the Regional Load Despatch Centres under sub-section (1). (3) All directions issued by the Regional Load Despatch Centres to any transmission licensee of State transmission lines or any other licensee of the State or generating company (other than those connected to inter-State transmission system) or sub-station in the State shall be issued through the State Load Despatch Centre and the State Load Despatch Centres shall ensure that such directions are duly complied with by the licensee or generating company or sub-station. (4) The Regional Power Committee in the region may, from time to time, agree on matters concerning the stability and smooth operation of the integrated grid and economy and efficiency in the operation of the power system in that region. (5) If any dispute arises with reference to the quality of electricity or safe, secure and integrated operation of the regional grid or in relation to any direction given under sub-section (1), it shall be referred to the Central Commission for decision: Provided that pending the decision of the Central Commission, the directions of the Regional Load Despatch Centre shall be complied with by the State Load Despatch Centre or the licensee or the generating company, as the case may be. (6) If any licensee, generating company or any other person fails to comply with the directions issued under sub-section (2) or sub-section (3), he shall be liable to a penalty not exceeding rupees fifteen lacs. _Intra-State transmission_ **30. Transmission within a State.—The State Commission shall facilitate and promote transmission,** wheeling and inter-connection arrangements within its territorial jurisdiction for the transmission and supply of electricity by economical and efficient utilisation of the electricity. **31. Constitution of State Load Despatch Centres.—(1) The State Government shall establish a** Centre to be known as the State Load Despatch Centre for the purposes of exercising the powers and discharging the functions under this Part. (2) The State Load Despatch Centre shall be operated by a Government company or any authority or corporation established or constituted by or under any State Act, as may be notified by the State Government: Provided that until a Government company or any authority or corporation is notified by the State Government, the State Transmission Utility shall operate the State Load Despatch Centre: Provided further that no State Load Despatch Centre shall engage in the business of trading in electricity. 24 ----- **32. Functions of State Load Despatch Centres.—(1) The State Load Despatch Centre shall be the** apex body to ensure integrated operation of the power system in a State. (2) The State Load Despatch Centre shall— (a) be responsible for optimum scheduling and despatch of electricity within a State, in accordance with the contracts entered into with the licensees or the generating companies operating in that State; (b) monitor grid operations; (c) keep accounts of the quantity of electricity transmitted through the State grid; (d) exercise supervision and control over the intra-State transmission system; and (e) be responsible for carrying out real time operations for grid control and despatch of electricity within the State through secure and economic operation of the State grid in accordance with the Grid Standards and the State Grid Code. (3) The State Load Despatch Centre may levy and collect such fee and charges from the generating companies and licensees engaged in intra-State transmission of electricity as may be specified by the State Commission. **33. Compliance of directions.—(1) The State Load Despatch Centre in a State may give such** directions and exercise such supervision and control as may be required for ensuring the integrated grid operations and for achieving the maximum economy and efficiency in the operation of power system in that State. (2) Every licensee, generating company, generating station, sub-station and any other person connected with the operation of the power system shall comply with the directions issued by the State Load Depatch Centre under sub-section (1). (3) The State Load Despatch Centre shall comply with the directions of the Regional Load Despatch Centre. (4) If any dispute arises with reference to the quality of electricity or safe, secure and integrated operation of the State grid or in relation to any direction given under sub-section (1), it shall be referred to the State Commission for decision: Provided that pending the decision of the State Commission, the directions of the State Load Despatch Centre shall be complied with by the licensee or generating company. (5) If any licensee, generating company or any other person fails to comply with the directions issued under sub-section (1), he shall be liable to a penalty not exceeding rupees five lacs. _Other provisions relating to transmission_ **34. Grid Standards.—Every transmission licensee shall comply with such technical standards, of** operation and maintenance of transmission lines, in accordance with the Grid Standards, as may be specified by the Authority. **35. Intervening transmission facilities.—The Appropriate Commission may, on an application by** any licensee, by order require any other licensee owning or operating intervening transmission facilities to provide the use of such facilities to the extent of surplus capacity available with such licensee: Provided that any dispute, regarding the extent of surplus capacity available with the licensee, shall be adjudicated upon by the Appropriate Commission. 25 ----- **36. Charges for intervening transmission facilities.—(1) Every licensee shall, on an order made** under section 35, provide his intervening transmission facilities at rates, charges and terms and conditions as may be mutually agreed upon: Provided that the Appropriate Commission may specify rates, charges and terms and conditions if these cannot be mutually agreed upon by the licensees. (2) The rates, charges and terms and conditions referred to in sub-section (1) shall be fair and reasonable, and may be allocated in proportion to the use of such facilities. _Explanation.—For the purposes of sections 35 and 36, the expression “intervening transmission_ facilities” means the electric lines owned or operated by a licensee where such electric lines can be utilised for transmitting electricity for and on behalf of another licensee at his request and on payment of a tariff or charge. **37. Directions by Appropriate Government.—The Appropriate Government may issue directions** to the Regional Load Despatch Centres or State Load Despatch Centres, as the case may be, to take such measures as may be necessary for maintaining smooth and stable transmission and supply of electricity to any region or State. **38. Central Transmission Utility and functions.—(1) The Central Government may notify any** Government company as the Central Transmission Utility: Provided that the Central Transmission Utility shall not engage in the business of generation of electricity or trading in electricity: Provided further that the Central Government may transfer, and vest any property, interest in property, rights and liabilities connected with, and personnel involved in transmission of electricity of such Central Transmission Utility, to a company or companies to be incorporated under the Companies Act, 1956 (1 of 1956) to function as a transmission licensee, through a transfer scheme to be effected in the manner specified under Part XIII and such company or companies shall be deemed to be transmission licensees under this Act. (2) The functions of the Central Transmission Utility shall be— (a) to undertake transmission of electricity through inter-State transmission system; (b) to discharge all functions of planning and co-ordination relating to inter-State transmission system with– (i) State Transmission Utilities; (ii) Central Government; (iii) State Governments; (iv) generating companies; (v) Regional Power Committees; (vi) Authority; (vii) licensees; (viii) any other person notified by the Central Government in this behalf; (c) to ensure development of an efficient, co-ordinated and economical system of inter-State transmission lines for smooth flow of electricity from generating stations to the load centres; (d) to provide non-discriminatory open access to its transmission system for use by— (i) any licensee or generating company on payment of the transmission charges; or 26 ----- (ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the Central Commission: Provided that such surcharge shall be utilised for the purpose of meeting the requirement of current level cross-subsidy: Provided further that such surcharge and cross subsidies shall be progressively reduced [1]*** in the manner as may be specified by the Central Commission: 2* - - - Provided also that the manner of payment and utilisation of the surcharge shall be specified by the Central Commission: Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use. **39. State Transmission Utility and functions.—(1) The State Government may notify the Board or** a Government company as the State Transmission Utility: Provided that the State Transmission Utility shall not engage in the business of trading in electricity: Provided further that the State Government may transfer, and vest any property, interest in property, rights and liabilities connected with, and personnel involved in transmission of electricity, of such State Transmission Utility, to a company or companies to be incorporated under the Companies Act, 1956 (1 of 1956) to function as transmission licensee through a transfer scheme to be effected in the manner specified under Part XIII and such company or companies shall be deemed to be transmission licensees under this Act. (2) The functions of the State Transmission Utility shall be— (a) to undertake transmission of electricity through intra-State transmission system; (b) to discharge all functions of planning and co-ordination relating to intra-State transmission system with— (i) Central Transmission Utility; (ii) State Governments; (iii) generating companies; (iv) Regional Power Committees; (v) Authority; (vi) licensees; (vii) any other person notified by the State Government in this behalf; (c) to ensure development of an efficient, co-ordinated and economical system of intra-State transmission lines for smooth flow of electricity from a generating station to the load centers; (d) to provide non-discriminatory open access to its transmission system for use by— (i) any licensee or generating company on payment of the transmission charges; or 1. The words “and eliminated” omitted by Act 26 of 2007, s. 4 (w.e.f. 15-6-2007). 2. The third proviso omitted by s. 4, ibid. (w.e.f. 15-6-2007). 27 ----- (ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the State Commission: Provided that such surcharge shall be utilised for the purpose of meeting the requirement of current level cross-subsidy: Provided further that such surcharge and cross subsidies shall be progressively reduced [1]*** in the manner as may be specified by the State Commission: 2* - - - Provided also that the manner of payment and utilisation of the surcharge shall be specified by the State Commission: Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use. **40. Duties of transmission licensees.—It shall be the duty of a transmission licensee–** (a) to build, maintain and operate an efficient, co-ordinated and economical inter-State transmission system or intra-State transmission system, as the case may be; (b) to comply with the directions of the Regional Load Despatch Centre and the State Load Despatch Centre as the case may be; (c) to provide non-discriminatory open access to its transmission system for use by— (i) any licensee or generating company on payment of the transmission charges; or (ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the State Commission: Provided that such surcharge shall be utilised for the purpose of meeting the requirement of current level cross-subsidy: Provided further that such surcharge and cross subsidies shall be progressively reduced [3]*** in the manner as may be specified by the Appropriate Commission: 1. The words “and eliminated” omitted by Act 26 of 2007, s. 5 (w.e.f. 15-6-2007). 2. The third proviso omitted by s. 5, ibid. (w.e.f. 15-6-2007). 3. The words “and eliminated” omitted by s. 6, ibid. (w.e.f. 15-6-2007). 28 ----- 1* - - - Provided also that the manner of payment and utilisation of the surcharge shall be specified by the Appropriate Commission: Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use. **41. Other business of transmission licensee.—A transmission licensee may, with prior intimation to** the Appropriate Commission, engage in any business for optimum utilisation of its assets: Provided that a proportion of the revenues derived from such business shall, as may be specified by the Appropriate Commission, be utilised for reducing its charges for transmission and wheeling: Provided further that the transmission licensee shall maintain separate accounts for each such business undertaking to ensure that transmission business neither subsidises in any way such business undertaking nor encumbers its transmission assets in any way to support such business: Provided also that no transmission licensee shall enter into any contract or otherwise engage in the business of trading in electricity. PART VI DISTRIBUTION OF ELECTRICITY _Provisions with respect to distribution licensees_ **42. Duties of distribution licensee and open access.—(1) It shall be the duty of a distribution** licensee to develop and maintain an efficient, co-ordinated and economical distribution system in his area of supply and to supply electricity in accordance with the provisions contained in this Act. (2) The State Commission shall introduce open access in such phases and subject to such conditions, (including the cross subsidies, and other operational constraints) as may be specified within one year of the appointed date by it and in specifying the extent of open access in successive phases and in determining the charges for wheeling, it shall have due regard to all relevant factors including such cross subsidies, and other operational constraints: Provided that [2][such open access shall be allowed on payment of a surcharge] in addition to the charges for wheeling as may be determined by the State Commission: Provided further that such surcharge shall be utilised to meet the requirements of current level of cross subsidy within the area of supply of the distribution licensee: Provided also that such surcharge and cross subsidies shall be progressively reduced [3]*** in the manner as may be specified by the State Commission: Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use: 1. The Third proviso omitted by Act 26 of 2007, s. 6 (w.e.f. 15-6-2007). 2. Subs. by s.7, ibid., for “such open access may be allowed before the cross subsidies are eliminated on payment of a surcharge” (w.e.f. 15-6-2007). 3. The words “and eliminated” omitted by s. 7, ibid. (w.e.f. 15-6-2007). 29 ----- 1[Provided also that the State Commission shall, not later than five years from the date of commencement of the Electricity (Amendment) Act, 2003 (57 of 2003), by regulations, provide such open access to all consumers who require a supply of electricity where the maximum power to be made available at any time exceeds one megawatt.] (3) Where any person, whose premises are situated within the area of supply of a distribution licensee, (not being a local authority engaged in the business of distribution of electricity before the appointed date) requires a supply of electricity from a generating company or any licensee other than such distribution licensee, such person may, by notice, require the distribution licensee for wheeling such electricity in accordance with regulations made by the State Commission and the duties of the distribution licensee with respect to such supply shall be of a common carrier providing non-discriminatory open access. (4) Where the State Commission permits a consumer or class of consumers to receive supply of electricity from a person other than the distribution licensee of his area of supply, such consumer shall be liable to pay an additional surcharge on the charges of wheeling, as may be specified by the State Commission, to meet the fixed cost of such distribution licensee arising out of his obligation to supply. (5) Every distribution licensee shall, within six months from the appointed date or date of grant of licence, whichever is earlier, establish a forum for redressal of grievances of the consumers in accordance with the guidelines as may be specified by the State Commission. (6) Any consumer, who is aggrieved by non-redressal of his grievances under sub-section (5), may make a representation for the redressal of his grievance to an authority to be known as Ombudsman to be appointed or designated by the State Commission. (7) The Ombudsman shall settle the grievance of the consumer within such time and in such manner as may be specified by the State Commission. (8) The provisions of sub-sections (5), (6) and (7) shall be without prejudice to right which the consumer may have apart from the rights conferred upon him by those sub-sections. **43. Duty to supply on request.—(1)** [2][Save as otherwise provided in this Act, every distribution] licensee, shall, on an application by the owner or occupier of any premises, give supply of electricity to such premises, within one month after receipt of the application requiring such supply: Provided that where such supply requires extension of distribution mains, or commissioning of new sub-stations, the distribution licensee shall supply the electricity to such premises immediately after such extension or commissioning or within such period as may be specified by the Appropriate Commission: Provided further that in case of a village or hamlet or area wherein no provision for supply of electricity exists, the Appropriate Commission may extend the said period as it may consider necessary for electrification of such village or hamlet or area. 3[Explanation.—For the purposes of this sub-section, “application” means the application complete in all respects in the appropriate form, as required by the distribution licensee, along with documents showing payment of necessary charges and other compliances.] 1. Ins. by Act 57 of 2003, s. 3 (w.e.f. 27-1-2004). 2. Subs. by Act 26 of 2007, s. 8, for “Every distribution” (w.e.f. 15-6- 2007). 3. Ins. by s. 8, ibid. (w.e.f. 15-6-2007). 30 ----- (2) It shall be the duty of every distribution licensee to provide, if required, electric plant or electric line for giving electric supply to the premises specified in sub-section (1): Provided that no person shall be entitled to demand, or to continue to receive, from a licensee a supply of electricity for any premises having a separate supply unless he has agreed with the licensee to pay to him such price as determined by the Appropriate Commission. (3) If a distribution licensee fails to supply the electricity within the period specified in sub-section (1), he shall be liable to a penalty which may extend to one thousand rupees for each day of default. **44. Exceptions from duty to supply electricity.—Nothing contained in section 43 shall be taken as** requiring a distribution licensee to give supply of electricity to any premises if he is prevented from so doing by cyclone, floods, storms or other occurrences beyond his control. **45. Power to recover charges.—(1) Subject to the provisions of this section, the prices to be charged** by a distribution licensee for the supply of electricity by him in pursuance of section 43 shall be in accordance with such tariffs fixed from time to time and conditions of his licence. (2) The charges for electricity supplied by a distribution licensee shall be— (a) fixed in accordance with the methods and the principles as may be specified by the concerned State Commission; (b) published in such manner so as to give adequate publicity for such charges and prices. (3) The charges for electricity supplied by a distribution licensee may include— (a) a fixed charge in addition to the charge for the actual electricity supplied; (b) a rent or other charges in respect of any electric meter or electrical plant provided by the distribution licensee. (4) Subject to the provisions of section 62, in fixing charges under this section a distribution licensee shall not show undue preference to any person or class of persons or discrimination against any person or class of persons. (5) The charges fixed by the distribution licensee shall be in accordance with the provisions of this Act and the regulations made in this behalf by the concerned State Commission. **46. Power to recover expenditure.—The State Commission may, by regulations, authorise a** distribution licensee to charge from a person requiring a supply of electricity in pursuance of section 43 any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of giving that supply. **47. Power to require security.—(1) Subject to the provisions of this section, a distribution licensee** may require any person, who requires a supply of electricity in pursuance of section 43, to give him reasonable security, as may be determined by regulations, for the payment to him of all monies which may become due to him– (a) in respect of the electricity supplied to such persons; or (b) where any electric line or electrical plant or electric meter is to be provided for supplying electricity to such person, in respect of the provision of such line or plant or meter, and if that person fails to give such security, the distribution licensee may, if he thinks fit, refuse to give the supply of electricity or to provide the line or plant or meter for the period during which the failure continues. (2) Where any person has not given such security as is mentioned in sub-section (1) or the security given by any person has become invalid or insufficient, the distribution licensee may, by notice, require that person, within thirty days after the service of the notice, to give him reasonable security for the 31 ----- payment of all monies which may become due to him in respect of the supply of electricity or provision of such line or plant or meter. (3) If the person referred to in sub-section (2) fails to give such security, the distribution licensee may, if he thinks fit, discontinue the supply of electricity for the period during which the failure continues. (4) The distribution licensee shall pay interest equivalent to the bank rate or more, as may be specified by the concerned State Commission, on the security referred to in sub-section (1) and refund such security on the request of the person who gave such security. (5) A distribution licensee shall not be entitled to require security in pursuance of clause (a) of sub-section (1) if the person requiring the supply is prepared to take the supply through a pre-payment meter. **48. Additional terms of supply.—A distribution licensee may require any person who requires a** supply of electricity in pursuance of section 43 to accept— (a) any restrictions which may be imposed for the purpose of enabling the distribution licensee to comply with the regulations made under section 53; (b) any terms restricting any liability of the distribution licensee for economic loss resulting from negligence of the person to whom the electricity is supplied. **49. Agreements with respect to supply or purchase of electricity.—Where the Appropriate** Commission has allowed open access to certain consumers under section 42, such consumers, notwithstanding the provisions contained in clause (d) of sub-section (1) of section 62, may enter into an agreement with any person for supply or purchase of electricity on such terms and conditions (including tariff) as may be agreed upon by them. 1[50. The Electricity supply code.—The State Commission shall specify an electricity supply code to provide for recovery of electricity charges, intervals for billing of electricity charges, disconnection of supply of electricity for non-payment thereof, restoration of supply of electricity, measures for preventing tampering, distress or damage to electrical plant or electrical line or meter, entry of distribution licensee or any person acting on his behalf for disconnecting supply and removing the meter, entry for replacing, altering or maintaining electric lines or electrical plants or meter and such other matters.] **51. Other businesses of distribution licensees.—A distribution licensee may, with prior intimation** to the Appropriate Commission, engage in any other business for optimum utilisation of its assets: Provided that a proportion of the revenues derived from such business shall, as may be specified by the concerned State Commission, be utilised for reducing its charges for wheeling: Provided further that the distribution licensee shall maintain separate accounts for each such business undertaking to ensure that distribution business neither subsidises in any way such business undertaking nor encumbers its distribution assets in any way to support such business: Provided also that nothing contained in this section shall apply to a local authority engaged, before the commencement of this Act, in the business of distribution of electricity. _Provisions with respect to electricity traders_ **52. Provisions with respect to electricity trader.—(1) Without prejudice to the provisions contained** in clause (c) of section 12, the Appropriate Commission may, specify the technical requirement, capital adequacy requirement and credit worthiness for being an electricity trader. (2) Every electricity trader shall discharge such duties, in relation to supply and trading in electricity, as may be specified by the Appropriate Commission. 1. Subs. by Act 26 of 2007, s. 9, for section 50 (w.e.f. 15-6-2007). 32 ----- _Provisions with respect to supply generally_ **53. Provision relating to safety and electricity supply.—The Authority may, in consultation with** the State Government, specify suitable measures for— (a) protecting the public (including the persons engaged in the generation, transmission or distribution or trading) from dangers arising from the generation, transmission or distribution or trading of electricity, or use of electricity supplied or installation, maintenance or use of any electric line or electrical plant; (b) eliminating or reducing the risks of personal injury to any person, or damage to property of any person or interference with use of such property; (c) prohibiting the supply or transmission of electricity except by means of a system which conforms to the specifications as may be specified; (d) giving notice in the specified form to the Appropriate Commission and the Electrical Inspector, of accidents and failures of supplies or transmissions of electricity; (e) keeping by a generating company or licensee the maps, plans and sections relating to supply or transmission of electricity; (f) inspection of maps, plans and sections by any person authorised by it or by Electrical Inspector or by any person on payment of specified fee; (g) specifying action to be taken in relation to any electric line or electrical plant, or any electrical appliance under the control of a consumer for the purpose of eliminating or reducing the risk of personal injury or damage to property or interference with its use. **STATE AMENDMENT** **Karnataka** **Insertion of sections 53A.-In the Electricity Act, 2003 (Central Act 36 of 2003) (herein after referred** to as Principal Act), after section 53, the following shall be inserted, namely:— **“53-A. Powers of State Government relating to Safety and Electricity supply.—Where** Central Government or the Authority has made no provision relating to following Safety measures and electricity supply the State Government may by rules provide for, (a) terms and Conditions and manner of Inspection by the Chief Electrical Inspector and Electrical Inspectors; (b) manner of Issue of Licence to electrical contractors, Permits to Supervisors and wiremen and competency certificates; (c) manner of Scrutiny and approval of Electrical Installation drawings, (d) levy of fee for the Inspection or other services rendered by the Chief Electrical Inspector or the Electrical Inspectors; and (e) the rate and manner of collection of fee. If not remitted within the stipulated time, to recover the same as an arrears of Land revenue.” [Vide Karnataka Act 39 of 2014, s. 2] **54. Control of transmission and use of electricity.—(1) Save as otherwise exempted under this Act,** no person other than the Central Transmission Utility or a State Transmission Utility, or a licensee shall transmit or use electricity at a rate exceeding two hundred and fifty watts and one hundred volts— (a) in any street, or (b) in any place,— 33 ----- (i) in which one hundred or more persons are ordinarily likely to be assembled; or (ii) which is a factory within the meaning of the Factories Act, 1948 (63 of 1948) or a mine within the meaning of the Mines Act, 1952 (35 of 1952); or (iii) to which the State Government, by general or special order, declares the provisions of this sub-section to apply, without giving, before the commencement of transmission or use of electricity, not less than seven days’ notice in writing of his intention to the Electrical Inspector and to the District Magistrate or the Commissioner of Police, as the case may be, containing particulars of the electrical installation and plant, if any, the nature and the purpose of supply and complying with such of the provisions of Part XVII of this Act, as may be applicable: Provided that nothing in this section shall apply to electricity used for the public carriage of passengers, animals or goods, on, or for the lighting or ventilation of the rolling stock of any railway or tramway subject to the provisions of the Railways Act, 1989 (24 of 1989). (2) Where any difference or dispute arises as to whether a place is or is not one in which one hundred or more persons are ordinarily likely to be assembled, the matter shall be referred to the State Government, and the decision of the State Government thereon shall be final. (3) The provisions of this section shall be binding on the Government. **55. Use, etc., of meters.—(1) No licensee shall supply electricity, after the expiry of two years from** the appointed date, except through installation of a correct meter in accordance with the regulations to be made in this behalf by the Authority: Provided that the licensee may require the consumer to give him security for the price of a meter and enter into an agreement for the hire thereof, unless the consumer elects to purchase a meter: Provided further that the State Commission may, by notification, extend the said period of two years for a class or classes of persons or for such area as may be specified in that notification. (2) For proper accounting and audit in the generation, transmission and distribution or trading of electricity, the Authority may direct the installation of meters by a generating company or licensee at such stages of generation, transmission or distribution or trading of electricity and at such locations of generation, transmission or distribution or trading, as it may deem necessary. (3) If a person makes default in complying with the provisions contained in this section or the regulations made under sub-section (1), the Appropriate Commission may make such order as it thinks fit for requiring the default to be made good by the generating company or licensee or by any officers of a company or other association or any other person who is responsible for its default. **56. Disconnection of supply in default of payment.—(1) Where any person neglects to pay any** charge for electricity or any sum other than a charge for electricity due from him to a licensee or the generating company in respect of supply, transmission or distribution or wheeling of electricity to him, the licensee or the generating company may, after giving not less than fifteen clear days’ notice in writing, to such person and without prejudice to his rights to recover such charge or other sum by suit, cut off the supply of electricity and for that purpose cut or disconnect any electric supply line or other works being the property of such licensee or the generating company through which electricity may have been supplied, transmitted, distributed or wheeled and may discontinue the supply until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply, are paid, but no longer: Provided that the supply of electricity shall not be cut off if such person deposits, under protest,— (a) an amount equal to the sum claimed from him, or 34 ----- (b) the electricity charges due from him for each month calculated on the basis of average charge for electricity paid by him during the preceding six months, whichever is less, pending disposal of any dispute between him and the licensee. (2) Notwithstanding anything contained in any other law for the time being in force, no sum due from any consumer, under this section shall be recoverable after the period of two years from the date when such sum became first due unless such sum has been shown continuously as recoverable as arrear of charges for electricity supplied and the licensee shall not cut off the supply of the electricity. _Consumer protection: Standards of performance_ **57. Standards of performance of licensee.—(1) The Appropriate Commission may, after** consultation with the licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees. (2) If a licensee fails to meet the standards specified under sub-section (1), without prejudice to any penalty which may be imposed or prosecution be initiated, he shall be liable to pay such compensation to the person affected as may be determined by the Appropriate Commission: Provided that before determination of compensation, the concerned licensee shall be given a reasonable opportunity of being heard. (3) The compensation determined under sub-section (2) shall be paid by the concerned licensee within ninety days of such determination. **58. Different standards of performance by licensee.—The Appropriate Commission may specify** different standards under sub-section (1) of section 57 for a class or classes of licensees. **59. Information with respect to levels of performance.—(1) Every licensee shall, within the period** specified by the Appropriate Commission, furnish to the Commission the following information, namely:– (a) the level of performance achieved under sub-section (1) of section 57; (b) the number of cases in which compensation was made under sub-section (2) of section 57 and the aggregate amount of the compensation. (2) The Appropriate Commission shall at least once in every year arrange for the publication, in such form and manner as it considers appropriate, of such of the information furnished to it under sub-section (1). **60. Market domination.—The Appropriate Commission may issue such directions as it considers** appropriate to a licensee or a generating company if such licensee or generating company enters into any agreement or abuses its dominant position or enters into a combination which is likely to cause or causes an adverse effect on competition in electricity industry. PART VII TARIFF **61. Tariff regulations.—The Appropriate Commission shall, subject to the provisions of this Act,** specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely:— (a) the principles and methodologies specified by the Central Commission for determination of the tariff applicable to generating companies and transmission licensees; (b) the generation, transmission, distribution and supply of electricity are conducted on commercial principles; 35 ----- (c) the factors which would encourage competition, efficiency, economical use of the resources, good performance and optimum investments; (d) safeguarding of consumers’ interest and at the same time, recovery of the cost of electricity in a reasonable manner; (e) the principles rewarding efficiency in performance; (f) multi year tariff principles; 1[(g) that the tariff progressively reflects the cost of supply of electricity and also reduces cross-subsidies in the manner specified by the Appropriate Commission;] (h) the promotion of co-generation and generation of electricity from renewable sources of energy; (i) the National Electricity Policy and tariff policy: Provided that the terms and conditions for determination of tariff under the Electricity (Supply) Act, 1948 (54 of 1948), the Electricity Regulatory Commission Act, 1998 (14 of 1998) and the enactments specified in the Schedule as they stood immediately before the appointed date, shall continue to apply for a period of one year or until the terms and conditions for tariff are specified under this section, whichever is earlier. **62. Determination of tariff.—(1) The Appropriate Commission shall determine the tariff in** accordance with the provisions of this Act for— (a) supply of electricity by a generating company to a distribution licensee: Provided that the Appropriate Commission may, in case of shortage of supply of electricity, fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an agreement, entered into between a generating company and a licensee or between licensees, for a period not exceeding one year to ensure reasonable prices of electricity; (b) transmission of electricity; (c) wheeling of electricity; (d) retail sale of electricity: Provided that in case of distribution of electricity in the same area by two or more distribution licensees, the Appropriate Commission may, for promoting competition among distribution licensees, fix only maximum ceiling of tariff for retail sale of electricity. (2) The Appropriate Commission may require a licensee or a generating company to furnish separate details, as may be specified in respect of generation, transmission and distribution for determination of tariff. (3) The Appropriate Commission shall not, while determining the tariff under this Act, show undue preference to any consumer of electricity but may differentiate according to the consumer's load factor, power factor, voltage, total consumption of electricity during any specified period or the time at which the supply is required or the geographical position of any area, the nature of supply and the purpose for which the supply is required. (4) No tariff or part of any tariff may ordinarily be amended, more frequently than once in any financial year, except in respect of any changes expressly permitted under the terms of any fuel surcharge formula as may be specified. 1. Subs. by Act 26 of 2007, s. 10, for clause (g) (w.e.f. 15-6-2007). 36 ----- (5) The Commission may require a licensee or a generating company to comply with such procedures as may be specified for calculating the expected revenues from the tariff and charges which he or it is permitted to recover. (6) If any licensee or a generating company recovers a price or charge exceeding the tariff determined under this section, the excess amount shall be recoverable by the person who has paid such price or charge along with interest equivalent to the bank rate without prejudice to any other liability incurred by the licensee. **63. Determination of tariff by bidding process. —Notwithstanding anything contained in section** 62, the Appropriate Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government. **64. Procedure for tariff order.—(1) An application for determination of tariff under section 62 shall** be made by a generating company or licensee in such manner and accompanied by such fee, as may be determined by regulations. (2) Every applicant shall publish the application, in such abridged form and manner, as may be specified by the Appropriate Commission. (3) The Appropriate Commission shall, within one hundred and twenty days from receipt of an application under sub-section (1) and after considering all suggestions and objections received from the public,— (a) issue a tariff order accepting the application with such modifications or such conditions as may be specified in that order; (b) reject the application for reasons to be recorded in writing if such application is not in accordance with the provisions of this Act and the rules and regulations made thereunder or the provisions of any other law for the time being in force: Provided that an applicant shall be given a reasonable opportunity of being heard before rejecting his application. (4) The Appropriate Commission shall, within seven days of making the order, send a copy of the order to the Appropriate Government, the Authority, and the concerned licensees and to the person concerned. (5) Notwithstanding anything contained in Part X, the tariff for any inter-State supply, transmission or wheeling of electricity, as the case may be, involving the territories of two States may, upon application made to it by the parties intending to undertake such supply, transmission or wheeling, be determined under this section by the State Commission having jurisdiction in respect of the licensee who intends to distribute electricity and make payment therefor. (6) A tariff order shall, unless amended or revoked, continue to be in force for such period as may be specified in the tariff order. **65. Provision of subsidy by State Government.—If the State Government requires the grant of any** subsidy to any consumer or class of consumers in the tariff determined by the State Commission under section 62, the State Government shall, notwithstanding any direction which may be given under section 108, pay, in advance and in such manner as may be specified, the amount to compensate the person affected by the grant of subsidy in the manner the State Commission may direct, as a condition for the licence or any other person concerned to implement the subsidy provided for by the State Government: Provided that no such direction of the State Government shall be operative if the payment is not made in accordance with the provisions contained in this section and the tariff fixed by the State Commission shall be applicable from the date of issue of orders by the Commission in this regard. 37 ----- **66. Development of market.—The Appropriate Commission shall endeavour to promote the** development of a market (including trading) in power in such manner as may be specified and shall be guided by the National Electricity Policy referred to in section 3 in this regard. PART VIII WORKS _Works of licensees_ **67. Provision as to opening up of streets, railways, etc.—(1) A licensee may, from time to time but** subject always to the terms and conditions of his licence, within his area of supply or transmission or when permitted by the terms of his licence to lay down or place electric supply lines without the area of supply, without that area carry out works such as— (a) to open and break up the soil and pavement of any street, railway or tramway; (b) to open and break up any sewer, drain or tunnel in or under any street, railway or tramway; (c) to alter the position of any line or works or pipes, other than a main sewer pipe; (d) to lay down and place electric lines, electrical plant and other works; (e) to repair, alter or remove the same; (f) to do all other acts necessary for transmission or supply of electricity. (2) The Appropriate Government may, by rules made by it in this behalf, specify,— (a) the cases and circumstances in which the consent in writing of the appropriate Government, local authority, owner or occupier, as the case may be, shall be required for carrying out works; (b) the authority which may grant permission in the circumstances where the owner or occupier objects to the carrying out of works; (c) the nature and period of notice to be given by the licensee before carrying out works; (d) the procedure and manner of consideration of objections and suggestions received in accordance with the notice referred to in clause (c); (e) the determination and payment of compensation or rent to the persons affected by works under this section; (f) the repairs and works to be carried out when emergency exists; (g) the right of the owner or occupier to carry out certain works under this section and the payment of expenses therefor; (h) the procedure for carrying out other works near sewers, pipes or other electric lines or works; (i) the procedure for alteration of the position of pipes, electric lines, electrical plant, telegraph lines, sewer lines, tunnels, drains, etc.; (j) the procedure for fencing, guarding, lighting and other safety measures relating to works on streets, railways, tramways, sewers, drains or tunnels and immediate reinstatement thereof; (k) the avoidance of public nuisance, environmental damage and unnecessary damage to the public and private property by such works; (l) the procedure for undertaking works which are not reparable by the Appropriate Government, licensee or local authority; (m) the manner of deposit of amount required for restoration of any railways, tramways, waterways, etc.; 38 ----- (n) the manner of restoration of property affected by such works and maintenance thereof; (o) the procedure for deposit of compensation payable by the licensee and furnishing of security; and (p) such other matters as are incidental or consequential to the construction and maintenance of works under this section. (3) A licensee shall, in exercise of any of the powers conferred by or under this section and the rules made thereunder, cause as little damage, detriment and inconvenience as may be, and shall make full compensation for any damage, detriment or inconvenience caused by him or by any one employed by him. (4) Where any difference or dispute [including amount of compensation under sub-section (3)] arises under this section, the matter shall be determined by the Appropriate Commission. (5) The Appropriate Commission, while determining any difference or dispute arising under this section in addition to any compensation under sub-section (3), may impose a penalty not exceeding the amount of compensation payable under that sub-section. _Provisions relating to overhead lines_ **68. Overhead lines.—(1) An overhead line shall, with prior approval of the Appropriate** Government, be installed or kept installed above ground in accordance with the provisions of sub-section (2). (2) The provisions contained in sub-section (1) shall not apply— (a) in relation to an electric line which has a nominal voltage not exceeding 11 kilovolts and is used or intended to be used for supplying to a single consumer; (b) in relation to so much of an electric line as is or will be within premises in the occupation or control of the person responsible for its installation; or (c) in such other cases, as may be prescribed. (3) The Appropriate Government shall, while granting approval under sub-section (1), impose such conditions (including conditions as to the ownership and operation of the line) as appear to it to be necessary. (4) The Appropriate Government may vary or revoke the approval at any time after the end of such period as may be stipulated in the approval granted by it. (5) Where any tree standing or lying near an overhead line or where any structure or other object which has been placed or has fallen near an overhead line subsequent to the placing of such line, interrupts or interferes with, or is likely to interrupt or interfere with, the conveyance or transmission of electricity or the accessibility of any works, an Executive Magistrate or authority specified by the Appropriate Government may, on the application of the licensee, cause the tree, structure or object to be removed or otherwise dealt with as he or it thinks fit. (6) When disposing of an application under sub-section (5), an Executive Magistrate or authority specified under that sub-section shall, in the case of any tree in existence before the placing of the overhead line, award to the person interested in the tree such compensation as he thinks reasonable, and such person may recover the same from the licensee. _Explanation.—For the purposes of this section, the expression “tree” shall be deemed to include any_ shrub, hedge, jungle growth or other plant. **69. Notice to telegraph authority.—(1) A licensee shall, before laying down or placing, within ten** meters of any telegraph line, electric line, electrical plant or other works, not being either service lines, or 39 ----- electric lines or electrical plant, for the repair, renewal or amendment of existing works of which the character or position is not to be altered,— (a) submit a proposal in case of a new installation to an authority to be designated by the Central Government and such authority shall take a decision on the proposal within thirty days; (b) give not less than ten days' notice in writing to the telegraph authority in case of repair, renewal or amendment of existing works, specifying— (i) the course of the works or alterations proposed; (ii) the manner in which the works are to be utilised; (iii) the amount and nature of the electricity to be transmitted; (iv) the extent to, and the manner in which (if at all), earth returns are to be used, and the licensee shall conform to such reasonable requirements, either general or special, as may be laid down by the telegraph authority within that period for preventing any telegraph line from being injuriously affected by such works or alterations: Provided that in case of emergency (which shall be stated by the licensee in writing to the telegraph authority) arising from defects in any of the electric lines or electrical plant or other works of the licensee, the licensee shall be required to give only such notice as may be possible after the necessity for the proposed new works or alterations has arisen. (2) Where the works of the laying or placing of any service line is to be executed, the licensee shall, not less than forty-eight hours before commencing the work, serve upon the telegraph authority a notice in writing of his intention to execute such works. PART IX CENTRAL ELECTRICITY AUTHORITY _Constitution and functions of Authority_ **70. Constitution, etc., of Central Electricity Authority.—(1) There shall be a body to be called the** Central Electricity Authority to exercise such functions and perform such duties as are assigned to it under this Act. (2) The Central Electricity Authority, established under section 3 of the Electricity (Supply) Act, 1948 (54 of 1948) and functioning as such immediately before the appointed date, shall be the Central Electricity Authority for the purposes of this Act and the Chairperson, Members, Secretary and other officers and employees thereof shall be deemed to have been appointed under this Act and they shall continue to hold office on the same terms and conditions on which they were appointed under the Electricity (Supply) Act, 1948. (3) The Authority shall consist of not more than fourteen Members (including its Chairperson) of whom not more than eight shall be full-time Members to be appointed by the Central Government. (4) The Central Government may appoint any person, eligible to be appointed as Member of the Authority, as the Chairperson of the Authority, or, designate one of the full-time Members as the Chairperson of the Authority. (5) The Members of the Authority shall be appointed from amongst persons of ability, integrity and standing who have knowledge of, and adequate experience and capacity in, dealing with problems relating to engineering, finance, commerce, economics or industrial matters, and at least one Member shall be appointed from each of the following categories, namely:— 40 ----- (a) engineering with specialisation in design, construction, operation and maintenance of generating stations; (b) engineering with specialisation in transmission and supply of electricity; (c) applied research in the field of electricity; (d) applied economics, accounting, commerce or finance. (6) The Chairperson and all the Members of the Authority shall hold office during the pleasure of the Central Government. (7) The Chairperson shall be the Chief Executive of the Authority. (8) The headquarters of the Authority shall be at Delhi. (9) The Authority shall meet at the head office or any other place at such time as the Chairperson may direct, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings) as it may specify. (10) The Chairperson, or if he is unable to attend a meeting of the Authority, any other Member nominated by the Chairperson in this behalf and in the absence of such nomination or where there is no Chairperson, any Member chosen by the Members present from among themselves shall preside at the meeting. (11) All questions which come up before any meeting of the Authority shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson or the person presiding shall have the right to exercise a second or casting vote. (12) All orders and decisions of the Authority shall be authenticated by the Secretary or any other officer of the Authority duly authorised by the Chairperson in this behalf. (13) No act or proceeding of the Authority shall be questioned or shall be invalidated merely on the ground of existence of any vacancy in, or any defect in, the constitution of, the Authority. (14) The Chairperson of the Authority and other full-time Members shall receive such salary and allowances as may be determined by the Central Government and other Members shall receive such allowances and fees for attending the meetings of the Authority, as the Central Government may prescribe. (15) The other terms and conditions of service of the Chairperson and Members of the Authority including, subject to the provisions of sub-section (6), their terms of office shall be such as the Central Government may prescribe. **71. Members not to have certain interest.—No Member of the Authority shall have any share or** interest, whether in his own name or otherwise, in any company or other body corporate or an association of persons (whether incorporated or not) or a firm engaged in the business of generation, transmission, distribution and trading of electricity or fuel for the generation thereof or in the manufacture of electrical equipment. **72. Officers and staff of Authority.—The Authority may appoint a Secretary and such other officers** and employees as it considers necessary for the performance of its functions under this Act and on such terms as to salary, remuneration, fee, allowance, pension, leave and gratuity, as the authority may in consultation with the Central Government, fix: Provided that the appointment of the Secretary shall be subject to the approval of the Central Government. **73. Functions and duties of Authority.—The Authority shall perform such functions and duties as** the Central Government may prescribe or direct, and in particular to— 41 ----- (a) advise the Central Government on the matters relating to the national electricity policy, formulate short-term and perspective plans for development of the electricity system and co-ordinate the activities of the planning agencies for the optimal utilisation of resources to subserve the interests of the national economy and to provide reliable and affordable electricity for all consumers; (b) specify the technical standards for construction of electrical plants, electric lines and connectivity to the grid; (c) specify the safety requirements for construction, operation and maintenance of electrical plants and electric lines; (d) specify the Grid Standards for operation and maintenance of transmission lines; (e) specify the conditions for installation of meters for transmission and supply of electricity; (f) promote and assist in the timely completion of schemes and projects for improving and augmenting the electricity system; (g) promote measures for advancing the skill of persons engaged in the electricity industry; (h) advise the Central Government on any matter on which its advice is sought or make recommendation to that Government on any matter if, in the opinion of the Authority, the recommendation would help in improving the generation, transmission, trading, distribution and utilisation of electricity; (i) collect and record the data concerning the generation, transmission, trading, distribution and utilisation of electricity and carry out studies relating to cost, efficiency, competitiveness and such like matters; (j) make public from time to time the information secured under this Act, and provide for the publication of reports and investigations; (k) promote research in matters affecting the generation, transmission, distribution and trading of electricity; (l) carry out, or cause to be carried out, any investigation for the purposes of generating or transmitting or distributing electricity; (m) advise any State Government, licensees or the generating companies on such matters which shall enable them to operate and maintain the electricity system under their ownership or control in an improved manner and where necessary, in co-ordination with any other Government, licensee or the generating company owning or having the control of another electricity system; (n) advise the Appropriate Government and the Appropriate Commission on all technical matters relating to generation, transmission and distribution of electricity; and (o) discharge such other functions as may be provided under this Act. _Certain powers and directions_ **74. Power to require statistics and returns.—It shall be the duty of every licensee, generating** company or person generating electricity for its or his own use to furnish to the Authority such statistics, returns or other information relating to generation, transmission, distribution, trading and use of electricity as it may require and at such times and in such form and manner as may be specified by the Authority. **75. Directions by Central Government to Authority.—(1) In the discharge of its functions, the** Authority shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing. 42 ----- (2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final. PART X REGULATORY COMMISSIONS _Constitution, powers and functions of Central Commission_ **76. Constitution of Central Commission.—(1) There shall be a Commission to be known as the** Central Electricity Regulatory Commission to exercise the powers conferred on, and discharge the functions assigned to it under this Act. (2) The Central Electricity Regulatory Commission, established under section 3 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998) and functioning as such immediately before the appointed date, shall be deemed to be the Central Commission for the purposes of this Act and the Chairperson, Members, Secretary, and other officers and employees thereof shall be deemed to have been appointed under this Act and they shall continue to hold office on the same terms and conditions on which they were appointed under the Electricity Regulatory Commissions Act, 1998: Provided that the Chairperson and other Members of the Central Commission appointed, before the commencement of this Act, under the Electricity Regulatory Commissions Act, 1998 (14 of 1998), may, on the recommendations of the Selection Committee constituted under sub-section (1) of section 78, be allowed, to opt for the terms and conditions under this Act by the Central Government. (3) The Central Commission shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (4) The head office of the Central Commission shall be at such place as the Central Government may, by notification, specify. (5) The Central Commission shall consist of the following Members, namely: — (a) a Chairperson and three other Members; (b) the Chairperson of the Authority who shall be the Member, ex officio. (6) The Chairperson and Members of the Central Commission shall be appointed by the Central Government on the recommendation of the Selection Committee referred to in section 78. **77. Qualifications for appointment of Members of Central Commission.—(1) The Chairperson** and the Members of the Central Commission shall be persons having adequate knowledge of, or experience in, or shown capacity in, dealing with, problems relating to engineering, law, economics, commerce, finance or management and shall be appointed in the following manner, namely: — (a) one person having qualifications and experience in the field of engineering with specialisation in generation, transmission or distribution of electricity; (b) one person having qualifications and experience in the field of finance; (c) two persons having qualifications and experience in the field of economics, commerce, law or management: Provided that not more than one Member shall be appointed under the same category under clause (c). (2) Notwithstanding anything contained in sub-section (1), the Central Government may appoint any person as the Chairperson from amongst persons who is, or has been, a Judge of the Supreme Court or the Chief Justice of a High Court: 43 ----- Provided that no appointment under this sub-section shall be made except after consultation with the Chief Justice of India. (3) The Chairperson or any other Member of the Central Commission shall not hold any other office. (4) The Chairperson shall be the Chief Executive of the Central Commission. **78. Constitution of Selection Committee to recommend Members.—(1) The Central Government** shall, for the purposes of selecting the Members of the Appellate Tribunal and the Chairperson and Members of the Central Commission, constitute a Selection Committee consisting of— (a) Member of the Planning Commission incharge of the energy sector ………… Chairperson; (b) Secretary-in-charge of the Ministry of the Central Government dealing with the Department of Legal Affairs …………. Member; (c) Chairperson of the Public Enterprises Selection Board …….Member; (d) a person to be nominated by the Central Government in accordance with sub-section (2)………………… Member; (e) a person to be nominated by the Central Government in accordance with sub-section (3)……………….. Member; (f) Secretary-in-charge of the Ministry of the Central Government dealing with power………….Member. (2) For the purposes of clause (d) of sub-section (1), the Central Government shall nominate from amongst persons holding the post of chairperson or managing director, by whatever name called, of any public financial institution specified in section 4A of the Companies Act, 1956 (1 of 1956). (3) For the purposes of clause (e) of sub-section (1), the Central Government shall, by notification, nominate from amongst persons holding the post of director or the head of the institution, by whatever name called, of any research, technical or management institution for this purpose. (4) Secretary-in-charge of the Ministry of the Central Government dealing with Power shall be the Convenor of the Selection Committee. (5) The Central Government shall, within one month from the date of occurrence of any vacancy by reason of death, resignation or removal of a Member of the Appellate Tribunal or the Chairperson or a Member of the Central Commission and six months before the superannuation or end of tenure of the Member of the Appellate Tribunal or Member of the Central Commission, make a reference to the Selection Committee for filling up of the vacancy. (6) The Selection Committee shall finalise the selection of the Chairperson and Members referred to in sub-section (5) within three months from the date on which the reference is made to it. (7) The Selection Committee shall recommend a panel of two names for every vacancy referred to it. (8) Before recommending any person for appointment as Member of the Appellate Tribunal or the Chairperson or other Member of the Central Commission, the Selection Committee shall satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as the Chairperson or Member. (9) No appointment of the Chairperson or other Member shall be invalid merely by reason of any vacancy in the Selection Committee: 44 ----- Provided that nothing contained in this section shall apply to the appointment of a person as the Chairperson of the Central Commission where such person is, or has been, a Judge of the Supreme Court or the Chief Justice of a High Court. **79. Functions of Central Commission.—(1) The Central Commission shall discharge the following** functions, namely:— (a) to regulate the tariff of generating companies owned or controlled by the Central Government; (b) to regulate the tariff of generating companies other than those owned or controlled by the Central Government specified in clause (a), if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State; (c) to regulate the inter-State transmission of electricity; (d) to determine tariff for inter-State transmission of electricity; (e) to issue licences to persons to function as transmission licensee and electricity trader with respect to their inter-State operations; (f) to adjudicate upon disputes involving generating companies or transmission licensee in regard to matters connected with clauses (a) to (d) above and to refer any dispute for arbitration; (g) to levy fees for the purposes of this Act; (h) to specify Grid Code having regard to Grid Standards; (i) to specify and enforce the standards with respect to quality, continuity and reliability of service by licensees; (j) to fix the trading margin in the inter-State trading of electricity, if considered, necessary; (k) to discharge such other functions as may be assigned under this Act. (2) The Central Commission shall advise the Central Government on all or any of the following matters, namely:– (i) formulation of National electricity Policy and tariff policy; (ii) promotion of competition, efficiency and economy in activities of the electricity industry; (iii) promotion of investment in electricity industry; (iv) any other matter referred to the Central Commission by that Government. (3) The Central Commission shall ensure transparency while exercising its powers and discharging its functions. (4) In discharge of its functions, the Central Commission shall be guided by the National Electricity Policy, National Electricity Plan and tariff policy published under section 3. **80. Central Advisory Committee.—(1) The Central Commission may, by notification, establish** with effect from such date as it may specify in such notification, a Committee to be known as the Central Advisory Committee. (2) The Central Advisory Committee shall consist of not more than thirty-one members to represent the interests of commerce, industry, transport, agriculture, labour, consumers, non-governmental organisations and academic and research bodies in the electricity sector. (3) The Chairperson of the Central Commission shall be the _ex officio_ Chairperson of the Central Advisory Committee and the Members of that Commission and Secretary to the Government of India in 45 ----- charge of the Ministry or Department of the Central Government dealing with Consumer Affairs and Public Distribution System shall be the ex officio Members of the Committee. **81. Objects of Central Advisory Committee.—The objects of the Central Advisory Committee** shall be to advise the Central Commission on— (i) major questions of policy; (ii) matters relating to quality, continuity and extent of service provided by the licensees; (iii) compliance by the licensees with the conditions and requirements of their licence; (iv) protection of consumer interest; (v) electricity supply and overall standards of performance by utilities. _Constitution, powers and functions of State Commissions_ **82. Constitution of State Commission.—(1) Every State Government shall, within six months from** the appointed date, by notification, constitute for the purposes of this Act, a Commission for the State to be known as the (name of the State) Electricity Regulatory Commission: Provided that the State Electricity Regulatory Commission, established by a State Government under section 17 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998) and the enactments specified in the Schedule, and functioning as such immediately before the appointed date, shall be the State Commission for the purposes of this Act and the Chairperson, Members, Secretary, and officers and other employees thereof shall continue to hold office, on the same terms and conditions on which they were appointed under those Acts: Provided further that the Chairperson and other Members of the State Commission appointed, before the commencement of this Act, under the Electricity Regulatory Commissions Act, 1998 (14 of 1998) or under the enactments specified in the Schedule, may, on the recommendations of the Selection Committee constituted under sub-section (1) of section 85, be allowed to opt for the terms and conditions under this Act by the concerned State Government. (2) The State Commission shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (3) The head office of the State Commission shall be at such place as the State Government may, by notification, specify. (4) The State Commission shall consist of not more than three Members, including the Chairperson. (5) The Chairperson and Members of the State Commission shall be appointed by the State Government on the recommendation of a Selection Committee referred to in section 85. **83. Joint Commission.—(1) Notwithstanding anything to the contrary contained in section 82, a** Joint Commission may be constituted by an agreement to be entered into— (a) by two or more Governments of States; or (b) by the Central Government, in respect of one or more Union territories, and one or more Governments of States, and shall be in force for such period and shall be subject to renewal for each further period, if any, as may be stipulated in the agreement: Provided that the Joint Commission, constituted under section 21A of Electricity Regulatory Commissions Act, 1998 (14 of 1998) and functioning as such immediately before the appointed day, shall be the Joint Commission for the purposes of this Act and the Chairperson, Members, Secretary and other 46 ----- officers and employees thereof shall be deemed to have been appointed as such under this Act and they shall continue to hold office, on the same terms and conditions on which they were appointed under the Electricity Regulatory Commissions Act, 1998. (2) The Joint Commission shall consist of one Member from each of the participating States and Union territories and the Chairperson shall be appointed from amongst the Members by consensus, failing which by rotation. (3) An agreement under sub-section (1) shall contain provisions as to the name of the Joint Commission, the manner in which the participating States may be associated in the selection of the Chairperson and Members of the Joint Commission, manner of appointment of Members and appointment of Chairperson by rotation or consensus, places at which the Commission shall sit, apportionment among the participating States of the expenditure in connection with the Joint Commission, manner in which the differences of opinion between the Joint Commission and the State Government concerned would be resolved and may also contain such other supplemental, incidental and consequential provisions not inconsistent with this Act as may be deemed necessary or expedient for giving effect to the agreement. (4) The Joint Commission shall determine tariff in respect of the participating States or Union territories separately and independently. (5) Notwithstanding anything contained in this section, the Central Government may, if so authorised by all the participating States, constitute a Joint Commission and may exercise the powers in respect of all or any of the matters specified under sub-section (3) and when so specifically authorised by the participating States. **84. Qualifications for appointment of Chairperson and Members of State Commission.—(1) The** Chairperson and the Members of the State Commission shall be persons of ability, integrity and standing who have adequate knowledge of, and have shown capacity in, dealing with problems relating to engineering, finance, commerce, economics, law or management. (2) Notwithstanding anything contained in sub-section (1), the State Government may appoint any person as the Chairperson from amongst persons who is, or has been, a Judge of a High Court: Provided that no appointment under this sub-section shall be made except after consultation with the Chief Justice of that High Court. (3) The Chairperson or any other Member of the State Commission shall not hold any other office. (4) The Chairperson shall be the Chief Executive of the State Commission. **85. Constitution of Selection Committee to select Members of State Commission.—(1) The State** Government shall, for the purposes of selecting the Members of the State Commission, constitute a Selection Committee consisting of— (a) a person who has been a Judge of the High Court…. Chairperson; (b) the Chief Secretary of the concerned State ….Member; (c) the Chairperson of the Authority or the Chairperson of the Central Commission ….. Member: Provided that nothing contained in this section shall apply to the appointment of a person as the Chairperson who is or has been a Judge of the High Court. (2) The State Government shall, within one month from the date of occurrence of any vacancy by reason of death, resignation or removal of the Chairperson or a Member and six months before the superannuation or end of tenure of the Chairperson or Member, make a reference to the Selection Committee for filling up of the vacancy. 47 ----- (3) The Selection Committee shall finalise the selection of the Chairperson and Members within three months from the date on which the reference is made to it. (4) The Selection Committee shall recommend a panel of two names for every vacancy referred to it. (5) Before recommending any person for appointment as the Chairperson or other Member of the State Commission, the Selection Committee shall satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as such Chairperson or Member, as the case may be. (6) No appointment of Chairperson or other Member shall be invalid merely by reason of any vacancy in the Selection Committee. **86. Functions of State Commission.—(1) The State Commission shall discharge the following** functions, namely:— (a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State: Provided that where open access has been permitted to a category of consumers under section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers; (b) regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution and supply within the State; (c) facilitate intra-State transmission and wheeling of electricity; (d) issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State; (e) promote co-generation and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee; (f) adjudicate upon the disputes between the licensees and generating companies and to refer any dispute for arbitration; (g) levy fee for the purposes of this Act; (h) specify State Grid Code consistent with the Grid Code specified under clause (h) of sub-section (1) of section 79; (i) specify or enforce standards with respect to quality, continuity and reliability of service by licensees; (j) fix the trading margin in the intra-State trading of electricity, if considered, necessary; (k) discharge such other functions as may be assigned to it under this Act. (2) The State Commission shall advise the State Government on all or any of the following matters, namely: — (i) promotion of competition, efficiency and economy in activities of the electricity industry; (ii) promotion of investment in electricity industry; (iii) reorganisation and restructuring of electricity industry in the State; 48 ----- (iv) matters concerning generation, transmission, distribution and trading of electricity or any other matter referred to the State Commission by that Government. (3) The State Commission shall ensure transparency while exercising its powers and discharging its functions. (4) In discharge of its functions, the State Commission shall be guided by the National Electricity Policy, National Electricity Plan and tariff policy published under section 3. **87. State Advisory Committee.—(1) The State Commission may, by notification, establish with** effect from such date as it may specify in such notification, a Committee to be known as the State Advisory Committee. (2) The State Advisory Committee shall consist of not more than twenty-one members to represent the interests of commerce, industry, transport, agriculture, labour, consumers, non-governmental organisations and academic and research bodies in the electricity sector. (3) The Chairperson of the State Commission shall be the ex officio Chairperson of the State Advisory Committee and the Members of the State Commission and the Secretary to State Government in charge of the Ministry or Department dealing with Consumer Affairs and Public Distribution System shall be the _ex officio Members of the Committee._ **88. Objects of State Advisory Committee.—The objects of the State Advisory Committee shall be** to advise the Commission on— (i) major questions of policy; (ii) matters relating to quality, continuity and extent of service provided by the licensees; (iii) compliance by licensees with the conditions and requirements of their licence; (iv) protection of consumer interest; and (v) electricity supply and overall standards of performance by utilities. _Appropriate Commission – other provisions_ **89. Term of office and conditions of service of Members.—(1) The Chairperson or other Member** shall hold office for a term of five years from the date he enters upon his office: Provided that the Chairperson or other Member in the Central Commission or the State Commission shall not be eligible for re-appointment in the same capacity as the Chairperson or a Member in that Commission in which he had earlier held office as such: Provided further that no Chairperson or Member shall hold office as such after he has attained the age of sixty-five years. (2) The salary, allowances and other terms and conditions of service of the Chairperson and Members shall be such as may be prescribed by the Appropriate Government: Provided that the salary, allowances and other terms and conditions of service of the Members, shall not be varied to their disadvantage after appointment. (3) Every Member shall, before entering upon his office, make and subscribe to an oath of office and secrecy in such form and in such manner and before such authority as may be prescribed. (4) Notwithstanding anything contained in sub-section (1), a Member may—– (a) relinquish his office by giving in writing to the Appropriate Government a notice of not less than three months; or (b) be removed from his office in accordance with the provisions of section 90. 49 ----- (5) Any member ceasing to hold office as such shall— (a) not accept any commercial employment for a period of two years from the date he ceases to hold such office; and (b) not represent any person before the Central Commission or any State Commission in any manner. _Explanation.–For the purposes of this sub-section, “commercial employment” means employment in_ any capacity in any organisation which has been a party to the proceedings before the Appropriate Commission or employment in any capacity under, or agency of, a person engaged in trading, commercial, industrial or financial business in electricity industry and includes a director of a company or partner of a firm or setting up practice either independently or as partner of a firm or as an advisor or a consultant. **STATE AMENDMENT** **Andhra Pradesh:** In section 89, in sub-section (1), for the existing two provisos, the following provisos shall be substituted, in their application to the State of Andhra Pradesh, namely: “Provided that the Chairperson or other Member in the State Commission shall be eligible for re-appointment in the same capacity and shall hold office as such, till he completes the term of five years including the term already held before such re-appointment: Provided further that no Chairperson or Member shall hold office as such after he attained the age of seventy years.” [Vide Andhra Pradesh Act 11 of 2016, s. 3] **90. Removal of Member. — (1) No Member shall be removed from office except in accordance with** the provisions of this section. (2) The Central Government, in the case of a Member of the Central Commission, and the State Government, in the case of a Member of the State Commission, may by order remove from office any Member, if he– (a) has been adjudged an insolvent; (b) has been convicted of an offence which, in the opinion of the Appropriate Government, involves moral turpitude; (c) has become physically or mentally incapable of acting as a Member; (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; (e) has so abused his position as to render his continuance in office prejudicial to the public interest; or (f) has been guilty of proved misbehaviour: Provided that no Member shall be removed from his office on any ground specified in clauses (d), (e) and (f) unless the Chairperson of the Appellate Tribunal on a reference being made to him in this behalf by the Central Government or the State Government, as the case may be, has, on an inquiry, held by him in accordance with such procedure as may be prescribed by the Central Government, reported that the Member ought on such ground or grounds to be removed. (3) The Central Government or the State Government, as the case may be, may, in consultation with the Chairperson of the Appellate Tribunal suspend any Member of the Appropriate Commission in 50 ----- respect of whom a reference has been made to the Chairperson of the Appellate Tribunal, under sub-section (2) until the Central Government or the State Government, as the case may be, has passed orders on receipt of the report of the Chairperson of the Appellate Tribunal, on such reference: Provided that nothing contained in this section shall apply to the Chairperson of the Appropriate Commission who, at the time of his appointment as such is a sitting Judge of the Supreme Court or the chief Justice of a High Court or a Judge of a High Court. _Proceedings and powers of Appropriate Commission_ **91. Secretary, officers and other employees of Appropriate Commission. —(1) The Appropriate** Commission may appoint a Secretary to exercise such powers and perform such duties as may be specified. (2) The Appropriate Commission may, with the approval of the Appropriate Government, specify the numbers, nature and categories of other officers and employees. (3) The salaries and allowances payable to, and other terms and conditions of service of, the Secretary, officers and other employees shall be such as may be specified with the approval of the Appropriate Government. (4) The Appropriate Commission may appoint consultants required to assist that Commission in the discharge of its functions on the terms and conditions as may be specified. **92. Proceedings of Appropriate Commission.—(1) The Appropriate Commission shall meet at the** head office or any other place at such time as the Chairperson may direct, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings) as it may specify. (2) The Chairperson, or if he is unable to attend a meeting of the Appropriate Commission, any other Member nominated by the Chairperson in this behalf and, in the absence of such nomination or where there is no Chairperson, any Member chosen by the Members present from amongst themselves, shall preside at the meeting. (3) All questions which come up before any meeting of the Appropriate Commission shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding shall have a second or casting vote. (4) Save as otherwise provided in sub-section (3), every Member shall have one vote. (5) All orders and decisions of the Appropriate Commission shall be authenticated by its Secretary or any other officer of the Commission duly authorised by the Chairperson in this behalf. **93. Vacancies, etc., not to invalidate proceedings.—No act or proceedings of the Appropriate** Commission shall be questioned or shall be invalidated merely on the ground of existence of any vacancy or defect in the constitution of the Appropriate Commission. **94. Powers of Appropriate Commission.—(1) The Appropriate Commission shall, for the purposes** of any inquiry or proceedings under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely: — (a) summoning and enforcing the attendance of any person and examining him on oath; (b) discovery and production of any document or other material object producible as evidence; (c) receiving evidence on affidavits; (d) requisitioning of any public record; (e) issuing commission for the examination of witnesses; 51 ----- (f) reviewing its decisions, directions and orders; (g) any other matter which may be prescribed. (2) The Appropriate Commission shall have the powers to pass such interim order in any proceeding, hearing or matter before the Appropriate Commission, as that Commission may consider appropriate. (3) The Appropriate Commission may authorise any person, as it deems fit, to represent the interest of the consumers in the proceedings before it. **95. Proceedings before Commission.—All proceedings before the Appropriate Commission shall be** deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Appropriate Commission shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). **96. Powers of entry and seizure.—The Appropriate Commission or any officer, not below the rank** of a Gazetted Officer specially authorised in this behalf by the Commission, may enter any building or place where the Commission has reason to believe that any document relating to the subject matter of the inquiry may be found, and may seize any such document or take extracts or copies therefrom subject to the provisions of section 100 of the Code of Criminal Procedure, 1973 (2 of 1974), in so far as it may be applicable. **97. Delegation.—The Appropriate Commission may, by general or special order in writing, delegate** to any Member, Secretary, officer of the Appropriate Commission or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers to adjudicate disputes under section 79 and section 86 and the powers to make regulations under section 178 or section 181) as it may deem necessary. _Grants, Fund, Accounts, Audit and Report_ **98. Grants and loans by Central Government.—The Central Government may, after due** appropriation made by Parliament in this behalf, make to the Central Commission grants and loans of such sums of money as that Government may consider necessary. **99. Establishment of Fund by Central Government.—(1) There shall be constituted a Fund to be** called the Central Electricity Regulatory Commission Fund and there shall be credited thereto— (a) any grants and loans made to the Central Commission by the Central Government under section 98; (b) all fees received by the Central Commission under this Act; (c) all sums received by the Central Commission from such other sources as may be decided upon by the Central Government. (2) The Fund shall be applied for meeting— (a) the salary, allowances and other remuneration of Chairperson, Members, Secretary, officers and other employees of the Central Commission; (b) the expenses of the Central Commission in discharge of its functions under section 79; (c) the expenses on objects and for purposes authorised by this Act. (3) The Central Government may, in consultation with the Comptroller and Auditor-General of India, prescribe the manner of applying the Fund for meeting the expenses specified in clause (b) or clause (c) of sub-section (2). **100. Accounts and audit of Central Commission.—(1) The Central Commission shall maintain** proper accounts and other relevant records and prepare an annual statement of accounts in such form as 52 ----- may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Central Commission shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Central Commission to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Central Commission under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Central Commission. (4) The accounts of the Central Commission, as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the Central Government and that Government shall cause the same to be laid, as soon as may be after it is received, before each House of Parliament. **101. Annual report of Central Commission.—(1) The Central Commission shall prepare once** every year, in such form and at such time as may be prescribed, an annual report giving a summary of its activities during the previous year and copies of the report shall be forwarded to the Central Government. (2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament. **102. Grants and loans by State Government.—The State Government may, after due appropriation** made by Legislature of a State in this behalf, make to the State Commission grants and loans of such sums of money as that Government may consider necessary. **103. Establishment of Fund by State Government.—(1) There shall be constituted a Fund to be** called the State Electricity Regulatory Commission Fund and there shall be credited thereto— (a) any grants and loans made to the State Commission by the State Government under section 102; (b) all fees received by the State Commission under this Act; (c) all sums received by the State Commission from such other sources as may be decided upon by the State Government. (2) The Fund shall be applied for meeting— (a) the salary, allowances and other remuneration of Chairperson, Members, Secretary, officers and other employees of the State Commission; (b) the expenses of the State Commission in discharge of its functions under section 86; (c) the expenses on objects and for purposes authorised by this Act. (3) The State Government may, in consultation with the Comptroller and Auditor-General of India, prescribe the manner of applying the Fund for meeting the expenses specified in clause (b) or clause (c) of sub-section (2). **104. Accounts and audit of State Commission.— (1) The State Commission shall maintain proper** accounts and other relevant records and prepare annual statement of accounts in such form as may be prescribed by the State Government in consultation with the Comptroller and Auditor-General of India. 53 ----- (2) The Accounts of the State Commission shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the State Commission to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the State Commission under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General of India generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the State Commission. (4) The accounts of the State Commission, as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the State Government and that Government shall cause the same to be laid, as soon as may be after it is received, before the State Legislature. **105. Annual report of State Commission.—(1) The State Commission shall prepare once every year** in such form and at such time as may be prescribed, an annual report giving a summary of its activities during the previous year and copies of the report shall be forwarded to the State Government. (2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before the State Legislature. **106. Budget of Appropriate Commission.—The Appropriate Commission shall prepare, in such** form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of that Commission and forward the same to the Appropriate Government. **107. Directions by Central Government.—(1) In the discharge of its functions, the Central** Commission shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing. (2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final. **108. Directions by State Government.—(1) In the discharge of its functions, the State Commission** shall be guided by such directions in matters of policy involving public interest as the State Government may give to it in writing. (2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the State Government thereon shall be final. **109. Directions to Joint Commission.—Notwithstanding anything contained in this Act, where any** Joint Commission is established under section 83– (a) the Government of the State, for which the Joint Commission is established, shall be competent to give any direction under this Act only in cases where such direction relates to matter within the exclusive territorial jurisdiction of the State; (b) the Central Government alone shall be competent to give any direction under this Act where such direction relates to a matter within the territorial jurisdiction of two or more States or pertaining to a Union territory if the participating Governments fail to reach an agreement or the participating States or majority of them request the Central Government to issue such directions. 54 ----- PART XI APPELLATE TRIBUNAL FOR ELECTRICITY **110. Establishment of Appellate Tribunal.—The Central Government shall, by notification,** establish an Appellate Tribunal to be known as the Appellate Tribunal for Electricity to hear appeals against the orders of the adjudicating officer or the Appropriate Commission [1][under this Act or any other law for the time being in force]. **111. Appeal to Appellate Tribunal.—(1) Any person aggrieved by an order made by an** adjudicating officer under this Act (except under section 127) or an order made by the Appropriate Commission under this Act may prefer an appeal to the Appellate Tribunal for Electricity: Provided that any person appealing against the order of the adjudicating officer levying any penalty shall, while filing the appeal, deposit the amount of such penalty: Provided further that where in any particular case, the Appellate Tribunal is of the opinion that the deposit of such penalty would cause undue hardship to such person, it may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation of penalty. (2) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order made by the adjudicating officer or the Appropriate Commission is received by the aggrieved person and it shall be in such form, verified in such manner and be accompanied by such fee as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned adjudicating officer or the Appropriate Commission, as the case may be. (5) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within one hundred and eighty days from the date of receipt of the appeal: Provided that where any appeal could not be disposed of within the said period of one hundred and eighty days, the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within the said period. (6) The Appellate Tribunal may, for the purpose of examining the legality, propriety or correctness of any order made by the adjudicating officer or the Appropriate Commission under this Act, as the case may be, in relation to any proceeding, on its own motion or otherwise, call for the records of such proceedings and make such order in the case as it thinks fit. **112. Composition of Appellate Tribunal.—(1) The Appellate Tribunal shall consist of a** Chairperson and three other Members. (2) Subject to the provisions of this Act,— (a) the jurisdiction of the Appellate Tribunal may be exercised by Benches thereof; (b) a Bench may be constituted by the Chairperson of the Appellate Tribunal with two or more Members of the Appellate Tribunal as the Chairperson of the Appellate Tribunal may deem fit: Provided that every Bench constituted under this clause shall include at least one Judicial Member and one Technical Member; 1. Subs. by Act 28 of 2010, s. 16 and the Schedule, for “under this Act” (w.e.f. 24-8-2010). 55 ----- (c) the Benches of the Appellate Tribunal shall ordinarily sit at Delhi and such other places as the Central Government may, in consultation with the Chairperson of the Appellate Tribunal, notify; (d) the Central Government shall notify the areas in relation to which each Bench of the Appellate Tribunal may exercise jurisdiction. (3) Notwithstanding anything contained in sub-section (2), the Chairperson of the Appellate Tribunal may transfer a Member of the Appellate Tribunal from one Bench to another Bench. _Explanation.—For the purposes of this Chapter, —_ (i) “Judicial Member” means a Member of the Appellate Tribunal appointed as such under sub-clause (i) of caluse (b) of sub-section (1) of section 113, and includes the Chairperson of the Appellate Tribunal; (ii) “Technical Member” means a Member of the Appellate Tribunal appointed as such under sub-clause (ii) or sub-clause (iii) of clause (b) of sub-section (1) of section 113. **113. Qualifications for appointment of Chairperson and Member of Appellate Tribunal.— (1) A** person shall not be qualified for appointment as the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal unless he— (a) in the case of the Chairperson of the Appellate Tribunal, is, or has been, a judge of the Supreme Court or the Chief Justice of a High Court; and (b) in the case of a Member of the Appellate Tribunal,— (i) is, or has been, or is qualified to be, a Judge of a High Court; or (ii) is, or has been, a Secretary for at least one year in the Ministry or Department of the Central Government dealing with economic affairs or matters or infrastructure; or (iii) is, or has been, a person of ability and standing, having adequate knowledge or experience in dealing with the matters relating to electricity generation, transmission and distribution and regulation or economics, commerce, law or management. (2) The Chairperson of the Appellate Tribunal shall be appointed by the Central Government after consultation with the Chief Justice of India. (3) The Members of the Appellate Tribunal shall be appointed by the Central Government on the recommendation of the Selection Committee referred to in section 78. (4) Before appointing any person for appointment as Chairperson or other Member of the Appellate Tribunal, the Central Government shall satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as such Chairperson or Member. **114. Term of office.—The Chairperson of the Appellate Tribunal or a Member of the Appellate** Tribunal shall hold office as such for a term of three years from the date on which he enters upon his office: Provided that such Chairperson or other Member shall be eligible for re-appointment for a second term of three years: Provided further that no Chairperson of the Appellate Tribunal or Member of the Appellate Tribunal shall hold office as such after he has attained,— (a) in the case of the Chairperson of the Appellate Tribunal, the age of seventy years; (b) in the case of a Member of the Appellate Tribunal, the age of sixty-five years. 56 ----- **115. Terms and conditions of service.—The salary and allowances payable to, and the other terms** and conditions of service of, the Chairperson of the Appellate Tribunal and Members of the Appellate Tribunal shall be such as may be prescribed by the Central Government: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall be varied to his disadvantage after appointment. **116. Vacancies.—If, for reason other than temporary absence, any vacancy occurs in the office of the** Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal, the Central Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Appellate Tribunal from the stage at which the vacancy is filled. **117. Resignation and removal.—(1) The Chairperson of the Appellate Tribunal or a Member of the** Appellate Tribunal may, by notice in writing under his hand addressed to the Central Government, resign his office: Provided that the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of term of office, whichever is the earliest. (2) The Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall not be removed from his office except by an order by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a judge of the Supreme Court as the Central Government may appoint for this purpose in which the Chairperson or a Member of the Appellate Tribunal concerned has been informed of the charges against him and given a reasonable opportunity of being heard in respect of such charges. 1[117A. Qualifications, terms and conditions of service of Chairperson and Member.— Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other term and conditions of service of the Chairperson and other Members of the Appellate Tribunal appointed after the commencement of [2][the Tribunals Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]: Provided that the Chairperson and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.] **118. Member to act as Chairperson in certain circumstances.—(1) In the event of the occurrence** of any vacancy in the office of the Chairperson of the Appellate Tribunal by reason of his death, resignation or otherwise, the senior-most Member of the Appellate Tribunal shall act as the Chairperson of the Appellate Tribunal until the date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office. (2) When the Chairperson of the Appellate Tribunal is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member of the Appellate Tribunal shall discharge the functions of the Chairperson of the Appellate Tribunal until the date on which the Chairperson of the Appellate Tribunal resumes his duties. 1. Ins. by Act 7 of 2017, s. 180 (w.e.f. 26-5-2017). 2. Subs. by Act 33 of 2021, s. 25, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of the section 184 of that Act” (w.e.f. 4-4-2021). 57 ----- **119. Officers and other employees of Appellate Tribunal.— (1) The Central Government shall** provide the Appellate Tribunal with such officers and other employees as it may deem fit. (2) The officers and other employees of the Appellate Tribunal shall discharge their functions under the general superintendence of the Chairperson of the Appellate Tribunal. (3) The salaries and allowances and other terms and conditions of service of the officers and other employees of the Appellate Tribunal shall be such as may be prescribed by the Central Government. **120. Procedure and powers of Appellate Tribunal.— (1) The Appellate Tribunal shall not be** bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Appellate Tribunal shall have powers to regulate its own procedure. (2) The Appellate Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing a representation of default or deciding it ex parte; (h) setting aside any order of dismissal or any representation for default or any order passed by it _ex parte;_ (i) any other matter which may be prescribed by the Central Government. (3) An order made by the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil court and, for this purpose, the Appellate Tribunal shall have all the powers of a civil court. (4) Notwithstanding anything contained in sub-section (3), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that court. (5) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Appellate Tribunal shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). 1[121. Power of Appellate Tribunal.—The Appellate Tribunal may, after hearing the Appropriate Commission or other interested party, if any, from time to time, issue such orders, instructions or directions as it may deem fit, to any Appropriate Commission for the performance of its statutory functions under this Act.] **122. Distribution of business amongst Benches and transfer of cases from one Bench to another** **Bench.–(1) Where Benches are constituted, the Chairperson of the Appellate Tribunal may, from time to** time, by notification, make provisions as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with by each Bench. 1. Subs. by Act 57 of 2003, s. 4, for section 121 (w.e.f. 27-1-2004). 58 ----- (2) On the application of any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Chairperson of the Appellate Tribunal may transfer any case pending before one Bench, for disposal, to any other Bench. **123. Decision to be by majority.—If the Members of the Appellate Tribunal of a Bench consisting** of two Members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson of the Appellate Tribunal who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other Members of the Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of the Members of the Appellate Tribunal who have heard the case, including those who first heard it. **124. Right of appellant to take assistance of legal practitioner and of Appropriate Commission** **to appoint presenting officers.— (1) A person preferring an appeal to the Appellate Tribunal under this** Act may either appear in person or take the assistance of a legal practitioner of his choice to present his case before the Appellate Tribunal, as the case may be. (2) The Appropriate Commission may authorise one or more legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal, as the case may be. **125. Appeal to Supreme Court.—Any person aggrieved by any decision or order of the Appellate** Tribunal, may, file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal, to him, on any one or more of the grounds specified in section 100 of the Code of Civil Procedure, 1908 (5 of 1908): Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. PART XII INVESTIGATION AND ENFORCEMENT **126. Assessment.— (1) If on an inspection of any place or premises or after inspection of the** equipments, gadgets, machines, devices found connected or used, or after inspection of records maintained by any person, the assessing officer comes to the conclusion that such person is indulging in unauthorised use of electricity, he shall provisionally assess to the best of his judgment the electricity charges payable by such person or by any other person benefited by such use. (2) The order of provisional assessment shall be served upon the person in occupation or possession or in charge of the place or premises in such manner as may be prescribed. 1[(3) The person, on whom an order has been served under sub-section (2), shall be entitled to file objections, if any, against the provisional assessment before the assessing officer, who shall, after affording a reasonable opportunity of hearing to such person, pass a final order of assessment within thirty days from the date of service of such order of provisional assessment, of the electricity charges payable by such person.] (4) Any person served with the order of provisional assessment may, accept such assessment and deposit the assessed amount with the licensee within seven days of service of such provisional assessment order upon him: 2* - - - 3[(5) If the assessing officer reaches to the conclusion that unauthorised use of electricity has taken place, the assessment shall be made for the entire period during which such unauthorised use of electricity 1. Subs. by Act 26 of 2007, s. 11, for sub-section (3) (w.e.f. 15-6-2007). 2. The proviso omitted by s. 11, ibid. (w.e.f. 15-6-2007). 3. Subs. by s. 11, ibid., for sub-section (5) (w.e.f. 15-6-2007). 59 ----- has taken place and if, however, the period during which such unauthorised use of electricity has taken place cannot be ascertained, such period shall be limited to a period of twelve months immediately preceding the date of inspection.] (6) The assessment under this section shall be made at a rate equal to [1][twice] the tariff applicable for the relevant category of services specified in sub-section (5). _Explanation.—For the purposes of this section, —_ (a) “assessing officer” means an officer of a State Government or Board or licensee, as the case may be, designated as such by the State Government; (b) “unauthorised use of electricity” means the usage of electricity– (i) by any artificial means; or (ii) by a means not authorised by the concerned person or authority or licensee; or (iii) through a tampered meter; or 2[(iv) for the purpose other than for which the usage of electricity was authorised; or (v) for the premises or areas other than those for which the supply of electricity was authorised.] **127. Appeal to Appellate Authority.—(1) Any person aggrieved by the final order made under** section 126 may, within thirty days of the said order, prefer an appeal in such form, verified in such manner and be accompanied by such fee as may be specified by the State Commission, to an appellate authority as may be prescribed. (2) No appeal against an order of assessment under sub-section (1) shall be entertained unless an amount equal to [3][half of the assessed amount] is deposited in cash or by way of bank draft with the licensee and documentary evidence of such deposit has been enclosed along with the appeal. (3) The appellate authority referred to in sub-section (1) shall dispose of the appeal after hearing the parties and pass appropriate order and send copy of the order to the assessing officer and the appellant. (4) The order of the appellate authority referred to in sub-section (1) passed under sub-section (3) shall be final. (5) No appeal shall lie to the appellate authority referred to in sub-section (1) against the final order made with the consent of the parties. (6) When a person defaults in making payment of assessed amount, he, in addition to the assessed amount shall be liable to pay, on the expiry of thirty days from the date of order of assessment, an amount of interest at the rate of sixteen per cent. per annum compounded every six months. **128. Investigation of certain matters.—(1) The Appropriate Commission may, on being satisfied** that a licensee has failed to comply with any of the conditions of licence or a generating company or a licensee has failed to comply with any of the provisions of this Act or the rules or regulations made thereunder, at any time, by order in writing, direct any person (hereafter in this section referred to as “Investigating Authority”) specified in the order to investigate the affairs of any generating company or licensee and to report to that Commission on any investigation made by such Investigating Authority: 1. Subs. by Act 26 of 2007, s. 11, for “one-and-half times” (w.e.f. 15-6-2007). 2. Subs. by s. 11, ibid., for sub-clause (iv) (w.e.f. 15-6-2007). 3. Subs. by s. 12, ibid., for “one-third of the assessed amount” (w.e.f. 15-6-2007). 60 ----- Provided that the Investigating Authority may, wherever necessary, employ any auditor or any other person for the purpose of assisting him in any investigation under this section. (2) Notwithstanding anything to the contrary contained in section 235 of the Companies Act, 1956 (1 of 1956), the Investigating Authority may, at any time, and shall, on being directed so to do by the Appropriate Commission, cause an inspection to be made, by one or more of its officers, of any licensee or generating company and his books of account; and the Investigating Authority shall supply to the licensee or generating company, as the case may be, a copy of his report on such inspection. (3) It shall be the duty of every manager, managing director or other officer of the licensee or generating company, as the case may be, to produce before the Investigating Authority directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers and other documents in his custody or power and to furnish him with any statement and information relating to the affairs of the licensee or generating company, as the case may be, as the said Investigating Authority may require of him within such time as the said Investigating Authority may specify. (4) Any Investigating Authority, directed to make an investigation under sub-section (1), or inspection under sub-section (2), may examine on oath any manager, managing director or other officer of the licensee or generating company, as the case may be, in relation to his business and may administer oaths accordingly. (5) The Investigating Authority, shall, if it has been directed by the Appropriate Commission to cause an inspection to be made, and may, in any other case, report to the Appropriate Commission on any inspection made under this section. (6) On receipt of any report under sub-section (1) or sub-section (5), the Appropriate Commission may, after giving such opportunity to the licensee or generating company, as the case may be, to make a representation in connection with the report as in the opinion of the Appropriate Commission seems reasonable, by order in writing— (a) require the licensee or the generating company to take such action in respect of any matter arising out of the report as the Appropriate Commission may think fit; or (b) cancel the licence; or (c) direct the generating company to cease to carry on the business of generation of electricity. (7) The Appropriate Commission may, after giving reasonable notice to the licensee or the generating company, as the case may be, publish the report submitted by the Investigating Authority under sub-section (5) or such portion thereof as may appear to it to be necessary. (8) The Appropriate Commission may specify the minimum information to be maintained by the licensee or the generating company in their books, the manner in which such information shall be maintained, the checks and other verifications to be adopted by licensee or the generating company in that connection and all other matters incidental thereto as are, in its opinion, necessary to enable the Investigating Authority to discharge satisfactorily its functions under this section. _Explanation.–For the purposes of this section, the expression “licensee or the generating company”_ shall include in the case of a licensee incorporated in India– (a) all its subsidiaries formed for the purpose of carrying on the business of generation or transmission or distribution or trading of electricity exclusively outside India; and (b) all its branches whether situated in India or outside India. (9) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the licensee or the generating company, as the case may be, and shall have priority over the debts due from the licensee or the generating company and shall be recoverable as an arrear of land revenue. 61 ----- **129. Orders for securing compliance.— (1) Where the Appropriate Commission, on the basis of** material in its possession, is satisfied that a licensee is contravening, or is likely to contravene, any of the conditions mentioned in his licence or conditions for grant of exemption or the licensee or the generating company has contravened or is likely to contravene any of the provisions of this Act, it shall, by an order, give such directions as may be necessary for the purpose of securing compliance with that condition or provision. (2) While giving direction under sub-section (1), the Appropriate Commission shall have due regard to the extent to which any person is likely to sustain loss or damage due to such contravention. **130. Procedure for issuing directions by Appropriate Commission.—The Appropriate** Commission, before issuing any direction under section 129, shall– (a) serve notice in the manner as may be specified to the concerned licensee or the generating company; (b) publish the notice in the manner as may be specified for the purpose of bringing the matters to the attention of persons, likely to be affected, or affected; (c) consider suggestions and objections from the concerned licensee or generating company and the persons, likely to be affected, or affected. PART XIII REORGANISATION OF BOARD **131. Vesting of property of Board in State Government.— (1) With effect from the date on which** a transfer scheme, prepared by the State Government to give effect to the objects and purposes of this Act, is published or such further date as may be stipulated by the State Government (hereafter in this Part referred to as the effective date), any property, interest in property, rights and liabilities which immediately before the effective date belonged to the State Electricity Board (hereinafter referred to as the Board) shall vest in the State Government on such terms as may be agreed between the State Government and the Board. (2) Any property, interest in property, rights and liabilities vested in the State Government under sub-section (1) shall be re-vested by the State Government in a Government company or in a company or companies, in accordance with the transfer scheme so published along with such other property, interest in property, rights and liabilities of the State Government as may be stipulated in such scheme, on such terms and conditions as may be agreed between the State Government and such company or companies being State Transmission Utility or generating company or transmission licensee or distribution licensee, as the case may be: Provided that the transfer value of any assets transferred hereunder shall be determined, as far as may be, based on the revenue potential of such assets at such terms and conditions as may be agreed between the State Government and the State Transmission Utility or generating company or transmission licensee or distribution licensee, as the case may be. (3) Notwithstanding anything contained in this section, where,– (a) the transfer scheme involves the transfer of any property or rights to any person or undertaking not wholly owned by the State Government, the scheme shall give effect to the transfer only for fair value to be paid by the transferee to the State Government; (b) a transaction of any description is effected in pursuance of a transfer scheme, it shall be binding on all persons including third parties and even if such persons or third parties have not consented to it. (4) The State Government may, after consulting the Government company or company or companies being State Transmission Utility or generating company or transmission licensee or distribution licensee, referred to in sub-section (2) (hereinafter referred to as the transferor), require such transferor to draw up 62 ----- a transfer scheme to vest in a transferee being any other generating company or transmission licensee or distribution licensee, the property, interest in property, rights and liabilities which have been vested in the transferor under this section, and publish such scheme as statutory transfer scheme under this Act. (5) A transfer scheme under this section may– (a) provide for the formation of subsidiaries, joint venture companies or other schemes of division, amalgamation, merger, reconstruction or arrangements which shall promote the profitability and viability of the resulting entity, ensure economic efficiency, encourage competition and protect consumer interests; (b) define the property, interest in property, rights and liabilities to be allocated– (i) by specifying or describing the property, rights and liabilities in question; or (ii) by referring to all the property, interest in property, rights and liabilities comprised in a described part of the transferor's undertaking; or (iii) partly in one way and partly in the other; (c) provide that any rights or liabilities stipulated or described in the scheme shall be enforceable by or against the transferor or the transferee; (d) impose on the transferor an obligation to enter into such written agreements with or execute such other instruments in favour of any other subsequent transferee as may be stipulated in the scheme; (e) mention the functions and duties of the transferee; (f) make such supplemental, incidental and consequential provisions as the transferor considers appropriate including provision stipulating the order as taking effect; and (g) provide that the transfer shall be provisional for a stipulated period. (6) All debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by the Board, with the Board or for the Board, or the State Transmission Utility or generating company or transmission licensee or distribution licensee, before a transfer scheme becomes effective shall, to the extent specified in the relevant transfer scheme, be deemed to have been incurred, entered into or done by the Board, with the Board or for the State Government or the transferee and all suits or other legal proceedings instituted by or against the Board or transferor, as the case may be, may be continued or instituted by or against the State Government or concerned transferee, as the case may be. (7) The Board shall cease to be charged with and shall not perform the functions and duties with regard to transfers made on and after the effective date. _Explanation.–For the purpose of this Part,–_ (a) “Government company” means a Government Company formed and registered under the Companies Act, 1956 (1 of 1956). (b) “company” means a company to be formed and registered under the Companies Act, 1956 (1 of 1956) to undertake generation or transmission or distribution in accordance with the scheme under this Part. **132. Use of proceeds of sale or transfer of Board, etc.–In the event that a Board or any utility** owned or controlled by the Appropriate Government is sold or transferred in any manner to a person who is not owned or controlled by the Appropriate Government, the proceeds from such sale or transfer shall be utilised in priority to all other dues in the following order, namely:– (a) dues (including retirement benefits due) to the officers and employees of such Board or utility, who have been affected by the aforesaid sale or transfer; 63 ----- (b) payment of debt or other liabilities of the transferor as may be required by the existing loan covenants. **133. Provisions relating to officers and employees.— (1) The State Government may, by a transfer** scheme, provide for the transfer of the officers and employees to the transferee on the vesting of properties, rights and liabilities in such transferee as provided under section 131. (2) Upon such transfer under the transfer scheme, the personnel shall hold office or service under the transferee on such terms and conditions as may be determined in accordance with the transfer scheme: Provided that such terms and conditions on the transfer shall not in any way be less favourable than those which would have been applicable to them if there had been no such transfer under the transfer scheme: Provided further that the transfer can be provisional for a stipulated period. _Explanation.–For the purposes of this section and the transfer scheme, the expression “officers and_ employees” shall mean all officers and employees who on the date specified in the scheme are the officers and employees of the Board or transferor, as the case may be. **134. Payment of compensation or damages on transfer.—Notwithstanding anything contained in** the Industrial Disputes Act, 1947 (14 of 1947) or any other law for the time being in force and except for the provisions made in this Act, the transfer of the employment of the officers and employees referred to in sub-section (1) of section 133 shall not entitle such officers and employees to any compensation or damages under this Act, or any other Central or State law, save as provided in the transfer scheme. PART XIV OFFENCES AND PENALTIES **135. Theft of electricity.—[1][(1) Whoever, dishonestly,–** (a) taps, makes or causes to be made any connection with overhead, underground or under water lines or cables, or service wires, or service facilities of a licensee or supplier, as the case may be; or (b) tampers a meter, installs or uses a tampered meter, current reversing transformer, loop connection or any other device or method which interferes with accurate or proper registration, calibration or metering of electric current or otherwise results in a manner whereby electricity is stolen or wasted; or (c) damages or destroys an electric meter, apparatus, equipment, or wire or causes or allows any of them to be so damaged or destroyed as to interfere with the proper or accurate metering of electricity; or (d) uses electricity through a tampered meter; or (e) uses electricity for the purpose other than for which the usage of electricity was authorised, so as to abstract or consume or use electricity shall be punishable with imprisonment for a term which may extend to three years or with fine or with both: Provided that in a case where the load abstracted, consumed, or used or attempted abstraction or attempted consumption or attempted use– (i) does not exceed 10 kilowatt, the fine imposed on first conviction shall not be less than three times the financial gain on account of such theft of electricity and in the event of second or subsequent conviction the fine imposed shall not be less than six times the financial gain on account of such theft of electricity; 1. Subs. by Act 26 of 2007, s. 13, for sub-section (1) (w.e.f. 15-6-2007). 64 ----- (ii) exceeds 10 kilowatt, the fine imposed on first conviction shall not be less than three times the financial gain on account of such theft of electricity and in the event of second or subsequent conviction, the sentence shall be imprisonment for a term not less than six months, but which may extend to five years and with fine not less than six times the financial gain on account of such theft of electricity: Provided further that in the event of second and subsequent conviction of a person where the load abstracted, consumed, or used or attempted abstraction or attempted consumption or attempted use exceeds 10 kilowatt, such person shall also be debarred from getting any supply of electricity for a period which shall not be less than three months but may extend to two years and shall also be debarred from getting supply of electricity for that period from any other source or generating station: Provided also that if it is proved that any artificial means or means not authorised by the Board or licensee or supplier, as the case may be, exist for the abstraction, consumption or use of electricity by the consumer, it shall be presumed, until the contrary is proved, that any abstraction, consumption or use of electricity has been dishonestly caused by such consumer. (1A) Without prejudice to the provisions of this Act, the licensee or supplier, as the case may be, may, upon detection of such theft of electricity, immediately disconnect the supply of electricity: Provided that only such officer of the licensee or supplier, as authorised for the purpose by the Appropriate Commission or any other officer of the licensee or supplier, as the case may be, of the rank higher than the rank so authorised shall disconnect the supply line of electricity: Provided further that such officer of the licensee or supplier, as the case may be, shall lodge a complaint in writing relating to the commission of such offence in police station having jurisdiction within twenty-four hours from the time of such disconnection: Provided also that the licensee or supplier, as the case may be, on deposit or payment of the assessed amount or electricity charges in accordance with the provisions of this Act, shall, without prejudice to the obligation to lodge the complaint as referred to in the second proviso to this clause, restore the supply line of electricity within forty-eight hours of such deposit or payment.] (2) [1][Any officer of the licensee or supplier as the case may be, authorised] in this behalf by the State Government may– (a) enter, inspect, break open and search any place or premises in which he has reason to believe that electricity [2][has been or is being] used unauthorisedly; (b) search, seize and remove all such devices, instruments, wires and any other facilitator or article which [2][has been, or is being] used for unauthorised use of electricity; (c) examine or seize any books of account or documents which in his opinion shall be useful for or relevant to, any proceedings in respect of the offence under sub-section (1) and allow the person from whose custody such books of account or documents are seized to make copies thereof or take extracts therefrom in his presence. (3) The occupant of the place of search or any person on his behalf shall remain present during the search and a list of all things seized in the course of such search shall be prepared and delivered to such occupant or person who shall sign the list: Provided that no inspection, search and seizure of any domestic places or domestic premises shall be carried out between sunset and sunrise except in the presence of an adult male member occupying such premises. (4) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to search and seizure shall apply, as far as may be, to searches and seizure under this Act. 1. Subs. by Act 26 of 2007, s. 13, for “Any officer authorised” (w.e.f. 15-6-2007). 2. Subs. by Act 57 of 2003, s. 5, for “has been, is being, or is likely to be,” (w.e.f. 27-1-2004). 65 ----- **136. Theft of electric lines and materials.—(1) Whoever, dishonestly–** (a) cuts or removes or takes way or transfers any electric line, material or meter from a tower, pole, any other installation or place of installation or any other place, or site where it may be rightfully or lawfully stored, deposited, kept, stocked, situated or located, including during transportation, without the consent of the licensee or the owner, as the case may be, whether or not the act is done for profit or gain; or (b) stores, possesses or otherwise keeps in his premises, custody or control, any electric line, material or meter without the consent of the owner, whether or not the act is committed for profit or gain; or (c) loads, carries, or moves from one place to another any electric line, material or meter without the consent of its owner, whether or not the act is done for profit or gain, is said to have committed an offence of theft of electric lines and materials, and shall be punishable with imprisonment for a term which may extend to three years or with fine or with both. (2) If a person, having been convicted of an offence punishable under sub-section (1) is again guilty of an offence punishable under that sub-section, he shall be punishable for the second or subsequent offence for a term of imprisonment which shall not be less than six months but which may extend to five years and shall also be liable to fine which shall not be less than ten thousand rupees. **137. Punishment for receiving stolen property.—Whoever, dishonestly receives any stolen electric** line or material knowing or having reasons to believe the same to be stolen property, shall be punishable with imprisonment of either description for a term which may extend to three years or with fine or with both. **138. Interference with meters or works of licensee.— (1) Whoever,–** (a) unauthorisedly connects any meter, indicator or apparatus with any electric line through which electricity is supplied by a licensee or disconnects the same from any such electric line; or (b) unauthorisedly reconnects any meter, indicator or apparatus with any electric line or other works being the property of a licensee when the said electric line or other works has or have been cut or disconnected; or (c) lays or causes to be laid, or connects up any works for the purpose of communicating with any other works belonging to a licensee; or (d) maliciously injures any meter, indicator, or apparatus belonging to a licensee or wilfully or fraudulently alters the index of any such meter, indicator or apparatus or prevents any such meter, indicator or apparatus from duly registering, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to ten thousand rupees, or with both, and, in the case of a continuing offence, with a daily fine which may extend to five hundred rupees; and if it is proved that any means exist for making such connection as is referred to in clause (a) or such re-connection as is referred to in clause (b), or such communication as is referred to in clause (c), for causing such alteration or prevention as is referred to in clause (d), and that the meter, indicator or apparatus is under the custody or control of the consumer, whether it is his property or not, it shall be presumed, until the contrary is proved, that such connection, reconnection, communication, alteration, prevention or improper use, as the case may be, has been knowingly and wilfully caused by such consumer. 66 ----- 1[139. Negligently breaking or damaging works.—Whoever, negligently breaks, injures, throws down or damages any material connected with the supply of electricity, shall be punishable with fine which may extend to ten thousand rupees. **140. Penalty for intentionally injuring works.—Whoever, with intent to cut off the supply of** electricity, cuts or injures, or attempts to cut or injure, any electric supply line or works, shall be punishable with fine which may extend to ten thousand rupees.] **141. Extinguishing public lamps.—Whoever, maliciously extinguishes any public lamp shall be** punishable with fine which may extend to two thousand rupees. **142. Punishment for non-compliance of directions by Appropriate Commission.—In case any** complaint is filed before the Appropriate Commission by any person or if that Commission is satisfied that any person has contravened any of the provisions of this Act or the rules or regulations made thereunder, or any direction issued by the Commission, the Appropriate Commission may after giving such person an opportunity of being heard in the matter, by order in writing, direct that, without prejudice to any other penalty to which he may be liable under this Act, such person shall pay, by way of penalty, which shall not exceed one lakh rupees for each contravention and in case of a continuing failure with an additional penalty which may extend to six thousand rupees for every day during which the failure continues after contravention of the first such direction. **143. Power to adjudicate.—(1) For the purpose of adjudging under this Act, the Appropriate** Commission shall appoint any of its Members to be an adjudicating officer for holding an inquiry in such manner as may be prescribed by the Appropriate Government, after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty. (2) While holding an inquiry, the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject-matter of the inquiry, and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of section 29 or section 33 or section 43, he may impose such penalty as he thinks fit in accordance with the provisions of any of those sections. **144. Factors to be taken into account by adjudicating officer.—While adjudicating the quantum of** penalty under section 29 or section 33 or section 43, the adjudicating officer shall have due regard to the following factors, namely:– (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the repetitive nature of the default. **145. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which an assessing officer referred to in section 126 or an appellate authority referred to in section 127 or the adjudicating officer appointed under this Act is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **146. Punishment for non-compliance of orders or directions.—Whoever, fails to comply with any** order or direction given under this Act, within such time as may be specified in the said order or direction or contravenes or attempts or abets the contravention of any of the provisions of this Act or any rules or regulations made thereunder, shall be punishable with imprisonment for a term which may extend to three 1. Subs. by Act 57 of 2003, s. 6, for sections 139 and 140 (w.e.f. 27-1-2004). 67 ----- months or with fine which may extend to one lakh rupees, or with both in respect of each offence and in the case of a continuing failure, with an additional fine which may extend to five thousand rupees for every day during which the failure continues after conviction of the first such offence: 1[Provided that nothing contained in this section shall apply to the orders, instructions or directions issued under section 121.] **147. Penalties not to affect other liabilities.—The penalties imposed under this Act shall be in** addition to, and not in derogation of, any liability in respect of payment of compensation or, in the case of a licensee, the revocation of his licence which the offender may have incurred. **148. Penalty where works belong to Government.—The provisions of this Act shall, so far as they** are applicable, be deemed to apply also when the acts made punishable thereunder are committed in the case of electricity supplied by or of works belonging to the Appropriate Government. **149. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of and was responsible to the company for the conduct of the business of the company, as well as the company shall be deemed to be guilty of having committed the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of having committed such offence and shall be liable to be proceeded against and punished accordingly. _Explanation.–For the purposes of this section,–_ (a) “company” means a body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **150. Abetment.—(1) Whoever abets an offence punishable under this Act, shall, notwithstanding** anything contained in the Indian Penal Code (45 of 1860), be punished with the punishment provided for the offence. (2) Without prejudice to any penalty or fine which may be imposed or prosecution proceeding which may be initiated under this Act or any other law for the time being in force, if any officer or other employee of the Board or the licensee enters into or acquiesces in any agreement to do, abstains from doing, permits, conceals or connives at any act or thing whereby any theft of electricity is committed, he shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both. 1. Ins. by Act 57 of 2003, s. 7 (w.e.f. 27-1-2004). 68 ----- 1[(3) Notwithstanding anything contained in sub-section (1) of section 135, sub-section (1) of section 136, section 137 and section 138, the licence or certificate of competency or permit or such other authorisation issued under the rules made or deemed to have been made under this Act to any person who acting as an electrical contractor, supervisor or worker abets the commission of an offence punishable under sub-section (1) of section 135, sub-section (1) of section 136, section 137, or section 138, on his conviction for such abetment, may also be cancelled by the licensing authority: Provided that no order of such cancellation shall be made without giving such person an opportunity of being heard. _Explanation.–For the purposes of this sub-section, “licencing authority” means the officer who for the time_ being in force is issuing or renewing such licence or certificate of competency or permit or such other authorisation.] **151. Cognizance of offences.—No court shall take cognizance of an offence punishable under this Act except** upon a complaint in writing made by the Appropriate Government or Appropriate Commission or any of their officer authorised by them or a Chief Electrical Inspector or an Electrical Inspector or licensee or the generating company, as the case may be, for this purpose: 2[Provided that the court may also take cognizance of an offence punishable under this Act upon a report of a police officer filed under section 173 of the Code of Criminal Procedure, 1973 (2 of 1974): Provided further that a special court constituted under section 153 shall be competent to take cognizance of an offence without the accused being committed to it for trial.] **STATE AMENDMENT** **Karnataka** **Substitution of section 151.—For section 151 of the Electricity Act, 2003 (Central Act 36 of 2003), the** following shall be substituted, namely: “151. Institution of prosecution.—No prosecution, shall be instituted against may person for any offence under this Act or any rule, regulation, licence or order made or issued there under, except at the instance of the State Government or a licencee or a generating company under the Act or an officer authorised in this behalf by the State Government or a licencee or a generating company or by any person affected by the act alleged to constitute the offence.” [Vide Karnataka Act 12 of 2006, s. 2] **Maharashtra** **Substitution of section 151 of Act 36 of 2003.—For section 151 of the Electricity Act, 2003 (36 of 2003), in** its application to the State of Maharashtra (hereinafter referred to as “the principal Act”), the following section shall be substituted, namely: “151. Cognizance of offences. —No Court shall take cognizance of an offence punishable under this Act except,— (a) upon a complaint in writing made by Appropriate Government or Appropriate Commission or any of their officer authorised by them or a Chief Electrical Inspector or an Electrical Inspector or a licensee or the generating company, as the case may be, for this purpose; or (b) upon a police report of facts which constitute an offence: Provided that, such police report is based on the First Information Report filed a person who is authorised to file a complaint under clause (a). [Vide **Maharashtra Act 36 of 2005, s. 2]** 3[151A. **Power of police to investigate.—For the purposes of investigation of an offence punishable under this** Act, the police officer shall have all the powers as provided in Chapter XII of the Code of Criminal Procedure, 1973 (2 of 1974). **151B. Certain offences to be cognizable and non-bailable.—Notwithstanding anything contained in the Code** of Criminal Procedure, 1973 (2 of 1974), an offence punishable under sections 135 to 140 or section 150 shall be cognizable and non-bailable.] **152. Compounding of offences.—(1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), the Appropriate Government or any officer authorised by it in this behalf 1. Ins. by Act 26 of 2007, s. 14 (w.e.f. 15-6-2007). 2. Ins. by s.15, ibid. (w.e.f. 15-6-2007). 3. Ins. by s.16, ibid. (w.e.f. 15-6-2007). 69 ----- may accept from any consumer or person who committed or who is reasonably suspected of having committed an offence of theft of electricity punishable under this Act, a sum of money by way of compounding of the offence as specified in the Table below: TABLE Nature of Service Rate at which the sum of money for compounding to be collected per Kilowatt (KW)/Horse Power (HP) or part thereof for Low Tension (LT) supply and per Kilo Volt Ampere (KVA) of contracted demand for High Tension (HT) (1) (2) 1. Industrial Service 2. Commercial Service 3. Agricultural Service 4. Other Services twenty thousand rupees; ten thousand rupees; two thousand rupees; four thousand rupees: Provided that the Appropriate Government may, by notification in the Official Gazette, amend the rates specified in the Table above. (2) On payment of the sum of money in accordance with sub-section (1), any person in custody in connection with that offence shall be set at liberty and no proceedings shall be instituted or continued against such consumer or person in any criminal court. (3) The acceptance of the sum of money for compounding an offence in accordance with sub-section (1) by the Appropriate Government or an officer empowered in this behalf shall be deemed to amount to an acquittal within the meaning of section 300 of the Code of Criminal Procedure, 1973 (2 of 1974). (4) The compounding of an offence under sub-section (1) shall be allowed only once for any person or consumer. PART XV SPECIAL COURTS **153. Constitution of Special Courts.—(1) The State Government may, for the purposes of providing** speedy trial of offences referred to in [1][sections 135 to 140 and section 150], by notification in the Official Gazette, constitute as many Special Courts as may be necessary for such area or areas, as may be specified in the notification. (2) A Special Court shall consist of a single Judge who shall be appointed by the State Government with the concurrence of the High Court. (3) A person shall not be qualified for appointment as a Judge of a Special Court unless he was, immediately before such appointment, an Additional District and Sessions Judge. (4) Where the office of the Judge of a Special Court is vacant, or such Judge is absent from the ordinary place of sitting of such Special Court, or he is incapacitated by illness or otherwise for the performance of his duties, any urgent business in the Special Court shall be disposed of– (a) by a Judge, if any, exercising jurisdiction in the Special Court; 1. Subs. by Act 26 of 2007, s. 17, for “sections 135 to 139” (w.e.f. 15-6-2007). 70 ----- (b) where there is no such other Judge available, in accordance with the direction of District and Sessions Judge having jurisdiction over the ordinary place of sitting of Special Court, as notified under sub-section (1). **STATE AMENDMENT** **Maharashtra** **Amendment of section 153 of Act (36 of 2003).—In section 153 of the principal Act, after sub-section (4), the** following sub-section shall be added, namely:— “(5) Where no Special Court for any area or areas has been constituted under sub-section (1), one or more Additional District and Sessions Judges, as may be designated by the High Court, for such area or areas, from time to time, shall exercise the powers of the Special Court under this Act and any Judge so designated shall be deemed to be a special Court for the purposes of this Act.” [Vide Maharashtra Act 36 of 2005, s. 3] **154. Procedure and power of Special Court.—(1) Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), every offence punishable under [1][sections 135 to 140 and section 150] shall be triable only by the Special Court within whose jurisdiction such offence has been committed. (2) Where it appears to any court in the course of any inquiry or trial that an offence punishable under [1][sections 135 to 140 and section 150] in respect of any offence that the case is one which is triable by a Special Court constituted under this Act for the area in which such case has arisen, it shall transfer such case to such Special Court, and thereupon such case shall be tried and disposed of by such Special Court in accordance with the provisions of this Act: Provided that it shall be lawful for such Special Court to act on the evidence, if any, recorded by any court in the case of presence of the accused before the transfer of the case to any Special Court: Provided further that if such Special Court is of opinion that further examination, cross-examination and re examination of any of the witnesses whose evidence has already been recorded, is required in the interest of justice, it may re-summon any such witness and after such further examination, cross- examination or re-examination, if any, as it may permit, the witness shall be discharged. (3) The Special Court may, notwithstanding anything contained in sub-section (1) of section 260 or section 262 of the Code of Criminal Procedure, 1973 (2 of 1974), try the offence referred to in [1][sections 135 to 140 and section 150] in a summary way in accordance with the procedure prescribed in the said Code and the provisions of sections 263 to 265 of the said Code shall, so far as may be, apply to such trial: Provided that where in the course of a summary trial under this sub-section, it appears to the Special Court that the nature of the case is such that it is undesirable to try such case in summary way, the Special Court shall recall any witness who may have been examined and proceed to re-hear the case in the manner provided by the provisions of the said Code for the trial of such offence: Provided further that in the case of any conviction in a summary trial under this section, it shall be lawful for a Special Court to pass a sentence of imprisonment for a term not exceeding five years. (4) A Special Court may, with a view to obtaining the evidence of any person supposed to have been directly or indirectly concerned in or privy to, any offence tender pardon to such person on condition of his making a full and true disclosure of the circumstances within his knowledge relating to the offence and to every other person concerned whether as principal or abettor in the commission thereof, and any pardon so tendered shall, for the purposes of section 308 of the Code of Criminal Procedure, 1973 (2 of 1974), be deemed to have been tendered under section 307 thereof. (5) The [2][Special Court shall] determine the civil liability against a consumer or a person in terms of money for theft of energy which shall not be less than an amount equivalent to two times of the tariff rate applicable for a period of twelve months preceding the date of detection of theft of energy or the exact period of theft if determined whichever is less and the amount of civil liability so determined shall be recovered as if it were a decree of civil court. 1. Subs. by Act 26 of 2007, s. 18, for “sections 135 to 139” (w.e.f. 15-6-2007). 2. Subs. by s. 18, ibid., for “Special Court may” (w.e.f. 15-6-2007). 71 ----- (6) In case the civil liability so determined finally by the Special Court is less than the amount deposited by the consumer or the person, the excess amount so deposited by the consumer or the person, to the Board or licensee or the concerned person, as the case may be, shall be refunded by the Board or licensee or the concerned person, as the case may be, within a fortnight from the date of communication of the order of the Special Court together with interest at the prevailing Reserve Bank of India prime lending rate for the period from the date of such deposit till the date of payment. _Explanation.–For the purposes of this section, “civil liability” means loss or damage incurred by the Board_ or licensee or the concerned person, as the case may be, due to the commission of an offence referred to in 1[sections 135 to 140 and section 150.] **STATE AMENDMENT** **Maharashtra** **Amendment of section 154 of Act 36 of 2003.—In section 154 of the principal Act, for sub-section (1),** the following sub-section shall be substituted, namely: — “(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), — (a) every Special Court may take cognizance of an offence without the accused being committed to it for trial; and (b) every offence punishable under sections 135 to 139 shall be triable only by the Special Court within whose jurisdiction such offence has been committed.” [Vide Maharashtra Act 36 of 2005, s. 4] **155. Special Court to have powers of Court of Session.—Save as otherwise provided in this Act, the** Code of Criminal Procedure, 1973 (2 of 1974), in so far as they are not inconsistent with the provisions of this Act, shall apply to the proceedings before the Special Court and for the purpose of the provisions of the said enactments, the Special Court shall be deemed to be a Court of Session and shall have all powers of a Court of Session and the person conducting a prosecution before the Special Court shall be deemed to be a Public Prosecutor. **156. Appeal and revision.—The High Court may exercise, so far as may be applicable, all the powers** conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974), as if the Special Court within the local limits of the jurisdiction of the High Court is a District Court, or as the case may be, the Court of Session, trying cases within the local limits of jurisdiction of the High Court. **157. Review.—The Special Court may, on a petition or otherwise and in order to prevent miscarriage of** justice, review its judgment or order passed under section 154, but no such review petition shall be entertained except on the ground that it was such order passed under a mistake of fact, ignorance of any material fact or any error apparent on the face of the record: Provided that the Special Court shall not allow any review petition and set aside its previous order or judgment without hearing the parties affected. _Explanation.—For the purposes of this Part, “Special Courts” means the Special Courts constituted under_ sub-section (1) of section 153. PART XVI # DISPUTE RESOLUTION _Arbitration_ **158. Arbitration.—Where any matter is, by or under this Act, directed to be determined by arbitration,** the matter shall, unless it is otherwise expressly provided in the licence of a licensee, be determined by such person or persons as the Appropriate Commission may nominate in that behalf on the application of either 1. Subs. by Act 26 of 2007, s. 18, for “sections 135 to 139” (w.e.f. 15-6-2007). 72 ----- party; but in all other respects the arbitration shall be subject to the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996). PART XVII OTHER PROVISIONS _Protective clauses_ **159. Protection of railways, highways, airports and canals, docks, wharfs and piers.—No person** shall, in the generation, transmission, distribution, supply or use of electricity, in any way injure any railway, highway, airports, tramway, canal or water-way or any dock, wharf or pier vested in or controlled by a local authority, or obstruct or interfere with the traffic on any railway, airway, tramway, canal or water-way. **160. Protection of telegraphic, telephonic and electric signalling lines.—(1) Every person** generating, transmitting, distributing, supplying or using electricity (hereinafter in this section referred to as the “operator") shall take all reasonable precautions in constructing, laying down and placing his electric lines, electrical plant and other works and in working his system, so as not injuriously to affect, whether by induction or otherwise, the working of any wire or line used for the purpose of telegraphic, telephone or electric signalling communication, or the currents in such wire or line. (2) Where any difference or dispute arises between the operator, and the telegraph authority as to whether the operator has constructed, laid down or placed his electric lines, electrical plant or other works, or worked his system, in contravention of sub-section (1), or as to whether the working of any wire, line or current is or is not injuriously affected thereby, the matter shall be referred to the Central Government and the Central Government, unless it is of opinion that the wire or line has been placed in unreasonable proximity to the electric lines, electrical plant or works of the operator after the construction of such lines, plant or works, may direct the operator to make such alterations in, or additions to, his system as may be necessary in order to comply with the provisions of this section, and the operator shall make such alterations or additions accordingly: Provided that nothing in this sub-section shall apply to the repair, renewal or amendment of any electric line or electrical plant so long as the course of the electric line or electrical plant and the amount and nature of the electricity transmitted thereby are not altered. (3) Where the operator makes default in complying with the requirements of this section, he shall make full compensation for any loss or damage incurred by reason thereof, and, where any difference or dispute arises as to the amount of such compensation, the matter shall be determined by arbitration. _Explanation.–For the purposes of this section, a telegraph line shall be deemed to be injuriously_ affected if telegraphic, telephonic or electric signalling communication by means of such line is, whether through induction or otherwise, prejudicially interfered with by an electric line, electrical plant or other work or by any use made thereof. **161. Notice of accidents and inquiries.—(1) If any accident occurs in connection with the** generation, transmission, distribution, supply or use of electricity in or in connection with, any part of the electric lines or electrical plant of any person and the accident results or is likely to have resulted in loss of human or animal life or in any injury to a human being or an animal, such person shall give notice of the occurrence and of any such loss or injury actually caused by the accident, in such form and within such time as may be prescribed, to the Electrical Inspector or such other person as aforesaid and to such other authorities as the Appropriate Government may by general or special order, direct. (2) The Appropriate Government may, if it thinks fit, require any Electrical Inspector, or any other person appointed by it in this behalf, to inquire and report– 73 ----- (a) as to the cause of any accident affecting the safety of the public, which may have been occasioned by or in connection with, the generation, transmission, distribution, supply or use of electricity, or (b) as to the manner in, and extent to, which the provisions of this Act or rules and regulations made thereunder or of any licence, so far as those provisions affect the safety of any person, have been complied with. (3) Every Electrical Inspector or other person holding an inquiry under sub-section (2) shall have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908) for the purpose of enforcing the attendance of witnesses and compelling the production of documents and material objects, and every person required by an Electrical Inspector be legally bound to do so within the meaning of section 176 of the Indian Penal Code (45 of 1860). **162. Appointment of Chief Electrical Inspector and Electrical Inspector.—(1) The Appropriate** Government may, by notification, appoint duly qualified persons to be Chief Electrical Inspector or Electrical Inspectors and every such Inspector so appointed shall exercise the powers and perform the functions of a Chief Electrical Inspector or an Electrical Inspector under this Act and exercise such other powers and perform such other functions as may be prescribed within such areas or in respect of such class of works and electric installations and subject to such restrictions as the Appropriate Government may direct. (2) In the absence of express provision to the contrary in this Act, or any rule made thereunder, an appeal shall lie from the decision of a Chief Electrical Inspector or an Electrical Inspector to the Appropriate Government or if the Appropriate Government, by general or special order so directs, to an Appropriate Commission. **STATE AMENDMENT** **Karnataka** **Amendment of section 162.—In section 162 of the Principal Act, after sub-section (2), the** following shall be inserted, namely: “(3) where no provision is made by Central Government or the Authority in respect of powers and functions and qualifications of Chief Electrical Inspector and Electrical Inspectors, the State Government may by rules prescribe the same.” [Vide Karnataka Act 39 of 2014, s. 3] **163. Power for licensee to enter premises and to remove fittings or other apparatus of** **licensee.—(1) A licensee or any person duly authorised by a licence may, at any reasonable time, and on** informing the occupier of his intention, enter any premises to which electricity is, or has been, supplied by him, of any premises or land, under, over, along, across, in or upon which the electric supply-lines or other works have been lawfully placed by him for the purpose of– (a) inspecting, testing, repairing or altering the electric supply-lines, meters, fittings, works and apparatus for the supply of electricity belonging to the licensee; or (b) ascertaining the amount of electricity supplied or the electrical quantity contained in the supply; or (c) removing where a supply of electricity is no longer required, or where the licensee is authorised to take away and cut off such supply, any electric supply-lines, meters, fittings, works or apparatus belonging to the licensee. 74 ----- (2) A licensee or any person authorised as aforesaid may also, in pursuance of a special order in this behalf made by an Executive Magistrate and after giving not less than twenty-four hours notice in writing to the occupier,– (a) enter any premises or land referred to in sub-section (1) for any of the purposes mentioned therein; (b) enter any premises to which electricity is to be supplied by him, for the purpose of examining and testing the electric wires fittings, works and apparatus for the use of electricity belonging to the consumer. (3) Where a consumer refuses to allow a licensee or any person authorised as aforesaid to enter his premises or land in pursuance of the provisions of sub-section (1) or, sub-section (2), when such licensee or person has so entered, refuses to allow him to perform any act which he is authorised by those sub-sections to perform, or fails to give reasonable facilities for such entry or performance, the licensee may, after the expiry of twenty-four hours from the service of a notice in writing on the consumer, cut off the supply to the consumer for so long as such refusal or failure continues, but for no longer. **164. Exercise of powers of Telegraph Authority in certain cases.—The Appropriate Government** may, by order in writing, for the placing of electric lines or electrical plant for the transmission of electricity or for the purpose of telephonic or telegraphic communications necessary for the proper co-ordination of works, confer upon any public officer, licensee or any other person engaged in the business of supplying electricity under this Act, subject to such conditions and restrictions, if any, as the Appropriate Government may think fit to impose and to the provisions of the Indian Telegraph Act, 1885 (13 of 1885), any of the powers which the telegraph authority possesses under that Act with respect to the placing of telegraph lines and posts for the purposes of a telegraph established or maintained, by the Government or to be so established or maintained. **165. Amendment of sections 40 and 41 of Act 1 of 1894.—(1) In section 40, sub-section (1) of** clause (b) and section 41, sub-section (5) of the Land Acquisition Act, 1894, the term “work” shall be deemed to include electricity supplied or to be supplied by means of the work to be constructed. (2) The Appropriate Government may, on recommendation of the Appropriate Commission in this behalf, if it thinks fit, on the application of any person, not being a company desirous of obtaining any land for its purposes, direct that he may acquire such land under the provisions of the Land Acquisition Act, 1894 (1 of 1894) in the same manner and on the same conditions as it might be acquired if the person were a company. PART XVIII MISCELLANEOUS **166. Coordination Forum.—(1) The Central Government shall constitute a coordination forum** consisting of the Chairperson of the Central Commission and Members thereof, the Chairperson of the Authority, representatives of generating companies and transmission licensees engaged in inter-State transmission of electricity for smooth and coordinated development of the power system in the country. (2) The Central Government shall also constitute a forum of regulators consisting of the Chairperson of the Central Commission and Chairpersons of the State Commissions. (3) The Chairperson of the Central Commission shall be the Chairperson of the Forum of regulators referred to in sub-section (2). (4) The State Government shall constitute a Coordination Forum consisting of the Chairperson of the State Commission and Members thereof representatives of the generating companies, transmission licensee and distribution licensees engaged in generation, transmission and distribution of electricity in that State for smooth and coordinated development of the power system in the State. 75 ----- (5) There shall be a committee in each district to be constituted by the Appropriate Government– (a) to coordinate and review the extension of electrification in each district; (b) to review the quality of power supply and consumer satisfaction; (c) to promote energy efficiency and its conservation. **167. Exemption of electric lines or electrical plants from attachment in certain cases.—Where** any electric lines or electrical plant, belonging to a licensee are placed in or upon any premises or land not being in the possession of the licensee, such electric lines or electrical plant shall not be liable to be taken in execution under any process of any civil court or in any proceedings in insolvency against the person in whose possession the same may be. **168. Protection of action taken in good faith.—No suit, prosecution or other proceeding shall lie** against the Appropriate Government or Appellate Tribunal or the Appropriate Commission or any officer of Appropriate Government, or any Member, Officer or other employee of the Appellate Tribunal or any Members, officer or other employees of the Appropriate Commission or the assessing officer or any public servant for anything done or in good faith purporting to be done under this Act or the rules or regulations made thereunder. **169. Members, officers, etc., of Appellate Tribunal, Appropriate Commission to be public** **servants.—The Chairperson, Members, officers and other employees of the Appellate Tribunal and the** Chairperson, Members, Secretary, officers and other employees of the Appropriate Commission and the assessing officer referred to in section 126 shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **170. Recovery of penalty payable under this Act.—Any penalty payable by a person under this** Act, if not paid, may be recovered as if it were an arrear of land revenue. **171. Services of notices, orders or documents.—(1) Every notice, order or document by or under** this Act required, or authorised to be addressed to any person may be served on him by delivering the same after obtaining signed acknowledgement receipt therefor or by registered post or such means of delivery as may be prescribed– (a) where the Appropriate Government is the addressee, at the office of such officer as the Appropriate Government may prescribe in this behalf; (b) where the Appropriate Commission is the addressee, at the office of the Appropriate Commission; (c) where a company is the addressee, at the registered office of the company or, in the event of the registered office of the company not being in India, at the head office of the company in India; (d) where any other person is the addressee, at the usual or last known place of abode or business of the person. (2) Every notice, order or document by or under this Act required or authorised to be addressed to the owner or occupier of any premises shall be deemed to be properly addressed if addressed by the description of the owner or occupier of the premises (naming the premises), and may be served by delivering it, or a true copy thereof, to some person on the premises, or if there is no person on the premises to whom the same can with reasonable diligence be delivered, by affixing it on some conspicuous part of the premises. **172. Transitional provisions.—Notwithstanding anything to the contrary contained in this Act,—** (a) a State Electricity Board constituted under the repealed laws shall be deemed to be the State Transmission Utility and a licensee under the provisions of this Act for a period of one year from the 76 ----- appointed date or such earlier date as the State Government may notify, and shall perform the duties and functions of the State Transmission Utility and a licensee in accordance with the provisions of this Act and rules and regulations made thereunder: Provided that the State Government may, by notification, authorise the State Electricity Board to continue to function as the State Transmission Utility or a licensee for such further period beyond the said period of one year as may be mutually decided by the Central Government and the State Government; (b) all licences, authorisations, approvals, clearances and permissions granted under the provisions of the repealed laws may, for a period not exceeding one year from the appointed date or such earlier period, as may be notified by the Appropriate Government, continue to operate as if the repealed laws were in force with respect to such licences, authorisations, approvals, clearances and permissions, as the case may be, and thereafter such licences, authorisations, approvals, clearances and permissions shall be deemed to be licences, authorisations, approvals, clearances and permission under this Act and all provisions of this Act shall apply accordingly to such licences, authorisations, approvals, clearances and permissions; (c) the undertaking of the State Electricity Boards established under section 5 of the Electricity (Supply) Act, 1948 (54 of 1948) may after the expiry of the period specified in clause (a) be transferred in accordance with the provisions of Part XIII of this Act; (d) the State Government may, by notification, declare that any or all the provisions contained in this Act, shall not apply in that State for such period, not exceeding six months from the appointed date, as may be stipulated in the notification. **173. Inconsistency in laws.—Nothing contained in this Act or any rule or regulation made** thereunder or any instrument having effect by virtue of this Act, rule or regulation shall have effect in so far as it is inconsistent with any other provisions of the Consumer Protection Act, 1986 (68 of 1986) or the Atomic Energy Act, 1962 (33 of 1962) or the Railways Act, 1989 (24 of 1989). **174. Act to have overriding effect.—Save as otherwise provided in section 173, the provisions of** this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **175. Provisions of this Act to be in addition to and not in derogation of other laws.—The** provisions of this Act are in addition to and not in derogation of any other law for the time being in force. **176. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:– (a) the time within which the objection and suggestions on the draft National Electricity Plan to be invited by the Authority under the proviso to sub-section (4) of section 3; (b) the additional requirements [1][relating to the capital adequacy, creditworthiness or code of conduct] under sixth proviso to section 14; (c) the payment of fees for application for grant of licence under sub-section (1) of section 15; (d) the constitution and functions of the National Load Despatch Centre under sub-section (2) of section 26; 1. Subs. by Act 26 of 2007, s. 19, for “(including the capital adequacy, creditworthiness or code of conduct)” (w.e.f. 15-6-2007). 77 ----- (e) the works of licensees affecting the property of owner or occupier under sub-section (2) of section 67; (f) such other cases which may be prescribed under clause (c) of sub-section (2) of section 68; (g) allowances and fees payable to other Members for attending the meetings of Authority under sub-section (14) of section 70. (h) other terms and conditions of service of the Chairperson and Members of the Authority under sub-section (15) of section 70; (i) the functions and duties of the Central Electricity Authority under section 73; (j) the salary, allowances and other conditions of service of Chairperson and Member of Central Commission under sub-section (2) of section 89; (k) the form and manner in which and the authority before whom oath of office and secrecy should be subscribed under sub-section (3) of section 89; (l) the procedure to be prescribed by the Central Government under the proviso to sub-section (2) of section 90; (m) any other matter required to be prescribed under clause (g) of sub-section (1) of section 94; (n) the form in which the Central Commission shall prepare its annual statement of accounts under sub-section (1) of section 100; (o) the form in which and time at which the Central Commission shall prepare its annual report under sub-section (1) of section 101; (p) the form in which and time at which the Central Commission shall prepare its budget under section 106; (q) the form and the manner of verifying such form, and fee for filing appeal under sub-section (2) of section 111; (r) the salary and allowances payable to and the other terms and conditions of service of the Chairperson of the Appellate Tribunal and Members of the Appellate Tribunal under section 115; (s) the salary and allowances and other conditions of service of the officers and employees of the Appellate Tribunal under sub-section (3) of section 119; (t) the additional matters in respect of which the Appellate Tribunal may exercise the powers of a civil court under clause (i) of sub-section (2) of section 120; (u) the authority to whom the appeal shall be filed under sub-section (1) of section 127; (v) manner of holding inquiry by an adjudicating officer under sub-section (1) of section 143; (w) the form in which and the time at which service of notices to any person or to the Central Government for the purpose under sub-section (1) of section 161; (x) the powers to be exercised and the functions to be performed by the Inspectors under sub-section (1) of section 162; (y) the manner of delivery of every notice, order or document to be served under sub-section (1) of section 171; (z) any other matter which is required to be, or may be, prescribed. **177. Powers of Authority to make regulations.—(1) The Authority may, by notification, make** regulations consistent with this Act and the rules generally to carry out the provisions of this Act. 78 ----- (2) In particular and without prejudice to the generality of the power conferred in sub-section (1), such regulations may provide for all or any of the following matters, namely:– (a) the Grid Standards under section 34; (b) suitable measures relating to safety and electric supply under section 53; (c) the installation and operation of meters under section 55; (d) the rules of procedure for transaction of business under sub-section (9) of section 70; (e) the technical standards for construction of electrical plants and electric lines and connectivity to the grid under clause (b) of section 73; (f) the form and manner in which and the time at which the State Government and licensees shall furnish statistics, returns or other information under section 74. (g) any other matter which is to be, or may be, specified. (3) All regulations made by the Authority under this Act shall be subject to the conditions of previous publication. **178. Powers of Central Commission to make regulations.— (1) The Central Commission may, by** notification make regulations consistent with this Act and the rules generally to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the power contained in sub-section (1), such regulations may provide for all or any of following matters, namely:— (a) period to be specified under the first proviso to section 14; (b) the form and the manner of the application under sub-section (1) of section 15; (c) the manner and particulars of notice under sub-section (2) of section 15; (d) the conditions of licence under section 16; (e) the manner and particulars of notice under clause (a) of sub-section (2) of section 18; (f) publication of alterations or amendments to be made in the licence under clause (c) of sub-section (2) of section 18; (g) Grid Code under sub-section (2) of section 28; (h) levy and collection of fees and charge from generating companies or transmission utilities or licensees under sub-section (4) of section 28; (i) rates, charges and terms and conditions in respect of intervening transmission facilities under proviso to section 36; (j) payment of the transmission charges and a surcharge under sub-clause (ii) of clause (d) of sub-section (2) of section 38; (k) reduction [1]*** of surcharge and cross subsidies under second proviso to sub-clause (ii) of clause (d) of sub-section (2) of section 38; (l) payment of transmission charges and a surcharge under sub-clause (ii) of clause (c) of section 40; (m) reduction [1]*** of surcharge and cross-subsidies under the second proviso to sub-clause (ii) of clause (c) of section 40; 1. The words “and elimination” omitted by Act 26 of 2007, s. 20 (w.e.f. 15-6-2007). 79 ----- (n) proportion of revenues from other business to be utilised for reducing the transmission and wheeling charges under proviso to section 41; (o) duties of electricity trader under sub-section (2) of section 52; (p) standards of performance of a licensee or class of licensees under sub-section (1) of section 57; (q) the period within which information to be furnished by the licensee under sub-section (1) of section 59; 1 [(r) the manner of reduction of cross-subsidies under clause (g) of section 61;] (s) the terms and conditions for the determination of tariff under section 61; (t) details to be furnished by licensee or generating company under sub-section (2) of section 62; (u) the procedures for calculating the expected revenue from tariff and charges under sub-section (5) of section 62; (v) the manner of making an application before the Central Commission and the fee payable therefor under sub-section (1) of section 64; (w) the manner of publication of application under sub-section (2) of section 64; (x) issue of tariff order with modifications or conditions under sub-section (3) of section 64; (y) the manner by which development of market in power including trading specified under section 66; (z) the powers and duties of the Secretary of the Central Commission under sub-section (1) of section 91; (za) the terms and conditions of service of the Secretary, officers and other employees of Central Commission under sub-section (3) of section 91; (zb) the rules of procedure for transaction of business under sub-section (1) of section 92; (zc) minimum information to be maintained by a licensee or the generating company and the manner of such information to be maintained under sub-section (8) of section 128; (zd) the manner of service and publication of notice under section 130; (ze) any other matter which is to be, or may be specified by regulations. (3) All regulations made by the Central Commission under this Act shall be subject to the conditions of previous publication. **179. Rules and regulations to be laid before Parliament.—Every rule made by the Central** Government, every regulation made by the Authority, and every regulation made by the Central Commission shall be laid, as soon as may be after it is made, before each House of the Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. 1. Subs. by Act 26 of 2007, s. 20, for clause (r) (w.e.f. 15-6-2007). 80 ----- **180. Powers of State Governments to make rules.—(1) The State Government may, by** notification, make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the payment of fees for application for grant of licence under sub-section (1) of section 15; (b) the works of licensees affecting the property of other persons under sub-section (2) of section 67; (c) such other matters which may be prescribed under clause (c) of sub-section (2) of section 68; (d) the salary, allowances and other terms and conditions of service of the Chairperson and Members of the State Commission under sub-section (2) of section 89; (e) the form and manner in which and the authority before whom oath of office and secrecy should be subscribed under sub-section (3) of section 89; (f) any other matter required to be prescribed by the State Commission under clause (g) of sub-section (1) of section 94; (g) the manner of applying the Fund under sub-section (3) of section 103; (h) the form in which and the time at which the State Commission shall prepare its annual accounts under sub-section (1) of section 104; (i) the form in which and the time at which the State Commission shall prepare its annual report under sub-section (1) of section 105; (j) the form in which and the time at which the State Commission shall prepare its budget under section 106; (k) manner of service of provisional order of assessment under sub-section (2) of section 126; (l) manner of holding inquiry by an adjudicating officer under sub-section (1) of section 143; (m) the form in which and the time at which notice to the Electrical Inspector under sub-section (1) of section 161; (n) the manner of delivery of every notice, order or document under sub-section (1) of section 171; and (o) any other matter which is required to be, or may be, prescribed. **STATE AMENDMENT** **Karnataka** **Amendment of section 180.—In section 180 of the Principal Act, in sub-section (2),—** (a) after clause (a), the following shall be inserted, namely:— “(aa) Subject to section 53,— (i) regarding procedure of Inspection by the Chief Electrical Inspector and Electrical Inspectors; (ii) regarding terms and conditions and manner of issue of Licence to electrical Contractors, permit to Supervisors and Wireman and Competency certificates; (iii) manner of Scrutiny and approval of Electrical Installation drawings; 81 ----- (iv) Levy of fee for inspections and other services rendered by the Chief Electrical Inspector and Electrical Inspectors; (v) manner of Collection of fee and if not remitted within the stipulated time to recover the same as arrears of land revenue.” (b) after clause (m), the following shall be inserted, namely:— “(mm) Subject to section 162 regarding powers and functions and qualifications of the Chief Electrical Inspector and Electrical Inspectors.” [Vide Karnataka Act 39 of 2014, s. 4] **181. Powers of State Commissions to make regulations.—(1) The State Commissions may, by** notification, make regulations consistent with this Act and the rules generally to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the power contained in sub-section (1), such regulations may provide for all or any of the following matters, namely:— (a) period to be specified under the first proviso to section 14; (b) the form and the manner of application under sub-section (1) of section 15; (c) the manner and particulars of application for licence to be published under sub-section (2) of section 15; (d) the conditions of licence unde section 16; (e) the manner and particulars of notice under clause (a) of sub-section (2) of section 18; (f) publication of the alterations or amendments to be made in the licence under clause (c) of sub-section (2) of section 18; (g) levy and collection of fees and charges from generating companies or licensees under sub-section (3) of section 32; (h) rates, charges and the terms and conditions in respect of intervening transmission facilities under proviso to section 36; (i) payment of the transmission charges and a surcharge under sub-clause (ii) of clause (d) of sub-section (2) of section 39; (j) reduction [1]*** of surcharge and cross subsidies under second proviso to sub-clause (ii) of clause (d) of sub-section (2) of section 39; (k) manner and utilisation of payment and surcharge under the fourth proviso to sub-clause (ii) of clause (d) of sub-section (2) of section 39; (l) payment of the transmission charges and a surcharge under sub-clause (ii) of clause (c) of section 40; (m) reduction [1]*** of surcharge and cross subsidies under second proviso to sub-clause (ii) of clause (c) of section 40; (n) the manner of payment of surcharge under the fourth proviso to sub-clause (ii) of clause (c) of section 40; 1. The words “and elimination” omitted by Act 26 of 2007, s. 21 (w.e.f. 15-6-2007). 82 ----- (o) proportion of revenues from other business to be utilised for reducing the transmission and wheeling charges under the proviso to section 41; (p) reduction [1]*** of surcharge and cross-subsidies under the third proviso to sub-section (2) of section 42; (q) payment of additional charges on charges of wheeling under sub-section (4) of section 42; (r) guidelines under sub-section (5) of section 42; (s) the time and manner for settlement of grievances under sub-section (7) of section 42; (t) the period to be specified by the State Commission for the purposes specified under sub-section (1) of section 43; (u) methods and principles by which charges for electricity shall be fixed under sub-section (2) of section 45; (v) reasonable security payable to the distribution licensee under sub-section (1) of section 47; (w) payment of interest on security under sub-section (4) of section 47; (x) electricity supply code under section 50; (y) the proportion of revenues from other business to be utilised for reducing wheeling charges under the proviso to section 51; (z) duties of electricity trader under sub-section (2) of section 52; (za) standards of performance of a licensee or a class of licensees under sub-section (1) of section 57; (zb) the period within which information to be furnished by the licensee under sub-section (1) of section 59; 2[(zc) the manner of reduction of cross-subsidies under clause (g) of section 61;] (zd) the terms and conditions for the determination of tariff under section 61; (ze) details to be furnished by licensee or generating company under sub-section (2) of section 62; (zf) the methodologies and procedures for calculating the expected revenue from tariff and charges under sub-section (5) of section 62; (zg) the manner of making an application before the State Commission and the fee payable therefor under sub-section (1) of section 64; (zh) issue of tariff order with modifications or conditions under sub-section (3) of section 64; (zi) the manner by which development of market in power including trading specified under section 66; (zj) the powers and duties of the Secretary of the State Commission under sub-section (1) of section 91; (zk) the terms and conditions of service of the secretary, officers and other employees of the State Commission under sub-section (2) of section 91; 1. The words “and elimination” omitted by Act 26 of 2007, s. 21 (w.e.f. 15-6-2007). 2. Subs. by s. 20, ibid., for clause (zc) (w.e.f. 15-6-2007). 83 ----- (zl) rules of procedure for transaction of business under sub-section (1) of section 92; (zm) minimum information to be maintained by a licensee or the generating company and the manner of such information to be maintained under sub-section (8) of section 128; (zn) the manner of service and publication of notice under section 130; (zo) the form of preferring the appeal and the manner in which such form shall be verified and the fee for preferring the appeal under sub-section (1) of section 127; (zp) any other matter which is to be, or may be, specified. (3) All regulations made by the State Commission under this Act shall be subject to the condition of previous publication. **182. Rules and regulations to be laid before State Legislature.—Every rule made by the State** Government and every regulation made by the State Commission shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **183. Power to remove difficulties.— (1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published, make such provisions not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **184. Provisions of Act not to apply in certain cases.—The provisions of this Act shall not apply to** the Ministry or Department of the Central Government dealing with Defence, Atomic Energy or such other similar Ministries or Departments or undertakings or Boards or institutions under the control of such Ministries or Departments as may be notified by the Central Government. **185. Repeal and saving.—(1) Save as otherwise provided in this Act, the Indian Electricity Act,** 1910 (9 of 1910), the Electricity (Supply) Act, 1948 (54 of 1948) and the Electricity Regulatory Commissions Act, 1998 (14 of 998) are hereby repealed. (2) Notwithstanding such repeal,— (a) anything done or any action taken or purported to have been done or taken including any rule, notification, inspection, order or notice made or issued or any appointment, confirmation or declaration made or any licence, permission, authorisation or exemption granted or any document or instrument executed or any direction given under the repealed laws shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act; (b) the provisions contained in sections 12 to 18 of the Indian Electricity Act, 1910 (9 of 1910) and rules made thereunder shall have effect until the rules under sections 67 to 69 of this Act are made; (c) the Indian Electricity Rules, 1956 made under section 37 of the Indian Electricity Act, 1910 (9 of 1910) as it stood before such repeal shall continue to be in force till the regulations under section 53 of this Act are made; (d) all rules made under sub-section (1) of section 69 of the Electricity (Supply) Act, 1948 (54 of 1948) shall continue to have effect until such rules are rescinded or modified, as the case may be; 84 ----- (e) all directives issued, before the commencement of this Act, by a State Government under the enactments specified in the Schedule shall continue to apply for the period for which such directions were issued by the State Government. (3) The provisions of the enactments specified in the Schedule, not inconsistent with the provisions of this Act, shall apply to the States in which such enactments are applicable. (4) The Central Government may, as and when considered necessary, by notification, amend the Schedule. (5) Save as otherwise provided in sub-section (2), the mention of particular matters in that section, shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeals. 85 ----- THE SCHEDULE ENACTMENTS [See sub-section (3) of section 185] 1. The Orissa Electricity Reform Act, 1995 (Orissa Act No. 2 of 1996). 2. The Haryana Electricity Reform Act, 1997 (Haryana Act No. 10 of 1998). 3. The Andhra Pradesh Electricity Reform Act, 1998 (Andhra Pradesh Act No. 30 of 1998). 4. The Uttar Pradesh Electricity Reform Act, 1999 (Uttar Pradesh Act No. 24 of 1999). 5. The Karnataka Electricity Reform Act, 1999 (Karnataka Act No. 25 of 1999). 6. The Rajasthan Electricity Reform Act, 1999 (Rajasthan Act No. 23 of 1999). 7. The Delhi Electricity Reforms Act, 2000 (Delhi Act No. 2 of 2001). 8. The Madhya Pradesh Vidyut Sudhar Adhiniyam, 2000 (Madhya Pradesh Act No. 4 of 2001). 1[9. The Gujarat Electricity Industry (Reorganisation and Regulation) Act, 2003 (Gujarat Act No. 24 of 2003).] 1. Ins. by S.O. No. 1039(E), dated 5-9-2003. 86 -----
26-Aug-2003
39
The Fiscal Responsibility and Budget Management Act, 2003
https://www.indiacode.nic.in/bitstream/123456789/2064/1/a2003-39.pdf
central
# THE FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT, 2003 _________ ARRANGEMENT OF SECTIONS __________ SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Fiscal policy statements to be laid before Parliament. 4. Fiscal management principles. 5. Borrowing from Reserve Bank. 6. Measures for fiscal transparency. 7. Measures to enforce compliance. 7A. Laying of review reports. 8. Power to make rules. 9. Rules to be laid before each House of Parliament. 10. Protection of action taken in good faith. 11. Jurisdiction of civil courts barred. 12. Application of other laws not barred. 13. Power to remove difficulties. 1 ----- # THE FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT, 2003 ACT No. 39 OF 2003 [26th August, 2003.] # An Act to provide for the responsibility of the Central Government to ensure inter-generational equity in fiscal management and long-term macro-economic stability by [1]*** removing fiscal impediments in the effective conduct of monetary policy and prudential debt management consistent with fiscal sustainability through limits on the Central Government borrowings, debt and deficits, greater transparency in fiscal operations of the Central Government and conducting fiscal policy in a medium-term framework and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the Fiscal Responsibility** and Budget Management Act, 2003. (2) It extends to the whole of India. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint in this behalf. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “fiscal deficit” means the excess of total disbursements, from the Consolidated Fund of India, excluding repayment of debt, over total receipts into the Fund (excluding the debt receipts), during a financial year; 3[ 4[(aa) “Central Government debt” at any date means— (i) the total outstanding liabilities of the Central Government on the security of the Consolidated Fund of India, including external debt valued at current exchange rates; (ii) the total outstanding liabilities in the public account of India; and (iii) such financial liabilities of anybody corporate or other entity owned or controlled by the Central Government, which the Government is to repay or service from the annual financial statement, reduced by the cash balance available at the end of that date;]] (b) “fiscal indicators” means the measures such as numerical ceilings and proportions to gross domestic product, as may be prescribed, for evaluation of the fiscal position of the Central Government; 3[ 5[(bb) “general Government debt” means the sum total of the debt of the Central Government and the State Governments, excluding inter-Governmental liabilities;] (bc) “gross domestic product” means the sum of the gross value added by all resident production units plus that part of taxes, less subsidies, on products, which is not included in the valuation of output, during a financial year, reckoned at current market prices, as published by the Central Statistics Office from time to time;] (c) “prescribed” means prescribed by rules made under this Act; 6[(ca) ‘‘real gross domestic product’’ means gross domestic product, reckoned at constant prices, as published by the Central Statistics Office from time to time; (cb) ‘‘real output growth’’ means growth in real gross domestic product;] 1. The words “achieving sufficient revenue surplus and” omitted by Act 13 of 2018, s. 210 (w.e.f 31-3-2018). 2. 5th July, 2004, vide notification No. G.S.R. 395(E), dated 2nd July, 2004, see Gazette of India, Extraordinary, Part II, sec. 3(i). 3. Ins. by Act 23 of 2012, s. 146 (w. e. f. 28-5-2012). 4. Subs. by Act 13 of 2018, s. 211, for clause (aa) (w.e.f 31-3-2018). 5. Subs. by s. 211, ibid., for clause (bb) (w.e.f 31-3-2018). 6. Ins. by s. 211, ibid. (w.e.f. 31-3-2018). 2 ----- (d) “Reserve Bank” means the Reserve Bank of India constituted under sub-section (1) of section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); 1* ***** ***** ***** ***** **3. Fiscal policy statements to be laid before Parliament.—(1) The Central Government shall lay in** each financial year before both Houses of Parliament the following statements of fiscal policy along with the annual financial statement and [2][demands for grants except the Medium-term Expenditure Framework Statement], namely:— (a) the Medium-term Fiscal Policy Statement; (b) the Fiscal Policy Strategy Statement; (c) the Macro-economic Framework Statement; 3[(d) the Medium-term Expenditure Framework Statement.] 3[(1A) The statements referred to in clauses (a) to (c) of sub-section (1) shall be followed up with the Medium-term Expenditure Framework Statement with detailed analysis of underlying assumptions. (1B) The Central Government shall lay the Medium-term Expenditure Framework Statement referred to in clause (d) of sub-section (1) before both Houses of Parliament, immediately following the session of Parliament in which the policy statements referred to in clauses (a) to (c) were laid under sub-section (1).] (2) The Medium-term Fiscal Policy Statement shall set forth a three-year rolling target for prescribed fiscal indicators with specification of underlying assumptions. (3) In particular, and without prejudice to the provisions contained in sub-section (2), the Medium-term Fiscal Policy Statement shall include an assessment of sustainability relating to— 4* - - - (ii) the use of capital receipts including market borrowings for generating productive assets. (4) The Fiscal Policy Strategy Statement shall, inter alia, contain— (a) the policies of the Central Government for the ensuing financial year relating to taxation, expenditure, market borrowings and other liabilities, lending and investments, pricing of administered goods and services, securities and description of other activities such as underwriting and guarantees which have potential budgetary implications; (b) the strategic priorities of the Central Government for the ensuing financial year in the fiscal area; (c) the key fiscal measures and rationale for any major deviation in fiscal measures pertaining to taxation, subsidy, expenditure, administered pricing and borrowings; (d) an evaluation as to how the current policies of the Central Government are in conformity with the fiscal management principles set out in section 4 and the objectives set out in the Medium-term Fiscal Policy Statement. (5) The Macro-economic Framework Statement shall contain an assessment of the growth prospects of the economy with specification of underlying assumptions. (6) In particular and without prejudice to the generality of the foregoing provisions the Macro-economic Framework Statement shall contain an assessment relating to— (a) the growth in the gross domestic product; (b) the fiscal balance of the Union Government as reflected in the [5]*** gross fiscal balance; (c) the external sector balance of the economy as reflected in the current account balance of the balance of payments. 1. Clauses (e) and (f) omitted by Act 13 of 2018, s. 211 (w.e.f. 31-3-2018). 2. Subs. by Act 23 of 2012, s. 147, for “demand for grants” (w. e. f. 28-5-2012). 3. Ins. by s. 147, ibid. (w. e. f. 28-5-2012). 4. Item (i) omitted by Act 13 of 2018, s. 212 (w.e.f. 31-3-2018). 5. The words “revenue balance and” omitted by s. 212, ibid. (w.e.f. 31-3-2018). 3 ----- 1[(6A) (a) The Medium-term Expenditure Framework Statement shall set forth a three-year rolling target for prescribed expenditure indicators with specification of underlying assumptions and risk involved. (b) In particular and without prejudice to the provisions contained in clause (a), the Medium-term Expenditure Framework Statement shall, inter alia, contain— (i) the expenditure commitment of major policy changes involving new service, new instruments of service, new schemes and programmes; (ii) the explicit contingent liabilities, which are in the form of stipulated annuity payments over a multi-year time-frame; 2* - - - (7) The Medium-term Fiscal Policy Statement, [3][the Fiscal Policy Strategy Statement, the Medium term Expenditure Framework Statement] and the Macro-economic Framework Statement referred to in sub-section (1) shall be in such form as may be prescribed. 4[4. Fiscal management principles.—(1) The Central Government shall,— (a) take appropriate measures to limit the fiscal deficit upto three per cent. of gross domestic product by the 31st March, 2021; (b) endeavour to ensure that— (i) the general Government debt does not exceed sixty per cent.; (ii) the Central Government debt does not exceed forty per cent., of gross domestic product by the end of financial year 2024-2025; (c) not give additional guarantees with respect to any loan on security of the Consolidated Fund of India in excess of one-half per cent. of gross domestic product, in any financial year; (d) endeavour to ensure that the fiscal targets specified in clauses (a) and (b) are not exceeded after stipulated target dates. (2) The Central Government shall prescribe the annual targets for reduction of fiscal deficit for the period beginning from the date of commencement of Part XV of Chapter VIII of the Finance Act, 2018 (13 of 2018), and ending on the 31st March, 2021: Provided that exceeding annual fiscal deficit target due to ground or grounds of national security, act of war, national calamity, collapse of agriculture severely affecting farm output and incomes, structural reforms in the economy with unanticipated fiscal implications, decline in real output growth of a quarter by at least three per cent. points below its average of the previous four quarters, may be allowed for the purposes of this section. (3) Any deviation from fiscal deficit target under sub-section (2) shall not exceed one-half per cent. of the gross domestic product in a year. (4) The Central Government shall, in case of increase in real output growth of a quarter by at least three per cent. points above its average of the previous four quarters, reduce the fiscal deficit by at least one-quarter per cent. of the gross domestic product in a year. 1. Ins. by Act 23 of 2012, s. 147 (w. e. f. 28-5-2012). 2. Item (iii) omitted by Act 13 of 2018, s. 212, (w.e.f. 31-3-2018). 3. Subs. by Act 23 of 2012, s. 147, for “the Fiscal Policy Strategy Statement” (w.e.f. 28-5-2012). 4. Subs. by Act 13 of 2018, s. 213, for section 4 (w.e.f. 31-3-2018). 4 ----- (5) Where the fiscal deficit is allowed to vary from the target prescribed under the proviso to sub-section (2) or deviation is initiated under sub-section (4), a statement explaining the reasons thereof and the path of return to annual prescribed targets under this section shall be laid, as soon as may be, before both the Houses of Parliament.] **5. Borrowing from Reserve Bank.—(1) The Central Government shall not borrow from the Reserve** Bank. (2) Notwithstanding anything contained in sub-section (1), the Central Government may borrow from the Reserve Bank by way of advances to meet temporary excess of cash disbursement over cash receipts during any financial year in accordance with the agreements which may be entered into by that Government with the Reserve Bank: Provided that any advances made by the Reserve Bank to meet temporary excess cash disbursement over cash receipts in any financial year shall be repayable in accordance with the provisions contained in sub-section (5) of section 17 of the Reserve Bank of India Act, 1934(2 of 1934). 1[(3) Notwithstanding anything contained in sub-section (1), the Reserve Bank may subscribe to the primary issues of Central Government Securities due to ground or grounds specified in the proviso to sub-section (2) of section 4.] (4) Notwithstanding anything contained in sub-section (1), the Reserve Bank may buy and sell the Central Government securities in the secondary market [2][or converts Central Government Securities held by it with other Securities of the Central Government as mutually agreed between the Reserve Bank and the Central Government]. **6. Measures for fiscal transparency.—(1) The Central Government shall take suitable measures to** ensure greater transparency in its fiscal operations in public interest and minimise as far as practicable, secrecy in the preparation of the annual financial statement and demands for grants. (2) In particular, and without prejudice to the generality of the foregoing provision, the Central Government shall, at the time of presentation of annual financial statement and demands for grants, make such disclosures and in such form as may be prescribed. **7. Measures to enforce compliance.—(1) The Minister-in-charge of the Ministry of Finance shall** review, [3][on half-yearly basis], the trends in receipts and expenditure in relation to the budget and place before both Houses of Parliament the outcome of such reviews. 4[(1A) The Central Government shall prepare a monthly statement of its accounts.] (2) Whenever there is either shortfall in revenue or excess of expenditure over the [5][prescribed levels] during any period in a financial year, the Central Government shall take appropriate measures for increasing revenue or for reducing the expenditure (including curtailing of the sums authorised to be paid and applied from and out of the Consolidated Fund of India under any Act so as to provide for the appropriation of such sums): Provided that nothing in this sub-section shall apply to the expenditure charged on the Consolidated Fund of India under clause (3) of article 112 of the Constitution or to any other expenditure which is required to be incurred under any agreement or contract or such other expenditure which cannot be postponed or curtailed. (3)(a) Except as provided under this Act, no deviation in meeting the obligations cast on the Central Government under this Act, shall be permissible without approval of Parliament. 1. Subs. by Act 13 of 2018, s. 214, for sub-section (3) (w.e.f. 31-3-2018). 2. Ins. by s. 214, ibid. (w.e.f. 31-3-2018). 3. Subs. by s. 215, ibid., for “every quarter” (w.e.f. 31-3-2018). 4. Ins. by s. 215, ibid. (w.e.f. 31-3-2018). 5. Subs. by s. 215, ibid., for “pre-specified levels mentioned in the Fiscal Policy Strategy Statement and the rules made under this Act” (w.e.f. 31-3-2018). 5 ----- (b) Where owing to unforeseen circumstances, any deviation is made in meeting the obligations cast on the Central Government under this Act, the Minister-in-charge of the Ministry of Finance shall make a statement in both Houses of Parliament explaining— (i) any deviation in meeting the obligations cast on the Central Government under this Act; (ii) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes; and (iii) the remedial measures the Central Government proposes to take. 1[7A. Laying of review reports.—The Central Government may entrust the Comptroller and Auditor-General of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament.] **8. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the annual targets to be specified under sub-section (2) of section 4; (b) the fiscal indicators to be prescribed for the purpose of sub-section (2) of section 3; 2[(ba) the expenditure indicators with specifications of underlying assumptions and risk involved under clause (a) of sub-section (6A) of section 3;] (c) the forms of the Medium-term Fiscal Policy Statement, [3][Fiscal Policy Strategy Statement, Medium-term Expenditure Framework Statement] and Macro-economic Frame Work Statement referred to in sub-section (7) of section 3; 4* - - - (d) the disclosures and form in which such disclosures shall be made under sub-section (2) of section 6; [5][(da) the level of short fall in revenue or excess of expenditure under sub-section (2) of section 7;] (e) any other matter which is required to be, or may be, prescribed. **9. Rules to be laid before each House of Parliament.—Every rule made under this Act shall be laid,** as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **10. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government or any officer of the Central Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder. **11. Jurisdiction of civil courts barred.—No civil court shall have jurisdiction to question the** legality of any action taken by, or any decision of, the Central Government, under this Act. **12. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the provisions of any other law for the time being in force. 1. Ins. by Act 23 of 2012, s. 149 (w. e. f. 28-5-2012). 2. Ins. by s. 150, ibid. (w. e. f. 28-5-2012). 3. Subs. by s. 150, ibid., for “Fiscal Policy Strategy Statement” (w.e.f. 28-5-2012). 4. Clause (ca) omitted by Act of 13 of 2018, s. 216 (w.e.f. 31-3-2018), earlier ins. by Act 23 of 2012, s. 149 (w.e.f. 28-5-2012). 5. Ins. by s. 216, ibid. (w.e.f. 31-3-2018). 6 ----- **13. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 7 -----
11-Sep-2003
45
The Central Vigilance Commission Act, 2003
https://www.indiacode.nic.in/bitstream/123456789/2067/1/A2003-45.pdf
central
# THE CENTRAL VIGILANCE COMMISSION ACT, 2003 _____________ # ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title. 2. Definitions. CHAPTER II THE CENTRAL VIGILANCE COMMISSION 3. Constitution of Central Vigilance Commission. 4. Appointment of Central Vigilance Commissioner and Vigilance Commissioners. 5. Terms and other conditions of service of Central Vigilance Commissioner. 6. Removal of Central Vigilance Commissioner and Vigilance Commissioner. 7. Power to make rules by Central Government for staff. CHAPTER III FUNCTIONS AND POWERS OF THE CENTRAL VIGILANCE COMMISSION 8. Functions and powers of Central Vigilance Commission. 8A. Action on preliminary inquiry in relation to public servants. 8B. Action on investigation in relation to public servants. 9. Proceedings of Commission. 10. Vigilance Commissioner to act as Central Vigilance Commissioner in certain circumstances. 11. Power relating to inquiries. 11A. Director of Inquiry for making preliminary inquiry. 12. Proceedings before Commission to be judicial proceedings. CHAPTER IV EXPENSES AND ANNUAL REPORT 13. Expenses of Commission to be charged on the Consolidated Fund of India. 14. Annual report. CHAPTER V MISCELLANEOUS 15. Protection of action taken in good faith. 16. Central Vigilance Commissioner, Vigilance Commissioner and staff to be public servants. 17. Report of any inquiry made on reference by Commission to be forwarded to that Commission. 18. Power to call for information. 19 Consultation with Commission in certain matters ----- SECTIONS 20. Power to make rules. 21. Power to make regulations. 22. Notification, rule, etc., to be laid before Parliament. 23. Power to remove difficulties. 24. Provisions relating to existing Vigilance Commission. 25. Appointments, etc., of officers of Directorate of Enforcement. 26. Amendment of Act 25 of 1946. 27. Repeal and saving. THE SCHEDULE. ----- # THE CENTRAL VIGILANCE COMMISSION ACT, 2003 ACT NO. 45 OF 2003 [11th September, 2003.] # An Act to provide for the constitution of a Central Vigilance Commission to inquire or cause inquiries to be conducted into offences alleged to have been committed under the Prevention of Corruption Act, 1988 by certain categories of public servants of the Central Government, corporations established by or under any Central Act, Government companies, societies and local authorities owned or controlled by the Central Government and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title.—This Act may be called the Central Vigilance Commission Act, 2003.** **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Central Vigilance Commissioner” means the Central Vigilance Commissioner appointed under sub-section (1) of section 4; (b) “Commission” means the Central Vigilance Commission constituted under sub-section (1) of section 3; (c) “Delhi Special Police Establishment” means the Delhi Special Police Establishment constituted under sub-section (1) of section 2 of the Delhi Special Police Establishment Act, 1946 (25 of 1946); (d) “Government company” means a Government company within the meaning of the Companies Act, 1956 (1 of 1956); 1[(da) “Lokpal” means the Lokpal established under sub-section (1) of section 3 of the Lokpal and Lokayuktas Act, 2013 (1 of 2014);] (e) “prescribed” means prescribed by rules made under this Act; (f) “Vigilance Commissioner” means a Vigilance Commissioner appointed under sub-section (1) of section 4. CHAPTER II THE CENTRAL VIGILANCE COMMISSION **3. Constitution of Central Vigilance Commission.—(1) There shall be constituted a body to be** known as the Central Vigilance Commission to exercise the powers conferred upon, and to perform the functions assigned to it under this Act and the Central Vigilance Commission constituted under sub-section (1) of section 3 of the Central Vigilance Commission Ordinance, 1999 (Ord. 4 of 1999) which ceased to operate, and continued under the Government of India in the Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training) Resolution No. 371/20/99-AVD. III, dated the 4th April, 1999 as amended vide Resolution of even number, dated the 13th August, 2002 shall be deemed to be the Commission constituted under this Act. (2) The Commission shall consist of— (a) a Central Vigilance Commissioner — Chairperson; (b) not more than two Vigilance Commissioners — Members. (3) The Central Vigilance Commissioner and the Vigilance Commissioners shall be appointed from amongst persons— (a) who have been or are in an All-India Service or in any civil service of the Union or in a civil ----- post under the Union having knowledge and experience in the matters relating to vigilance, policy making and administration including police administration; or (b) who have held office or are holding office in a corporation established by or under any Central Act or a Government company owned or controlled by the Central Government and persons who have expertise and experience in finance including insurance and banking, law, vigilance and investigations: Provided that, from amongst the Central Vigilance Commissioner and the Vigilance Commissioners, not more than two persons shall belong to the category of persons referred to either in clause (a) or clause (b). (4) The Central Government shall appoint a Secretary to the Commission on such terms and conditions as it deems fit to exercise such powers and discharge such duties as the Commission may by regulations specify in this behalf. (5) The Central Vigilance Commissioner, the other Vigilance Commissioners and the Secretary to the Commission appointed under the Central Vigilance Commission Ordinance, 1999 (Ord. 4 of 1999) or the Resolution of the Government of India in the Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training) Resolution No. 371/20/99-AVD. III, dated the 4th April, 1999 as amended _vide Resolution of even number, dated the 13th August, 2002 shall be deemed to have been_ appointed under this Act on the same terms and conditions including the term of office subject to which they were so appointed under the said Ordinance or the Resolution, as the case may be. _Explanation.—For the purposes of this sub-section, the expression “term of office” shall be construed_ as the term of office with effect from the date the Central Vigilance Commissioner or any Vigilance Commissioner has entered upon his office and continued as such under this Act. (6) The headquarters of the Commission shall be at New Delhi. **4. Appointment of Central Vigilance Commissioner and Vigilance Commissioners.—(1) The** Central Vigilance Commissioner and the Vigilance Commissioners shall be appointed by the President by warrant under his hand and seal: Provided that every appointment under this sub-section shall be made after obtaining the recommendation of a Committee consisting of— (a) the Prime Minister — Chairperson; (b) the Minister of Home Affairs — Member; (c) the Leader of the Opposition in the House of the People — Member. _Explanation.—For the purposes of this sub-section, “the Leader of the Opposition in the House of the_ People” shall, when no such Leader has been so recognised, include the Leader of the single largest group in opposition of the Government in the House of the People. (2) No appointment of a Central Vigilance Commissioner or a Vigilance Commissioner shall be invalid merely by reason of any vacancy in the Committee. **5. Terms and other conditions of service of Central Vigilance Commissioner.—(1) Subject to the** provisions of sub-sections (3) and (4), the Central Vigilance Commissioner shall hold office for a term of four years from the date on which he enters upon his office or till he attains the age of sixty-five years, whichever is earlier. The Central Vigilance Commissioner, on ceasing to hold the office, shall be ineligible for reappointment in the Commission. (2) Subject to the provisions of sub-sections (3) and (4), every Vigilance Commissioner shall hold office for a term of four years from the date on which he enters upon his office or till he attains the age of sixty-five years, whichever is earlier: Provided that every Vigilance Commissioner, on ceasing to hold the office, shall be eligible for appointment as the Central Vigilance Commissioner in the manner specified in sub-section (1) of section 4: Provided further that the term of the Vigilance Commissioner, if appointed as the Central Vigilance Commissioner, shall not be more than four years in aggregate as the Vigilance Commissioner and the ----- (3) The Central Vigilance Commissioner or a Vigilance Commissioner shall, before he enters upon his office, make and subscribe before the President, or some other person appointed in that behalf by him, an oath or affirmation according to the form set out for the purpose in Schedule to this Act. (4) The Central Vigilance Commissioner or a Vigilance Commissioner may, by writing under his hand addressed to the President, resign his office. (5) The Central Vigilance Commissioner or a Vigilance Commissioner may be removed from his office in the manner provided in section 6. (6) On ceasing to hold office, the Central Vigilance Commissioner and every other Vigilance Commissioner shall be ineligible for— (a) any diplomatic assignment, appointment as administrator of a Union territory and such other assignment or appointment which is required by law to be made by the President by warrant under his hand and seal; (b) further employment to any office of profit under the Government of India or the Government of a State. (7) The salary and allowances payable to and the other conditions of service of— (a) the Central Vigilance Commissioner shall be the same as those of the Chairman of the Union Public Service Commission; (b) the Vigilance Commissioner shall be the same as those of a Member of the Union Public Service Commission: Provided that if the Central Vigilance Commissioner or any Vigilance Commissioner is, at the time of his appointment, in receipt of a pension (other than a disability or wound pension) in respect of any previous service under the Government of India or under the Government of a State, his salary in respect of the service as the Central Vigilance Commissioner or any Vigilance Commissioner shall be reduced by the amount of that pension including any portion of pension which was commuted and pension equivalent of other forms of retirement benefits excluding pension equivalent of retirement gratuity: Provided further that if the Central Vigilance Commissioner or any Vigilance Commissioner is, at the time of his appointment, in receipt of retirement benefits in respect of any previous service rendered in a corporation established by or under any Central Act or a Government company owned or controlled by the Central Government, his salary in respect of the service as the Central Vigilance Commissioner or, as the case may be, the Vigilance Commissioner shall be reduced by the amount of pension equivalent to the retirement benefits: Provided also that the salary, allowances and pension payable to, and the other conditions of service of, the Central Vigilance Commissioner or any Vigilance Commissioner shall not be varied to his disadvantage after his appointment. **6. Removal of Central Vigilance Commissioner and Vigilance Commissioner.—(1) Subject to the** provisions of sub-section (3), the Central Vigilance Commissioner or any Vigilance Commissioner shall be removed from his office only by order of the President on the ground of proved misbehaviour or incapacity after the Supreme Court, on a reference made to it by the President, has, on inquiry, reported that the Central Vigilance Commissioner or any Vigilance Commissioner, as the case may be, ought on such ground be removed. (2) The President may suspend from office, and if deem necessary prohibit also from attending the office during inquiry, the Central Vigilance Commissioner or any Vigilance Commissioner in respect of whom a reference has been made to the Supreme Court under sub-section (1) until the President has passed orders on receipt of the report of the Supreme Court on such reference. (3) Notwithstanding anything contained in sub-section (1), the President may by order remove from office the Central Vigilance Commissioner or any Vigilance Commissioner if the Central Vigilance Commissioner or such Vigilance Commissioner, as the case may be,— (a) is adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or ----- (c) engages during his term of office in any paid employment outside the duties of his office; or (d) is, in the opinion of the President, unfit to continue in office by reason of infirmity of mind or body; or (e) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Central Vigilance Commissioner or a Vigilance Commissioner. (4) If the Central Vigilance Commissioner or any Vigilance Commissioner is or becomes in any way, concerned or interested in any contract or agreement made by or on behalf of the Government of India or participates in any way in the profit thereof or in any benefit or emolument arising therefrom otherwise than as a member and in common with the other members of an incorporated company, he shall, for the purposes of sub-section (1), be deemed to be guilty of misbehaviour. **7. Power to make rules by Central Government for staff.—The Central Government may, in** consultation with the Commission, make rules with respect to the number of members of the staff of the Commission and their conditions of service. CHAPTER III FUNCTIONS AND POWERS OF THE CENTRAL VIGILANCE COMMISSION **8. Functions and powers of Central Vigilance Commission.—(1) The functions and powers of the** Commission shall be to— (a) exercise superintendence over the functioning of the Delhi Special Police Establishment in so far as it relates to the investigation of offences alleged to have been committed under the Prevention of Corruption Act, 1988 (49 of 1988) or an offence with which a public servant specified in sub-section (2) may, under the Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial; (b) give directions to the Delhi Special Police Establishment for the purpose of discharging the responsibility entrusted to it under sub-section (1) of section 4 of the Delhi Special Police Establishment Act, 1946 (25 of 1946): Provided that while exercising the powers of superintendence under clause (a) or giving directions under this clause, the Commission shall not exercise powers in such a manner so as to require the Delhi Special Police Establishment to investigate or dispose of any case in a particular manner; (c) inquire or cause an inquiry or investigation to be made on a reference made by the Central Government wherein it is alleged that a public servant being an employee of the Central Government or a corporation established by or under any Central Act, Government company, society and any local authority owned or controlled by that Government, has committed an offence under the Prevention of Corruption Act, 1988 (49 of 1988) or an offence with which a public servant may, under the Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial; (d) inquire or cause an inquiry or investigation to be made into any complaint against any official belonging to such category of officials specified in sub-section (2) wherein it is alleged that he has committed an offence under the Prevention of Corruption Act, 1988 (49 of 1988) and an offence with which a public servant specified in sub-section (2) may, under the Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial; (e) review the progress of investigations conducted by the Delhi Special Police Establishment into offences alleged to have been committed under the Prevention of Corruption Act, 1988 (49 of 1988) or the public servant may, under the Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial; (f) review the progress of applications pending with the competent authorities for sanction of prosecution under the Prevention of Corruption Act, 1988 (49 of 1988); (g) tender advice to the Central Government, corporations established by or under any Central Act, Government companies, societies and local authorities owned or controlled by the Central Government on such matters as may be referred to it by that Government, said Government companies, societies and local authorities owned or controlled by the Central Government or ----- (h) exercise superintendence over the vigilance administration of the various Ministries of the Central Government or corporations established by or under any Central Act, Government companies, societies and local authorities owned or controlled by that Government: Provided that nothing contained in this clause shall be deemed to authorise the Commission to exercise superintendence over the Vigilance administration in a manner not consistent with the directions relating to vigilance matters issued by the Government and to confer power upon the Commission to issue directions relating to any policy matters. (2) The persons referred to in clause (d) of sub-section (1) are as follows:— (a) members of All-India Services serving in connection with the affairs of the Union and Group ‘A’ officers of the Central Government; (b) such level of officers of the corporations established by or under any Central Act, Government companies, societies and other local authorities, owned or controlled by the Central Government, as that Government may, by notification in the Official Gazette, specify in this behalf: Provided that till such time a notification is issued under this clause, all officers of the said corporations, companies, societies and local authorities shall be deemed to be the persons referred to in clause (d) of sub-section (1); 1[(c) on a reference made by the Lokpal under the proviso to sub-section (1) of section 20 of the Lokpal and Lokayuktas Act, 2013 (1 of 2014), the persons referred to in clause (d) of sub-section (1) shall also include— (i) members of Group B, Group C and Group D services of the Central Government; (ii) such level of officials or staff of the corporations established by or under any Central Act, Government companies, societies and other local authorities, owned or controlled by the Central Government, as that Government may, by notification in the Official Gazette, specify in this behalf: Provided that till such time a notification is issued under this clause, all officials or staff of the said corporations, companies, societies and local authorities shall be deemed to be the persons referred in clause (d) of sub-section (1).] 1[8A. Action on preliminary inquiry in relation to public servants.—(1) Where, after the conclusion of the preliminary inquiry relating to corruption of public servants belonging to Group C and Group D officials of the Central Government, the findings of the Commission disclose, after giving an opportunity of being heard to the public servant, a _prima facie violation of conduct rules relating to_ corruption under the Prevention of Corruption Act, 1988 (49 of 1988) by such public servant, the Commission shall proceed with one or more of the following actions, namely:— (a) cause an investigation by any agency or the Delhi Special Police Establishment, as the case may be; (b) initiation of the disciplinary proceedings or any other appropriate action against the concerned public servant by the competent authority; (c) closure of the proceedings against the public servant and to proceed against the complainant under section 46 of the Lokpal and Lokayuktas Act, 2013 (1 of 2014). (2) Every preliminary inquiry referred to in sub-section (1) shall ordinarily be completed within a period of ninety days and for reasons to be recorded in writing, within a further period of ninety days from the date of receipt of the complaint. **8B.** **Action on investigation in relation to public servants.—(1) In case the Commission decides to** proceed to investigate into the complaint under clause (a) of sub-section (1) of section 8A, it shall direct any agency (including the Delhi Special Police Establishment) to carry out the investigation as expeditiously as possible and complete the investigation within a period of six months from the date of its ----- order and submit the investigation report containing its findings to the Commission: Provided that the Commission may extend the said period by a further period of six months for the reasons to be recorded in writing. (2) Notwithstanding anything contained in section 173 of the Code of Criminal Procedure, 1973 (2 of 1974), any agency (including the Delhi Special Police Establishment) shall, in respect of cases referred to it by the Commission, submit the investigation report to the Commission. (3) The Commission shall consider every report received by it under sub-section (2) from any agency (including the Delhi Special Police Establishment) and may decide as to— (a) file charge-sheet or closure report before the Special Court against the public servant; (b) initiate the departmental proceedings or any other appropriate action against the concerned public servant by the competent authority.] **9. Proceedings of Commission.—(1) The proceedings of the Commission shall be conducted at its** headquarters. (2) The Commission may, by unanimous decision, regulate the procedure for transaction of its business as also allocation of its business amongst the Central Vigilance Commissioner and other Vigilance Commissioners. (3) Save as provided in sub-section (2), all business of the Commission shall, as far as possible, be transacted unanimously. (4) Subject to the provisions of sub-section (3), if the Central Vigilance Commissioner and other Vigilance Commissioners differ in opinion on any matter, such matter shall be decided according to the opinion of the majority. (5) The Central Vigilance Commissioner, or, if for any reason he is unable to attend any meeting of the Commission, the senior-most Vigilance Commissioner present at the meeting, shall preside at the meeting. (6) No act or proceeding of the Commission shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Commission; or (b) any defect in the appointment of a person acting as the Central Vigilance Commissioner or as a Vigilance Commissioner; or (c) any irregularity in the procedure of the Commission not affecting the merits of the case. **10. Vigilance Commissioner to act as Central Vigilance Commissioner in certain** **circumstances.—(1) In the event of the occurrence of any vacancy in the office of the Central Vigilance** Commissioner by reason of his death, resignation or otherwise, the President may, by notification, authorise one of the Vigilance Commissioners to act as the Central Vigilance Commissioner until the appointment of a new Central Vigilance Commissioner to fill such vacancy. (2) When the Central Vigilance Commissioner is unable to discharge his functions owing to absence on leave or otherwise, such one of the Vigilance Commissioners as the President may, by notification, authorise in this behalf, shall discharge the functions of the Central Vigilance Commissioner until the date on which the Central Vigilance Commissioner resumes his duties. **11. Power relating to inquiries.—The Commission shall, while conducting any inquiry referred to in** clauses (b) and (c) of sub-section (1) of section 8, have all the powers of a civil court trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) and in particular, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person from any part of India and examining him on oath; (b) requiring the discovery and production of any document; (c) receiving evidence on affidavits; (d) requisitioning any public record or copy thereof from any court or office; ----- (e) issuing commissions for the examination of witnesses or other documents; and (f) any other matter which may be prescribed. **1[11A. Director of Inquiry for making preliminary inquiry.—(1) There shall be a Director of** Inquiry, not below the rank of Joint Secretary to the Government of India, who shall be appointed by the Central Government for conducting preliminary inquiries referred to the Commission by the Lokpal. (2) The Central Government shall provide the Director of Inquiry such officers and employees as may be required for the discharge of his functions under this Act.] **12. Proceedings before Commission to be judicial proceedings.—The Commission shall be** deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974) and every proceeding before the Commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860). CHAPTER IV EXPENSES AND ANNUAL REPORT **13. Expenses of Commission to be charged on the Consolidated Fund of India.—The expenses of** the Commission, including any salaries, allowances and pensions payable to or in respect of the Central Vigilance Commissioner, the Vigilance Commissioners, Secretary and the staff of the Commission, shall be charged on the Consolidated Fund of India. **14. Annual report.—(1) It shall be the duty of the Commission to present annually to the President a** report as to the work done by the Commission within six months of the close of the year under report. (2) The report referred to in sub-section (1) shall contain a separate part on the functioning of the Delhi Special Police Establishment in so far as it relates to sub-section (1) of section 4 of the Delhi Special Police Establishment Act, 1946 (25 of 1946). (3) On receipt of such report, the President shall cause the same to be laid before each House of Parliament. CHAPTER V MISCELLANEOUS **15. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Commission, the Central Vigilance Commissioner, any Vigilance Commissioner, the Secretary or against any staff of the Commission in respect of anything which is in good faith done or intended to be done under this Act. **16. Central Vigilance Commissioner, Vigilance Commissioner and staff to be public servants.—** The Central Vigilance Commissioner, every Vigilance Commissioner, the Secretary and every staff of the Commission shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **17. Report of any inquiry made on reference by Commission to be forwarded to that** **Commission.—(1) The report of the inquiry undertaken by any agency on a reference made by the** Commission shall be forwarded to the Commission. (2) The Commission shall, on receipt of such report and after taking into consideration any other factors relevant thereto, advise the Central Government and corporations established by or under any Central Act, Government companies, societies and local authorities owned or controlled by that Government, as the case may be, as to the further course of action. (3) The Central Government and the corporations established by or under any Central Act, Government companies, societies and other local authorities owned or controlled by that Government, as the case may be, shall consider the advice of the Commission and take appropriate action: Provided that where the Central Government, any corporation established by or under any Central Act, Government company, society or local authority owned or controlled by the Central Government, as ----- the case may be, does not agree with the advice of the Commission, it shall, for reasons to be recorded in writing, communicate the same to the Commission. **18. Power to call for information.—The Commission may call for reports, returns and statements** from the Central Government or corporations established by or under any Central Act, Government companies, societies and other local authorities owned or controlled by that Government so as to enable it to exercise general supervision over the vigilance and anti-corruption work in that Government and in the said corporations, Government companies, societies and local authorities. **19. Consultation with Commission in certain matters.—The Central Government shall, in making** any rules or regulations governing the vigilance or disciplinary matters relating to persons appointed to public services and posts in connection with the affairs of the Union or to members of the All-India Services, consult the Commission. **20. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for the purpose of carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the number of members of the staff and their conditions of service under section 7; (b) any other power of the civil court to be prescribed under clause (f) of section 11; and (c) any other matter which is required to be, or may be, prescribed. **21. Power to make regulations.—(1) The Commission may, with the previous approval of the** Central Government, by notification in the Official Gazette, make regulations not inconsistent with this Act and the rules made thereunder to provide for all matters for which provision is expedient for the purposes of giving effect to the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the duties and the powers of the Secretary under sub-section (4) of section 3; and (b) the procedure to be followed by the Commission under sub-section (2) of section 9. **22. Notification, rule, etc., to be laid before Parliament.—Every notification issued under clause** (b) of sub-section (2) of section 8 and every rule made by the Central Government and every regulation made by the Commission under this Act shall be laid, as soon as may be after it is issued or made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or the rule or the regulation, or both Houses agree that the notification or the rule or the regulation should not be made, the notification or the rule or the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule or regulation. **23. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **24. Provisions relating to existing Vigilance Commission.—With effect from the constitution of the** Commission under sub-section (1) of section 3, the Central Vigilance Commission set up by the Resolution of the Government of India in the Ministry of Home Affairs No. 24/7/64-AVD, dated the 11th February, 1964 (hereafter referred to in this section as the existing Vigilance Commission) shall, insofar ----- as its functions are not inconsistent with the provisions of this Act, continue to discharge the said functions and— (a) all actions and decisions taken by the Vigilance Commission insofar as such actions and decisions are relatable to the functions of the Commission constituted under this Act shall be deemed to have been taken by the Commission; (b) all proceedings pending before the Vigilance Commission, insofar as such proceedings relate to the functions of the Commission, shall be deemed to be transferred to the Commission and shall be dealt with in accordance with the provisions of this Act; (c) the employees of the Vigilance Commission shall be deemed to have become the employees of the Commission on the same terms and conditions; (d) all the assets and liabilities of the Vigilance Commission shall be transferred to the Commission. **25. Appointments, etc., of officers of Directorate of Enforcement.—Notwithstanding anything** contained in the Foreign Exchange Management Act, 1999 (42 of 1999) or any other law for the time being in force,— (a) the Central Government shall appoint a Director of Enforcement in the Directorate of Enforcement in the Ministry of Finance on the recommendation of the Committee consisting of— (i) the Central Vigilance Commissioner — Chairperson; (ii) Vigilance Commissioners — Members; (iii) Secretary to the Government of India in-charge of the Ministry of Home Affairs in the Central Government — Member; (iv) Secretary to the Government of India in-charge of the Ministry of Personnel in the Central Government — Member; (v) Secretary to the Government of India in-charge of the Department of Revenue, Ministry of Finance in the Central Government — Member; (b) while making a recommendation, the Committee shall take into consideration the integrity and experience of the officers eligible for appointment; (c) no person below the rank of Additional Secretary to the Government of India shall be eligible for appointment as a Director of Enforcement; (d) a Director of Enforcement shall continue to hold office for a period of not less than two years from the date on which he assumes office: 1[Provided that the period for which the Director of Enforcement holds the office on his initial appointment may, in public interest, on the recommendation of the Committee under clause (a) and for the reasons to be recorded in writing, be extended up to one year at a time: Provided further that no such extension shall be granted after the completion of a period of five years in total including the period mentioned in the initial appointment;] (e) a Director of Enforcement shall not be transferred except with the previous consent of the Committee referred to in clause (a); (f) the Committee referred to in clause (a) shall, in consultation with the Director of Enforcement, recommend officers for appointment to the posts above the level of the Deputy Director of Enforcement and also recommend the extension or curtailment of the tenure of such officers in the Directorate of Enforcement; (g) on receipt of the recommendation under clause (f), the Central Government shall pass such orders as it thinks fit to give effect to the said recommendation. ----- **26. Amendment of Act 25 of 1946.—In the Delhi Special Police Establishment Act, 1946,—** (a) after section 1, the following section shall be inserted, namely:— “1A. Interpretation section.—Words and expressions used herein and not defined but defined in the Central Vigilance Commission Act, 2003 (45 of 2003), shall have the meanings, respectively, assigned to them in that Act.”; (b) for section 4, the following sections shall be substituted, namely:— “4. Superintendence and administration of Special Police Establishment.—(1) The superintendence of the Delhi Special Police Establishment in so far as it relates to investigation of offences alleged to have been committed under the Prevention of Corruption Act, 1988 (49 of 1988), shall vest in the Commission. (2) Save as otherwise provided in sub-section (1), the superintendence of the said police establishment in all other matters shall vest in the Central Government. (3) The administration of the said police establishment shall vest in an officer appointed in this behalf by the Central Government (hereinafter referred to as the Director) who shall exercise in respect of that police establishment such of the powers exercisable by an Inspector-General of Police in respect of the police force in a State as the Central Government may specify in this behalf. **4A. Committee for appointment of Director.—(1) The Central Government shall appoint** the Director on the recommendation of the Committee consisting of— (a) the Central Vigilance Commissioner — Chairperson; (b) Vigilance Commissioners — Members; (c) Secretary to the Government of India in charge of the Ministry of Home Affairs in the Central Government (d) Secretary (Coordination and Public Grievances) in the Cabinet Secretariat — Member; — Member. (2) While making any recommendation under sub-section (1), the Committee shall take into consideration the views of the outgoing Director. (3) The Committee shall recommend a panel of officers— (a) on the basis of seniority, integrity and experience in the investigation of anti-corruption cases; and (b) chosen from amongst officers belonging to the Indian Police Service constituted under the All-India Services Act, 1951 (61 of 1951), for being considered for appointment as the Director. **4B. Terms and conditions of service of Director.—(1) The Director shall, notwithstanding** anything to the contrary contained in the rules relating to his conditions of service, continue to hold office for a period of not less than two years from the date on which he assumes office. (2) The Director shall not be transferred except with the previous consent of the Committee referred to in sub-section (1) of section 4A. **4C. Appointment for posts of Superintendent of Police and above, extension and** **curtailment of their tenure, etc.—(1) The Committee referred to in section 4A shall, after** consulting the Director, recommend officers for appointment to the posts of the level of Superintendent of Police and above and also recommend the extension or curtailment of the tenure of such officers in the Delhi Special Police Establishment. (2) On receipt of the recommendation under sub-section (1), the Central Government shall pass such orders as it thinks fit to give effect to the said recommendation.”; (c) after section 6, the following section shall be inserted, namely:— ----- “6A. Approval of Central Government to conduct inquiry or investigation.—(1) The Delhi Special Police Establishment shall not conduct any inquiry or investigation into any offence alleged to have been committed under the Prevention of Corruption Act, 1988 (49 of 1988) except with the previous approval of the Central Government where such allegation relates to— (a) the employees of the Central Government of the level of Joint Secretary and above; and (b) such officers as are appointed by the Central Government in corporations established by or under any Central Act, Government companies, societies and local authorities owned or controlled by that Government. (2) Notwithstanding anything contained in sub-section (1), no such approval shall be necessary for cases involving arrest of a person on the spot on the charge of accepting or attempting to accept any gratification other than legal remuneration referred to in clause (c) of the _Explanation to section 7 of the Prevention of Corruption Act, 1988 (49 of 1988).”._ **27. Repeal and saving.—(1) The Government of India in the Ministry of Personnel, Public** Grievances and Pensions (Department of Personnel and Training) Resolution No. 371/20/99-AVD. III, dated the 4th April, 1999 as amended _vide Resolution of even number, dated the 13th August, 2002 is_ hereby repealed. (2) Notwithstanding such repeal and the cesser of operation of the Central Vigilance Commission Ordinance, 1999 (Ord. 4 of 1999), anything done or any action taken under the said Resolution and the said Ordinance including the appointments made and other actions taken or anything done or any action taken or any appointment made under the Delhi Special Police Establishment Act, 1946 (25 of 1946) and the Foreign Exchange Regulation Act, 1973 (46 of 1973) as amended by the said Ordinance shall be deemed to have been made or done or taken under this Act or the Delhi Special Police Establishment Act, 1946 and the Foreign Exchange Regulation Act, 1973 as if the amendments made in those Acts by this Act were in force at all material times. ----- THE SCHEDULE [See section 5(3)] Form of oath or affirmation to be made by the Central Vigilance Commissioner or Vigilance Commissioner:— “I, A. B., having been appointed Central Vigilance Commissioner (or Vigilance Commissioner) 𝑠𝑤𝑒𝑎𝑟 𝑖𝑛 𝑡ℎ𝑒 𝑛𝑎𝑚𝑒 𝑜𝑓 𝐺𝑜𝑑 of the Central Vigilance Commission do that I will bear true faith and 𝑠𝑜𝑙𝑒𝑚𝑛𝑙𝑦 𝑎𝑓𝑓𝑖𝑟𝑚 allegiance to the Constitution of India as by law established, that I will uphold the sovereignty and integrity of India, that I will duly and faithfully and to the best of my ability, knowledge and judgment perform the duties of my office without fear or favour, affection or ill-will and that I will uphold the constitution and the laws.”. -----
28-Sep-2003
49
The Repatriation of Prisoners Act, 2003
https://www.indiacode.nic.in/bitstream/123456789/2011/1/A2003-49.pdf
central
# THE REPATRIATION OF PRISONERS ACT, 2003 __________ ARRANGEMENT OF SECTIONS ________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Application of Act. 4. Application for transfer by a prisoner. 5. Consideration of request by Central Government. 6. Comments of contracting State. 7. Consideration of request by Central Government. 8. Provision to issue warrant for transfer. 9. Operation of warrant and retaking prisoner. 10. Transfer of record. 11. Power of court and Central Government shall not be affected. 12. Transfer into India. 13. Determination of prison and issue of warrant for receiving transfer in India. 14. Power to make rules. 15. Laying of rules, etc. 16. Power to remove difficulties. ----- # THE REPATRIATION OF PRISONERS ACT, 2003 ACT NO. 49 OF 2003 [28th September, 2003.] # An Act to provide for the transfer of certain prisoners from India to country or place outside India and reception in India of certain prisoners from country or place outside India. BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Repatriation of Prisoners** Act, 2003. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “contracting State” means a Government of any country or place outside India in respect of which arrangement has been made by the Central Government with the Government of such country or place through a treaty or otherwise for transfer of prisoners from India to such country or place and _vice versa_ and includes any other Government of such country or place specified by the Central Government, by notification in the Official Gazette, under sub-section (1) of section 3; (b) “prescribed” means prescribed by rules made under this Act; (c) “prisoner” means a person undergoing a sentence of imprisonment under an order passed by a criminal court including the courts established under the law for the time being in force in contracting States; (d) “warrant” means a warrant issued under sub-section (1) of section 7 or sub-section (2) of section 12, as the case may be; (e) words and expressions used herein and not defined but defined in the Code of Criminal Procedure, 1973 (2 of 1974) have the meanings respectively assigned to them in that Code. **3. Application of Act.—(1) The Central Government may, by notification in the Official Gazette,** direct that the provisions of this Act shall apply to a country or place outside India as may be specified in the notification. (2) If the notification under sub-section (1) relates to a country or place outside India with which a treaty has been entered into by India for the transfer of prisoners between that country and India, then, such notification shall also set out the full text of the said treaty and shall in no case remain in force longer than the period of the said treaty. (3) If the Central Government is of the opinion that, with respect to a country or place outside India, provisions of this Act require to be modified to give effect to a treaty in relation to such country, it may, by notification in the Official Gazette, direct that the application of this Act to such country shall be subject to such conditions, exceptions and modifications specified in the notification. **4. Application for transfer by a prisoner.—Any prisoner who is a citizen of a contracting State may** make an application to the Central Government for transfer of his custody from India to that contracting State: Provided that if a prisoner is not able to make an application himself because of his ill health, mental condition, old age or being a minor, then, the application may be made by any other person entitled to act on his behalf. **5. Consideration of request by Central Government.—(1) On receipt of the application under** section 4, the Central Government shall direct the officer in charge of the prison, where the prisoner is confined, to furnish such information which in the opinion of that Government is relevant for the purpose of transfer. 1. 1st January, 2004, vide notification No. S.O. 1464(E), dated 24th December, 2003, see Gazette of India, Extraordinary, Part II, sec. 3(ii). ----- (2) On receipt of the information under sub-section (1), if the Central Government is satisfied that— (a) no inquiry, trial or any other proceeding is pending against the prisoner; (b) death penalty has not been awarded to the prisoner; (c) the prisoner has not been convicted for an offence under the [1][military law]; and (d) transfer of custody of the prisoner to the contracting State shall not be prejudicial to the sovereignty, security or any other interest of India, it shall pass an order for forwarding the application of the prisoner to the contracting State. **6. Comments of contracting State.—(1) The application of the prisoner shall be forwarded by the** Central Government through prescribed means to the Government of the contracting State to deal with such application along with the following information, namely:— (a) a copy of the judgment and a copy of the relevant provisions of the law under which the sentence has been passed against the prisoner; (b) the nature, duration and date of commencement of the sentence of the prisoner; (c) medical report or any other report regarding the antecedents and character of the prisoner, where it is relevant for the disposal of his application or for deciding the nature of his confinement; and (d) any other information which the Central Government may consider necessary. (2) Where any application of a prisoner forwarded by the Central Government has been accepted by the contracting State, the Central Government may seek from such contracting State, all or any of the following information or documents before taking decision to transfer the prisoner to the contracting State, namely:— (a) a statement or document indicating that the prisoner is a citizen of the contracting State; (b) a copy of the relevant law of the contracting State constituting the act or omission as the offence, on account of which the sentence has been passed in India, as if such act or omission was an offence under the law of that State; (c) a statement of the fact or any law or regulation relating to the duration and enforcement of the sentence of the prisoner in the contracting State upon his transfer; (d) the willingness of the contracting State to accept the transfer of the prisoner and an undertaking to administer the remaining part of the sentence of the prisoner; (e) an undertaking to comply with the conditions, if any, specified by the Central Government; and (f) any other information or document which the Central Government may consider necessary. **7. Consideration of request by Central Government.—(1) If the Central Government, on receipt of** a communication from the concerned contracting State,— (a) expressing its willingness to accept the transfer of the prisoner; and (b) undertaking to comply with the conditions specified in the warrant, is satisfied that the prisoner should be transferred to the said State, the Central Government may, notwithstanding anything contained in any other law for the time being in force, issue a warrant in accordance with the provisions of section 8 in such form as may be prescribed. (2) Where a warrant is issued under sub-section (1), the Central Government shall inform the contracting State accordingly and request that State to specify the person to whom and the place within India where custody of the prisoner shall be delivered. **8. Provision to issue warrant for transfer.—(1) The Central Government shall authorise an officer** not below the rank of a Joint Secretary to a State Government, within the limits of whose jurisdiction the 1. Subs. by Act 6 of 2011, s. 2, for “martial law” (w.e.f. 1-4-2011). ----- place of imprisonment of the prisoner is situated, to issue a warrant on behalf of the Central Government under sub-section (1) of section 7 directing the officer in charge of the prison therein to deliver the custody of the prisoner to the person authorised by the contracting State to which the prisoner is to be transferred, presenting such person a copy of the warrant together with all the records relating to the prisoner and the personal effects taken from the prisoner at the time of his admission in the prison. (2) Upon the presentation of a warrant referred to in sub-section (1), the officer incharge of the prison shall forthwith comply with the warrant and obtain thereon the signature of the person to whom delivery of the prisoner, records and the personal effects relating to the prisoner to be removed from the prison is given. (3) After delivery of the prisoner to the person authorised by the contracting State under sub-section (2), the officer in charge of the prison transferring the prisoner shall forward a copy of the warrant to the court which committed the prisoner to the prison, along with a statement that the prisoner has been delivered to the person authorised by the contracting State under sub-section (1). (4) The delivery of the prisoner in compliance of the warrant issued under sub-section (1) shall discharge the officer in charge of the prison from the responsibility of keeping the prisoner in his custody. **9. Operation of warrant and retaking prisoner.—It shall be lawful for the person authorised by the** contracting State to whom the custody of a prisoner is delivered under the provisions of sub-section (2) of section 8 to receive and hold in custody such prisoner and to convey him out of India and if the prisoner escapes from such custody within India, the prisoner may be arrested without warrant by any person who shall without undue delay deliver such prisoner to the officer in charge of the nearest police station and the prisoner so arrested shall be liable for committing an offence under section 224 of the Indian Penal Code (45 of 1860) and shall also be liable for such sentence of imprisonment in India which he would have to undergo if the delivery of custody of such prisoner had not been made under section 8. **10. Transfer of record.—Where a prisoner is or is to be transferred to a contracting State under the** provisions of this Act, the Central Government may requisition the records of any proceeding, including judicial proceedings relating to that prisoner from any court or office, and may direct that such records shall be sent to the Government of the contracting State. **11. Power of court and Central Government shall not be affected.—The transfer of a prisoner** from India to a contracting State shall not affect the power of the court which passed the judgment to review its judgment and power of the Central Government or State Government to suspend, remit or commute the sentence in accordance with any law for the time being in force. **12. Transfer into India.—(1) The Central Government may accept the transfer of a prisoner, who is** a citizen of India, from a contracting State wherein he is undergoing any sentence of imprisonment subject to such terms and conditions as may be agreed to between India and that State. (2) If the Central Government accepts the request for a transfer under sub-section (1), then, notwithstanding anything contained in any other law for the time being in force, it may issue a warrant to detain the prisoner in prison in accordance with the provisions of section 13 in such form as may be prescribed. **13. Determination of prison and issue of warrant for receiving transfer in India.—(1) The** Central Government shall, in consultation with a State Government, determine the prison situated within the jurisdiction of such State Government where the prisoner with respect to whom a warrant has been issued under sub-section (2) of section 12, shall be lodged and the officer who shall receive and hold him in custody. (2) The Central Government shall authorise any officer not below the rank of a Joint Secretary to that Government to issue a warrant under sub-section (2) of section 12 and to direct the officer referred to in sub-section (1) to receive and hold the prisoner, with respect to whom the warrant is issued, in custody. (3) It shall be lawful for the officer referred to in sub-section (1) to receive and hold in custody any prisoner delivered to him under the direction made in the warrant issued under sub-section (2) of section 12 and to convey such prisoner to any prison determined under sub-section (1) for being dealt with in accordance with the said warrant and if the prisoner escapes from such custody, the prisoner may be arrested without warrant by any person who shall without undue delay deliver such prisoner to the ----- officer in charge of the nearest police station and the prisoner so arrested shall be liable for committing an offence under section 224 of the Indian Penal Code (45 of 1860) and shall also be liable to be dealt with in accordance with the said warrant. (4) A warrant under sub-section (2) of section 12 shall provide for— (a) the bringing of the prisoner into India from a contracting State or a place outside India; (b) the taking of such prisoner in any part of India being a place at which effect may be given to the provisions contained in the warrant; (c) the nature and duration of imprisonment of the prisoner in accordance with the terms and conditions referred to in sub-section (1) of section 12 and the imprisonment of such prisoner in India in such manner as may be contained in the warrant; and (d) any other matter which may be prescribed. (5) Notwithstanding anything contained in any other law for the time being in force, the imprisonment of aprisoner in compliance with a warrant issued under sub-section (2) of section 12 shall be deemed to be imprisonment under a sentence of a court competent to pass such a sentence of imprisonment in India. (6) If the sentence of imprisonment passed against the prisoner in the contracting State is incompatible with the Indian law as to its nature, duration or both, the Central Government may, by order, adapt thesentence of such punishment as to the nature, duration or both, as the case may be, as is compatible to the sentence of imprisonment provided for a similar offence had that offence been committed in India: Provided that the sentence so adapted shall, as far as possible, correspond with the sentence imposed by the judgment of the contracting State to the prisoner and such adapted sentence shall not aggravate the punishment, by its nature, duration or both in relating to the sentence imposed in the contracting State. **14. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the means through which an application may be forwarded under sub-section (1) of section 6; (b) the form in which a warrant may be issued under sub-section (1) of section 7; (c) the form in which a warrant may be issued under sub-section (2) of section 12; and (d) any other matter which may be prescribed under clause (d) of sub-section (4) of section 13. **15. Laying of rules, etc.—Every notification issued under sub-sections (1) and (3) of section 3 and** every rule made under section 14 shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session,for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or rule or both Houses agree that the notification or rule should not be made, the notification or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule. **16. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appear to it to be necessary for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament. -----
30-Dec-2003
53
The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
https://www.indiacode.nic.in/bitstream/123456789/2026/1/A2003-53.pdf
central
# THE INDUSTRIAL DEVELOPMENT BANK (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2003 _________ ARRANGEMENT OF SECTIONS ________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II TRANSFER AND VESTING OF THE UNDERTAKING OF DEVELOPMENT BANK IN COMPANY 3. Undertaking of Development Bank to vest in Company. 4. General effect of transfer and vesting of undertaking. 5. Provisions in respect of officers and other employees of Development Bank. CHAPTER III MISCELLANEOUS 6. Concession, etc., to be deemed to have been granted to Company. 7. Tax exemption or benefit to continue to have effect. 8. Guarantee to be operative. 9. Shares, bonds and debentures to be deemed to be approved securities. 10. Act to have overriding effect. 11. Application of other laws not barred. 12. Amendment to certain enactments. 13. Substitution in Acts, rules, regulations or notifications by Company in place of Development Bank. 14. Power to remove difficulties. 15. Repeal and saving of Act 18 of 1964. THE SCHEDULE. ----- # THE INDUSTRIAL DEVELOPMENT BANK (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2003 ACT NO. 53 OF 2003 [30th December, 2003.] # An Act to provide for the transfer and vesting of the undertaking of the Industrial Development Bank of India to, and in, the Company to be formed and registered as a Company under the Companies Act, 1956 to carry on banking business and for matters connected therewith or incidental thereto and also to repeal the Industrial Development Bank of India Act, 1964. BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Industrial Development Bank** (Transfer of Undertaking and Repeal) Act, 2003. (2) It shall come into force on such date[1] as the Central Government may, by notification, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means such date as the Central Government may, by notification, appoint under section 3; (b) “Company” means the Industrial Development Bank of India Limited to be formed and registered under the Companies Act, 1956 (1 of 1956); (c) “Development Bank” means the Industrial Development Bank of India established under sub-section (1) of section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964); (d) “notification” means a notification published in the Official Gazette; (e) “Reserve Bank” means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934). CHAPTER II TRANSFER AND VESTING OF THE UNDERTAKING OF DEVELOPMENT BANK IN COMPANY **3. Undertaking of Development Bank to vest in Company.—(1) On such date as the Central** Government may, by notification, appoint, there shall be transferred to, and vest in, the Company, the undertaking of Development Bank. (2) Notwithstanding anything contained in the Banking Regulation Act, 1949 (10 of 1949), the Company referred to in sub-section (1) shall be deemed to be a banking company within the meaning of clause (c) of section 5 of the Banking Regulation Act, 1949 and as such shall carry on banking business in accordance with the provisions of that Act, [2]***: Provided that such Company shall not be required to— (a) obtain licence under section 22 of the Banking Regulation Act, 1949 (10 of 1949); (b) maintain for a period of five years from the appointed day the percentage of assets required to be maintained under section 24 of the said Act. 3[Provided further that the provisions of clause (a) to the proviso, shall cease to be applicable immediately after the commencement of Part XIII of the Finance Act, 2021 (13 of 2021), and from such 1. 2nd July, 2004, vide notification No. S.O. 769(E) dated 2nd July, 2004, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2. The words “in addition to the business which may be carried on and transacted by the Development Bank” omitted by Act 13 of 2021, s. 165 (w.e.f. 01-04-2021). 3 The proviso ins by s 165 ibid (w e f 01 04 2021) ----- commencement, the Company shall be deemed to have obtained licence under section 22 of the Banking Regulation Act, 1949 (10 of 1949).] (3) The provisions of the Banking Regulation Act, 1949 (10 of 1949) shall, as far as may be, to the extent they are not repugnant to any provision of this Act, apply to such Company. (4) Notwithstanding anything contained in the Banking Regulation Act,1949 (10 of 1949), the Central Government may, in consultation with the Reserve Bank of India, by notification, direct that any of the provisions of that Act specified in the notification— (a) shall not apply to the Company; or (b) shall apply to the Company, only with such exceptions, modifications and the adaptations as may be specified in the notification. (5) A copy of every notification proposed to be issued under sub-section (4), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. **4. General effect of transfer and vesting of undertaking.—(1) The Central Government, being the** shareholder of the Development Bank and every other shareholder of the Development Bank immediately before the appointed day shall be deemed to be registered on and from the appointed day as a shareholder of the Company to the extent of the face value of the shares held by such shareholder. (2) The undertaking of the Development Bank which is transferred to, and which vest in, the Company under section 3 shall be deemed to include all business, assets, rights, powers, authorities and privileges and all properties, movable and immovable, real and personal, corporeal and incorporeal, in possession or reservation, present or contingent of whatever nature and wheresoever situate including lands, buildings, vehicles, cash balances, deposits, foreign currencies, disclosed and undisclosed reserves, reserve fund, special reserve fund, benevolent reserve fund, any other fund, stocks, investments, shares, bonds, debentures, security, management of any industrial concern, loans, advances and guarantees given to any person or industrial concern, tenancies, leases and book debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership, possession or power of the Development Bank in relation to its undertaking, within or without India, all books of account, registers, records and documents relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind within or without India then subsisting of the Development Bank in relation to its respective undertaking. (3) All contracts, deeds, bonds, guarantees, powers of attorney, other instruments and working arrangements subsisting immediately before the appointed day and affecting the Development Bank shall cease to have effect or to be enforceable against the Development Bank and shall be of as full force and effect against or in favour of the Company in which the undertaking of the Development Bank has vested by virtue of this Act and enforceable as fully and effectually as if instead of the Development Bank, the Company had been named therein or had been a party thereto. (4) Any proceeding or cause of action pending or existing immediately before the appointed day by or against the Development Bank in relation to its undertaking may, as from the appointed day, be continued and enforced by or against the Company in which the undertaking of the Development Bank has vested by virtue of this Act as it might have been enforced by or against the Development Bank if this Act had not been enacted and shall cease to be enforceable by or against the Development Bank. **5. Provisions in respect of officers and other employees of Development Bank.—(1) Every officer** or other employee of the Development Bank (except a director of the Board or the chairman and managing director or any whole-time director) serving in the employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the undertaking which has vested in the Company by virtue of this Act, become, as from the appointed day, an officer or, as the case may be, other employee of the Company and shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same obligations and with the same rights and privileges as to leave, leave fare concession, welfare scheme, ----- medical benefit scheme, insurance, provident fund, other funds, retirement, voluntary retirement, gratuity and other benefits as he would have held under the Development Bank if its undertaking had not vested in the Company and shall continue to do so as an officer or, as the case may be, other employee of the Company or until the expiry of a period of six months from the appointed day, if such officer or other employee opts not to continue to be the officer or other employee of the Company within such period. (2) Where an officer or other employee of the Development Bank opts under sub-section (1) not to be in employment or service of the company, such officer or other employee shall be deemed to have resigned. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, the transfer of the services of any officer or other employee of the Development Bank to the Company shall not entitle such officer or other employee to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. (4) The officers and other employees who have retired before the appointed day from the service of the Development Bank and are entitled to any benefits, rights or privileges shall be entitled to receive the same benefits, rights or privileges from the Company. (5) The trust of the provident fund or the gratuity fund of the Development Bank and any other bodies created for the welfare of officers or employees would continue to discharge their functions in the Company as was being done hitherto in the Development Bank and any tax exemption granted to the provident fund or the gratuity fund or pension fund would continue to be applied to the Company. (6) Notwithstanding anything contained in this Act or in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the regulations of the Development Bank, no director of the Board, chairman and managing director or any whole-time director or any other person entitled to manage the whole or substantial part of the business and affairs of the Development Bank shall be entitled to any compensation against the Development Bank or the Company for the loss of office or for the premature termination of any contract of management entered into by him with the Development Bank. CHAPTER III MISCELLANEOUS **6. Concession, etc., to be deemed to have been granted to Company.—With effect from the** appointed day, all fiscal and other concessions, licences, benefits, privileges and exemptions granted to the Development Bank, in connection with the affairs and business of the Development Bank under any law for the time being in force shall be deemed to have been granted to the Company. **7. Tax exemption or benefit to continue to have effect.—(1) Where any exemption from, or any** assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry forward of any unabsorbed depreciation or investment allowance or other allowance or loss has been extended or is available to the Development Bank under the Income-tax Act, 1961 (43 of 1961), such exemption, assessment or benefit shall continue to have effect in relation to the Company. (2) Where any payment made by the Development Bank is exempted from deduction of tax at source under any provision of the Income-tax Act, 1961 (43 of 1961), such exemption will continue to be available as if the provisions of the said Act made applicable to the Development Bank were operative in relation to the Company. (3) The transfer and vesting of the undertaking of the Development Bank or any part thereof in terms of section 3 shall not be construed as a transfer within the meaning of the Income-tax Act, 1961 (43 of 1961) or any other law for the time being in force. **8. Guarantee to be operative.—Any guarantee given for or in favour of the Development Bank with** respect to any loan, lease, finance or other assistance shall continue to be operative in relation to the Company. **9. Shares, bonds and debentures to be deemed to be approved securities.—Notwithstanding** anything contained in any other law for the time being in force, the shares, bonds and debentures of the Company shall be deemed to be approved securities for the purposes of the Indian Trusts Act, 1882 (2 of 1882) and the Insurance Act, 1938 (4 of1938). ----- **10. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act. **11. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of the provisions of any other law for the time being in force. **12. Amendment to certain enactments.—The enactments specified in the Schedule to this Act shall** be amended in the manner provided therein. **13. Substitution in Acts, rules, regulations or notifications by Company in place of Development** **Bank.—In every Act, rule, regulation or notification in force on the appointed day,—** (a) for the words “Industrial Development Bank of India”, wherever they occur, the words “Industrial Development Bank of India Limited referred to in clause (b) of section 2 of the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003” shall be substituted; (b) for the words “Development Bank”, wherever they occur, the words “Industrial Development Bank of India Limited referred to in clause (b) of section 2 of the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003” shall be substituted; (c) for the words and figures “the Development Bank means the Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964)”, the words, brackets, letter and figures “the Industrial Development Bank of India Limited referred to in clause (b) of section 2 of the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003” shall be substituted; (d) for the words and figures “the Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964)”, the words, brackets, letter and figures “the Industrial Development Bank of India Limited referred to in clause (b) of section 2 of the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003” shall be substituted. **14. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of three years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **15. Repeal and saving of Act 18 of 1964.—(1) On the appointed day, the Industrial Development** Bank of India Act, 1964, shall stand repealed. (2) Notwithstanding the repeal of the Industrial Development Bank of India Act, 1964, the provisions of section 30A of the Act so repealed will continue to be applicable in respect of the arrangement entered into by the Development Bank with an industrial concern up to the appointed day and the Company will be entitled to act upon and enforce the same as fully and effectually as if this Act has not been enacted. ----- THE SCHEDULE (See section 12) AMENDMENTS TO CERTAIN ENACTMENTS PART I AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934 (2 OF 1934) AMENDMENTS 1. In section 2, clause (bvii) shall be omitted. 2. In section 17,— (a) in sub-sections (4G) and (4H), the words “the Development Bank or” shall be omitted; (b) in sub-sections (4-I), (8A) and (12B), the words “the Development Bank” shall be omitted. 3. In section 42, in sub-section (1), in the Explanation, in clause (c), in sub-clause (ii), the words “or from the Development Bank” shall be omitted. 4. In section 45-I, in clause (bb), in sub-clause (iv), the item (a) shall be omitted. 5. In section 46C, in sub-section (2), clauses (a) and (b) shall be omitted. PART II AMENDMENTS TO THE BANKING REGULATION ACT, 1949 (10 OF 1949) AMENDMENTS 1. In section 5, clause (ffa) shall be omitted. 2. In section 34A, in sub-section (3), the words “the Development Bank” shall be omitted. 3. In section 36AD, in sub-section (3), the words “the Development Bank,” shall be omitted. PART III AMENDMENT TO THE INDUSTRIAL DISPUTES ACT, 1947 (14 OF 1947) AMENDMENT In section 2, in clause (bb), the words “the Industrial Development Bank of India” shall be omitted. PART IV AMENDMENTS TO THE SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA ACT, 1989 (39 OF 1989) AMENDMENTS In section 2,— (a) for clause (h), the following clause shall be substituted, namely:— ‘(h) “industrial concern in the small scale sector” means any concern engaged or to be engaged in,— (i) the manufacture, preservation or processing of goods; (ii) shipping; (iii) mining including development of mines; (iv) the hotel industry; ----- (v) the transport of passengers or goods by road or by water or by air or by ropeway or by lift; (vi) the generation, storage or distribution of electricity or any other form of energy; (vii) the maintenance, repair, testing or servicing of machinery or equipment of any description or vehicles or vessels or motor boats or trailers or tractors; (viii) assembling, repairing or packing any article with the aid of machinery or power; (ix) the setting up of, or development of, an industrial area or an industrial estate; (x) fishing or providing shore facilities for fishing or maintenance thereof; (xi) providing special or technical knowledge or other services for the promotion of industrial growth; (xii) providing engineering, technical, financial, management, marketing or other services or facilities for industry; (xiii) service industry such as altering, ornamenting, polishing, finishing, oiling, washing, cleaning or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal; (xiv) providing medical, health or other allied services; (xv) providing services relating to information technology, telecommunication or electronics; (xvi) leasing, sub-leasing or giving on hire-purchase of industrial plants, equipments, machinery or other assets including vehicles, ships and aircraft; (xvii) such other activity as the Central Government may, having regard to the objects of this Act, by notification, specify in this behalf; or (xviii) the research and development of any concept, technology, design, process or product whether in relation to any of the matters aforesaid, including any activities specified under sub-clause (xvii), or any other matter and which is regarded as a small-scale undertaking under section 11B of the Industries (Development and Regulation) Act, 1951 (65 of 1951). _Explanation.—The expression “processing of goods” includes any art or process for producing,_ preparing or making an article by subjecting any material to a manual, mechanical, chemical, electrical or any other like operation.’; (b) after clause (la), the following clauses shall be inserted, namely:— ‘(lb) “Reserve Bank” means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934); (lc) “scheduled bank” means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);’; (c) clause (q) shall be omitted. -----
1-Jan-2004
01
The Sick Industrial Companies (Special Provisions) Repeal Act, 2003
https://www.indiacode.nic.in/bitstream/123456789/1414/1/A2004-01.pdf
central
# THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) REPEAL ACT, 2003 _________ ARRANGEMENT OF SECTIONS ___________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Repeal of Act 1 of 1986 and dissolution of Appellate Authority and Board. 4. Consequential provisions. 5. Saving. 6. Power to make rules. ----- # THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) REPEAL ACT, 2003 ACT NO. 1 OF 2004 [1st January, 2004.] # An Act to repeal the Sick Industrial Companies (Special Provisions) Act, 1985. BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Sick Industrial Companies** (Special Provisions) Repeal Act, 2003. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Appellate Authority'' means the Appellate Authority for Industrial and Financial Reconstruction constituted under section 5 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); (b) “Board'' means the Board for Industrial and Financial Reconstruction established under section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); (c) words and expressions used herein and not defined but defined in the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of1986), shall have the meanings respectively assigned to them in that Act. **3. Repeal of Act 1 of 1986 and dissolution of Appellate Authority and Board.—The Sick** Industrial Companies (Special Provisions) Act, 1985(hereinafter referred to as the repealed enactment) is hereby repealed and the Appellate Authority and the Board stand dissolved. **4. Consequential provisions.—On the dissolution of the Appellate Authority and the Board,—** (a) (i) the persons appointed as Chairman and Member of the Appellate Authority or the Board; and (ii) every other person appointed by the Central Government, Appellate Authority or the Board, and holding office as such immediately before the commencement of this Act, shall vacate his office and no such Chairman, Member or other person shall be entitled to claim any compensation for premature termination of the term of his office or of any contract of service: Provided that every officer or employee who has been, immediately before the dissolution of the Appellate Authority or the Board, appointed on deputation basis to the Appellate Authority or the Board, shall stand reverted to his parent cadre, Ministry or Department, as the case may be: Provided further that every officer or employee who has been, immediately before the dissolution of the Appellate Authority or the Board, employed on regular basis by the Appellate Authority or the Board, shall become, on and from the date of such dissolution, the officer and employee, respectively, of the Central Government with the same rights and privileges as to pension, gratuity and other like matters as would have been admissible to him if the rights in relation to such Appellate Authority or the Board had not been transferred to, and vested in, the Central Government and shall continue to do so unless and until his employment in the Central Government is duly terminated or until his remuneration, terms and conditions of employment are duly altered by that Government: Provided also that notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, the transfer of the services of any officer or other employee, employed in the Appellate Authority or the Board, to the Central Government, shall not entitle such officer or employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority: 1. 25th November, 2016, vide notification No. S.O. 3568(E), dated by 1st December, 2016, see Gazette of India, Extraordinary, Part II, sec. 3(ii). ----- Provided also that where the Appellate Authority or the Board has established a provident fund, superannuation, welfare or other fund for the benefit of the officers and employees employed in the Appellate Authority or the Board, the monies relatable to the officers and employees whose services have been transferred by or under this Act to the Central Government shall, out of the monies standing, on the dissolution of the Appellate Authority or the Board, to the credit of such provident fund, superannuation, welfare or other fund, stand transferred to, and vest in, the Central Government and such monies which stand so transferred shall be dealt with by that Government in such manner as may be prescribed; 1[(b) On such date as may be notified by the Central Government in this behalf, any appeal preferred to the Appellate Authority or any reference made or inquiry pending to or before the Board or any proceeding of whatever nature pending before the Appellate Authority or the Board under the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) shall stand abated: Provided that a company in respect of which such appeal or reference or inquiry stands abated under this clause may make reference to the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 within one hundred and eighty days from the commencement of the Insolvency and Bankruptcy Code, 2016 in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016: Provided further that no fees shall be payable for making such reference under Insolvency and Bankruptcy Code, 2016 by a company whose appeal or reference or inquiry stands abated under this clause.] 2[Provided also that any scheme sanctioned under sub-section (4) or any scheme under implementation under sub-section (12) of section 18 of the Sick Industrial Companies (Special Provisions) Act, 1985 shall be deemed to be an approved resolution plan under sub-section (1) of section 31 of the Insolvency and Bankruptcy Code, 2016 and the same shall be dealt with, in accordance with the provisions of Part II of the said Code: Provided also that in case, the statutory period within which an appeal was allowed under the Sick Industrial Companies (Special Provisions) Act, 1985 against an order of the Board had not expired as on the date of notification of this Act, an appeal against any such deemed approved resolution plan may be preferred by any person before National Company Law Appellate Tribunal within ninety days from the date of publication of this order.] (c) the balance of all monies (including any fee) received by, or advanced to the Appellate Authority or the Board, as the case may be, and not spent by it before the commencement of this Act shall, on the commencement of this Act, stand transferred to, and vest in, the Central Government and shall be utilised for the purposes of clauses (e) and (f); (d) all property of whatever kind owned by, or vested in, the Appellate Authority or the Board, as the case may be, and not spent by it before the commencement of this Act shall, on the commencement of this Act, stand transferred to, and shall vest in the Central Government; (e) all liabilities and obligations of whatever kind incurred by the Appellate Authority or the Board and subsisting immediately before the commencement of this Act shall, on and from the commencement of this Act, be deemed to be the liabilities or obligations, as the case maybe, of the Central Government; and any proceeding or cause of action, pending or existing immediately before the commencement of this Act by or against the Appellate Authority or the Board in relation to such liability or obligation may, as from the commencement of this Act, be continued or enforced by or against the Central Government; (f) all monies vested in the Central Government under clause (c) shall, after deducting the amount incurred for discharging the liabilities and obligations referred to in that clause, be refunded by the Central Government to the person to whom such amount is due. **5. Saving.—(1) The repeal by this Act of the repealed enactment shall not—** 1. Subs. by Act 31 of 2016, s. 252 and the Eighth Schedule, for sub-clause (b) (w.e.f. 1-11-2016). 2. Ins. by _vide the Insolvency and Bankruptcy Code (Removal of Difficulties) Order, 2017_ _vide Notification No. SO1683(E)_ dated 24-05-2017. ----- (a) affect any other enactment in which the repealed enactment has been applied, incorporated or referred to; (b) affect the previous operation of the repealed enactment or anything duly done or suffered there under; (c) affect any right, privilege, obligation or liability acquired, accrued, or incurred under the repealed enactment; (d) affect any order made by the Board for sanction of the schemes; (e) affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred or any remedy or proceeding in respect thereof or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing; (f) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against the repealed enactment, affect any investigation, legal proceedings or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such privilege, forfeiture or punishment may be imposed as if this Act had not been passed; (g) affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in, or from, the repealed enactment; (h) revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force. (2) Save as otherwise provided in section 4 and in sub-section (1) of this section, the mention of particular matters in the said section and sub-section shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeal. **6. Power to make rules.—(1) The Central Government may, by notification, make rules for carrying** out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner in which the monies standing to the credit of provident fund, superannuation, welfare or other fund of officers and employees on their transfer to the Central Government, shall be dealt with by that Government under the fourth proviso to clause (a) of section 4; (b) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. ___________ -----
21-Dec-2004
26
The Prevention of Terrorism (Repeal) Act, 2004
https://www.indiacode.nic.in/bitstream/123456789/1672/3/a2004-26.pdf
central
# THE PREVENTION OF TERRORISM (REPEAL) ACT, 2004 _______ ARRANGEMENT OF SECTION ______ SECTIONS 1. Short title and commencement. 2. Repeal of Act 15 of 2002 and saving. 3. Repeal and saving. ----- # THE PREVENTION OF TERRORISM (REPEAL) ACT, 2004 ACT NO. 26 OF 2004 [21st December, 2004.] # An Act to repeal the Prevention of Terrorism Act, 2002. BE it enacted by Parliament in the Fifty-fifth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Prevention of Terrorism** (Repeal) Act, 2004. (2) It shall be deemed to have come into force on the 21st day of September, 2004. **2. Repeal of Act 15 of 2002 and saving.—(1) The Prevention of Terrorism Act, 2002 (hereinafter** referred to as the principal Act) is hereby repealed. (2) The repeal of the principal Act shall not affect— (a) the previous operation of, or anything duly done or suffered under the principal Act, or (b) any right, privilege or obligation or liability acquired, accrued or incurred under the principal Act, or (c) any penalty, forfeiture or punishment incurred in respect of any offence under the principal Act, or (d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and, any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if the principal Act had not been repealed: Provided that notwithstanding anything contained in this sub-section or in any other law for the time being in force, no court shall take cognizance of an offence under the principal Act after the expiry of the period of one year from the commencement of this Act. (3) Notwithstanding the repeal of section 60 of the principal Act, the Review Committee constituted by the Central Government under sub-section (1) of that section, whether or not an application under sub-section (4) of that section has been made, shall review all cases registered under the principal Act as to whether there is a prima facie case for proceeding against the accused thereunder and such review shall be completed within a period of one year from the commencement of this Act and where the Review Committee is of the opinion that there is no prima facie case for proceeding against the accused, then,— (a) in cases in which cognizance has been taken by the Court, the cases shall be deemed to have been withdrawn; and (b) in cases in which investigations are pending, the investigations shall be closed forthwith, with effect from the date of issuance of the direction by such Review Committee in this regard. (4) The Review Committee constituted by the Central Government under sub-section (1) of section 60 of the principal Act shall, while reviewing cases, have powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:— (a) discovery and production of any document; (b) requisitioning any public record or copy thereof from any court or office. (5) The Central Government may constitute more Review Committees, as it may consider necessary, for completing the review within the period specified in sub-section (3). **3. Repeal and saving.—(1) The Prevention of Terrorism (Repeal) Ordinance, 2004 (Ord. 1 of 2004)** is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. -----
6-Jan-2005
02
The National Commission for Minority Educational Institutes Act, 2004
https://www.indiacode.nic.in/bitstream/123456789/1897/1/A2005-2.pdf
central
# THE NATIONAL COMMISSION FOR MINORITY EDUCATIONAL INSTITUTIONS ACT, 2004 ____________ # ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II THE NATIONAL COMMISSION FOR MINORITY EDUCATIONAL INSTITUTIONS 3. Constitution of National Commission for Minority Educational Institutions. 4. Qualifications for appointment as Chairperson or other member. 5. Term of office and conditions of service of Chairperson and Members. 6. Officers and other employees of Commission. 7. Salaries and allowances to be paid out of grants. 8. Vacancies, etc., not to invalidate proceedings of Commission. 9. Procedure to be regulated by Commission. CHAPTER III RIGHTS OF A MINORITY EDUCATIONAL INSTITUTION 10. Right to establish a Minority Educational Institution. 10A. Right of a Minority Educational Institution to seek affiliation. CHAPTER IV FUNCTIONS AND POWERS OF COMMISSION 11. Functions of Commission. 12. Powers of Commission. 12A. Appeal against orders of the Competent authority. 12B. Power of Commission to decide on the minority status of an educational institution. 12C. Power to cancel. 12D. Power of Commission to investigate matters relating to deprivation of educational rights of minorities. 12E. Power of Commission to call for information, etc. 12F. Bar of jurisdiction. 13. Financial and administrative powers of Chairperson. CHAPTER V FINANCE, ACCOUNTS AND AUDIT 14. Grants by Central Government. 15. Accounts and audit. 16. Annual report. 17. Annual report and audit report to be laid before Parliament. ----- CHAPTER VI MISCELLANEOUS SECTIONS 18. [Omitted.] 19. Chairperson, Members, Secretary, employees, etc., of Commission to be public servants. 20. Directions by Central Government. 21. Protection of action taken in good faith. 22. Act to have overriding effect. 23. Returns or information. 24. Power to make rules. 25. Power to remove difficulties. 26. Repeal and saving. _THE SCHEDULE. [Omitted]_ ----- # THE NATIONAL COMMISSION FOR MINORITY EDUCATIONAL INSTITUTIONS ACT, 2004 ACT NO. 2 OF 2005 [6th January, 2005.] # An Act to constitute a National Commission for Minority Educational Institutions and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the National Commission** for Minority Educational Institutions Act, 2004. (2) It extends to the whole of India [1]***. (3) It shall be deemed to have come into force on the 11th day of November, 2004. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “affiliation” together with its grammatical variations, includes, in relation to a college, recognition of such college by, association of such college with, and admission of such college to the privileges of, a [2]*** University; 3[(aa) “appropriate Government” means,— (i) in relation to an educational institution recognised for conducting its programmes of studies under any Act of Parliament, the Central Government; and (ii) in relation to any other educational institution recognised for conducting its programmes of studies under any State Act, a State Government in whose jurisdiction such institution is established;] 4* - - - (c) “Commission” means the National Commission for Minority Educational Institutions constituted under section 3; 3[(ca) “Competent authority” means the authority appointed by the appropriate Government to grant no objection certificate for the establishment of any educational institution of their choice by the minorities;] (d) “degree” means any such degree as may, with previous approval of the Central Government, be specified in this behalf by the University Grants Commission, by notification in the Official Gazette; 3[(da) “educational rights to minorities” means the rights of minorities to establish and administer educational institutions of their choice;] (e) “Member” means a member of the Commission and includes the Chairperson; (f) “minority”, for the purpose of this Act, means a community notified as such by the Central Government; 5[(g) “Minority Educational Institution” means a college or an educational institution established and administered by a minority or minorities;] (h) “prescribed” means prescribed by rules made under this Act; (i) “qualification” means a degree or any other qualification awarded by a University; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-102019). 2. The word “Scheduled” omitted by Act 18 of 2006, s. 2 (w.e.f. 23-1-2006). 3. Ins. by s. 2, ibid. (w.e.f. 23-1-2006). 4. Cl. (b) omitted by Act 20 of 2010, s. 2 (w.e.f.1-9-2010). ----- 1* - - - (k) “technical education” has the meaning assigned to it in clause (g) of section 2 of the All India Council for Technical Education Act, 1987 (52 of 1987); (l) “University” means a university defined under clause (f) of section 2 of the University Grants Commission Act, 1956 (3 of 1956), and includes an institution deemed to be a University under section 3 of that Act, or an institution specifically empowered by an Act of Parliament to confer or grant degrees. CHAPTER II THE NATIONAL COMMISSION FOR MINORITY EDUCATIONAL INSTITUTIONS **3. Constitution of National Commission for Minority Educational Institutions.—(1) The Central** Government shall, by notification in the Official Gazette, constitute a body to be known as the National Commission for Minority Educational Institutions to exercise the powers conferred on, and to perform the functions assigned to, it under this Act. (2) The Commission shall consist of a Chairperson and [2][three members] to be nominated by the Central Government. **4. Qualifications for appointment as Chairperson or other Member.—(1) A person shall not be** qualified for appointment as the Chairperson unless he,— (a) is a member of a minority community; and (b) has been a Judge of a High Court. (2) A person shall not be qualified for appointment as a Member unless he,— (a) is a member of a minority community; and (b) is a person of eminence, ability and integrity. **5. Term of office and conditions of service of Chairperson and Members.—(1) Every Member** shall hold office for a term of five years from the date on which he assumes office. (2) A Member may, by writing under his hand addressed to the Central Government, resign from the office of Chairperson or, as the case maybe, of Member at any time. (3) The Central Government shall remove a person from the office of Member if that person— (a) becomes an undischarged insolvent; (b) is convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; (c) becomes of unsound mind and stands so declared by a competent court; (d) refuses to act or becomes incapable of acting; (e) is, without obtaining leave of absence from the Commission, absent from three consecutive meetings of the Commission; or (f) in the opinion of the Central Government, has so abused the position of Chairperson or Member as to render that person's continuance in office detrimental to the public interest: Provided that no person shall be removed under this clause until that person has been given an opportunity of being heard in the matter. (4) A vacancy caused under sub-section (2) or otherwise shall be filled by fresh nomination and a person so nominated shall hold office for the unexpired period of the term for which his predecessor in office would have held office if such vacancy had not arisen. (5) The salaries and allowances payable to, and the other terms and conditions of service of, the Chairperson and Members shall be such as may be prescribed. 1. Cl. (j) omitted by Act 18 of 2006, s. 2 (w.e.f. 23-1-2006). ----- **6. Officers and other employees of Commission.—(1) The Central Government shall provide the** Commission with a Secretary and such other officers and employees as may be necessary for the efficient performance of the functions of the Commission under this Act. (2) The salaries and allowances payable to, and the other terms and conditions of service of, the Secretary, officers and other employees appointed for the purpose of the Commission shall be such as may be prescribed. **7. Salaries and allowances to be paid out of grants.—The salaries and allowances payable to the** Chairperson and Members and the administrative expenses, including salaries, allowances and pensions payable to the Secretary, officers and other employees referred to in section 6, shall be paid out of the grants referred to in sub-section (1) of section 14. **8. Vacancies, etc., not to invalidate proceedings of Commission.—No actor proceeding of the** commission shall be questioned or shall be invalid on the ground merely of the existence of any vacancy or defect in the constitution of the Commission. **9. Procedure to be regulated by Commission.—(1) The Commission shall meet as and when** necessary at such time and place as the Chairperson may think fit. (2) The Commission shall regulate its own procedure. (3) All orders and decisions of the Commission shall be authenticated by the Secretary or any other officer of the Commission duly authorized by the Secretary in this behalf. 1[CHAPTER III RIGHTS OF A MINORITY EDUCATIONAL INSTITUTION **10. Right to establish a Minority Educational Institution.—[2][(1) Subject to the provisions** contained in any other law for the time being in force, any person, who desires to establish a Minority Educational Institution may apply to the competent authority for the grant of no objection certificate for the said purpose.] (2) The Competent authority shall,— (a) on perusal of documents, affidavits or other evidence, if any; and (b) after giving an opportunity of being heard to the applicant, decide every application filed under sub-section (1) as expeditiously as possible and grant or reject the application, as the case may be: Provided that where an application is rejected, the Competent authority shall communicate the same to the applicant. (3) Where within a period of ninety days from the receipt of the application under sub-section (1) for the grant of no objection certificate,— (a) the Competent authority does not grant such certificate; or (b) where an application has been rejected and the same has not been communicated to the person who has applied for the grant of such certificate, it shall be deemed that the Competent authority has granted a no objection certificate to the applicant. (4) The applicant shall, on the grant of a no objection certificate or where the Competent authority has deemed to have granted the no objection certificate, be entitled to commence and proceed with the establishment of a Minority Educational Institution in accordance with the rules and regulations, as the case may be, laid down by or under any law for the time being in force. _Explanation.—For the purposes of this section,—_ (a) “applicant” means any person who makes an application under sub-section (1) for establishment of a Minority Educational Institution; 1. Subs. by Act 18 of 2006, s.3, for CHAPTER III (w.e.f. 23-1-2006). ----- (b) “no objection certificate” means a certificate stating therein, that the Competent authority has no objection for the establishment of a Minority Educational Institution. **10A. Right of a Minority Educational Institution to seek affiliation.—(1) A Minority Educational** Institution may seek affiliation to any University of its choice subject to such affiliation being permissible within the Act under which the said University is established. (2) Any person who is authorised in this behalf by the Minority Educational Institution, may file an application for affiliation under sub-section (1) to a University in the manner prescribed by the Statute, Ordinance, rules or regulations, of the University: Provided that such authorised person shall have right to know the status of such application after the expiry of sixty days from the date of filing of such application.] CHAPTER IV FUNCTIONS AND POWERS OF COMMISSION **11. Functions of Commission.—Notwithstanding anything contained in any other law for the time** being in force, the Commission shall— (a) advise the Central Government or any State Government on any question relating to the education of minorities that may be referred to it; 1[(b) enquire, suo motu, or on a petition presented to it by any Minority Educational Institution, or any person on its behalf into complaints regarding deprivation or violation of rights of minorities to establish and administer educational institutions of their choice and any dispute relating to affiliation to a University and report its finding to the appropriate Government for its implementation; (c) intervene in any proceeding involving any deprivation or violation of the educational rights of the minorities before a court with the leave of such court; (d) review the safeguards provided by or under the Constitution, or any law for the time being in force, for the protection of educational rights of the minorities and recommend measures for their effective implementation; (e) specify measures to promote and preserve the minority status and character of institutions of their choice established by minorities; (f) decide all questions relating to the status of any institution as a Minority Educational Institution and declare its status as such; (g) make recommendations to the appropriate Government for the effective, implementation of programmes and schemes relating to the Minority Educational Institutions; and (h) do such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of the objects of the Commission.] **12. Powers of Commission.—(1) If any dispute arises between a minority educational institution and** a [2]*** University relating to its affiliation to such University, the decision of the Commission thereon shall be final. (2) The Commission shall, for the purposes of discharging its functions under this Act, have all the powers of a civil court trying a suit and in particular, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person from any part of India and examining him on oath; (b) requiring the discovery and production of any document; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or copy of such record or document from any office; 1. Subs. by Act 18 of 2006, s. 4, for cls. (b) and (c) (w.e.f. 23-1-2006). ----- (e) issuing commissions for the examination of witnesses or documents; and (f) any other matter which may be prescribed. 1[(3) Every proceeding before the Commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860) and the Commission shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).] 2[12A. Appeal against orders of the Competent authority.—(1) Any person aggrieved by the order of refusal to grant no objection certificate under sub-section (2) of section 10 by the Competent authority for establishing a Minority Educational Institution, may prefer an appeal against such order to the Commission. (2) An appeal under sub-section (1) shall be filed within thirty days from the date of the order referred to in sub-section (1) communicated to the applicant: Provided that the Commission may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that there was sufficient cause for not filing it within that period. (3) An appeal to the Commission shall be made in such form as may be prescribed and shall be accompanied by a copy of the order against which the appeal has been filed. (4) The Commission, after hearing the parties, shall pass an order as soon as may be practicable, and give such directions as may be necessary or expedient to give effect to its orders or to prevent abuse of its process or to secure the ends of justice. (5) An order made by the Commission under sub-section (4) shall be executable by the Commission as a decree of a civil court and the provisions of the Code of Civil Procedure, 1908 (5 of 1908), so far as may be, shall apply as they apply in respect of a decree of a civil court. **12B. Power of Commission to decide on the minority status of an educational institution.—(1)** Without prejudice to the provisions contained in the National Commission for Minorities Act, 1992 (19 of 1992), where an authority established by the Central Government or any State Government, as the case may be, for grant of minority status to any educational institution rejects the application for the grant of such status, the aggrieved person may appeal against such order of the authority to the Commission. (2) An appeal under sub-section (1) shall be preferred within thirty days from the date of the order communicated to the applicant: Provided that the Commission may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that there was sufficient cause for not filing it within that period. (3) An appeal to the Commission shall be made in such form as may be prescribed and shall be accompanied by a copy of the order against which the appeal has been filed. (4) On receipt of the appeal under sub-section (3), the Commission may, after giving the parties to the appeal an opportunity of being heard, [3]*** decide on the minority status of the educational institution and shall proceed to give such direction as it may deem fit and, all such directions shall be binding on the parties. _Explanation.—For the purposes of this section and section 12C, “authority” means any authority or_ officer or commission which is established under any law for the time being in force or under any order of the appropriate Government, for the purpose of granting a certificate of minority status to an educational institution. **12C. Power to cancel.—The Commission may, after giving a reasonable opportunity of being heard** to a Minority Educational Institution to which minority status has been granted by an authority or 1. Ins. by Act 18 of 2006, s.5 (w.e.f. 23-1-2006). 2. Ins. by s.6, ibid. (w.e.f. 23-1-2006). ----- Commission, as the case may be, cancel such status under the following circumstances, namely:— (a) if the constitution, aims and objects of the educational institution, which has enabled it to obtain minority status has subsequently been amended in such a way that it no longer reflects the purpose or character of a Minority Educational Institution; (b) if, on verification of the records during the inspection or investigation, it is found that the Minority Educational Institution has failed to admit students belonging to the minority community in the institution as per rules and prescribed percentage governing admissions during any academic year. **12D. Power of Commission to investigate matters relating to deprivation of educational rights** **of minorities.—(1) The Commission shall have the power to investigate into the complaints relating to** deprivation of the educational rights of minorities. (2) The Commission may, for the purpose of conducting any investigation pertaining to a complaint under this Act, utilise the services of any officer of the Central Government or any State Government with the concurrence of the Central Government or the State Government, as the case may be. (3) For the purpose of investigation under sub-section (1), the officer whose services are utilised may, subject to the direction and control of the Commission,— (a) summon and enforce the attendance of any person and examine him; (b) require the discovery and production of any document; and (c) requisition any public record or copy thereof from any office. (4) The officer whose services are utilised under sub-section (2) shall investigate into any matter entrusted to it by the Commission and submit a report thereon to it within such period as may be specified by the Commission in this behalf. (5) The Commission shall satisfy itself about the correctness of the facts stated and the conclusion, if any, arrived at in the report submitted to it under sub-section (4) and for this purpose the Commission may make such further inquiry as it may think fit. **12E. Power of Commission to call for information, etc.—(1) The Commission, while enquiring** into the complaints of violation or deprivation of educational rights of minorities shall call for information or report from the Central Government or any State Government or any other authority or organisation subordinate thereto, within such time as may be specified by it: Provided that,— (a) if the information or report is not received within the time stipulated by the Commission, it may proceed to inquire into the complaint; (b) if, on receipt of information or report, the Commission is satisfied either that no further inquiry is required, or that the required action has been initiated or taken by the concerned Government or authority, it may not proceed with the complaint and inform the complainant accordingly. (2) Where the inquiry establishes violation or deprivation of the educational rights of the minorities by a public servant, the Commission may recommend to the concerned Government or authority, the initiation of disciplinary proceedings or such other action against the concerned person or persons as may be deemed fit. (3) The Commission shall send a copy of the inquiry report, together with its recommendations to the concerned Government or authority and the concerned Government authority shall, within a period of one month, or such further time as the Commission may allow, forward its comments on the report, including the action taken, or proposed to be taken thereon, to the Commission. (4) The Commission shall publish its inquiry report and the action taken or proposed to be taken by the concerned Government or authority on the recommendations of the Commission. **12F. Bar of jurisdiction.—No court (except the Supreme Court and a High Court exercising** jurisdiction under articles 226 and 227 of the Constitution) shall entertain any suit, application or other proceedings in respect of any order made under this Chapter.] ----- **13. Financial and administrative powers of Chairperson.—The Chairperson shall exercise such** financial and administrative powers as may be vested in him by the rules made under this section: Provided that the Chairperson shall have authority to delegate such of the financial and administrative powers as he may think fit to any Member or Secretary or any other officer of the Commission subject to the condition that such Member or Secretary or officer shall, while exercising such delegated powers, continue to act under the direction, control and supervision of the Chairperson. CHAPTER V FINANCE, ACCOUNTS AND AUDIT **14. Grants by Central Government.—(1) The Central Government shall, after due appropriation** made by Parliament by law in this behalf, pay to the Commission by way of grants such sums of money as the Central Government may think fit for being utilised for the purposes of this Act. (2) The Commission may spend such sums of money as it thinks fit for performing the functions under this Act, and such sums shall be treated as expenditure payable out of the grants referred to in sub-section (1). **15. Accounts and audit.—(1) The Commission shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Commission shall be audited by the Comptroller and Auditor-General at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Commission to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the Commission under this Act shall have the same rights and privileges and the authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Commission. **16. Annual report.—The Commission shall prepare, in such form and at such time, for each** financial year, as may be prescribed, its annual report, giving a full account of its activities during the previous financial year and forward a copy thereof to the Central Government. **17. Annual report and audit report to be laid before Parliament.—The Central Government shall** cause the annual report, together with a memorandum of action taken on the advice tendered by the Commission under section 11 and the reasons for the non-acceptance, if any, of any such advice, and the audit report to be laid as soon as may be after they are received before each House of Parliament. CHAPTER VI MISCELLANEOUS **18.** [Power to amend Schedule.] Omitted by the National Commission for Minority Educational _Institutions (Amendment) Act, 2006 (18 of 2006), s. 7 (w.e.f. 23-1-2006)._ **19. Chairperson, Members, Secretary, employees, etc., of Commission to be public servants.—** The Chairperson, Members, Secretary, officers and other employees of the Commission shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **20. Directions by Central Government.—(1) In the discharge of its functions under this Act, the** Commission shall be guided by such direction on questions of policy relating to national purposes, as may be given to it by the Central Government. (2) If any dispute arises between the Central Government and the Commission as to whether a question is or is not a question of policy relating to national purposes, the decision of the Central Government shall be final. **21. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government, Commission, Chairperson, Members, Secretary or any officer or other employee of the Commission for anything which is in good faith done or intended to be done under this Act ----- **22. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **23. Returns or information.—The Commission shall furnish to the Central Government such returns** or other information with respect to its activities as the Central Government may, from time to time, require. **24. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (a) the salaries and allowances payable to, and the other terms and conditions of the service of, the Chairperson and Members under sub-section (5) of section 5 and of the Secretary, officers and other employees under sub-section (2) of section 6; 1[(aa) the forms in which appeal under sub-section (3) of the section 12A and sub-section (3) of section 12B shall be made;] (b) the financial and administrative powers to be exercised by the Chairperson under section 13; (c) the form in which the annual statement of accounts shall be prepared under sub-section (1) of section 15; (d) the form in, and the time at, which the annual report shall be prepared under section 16; (e) any other matter which is required to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **25. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient, for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **26. Repeal and saving.—(1) The National Commission for Minority Educational Institutions** Ordinance, 2004 (Ord. 6 of 2004) is hereby repealed. (2) Notwithstanding the repeal of the said Ordinance, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. [THE SCHEDULE.] _Omitted by the National Commission for Minority Educational Institutions_ _(Amendment) Act, 2006 (18 of 2006), s.9 (w.e.f. 23-1-2006)._ ________________ -----
31-Mar-2005
14
The parel investments and trading private limited and domestic gas private limited (taking over of management) repeal act, 2005
https://www.indiacode.nic.in/bitstream/123456789/18939/1/a2005-14.pdf
central
THE PAREL INVESTMENTS AND TRADING PRIVATE LIMITED AND DOMESTIC GAS PRIVATE LIMITED (TAKING OVER OF MANAGEMENT) REPEAL ACT, 2005 _______ ARRANGEMENT OF SECTION ______ SECTIONS 1. Short Title. 2. Repeal and saving. ----- THE PAREL INVESTMENTS AND TRADING PRIVATE LIMITED AND DOMESTIC GAS PRIVATE LIMITED (TAKING OVER OF MANAGEMENT) REPEAL ACT, 2005 ACT NO. 14 OF 2005 [31st March, 2005.] An Act to repeal the Parel Investments and Trading Private Limited and Domestic Gas Private Limited (Taking Over of Management) Act, 1979. WHEREAS for giving effect to the policy of the State towards securing the principle specified in clause (b) of article 39 of the Constitution, it was proposed to acquire the undertakings of the Parel Investments and Trading Private Limited (hereinafter referred to as “PITCL”) as well as Domestic Gas Private Limited (hereinafter referred to as “DGPL”) and collectively referred to as “the said Companies” so that the means and resources as to bottling, transporting, marketing and distribution of liquefied petroleum gas of the said Companies become vested in the State and thereby, are so distributed as best to sub-serve the common good; AND WHEREAS pending the acquisition of the undertakings of the said Companies for the purpose of nationalisation of the business of bottling, transporting, marketing and distribution of liquid petroleum gas carried on by them, the management of the undertakings of the said Companies was taken over by the Central Government by the Parel Investments and Trading Private Limited and Domestic Gas Private Limited (Taking Over of Management) Act, 1979 (29 of 1979), and the Hindustan Petroleum Corporation Limited was appointed as the Custodian of the said undertakings; And whereas in terms of a Memorandum of Compromise entered into on the 11th April, 2002 by the said Companies and its certain shareholders on the one part and the Central Government and the Custodian on the other part, two separate Deeds of Assignment both dated the 2nd April, 2004 were executed between PITCL and DGPL respectively through the Custodian as the Assignors and the Central Government as the Assignee and registered with the Sub- Registrar of Assurances at Mumbai on the 2nd August, 2004, to assign, transfer and vest in the Central Government, the undertakings and business of the said Companies together with their assets and properties and more particularly described in sub- section (2) of section 3 of the said Act and in the manner set out in the said Memorandum of Compromise, but excluding the assets not to be taken over and to be handed over back to PITCL and DGPL respectively for the consideration and in the manner set out in the said Deeds; And whereas in terms of the said Memorandum of Compromise two other separate Deeds of Assignment both dated the 2nd April, 2004 were executed between the Central Government and the Hindustan Petroleum Corporation Limited and registered with the Sub- Registrar of Assurances at Mumbai on the 2nd August, 2004, to assign, transfer and vest in the Hindustan Petroleum Corporation Limited the undertakings and business of the said Companies together with their assets and properties excluding the assets not to be taken over and to be handed over back to PITCL and DGPL respectively for the consideration and in the manner set out in the said Deeds; AND WHEREAS in pursuance of the execution of the aforesaid Deeds of Assignment and acquisition of undertakings of the said Companies by the Central Government and thereafter by the Hindustan Petroleum Corporation Limited, it has become necessary to repeal the said Act and to revest the management of the said Companies in respect of their business and assets other than those relating to liquefied petroleum gas through their respective board of directors, as may be appointed in accordance with the law for the time being in force. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— **1. Short title.— This Act may be called the Parel Investments and Trading Private Limited and** Domestic Gas Private Limited (Taking Over of Management) Repeal Act, 2005. **2. Repeal and saving.— (1) The Parel Investments and Trading Private Limited and Domestic Gas** Private Limited (Taking Over of Management) Act, 1979 (29 of 1979) is hereby repealed.; (2) On the repeal of the Parel Investments and Trading Private Limited and Domestic Gas Private Limited (Taking Over of Management) Act, 1979 (29 of 1979) the management of the Parel Investments and Trading Private Limited and Domestic Gas Private Limited shall be vested and deemed to have been ----- vested in the respective board of directors of the said Companies to be appointed after such repeal and possession of the assets of the said Companies relating to their business other than the business relating to liquefied petroleum gas and not taken over by the Central Government by the Act so repealed shall be deemed to have been taken over by, and continued with, the said Companies through their respective board of directors, as may be appointed in accordance with the law for the time being in force. (3) Notwithstanding such repeal and without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897) with respect to repeals, anything done or action taken including any agreement entered into under any provision of the Parel Investments and Trading Private Limited and Domestic Gas Private Limited (Taking Over of Management) Act, 1979 (29 of 1979), by the Central Government or the Custodian appointed by it shall continue to be in force and have effect as if this Act had not been passed. -----
6-Jun-2005
21
The Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005
https://www.indiacode.nic.in/bitstream/123456789/2017/1/a2005-21.pdf
central
# THE WEAPONS OF MASS DESTRUCTION AND THEIR DELIVERY SYSTEMS (PROHIBITION OF UNLAWFUL ACTIVITIES) ACT, 2005 ______________ # ARRANGEMENT OF SECTIONS ______________ SECTIONS 1. Short title and commencement. 2. Act in addition to other laws. 3. Extent and application. 4. Definitions. 5. Power to identify, designate, categorise or regulate certain activities. 6. Power to appoint Advisory Committees. 7. Delegation of powers. 8. Prohibition relating to weapons of mass destruction. 9. Prohibition relating to non-State actor or terrorist. 10. Prohibition as regards intimidating acts. 11. Prohibition on export. 12. Prohibition on brokering. 12A. Prohibition on financing 13. Regulation of export, transfer, re-transfer, transit and transshipment. 14. Offences and penalties. 15. Punishment for aiding non-State actor or terrorist. 16. Punishment for unauthorised export. 17. Punishment for violation of other provisions of the Act. 18. Penalty for using false or making forged documents, etc. 19. Punishment for offences with respect to which no provision has been made. 20. Offences by companies. 21. Cognizance of offences. 22. Bar of jurisdiction of civil courts. 23. Effect of other laws. 24. Protection of action taken in good faith. 25. Special provisions as to Central Government. 26. Power to make rules. 27. Power to remove difficulties. 1 ----- # THE WEAPONS OF MASS DESTRUCTION AND THEIR DELIVERY SYSTEMS (PROHIBITION OF UNLAWFUL ACTIVITIES) ACT, 2005 ACT NO. 21 OF 2005 [6th June, 2005.] # An Act to prohibit unlawful activities, in relation to weapons of mass destruction and their delivery systems and for matters connected therewith or incidental thereto. WHEREAS India is determined to safeguard its national security as a Nuclear Weapon State; AND WHEREAS India is committed not to transfer nuclear weapons or other nuclear explosive devices, or to transfer control over such weapons or explosive devices, and not in any way to assist, encourage, or induce any other country to manufacture nuclear weapons or other nuclear explosive devices; AND WHEREAS India is committed to prevent a non-State actor and a terrorist from acquiring weapons of mass destruction and their delivery systems; AND WHEREAS India is committed to the objective of global nuclear disarmament; AND WHEREAS India is committed to its obligations as a State Party to the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction and the Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction; AND WHEREAS India is exercising controls over the export of chemicals, organisms, materials, equipment and technologies in relation to weapons of mass destruction and their delivery systems under other relevant Acts; AND WHEREAS it is considered necessary to provide for integrated legal measures to exercise controls over the export of materials, equipment and technologies and to prohibit unlawful activities in relation to weapons of mass destruction and their means of delivery. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Weapons of Mass Destruction** and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Act in addition to other laws.—Save as otherwise expressly provided in this Act, the provisions** of this Act shall be in addition to any other relevant Act for the time being in force in relation to any matter covered under this Act. **3. Extent and application.—(1) It extends to the whole of India including its Exclusive Economic** Zone. (2) Every person shall be liable to punishment under this Act for every act or omission contrary to the provisions thereof, of which he is held guilty in India. (3) Any person who commits an offence beyond India, which is punishable under this Act, shall be dealt with according to the provisions of this Act in the same manner as if such act had been committed in India. (4) The provisions of this Act shall also apply to— (a) citizens of India outside India; (b) companies or bodies corporate, registered or incorporated in India or having their associates, branches or subsidiaries, outside India; 1. 17th November, 2006, _vide notification No. S.O. 1990(E), dated 17th November, 2006,_ _see Gazette of India, Extraordinary,_ Part II, sec. 3(ii). 2 ----- (c) any ship, aircraft or other means of transport registered in India or outside India, wherever it may be; (d) foreigners while in India; (e) persons in the service of the Government of India, within and beyond India. (5) Notwithstanding the applicability of the provisions of any other Central Act relating to any activity provided herein, the provisions of this Act shall apply to export, transfer, re-transfer, transit and trans-shipment of material, equipment or technology of any description as are identified, designated, categorised or considered necessary by the Central Government, as pertinent or relevant to India as a Nuclear Weapon State, or to the national security of India, or to the furtherance of its foreign policy or its international obligations under any bilateral, multilateral or international treaty, Covenant, Convention or arrangement relating to weapons of mass destruction or their means of delivery, to which India is a Party. **4. Definitions.—In this Act, unless the context otherwise requires,—** (a) “biological weapons” are— (i) microbial or other biological agents, or toxins whatever their origin or method of production, of types and in quantities that have no justification for prophylactic, protective or other peaceful purposes; and (ii) weapons, equipment or delivery systems specially designed to use such agents or toxins for hostile purposes or in armed conflict; (b) “brought in transit” means to bring goods from any country into India by land, air, or amphibious means of transportation, where the goods are to be taken out from India on the same conveyance on which they are brought into India without any landing in India, but does not include a conveyance in innocent passage through Indian territory, Indian territorial waters or Indian airspace of a foreign conveyance carrying goods. _Explanation I.—A conveyance is a foreign conveyance if it is not registered in India._ _Explanation II.—A conveyance is in “innocent passage” if it is not engaged in relevant_ activity and passes through or above Indian territorial waters or airspace without stopping or anchoring in India; (c) “chemical weapons” means,— (i) the toxic chemicals and their precursors, except where intended for— (a) industrial, agricultural, research, medical, pharmaceutical or other peaceful purposes; (b) protective purposes, namely those purposes directly related to protection against toxic chemicals and to protection against chemical weapons; (c) military purposes not connected with the use of chemical weapons and not dependent on the use of the toxic properties of chemicals as a method of warfare; or (d) law enforcement including domestic riot control purposes; as long as the types and quantities are consistent with such purposes; (ii) the munitions and devices, specifically designed to cause death or other harm through the toxic properties of those toxic chemicals specified in sub-clause (i), which would be released as a result of the employment of such munitions and devices; and (iii) any equipment specifically designed for use directly in connection with the employment of munitions and devices specified in sub-clause (ii), together or separately; (d) “export” shall have the meaning assigned to this expression in the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992); 3 ----- (e) “fissile material” and “radioactive material” shall have the meanings assigned to these expressions in the Atomic Energy Act, 1962 (33 of 1962); (f) “item” means materials, equipment, and technology, of any description, notified under this Act or any other Act related to relevant activity; (g) “non-State actor” is a person or entity not acting under the lawful authority of any country; (h) “nuclear weapon or other nuclear explosive device” means any nuclear weapon or other nuclear explosive device as may be determined by the Central Government, whose determination in the matter shall be final; (i) “public domain” means domain that has no restrictions upon dissemination of information within or from it; the existence of any legal rights to intellectual property in that information does not remove such information from being in public domain; (j) “relevant activity” means,— (i) the development, production, handling, operation, maintenance, storage or dissemination of a nuclear, chemical or biological weapon; or (ii) the development, production, maintenance, storage or dissemination of missiles specially designed for delivering any such weapon; (k) “re-transfer” means transfer of any item notified under this Act from any country or entity to which it has been exported from India, to yet another country or entity; (l) “technology” means any information (including information embodied in software) other than information in the public domain, that is capable of being used in— (i) the development, production or use of any goods or software; (ii) the development of, or the carrying out of, an industrial or commercial activity or the provision of a service of any kind. _Explanation.—When technology is described wholly or partly by reference to the uses to which it_ (or the goods to which it relates) may be put, it shall include services which are provided or used, or which are capable of being used, in the development, production or use of such technology or goods; (m) “terrorist” shall have the meaning assigned to this expression in the Unlawful Activities (Prevention) Act, 1967 (37 of 1967); (n) “trans-shipment” means to remove goods from the conveyance on which they were brought into India and to place the goods on the same or another conveyance for the purpose of taking them out of India, where these acts are carried out on a “through bill of lading”, “through airway bill” or “through manifest”. _Explanation.—”through bill of lading”, “through airway bill” and “through manifest” means_ respectively a bill of lading, airway bill and manifest, for the consignment of goods from a place outside India to a destination which is also outside India without a consignee in India; (o) “unlawful” means without the authority of the Central Government and the expression “unlawfully” shall be construed accordingly; (p) “weapons of mass destruction” means any biological, chemical or nuclear weapons. **5. Power to identify, designate, categorise or regulate certain activities.—(1) The Central** Government may identify, designate, categorise or regulate, the export, transfer, re-transfer, transshipment, or transit of any item related to relevant activity in such manner as may be prescribed. (2) The Central Government may, by order published in the Official Gazette, designate or notify any item related to relevant activity for the purposes of this Act. 4 ----- **6. Power to appoint Advisory Committees.—For the purposes of this Act, the Central Government** may appoint such Advisory Committees as it deems fit, and may appoint to them persons to exercise such powers and perform such duties as the Central Government may, by rules, prescribe. **7. Delegation of powers.—(1) Subject to the provisions of this Act and any other law for the time** being in force, related to relevant activity, the Central Government shall have the power to direct or assign to any authority, in such manner as it may deem appropriate, such powers as may be necessary to implement the provisions of this Act. (2) The Central Government may appoint a Licensing Authority and an Appellate Authority and make provisions relating to such authority and for licensing in such manner and in such form, as the Central Government may, by rules, prescribe. (3) Without prejudice to the generality of the provisions contained in this Act, the authorities and mechanisms provided under other relevant Acts shall continue to deal with matters covered under those Acts: Provided that in case of any doubt as to whether a matter falls within the scope of such relevant Acts or under this Act, the decision of the Central Government thereon shall be final. **8. Prohibition relating to weapons of mass destruction.—(1) No person shall unlawfully** manufacture, acquire, possess, develop or transport a nuclear weapon or other nuclear explosive device and their means of delivery. (2) No person shall unlawfully transfer, directly or indirectly, to any one a nuclear weapon or other nuclear explosive device, or transfer control over such a weapon, knowing it to be a nuclear weapon or other nuclear explosive device. (3) No person shall unlawfully manufacture, acquire, possess, develop or transport a biological or chemical weapon or their means of delivery. (4) No person shall unlawfully transfer, directly or indirectly, to any one biological or chemical weapons. (5) No person shall unlawfully transfer, directly or indirectly, to any one missiles specially designed for the delivery of weapons of mass destruction. **9. Prohibition relating to non-State actor or terrorist.—No person shall, directly or indirectly,** transfer to a non-State actor or terrorist, any material, equipment and technology notified under this Act or any other Act related to relevant activity: Provided that such transfer made to a non-State actor shall not include a transfer made as such to any person acting under lawful authority in India. **10. Prohibition as regards intimidating acts.—No person shall transfer, acquire, possess, or** transport fissile or radioactive material, which is intended to be used to cause, or in a threat to cause, death or serious injury or damage to property for the purpose of intimidating people or a section of the people in India or in any foreign country, or compelling the Government of India or the Government of a foreign country or an international organisation or any other person to do so or abstain from doing any act. **11. Prohibition on export.—No person shall export any material, equipment or technology knowing** that such material, equipment or technology is intended to be used in the design or manufacture of a biological weapon, chemical weapon, nuclear weapon or other nuclear explosive device, or in their missile delivery systems. **12. Prohibition on brokering.—No person who is a resident in India shall, for a consideration under** the terms of an actual or implied contract, knowingly facilitate the execution of any transaction which is prohibited or regulated under this Act: Provided that a mere carriage, without knowledge, of persons, goods or technology, or provision of services, including by a public or private carrier of goods, courier, telecommunication, postal service provider or financial service provider, shall not be an offence for the purposes of this section. 5 ----- 1[12A. Prohibition on financing.—(1) No person shall finance any activity which is prohibited under this Act, or under the United Nations (Security Council) Act, 1947 (43 of 1947) or any other relevant Act for the time being in force, or by an order issued under any such Act, in relation to weapons of mass destruction and their delivery systems. (2) For prevention of financing by any person of any activity which is prohibited under this Act, or under the United Nations (Security Council) Act, 1947 (43 of 1947) or any other relevant Act for the time being in force, or by an order issued under any such Act, in relation to weapons of mass destruction and their delivery systems, the Central Government shall have power to— (a) freeze, seize or attach funds or other financial assets or economic resources— (i) owned or controlled, wholly or jointly, directly or indirectly, by such person; or (ii) held by or on behalf of, or at the direction of, such person; or (iii) derived or generated from the funds or other assets owned or controlled, directly or indirectly, by such person; (b) prohibit any person from making funds, financial assets or economic resources or related services available for the benefit of persons related to any activity which is prohibited under this Act, or under the United Nations (Security Council) Act, 1947 (43 of 1947) or any other relevant Act for the time being in force, or by an order issued under any such Act, in relation to weapons of mass destruction and their delivery systems. (3) The Central Government may exercise its powers under this section through any authority who has been assigned the power under sub-section (1) of Section 7.] **13. Regulation of export, transfer, retransfer, transit and transshipment.—(1) No item notified** under this Act shall be exported, transferred, re-transferred, brought in transit or transhipped except in accordance with the provisions of this Act or any other relevant Act. (2) Any transfer of technology of an item whose export is prohibited under this Act or any other relevant Act relating to relevant activity shall be prohibited. (3) When any technology is notified under this Act or any other relevant Act, as being subject to transfer controls, the transfer of such technology shall be restricted to the extent notified thereunder. _Explanation.—The transfer of technology may take place through either or both of the following_ modes of transfer, namely:— (a) by a person or from a place within India to a person or place outside India; (b) by a person or from a place outside India to a person, or a place, which is also outside India (but only where the transfer is by, or within the control of, person, who is a citizen of India, or any person who is a resident in India). (4) The Central Government may notify any item as being subject to the provisions of this Act, whether or not it is covered under any other relevant Act; and when such item is exhibited, sold, supplied or transferred to any foreign entity or a foreigner who is resident, operating, visiting, studying, or conducting research or business within the territorial limits of India, or in its airspace or Exclusive Economic Zone, it shall constitute an offence. 1. Ins. by Act 14 of 2022, s. 2 (w.e.f. 10-11-2022). 6 ----- **14. Offences and penalties.—Any person who contravenes, or attempts to contravene or abets, the** provisions of section 8 or section 10 of this Act, shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life, and shall also be liable to fine. **15. Punishment for aiding non-State actor or terrorist.—(1) Any person who, with intent to aid** any non-State actor or terrorist, contravenes the provisions of section 9 of this Act, shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life, and shall also be liable to fine. (2) Any person who, with intent to aid any non-State actor or terrorist, attempts to contravene or abets, or does any act preparatory to contravention of sub-section (1), shall be deemed to have contravened that provision and the provision of sub-section (1) shall apply subject to the modification that the reference to “imprisonment for life” therein shall be construed as a reference to “imprisonment for ten years”. (3) While determining the punishment under this section, the court shall take into consideration whether the accused had the knowledge about the transferee being a non-State actor or not. **16. Punishment for unauthorised export.—(1) Any person who knowingly contravenes, abets or** attempts to contravene, the provisions of sub-section (4) of section 13 of this Act, shall be punishable with fine which shall not be less than three lakh rupees and which may extend to twenty lakh rupees. (2) If any person is again convicted of the same offence under sub-section (1), then he shall be punishable for the second and every subsequent offence with imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine. **17. Punishment for violation of other provisions of the Act.—(1) Where any person contravenes,** or abets or attempts to contravene, any provision of this Act other than the provisions under sections 8, 9, 10 and sub-section (4) of section 13 of this Act, he shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine. (2) If any person is again convicted of the same offence under sub-section (1), then he shall be punishable for the second and every subsequent offence with imprisonment for a term which shall not be less than one year but which may extend to seven years and shall also be liable to fine. **18. Penalty for using false or making forged documents, etc.—Where any person signs or uses, or** causes to be signed or used, any declaration, statement or document submitted to the competent authority knowing or having reason to believe that such declaration, statement or document is forged or tampered with or is false in any material particular, and relates to items notified under this Act or any other relevant Act, including those related to relevant activity, he shall be punishable with fine which shall not be less than five lakh rupees or five times the value of the materials, equipment, technology or services, whichever is more. **19. Punishment for offences with respect to which no provision has been made.—Whoever** contravenes any other provision of this Act or any rule or order made thereunder for which no specific punishment is provided, shall be punishable with imprisonment for a term which may extend to one year, or with fine, or with both. **20. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other 7 ----- officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section—_ (a) “company” means any body corporate and includes a firm and other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **21. Cognizance of offences.—No Court shall take cognizance of any offence under this Act without** the previous sanction of the Central Government or any officer authorised by the Central Government in this behalf. **22. Bar of jurisdiction of civil courts.—No action or proceedings taken under section 5 and sub-** sections (1) and (2) of section 7 of this Act by the Central Government or any officer authorised by it in this behalf shall be called in question in any civil court in any suit or application or by way of appeal or revision, and no injunction shall be granted by any civil court or other authority in respect of any action taken or to be taken in pursuance of any power conferred under those provisions. **23. Effect of other laws.—(1) The provisions of this Act shall have effect notwithstanding anything** inconsistent therewith contained in any enactment other than this Act or any other instrument having effect by virtue of any enactment other than this Act. (2) Where any act or omission constitutes an offence punishable under this Act and also under any other relevant Act, then the offender found guilty of such offence shall be liable to be punished under that Act which imposes a greater punishment. **24. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or any officer or authority of the Central Government or any other authority on whom powers have been conferred pursuant to this Act, for anything which is in good faith done or purported to be done in pursuance of this Act or any rule or order made thereunder. **25. Special provisions as to Central Government.—Nothing in this Act shall affect the activities of** the Central Government in the discharge of its functions relating to the security or the defence of India. **26. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) manner of regulating any item related to relevant activity under sub-section (1) of section 5; (b) appointment of Advisory Committees, their powers and duties under section 6; (c) appointment of Licensing and Appellate Authority and the manner of licensing under sub section (2) of section 7; and (d) any other matter which has to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **27. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty: 8 ----- Provided that no order shall be made under this section after the expiry of the period of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. ``` ____________ ``` 9 -----
15-Jun-2005
22
The Right to Information Act, 2005
https://www.indiacode.nic.in/bitstream/123456789/2065/5/a2005-22.pdf
central
# THE RIGHT TO INFORMATION ACT, 2005 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II RIGHT TO INFORMATION AND OBLIGATIONS OF PUBLIC AUTHORITIES 3. Right to information. 4. Obligations of public authorities. 5. Designation of Public Information Officers. 6. Request for obtaining information. 7. Disposal of request. 8. Exemption from disclosure of information. 9. Grounds for rejection to access in certain cases. 10. Severability. 11. Third party information. CHAPTER III THE CENTRAL INFORMATION COMMISSION 12. Constitution of Central Information Commission. 13. Terms of office and conditions of service. 14. Removal of Chief Information Commissioner or Information Commissioner. CHAPTER IV THE STATE INFORMATION COMMISSION 15. Constitution of State Information Commission. 16. Term of office and conditions of service. 17. Removal of State Chief Information Commissioner or State Information Commissioner. CHAPTER V POWERS AND FUNCTIONS OF THE INFORMATION COMMISSIONS, APPEAL AND PENALTIES 18. Powers and functions of Information Commissions. 1 ----- SECTIONS 19. Appeal. 20. Penalties. CHAPTER VI MISCELLANEOUS 21. Protection of action taken in good faith. 22. Act to have overriding effect. 23. Bar of jurisdiction of courts. 24. Act not to apply to certain organisations. 25. Monitoring and reporting. 26. Appropriate Government to prepare programmes. 27. Power to make rules by appropriate Government. 28. Power to make rules by competent authority. 29. Laying of rules. 30. Power to remove difficulties. 31. Repeal. THE FIRST SCHEDULE. THE SECOND SCHEDULE. 2 ----- # THE RIGHT TO INFORMATION ACT, 2005 ACT NO. 22 OF 2005 [15th June, 2005.] # An Act to provide for setting out the practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority, the constitution of a Central Information Commission and State Information Commissions and for matters connected therewith or incidental thereto. WHEREAS the Constitution of India has established democratic Republic; AND WHEREAS democracy requires an informed citizenry and transparency of information which are vital to its functioning and also to contain corruption and to hold Governments and their instrumentalities accountable to the governed; AND WHEREAS revelation of information in actual practice is likely to conflict with other public interests including efficient operations of the Governments, optimum use of limited fiscal resources and the preservation of confidentiality of sensitive information; AND WHEREAS it is necessary to harmonise these conflicting interests while preserving the paramountcy of the democratic ideal; Now, THEREFORE, it is expendient to provide for furnishing certain information to citizens who desire to have it. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Right to Information** Act, 2005. (2) It extends to the whole of India [1]***. (3) The provisions of sub-section (1) of section 4, sub-sections (1) and (2) of section 5, sections 12, 13, 15,16, 24, 27 and 28 shall come into force at once, and the remaining provisions of this Act shall come into force on the one hundred and twentieth day of its enactment. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appropriate Government” means in relation to a public authority which is established, constituted, owned, controlled or substantially financed by funds provided directly or indirectly— (i) by the Central Government or the Union territory administration, the Central Government; (ii) by the State Government, the State Government; (b) “Central Information Commission” means the Central Information Commission constituted under sub-section (1) of section 12; (c) “Central Public Information Officer” means the Central Public Information Officer designated under sub-section (1) and includes a Central Assistant Public Information Officer designated as such under sub-section (2) of section 5; (d) “Chief Information Commissioner” and “Information Commissioner” mean the Chief Information Commissioner and Information Commissioner appointed under sub-section (3) of section 12; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 3 ----- (e) “competent authority” means— (i) the Speaker in the case of the House of the People or the Legislative Assembly of a State or a Union territory having such Assembly and the Chairman in the case of the Council of States or Legislative Council of a State; (ii) the Chief Justice of India in the case of the Supreme Court; (iii) the Chief Justice of the High Court in the case of a High Court; (iv) the President or the Governor, as the case may be, in the case of other authorities established or constituted by or under the Constitution; (v) the administrator appointed under article 239 of the Constitution; (f) “information” means any material in any form, including records, documents, memos, e-mails, opinions, advices, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force; (g) “prescribed” means prescribed by rules made under this Act by the appropriate Government or the competent authority, as the case may be; (h) “public authority” means any authority or body or institution of self- government established or constituted— (a) by or under the Constitution; (b) by any other law made by Parliament; (c) by any other law made by State Legislature; (d) by notification issued or order made by the appropriate Government, and includes any— (i) body owned, controlled or substantially financed; (ii) non-Government organisation substantially financed, directly or indirectly by funds provided by the appropriate Government; (i) “record” includes— (a) any document, manuscript and file; (b) any microfilm, microfiche and facsimile copy of a document; (c) any reproduction of image or images embodied in such microfilm (whether enlarged or not); and (d) any other material produced by a computer or any other device; (j) “right to information” means the right to information accessible under this Act which is held by or under the control of any public authority and includes the right to— (i) inspection of work, documents, records; (ii) taking notes, extracts or certified copies of documents or records; (iii) taking certified samples of material; (iv) obtaining information in the form of diskettes, floppies, tapes, video cassettes or in any other electronic mode or through printouts where such information is stored in a computer or in any other device; (k) “State Information Commission” means the State Information Commission constituted under sub-section (1) of section 15; 4 ----- (l) “State Chief Information Commissioner” and “State Information Commissioner” mean the State Chief Information Commissioner and the State Information Commissioner appointed under subsection (3) of section 15; (m) “State Public Information Officer” means the State Public Information Officer designated under sub-section (1) and includes a State Assistant Public Information Officer designated as such under sub-section (2) of section 5; (n) “third party” means a person other than the citizen making a request for information and includes a public authority. CHAPTER II RIGHT TO INFORMATION AND OBLIGATIONS OF PUBLIC AUTHORITIES **3. Right to information.—Subject to the provisions of this Act, all citizens shall have the right to** information. **4. Obligations of public authorities.—(1) Every public authority shall—** (a) maintain all its records duly catalogued and indexed in a manner and the form which facilitates the right to information under this Act and ensure that all records that are appropriate to be computerised are, within a reasonable time and subject to availability of resources, computerised and connected through a network all over the country on different systems so that access to such records is facilitated; (b) publish within one hundred and twenty days from the enactment of this Act,— (i) the particulars of its organisation, functions and duties; (ii) the powers and duties of its officers and employees; (iii) the procedure followed in the decision making process, including channels of supervision and accountability; (iv) the norms set by it for the discharge of its functions; (v) the rules, regulations, instructions, manuals and records, held by it or under its control or used by its employees for discharging its functions; (vi) a statement of the categories of documents that are held by it or under its control; (vii) the particulars of any arrangement that exists for consultation with, or representation by, the members of the public in relation to the formulation of its policy or implementation thereof; (viii) a statement of the boards, councils, committees and other bodies consisting of two or more persons constituted as its part or for the purpose of its advice, and as to whether meetings of those boards, councils, committees and other bodies are open to the public, or the minutes of such meetings are accessible for public; (ix) a directory of its officers and employees; (x) the monthly remuneration received by each of its officers and employees, including the system of compensation as provided in its regulations; (xi) the budget allocated to each of its agency, indicating the particulars of all plans, proposed expenditures and reports on disbursements made; (xii) the manner of execution of subsidy programmes, including the amounts allocated and the details of beneficiaries of such programmes; (xiii) particulars of recipients of concessions, permits or authorisations granted by it; (xiv) details in respect of the information, available to or held by it, reduced in an electronic form; 5 ----- (xv) the particulars of facilities available to citizens for obtaining information, including the working hours of a library or reading room, if maintained for public use; (xvi) the names, designations and other particulars of the Public Information Officers; (xvii) such other information as may be prescribed; and thereafter update these publications every year; (c) publish all relevant facts while formulating important policies or announcing the decisions which affect public; (d) provide reasons for its administrative or quasi-judicial decisions to affected persons. (2) It shall be a constant endeavour of every public authority to take steps in accordance with the requirements of clause (b) of sub-section (1) to provide as much information _suomotu to the public at_ regular intervals through various means of communications, including internet, so that the public have minimum resort to the use of this Act to obtain information. (3) For the purposes of sub-section (1), every information shall be disseminated widely and in such form and manner which is easily accessible to the public. (4) All materials shall be disseminated taking into consideration the cost effectiveness, local language and the most effective method of communication in that local area and the information should be easily accessible, to the extent possible in electronic format with the Central Public Information Officer or State Public Information Officer, as the case may be, available free or at such cost of the medium or the print cost price as may be prescribed. _Explanation.—For the purposes of sub-sections (3) and (4), “disseminated” means making known or_ communicated the information to the public through notice boards, newspapers, public announcements, media broadcasts, the internet or any other means, including inspection of offices of any public authority. **5. Designation of Public Information Officers.—(1) Every public authority shall, within one** hundred days of the enactment of this Act, designate as many officers as the Central Public Information Officers or State Public Information Officers, as the case may be, in all administrative units or offices under it as may be necessary to provide information to persons requesting for the information under this Act. (2) Without prejudice to the provisions of sub-section (1), every public authority shall designate an officer, within one hundred days of the enactment of this Act, at each sub-divisional level or other subdistrict level as a Central Assistant Public Information Officer or a State Assistant Public Information Officer, as the case may be, to receive the applications for information or appeals under this Act for forwarding the same forthwith to the Central Public Information Officer or the State Public Information Officer or senior officer specified under sub-section (1) of section 19 or the Central Information Commission or the State Information Commission, as the case may be: Provided that where an application for information or appeal is given to a Central Assistant Public Information Officer or a State Assistant Public Information Officer, as the case may be, a period of five days shall be added in computing the period for response specified under sub-section (1) of section 7. (3) Every Central Public Information Officer or State Public Information Officer, as the case may be, shall deal with requests from persons seeking information and render reasonable assistance to the persons seeking such information. (4) The Central Public Information Officer or State Public Information Officer, as the case may be, may seek the assistance of any other officer as he or she considers it necessary for the proper discharge of his or her duties. (5) Any officer, whose assistance has been sought under sub-section (4), shall render all assistance to the Central Public Information Officer or State Public Information Officer, as the case may be, seeking his or her assistance and for the purposes of any contravention of the provisions of this Act, such other officer shall be treated as a Central Public Information Officer or State Public Information Officer, as the case may be. 6 ----- **6. Request for obtaining information.—(1) A person, who desires to obtain any information under** this Act, shall make a request in writing or through electronic means in English or Hindi or in the official language of the area in which the application is being made, accompanying such fee as may be prescribed, to— (a) the Central Public Information Officer or State Public Information Officer, as the case may be, of the concerned public authority; (b) the Central Assistant Public Information Officer or State Assistant Public Information Officer, as the case may be, specifying the particulars of the information sought by him or her: Provided that where such request cannot be made in writing, the Central Public Information Officer or State Public Information Officer, as the case may be, shall render all reasonable assistance to the person making the request orally to reduce the same in writing. (2) An applicant making request for information shall not be required to give any reason for requesting the information or any other personal details except those that may be necessary for contacting him. (3) Where an application is made to a public authority requesting for an information,— (i) which is held by another public authority; or (ii) the subject matter of which is more closely connected with the functions of another public authority, the public authority, to which such application is made, shall transfer the application or such part of it as may be appropriate to that other public authority and inform the applicant immediately about such transfer: Provided that the transfer of an application pursuant to this sub-section shall be made as soon as practicable but in no case later than five days from the date of receipt of the application. **7. Disposal of request.—(1) Subject to the proviso to sub-section (2) of section 5 or the proviso to** sub-section (3) of section 6, the Central Public Information Officer or State Public Information Officer, as the case may be, on receipt of a request under section 6 shall, as expeditiously as possible, and in any case within thirty days of the receipt of the request, either provide the information on payment of such fee as may be prescribed or reject the request for any of the reasons specified in sections 8 and 9: Provided that where the information sought for concerns the life or liberty of a person, the same shall be provided within forty-eight hours of the receipt of the request. (2) If the Central Public Information Officer or State Public Information Officer, as the case may be, fails to give decision on the request for information within the period specified under sub-section (1), the Central Public Information Officer or State Public Information Officer, as the case may be, shall be deemed to have refused the request. (3) Where a decision is taken to provide the information on payment of any further fee representing the cost of providing the information, the Central Public Information Officer or State Public Information Officer, as the case may be, shall send an intimation to the person making the request, giving— (a) the details of further fees representing the cost of providing the information as determined by him, together with the calculations made to arrive at the amount in accordance with fee prescribed under sub-section (1), requesting him to deposit that fees, and the period intervening between the despatch of the said intimation and payment of fees shall be excluded for the purpose of calculating the period of thirty days referred to in that sub-section; (b) information concerning his or her right with respect to review the decision as to the amount of fees charged or the form of access provided, including the particulars of the appellate authority, time limit, process and any other forms. 7 ----- (4) Where access to the record or a part thereof is required to be provided under this Act and the person to whom access is to be provided is sensorily disabled, the Central Public Information Officer or State Public Information Officer, as the case may be, shall provide assistance to enable access to the information, including providing such assistance as may be appropriate for the inspection. (5) Where access to information is to be provided in the printed or in any electronic format, the applicant shall, subject to the provisions of sub-section (6), pay such fee as may be prescribed: Provided that the fee prescribed under sub-section (1) of section 6 and sub-sections (1) and (5) of section 7 shall be reasonable and no such fee shall be charged from the persons who are of below poverty line as may be determined by the appropriate Government. (6) Notwithstanding anything contained in sub-section (5), the person making request for the information shall be provided the information free of charge where a public authority fails to comply with the time limits specified in sub-section (1). (7) Before taking any decision under sub-section (1), the Central Public Information Officer or State Public Information Officer, as the case may be, shall take into consideration the representation made by a third party under section 11. (8) Where a request has been rejected under sub-section (1), the Central Public Information Officer or State Public Information Officer, as the case may be, shall communicate to the person making the request,— (i) the reasons for such rejection; (ii) the period within which an appeal against such rejection may be preferred; and (iii) the particulars of the appellate authority. (9) An information shall ordinarily be provided in the form in which it is sought unless it would disproportionately divert the resources of the public authority or would be detrimental to the safety or preservation of the record in question. **8. Exemption from disclosure of information.—(1) Notwithstanding anything contained in this Act,** there shall be no obligation to give any citizen,— (a) information, disclosure of which would prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the State, relation with foreign State or lead to incitement of an offence; (b) information which has been expressly forbidden to be published by any court of law or tribunal or the disclosure of which may constitute contempt of court; (c) information, the disclosure of which would cause a breach of privilege of Parliament or the State Legislature; (d) information including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information; (e) information available to a person in his fiduciary relationship, unless the competent authority is satisfied that the larger public interest warrants the disclosure of such information; (f) information received in confidence from foreign Government; (g) information, the disclosure of which would endanger the life or physical safety of any person or identify the source of information or assistance given in confidence for law enforcement or security purposes; (h) information which would impede the process of investigation or apprehension or prosecution of offenders; (i) cabinet papers including records of deliberations of the Council of Ministers, Secretaries and other officers: 8 ----- Provided that the decisions of Council of Ministers, the reasons thereof, and the material on the basis of which the decisions were taken shall be made public after the decision has been taken, and the matter is complete, or over: Provided further that those matters which come under the exemptions specified in this section shall not be disclosed; (j) information which relates to personal information the disclosure of which has no relationship to any public activity or interest, or which would cause unwarranted invasion of the privacy of the individual unless the Central Public Information Officer or the State Public Information Officer or the appellate authority, as the case may be, is satisfied that the larger public interest justifies the disclosure of such information: Provided that the information which cannot be denied to the Parliament or a State Legislature shall not be denied to any person. (2) Notwithstanding anything in the Official Secrets Act, 1923 (19 of 1923) nor any of the exemptions permissible in accordance with sub-section (1), a public authority may allow access to information, if public interest in disclosure outweighs the harm to the protected interests. (3) Subject to the provisions of clauses (a), (c) and (i) of sub-section (1), any information relating to any occurrence, event or matter which has taken place, occurred or happened twenty years before the date on which any request is made under section 6 shall be provided to any person making a request under that section: Provided that where any question arises as to the date from which the said period of twenty years has to be computed, the decision of the Central Government shall be final, subject to the usual appeals provided for in this Act. **9. Grounds for rejection to access in certain cases.—Without prejudice to the provisions of** section 8, a Central Public Information Officer or a State Public Information Officer, as the case may be, may reject a request for information where such a request for providing access would involve an infringement of copyright subsisting in a person other than the State. **10. Severability.—(1) Where a request for access to information is rejected on the ground that it is in** relation to information which is exempt from disclosure, then, notwithstanding anything contained in this Act, access may be provided to that part of the record which does not contain any information which is exempt from disclosure under this Act and which can reasonably be severed from any part that contains exempt information. (2) Where access is granted to a part of the record under sub-section (1), the Central Public Information Officer or State Public Information Officer, as the case may be, shall give a notice to the applicant, informing— (a) that only part of the record requested, after severance of the record containing information which is exempt from disclosure, is being provided; (b) the reasons for the decision, including any findings on any material question of fact, referring to the material on which those findings were based; (c) the name and designation of the person giving the decision; (d) the details of the fees calculated by him or her and the amount of fee which the applicant is required to deposit; and (e) his or her rights with respect to review of the decision regarding non-disclosure of part of the information, the amount of fee charged or the form of access provided, including the particulars of the senior officer specified under sub-section (1) of section 19 or the Central Information Commission or the State Information Commission, as the case may be, time limit, process and any other form of access. **11. Third party information.—(1) Where a Central Public Information Officer or a State Public** Information Officer, as the case may be, intends to disclose any information or record, or part thereof on a 9 ----- request made under this Act, which relates to or has been supplied by a third party and has been treated as confidential by that third party, the Central Public Information Officer or State Public Information Officer, as the case may be, shall, within five days from the receipt of the request, give a written notice to such third party of the request and of the fact that the Central Public Information Officer or State Public Information Officer, as the case may be, intends to disclose the information or record, or part thereof, and invite the third party to make a submission in writing or orally, regarding whether the information should be disclosed, and such submission of the third party shall be kept in view while taking a decision about disclosure of information: Provided that except in the case of trade or commercial secrets protected by law, disclosure may be allowed if the public interest in disclosure outweighs in importance any possible harm or injury to the interests of such third party. (2) Where a notice is served by the Central Public Information Officer or State Public Information Officer, as the case may be, under sub-section (1) to a third party in respect of any information or record or part thereof, the third party shall, within ten days from the date of receipt of such notice, be given the opportunity to make representation against the proposed disclosure. (3) Notwithstanding anything contained in section 7, the Central Public Information Officer or State Public Information Officer, as the case may be, shall, within forty days after receipt of the request under section 6, if the third party has been given an opportunity to make representation under sub-section (2), make a decision as to whether or not to disclose the information or record or part thereof and give in writing the notice of his decision to the third party. (4) A notice given under sub-section (3) shall include a statement that the third party to whom the notice is given is entitled to prefer an appeal under section 19 against the decision. CHAPTER III THE CENTRAL INFORMATION COMMISSION **12. Constitution of Central Information Commission.—(1) The Central Government shall, by** notification in the Official Gazette, constitute a body to be known as the Central Information Commission to exercise the powers conferred on, and to perform the functions assigned to, it under this Act. (2) The Central Information Commission shall consist of— (a) the Chief Information Commissioner; and (b) such number of Central Information Commissioners, not exceeding ten, as may be deemed necessary. (3) The Chief Information Commissioner and Information Commissioners shall be appointed by the President on the recommendation of a committee consisting of— (i) the Prime Minister, who shall be the Chairperson of the committee; (ii) the Leader of Opposition in the Lok Sabha; and (iii) a Union Cabinet Minister to be nominated by the Prime Minister. _Explanation.—For the purposes of removal of doubts, it is hereby declared that where the Leader of_ Opposition in the House of the People has not been recognised as such, the Leader of the single largest group in opposition of the Government in the House of the People shall be deemed to be the Leader of Opposition. (4) The general superintendence, direction and management of the affairs of the Central Information Commission shall vest in the Chief Information Commissioner who shall be assisted by the Information Commissioners and may exercise all such powers and do all such acts and things which may be exercised or done by the Central Information Commission autonomously without being subjected to directions by any other authority under this Act. 10 ----- (5) The Chief Information Commissioner and Information Commissioners shall be persons of eminence in public life with wide knowledge and experience in law, science and technology, social service, management, journalism, mass media or administration and governance. (6) The Chief Information Commissioner or an Information Commissioner shall not be a Member of Parliament or Member of the Legislature of any State or Union territory, as the case may be, or hold any other office of profit or connected with any political party or carrying on any business or pursuing any profession. (7) The headquarters of the Central Information Commission shall be at Delhi and the Central Information Commission may, with the previous approval of the Central Government, establish offices at other places in India. **13. Term of office and conditions of service.—(1) The Chief Information Commissioner shall hold** office [1][for such term as may be prescribed by the Central Government] and shall not be eligible for reappointment: Provided that no Chief Information Commissioner shall hold office as such after he has attained the age of sixty-five years. (2) Every Information Commissioner shall hold office [1][for such term as may be prescribed by the Central Government] or till he attains the age of sixty-five years, whichever is earlier, and shall not be eligible for reappointment as such Information Commissioner: Provided that every Information Commissioner shall, on vacating his office under this sub-section be eligible for appointment as the Chief Information Commissioner in the manner specified in sub-section (3) of section 12: Provided further that where the Information Commissioner is appointed as the Chief Information Commissioner, his term of office shall not be more than five years in aggregate as the Information Commissioner and the Chief Information Commissioner. (3) The Chief Information Commissioner or an Information Commissioner shall before he enters upon his office make and subscribe before the President or some other person appointed by him in that behalf, an oath or affirmation according to the form set out for the purpose in the First Schedule. (4) The Chief Information Commissioner or an Information Commissioner may, at any time, by writing under his hand addressed to the President, resign from his office: Provided that the Chief Information Commissioner or an Information Commissioner may be removed in the manner specified under section 14. 2[(5) The salaries and allowances payable to and other terms and conditions of service of the Chief Information Commissioner and the Information Commissioners shall be such as may be prescribed by the Central Government: Provided that the salaries, allowances and other conditions of service of the Chief Information Commissioner or the Information Commissioners shall not be varied to their disadvantage after their appointment: Provided further that the Chief Information Commissioner and the Information Commissioners appointed before the commencement of the Right to Information (Amendment) Act, 2019 (24 of 2019) shall continue to be governed by the provisions of this Act and the rules made thereunder as if the Right to Information (Amendment) Act, 2019 (24 of 2019) had not come into force.] 1. Subs. by Act 24 of 2019, s. 2, for “for a term of five years from the date on which he enters upon his office” (w.e.f. 24-10 2019). 2. Subs. by, s. 2, ibid., for sub-section (5) (w.e.f. 24-10-2019). 11 ----- (6) The Central Government shall provide the Chief Information Commissioner and the Information Commissioners with such officers and employees as may be necessary for the efficient performance of their functions under this Act, and the salaries and allowances payable to, and the terms and conditions of service of the officers and other employees appointed for the purpose of this Act shall be such as may be prescribed. **14. Removal of Chief Information Commissioner or Information Commissioner.—(1) Subject to** the provisions of sub-section (3), the Chief Information Commissioner or any Information Commissioner shall be removed from his office only by order of the President on the ground of proved misbehaviour or incapacity after the Supreme Court, on a reference made to it by the President, has, on inquiry, reported that the Chief Information Commissioner or any Information Commissioner, as the case may be, ought on such ground be removed. (2) The President may suspend from office, and if deem necessary prohibit also from attending the office during inquiry, the Chief Information Commissioner or Information Commissioner in respect of whom a reference has been made to the Supreme Court under sub-section (1) until the President has passed orders on receipt of the report of the Supreme Court on such reference. (3) Notwithstanding anything contained in sub-section (1), the President may by order remove from office the Chief Information Commissioner or any Information Commissioner if the Chief Information Commissioner or a Information Commissioner, as the case may be,— (a) is adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the President, involves moral turpitude; or (c) engages during his term of office in any paid employment outside the duties of his office; or (d) is, in the opinion of the President, unfit to continue in office by reason of infirmity of mind or body; or (e) has acquired such financial or other interest as is likely to affect prejudicially his functions as the Chief Information Commissioner or a Information Commissioner. (4) If the Chief Information Commissioner or a Information Commissioner in any way, concerned or interested in any contract or agreement made by or on behalf of the Government of India or participates in any way in the profit thereof or in any benefit or emolument arising therefrom otherwise than as a member and in common with the other members of an incorporated company, he shall, for the purposes of sub-section (1), be deemed to be guilty of misbehaviour. CHAPTER IV THE STATE INFORMATION COMMISSION **15. Constitution of State Information Commission.—(1) Every State Government shall, by** notification in the Official Gazette, constitute a body to be known as the ......... (name of the State) Information Commission to exercise the powers conferred on, and to perform the functions assigned to, it under this Act. (2) The State Information Commission shall consist of— (a) the State Chief Information Commissioner, and (b) such number of State Information Commissioners, not exceeding ten, as may be deemed necessary. (3) The State Chief Information Commissioner and the State Information Commissioners shall be appointed by the Governor on the recommendation of a committee consisting of— (i) the Chief Minister, who shall be the Chairperson of the committee; 12 ----- (ii) the Leader of Opposition in the Legislative Assembly; and (iii) a Cabinet Minister to be nominated by the Chief Minister. _Explanation.—For the purposes of removal of doubts, it is hereby declared that where the Leader of_ Opposition in the Legislative Assembly has not been recognised as such, the Leader of the single largest group in opposition of the Government in the Legislative Assembly shall be deemed to be the Leader of Opposition. (4) The general superintendence, direction and management of the affairs of the State Information Commission shall vest in the State Chief Information Commissioner who shall be assisted by the State Information Commissioners and may exercise all such powers and do all such acts and things which may be exercised or done by the State Information Commission autonomously without being subjected to directions by any other authority under this Act. (5) The State Chief Information Commissioner and the State Information Commissioners shall be persons of eminence in public life with wide knowledge and experience in law, science and technology, social service, management, journalism, mass media or administration and governance. (6) The State Chief Information Commissioner or a State Information Commissioner shall not be a Member of Parliament or Member of the Legislature of any State or Union territory, as the case may be, or hold any other office of profit or connected with any political party or carrying on any business or pursuing any profession. (7) The headquarters of the State Information Commission shall be at such place in the State as the State Government may, by notification in the Official Gazette, specify and the State Information Commission may, with the previous approval of the State Government, establish offices at other places in the State. **16. Term of office and conditions of service.—(1) The State Chief Information Commissioner shall** hold office [1][for such term as may be prescribed by the Central Government] and shall not be eligible for reappointment: Provided that no State Chief Information Commissioner shall hold office as such after he has attained the age of sixty-five years. (2) Every State Information Commissioner shall hold office [1][for such term as may be prescribed by the Central Government] or till he attains the age of sixty-five years, whichever is earlier, and shall not be eligible for reappointment as such State Information Commissioner: Provided that every State Information Commissioner shall, on vacating his office under this sub section, be eligible for appointment as the State Chief Information Commissioner in the manner specified in sub-section (3) of section 15: Provided further that where the State Information Commissioner is appointed as the State Chief Information Commissioner, his term of office shall not be more than five years in aggregate as the State Information Commissioner and the State Chief Information Commissioner. (3) The State Chief Information Commissioner or a State Information Commissioner, shall before he enters upon his office make and subscribe before the Governor or some other person appointed by him in that behalf, an oath or affirmation according to the form set out for the purpose in the First Schedule. (4) The State Chief Information Commissioner or a State Information Commissioner may, at any time, by writing under his hand addressed to the Governor, resign from his office: Provided that the State Chief Information Commissioner or a State Information Commissioner may be removed in the manner specified under section 17. 1. Subs. by Act 24 of 2019, s. 3, for, “for a term of five years from the date on which he enters upon his office”(w.e.f. 24-102019). 13 ----- 1[(5) The salaries and allowances payable to and other terms and conditions of service of the State Chief Information Commissioner and the State Information Commissioners shall be such as may be prescribed by the Central Government: Provided that the salaries, allowances and other conditions of service of the State Chief Information Commissioner and the State Information Commissioners shall not be varied to their disadvantage after their appointment: Provided further that the State Chief Information Commissioner and the State Information Commissioners appointed before the commencement of the Right to Information (Amendment) Act, 2019 shall continue to be governed by the provisions of this Act and the rules made there under as if the Right to Information (Amendment) Act, 2019 had not come into force.] (6) The State Government shall provide the State Chief Information Commissioner and the State Information Commissioners with such officers and employees as may be necessary for the efficient performance of their functions under this Act, and the salaries and allowances payable to and the terms and conditions of service of the officers and other employees appointed for the purpose of this Act shall be such as may be prescribed. **17. Removal of State Chief Information Commissioner or State Information Commissioner.—** (1) Subject to the provisions of sub-section (3), the State Chief Information Commissioner or a State Information Commissioner shall be removed from his office only by order of the Governor on the ground of proved misbehaviour or incapacity after the Supreme Court, on a reference made to it by the Governor, has on inquiry, reported that the State Chief Information Commissioner or a State Information Commissioner, as the case may be, ought on such ground be removed. (2) The Governor may suspend from office, and if deem necessary prohibit also from attending the office during inquiry, the State Chief Information Commissioner or a State Information Commissioner in respect of whom a reference has been made to the Supreme Court under sub-section (1) until the Governor has passed orders on receipt of the report of the Supreme Court on such reference. (3) Notwithstanding anything contained in sub-section (1), the Governor may by order remove from office the State Chief Information Commissioner or a State Information Commissioner if a State Chief Information Commissioner or a State Information Commissioner, as the case may be,— (a) is adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Governor, involves moral turpitude; or _(c) engages during his term of office in any paid employment outside the duties of his office; or_ (d) is, in the opinion of the Governor, unfit to continue in office by reason of infirmity of mind or body; or (e) has acquired such financial or other interest as is likely to affect prejudicially his functions as the State Chief Information Commissioner or a State Information Commissioner. (4) If the State Chief Information Commissioner or a State Information Commissioner in any way, concerned or interested in any contract or agreement made by or on behalf of the Government of the State or participates in any way in the profit thereof or in any benefit or emoluments arising therefrom otherwise than as a member and in common with the other members of an incorporated company, he shall, for the purposes of sub-section (1), be deemed to be guilty of misbehaviour. CHAPTER V POWERS AND FUNCTIONS OF THE INFORMATION COMMISSIONS, APPEAL AND PENALTIES **18. Powers and functions of Information Commissions.—(1) Subject to the provisions of this Act,** it shall be the duty of the Central Information Commission or State Information Commission, as the case may be, to receive and inquire into a complaint from any person,— 1. Subs. by Act 24 of 2019, s. 3, for sub-section (5), (w.e.f. 24-10-2019). 14 ----- (a) who has been unable to submit a request to a Central Public Information Officer or State Public Information Officer, as the case may be, either by reason that no such officer has been appointed under this Act, or because the Central Assistant Public Information Officer or State Assistant Public Information Officer, as the case may be, has refused to accept his or her application for information or appeal under this Act for forwarding the same to the Central Public Information Officer or State Public Information Officer or senior officer specified in sub-section (1) of section 19 or the Central Information Commission or the State Information Commission, as the case may be; (b) who has been refused access to any information requested under this Act; (c) who has not been given a response to a request for information or access to information within the time limit specified under this Act; (d) who has been required to pay an amount of fee which he or she considers unreasonable; (e) who believes that he or she has been given incomplete, misleading or false information under this Act; and (f) in respect of any other matter relating to requesting or obtaining access to records under this Act. (2) Where the Central Information Commission or State Information Commission, as the case may be, is satisfied that there are reasonable grounds to inquire into the matter, it may initiate an inquiry in respect thereof. (3) The Central Information Commission or State Information Commission, as the case may be, shall, while inquiring into any matter under this section, have the same powers as are vested in a civil court while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely:— (a) summoning and enforcing the attendance of persons and compel them to give oral or written evidence on oath and to produce the documents or things; (b) requiring the discovery and inspection of documents; (c) receiving evidence on affidavit; (d) requisitioning any public record or copies thereof from any court or office; (e) issuing summons for examination of witnesses or documents; and (f) any other matter which may be prescribed. (4) Notwithstanding anything inconsistent contained in any other Act of Parliament or State Legislature, as the case may be, the Central Information Commission or the State Information Commission, as the case may be, may, during the inquiry of any complaint under this Act, examine any record to which this Act applies which is under the control of the public authority, and no such record may be withheld from it on any grounds. **19. Appeal.—(1) Any person who, does not receive a decision within the time specified in** sub-section (1) or clause (a) of sub-section (3) of section 7, or is aggrieved by a decision of the Central Public Information Officer or State Public Information Officer, as the case may be, may within thirty days from the expiry of such period or from the receipt of such a decision prefer an appeal to such officer who is senior in rank to the Central Public Information Officer or State Public Information Officer as the case may be, in each public authority: Provided that such officer may admit the appeal after the expiry of the period of thirty days if he or she is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time. (2) Where an appeal is preferred against an order made by a Central Public Information Officer or a State Public Information Officer, as the case may be, under section 11 to disclose third party information, the appeal by the concerned third party shall be made within thirty days from the date of the order. 15 ----- (3) A second appeal against the decision under sub-section (1) shall lie within ninety days from the date on which the decision should have been made or was actually received, with the Central Information Commission or the State Information Commission: Provided that the Central Information Commission or the State Information Commission, as the case may be, may admit the appeal after the expiry of the period of ninety days if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time. (4) If the decision of the Central Public Information Officer or State Public Information Officer, as the case may be, against which an appeal is preferred relates to information of a third party, the Central Information Commission or State Information Commission, as the case may be, shall give a reasonable opportunity of being heard to that third party. (5) In any appeal proceedings, the onus to prove that a denial of a request was justified shall be on the Central Public Information Officer or State Public Information Officer, as the case may be, who denied the request. (6) An appeal under sub-section (1) or sub-section (2) shall be disposed of within thirty days of the receipt of the appeal or within such extended period not exceeding a total of forty-five days from the date of filing thereof, as the case may be, for reasons to be recorded in writing. (7) The decision of the Central Information Commission or State Information Commission, as the case may be, shall be binding. (8) In its decision, the Central Information Commission or State Information Commission, as the case may be, has the power to— (a) require the public authority to take any such steps as may be necessary to secure compliance with the provisions of this Act, including— (i) by providing access to information, if so requested, in a particular form; (ii) by appointing a Central Public Information Officer or State Public Information Officer, as the case may be; (iii) by publishing certain information or categories of information; (iv) by making necessary changes to its practices in relation to the maintenance, management and destruction of records; (v) by enhancing the provision of training on the right to information for its officials; (vi) by providing it with an annual report in compliance with clause (b) of sub-section (1) of section 4; (b) require the public authority to compensate the complainant for any loss or other detriment suffered; (c) impose any of the penalties provided under this Act; (d) reject the application. (9) The Central Information Commission or State Information Commission, as the case may be, shall give notice of its decision, including any right of appeal, to the complainant and the public authority. (10) The Central Information Commission or State Information Commission, as the case may be, shall decide the appeal in accordance with such procedure as may be prescribed. **20. Penalties.—(1)Where the Central Information Commission or the State Information Commission,** as the case may be, at the time of deciding any complaint or appeal is of the opinion that the Central Public Information Officer or the State Public Information Officer, as the case may be, has, without any reasonable cause, refused to receive an application for information or has not furnished information within the time specified under sub-section (1) of section 7 or malafidely denied the request for information or knowingly given incorrect, incomplete or misleading information or destroyed information which was the subject of the request or obstructed in any manner in furnishing the information, it shall 16 ----- impose a penalty of two hundred and fifty rupees each day till application is received or information is furnished, so however, the total amount of such penalty shall not exceed twenty-five thousand rupees: Provided that the Central Public Information Officer or the State Public Information Officer, as the case may be, shall be given a reasonable opportunity of being heard before any penalty is imposed on him: Provided further that the burden of proving that he acted reasonably and diligently shall be on the Central Public Information Officer or the State Public Information Officer, as the case may be. (2) Where the Central Information Commission or the State Information Commission, as the case may be, at the time of deciding any complaint or appeal is of the opinion that the Central Public Information Officer or the State Public Information Officer, as the case may be, has, without any reasonable cause and persistently, failed to receive an application for information or has not furnished information within the time specified under sub-section (1) of section 7 or malafidely denied the request for information or knowingly given incorrect, incomplete or misleading information or destroyed information which was the subject of the request or obstructed in any manner in furnishing the information, it shall recommend for disciplinary action against the Central Public Information Officer or the State Public Information Officer, as the case may be, under the service rules applicable to him. CHAPTER VI MISCELLANEOUS **21. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against any person for anything which is in good faith done or intended to be done under this Act or any rule made thereunder. **22. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in the Official Secrets Act, 1923 (19 of 1923), and any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **23. Bar of jurisdiction of courts.—No court shall entertain any suit, application or other proceeding** in respect of any order made under this Act and no such order shall be called in question otherwise than by way of an appeal under this Act. **24. Act not to apply to certain organisations.—(1) Nothing contained in this Act shall apply to the** intelligence and security organisations specified in the Second Schedule, being organisations established by the Central Government or any information furnished by such organisations to that Government: Provided that the information pertaining to the allegations of corruption and human rights violations shall not be excluded under this sub-section: Provided further that in the case of information sought for is in respect of allegations of violation of human rights, the information shall only be provided after the approval of the Central Information Commission, and notwithstanding anything contained in section 7, such information shall be provided within forty-five days from the date of the receipt of request. (2) The Central Government may, by notification in the Official Gazette, amend the Schedule by including therein any other intelligence or security organisation established by that Government or omitting therefrom any organisation already specified therein and on the publication of such notification, such organisation shall be deemed to be included in or, as the case may be, omitted from the Schedule. (3) Every notification issued under sub-section (2) shall be laid before each House of Parliament. (4) Nothing contained in this Act shall apply to such intelligence and security organisation being organisations established by the State Government, as that Government may, from time to time, by notification in the Official Gazette, specify: Provided that the information pertaining to the allegations of corruption and human rights violations shall not be excluded under this sub-section: 17 ----- Provided further that in the case of information sought for is in respect of allegations of violation of human rights, the information shall only be provided after the approval of the State Information Commission and, notwithstanding anything contained in section 7, such information shall be provided within forty-five days from the date of the receipt of request. (5) Every notification issued under sub-section (4) shall be laid before the State Legislature. **25. Monitoring and reporting.—(1) The Central Information Commission or State Information** Commission, as the case may be, shall, as soon as practicable after the end of each year, prepare a report on the implementation of the provisions of this Act during that year and forward a copy thereof to the appropriate Government. (2) Each Ministry or Department shall, in relation to the public authorities within their jurisdiction, collect and provide such information to the Central Information Commission or State Information Commission, as the case may be, as is required to prepare the report under this section and comply with the requirements concerning the furnishing of that information and keeping of records for the purposes of this section. (3) Each report shall state in respect of the year to which the report relates,— (a) the number of requests made to each public authority; (b) the number of decisions where applicants were not entitled to access to the documents pursuant to the requests, the provisions of this Act under which these decisions were made and the number of times such provisions were invoked; (c) the number of appeals referred to the Central Information Commission or State Information Commission, as the case may be, for review, the nature of the appeals and the outcome of the appeals; (d) particulars of any disciplinary action taken against any officer in respect of the administration of this Act; (e) the amount of charges collected by each public authority under this Act; (f) any facts which indicate an effort by the public authorities to administer and implement the spirit and intention of this Act; (g) recommendations for reform, including recommendations in respect of the particular public authorities, for the development, improvement, modernisation, reform or amendment to this Act or other legislation or common law or any other matter relevant for operationalising the right to access information. (4) The Central Government or the State Government, as the case may be, may, as soon as practicable after the end of each year, cause a copy of the report of the Central Information Commission or the State Information Commission, as the case may be, referred to in sub-section (1) to be laid before each House of Parliament or, as the case may be, before each House of the State Legislature, where there are two Houses, and where there is one House of the State Legislature before that House. (5) If it appears to the Central Information Commission or State Information Commission, as the case may be, that the practice of a public authority in relation to the exercise of its functions under this Act does not conform with the provisions or spirit of this Act, it may give to the authority a recommendation specifying the steps which ought in its opinion to be taken for promoting such conformity. **26. Appropriate Government to prepare programmes.—(1) The appropriate Government may, to** the extent of availability of financial and other resources,— (a) develop and organise educational programmes to advance the understanding of the public, in particular of disadvantaged communities as to how to exercise the rights contemplated under this Act; (b) encourage public authorities to participate in the development and organisation of programmes referred to in clause (a) and to undertake such programmes themselves; (c) promote timely and effective dissemination of accurate information by public authorities about their activities; and 18 ----- (d) train Central Public Information Officers or State Public Information Officers, as the case may be, of public authorities and produce relevant training materials for use by the public authorities themselves. (2) The appropriate Government shall, within eighteen months from the commencement of this Act, compile in its official language a guide containing such information, in an easily comprehensible form and manner, as may reasonably be required by a person who wishes to exercise any right specified in this Act. (3) The appropriate Government shall, if necessary, update and publish the guidelines referred to in sub-section (2) at regular intervals which shall, in particular and without prejudice to the generality of sub-section (2), include— (a) the objects of this Act; (b) the postal and street address, the phone and fax number and, if available, electronic mail address of the Central Public Information Officer or State Public Information Officer, as the case may be, of every public authority appointed under sub-section (1) of section 5; (c) the manner and the form in which request for access to an information shall be made to a Central Public Information Officer or State Public Information Officer, as the case may be; (d) the assistance available from and the duties of the Central Public Information Officer or State Public Information Officer, as the case may be, of a public authority under this Act; (e) the assistance available from the Central Information Commission or State Information Commission, as the case may be; (f) all remedies in law available regarding an act or failure to act in respect of a right or duty conferred or imposed by this Act including the manner of filing an appeal to the Commission; (g) the provisions providing for the voluntary disclosure of categories of records in accordance with section 4; (h) the notices regarding fees to be paid in relation to requests for access to an information; and (i) any additional regulations or circulars made or issued in relation to obtaining access to an information in accordance with this Act. (4) The appropriate Government must, if necessary, update and publish the guidelines at regular intervals. **27. Power to make rules by appropriate Government.—(1) The appropriate Government may, by** notification in the Official Gazette, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the cost of the medium or print cost price of the materials to be disseminated under sub-section (4) of section 4; (b) the fee payable under sub-section (1) of section 6; (c) the fee payable under sub-sections (1) and (5) of section 7; 1[(ca) the term of office of the Chief Information Commissioner and Information Commissioners under sub-sections (1) and (2) of section 13 and the State Chief Information Commissioner and State Information Commissioners under sub-sections (1) and (2) of section 16; (cb) the salaries, allowances and other terms and conditions of service of the Chief Information Commissioner and the Information Commissioners under sub-section (5) of section 13 and the State Chief Information Commissioner and the State Information Commissioners under sub-section (5) of section 16;] 1. Ins. by Act 24 of 2019, s. 4 (w.e.f. 24-10-2019). 19 ----- (d) the salaries and allowances payable to and the terms and conditions of service of the officers and other employees under sub-section (6) of section 13 and sub-section (6) of section 16; (e) the procedure to be adopted by the Central Information Commission or State Information Commission, as the case may be, in deciding the appeals under sub-section (10) of section 19; and (f) any other matter which is required to be, or may be, prescribed. **28. Power to make rules by competent authority.—(1) The competent authority may, by** notification in the Official Gazette, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (i) the cost of the medium or print cost price of the materials to be disseminated under sub-section (4) of section 4; (ii) the fee payable under sub-section (1) of section 6; (iii) the fee payable under sub-section (1) of section 7; and (iv) any other matter which is required to be, or may be, prescribed. **29. Laying of rules.—(1) Every rule made by the Central Government under this Act shall be laid, as** soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. (2) Every rule made under this Act by a State Government shall be laid, as soon as may be after it is notified, before the State Legislature. **30. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removal of the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of the commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **31. Repeal.—The Freedom of Information Act, 2002 (5 of 2003) is hereby repealed.** 20 ----- THE FIRST SCHEDULE [See sections 13 (3) and 16(3)] FORM OF OATH OR AFFIRMATION TO BE MADE BY THE CHIEF INFORMATION COMMISSIONER/THE INFORMATION COMMISSIONER/THE STATE CHIEF INFORMATION COMMISSIONER/THE STATE INFORMATION COMMISSIONER “I, ....................., having been appointed Chief Information Commissioner/Information Commissioner/State Chief Information Commissioner/State Information Commissioner swear in the name of God that I will bear true faith and allegiance to the solemnly affirm Constitution of India as by law established, that I will uphold the sovereignty and integrity of India, that I will duly and faithfully and to the best of my ability, knowledge and judgment perform the duties of my office without fear or favour, affection or ill-will and that I will uphold the Constitution and the laws.”. 21 ----- THE SECOND SCHEDULE (See section 24) INTELLIGENCE AND SECURITY ORGANISATION ESTABLISHED BY THE CENTRAL GOVERNMENT 1. Intelligence Bureau. 1[2. Research and Analysis Wing including its technical wing namely, the Aviation Research Centre of the Cabinet Secretariat.] 3. Directorate of Revenue Intelligence. 4. Central Economic Intelligence Bureau. 5. Directorate of Enforcement. 6. Narcotics Control Bureau. 7. [2]***. 8. Special [3][Frontier] Force of the Cabinet Secretariat. 9. Border Security Force. 10. Central Reserve Police Force. 11. Indo-Tibetan Border Police. 12. Central Industrial Security Force. 13. National Security Guards. 14. Assam Rifles. 4[15. Sashtra Seema Bal.] 5[16. Directorate General of Income-tax (Investigation).] 5[17. National Technical Research Organisation.] 5[18. Financial Intelligence Unit, India.] 6[19. Special Protection Group. 20. Defence Research and Development Organisation. 21. Border Road Development Board. [7]* - - - *] 8[22. National Security Council Secretariat.] [9][23. Central Bureau of Investigation. # 24. National Investigation Agency. 25. National Intelligence Grid.] 10[26. Strategic Forces Command.] 1. Subs. by notification No. G.S.R. 319(E), dated 4-5-2021. 2. Serial Number 7 omitted by notification No. G.S.R. 319(E), dated 4-5-2021. 3. Subs. by notification No. G.S.R. 319(E), dated 4-5-2021. 4. Subs. by notification No. G.S.R. 347, dated 28-9-2005. 5. Subs. by notification No. G.S.R. 235(E) dated 27-3-2008. 6. Ins. by notification No. G.S.R. 347, dated 28-9-2005. 7. Omitted by G.S.R. 235(E) dated 27-3-2008. 8. Added by notification No. G.S.R. 726(E), dated 8-10-2008. 9. Added by notification No. G.S.R. 442(E), dated 9-6-2011. 10. Ins. by notification No. G.S.R. 673(E) dated 8-7-2016. 22 -----
23-Jun-2005
30
The Credit Information Companies (Regulation) Act, 2005.
https://www.indiacode.nic.in/bitstream/123456789/2057/2/A200530.pdf
central
# THE CREDIT INFORMATION COMPANIES (REGULATION) ACT, 2005 ___________ # ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGISTRATION OF CREDIT INFORMATION COMPANIES 3. Prohibition to commence or carry on business of credit information. 4. Application for registration. 5. Grant of certificate of registration. 6. Power of Reserve Bank to cancel certificate of registration. 7. Appeal against order of Reserve Bank. 8. Requirement as to minimum capital. CHAPTER III MANAGEMENT OF CREDIT INFORMATION COMPANIES 9. Management of credit information company. 10. Power of Reserve Bank to determine policy. 11. Power of Reserve Bank to give directions. 12. Inspection of credit information company, credit institution and specified user. CHAPTER IV AUDITORS 13. Powers and duties of auditors. CHAPTER V FUNCTIONS OF CREDIT INFORMATION COMPANIES 14. Functions of a credit information company. 15. Credit institution to be member of a credit information company. 16. Failure to become a member of a credit information company. 17. Collection and furnishing of credit information. 18. Settlement of dispute. CHAPTER VI INFORMATION PRIVACY PRINCIPLES AND FURNISHING OF CREDIT INFORMATION 19. Accuracy and security of credit information. 20. Privacy principles. 21. Alteration of credit information files and credit reports. ----- SECTIONS 22. Unauthorised access to credit information. CHAPTER VII OFFENCES AND PENALTIES 23. Offences and penalties. 24. Cognizance of offences. 25. Power of Reserve Bank to impose penalty. 26. Application of fines. CHAPTER VIII MISCELLANEOUS 27. Power of Reserve Bank to specify maximum amount of fees. 28. Disclosure of information before any court or tribunal or authority. 29. Obligations as to fidelity and secrecy. 30. Protection of action taken in good faith. 31. Bar of jurisdiction. 32. Power of Reserve Bank to exempt in certain cases. 33. Application of other laws not barred. 33A. Powers of Reserve Bank not to apply to International Financial Services Centre. 34. Amendment of certain enactments. 35. Removal of difficulties. 36. Power to make rules. 37. Power of Reserve Bank to make regulations THE SCHEDULE. ----- # THE CREDIT INFORMATION COMPANIES (REGULATION) ACT, 2005 ACT NO. 30 OF 2005 [23rd _June, 2005.]_ # An Act to provide for regulation of credit information companies and to facilitate efficient distribution of credit and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Credit Information** Companies (Regulation) Act, 2005. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “board” means the Board of directors of a credit information company; (b) “borrower” means any person who has been granted loan or any other credit facility by a credit institution and includes a client of a credit institution; (c) “client” includes— (i) a guarantor or a person who proposes to give guarantee or security for a borrower of a credit institution; or (ii) a person— (A) who has obtained or seeks to obtain financial assistance from a credit institution, by way of loans, advances, hire purchase, leasing facility, letter of credit, guarantee facility, venture capital assistance or by way of credit cards or in any other form or manner; (B) who has raised or seeks to raise money by issue of security as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), or by issue of commercial paper, depository receipt or any other instrument; (C) whose financial standing has been assessed or is proposed to be assessed by a credit institution or any other person or institution as may, by notification, be directed by the Reserve Bank; (d) “credit information” means any information relating to— (i) the amounts and the nature of loans or advances, amounts outstanding under credit cards and other credit facilities granted or to be granted, by a credit institution to any borrower; (ii) the nature of security taken or proposed to be taken by a credit institution from any borrower for credit facilities granted or proposed to be granted to him; (iii) the guarantee furnished or any other non-fund based facility granted or proposed to be granted by a credit institution for any of its borrowers; (iv) the credit worthiness of any borrower of a credit institution; 1. 14th December, 2006, _vide notification No. S.O. 2098(E), dated 14th December, 2006,_ _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). ----- (v) any other matter which the Reserve Bank may, consider necessary for inclusion in the credit information to be collected and maintained by credit information companies, and, specify, by notification, in this behalf; (e) “credit information company” means a company formed and registered under the Companies Act, 1956 (1 of 1956) and which has been granted a certificate of registration under sub-section (2) of section 5; (f) “credit institution” means a banking company and includes— (i) a corresponding new bank, the State Bank of India, a subsidiary bank, a co-operative bank, the National Bank and regional rural bank; (ii) a non-banking financial company as defined under clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934); (iii) a public financial institution referred to in section 4A of the Companies Act, 1956 (1 of 1956); (iv) the financial corporation established by a State under section 3 of the State Financial Corporation Act, 1951 (63 of 1951); (v) the housing finance institution referred to in clause (d) of section 2 of the National Housing Bank Act, 1987 (53 of 1987); (vi) the companies engaged in the business of credit cards and other similar cards and companies dealing with distribution of credit in any other manner; (vii) any other institution which the Reserve Bank may specify, from time to time, for the purposes of this clause; (g) “credit scoring” means a system which enables a credit institution to assess the credit worthiness and capacity of a borrower to repay his loan and advances and discharge his other obligations in respect of credit facility availed or to be availed by him; (h) “notification” means a notification published in the Official Gazette of India; (i) “prescribed” means prescribed by rules made under this Act; (j) “regulations” means regulations made by the Reserve Bank under this Act; (k) “Reserve Bank” means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); (l) “specified user” means any credit institution, credit information company being a member under sub-section (3) of section 15, and includes such other person or institution as may be specified by regulations made, from time to time, by the Reserve Bank for the purpose of obtaining credit information from a credit information company; (m) words and expressions used herein and not defined in this Act but defined in the Reserve Bank of India Act, 1934 (2 of 1934) or the Banking Regulation Act, 1949 (10 of 1949) or the Companies Act, 1956 (1 of 1956) shall have the meanings respectively assigned to them in those Acts. CHAPTER II REGISTRATION OF CREDIT INFORMATION COMPANIES **3. Prohibition to commence or carry on business of credit information.—Save as otherwise** provided in this Act, no company shall commence or carry on the business of credit information without obtaining a certificate of registration from the Reserve Bank under this Act. **4. Application for registration.—(1) Every company which intends to commence the business of** credit information shall make an application for registration to the Reserve Bank in such form and manner as may be specified by regulations. ----- (2) Every credit information company, in existence on the commencement of this Act, before the expiry of six months from such commencement, shall apply in writing to the Reserve Bank for obtaining a certificate of registration under this Act: Provided that in the case of a credit information company in existence on the commencement of this Act, nothing in section 3 shall be deemed to prohibit such credit information company from carrying on the business of a credit information company, until it is granted a certificate of registration or is by notice in writing informed by the Reserve Bank that a certificate of registration cannot be granted to it. **5. Grant of certificate of registration.—(1) The Reserve Bank may, for the purpose of considering** the application of a company for grant of a certificate of registration to commence or carry on the business of credit information, require to be satisfied, by an inspection of records or books of such company or otherwise that the following conditions are fulfilled, namely:— (a) that the applicant company has minimum capital structure referred to in section 8; (b) that the general character of the management or the proposed management of the applicant company shall not be prejudicial to the interest of its specified users, clients or borrowers, or other credit information companies; (c) that any other condition, the fulfilment of which in the opinion of the Reserve Bank, shall be necessary to ensure that the commencement or carrying on of the business of credit information by the applicant company shall not be detrimental or prejudicial to the public interest or banking policy or credit system or its specified users or clients or borrowers or other credit information companies or others who would provide credit information to the credit information companies. (2) The Reserve Bank may, after being satisfied that the conditions as referred to in sub-section (1) are fulfilled, grant a certificate of registration to the applicant company to commence or carry on the business of credit information, subject to such conditions which it may consider fit to impose and if the company fails to fulfil any of such conditions or any of the provisions of this Act, the application of the company shall be rejected: Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard. (3) The Reserve Bank may, having regard to the available business of credit information, the potential and scope for expansion of existing credit information companies and other relevant factors, determine the total number of the credit information companies which may be granted the certificates of registration for carrying on the business of credit information: Provided that the total number of such credit information companies so determined may, on being satisfied by the Reserve Bank, that there is change in available business of credit information, potential and scope for expansion of existing credit information companies and other relevant factors relating thereto, be reviewed by the Reserve Bank. **6. Power of Reserve Bank to cancel certificate of registration.—(1) The Reserve Bank may cancel** a certificate of registration granted to a credit information company under sub-section (2) of section 5 if such company,— (i) ceases to carry on the business of credit information; or (ii) has failed to comply with any of the conditions subject to which the certificate of registration has been granted to it; or (iii) at any time fails to fulfil any of the conditions referred to in sub-clauses (a) to (c) of sub-section (1) or sub-section (2) of section 5; or (iv) fails— (a) to comply with the provisions of any law for the time being in force or any direction issued by the Reserve Bank under the provisions of this Act; or (b) to submit or offer for inspection its books of account and other relevant documents when so demanded by the officers, persons or agency referred to in sub-section (1) of section 12. ----- (2) Before cancelling the certificate of registration granted to a credit information company under this section on the ground that the company has failed to comply with the conditions specified in clauses (a) to (c) of sub-section (1) or sub-section (2) of section 5 or the provisions of any other law for the time being in force or directions issued under this Act, the Reserve Bank, shall grant time to such company on such terms as the Reserve Bank may deem appropriate for taking necessary steps to comply with such directions or provisions or fulfilment of such conditions, within such time: Provided that if the Reserve Bank is of the opinion that the delay in cancelling the certificate of registration of such company shall be prejudicial or detrimental to the public interest or banking policy or credit system or borrowers or other credit information companies, the Reserve Bank may cancel the certificate of registration without granting time as provided in sub-section (2). (3) No order of cancellation of certificate of registration, granted to a credit information company, shall be made by the Reserve Bank unless such company has been given a reasonable opportunity of being heard. **7. Appeal against order of Reserve Bank.—(1) A credit information company aggrieved by the** order of rejection of an application for grant of certificate of registration under section 5 or cancellation of certificate of registration under section 6, may prefer an appeal to the Central Government or any other authority or tribunal which may be designated by rules made by the Central Government, within a period of thirty days from the date on which such order of rejection or cancellation, as the case may be, is communicated to the credit information company. (2) The decision of the Central Government or the authority or tribunal referred to in sub-section (1) where an appeal has been preferred to it under sub-section (1), or of these Reserve Bank where no such appeal has been preferred, shall be final: Provided that before making any order of rejection of an appeal, the applicant company or the credit information company, as the case may be, shall be given a reasonable opportunity of being heard. **8. Requirement as to minimum capital.—(1) The authorised capital of every credit information** company shall be a minimum of thirty crores: Provided that the Reserve Bank may, by notification, increase the minimum amount of authorised capital to any amount not exceeding fifty crores. (2) The issued capital of every credit information company shall not be less than twenty crores: Provided that the Reserve Bank may, by notification, increase the issued capital to any amount not exceeding the minimum amount of authorised capital as referred to in sub-section (1). (3) The minimum paid up capital of every credit information company at any time shall not be less than seventy-five per cent. of the issued capital. CHAPTER III MANAGEMENT OF CREDIT INFORMATION COMPANIES **9. Management of credit information company.—(1) Notwithstanding anything contained in any** law for the time being in force, or in any contract to the contrary, every credit information company in existence on the commencement of this Act, or which comes into existence thereafter, shall have one of its directors, who may be appointed on whole-time or on a part-time basis as chairperson of its board, and where he is appointed on whole-time basis as chairperson of its board, he shall be entrusted with the management of the whole of the affairs of the credit information company: Provided that the chairperson of the board of the credit information company shall exercise his powers subject to the superintendence, control and directions of the board. (2) Where a chairperson is appointed on a part-time basis, the management of whole of the affairs of the credit information company shall be entrusted to a managing director or, a whole-time director by whatever name called, who shall exercise his powers subject to the superintendence, control and directions of the board. (3) In addition to the chairperson or managing director or whole-time director, by whatever name called, the board of directors shall consist of not less than fifty per cent. directors who shall be persons ----- having special knowledge in, or practical experience of, the matters relating to public administration, law, banking, finance, accountancy, management or information technology. (4) In discharging its functions, the board shall act on business principles and shall have due regard to the interest of its specified users, credit institutions or the clients or borrowers of credit institutions. (5) Where the Reserve Bank is satisfied that it is in the public interest or in the interest of banking policy or credit system of the country, or for preventing the affairs of any credit information company being managed in a manner detrimental to the interest of banking policy or credit institutions or borrowers or clients or for securing the proper management of any credit information company, it is necessary so to do, the Reserve Bank may, for reasons to be recorded in writing, by order published in the Official Gazette, supersede the board of such company, for such period not exceeding six months, as may be specified in the order and which may be extended from time to time, so, however, that the total period shall not exceed twelve months: Provided that before making any such order, the Reserve Bank shall give a reasonable opportunity to the board of such credit information company to make representation against the proposed supersession and shall consider the representation, if any, of the board. (6) The Reserve Bank may, on supersession of the board of a credit information company under sub section (5), appoint an Administrator for such period and on such salary and other terms and conditions as it may determine. (7) The Reserve Bank may issue such directions to the Administrator as it may deem appropriate and the Administrator shall be bound to follow such directions. (8) Upon making of the order under sub-section (5), superseding the board of a credit information company— (a) the chairperson, managing director and other directors of such credit information company shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of the Companies Act, 1956 (1 of 1956) or this Act or any other law for the time being in force, be exercised or discharged, by or on behalf of the board of such credit information company, or by a resolution passed in general meeting of that company, shall, until the reconstitution of its board under sub-section (10), be exercised and discharged by the Administrator appointed by the Reserve Bank under sub-section (6): Provided that the powers exercised by the Administrator shall be valid notwithstanding that such powers are exercisable by a resolution passed in the general meeting of such credit information company. (9) The salary and allowances payable to the Administrator and staff assisting the Administrator shall be borne by the credit information company. (10) On and before the expiration of two months before expiry of the period of supersession mentioned in the order of the Reserve Bank issued under sub-section (5), the Administrator of the credit information company, shall call a general meeting of the credit information company to elect new directors and reconstitute its board and any person who had vacated his office under clause (a) of sub-section (8), shall not be deemed to be disqualified for re-appointment. (11) Notwithstanding anything contained in any law for the time being in force or in any contract or the memorandum or articles of association, of the credit information company, on the removal of a person from office under this section, that person shall not be entitled to claim any compensation for the loss or termination of office. **10. Power of Reserve Bank to determine policy.—Where the Reserve Bank is satisfied that it is** necessary or expedient in the public interest or in the interest of specified users or in the interest of credit information companies or credit institutions or clients or borrowers so to do, it may determine the policy in relation to functioning of credit information companies or credit institutions or specified users generally or in particular and when the policy has been so determined all credit information companies, credit institutions and specified users, as the case may be, shall be bound to follow the policy as so determined. ----- **11. Power of Reserve Bank to give directions.—(1) Where the Reserve Bank is satisfied that,—** (a) in the public interest; or (b) in the interest of credit institutions; or (c) in the interest of specified users; or (d) in the interest of banking policy; or (e) to prevent the affairs of any credit information company being conducted in a manner detrimental to the interests of its specified users or in a manner prejudicial to the interests of credit institutions or borrowers or clients; or (f) to secure the proper management of credit information companies generally, it is necessary to issue directions to credit information companies or credit institutions or specified users generally or to any credit information company or credit institution or specified user in particular, it may, from time to time, issue such directions as it deems fit, and such credit information companies, credit institutions and specified users or credit information company, credit institution, and specified user, as the case may be, shall be bound to comply with such directions. (2) The Reserve Bank may, on representation made to it or on its own motion, modify or cancel any direction issued under sub-section (1), and the Reserve Bank, in so modifying or cancelling any direction, may impose such conditions as it thinks fit, subject to which the modification or cancellation shall have effect. (3) The Reserve Bank may, at any time, if it is satisfied that in the public interest or in the interest of a credit information company or its members, it is necessary so to do, by order in writing and on such terms and conditions as may be specified therein,— (a) require such credit information company to call a meeting of its directors for the purpose of considering any matter relating to or arising out of the affairs of the credit information company; (b) depute one or more of its officers to watch the proceedings at any meeting of the board of the credit information company or of any committee or of any other body constituted by it and require the credit information company to give an opportunity to the officers so deputed to be heard at such meetings and also require such officers to send a report of such proceedings to the Reserve Bank; (c) require the board of the credit information company or of any committee or any other body constituted by it to give in writing to any officer deputed by the Reserve Bank in this behalf at his usual address all notices of, and other communications relating to, any meeting of the board, committee or other body constituted by it; (d) appoint one or more of its officers to observe the manner in which the affairs of the credit information company or of its offices or branches are being conducted and make a report thereon; (e) require the credit information company to make, within such time as may be specified in the order, such changes in the management as the Reserve Bank may consider necessary. (4) The Reserve Bank may, at any time, direct any credit information company to furnish it within such time as may be specified by the Reserve Bank, such statements and information relating to the business or affairs of the credit information company as the Reserve Bank may consider necessary or expedient to obtain for the purpose of this Act. **12. Inspection of credit information company, credit institution and specified** **user.—(1) Notwithstanding anything to the contrary contained in section 235 of the Companies Act,** 1956 (1 of 1956), the Reserve Bank, at any time, may and on being directed so to do by the Central Government shall, cause an inspection to be made, by one or more of its officers or through such other persons or agency as the Reserve Bank may determine, of any credit information company or credit institution or specified user and their books and accounts; and the Reserve Bank shall supply to the credit information company or credit institution or specified user, as the case may be, a copy of its report on such inspection. (2) It shall be the duty of every director or other officer or employee of the credit information company, credit institution and specified user to produce to any officer or person or agency, as the case ----- may be, making an inspection under sub-section (1) all such books, accounts and other documents in his custody or power and to furnish him with any statement and information relating to the affairs of such credit information company, credit institution and specified user, as the said officer or person or agency may require of him within such time as the said officer or person or agency may specify. (3) Any officer of the Reserve Bank or person or an agency making an inspection under sub-section (1) may examine on oath any director or other officer or employee of the credit information company, credit institution and specified user, in relation to their business, and may administer an oath accordingly. (4) The expenses of, or incidental to, the inspection under sub-section (1) by any person or an agency referred to in sub-section (1) shall be borne by the concerned credit information company or credit institution or specified user, as the case may be. CHAPTER IV AUDITORS **13. Powers and duties of auditors.—(1) It shall be the duty of an auditor of a credit information** company to inquire whether or not the credit information company has furnished to the Reserve Bank such statements, information or particulars relating to its business as are required to be furnished under this Act and the auditor shall, except where he is satisfied on such inquiry that the credit information company has furnished such a statement, information or particulars, make a report to the Reserve Bank in this regard. (2) The Reserve Bank may, on being satisfied that it is necessary so to do, in the public interest or in the interest of credit system, issue directions in particular or in general with respect to audit of the credit information company and submission of the report to the Reserve Bank. (3) Where the Reserve Bank is of the opinion that it is necessary so to do in the public interest or in the interest of the credit information company or its members, or in the interest of credit system or credit institution or its borrower or client so to do, it may, at any time, by an order, direct that a special audit of the accounts of the credit information company in relation to any such transaction or class of transactions or for such period or periods, as may be mentioned in the order, shall be conducted and the Reserve Bank may by such order or by a separate order either appoint an auditor or auditors or direct the auditor of the credit information company himself to conduct such special audit and the auditor shall comply with such directions and make a report of such audit to the Reserve Bank and forward a copy thereof to the credit information company. (4) The remuneration of the auditors as may be fixed by the Reserve Bank, having regard to the nature and volume of work involved in the audit and the expenses of, or incidental to, the audit, shall be borne by the credit information company so audited. CHAPTER V FUNCTIONS OF CREDIT INFORMATION COMPANIES **14. Functions of a credit information company.—(1) A credit information company may engage in** any one or more of the following forms of business, namely:— (a) to collect, process and collate information on trade, credit and financial standing of the borrowers of the credit institution which is a member of the credit information company; (b) to provide credit information to its specified users or to the specified users of any other credit information company or to any other credit information company being its member; (c) to provide credit scoring to its specified users or specified users of any other credit information company or to other credit information companies being its members; (d) to undertake research project; (e) to undertake any other form of business which the Reserve Bank may, specify by regulations as a form of business in which it is lawful for a credit information company to engage. (2) No credit information company shall engage in any form of business other than those referred to in sub-section (1). ----- (3) Any credit information company for the purposes of carrying on the business of credit information may— (a) register credit institutions and other credit information companies, at their option as its member, subject to such terms and conditions as may be pre-determined and disclosed by such credit information company; (b) charge such reasonable amount of fees, as it may deem appropriate not exceeding the maximum fee, as may be specified under section 27, for furnishing credit information to a specified user; (c) generally to do all such other acts and perform such other functions as are necessary to facilitate proper conduct of its affairs, business and functions in accordance with the provisions of this Act. **15. Credit Institution to be member of a credit information company.—(1) Every credit** institution in existence on the commencement of this Act, before the expiry of three months from such commencement or within such extended period, as the Reserve Bank may allow on its application and subject to being satisfied about the reason for extension, shall become member of at least one credit information company. (2) Every credit institution which comes into existence after the commencement of this Act, before the expiry of three months from its coming into existence, or within such extended period, as the Reserve Bank may allow on its application and subject to being satisfied about the reason for extension, shall become member of at least one credit information company. (3) A credit information company may, at its option, become member of another credit information company. (4) No credit information company shall refuse to register a credit institution or another credit information company as its member without providing reasonable opportunity of being heard to such credit institution or credit information company, whose application it proposes to reject and recording reasons for such rejection and a copy of such order of rejection shall be forwarded to the Reserve Bank. (5) A credit institution or credit information company aggrieved by the order of rejection of its application for its registration as a member of a credit information company under sub-section (4) may prefer an appeal to the Reserve Bank, within a period of thirty days from the date on which such order of rejection was communicated to it: Provided that the Reserve Bank may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding thirty days. (6) On receipt of an appeal under sub-section (5), the Reserve Bank, after giving the appellant and other concerned parties, an opportunity of being heard, pass such order as it deems fit. (7) The decision of the Reserve Bank where an appeal has been preferred to it under sub-section (5) shall be final and the order of the credit information company under sub-section (4) shall be final after the expiry of the said period of thirty days where no appeal has been preferred under that sub-section to the Reserve Bank. (8) Every specified user shall be entitled to obtain credit information for its use from the credit information company of which such specified user is a member. **16. Failure to become a member of a credit information company.—(1) Where a credit** institution— (a) abstains from becoming a member of at least one credit information company; or (b) at any time is not a member of any credit information company, the Reserve Bank suo moto or on a complaint from a credit information company may, direct such credit institution to take necessary steps within such time, as it may specify to become a member of a credit information company. ----- (2) In case a credit institution fails to comply with the directions of the Reserve Bank under sub-section (1), to become member of at least one credit information company, the Reserve Bank may, without prejudice to the provisions of this Act, intimate such failure to any other authority for taking such action as it may deem fit. **17. Collection and furnishing of credit information.—(1) A credit information company or any** person authorised in that behalf by the company may, by notice in writing, in such form, as may be specified by regulations made by the Reserve Bank or as near thereto, require its members being credit institution or credit information company, to furnish such credit information as it may deem necessary in accordance with the provisions of this Act. (2) Every credit institution which is member of the credit information company and every credit information company which is a member of other credit information company shall, on receipt of notice under sub-section (1), provide credit information to the credit information company of which it is a member, within such period as may be specified in the notice. (3) Every credit information company shall provide for such purpose, as may be specified by regulations, the credit information received under sub-section (2), to its specified user on receipt of request from him in accordance with the provisions of this Act and directions issued thereunder by the Reserve Bank from time to time in this behalf. (4) No credit information received under this Act,— (a) by the credit information company, shall be disclosed to any person other than its specified user; or (b) by the specified user, shall be disclosed to any other person; (c) by the credit information company or specified user, shall be disclosed for any other purpose than as permitted or required by any other law for the time being in force. **18. Settlement of dispute.—(1) Notwithstanding anything contained in any law for the time being in** force, if any dispute arises amongst, credit information companies, credit institutions, borrowers and clients on matters relating to business of credit information and for which no remedy has been provided under this Act, such disputes shall be settled by conciliation or arbitration as provided in the Arbitration and Conciliation Act, 1996 (26 of 1996), as if the parties to the dispute have consented in writing for determination of such dispute by conciliation or arbitration and provisions of that Act shall apply accordingly. (2) Where a dispute has been referred to arbitration under sub-section (1), the same shall be settled or decided,— (a) by the arbitrator to be appointed by the Reserve Bank; (b) within three months of making a reference by the parties to the dispute: Provided that the arbitrator may, after recording the reasons therefor, extend the said period up to a maximum period of six months: Provided further that, in an appropriate case or cases, the Reserve Bank may, if it considers necessary to do so (reasons to be recorded in writing), direct the parties to the dispute to appoint an arbitrator in accordance with the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996), for settlement of their dispute in accordance with the provisions of that Act. (3) Save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to all arbitration under this Act as if the proceedings for arbitration were referred for settlement or decision under the provisions of the Arbitration and Conciliation Act, 1996. CHAPTER VI INFORMATION PRIVACY PRINCIPLES AND FURNISHING OF CREDIT INFORMATION **19. Accuracy and security of credit information.—A credit information company or credit** institution or specified user, as the case may be, in possession or control of credit information, shall take such steps (including security safeguards) as may be prescribed, to ensure that the data relating to the ----- credit information maintained by them is accurate, complete, duly protected against any loss or unauthorised access or use or unauthorised disclosure thereof. **20. Privacy principles.—Every credit information company, credit institution and specified user,** shall adopt the following privacy principles in relation to collection, processing, collating, recording, preservation, secrecy, sharing and usage of credit information, namely:— (a) the principles— (i) which may be followed by every credit institution for collection of information from its borrowers and clients and by every credit information company, for collection of information from its member credit institutions or credit information companies, for processing, recording, protecting the data relating to credit information furnished by, or obtained from, their member credit institutions or credit information companies, as the case may be, and sharing of such data with specified users; (ii) which may be adopted by every specified user for processing, recording, preserving and protecting the data relating to credit information furnished, or received, as the case may be, by it; (iii) which may be adopted by every credit information company for allowing access to records containing credit information of borrowers and clients and alteration of such records in case of need to do so; (b) the purpose for which the credit information may be used, restriction on such use and disclosure thereof; (c) the extent of obligation to check accuracy of credit information before furnishing of such information to credit information companies or credit institutions or specified users, as the case may be; (d) preservation of credit information maintained by every credit information company, credit institution, and specified user as the case may be (including the period for which such information may be maintained, manner of deletion of such information and maintenance of records of credit information); (e) networking of credit information companies, credit institutions and specified users through electronic mode; (f) any other principles and procedures relating to credit information which the Reserve Bank may consider necessary and appropriate and may be specified by regulations. **21. Alteration of credit information files and credit reports.—(1) Any person, who applies for** grant or sanction of credit facility, from any credit institution, may request to such institution to furnish him a copy of the credit information obtained by such institution from the credit information company. (2) Every credit institution shall, on receipt of request under sub-section (1), furnish to the person referred to in that sub-section a copy of the credit information subject to payment of such charges, as may be specified by regulations, by the Reserve Bank in this regard. (3) If a credit information company or specified user or credit institution in possession or control of the credit information, has not updated the information maintained by it, a borrower or client may request all or any of them to update the information; whether by making an appropriate correction, or addition or otherwise, and on such request the credit information company or the specified user or the credit institution, as the case may be, shall take appropriate steps to update the credit information within thirty days after being requested to do so: Provided that the credit information company and the specified user shall make the correction, deletion or addition in the credit information only after such correction, deletion or addition has been certified as correct by the concerned credit institution: Provided further that no such correction, deletion or addition shall be made in the credit information if any dispute relating to such correction, deletion or addition is pending before any arbitrator or tribunal or court and in cases where such dispute is pending, the entries in the books of the concerned credit institution shall be taken into account for the purpose of credit information. ----- **22. Unauthorised access to credit information.—(1) No person shall have access to credit** information in the possession or control of a credit information company or a credit institution or a specified user unless the access is authorised by this Act or any other law for the time being in force or directed to do so by any court or tribunal and any such access to credit information without such authorisation or direction shall be considered as an unauthorised access to credit information. (2) Any person who obtains unauthorised access to credit information as referred to in sub-section (1) shall be punishable with fine which may extend to one lakh rupees in respect of each offence and if he continues to have such unauthorised access, with further fine which may extend to ten thousand rupees for every day on which the default continues and such unauthorised credit information shall not be taken into account for any purpose. CHAPTER VII OFFENCES AND PENALTIES **23. Offences and penalties.—(1) Whoever, in any return or other document or in any information** required or furnished by, or under, or for the purposes of, any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statement, shall be punishable with imprisonment for a term which may extend to one year and shall also be liable to fine. (2) Every credit information company or a credit institution or any specified user, wilfully, performing any act or engaging in any practice, in breach of any of the principles referred to in section 20, shall be punishable with fine not exceeding one crore rupees. (3) Any credit information company or credit institution or specified user wilfully providing to any other credit information company or credit institution or specified user or borrower or client, as the case may be, credit information which is false in any material particular, knowing it to be false, or wilfully omits to make a material statement, shall be punishable with fine which may extend to one crore rupees. (4) Any person who contravenes any provision of this Act or of any rule or order made thereunder, or obstructs the lawful exercise of any power conferred by or under this Act, or makes default in complying with any requirement of this Act or of any rule or order made or direction issued thereunder, shall, if no specific provision is made under this Act for punishment of such contravention, obstruction or default, be punishable with fine which may extend to one lakh rupees and where a contravention or default is a continuing one, with a further fine which may extend to five thousand rupees for every day during which the contravention or default continues. (5) Where a contravention or default has been committed by a credit information company or credit institution or specified user, as the case may be, every person who, at the time the contravention or default was committed, was in charge of, and was responsible to the credit information company or credit institution or specified user for the conduct of its business, shall be deemed to be guilty of the contravention or default and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the contravention or default was committed without his knowledge or that he exercised all due diligence to prevent the contravention or default. (6) Notwithstanding anything contained in sub-section (5), where a contravention or default has been committed by a credit information company or credit institution or specified user, as the case may be, and it is proved that the same was committed with the consent or connivance of, or is attributable to any gross negligence on the part of its chairperson, managing director, any other director, manager, secretary or other officer of the credit information company or the credit institution, such chairperson, managing director, any other director, manager, secretary or other officer shall also be deemed to be guilty of that contravention or default and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individual, and (b) “director”, in relation to a firm, means a partner in the firm. ----- **24. Cognizance of offences.—(1) No court shall take cognizance of any offence committed by a** member of a credit information company and punishable under section 23 except upon a complaint in writing made by an officer of the credit information company generally or specially authorised in writing in this behalf by the credit information company or if so directed by the Reserve Bank so to do and no court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or any court superior thereto shall try any such offence. _Explanation.—For the purposes of this sub-section, “member of a credit information company” shall_ mean a member referred to in section 15. (2) No court shall take cognizance of any offence committed by a credit information company punishable under section 23 except upon a complaint in writing made by an officer of the Reserve Bank generally or specially authorised in writing in this behalf by the Reserve Bank and no court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or any court superior thereto shall try any such offence. **25. Power of Reserve Bank to impose penalty.—(1) Notwithstanding anything contained in section** 23, if a contravention or default of the nature referred to in sub-section (2) of section 22 or sub-section (2) or sub-section (3) or sub-section (4) of section 23, as the case may be, is made by a credit information company or a credit institution then, the Reserve Bank may impose on such credit information company or credit institution— (i) where the contravention is of the nature referred to in sub-section (2) of section 22, a penalty not exceeding one lakh rupees; (ii) where the contravention is of the nature referred to in sub-section (2) or sub-section (3) of section 23, a penalty not exceeding one crore rupees; (iii) where the contravention is of the nature referred to in sub-section (4) of section 23, a penalty not exceeding one lakh rupees and where such contravention or default is continuing one, a further penalty which may extend to five thousand rupees for every day, after the first, during which the contravention or default continues. (2) For the purpose of adjudging the penalty under sub-section (1), the Reserve Bank shall serve notice on credit information company or credit institution or specified user, as the case may be, requiring it to show cause as to why the amount mentioned in the notice should not be imposed as penalty and a reasonable opportunity of being heard shall also be given to such credit information company or credit institution or specified user, as the case may be. (3) No complaint shall be filed against credit information company or credit institution or specified user, as the case may be, in any court of law in respect of any contravention or default in respect of which any penalty has been imposed by the Reserve Bank under this section. (4) Any penalty imposed by the Reserve Bank under this Act shall be payable within a period of fourteen days from the date on which notice issued by the Reserve Bank demanding payment of the sum is served on the credit information company or credit institution or specified user, as the case may be, and in the event of failure of such credit information company or credit institution or specified user to pay the sum within such period, may be levied on a direction made by the principal civil court having jurisdiction in the area where the registered office of the credit information company or credit institution or specified user, being a company, is situated and in case of credit institution incorporated outside India, where its principal place of business in India is situated: Provided that such direction under this sub-section shall be made only upon an application made in this behalf to the court by the Reserve Bank. (5) The court which makes a direction under sub-section (4) shall issue a certificate mentioning therein the sum payable by a credit information company or credit institution or specified user, as the case may be, and every such certificate shall be enforceable in the same manner as if it were a decree made by the court in a civil suit. (6) Where any complaint has been filed against credit information company or credit institution or specified user, as the case may be, in any court in respect of the contravention or default of the nature referred to in sub-section (2) of section 22 or sub-section (2) or sub-section (3) or sub-section (4) of ----- section 23, then, no proceedings for the imposition of any penalty on the credit information company or credit institution or specified user shall be taken under this section. **26. Application of fines.—A court imposing any fine under this Act may direct that the whole or any** part thereof shall be applied in or towards payment of the costs of the proceedings, or for such purposes as may be directed by the court. CHAPTER VIII MISCELLANEOUS **27. Power of Reserve Bank to specify maximum amount of fees.—The Reserve Bank may,** specify, by regulations the maximum amount of fees leviable under sub-section (3) of section 14 for providing information to the specified users and for admissions of credit institutions or credit information companies as a member of a credit information company. **28. Disclosure of information before any court or tribunal or authority.—No chairperson,** director, member, auditor, adviser, officer or other employee or agent employed in the business of a credit information company or in the business of a specified user shall, except for the purposes of this Act or when required to do so by any other law in force or court or tribunal or authority, disclose any information to any person. **29. Obligations as to fidelity and secrecy.—(1) Every credit information company shall observe,** except as otherwise required by law, the practices and usages customary among credit information companies and it shall not divulge any information relating to, or to the affairs of, its members or specified users. (2) Every chairperson, director, member, auditor, adviser, officer or other employee of a credit information company shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form, as may be prescribed in this regard. _Explanation.—For the purposes of this section and section 30, the terms “practices and usages_ customary” means such practices and usages which, are generally followed by credit information companies or may develop in due course in relation to their functions, in pursuance of the provisions of this Act, rules and regulations made and directions issued thereunder from time to time in pursuance thereof. **30. Protection of action taken in good faith.—(1) No suit or other legal proceedings or prosecution** shall lie against the Reserve Bank or the Central Government or credit information company or credit institution, or their chairperson, director, member, auditor, adviser, officer or other employee, or agent or any person authorised by the Reserve Bank or the Central Government or credit information company or credit institution to discharge any function under this Act, for any loss or damage caused or as is likely to be caused by anything which is in good faith done or intended to be done, in pursuance of this Act or any other law for the time being in force. (2) Nothing contained in sub-section (1) shall affect the right of any person to claim damages against a credit information company, a credit institution or their chairperson, director, member, auditor, adviser, officer or other employee or agents, as the case may be, in respect of loss caused to him on account of any such disclosure made by anyone of them and which is unauthorised or fraudulent or contrary to provisions of this Act, or practices or usages customary among them. **31. Bar of jurisdiction.—No court or authority shall have, or be entitled to exercise, any jurisdiction,** powers or authority, except the Supreme Court and a High Court exercising jurisdiction under articles 32, 226 and 227 of the Constitution, in relation to the matters referred to in sections 4, 5, 6, 7 and 18. **32. Power of Reserve Bank to exempt in certain cases.—(1) The Central Government may, on the** recommendation of the Reserve Bank, by notification in the Official Gazette, direct that any or all of the provisions of this Act shall not apply to any credit information company or a credit institution, as the case may be, either generally or for such period and subject to such exceptions or modifications, as may be mentioned in that notification. (2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be ----- comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. **33. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not, save as provided under this Act, in derogation of, the provisions of the Companies Act, 1956 (1 of 1956) or any other law for the time being in force. **1[33A. Powers of Reserve Bank not to apply to International Financial Services Centre.—** Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Reserve Bank under this Act, — (a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 of 2005); (b) shall be exercisable by the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, in so far as regulation of financial products, financial services and financial institutions that are permitted in the International Financial Services Centres are concerned.] **34. Amendment of certain enactments.—The enactments mentioned in the Schedule to this Act** shall be amended in the manner specified therein. **35. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act,** the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **36. Power to make rules.—(1) The Central Government may, after consultation with the Reserve** Bank, by notification in the Official Gazette, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (a) the authority or tribunal which may be designated under sub-section (1) of section 7; (b) the steps to be taken by every credit information company or credit institution and specified user for ensuring accuracy, completeness of data and protection of data from any loss or unauthorised access or use or disclosure under section 19; (c) the form in which a declaration of fidelity and secrecy shall be made under sub-section (2) of section 29; (d) any other matter which is required to be, or may be, prescribed. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 1. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). ----- **37. Power of Reserve Bank to make regulations.—(1) The Reserve Bank may make regulations** consistent with the provisions of this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such regulations may provide for all or any of the following matters, namely:— (a) the persons or institutions which may be specified as specified users under clause (l) of section 2; (b) the form in which application may be made under sub-section (1) of section 4 and the manner of filing such application under that sub-section; (c) any other form of business in which a credit information company may engage under clause (e) of sub-section (1) of section 14; (d) the form of notice for collection and furnishing of information procedure relating thereto and purposes for which credit information may be provided under sub-sections (1) and (2) of section 17; (e) the principles and procedures relating to credit information which may be specified under clause (f) of section 20; (f) the amount which may be required to be paid for obtaining copy of credit information under sub-section (2) of section 21; (g) the maximum amount of charges payable under section 27. (3) Every regulation, as soon as may be after it is made by the Reserve Bank, shall be forwarded to the Central Government and that Government shall cause a copy of the same to be laid before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation, or both Houses agree that the regulation should not be made, the regulation shall, thereafter, have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation. ----- THE SCHEDULE (See section 34) AMENDMENTS TO CERTAIN ENACTMENTS PART I THE RESERVE BANK OF INDIA ACT, 1934 (2 OF 1934) Section 45E, sub-section (2), after clause (c), insert— “(d) the disclosures of any credit information under the Credit Information Companies (Regulation) Act, 2005.”. PART II THE BANKING REGULATION ACT, 1949 (10 OF 1949) 1. Section 19, after sub-section (3), insert— “(4) Save as provided in clause (c) of sub-section (1), a banking company may form a subsidiary company to carry on the business of credit information in accordance with the Credit Information Companies (Regulation) Act, 2005.”. 2. Section 28, for “publish any information obtained by them under this Act in such consolidated form as they think fit”, substitute— “publish— (a) any information obtained by them under this Act in such consolidated form as they think fit; (b) in such manner as they may consider proper, any credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART III THE STATE FINANCIAL CORPORATION ACT, 1951 (63 OF 1951) Section 40, after sub-section (3), insert— “(4) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART IV THE STATE BANK OF INDIA ACT, 1955 (23 OF 1955) Section 44, after sub-section (2), insert— “(3) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. ----- PART V THE STATE BANK OF INDIA (SUBSIDIARY BANKS) ACT, 1959 (38 OF 1959) Section 52, after sub-section (2), insert— “(3) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART VI THE DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION ACT, 1961 (47 OF 1961) Section 39, after sub-section (2), insert— “(3) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART VII THE STATE AGRICULTURAL CREDIT CORPORATIONS ACT, 1968 (60 OF 1968) Section 40, insert— “Provided that nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART VIII THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970 (5 OF 1970) Section 13, after sub-section (3), insert— “(4) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART IX THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980 (40 OF 1980) Section 13, after sub-section (3), insert— “(4) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART X THE EXPORT-IMPORT BANK OF INDIA ACT, 1981 (28 OF 1981) Section 30, after sub-section (3), insert— “(4) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. ----- PART XI THE NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT ACT, 1981 (61 OF 1981) Section 51, after sub-section (2), insert— “(3) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART XII THE PUBLIC FINANCIAL INSTITUTIONS (OBLIGATION AS TO FIDELITY AND SECRECY) ACT, 1983 (48 OF 1983) Section 3, after sub-section (2), insert— “(3) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART XIII THE NATIONAL HOUSING BANK ACT, 1987 (53 OF 1987) Section 44, after sub-section (2), insert— “(3) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. PART XIV THE REGIONAL RURAL BANKS ACT, 1976 (21 OF 1976) Section 25, after sub-section (2), insert— “(3) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.”. ————— -----
23-Jun-2005
29
The Private Security Agencies (Regulation) Act, 2005
https://www.indiacode.nic.in/bitstream/123456789/2024/1/200529.pdf
central
# THE PRIVATE SECURITY AGENCIES (REGULATION) ACT, 2005 ___________ # ARRANGEMENT OF SECTIONS ___________ SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Appointment of Controlling Authority. 4. Persons or Private Security Agency not to engage or provide private security guard without licence. 5. Eligibility for licence. 6. Persons not eligible for licence. 7. Application for grant of licence. 8. Renewal of licence. 9. Conditions for commencement of operation and engagement of supervisors. 10. Eligibility to be a private security guard. 11. Conditions of licence. 12. Licence to be exhibited. 13. Cancellation and suspension of licence. 14. Appeals. 15. Register to be maintained by a private security agency. 16. Inspection of licence, etc. 17. Issue of photo identity card. 18. Disclosure of information to unauthorised person. 19. Delegation. 20. Punishment for contravention of certain provisions. 21. Penalty for unauthorised use of certain uniforms. 22. Offences by companies. 23. Indemnity. 24. Framing of model rules for adoption by States. 25. Power of State Government to make rules. THE SCHEDULE. ----- # THE PRIVATE SECURITY AGENCIES (REGULATION) ACT, 2005 ACT NO. 29 OF 2005 [23rd June, 2005.] # An Act to provide for the regulation of private security agencies and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the Private Security** Agencies (Regulation) Act, 2005. (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “armoured car service” means the service provided by deployment of armed guards along with armoured car and such other related services which may be notified by the Central Government or as the case may be, the State Government from time to time; (b) “Controlling Authority” means the Controlling Authority appointed under sub-section (1) of section 3; (c) “licence” means a licence granted under sub-section (5) of section 7; (d) “notification” means a notification published in the Official Gazette; (e) “prescribed” means prescribed by rules made under this Act; (f) “private security” means security provided by a person, other than a public servant, to protect or guard any person or property or both and includes provision of armoured car service; (g) “private security agency” means a person or body of persons other than a government agency, department or organisation engaged in the business of providing private security services including training to private security guards or their supervisor or providing private security guards to any industrial or business undertaking or a company or any other person or property; (h) “private security guard” means a person providing private security with or without arms to another person or property or both and includes a supervisor; (i) “State Government”, in relation to a Union territory, includes the Administrator of that Union territory appointed by the President under article 239 of the Constitution. **3. Appointment of Controlling Authority.—(1) The State Government shall, by notification,** designate an officer not below the rank of a Joint Secretary in the Home Department of the State or an equivalent officer to be the Controlling Authority for the purposes of this Act. (2) The State Government may, for efficient discharge of functions by the Controlling Authority, provide it with such other officers and staff as that Government considers necessary. **4. Persons or Private Security Agency not to engage or provide private security guard without** **licence.—No person shall carry on or commence the business of private security agency, unless he holds** a licence issued under this Act: Provided that the person carrying on the business of private security agency, immediately before the commencement of this Act, may continue to do so for a period of one year from the date of such commencement and if he has made an application for such licence within the said period of one year, till the disposal of such application: 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 2. 14th March, 2006, _vide_ notification No. S.O. 317(E), dated 15th March, 2006, _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). ----- Provided further that no private security agency shall provide private security abroad without obtaining permission of the Controlling Authority, which shall consult the Central Government before according such permission. **5. Eligibility for licence.—An application for issue of a licence under this Act shall only be** considered from a person after due verification of his antecedents. **6. Persons not eligible for licence.—(1) A person shall not be considered for issue of a licence under** this Act, if he has been— (a) convicted of an offence in connection with promotion, formation or management of a company (any fraud or misfeasance committed by him in relation to the company), including an undischarged insolvent; or (b) convicted by a competent court for an offence, the prescribed punishment for which is imprisonment of not less than two years; or (c) keeping links with any organisation or association which is banned under any law on account of their activities which pose threat to national security or public order or there is information about such a person indulging in activities which are prejudicial to national security or public order; or (d) dismissed or removed from Government service on grounds of misconduct or moral turpitude. (2) A company, firm or an association of persons shall not be considered for issue of a licence under this Act, if, it is not registered in India, or having a proprietor or a majority shareholder, partner or director, who is not a citizen of India. **7. Application for grant of licence.—(1) An application for grant of licence to a private security** agency shall be made to the Controlling Authority in such form as may be prescribed. (2) The applicant shall submit an affidavit incorporating the details in relation to the provisions contained in section 6, ensure the availability of the training for its private security guards and supervisors required under sub-section (2) of section 9, fulfilment of conditions under section 11 and of cases registered with police or pending in a court of law involving the applicant. (3) Every application under sub-section (1) shall be accompanied by a fee of— (a) rupees five thousand if the private security agency is operating in one district of a State; (b) rupees ten thousand if the agency is operating in more than one but up to five districts of a State; and (c) rupees twenty-five thousand if it is operating in the whole State. (4) On receipt of an application under sub-section (1), the Controlling Authority may, after making such inquiries as it considers necessary and obtaining no objection certificate from the concerned police authority, by order in writing, either grant a licence or refuse to grant the same within a period of sixty days from the date of receipt of application with complete particulars and the prescribed fee: Provided that no order of refusal shall be made unless— (a) the applicant has been given a reasonable opportunity of being heard; and (b) the grounds on which licence is refused is mentioned in the order. (5) A licence granted under this section— (a) shall be valid for a period of five years unless the same is cancelled under sub-section (1) of section 13; (b) may be renewed from time to time after the expiry of five years, for a further period of five years on payment of such fee as may be prescribed; and (c) shall be subject to such conditions as may be prescribed. **8. Renewal of licence.—(1) An application for renewal of licence shall be made to the Controlling** Authority, not less than forty-five days before the date of expiry of the period of validity thereof, in such ----- form as may be prescribed and shall be accompanied by the requisite fee and other documents required under sections 6, 7 and 11 of this Act. (2) The Controlling Authority shall pass an order on application for renewal of licence within thirty days from the date of receipt of application complete in all respects. (3) On receipt of an application under sub-section (1), the Controlling Authority may, after making such inquiries as he considers necessary and by order in writing, renew the licence or refuse to renew the same: Provided that no order of refusal shall be made except after giving the applicant a reasonable opportunity of being heard. **9. Conditions for commencement of operation and engagement of supervisors.—(1) Every** private security agency shall, within six months of obtaining the licence, commence its activities. (2) Every private security agency shall ensure imparting of such training and skills to its private security guards and supervisors as may be prescribed: Provided that the person carrying on the business of private security agency, before the commencement of this Act, shall ensure the required training to its security guards and supervisors within a period of one year from the date of such commencement. (3) Every private security agency shall, within sixty days from the date of issue of the licence, employ such number of supervisors, as may be prescribed. (4) A private security agency shall not employ or engage a person as a supervisor unless he fulfils the conditions specified in sub-section (1) of section 10. (5) While engaging a supervisor of private security guards, every private security agency shall give preference to a person who has experience of serving in the Army, Navy, Air Force or any other Armed forces of the Union or State Police including armed constabularies and Home Guards for a period of not less than three years. **10. Eligibility to be a private security guard.—(1) A private security agency shall not employ or** engage any person as a private security guard unless he— (a) is a citizen of India or a citizen of such other country as the Central Government may, by notification in the Official Gazette, specify; (b) has completed eighteen years of age but has not attained the age of sixty-five years; (c) satisfies the agency about his character and antecedents in such manner as may be prescribed; (d) has completed the prescribed security training successfully; (e) fulfils such physical standards as may be prescribed; and (f) satisfies such other conditions as may be prescribed. (2) No person who has been convicted by a competent court or who has been dismissed or removed on grounds of misconduct or moral turpitude while serving in any of the armed forces of the Union, State Police Organisations, Central or State Governments or in any private security agency shall be employed or engaged as a private security guard or a supervisor. (3) Every private security agency may, while employing a person as a private security guard, give preference to a person who has served as a member in one or more of the following, namely:— (i) Army; (ii) Navy; (iii) Air Force; (iv) any other armed forces of the Union; (v) Police, including armed constabularies of States; and (vi) Home Guards. ----- **11. Conditions of licence.—(1) The State Government may frame rules to prescribe the conditions** on which licence shall be granted under this Act and such conditions shall include requirements as to the training which the licensee is to undergo, details of the person or persons forming the agency, obligation as to the information to be provided from time to time to the Controlling Authority regarding any change in their address, change of management and also about any criminal charge made against them in the course of their performance of duties of the private security agency or as the case may be, a private security guard employed or engaged by them. (2) The State Government may make provision in the rules to verify about imparting of required training by the private security agency under sub-section (2) of section 9 and to review continuation or otherwise of licence of such private security agency which may not have adhered to the condition of ensuring the required training. **12. Licence to be exhibited.—Every private security agency shall exhibit its licence or copy thereof** in a conspicuous place of its business. **13. Cancellation and suspension of licence.—(1) The Controlling Authority may cancel any licence** on any one or more of the following grounds, namely:— (a) that the licence has been obtained on misrepresentation or suppression of material facts; (b) that the licence holder has used false documents or photographs; (c) that the licence holder has violated the provisions of this Act or the rules made thereunder or any of the conditions of the licence; (d) that the licence holder has misused information obtained by him during the discharge of his duties as the private security agency to any industrial or business undertaking or a company or any other person; (e) that the licence holder by using any letter-head, advertisement or any other printed matter or in any other manner represented that the private security agency is an instrumentality of the Government or such agency is or has been using a name different from that for which licence has been granted; (f) that the licence holder is or has been impersonating or permitting or aiding or abetting any body to impersonate as a public servant; (g) that the private security agency had failed to commence its activities or to engage a supervisor within the specified time period; (h) that the licence holder is or has wilfully failed or refused to render the services agreed to any person; (i) that the licence holder has done any act which is in violation of a court order or an order of a lawful authority or is or has been advising, encouraging or assisting any person to violate any such order; (j) that the licence holder has violated the provisions of the Acts given in the Schedule which may be modified by the Central Government, by notification in the Official Gazette; (k) that there have been repeated instances when the private security guard or guards provided by the private security agency— (i) failed to provide private security or were guilty of gross negligence in not providing such security; (ii) committed a breach of trust or misappropriated the property or a part thereof which they were supposed to protect; (iii) were found habitually drunk or indisciplined; (iv) were found to be involved in committing crimes; or (v) had connived or abetted a crime against the person or property placed under their charge; or ----- (l) that the licence holder has done any act which poses a threat to national security, or did not provide assistance to the police or other authority in the discharge of its duties or acted in a manner prejudicial to national security or public order or law and order. (2) Where the Controlling Authority, for reasons to be recorded in writing, is satisfied that pending the question of cancelling of licence on any of the grounds mentioned in sub-section (1), it is necessary to do so, that Controlling Authority may, by order in writing, suspend the operation of the licence for such period not exceeding thirty days as may be specified in the order and require the licence holder to show cause, within fifteen days from the date of issue of such order, as to why the suspension of the licence should not be extended till the determination of the question of cancellation. (3) Every order of suspending or cancelling of a licence shall be in writing and shall specify the reasons for such suspension or cancellation and a copy thereof shall be communicated to the person affected. (4) No order of cancellation of licence under sub-section (1) shall be made unless the person concerned has been given a reasonable opportunity of being heard. **14. Appeals.—(1) Any person aggrieved by an order of the Controlling Authority refusing the licence** under sub-section (4) of section 7 or renewal under sub-section (3) of section 8 or order of suspension of licence under sub-section (2) of section 13 or cancellation of licence under sub-section (1) of that section, may prefer an appeal against that order to the Home Secretary of the State Government within a period of sixty days of the date of such order: Provided that an appeal may be admitted after the expiry of the said period of sixty days if the appellant satisfies the State Government that he has sufficient cause for not preferring the appeal within that period. (2) Every appeal under sub-section (1) shall be made in such form as may be prescribed and shall be accompanied by a copy of the order appealed against. (3) Before disposing of an appeal, the State Government shall give the appellant a reasonable opportunity of being heard. **15. Register to be maintained by a private security agency.—(1) Every private security agency** shall maintain a register containing— (a) the names and addresses of the persons managing the private security agency; (b) the names, addresses, photographs and salaries of the private security guards and supervisors under its control; (c) the names and addresses of the persons whom it had provided private security guards or services; and (d) such other particulars as may be prescribed. (2) The Controlling Authority may call for such information as it considers necessary from any private security agency, supervisor or private security guard to ensure due compliance of the Act. **16. Inspection of licence, etc.—The Controlling Authority or any other officer authorised by it in this** behalf may at any reasonable time, enter the premises of the private security agency and inspect and examine the place of business, the records, accounts and other documents connected with the licence and may take copy of any document. **17. Issue of photo identity card.—(1) Every private security guard shall be issued a photo identity** card, by the private security agency employing or engaging the guard. (2) The photo identity card under sub-section (1) shall be issued in such form as may be prescribed. (3) Every private security guard or supervisor shall carry on his person the photo identity card issued under sub-section (1) and shall produce it on demand for inspection by the Controlling Authority or any other officer authorised by it in this behalf. **18. Disclosure of information to unauthorised person.—(1) Any person who may be or has been** employed or engaged as a private security guard by the private security agency shall not divulge to ----- anyone other than the employer, or in such manner and to such person as the employer directs, any information acquired by him during such employment with respect to the work which he has been assigned by such employer, except such disclosure as may be required under this Act or in connection with any inquiry or investigation by the police or as may be required by an authority or process of law. (2) All private security guards of a private security agency shall render necessary assistance to the police or to such authority in the process of any investigation pertaining to the activities of that agency. (3) If violation of any law is noticed by any private security guard during the course of discharge of his duties, he shall bring it to the notice of his superior, who in turn shall inform the police either through his employer or agency or on his own. **19. Delegation.—The State Government may, by notification, direct that any power or function** (except the powers to make rules under section 25)— (a) which may be exercised or performed by it, or (b) which may be exercised or performed by the Controlling Authority, under this Act, may, in relation to such matter and subject to such conditions, if any, as may be specified in the notification, be also exercised or performed by such officer or authority subordinate to the Government or officer subordinate to the Controlling Authority, as may be specified in such notification. **20. Punishment for contravention of certain provisions.—(1) Any person who contravenes the** provisions of section 4 shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to twenty-five thousand rupees, or with both. (2) Any person or private security agency who contravenes, the provisions of sections 9, 10 and 12 of the Act, shall be punishable with a fine which may extend to twenty-five thousand rupees, in addition to suspension or cancellation of the licence. **21. Penalty for unauthorised use of certain uniforms.—If any private security guard or supervisor** wears the uniform of the Army, Air force, Navy or any other armed forces of the Union or Police or any dress having the appearance or bearing any of the distinctive marks of that uniform, he and the proprietor of the private security agency shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to five thousand rupees, or with both. **22. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **23. Indemnity.—No suit, prosecution or other legal proceeding shall lie against the Controlling** authority or any other officer authorised by it in respect of anything in good faith done or intended to be done under this Act. **24. Framing of model rules for adoption by States.—The Central Government may frame model** rules in respect of all or any of the matters with respect to which the State Government may make rules ----- under this Act, and where any such model rules have been framed the State Government shall, while making any rules in respect of that matter under section 25, so far as is practicable, conform to such model rules. **25. Power of State Government to make rules.—(1) The State Government may, by notification,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the procedure for verification of character and antecedents under clause (c) of sub-section (1) of section 10; the type of training under clause (d) of sub-section (1) of section 10; the physical standard under clause (e) of sub-section (1) of section 10; and other conditions under clause (f) of sub-section (1) of section 10; (b) the number of supervisors to be employed under sub-section (3) of section 9; (c) the form of an application for grant of licence under sub-section (1) of section 7; (d) the form in which the licence to be granted under sub-section (4) of section 7 and conditions subject to which such licence to be granted under section 11; (e) the form of an application for renewal of licence under sub-section (1) of section 8; (f) the form under sub-section (2) of section 14 for preferring an appeal; (g) particulars to be maintained in a register under sub-section (1) of section 15; (h) the form in which photo identity card under sub-section (2) of section 17 be issued; (i) any other matter which is required to be, or may be, prescribed. (3) Every rule made by the State Government under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. (4) In respect of Union territories, every rule made to carry out the provisions of the Act shall be laid before each House of Parliament and where there exists a Legislative Assembly, before that Assembly. ----- THE SCHEDULE [See section 13(1) (j)] (1) The Payment of Wages Act, 1936 (4 of 1936). (2) The Industrial Disputes Act, 1947 (14 of 1947). (3) The Minimum Wages Act, 1948 (11 of 1948). (4) The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952). (5) The Payment of Bonus Act, 1965 (21 of 1965). (6) The Contract Labour (Regulation and Abolition) Act, 1970 (37 of 1970). (7) The Payment of Gratuity Act, 1972 (39 of 1972). (8) The Equal Remuneration Act, 1976 (25 of 1976). (9) The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 (30 of 1979). -----